{"operation":"document","citation":"CPF 520155024","title":"NUTAAQ PIPELINE, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-12-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402, 195.563.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520155024.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520155024.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520155024","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520155024","body":"Notice of Probable Violation involving NUTAAQ PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402,  195.563. The case was opened on 2015-12-02 and is reported as closed as of 2016-08-04. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520155024_Final Order_08042016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155024/520155024_Final%20Order_08042016.pdf\n\n520155024_Final Order_08042016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155024/520155024_Final%20Order_08042016_text.pdf\n\n520155024_NOPV PCO_12022015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155024/520155024_NOPV%20PCO_12022015.pdf\n\n520155024_NOPV PCO_12022015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155024/520155024_NOPV%20PCO_12022015_text.pdf\n\n520155024_Operator Response to Notice_12102015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155024/520155024_Operator%20Response%20to%20Notice_12102015.pdf\n\n520155024_Final Order_08042016_text.pdf\n\nAugust 04, 2016\nMr. Leland Tate\nChief Operating Officer\nNutaaq Pipeline, LLC\n601 West 5th Avenue, Suite 310\nAnchorage, AK 99501\nRe: CPF No. 5-2015-5024\nDear Mr. Tate:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and finds that Nutaaq Pipeline, LLC has completed the actions specified in the Notice\nto comply with the pipeline safety regulations. Therefore, this case is now closed. Service of the\nFinal Order by certified mail is deemed effective upon the date of mailing, or as otherwise\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Chris Hoidal, Director, Western Region, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nCPF No.: 5-2015-5024\nPage 2\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n)\nIn the Matter of )\n)\nNutaaq Pipeline, LLC, )\na subsidiary of Miller Energy )\nResources, Inc., ) CPF No. 5-2015-5024\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn February 2-6, 2015, and February 24-26, 2015, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted on-site pipeline safety inspections of the facilities and\nrecords of Nutaaq Pipeline, LLC (Nutaaq or Respondent) at its Badami Sales Oil Pipeline\nlocated on the North Slope of Alaska. Nutaaq owns and operates a petroleum pipeline that\nextends from the Badami Central Processing Unit, Alaska to a tie‐in point with the Endicott\nPipeline System.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated December 2, 2015, a Notice of Probable Violation and Proposed\nCompliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that Nutaaq had violated 49\nC.F.R. § 195.563 and proposed ordering Respondent to take certain measures to correct the\nalleged violations. The warning item required no further action, but warned the operator to\ncorrect the probable violation or face possible enforcement action.\nNutaaq responded to the Notice by letter dated December 10, 2015 (Response). In addition, on\nFebruary 4, 2016, PHMSA met with Nutaaq for clarification of certain aspects of Nutaaq's\nresponse. On March 24, 2016, Nutaaq provided additional clarifying information. The company\ndid not contest the allegations of violation, but provided information concerning the corrective\nactions it had taken in response to the Notice. Respondent did not request a hearing and\ntherefore has waived its right to one.\n\n\n\nCPF No.: 5-2015-5024\nPage 3\nFINDING OF VIOLATION\nIn its Response, Nutaaq did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.563, which states in\nrelevant part:\n§ 195.563-- Which pipelines must have cathodic protection?\n(a) Each buried or submerged pipeline that is constructed, relocated,\nreplaced, or otherwise changed after the applicable date in Sec.\n195.401(c) must have cathodic protection. The cathodic protection\nmust be in operation not later than 1 year after the pipeline is\nconstructed, relocated, replaced, or otherwise changed, as applicable.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.563 by failing to provide cathodic\nprotection to a buried section of its pipeline within a year of construction. Specifically, the\nNotice alleged that Nutaaq failed to provide cathodic protection to the 20-foot section of the\nBadami Sales Oil Pipeline that is buried on the Badami Central Production Facility Pad. The\nBadami Sales Oil Pipeline was constructed in 1998. Respondent did not contest this allegation\nof violation. Accordingly, based upon a review of all of the evidence, I find that Respondent\nviolated 49 C.F.R. § 195.563 by failing to provide cathodic protection to a buried section of the\npipeline within a year of construction.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nWARNING ITEM\nWith respect to Item 1, the Notice alleged a probable violation of Part 195, but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n49 C.F.R. § 195.402 (Item 1) ─ Respondent’s alleged failure to review its procedural\nmanual for emergencies at intervals not exceeding 15 months, but at least once each\ncalendar year.\nNutaaq presented information in its Response showing that it had taken certain actions to address\nthe cited item. Upon investigation, it was found that Nutaaq had failed to review its procedural\nmanual in calendar year 2013. This manual was subsequently reviewed in 2014 and 2015 as\nrequired. Nutaaq has established a compliance task matrix, which notifies personnel of\nupcoming deadlines and will ensure that such problems do not occur in the future.\nIf OPS finds a violation of this item in a subsequent inspection, Respondent may be subject to\nfuture enforcement action.\n\n\n\nCPF No.: 5-2015-5024\nPage 4\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 2 in the Notice for violations of 49\nC.F.R. § 195.563. Under 49 U.S.C. § 60118(a), each person who owns or operates a pipeline\nfacility is required to comply with the applicable safety standards established under chapter 601.\nThe Director indicates that Respondent has taken the following actions specified in the proposed\ncompliance order:\nWith respect to the violation of § 195.563 (Item 2), Respondent has permanently\nconverted the pipeline to an aboveground segment. Respondent removed the soil around\nthe pipeline, placed a rubber boot on the casing, and built an enclosure around that\nsection of the pipeline. Therefore, that section of the pipeline is no longer required by 49\nC.F.R. Part 195 to have cathodic protection because it is no longer buried or in contact\nwith soil.\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nActing Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":7729}