{"operation":"document","citation":"CPF 520075036W","title":"RESOLUTE NATURAL RESOURCES COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2007-10-10","effective_on":null,"summary":"CLOSED warning letter citing 195.452(b)(2), 195.452(f).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075036w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075036w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075036w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520075036W","body":"Warning Letter involving RESOLUTE NATURAL RESOURCES COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.452(b)(2),  195.452(f). The case was opened on 2007-10-10 and is reported as closed as of 2007-10-10. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520075036W_warning letter_10102007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075036W/520075036W_warning%20letter_10102007.pdf\n\n520075036W_warning letter_10102007_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075036W/520075036W_warning%20letter_10102007_text.pdf\n\n520075036W_warning letter_10102007_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 10, 2007\nMr. Dale Cantwell\nVP of Engineering and Operations\nResolute Natural Resources\n1675 Broadway, Suite 1950\nDenver, CO 80202\nCPF 5-2007-5036W\nDear Mr. Cantwell:\nOn September 13, 2007, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an\nIntegrity Management (IM) inspection of the Resolute Natural Resources (Resolute) at your\nfacility near Cortez, Colorado.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violations are:\n1. §195.452 Pipeline integrity management in high consequence areas.\n(b) What program and practices must operators use to manage pipeline\nintegrity? Each operator of a pipeline covered by this section must:\n\n\n\n(2) Include in the program an identification of each pipeline or pipeline\nsegment in the first column of the following table not later than the date in\nthe second column:\n------------------------------------------------------------------------\nPipeline Date\n------------------------------------------------------------------------\nCategory 1................................ December 31, 2001.\nCategory 2................................ November 18, 2002.\nCategory 3................................ Date the pipeline begins\noperation.\n------------------------------------------------------------------------\nResolute purchased the Carbon Dioxide (CO2) pipeline from ExxonMobil in June of\n2006. However, Resolute did not receive any Integrity Management (IM) information\nfrom the previous operator on your CO2 pipeline. Meanwhile, Resolute did not\ncomplete the evaluation to determine a “could affect” High Consequence Area (HCA)\nsegment until August of 2007.\n2. §195.452 Pipeline integrity management in high consequence areas.\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions drawn\nfrom results of the integrity assessments, and other maintenance and surveillance\ndata, and evaluation of consequences of a failure on the high consequence area. An\noperator must include, at minimum, each of the following elements in its written\nintegrity management program:\n(1) A process for identifying which pipeline segments could affect a high\nconsequence area;\n(2) A baseline assessment plan meeting the requirements of paragraph (c) of\nthis section;\n(3) An analysis that integrates all available information about the integrity\nof the entire pipeline and the consequences of a failure (see paragraph (g) of\nthis section);\n(4) Criteria for remedial actions to address integrity issues raised by the\nassessment methods and information analysis (see paragraph (h) of this\nsection);\n(5) A continual process of assessment and evaluation to maintain a\npipeline's integrity (see paragraph (j) of this section);\n(6) Identification of preventive and mitigative measures to protect the high\nconsequence area (see paragraph (i) of this section);\n\n\n\n(7) Methods to measure the program's effectiveness (see paragraph (k) of\nthis section);\n(8) A process for review of integrity assessment results and information\nanalysis by a person qualified to evaluate the results and information (see\nparagraph (h) (2) of this section).\nResolute did not contain provisions in its manual to monitor conditions along your CO2\npipeline for any changes of HCA.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000\nfor each violation for each day the violation persists up to a maximum of $1,000,000 for any\nrelated series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the item identified in this letter.\nFailure to do so will result in Resolute Natural Resources being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 5-2007-5036W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 H. Nguyen (#119852)","truncated":false,"body_characters":5718}