ML24065A136
| ML24065A136 | |
| Person / Time | |
|---|---|
| Issue date: | 02/20/2024 |
| From: | NRC Region 4 |
| To: | |
| References | |
| Download: ML24065A136 (1) | |
Text
Predecisional Enforcement Conference with Empire Wireline, LLC NRC REGION IV TUESDAY, FEBRUARY 20, 2024 1
Meeting Agenda Opening Remarks and Participant Introductions Conference Purpose and Overview of the Enforcement Process Summary of the Apparent Violation Empire Wireline, LLC Presentation NRC and Empire Wireline, LLC Discussion Closing Remarks Public Question and Answer Session 2
Administrative Topics Attendance will be recorded Keep your line muted when not talking Speak clearly
& Identify yourself 3
Opening Remarks &
Introductions
4
Meeting Purpose The purpose of todays meeting is to discuss an apparent violation identified by the NRC in NRC Inspection Reports 150-00042/2023-006 dated December 1, 2023.
(NRCs Agencywide Documents Access and Management System (ADAMS) Accession No. ML23305A199) 5
Conference Process No Final Decision will be made today NRC Inspection Report provided our current understanding We want your perspective Whether a violation occurred Perceived significance of the violation Corrective actions implemented and/or planned timeline Any additional details NRC should consider 6
Public Meeting Disclaimer This is an Observation Meeting Attendees have an opportunity to observe the NRC performing its regulatory function.
Attendees have an opportunity to ask questions of the NRC staff or make comments about the issues discussed following the business portion of the meeting, however, the NRC is not actively soliciting comments towards regulatory decisions at this meeting.
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Possible Enforcement Outcomes No Action Notice of Violation without Civil Penalty Notice of Violation with Civil Penalty Order 8
Significance 9
Civil Penalty Assessment NRC Considerations:
Enforcement History Whether the licensee identified the issue Adequacy of corrective actions 10
Appeal Rights ANY NRC ACTION MAY BE CHALLENGED CIVIL PENALTIES AND ORDERS PROVIDE HEARING RIGHTS AND ALTERNATIVE DISPUTE RESOLUTION 11
Apparent Violation 10 CFR 150.20(a)(1) requires, in part, that any person who holds a specific license from an Agreement State is granted a general NRC license to conduct the same activity in areas of exclusive Federal jurisdiction within Agreement States, subject to the provisions of 10 CFR 150.20(b).
10 CFR 150.20(b)(1) requires, in part, that any person engaging in activities in areas of exclusive Federal jurisdiction within Agreement States shall, at least 3 days before engaging in each activity for the first time in a calendar year, file a submittal containing an NRC Form 241, Report of Proposed Activities in Non-Agreement States, a copy of its Agreement State specific license, and the appropriate fee with the Regional Administrator of the appropriate NRC regional office.
Contrary to the above, on June 4, July 16, August 29, and December 3, 2019, and on February 26, 2020, Empire Wireline, LLC, a licensee of the State of Texas and the State of Louisiana, engaged in activities in areas of exclusive Federal jurisdiction within Agreement States and failed to file a submittal containing an NRC Form 241, a copy of its Agreement State specific license, and the appropriate fee with the Regional Administrator of the NRC Regional Office at least 3 days before engaging in each activity for the first time in a calendar year. Specifically, for calendar years 2019 and 2020, the licensee performed activities at the U.S. Department of Energy, Strategic Petroleum Reserves facilities located in Bryan Mound and Big Hill, Texas, and West Hackberry, Louisiana and failed to submit the required information by June 1, 2019, for calendar year 2019 and by February 23, 2020, for calendar year 2020.
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Empire Wireline, LLC Presentation 13
NRC PEC Response Empire Wireline, LLC Aldru Todd Aaron, General Counsel February 20, 2024
Overview
- Background and Facts
- Allegations
- Empires Position
- Empires Corrective Actions
- NRC Enforcement
Background & Facts
- Empire Wireline, LLC was created in 2015
- Family Owned Business
- Evolved over the years
- WOSB
- Employs 42 workers
- Indiana (winding down)
Background & Facts (2019)
- Called by Fluor Federal Petroleum Operations (FFPO)
- FFPO or Fluor is a Federal Contractor
- Schlumberger, Fluors previous wireline operator, terminated contract
- Fluor requested that Empire step in the shoes of Schlumberger
- Contract was entered into between Fluor and Empire
- Fluoraccredited DOE prime contractor
- Empiresubcontractor working directly for Fluor
Background & Facts
- In total, Five jobs are being cited
- Bryan Mound, Texas (3)
- Big Hill, Texas (1)
- West Hackberry, Louisiana (1)
Services Performed
- Basic Service Charge (no rigs on wells)
- Pressure Control (allows access to well or reservoir)
- Gauge Run with Collar Locator
- Downhole Pressure & Temperature Survey
- Downhole Temperature Survey
- Multisensor Caliper Survey
- *Oil-Brine Interface
Empire Generic Work Display
Allegations
- Empire Wireline performed well-logging activities using radioactive byproduct and failed to file for reciprocity.
