diff --git a/op-node/rollup/derive/attributes.go b/op-node/rollup/derive/attributes.go
index c7d326db88dc3..14d58b2deef90 100644
--- a/op-node/rollup/derive/attributes.go
+++ b/op-node/rollup/derive/attributes.go
@@ -33,42 +33,28 @@ func PreparePayloadAttributes(ctx context.Context, cfg *rollup.Config, dl L1Rece
 	if l2Parent.L1Origin.Number != epoch.Number {
 		info, _, receipts, err := dl.Fetch(ctx, epoch.Hash)
 		if err != nil {
-			return nil, NewTemporaryError(
-				err,
-				"failed to fetch L1 block info and receipts",
-			)
+			return nil, NewTemporaryError(fmt.Errorf("failed to fetch L1 block info and receipts: %w", err))
 		}
 		if l2Parent.L1Origin.Hash != info.ParentHash() {
 			return nil, NewResetError(
-				nil,
-				fmt.Sprintf("cannot create new block with L1 origin %s (parent %s) on top of L1 origin %s",
-					epoch, info.ParentHash(), l2Parent.L1Origin),
-			)
+				fmt.Errorf("cannot create new block with L1 origin %s (parent %s) on top of L1 origin %s",
+					epoch, info.ParentHash(), l2Parent.L1Origin))
 		}
 		deposits, err := DeriveDeposits(receipts, cfg.DepositContractAddress)
 		if err != nil {
-			return nil, NewResetError(
-				err,
-				"failed to derive some deposits",
-			)
+			// deposits may never be ignored. Failing to process them is a critical error.
+			return nil, NewCriticalError(fmt.Errorf("failed to derive some deposits: %w", err))
 		}
 		l1Info = info
 		depositTxs = deposits
 		seqNumber = 0
 	} else {
 		if l2Parent.L1Origin.Hash != epoch.Hash {
-			return nil, NewResetError(
-				nil,
-				fmt.Sprintf("cannot create new block with L1 origin %s in conflict with L1 origin %s",
-					epoch, l2Parent.L1Origin),
-			)
+			return nil, NewResetError(fmt.Errorf("cannot create new block with L1 origin %s in conflict with L1 origin %s", epoch, l2Parent.L1Origin))
 		}
 		info, err := dl.InfoByHash(ctx, epoch.Hash)
 		if err != nil {
-			return nil, NewTemporaryError(
-				err,
-				"failed to fetch L1 block info",
-			)
+			return nil, NewTemporaryError(fmt.Errorf("failed to fetch L1 block info: %w", err))
 		}
 		l1Info = info
 		depositTxs = nil
@@ -77,10 +63,7 @@ func PreparePayloadAttributes(ctx context.Context, cfg *rollup.Config, dl L1Rece
 
 	l1InfoTx, err := L1InfoDepositBytes(seqNumber, l1Info)
 	if err != nil {
-		return nil, NewResetError(
-			err,
-			"failed to create l1InfoTx",
-		)
+		return nil, NewCriticalError(fmt.Errorf("failed to create l1InfoTx: %w", err))
 	}
 
 	txs := make([]hexutil.Bytes, 0, 1+len(depositTxs))
diff --git a/op-node/rollup/derive/batch_queue.go b/op-node/rollup/derive/batch_queue.go
index 0d3e451b20368..1099eb198c83c 100644
--- a/op-node/rollup/derive/batch_queue.go
+++ b/op-node/rollup/derive/batch_queue.go
@@ -2,7 +2,6 @@ package derive
 
 import (
 	"context"
-	"errors"
 	"fmt"
 	"io"
 	"sort"
@@ -74,9 +73,7 @@ func (bq *BatchQueue) Step(ctx context.Context, outer Progress) error {
 		bq.log.Trace("Out of batches")
 		return io.EOF
 	} else if err != nil {
-		bq.log.Error("Error deriving batches", "err", err)
-		// Suppress transient errors for when reporting back to the pipeline
-		return nil
+		return err
 	}
 
 	for _, batch := range batches {
@@ -103,14 +100,14 @@ func (bq *BatchQueue) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error
 	return io.EOF
 }
 
-func (bq *BatchQueue) AddBatch(batch *BatchData) error {
+func (bq *BatchQueue) AddBatch(batch *BatchData) {
 	if bq.progress.Closed {
 		panic("write batch while closed")
 	}
-	bq.log.Trace("queued batch", "origin", bq.progress.Origin, "tx_count", len(batch.Transactions), "timestamp", batch.Timestamp)
 	if len(bq.l1Blocks) == 0 {
-		return fmt.Errorf("cannot add batch with timestamp %d, no origin was prepared", batch.Timestamp)
+		panic(fmt.Errorf("cannot add batch with timestamp %d, no origin was prepared", batch.Timestamp))
 	}
+	bq.log.Trace("queuing batch", "origin", bq.progress.Origin, "tx_count", len(batch.Transactions), "timestamp", batch.Timestamp)
 
