{"operation":"document","citation":"CPF 52023036NOA","title":"CONTANGO RESOURCES — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-10-25","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3), 195.402(c)(5), 195.446(b)(1), 195.446(b)(3), 195.446(b)(5), 195.446(c)(1), 195.446(c)(2), 195.446(e), 195.446(e)(1), 195.446(e)(3), 195.446(e)(4), 195.446(f)(1), 195.446(h)(6), 195.446(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023036noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023036noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023036noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023036NOA","body":"Notice of Amendment involving CONTANGO RESOURCES. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(3),  195.402(c)(5),  195.446(b)(1),  195.446(b)(3),  195.446(b)(5),  195.446(c)(1),  195.446(c)(2),  195.446(e),  195.446(e)(1),  195.446(e)(3),  195.446(e)(4),  195.446(f)(1),  195.446(h)(6),  195.446(i). The case was opened on 2023-10-25 and is reported as closed as of 2025-03-25. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023036NOA_Closure Letter_03252025_(22-239214).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023036NOA/52023036NOA_Closure%20Letter_03252025_(22-239214).pdf\n\n52023036NOA_Closure Letter_03252025_(22-239214)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023036NOA/52023036NOA_Closure%20Letter_03252025_(22-239214)_text.pdf\n\n52023036NOA_Notice of Amendment_10252023_(22-239214).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023036NOA/52023036NOA_Notice%20of%20Amendment_10252023_(22-239214).pdf\n\n52023036NOA_Notice of Amendment_10252023_(22-239214)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023036NOA/52023036NOA_Notice%20of%20Amendment_10252023_(22-239214)_text.pdf\n\n52023036NOA_Operator Response to Notice_11212023_(22-239214).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023036NOA/52023036NOA_Operator%20Response%20to%20Notice_11212023_(22-239214).pdf\n\n52023036NOA_Closure Letter_03252025_(22-239214)_text.pdf\n\nVIA ELECTRONIC MAIL TO: WColyer@contango.com\nMarch 25, 2025\nMr. Wilkie S. Colyer\nChief Executive Officer\nContango Resources\n3230 Camp Bowie Blvd., Suite 810\nFort Worth, TX 73107\nCPF 5-2023-036-NOA\nClosure Letter\nDear Mr. Colyer:\nFrom July 25 through 29, 2022, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), inspected your control room procedures and records of Contango\nResources (Contango) in Midwest, Wyoming. As a result of the inspection, Contango was\nissued a Notice of Amendment on October 23, 2023, which proposed amendment of your\nprocedures. On January 16, 2024 and June 28, 2024 PHMSA granted additional time for\nContango to complete its response.\nContango submitted its amended procedures on September 30, 2024. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nFor Dustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\n\n\n\ncc: PHP-60 Compliance Registry\nPHP-500 J. Dunphy (#22-239214)\nCaleb Dill, Superintendent, Operations – Caleb.Dill@contango.com\nGreg Westfall, Director Midstream – Greg.Westfall@contango.com\n\n52023036NOA_Notice of Amendment_10252023_(22-239214)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Ellen.mcelrath@contango.com\nOctober 25, 2023\nMs. Ellen McElrath\nVice President – Rockies\nContango Resources\n1717 South Boulder, Suite 900\nTulsa, OK 74119\nCPF 5-2023-036-NOA\nDear Ms. McElrath:\nFrom July 25 through 29, 2022, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), inspected your control room procedures and records of Contango\nResources (Contango) in Midwest, Wyoming.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nContango’s procedures, as described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\n\n\n\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not define a process and criteria to evaluate facilities\nto determine if they are control rooms. Contango must amend its procedures to define the term\n‘control room’ and provide instructions on how to evaluate and document the evaluation of\nfacilties to establish if a control room exists.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(5) Investigating and analyzing pipeline accidents and failures, including sending\nthe failed pipe, component, or equipment for laboratory testing or examination\nwhere appropriate, to determine the cause(s) and contributing factors of the failure\nand to minimize the possibility of a recurrence.\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not contain a process to evaluate the potential\ncontribution of controller fatigue to incidents and accidents during investigations. Contango\nmust amend its procedures to provide instructions for the evaluation and documentation of the\npotential contribution of controller fatigue to incidents and accidents during investigations.\nAdditionally, the Contango procedures did not contain a formal, structured approach for\nreviewing and critiquing reportable events to identify lessons learned. Contango must amend its\nprocedures to provide detailed instructions for the review and critiquing of reportable events to\nidentify lessons learned.\n3. § 195.446 Control room management.\n(a) . . . .\n(b) Roles and responsibilities. Each operator must define the roles and\nresponsibilities of a controller during normal, abnormal, and emergency operating\nconditions. To provide for a controller's prompt and appropriate response to\noperating conditions, an operator must define each of the following:\n(1) A controller's authority and responsibility to make decisions and take actions\nduring normal operations;\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not have a clear process that described the roles and\nresponsibilities of controllers when more than one controller is on shift. Contango must amend\nits procedures to define the roles and responsibilities of controllers when more than one\ncontroller is on shift.