- 10 CFR §150.20(b)(1)
Empires Position
- 10 CFR §40.11 Exemption Applies
- None of the SPR sites were recognized or listed as exclusive federal jurisdiction
- Nulla poena sine lege
- Empire exceeded safety compliance
Empires PositionExempt
- 10 CFR §40.11
- Any prime contractor or subcontractor
- Is Exempt
- To the extent that contractor/subcontractor.possesses, uses, transfers or delivers source material.
- Work can be accomplished without undue risk to the public health and safety
Empires PositionExempt
Empires PositionExempt
- DOE Contractors [and their subcontractors] operating within State Boundaries are exempted from the licensing requirements.
10 CFR §40.11.
- Fluor is DOE Prime Contractor
- Empire was a subcontractor
- Operating under established contract for wireline services
- No undue risk to the public health and safety
Empires Positionnot Exclusive
- Sites were neither known to be nor were listed as Exclusive Federal Jurisdiction
- By NRCs own written and verbal admissions, at the time of operations NRC did not show these areas as exclusive federal jurisdiction
- NRC/NMSS Approval Procedures address unique situations
- Empire Wireline possesses valid permits and none of the lands were listed as exclusive federal jurisdiction until after the fact
Empire Positionnot Exclusive
- 7. In situations where surface and subsurface mineral rights are owned by different parties in Agreement States, jurisdiction will be based on the surface ownership. For example, well logging conducted on private land will be under Agreement State jurisdiction even if the mineral rights are maintained by the federal government or a Federally recognized Tribe. Notification of the subsurface mineral rights owner(s) will be made in accordance with Agreement State regulations and guidance.
-NMSS SA-500, pg. 5, ¶ 7
Empire Positionnot Exclusive
- 8. In general, Agreement States retain regulatory authorities over private entities operating in federally owned or controlled lands that are not areas of exclusive federal jurisdiction. There is an exception for DOE contractors operating within the Agreement State boundaries. (10 CFR 30.12, 10 CFR 40.11 and 10 CFR 70.11)
-NMSS SA-500, pg. 5, ¶8
Empires Positionnot Exclusive
- Sites were neither known to be nor were listed as Exclusive Federal Jurisdiction
- By NRCs own written and verbal admissions, NRC failed to list the sites as being exclusive federal jurisdiction
- NRC/NMSS Approval Procedures state that in situations where surface and subsurface mineral rights are owned by different parties in Agreement States, jurisdiction will be based on surface ownership
- Empire Wireline possesses valid permits and none of the lands were listed as exclusive federal jurisdiction until after the fact
Nulla Poena Sine Lege
- Translated no punishment without law
- US Supreme Court enforces the concept of refusing to prosecute when no law on the books for any alleged transgression.
- Further, refuses to enforce any punishment when no law on the book
- **Important to note, enacted laws cannot be retroactive
Nulla Poena Sine Lege
- SPR not listed or known by the NRC to be exclusive federal jurisdiction at the time services were rendered
- Therefore, no federal law or procedure could have been violated
- Acting in good faith, Empire possessed the proper State licenses for their activities and fully complied with the contract and respective State laws
Empire Exceeded Safety
- No Incidents
- No Accidents
- No Lost Source
- Only used in Oil-Brine Interface
- No Risk to Public Health
- No Risk to Safety
- Greater Public Good
Empires Corrective Actions
- Careful Who You AskAnd WHO YOU LET ASK!
- Internal Database of Work Sites
- Internal Communication
- All contracts to be reviewed by legal (not done in the past)
- All external governmental requests forwarded to Company leadership (not done in the past)
- Ensure right person with right knowledge
- HSE does not equate to RSO
- Internal Training
NRC Discretion
- Not Known at the time
- Not Repetitive
- Not Willful
- No Previous Errors or Omissions
- Empire has corrected the Misunderstanding
- Empire has taken actions to prevent Future Omissions
- Matter in Question allows discretion Source: NRC Enforcement Policy
NRC Enforcement
NRC Enforcement
NRC Escalated
Empire Requested Resolution
- Total Dismissal
- Non-Cited Violation
Summary
- Background and Facts
- Allegations
- Empires Position
- Empires Corrective Actions
- NRC Enforcement
SINCERELY THANK YOU!
NRC and Empire Wireline, LLC Discussion 41
Predecisional Enforcement Conference with Empire Wireline, LLC NRC CAUCUS IN SESSION RETURNING SHORTLY 42
NRC and Empire Wireline, LLC Discussion 43
Closing Remarks 44
Public Question &
Answer Session
- Raise your hand in MS Teams or
- Press *5 on your phones dial-pad to raise your hand 45
Public Feedback 46 www.nrc.gov/pmns/mtg