InternalComplianceAudit

Whoweare?HeadquarteredinOgden,Utah

Foundedin1975,incorporatedin1993

SpecializeinTieCollection,Rehabilitation,andSales◦ Pickupthetieswithgrappletrucks,SPSorMPMmachines.◦ Sort,grade,process,andrehabrailroadties.

PlantsinClinton,IA,GrandIsland,NE,andTucson,AZ.

ProvideTrackMaintenance,Repair,Inspection,Consulting,GrappleTrucks,Vacuumtrucks,VegetationCleanup,HomelessEncampmentCleanup,Part213.7Training.

WhoIamRickBellew,VicePresidentofCorporateDevelopmentWorkedforBNSFRailwayfor10years,startingasatracklaborer,workedmywaythroughmultiplepositionsendingwithRoadmasteronthreedifferentterritoriesthroughoutthecountry.FRATrackSafetyInspectorintheStateofNewMexico.LefttheFRAtorejointheprivatesectorwithHerzogandTransitAmericaServices◦ ContractOperatorforNewMexicoRailRunnerExpress◦ ContractOperatorforCaltrain

BeeninvolvedwithTrackMaintenance,Repair,Inspection,MechanicalEquipment,Operations,Agencies,andConstructionallofmycareer.SpentsignificantamountoftimewiththeStateofGoodRepairProgramforCaltrain(CTAMS),ContinuousImprovementprojectsforHerzogandTransitAmericaServicestoincludeproductprocurementapprovals,managementdevelopmentprograms,andmultipleCFRPlans.

IsOurTrackInspectionProcessSound?WestartbyperformingafullevaluationofyourTrackInspectionProcesswhichincludesbutisnotlimitedtothefollowing:◦ Part213.7Qualification– HowareyourInspectorsqualified?Whoqualifiedthem?WillyourprocessmeetPart243requirements?Doyouhavealistofqualifiedemployees?

◦ Speedanalysis– Howlongdoesittaketoinspectyourrailroad?Howmuchtrackauthorityisusedtoperformtheinspection?Cananinspectorreallyperformaqualityinspectionat42MPH?

◦ Audittrackinspectionrecordsforfrequencyrequirementsandcomparetofieldassessments.Ifnodefectsarebeingreported,whyamIfindingdefectsinthefield?

◦ TrackInspectionProcess– Evaluatehowtheinspectionisplanned,conducted,documented,andfollowedupon.Recommendationswillbeprovidedafterincludingindustrybestpractices.

Doyourunarailflawdetector?Everwonderifyourraildetectionprocessissound?Herearesomethingstoconsider:◦ Whatfrequencyareyourunningyourraildetector?WasthisfrequencysubmittedtotheFRAasrequiredinthelastregulationchange?Isitstillaccurate?Areyouupdatingitasrequired?

◦ Areyourrailflawdetectoroperatorsqualifiedasrequiredbytheregulation?Doyouhavetheirtrainingrecords?Wherearethey?

◦ Arethedefectsprotectedcorrectly?Whataboutthefirsttrainoverthedefectbeforeitisrepaired?Didyourtrackdepartmentissueasloworderproperlyandwithintherequiredclassoftrack?Whereisthisdocumented?

◦ Wasthedefectrepairedproperly?Whatabouttherailjointthatwasaddedwhenthedefectwasrepaired?Isthereaplantoweldit?Ifso,when?Whatifrailwasadded?

◦ Wecanlookateachofthesesituationsandmakeadeterminationastoiftheprocessissound,andbeingfollowed.

RailJointCompliance?Didyouknowtherearerequirementswhenarailjointiscutinandleftinthetrackstructure?

Areyourjointsbeinginspectedaccordingtotheproperscheduledfrequency?

Everwonderhowaninspectorisabletoperforminspectionsonover500railjoints?Isthereapossibilitytheyarenotperformingafullinspection?Howareyourinspectionsdocumented?Howareyourjointsinventoried?IfyouhavemorethanonejointlocatedatMP10.1,howdoyoudifferentiatethemsotheinspectorknowsexactlywhatonehe/sheisinspectingforthereport?

Isthereaplantoremovetherailjoints?Shouldtherebe?

Areyourinsulatedjointsbeinginspected?◦ Howoftenaretheyreplaced?

HeatRuns,CWR,andAddedRailWhatisCWR?ContinuousWeldedRailistheanswer.CWRcanbeagreatasset,oradestructiveforceifnotmonitored/maintainedcorrectly.

