NAVAJO NATION OIL AND GAS COMPANY — Notice of Probable Violation

case documentOfficial PDF420175009_NOPV PCO_04062017.pdf#

case documentOfficial PDF420175009_NOPV PCO_04062017_text.pdf#

party submissionOfficial PDF420175009_Operator Response to Notice_05092017.pdf#

420175009_Final Order_08292019_text.pdf, page 1Official PDFAugust 29, 2019 Mr. Louis Denetsosie Chief Executive Officer and President Navajo Nation Oil and Gas Company 50 Narbono Circle West St. Michaels, Arizona 86511 Re: CPF No. 4-2017-5009 Dear Mr. Denetsosie: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation and finds that Navajo Nation Oil and Gas Company has completed the actions specified in the Notice to comply with the pipeline safety regulations. Therefore, this case is now closed. Service of the Final Order by certified mail is effective upon the date of mailing, as provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA Mr. Joseph P. Robertson, P.E., Director of Pipeline Operations, Navajo Nation Oil and Gas Company, P.O. Box 4439, Window Rock, Arizona 86515 CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

420175009_Final Order_08292019_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) ) ) Navajo Nation Oil and Gas Company, ) Respondent. ) ____________________________________) ) CPF No. 4-2017-5009 FINAL ORDER From January 1, 2014 through December 31, 2016, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Navajo Nation Oil and Gas Company (NNOGC or Respondent), in Farmington, New Mexico. NNOGC operates oil and natural gas facilities in New Mexico, Colorado, Arizona, and Utah.1 As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated April 6, 2017, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that NNOGC had violated 49 C.F.R. § 194.101(a) and proposed ordering Respondent to take certain measures to correct the alleged violation. NNOGC responded to the Notice by letter dated May 9, 2017 (Response). The company did not contest the allegation of violation but provided information concerning the corrective actions it had taken. Respondent did not request a hearing and therefore has waived its right to one. FINDING OF VIOLATION In its Response, NNOGC did not contest the allegation in the Notice that it violated 49 C.F.R. Part 194, as follows: Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 194.101(a), which states: 1 Navajo Nation Oil and Gas Company website, available at http://www.nnogc.com/about-us html (last accessed July 17, 2019).#

420175009_Final Order_08292019_text.pdf, page 3CPF No. 4-2017-5009 Page 2 § 194.101 Operators required to submit plans. (a) Except as provided in paragraph (b) of this section, unless OPS grants a request from an Federal On-Scene Coordinator (FOSC) to require an operator of a pipeline in paragraph (b) to submit a response plan, each operator of an onshore pipeline facility shall prepare and submit a response plan to PHMSA as provided in §194.119. A pipeline which does not meet the criteria for significant and substantial harm as defined in §194.103(c) and is not eligible for an exception under §194.101(b), can be expected to cause substantial harm. Operators of substantial harm pipeline facilities must prepare and submit plans to PHMSA for review. The Notice alleged that Respondent violated 49 C.F.R. § 194.101(a) by failing to submit an oil- spill response plan to PHMSA. Specifically, the Notice alleged that NNOGC had operated the Running Horse Pipeline, a crude oil pipeline subject to Part 194, since approximately 1998 but had never submitted an oil-spill response plan to PHMSA as required by §§ 194.101(a) and 194.119. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 194.101(a) by failing to submit an oil-spill response plan to PHMSA. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 194.101(a). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. The Director indicates that on May 10, 2017, Respondent submitted an oil-spill response plan for the Running Horse Pipeline to PHMSA. Accordingly, I find that compliance has been achieved with respect to this violation. Therefore, the compliance terms proposed in the Notice are not included in this Order. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. August 29, 2019 ___________________________________ _________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#

420175009_Closure Letter_06212017_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED June 21, 2017 Mr. Joseph Robertson Director of Pipeline Operations Navajo Nation Oil and Gas Company P.O. Box 4439 Window Rock, AZ 86515 Re: CPF No. 4-2017-5009 Dear Mr. Gore: Between January 1, 2014 and December 31, 2016, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (USC) inspected Navajo Nation Oil and Gas (NNOGC) records and procedures. As a result of these inspections, a Notice of Probable Violation, CPF 4-2017-5009 was issued on April 6, 2017. On May 9, 2017, NNOGC responded to the NOPV and submitted a copy of the NNOGC Response Plan for PHMSA review. My staff has reviewed your plan and found it to adequately meet the requirements of Title 49, Code of Federal Regulations (CFR) Part 194.107. Subsequently, this letter is to inform you that no further action is necessary and the case is now closed. Thank you for your cooperation. Sincerely, J. A. Manning Acting Director, Southwest Region Pipeline and Hazardous Materials Safety Administration#