\n\n\n\n4. § 195.446 Control room management.\n(a) . . . .\n(b) Roles and responsibilities. Each operator must define the roles and\nresponsibilities of a controller during normal, abnormal, and emergency operating\nconditions. To provide for a controller's prompt and appropriate response to\noperating conditions, an operator must define each of the following:\n(1) . . . .\n(3) A controller's role during an emergency, even if the controller is not the first to\ndetect the emergency, including the controller's responsibility to take specific\nactions and to communicate with others;\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not address the controller’s responsibilities in the\nevent the control room must be evacuated. The Contango Control Room Management Plan\n(CRMP) failed to address evacuation of the control room. Contango SOG#2019-1 Control\nRoom Evacuation Procedure addresses evacuation of the control room but fails to describe the\ncircumstances that might cause evacuation. Contango must amend its CRMP to include\nreference to the evacuation procedures of SOG#2019-1. Contango must amend its SOG#2019-1\nto describe the circumstances that might cause evacuation.\n5. § 195.446 Control room management.\n(a) . . . .\n(b) Roles and responsibilities. Each operator must define the roles and\nresponsibilities of a controller during normal, abnormal, and emergency operating\nconditions. To provide for a controller's prompt and appropriate response to\noperating conditions, an operator must define each of the following:\n(1) . . . .\n(5) The roles, responsibilities and qualifications of others who have the authority to\ndirect or supersede the specific technical actions of controllers.\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not address who has the authority to direct or\nsupersede the specific technical actions of a controller. Contango must amend its procedures to\ndefine the roles, responsibilities and qualifications of others who have the authority to direct or\nsupersede the specific technical actions of controllers.\n6. § 195.446 Control room management.\n(a) . . . .\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator has defined by performing each\nof the following:\n\n\n\n(1) Implement API RP 1165 (incorporated by reference, see § 195.3) whenever a\nSCADA system is added, expanded or replaced, unless the operator demonstrates\nthat certain provisions of API RP 1165 are not practical for the SCADA system\nused;\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not define the types of changes to the SCADA\nsystem(s) that constitute additions, expansions, or replacements under the meaning of the CRM\nrule. Contango must amend its procedures to define the types of changes to the SCADA\nsystem(s) that constitute additions, expansions, or replacements under the meaning of the CRM\nrule. Additionally, Contango must amend its procedures to include implementation instructions\nfor implementing API RP 1165 display standards to any SCADA systems that have been added,\nexpanded, or replaced since August 1, 2012.\n7. § 195.446 Control room management.\n(a) . . . .\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator has defined by performing each\nof the following:\n(1) . . . .\n(2) Conduct a point-to-point verification between SCADA displays and related field\nequipment when field equipment is added or moved and when other changes that\naffect pipeline safety are made to field equipment or SCADA displays; …\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango CRMP did not adequately define the terms ‘point’ or ‘safety-related\npoint’ as they relate to the Contango SCADA system. Additionally, the Contango CRMP did not\nhave a process for the implementation of new points or for verification of existing points on the\npipeline.\nContango must amend its procedures to define the terms ‘point’ or ‘safety-related point’ as they\nrelate to the Contango SCADA system. Additionally, Contango must amend its procedures to\nprovide detailed instructions for the implementation and documentation of new points on the\nSCADA system and the verification of existing points on the SCADA system.\n8. § 195.446 Control room management.\n(a) . . . .\n(e) Alarm management. Each operator using a SCADA system must have a written\nalarm management plan to provide for effective controller response to alarms.\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango CRMP did not contain the following critical alarm management\ntopical areas for effective controller response to alarms: alarm philosophy, alarm identification,\n\n\n\nalarm rationalization, detailed alarm design, or alarm implementation. Contango must amend its\nprocedures to include the missing critical alarm management topical areas for effective controller\nresponse to alarms.\n9. § 195.446 Control room management.\n(a) . . . .\n(e) Alarm management. Each operator using a SCADA system must have a written\nalarm management plan to provide for effective controller response to alarms. An\noperator's plan must include provisions to:\n(1) Review SCADA safety-related alarm operations using a process that ensures\nalarms are accurate and support safe pipeline operations;\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango CRMP did not contain procedures to identify and correct inaccurate\nor malfunctioning alarms. Contango must amend its procedures to include detailed instructions\non the identification, documentation, and correction of inaccurate or malfunctioning alarms.