Itwasacoldwinterandweaddedrail.Whatdoesthismeanforsummer?

DowehaveasolidCWRPlan?

Howareoursignalemployeestrainedtowalktrainsoverbrokenrails?Arethey?Theyshouldbeasper49CFRPart213.7d.Howlongshouldtheclassbe?Istherearequiredcurriculum?

HowlongdoesmyannualCWRclassneedtobe?Isthereatest?Whoissupposedtobequalifiedunderthisregulation?

Wecanassessallofthisandmore.

RegulationswefocusonduringthisauditPart213.7– Designationofqualifiedpersonstosupervisecertainrenewalsandinspecttrack

Part213.110– Gagerestraintmeasurementsystems

Part213.113– DefectiveRails

Part213.118and119– CWRPlanreview,approval,andcontents.

Part213.121– RailJoints

Part213.233– TrackInspections

Part213.234– AutomatedInspectionofTrackConstructedwithConcreteCrossties.

Part213.235– Inspectionofswitches,trackcrossings,andliftrailassembliesorothertransitiondevicesonmoveablebridges

Part213.237– InspectionofRail

Part213.238– QualifiedOperator

Part213.241– InspectionRecords

InternalComplianceAuditsSummaryOurjobisnottodisqualifyaninspectororprovideinformationtohelpterminatesomeonesemployment.Wearefocusedonprovidingaqualityauditofthetrackmaintenance,inspection,repair,andoversightprocesstoensureasafeinfrastructureforourclientspassengers,employees,andresidentsparallelingtheROW.◦ Operationscomplianceauditstypicallyarenotfocusedontheinfrastructureandhowitisinspected,maintained,andrepaired.

◦ WeconductaDeepDiveTypeauditintendedtoprovideanswerstoalotofthequestionsourclientsmayhaveabouteithertheirownemployeesorthecontractoperatortheyprovideoversightto.

◦ Weaimtofindproblemsbeforetheproblemsfindyou.LetushelpwithacomprehensiveinternalauditbeforetheFRAconductsoneandimposespenalties.

◦ Weareheretohelp.

AdditionalServicesNRMprovidedinspectortoconductafullPart213inspectionoftheentiretrackstructure.(Aninternalinspection BEFORE theFRAinspection)◦ Thiscouldtakeaweek,orfourweeksdependingonmultiplevariableswhichshouldbediscussedpriorto

schedulingtheinspection.

StateofGoodRepairAssessment◦ NRMcanprovideaninspectorwhowillconductafullorsampleSOGRassessment.SOGRassessmentsareideal

whenanagencywantstokeeptrackoftheconditionofthetrackstructurepriorto,during,andafterthetermofacontracthasendedorisendinginthenearfuture.Thisallowstheagencytomakeadeterminationastotheconditionofthetrackbefore,andafterthetermofthecontract.NRMcanalsomakerecommendationsaftertheinspectioninordertohelpmakedecisionstoextendthelifeofthephysicalplant.Ratingsaretypicallybetween1and5,andcolorcoded.Abaselineinspectionshouldbeperformed,andperiodicinspectionstoassessiftheconditionhasimproved,ordegraded.

CapitalTieMaintenanceProgram◦ NRMutilizesstateoftheartsystemswhichallowourinspectorstogradeeachandeveryrailroadtiebetween

MPlocations.Theconditionisloggedintoaruggedizedpalmtoppilot.TheinspectiondataisuploadedintoasoftwareprogramprovidedbyZeta-Tech.Fromthissoftwaresystem,NRMisabletomakearecommendationontiereplacementusinganumberofvariablessuchas:◦ Replaceevery2,3,4,5tieclusters◦ Buildacapitaltiereplacementprogramtobringclassuptoahigherclassforspeedincreases.◦ Buildacapitaltiereplacementprogramforminormaintenance.

Part214– OnTrackSafetyProgram◦ IsyourPart214programinfullcompliancewiththenewregulations?

Part213.7TrainingandQualification◦ IncludesOJTTrainingProgram,ClassroomTraining,andhandsonapplicationinthefield.

Whatcanwedoforyou?

RichardBellewVPCorporateDevelopment

NevadaRailroadMaterialsInc.www.nevadarail.com

rbellew@nevadarail.comhttps://www.linkedin.com/in/richardbellew

917CountryHillsDrive#3SouthOgden,UT.84403

801-391-1201