{"operation":"document","citation":"CPF 520185003W","title":"RESOLUTE NATURAL RESOURCES COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-03-16","effective_on":null,"summary":"CLOSED warning letter citing 195.404(c)(3), 195.420(b), 195.420(c), 195.573(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520185003w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520185003w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520185003w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520185003W","body":"Warning Letter involving RESOLUTE NATURAL RESOURCES COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.404(c)(3),  195.420(b),  195.420(c),  195.573(c). The case was opened on 2018-03-16 and is reported as closed as of 2018-03-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520185003W_Warning Letter_03162018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520185003W/520185003W_Warning%20Letter_03162018.pdf\n\n520185003W_Warning Letter_03162018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520185003W/520185003W_Warning%20Letter_03162018_text.pdf\n\n520185003W_Warning Letter_03162018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 16, 2018\nMr. James M. Piccone\nPresident\nResolute Natural Resources Company\n1700 Lincoln Street, Suite 2800\nDenver, CO 80203\nCPF 5-2018-5003W\nDear Mr. Piccone:\nOn August 1 through 4, and August 24, 2017, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected your Greater Aneth CO2 Pipeline in Cortez, Colorado, and Aneth, Utah.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items\ninspected and the probable violations are:\n1. §195.420 Valve maintenance.\n(b) Each operator shall, at intervals not exceeding 7 ½ months, but at least twice\neach calendar year, inspect each mainline valve to determine that it is functioning\nproperly.\nResolute Natural Resources Company (RNRC) failed to inspect each mainline valve to\ndetermine that it is functioning properly in accordance with §195.420(b). Records available at\n\n\n\nthe time of inspection, indicated that the maximum 7 ½ months interval was exceeded\nbetween June 23, 2016 and February 6, 2017.\n2. §195.420 Valve maintenance.\n(c) Each operator shall provide protection for each valve from unauthorized\noperation and from vandalism.\nDuring the field inspection of the facility, it was noted that the relief valve at the Hovenweep\nSkid was found to be unsecured. The relief valve is not in an enclosed or secured area, and no\nlock or chain was found on the valve.\n3. §195.573 What must I do to monitor external corrosion control?\n(c) Rectifiers and other devices. You must electrically check for proper\nperformance each device in the first column at the frequency stated in the second\ncolumn.\nRectifier – At least six times each calendar year, but with intervals not exceeding\n2 ½ months.\nRecords available at the time of inspection for rectifier inspections (Hovenweep and Cahone\nMesa locations) for September and November of 2016 only documented the month and year\nof the inspection. Since the day of the inspection was not documented, demonstration that the\ninterval was not exceeded could not be determined, therefore, compliance date for rectifier\ninspections could not be determined.\n4. §195.404 Maps and records.\n(c) Each operator shall maintain the following records for the periods specified:\n(3) A record of each inspection and test required by this subpart shall be\nmaintained for at least 2 years or until the next inspection or test is performed,\nwhichever is longer.\nDuring the inspection of your records of the Operations and Maintenance (O&M) activities, it\nwas noted that RNRC only documented month and year on compliance documents. In order to\ndetermine compliance, the month, day, and year must be documented. Therefore, the\ncompliance date for O&M activities could not be determined.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $209,002 per violation per day the violation persists, up to a maximum of $2,090,022\nfor a related series of violations. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. We have reviewed the\ncircumstances and supporting documents involved in this case, and have decided not to\nconduct additional enforcement action or penalty assessment proceedings at this time. We\nadvise you to correct the items identified in this letter. Failure to do so will result in Resolute\nNatural Resources Company being subject to additional enforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2018-5003W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong with the complete original document you must provide a second copy of the document\nwith the portions you believe qualify for confidential treatment redacted and an explanation of\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nKim West\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 D. Fehling (#155736)\n3","truncated":false,"body_characters":5259}