\nAdditionally, the Contango CRMP does not contain procedures describing the process by which\nalarms are inhibited. Contango must amend its procedures to include detailed instructions\ndescribing the process by which alarms are inhibited and returned to service.\n10. § 195.446 Control room management.\n(a) . . . .\n(e) Alarm management. Each operator using a SCADA system must have a written\nalarm management plan to provide for effective controller response to alarms. An\noperator's plan must include provisions to:\n(1) . . . .\n(3) Verify the correct safety-related alarm set-point values and alarm descriptions\nwhen associated field instruments are calibrated or changed and at least once each\ncalendar year, but at intervals not to exceed 15 months; …\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango CRMP did not contain procedures to determine the correct alarm\nsetpoint values and alarm descriptions. Contango must amend its procedures to include detailed\ninstructions describing the process by which alarm setpoint values and alarm descriptions are\ndetermined.\n11. § 195.446 Control room management.\n(a) . . . .\n(e) Alarm management. Each operator using a SCADA system must have a written\nalarm management plan to provide for effective controller response to alarms. An\noperator's plan must include provisions to:\n\n\n\n(1) . . . .\n(4) Review the alarm management plan required by this paragraph at least once\neach calendar year, but at intervals not exceeding 15 months, to determine the\neffectiveness of the plan;\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango CRMP did not contain procedures to review the alarm management\nplan required by this paragraph at least once each calendar year, but at intervals not exceeding 15\nmonths, to determine the effectiveness of the plan. Contango must amend its procedures to\ninclude detailed instructions for the review and documentation of the alarm management plan as\nrequired by § 195.446(e)(4).\n12. § 195.446 Control room management.\n(a) . . . .\n(f) Change management. Each operator must assure that changes that could affect\ncontrol room operations are coordinated with the control room personnel by\nperforming each of the following:\n(1) Implement section 7 of API RP 1168 (incorporated by reference, see § 195.3) for\ncontrol room management change and require coordination between control room\nrepresentatives, operator's management, and associated field personnel when\nplanning and implementing physical changes to pipeline equipment or\nconfiguration; …\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango CRMP did not contain procedures describing how coordination\nbetween control room representatives, operator's management, and associated field personnel\nwhen planning and implementing physical changes to pipeline equipment or configurations are\nmanaged. Contango must amend its procedures to provide detailed instructions describing how\ncontrol room representatives, operator's management, and associated field personnel coordinate\nand manage the process when planning and implementing physical changes to pipeline\nequipment or configurations.\n13. § 195.446 Control room management.\n(a) . . . .\n(h) Training. Each operator must establish a controller training program and\nreview the training program content to identify potential improvements at least\nonce each calendar year, but at intervals not to exceed 15 months. An operator's\nprogram must provide for training each controller to carry out the roles and\nresponsibilities defined by the operator. In addition, the training program must\ninclude the following elements:\n(1) . . . .\n(6) Control room team training and exercises that include both controllers and\nother individuals, defined by the operator, who would reasonably be expected to\noperationally collaborate with controllers (control room personnel) during normal,\n\n\n\nabnormal or emergency situations. Operators must comply with the team training\nrequirements under this paragraph no later than January 23, 2018.\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not address § 195.446(h)(6). Contango must amend\nits procedures and develop control room team training and exercises that include both controllers\nand other individuals who would reasonably be expected to operationally collaborate with\ncontrollers.\n14. § 195.446 Control room management.\n(a) . . . .\n(i) Compliance validation. Upon request, operators must submit their procedures to\nPHMSA or, in the case of an intrastate pipeline facility regulated by a State, to the\nappropriate State agency.\nContango’s procedures were inadequate to assure the safe operation of a pipeline facility.\nSpecifically, the Contango procedures did not require that Contango submit their procedures to\nPHMSA or, in the case of an intrastate pipeline facility regulated by a State, to the appropriate\nState agency. Contango must amend its procedures to comply with § 195.446(i).\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement Proceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document, you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate, as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n60 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\n\n\n\nIt is requested (not mandated) that Contango maintain documentation of the safety improvement\ncosts associated with fulfilling this Notice of Amendment (preparation/revision of plans,\nprocedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 5-2023-036-NOA, and for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 J. Dunphy (#22-239214)\nCaleb Dill, Supervisor, Operations – Caleb.Dill@contango.com","truncated":false,"body_characters":20771}