{"operation":"document","citation":"CPF 520175007W","title":"RESOLUTE NATURAL RESOURCES COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-05-26","effective_on":null,"summary":"CLOSED warning letter citing 195.410(a)(2)(ii), 195.412(a), 195.440(d)(1), 195.507(a)(2), 195.579(a), 195.583(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520175007w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520175007w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520175007w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520175007W","body":"Warning Letter involving RESOLUTE NATURAL RESOURCES COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.410(a)(2)(ii),  195.412(a),  195.440(d)(1),  195.507(a)(2),  195.579(a),  195.583(b). The case was opened on 2017-05-26 and is reported as closed as of 2017-05-26. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520175007W_Warning Letter_05262017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520175007W/520175007W_Warning%20Letter_05262017.pdf\n\n520175007W_Warning Letter_05262017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520175007W/520175007W_Warning%20Letter_05262017_text.pdf\n\n520175007W_Warning Letter_05262017_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 26, 2017\nMr. James M. Piccone\nPresident\nResolute Natural Resources Company\n1700 Lincoln Street Suite 2800\nDenver, CO 80203\nCPF 5-2017-5007W\nDear Mr. Piccone:\nOn October 3 through 13, 2016, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Greater\nAneth CO2 Pipeline in Denver and Cortez, Colorado.\nAs a result of the inspection, it is alleged that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolation(s) are:\n1. §195.412 Inspection of rights-of-way and crossings under navigable waters.\n(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each\ncalendar year, inspect the surface conditions on or adjacent to each pipeline right-of-\nway. Methods of inspection include walking, driving, flying or other appropriate means\nof traversing the right-of-way.\nDuring the inspection of your records, it was found that there were no records of adequate frequency\nof the right-of-way (ROW) patrols. Resolute Natural Resources (RNR) has records of only 9 patrols\nfor 2015, versus the required 26 times each calendar year as required by §195.412(a).\n\n\n\n2. §195.410 Line markers.\n(a) Except as provided in paragraph (b) of this section, each operator shall place and\nmaintain line markers over each buried pipeline in accordance with the following:\n(2) The marker must state at least the following on a background of sharply\ncontrasting color:\n(ii) The name of the operator and a telephone number (including area code) where the\noperator can be reached at all times.\nDuring the field inspection, the line markers observed have the operator's name and emergency contact\nnumber covered by a warning label. It was noted that quite a few of the line markers show the line\noperator to be ExxonMobil rather than RNR. Furthermore, there are a few of the labels that are faded\nand/or weathered, and some of those line markers/labels are so faded and/or weathered that they are no\nlonger have a contrasting color. Also, there are line marker labels that don't meet the letter/text size\nrequirements. Most markers partially meet section §195.410 requirements, but very few markers meet\nall the requirements.\n3. §195.583 What must I do to monitor atmospheric corrosion control?\n(b) During inspections you must give particular attention to pipe at soil-to-air interfaces,\nunder thermal insulation, under disbonded coatings, at pipe supports, in splash zones, at\ndeck penetrations, and in spans over water.\nDuring the records and procedures review, it was noted that neither RNR’s O&M procedures nor their\ninspection form, used to record the atmospheric corrosion inspection, have provisions to show the\nneed for employees to pay any particular attention to the pipe at soil-to-air interfaces, under thermal\ninsulation, under disbonded coatings, at pipe supports, in splash zones, at deck penetrations, and in\nspans over water as required by §195.583(b).\n4. §195.579 What must I do to mitigate internal corrosion?\n(a) General. If you transport any hazardous liquid or carbon dioxide that would corrode\nthe pipeline, you must investigate the corrosive effect of the hazardous liquid or carbon\ndioxide on the pipeline and take adequate steps to mitigate internal corrosion.\nDuring the records review, RNR failed to demonstrate they had investigated the corrosive effects of\nthe hazardous liquid on its pipeline. Also, when asked, they could not produce any records showing\nthat they ever tried to investigate the corrosive effects the product has on their pipeline.\n5. §195.507 Recordkeeping.\nEach operator shall maintain records that demonstrate compliance with this subpart.\n(a) Qualification records shall include:\n(2) Identification of the covered tasks the individual is qualified to perform.\nDuring the records review, it was noted that the OQ program has problems with keeping current\nrecords available and determining the current qualification of individuals. Also, the current Covered\nTask list (Rev.10.2016) does not include many cathodic protection types of covered tasks. The\nPHMSA inspector obtained the OQ record for a CP Tech and this record indicates a qualification date\nof 8/24/2009 for the covered tasks that the CP Tech would normally be required to do in 2016. There\nwas no recent qualification/requalification date listed.\n2\n\n\n\n6. §195.440 Public awareness.\n(d) The operator's program must specifically include provisions to educate the public,\nappropriate government organizations, and persons engaged in excavation related\nactivities on:\n(1) Use of a one-call notification system prior to excavation and other damage\nprevention activities.\nDuring the inspection of your records, it was noted that RNR uses a 24/7 one-call center at 1-888-532-\n5427. They also have affiliations with Blue Stakes for Utah, and the Colorado 811. There were no\nrecords of public mailings to landowners and contractors for 2015, but RNR identified 11 landowners\nwithin 220 feet of the right-of-way for 2015. There were no one-calls for notifications in Colorado,\nand the one-call notification records for Utah are at the McElmo creek office. RNR does not\ndifferentiate their production side from their regulated side for one-call records.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $205,638 per\nviolation per day the violation persists up to a maximum of $2,056,380 for a related series of\nviolations. For violation occurring between January 4, 2012 to August 1, 2016, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for\na related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty\nmay not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for\na related 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(s) identified in this letter.\nFailure to do so will result in Resolute Natural Resources Company being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF\n5-2017-5007W. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive material\nqualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\nSincerely,\nKim West\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Coleman / C. Allen / D. Fehling (#154159)\n3","truncated":false,"body_characters":7997}