NAVAJO NATION OIL AND GAS COMPANY — Notice of Amendment

party submissionOfficial PDF52021034NOA_Operator Response to Notice_07232021_(21-203352).pdf#

52021034NOA_Closure Letter_08022021_(21-203352)_text.pdf, page 1Official PDFVIA E-MAIL TO MR. JAMES R. MCCLURE August 2, 2021 Mr. James R. McClure President Navajo Oil and Gas Company 50 Narbono Circle West St. Michaels, AZ 86511 CPF 5-2021-034-NOA Closure Letter Dear Mr. McClure: From March 4, 2021, to May 18, 2021, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected Navajo Nation Oil and Gas Company (NNOGC) PHMSA Drug and Alcohol (D&A) written plan and procedures by virtual and other electronic means. During the inspection, PHMSA identified apparent inadequacies within NNOGC’s written D&A plan and procedures. The PHMSA Western Region received and reviewed the amended written D&A plan and procedures NNOGC submitted to PHMSA in correspondence dated July 23, 2021, and we find them adequate. This letter is to inform you that NNOGC has complied with the terms of the Notice of Amendment (NOA) and that no further actions are necessary with regards to the NOA. This case is now closed. Please be advised that this letter refers only to the NOA (CPF 5-2021-034-NOA) and not to other PHMSA pending cases, if any. Also be advised that nothing herein states or implies that the above described written D&A plan and procedures meet the requirements of the federal pipeline safety regulations or that the NNOCG written D&A plan and procedures are approved. The NNOGC D&A program remains subject to inspection by PHMSA. Sincerely, Dustin Hubbard Director, Western Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry#

52021034NOA_Notice of Amendment_06242021_(21-203352)_text.pdf, page 1Official PDFNOTICE OF AMENDMENT VIA E-MAIL TO MR. JAMES R. MCCLURE June 24, 2021 Mr. James R. McClure President Navajo Oil and Gas Company 50 Narbono Circle West St. Michaels, AZ 86511 CPF 5-2021-034-NOA Dear Mr. McClure: From March 4, 2021 to May 18, 2021, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected Navajo Nation Gas and Oil Company (NNGOC) PHMSA Drug and Alcohol (D&A) written plans and procedures by virtual and other electronic means. On the basis of the inspection, PHMSA has identified the apparent inadequacies found within NNGOC plans or procedures, as described below: 1. §199.101 Anti-drug plan. (a) Each operator shall maintain and follow a written anti-drug plan that conforms to the requirements of this part and the DOT Procedures. The plan must contain— (1) Methods and procedures for compliance with all the requirements of this part, including the employee assistance program; (2) The name and address of each laboratory that analyzes the specimens collected for drug testing; (3) The name and address of the operator's Medical Review Officer, and Substance Abuse Professional;#

52021034NOA_Notice of Amendment_06242021_(21-203352)_text.pdf, page 2The NNGOC Anti-Drug Plan (version 2) does not contain the names and addresses of the Substance Abuse Professional, Medical Review Officer, and each laboratory that analyzes the specimens collected for drug testing. The plan is essentially a generic recitation and paraphrase of Parts 40 and 199, unclear on the roles of the Designated Employer Representative (DER) versus service agents, and incorrect on the classification of covered employees. Moreover, the plan was not maintained to reflect all the amendments to Parts 40 and 199. 2. §199.202 Alcohol misuse plan. Each operator must maintain and follow a written alcohol misuse plan that conforms to the requirements of this part and DOT Procedures concerning alcohol testing programs. The plan shall contain methods and procedures for compliance with all the requirements of this subpart, including required testing, recordkeeping, reporting, education and training elements. The NNGOC Alcohol Misuse Plan (version 2) is essentially a generic recitation and paraphrase of the PHMSA and DOT alcohol testing regulations, unclear on the roles of the DER versus service agents, and incorrect on the classification of covered employees. Moreover, the plan was not maintained to reflect all the amendments to Parts 40 and 199. Response to this Notice This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclose as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). Following the receipt of this Notice, you have 30 days to submit written comments, revised procedures, or a request for a hearing under §190.211. If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within 90 days of receipt of this Notice. This period may be extended by written request for good 2#

52021034NOA_Notice of Amendment_06242021_(21-203352)_text.pdf, page 3cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. It is requested (not mandated) that Navajo Oil and Gas Company maintain documentation of the safety improvement costs associated with fulfilling this Notice of Amendment (preparation/ revision of plans, procedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this matter, please refer to CPF 5-2021-034-NOA and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Dustin Hubbard Director, Western Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings 3#