 	data := BatchWithL1InclusionBlock{
 		L1InclusionBlock: bq.progress.Origin,
@@ -122,55 +119,45 @@ func (bq *BatchQueue) AddBatch(batch *BatchData) error {
 		for _, b := range batches {
 			if b.Batch.Timestamp == batch.Timestamp && b.Batch.Epoch() == batch.Epoch() {
 				bq.log.Warn("duplicate batch", "epoch", batch.Epoch(), "timestamp", batch.Timestamp, "txs", len(batch.Transactions))
-				return nil
+				return
 			}
 		}
 	} else {
 		bq.log.Debug("First seen batch", "epoch", batch.Epoch(), "timestamp", batch.Timestamp, "txs", len(batch.Transactions))
-
 	}
 	// May have duplicate block numbers or individual fields, but have limited complete duplicates
 	bq.batchesByTimestamp[batch.Timestamp] = append(batches, &data)
-	return nil
 }
 
 // validExtension determines if a batch follows the previous attributes
-func (bq *BatchQueue) validExtension(batch *BatchWithL1InclusionBlock, prevTime, prevEpoch uint64) bool {
+func (bq *BatchQueue) validExtension(batch *BatchWithL1InclusionBlock, prevTime, prevEpoch uint64) (valid bool, err error) {
 	if batch.Batch.Timestamp != prevTime+bq.config.BlockTime {
 		bq.log.Debug("Batch does not extend the block time properly", "time", batch.Batch.Timestamp, "prev_time", prevTime)
-
-		return false
+		return false, nil
 	}
 	if batch.Batch.EpochNum != rollup.Epoch(prevEpoch) && batch.Batch.EpochNum != rollup.Epoch(prevEpoch+1) {
 		bq.log.Debug("Batch does not extend the epoch properly", "epoch", batch.Batch.EpochNum, "prev_epoch", prevEpoch)
-
-		return false
+		return false, nil
 	}
 	ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
 	l1BlockRef, err := bq.dl.L1BlockRefByNumber(ctx, batch.Batch.Epoch().Number)
 	cancel()
 	if err != nil {
-		bq.log.Warn("err fetching l1 block", "err", err)
-		if errors.Is(err, ErrTemporary) {
-			// Skipping validation in case of temporary RPC error
-			bq.log.Warn("temporary err - skipping epoch hash validation", "err", err)
-			return true
-		} else {
-			return false
-		}
+		return false, err
 	}
 
 	if l1BlockRef.Hash != batch.Batch.EpochHash {
-		return false
+		bq.log.Debug("Batch epoch hash does not match expected L1 block hash", "batch_epoch", batch.Batch.Epoch(), "expected", l1BlockRef.ID())
+		return false, nil
 	}
 
 	// Note: `Batch.EpochNum` is an external input, but it is constrained to be a reasonable size by the
 	// above equality checks.
 	if uint64(batch.Batch.EpochNum)+bq.config.SeqWindowSize < batch.L1InclusionBlock.Number {
 		bq.log.Debug("Batch submitted outside sequence window", "epoch", batch.Batch.EpochNum, "inclusion_block", batch.L1InclusionBlock.Number)
-		return false
+		return false, nil
 	}
-	return true
+	return true, nil
 }
 
 // deriveBatches pulls a single batch eagerly or a collection of batches if it is the end of
@@ -230,15 +217,14 @@ func (bq *BatchQueue) deriveBatches(ctx context.Context, l2SafeHead eth.L2BlockR
 
 	} else {
 		bq.log.Trace("Trying to eagerly find batch")
-		var ret []*BatchData
 		next, err := bq.tryPopNextBatch(ctx, l2SafeHead)
-		if next != nil {
+		if err != nil {
+			return nil, err
+		} else {
 			bq.log.Info("found eager batch", "batch", next.Batch)
-			ret = append(ret, next.Batch)
+			return []*BatchData{next.Batch}, nil
 		}
-		return ret, err
 	}
-
 }
 
 // tryPopNextBatch tries to get the next batch from the batch queue using an eager approach.
@@ -285,8 +271,7 @@ func (bq *BatchQueue) tryPopNextBatch(ctx context.Context, l2SafeHead eth.L2Bloc
 		// Note: Don't check epoch change here, check it in `validExtension`
 		epoch, err := bq.dl.L1BlockRefByNumber(ctx, uint64(batch.Batch.EpochNum))
 		if err != nil {
-			bq.log.Warn("error fetching origin", "err", err)
-			return nil, err
+			return nil, NewTemporaryError(fmt.Errorf("error fetching origin: %w", err))
 		}
 		if err := ValidBatch(batch.Batch, bq.config, epoch.ID(), minL2Time, maxL2Time); err != nil {
 			bq.log.Warn("Invalid batch", "err", err)
@@ -294,7 +279,9 @@ func (bq *BatchQueue) tryPopNextBatch(ctx context.Context, l2SafeHead eth.L2Bloc
 		}
 
 		// We have a valid batch, no make sure that it builds off the previous L2 block
-		if bq.validExtension(batch, l2SafeHead.Time, l2SafeHead.L1Origin.Number) {
+		if valid, err := bq.validExtension(batch, l2SafeHead.Time, l2SafeHead.L1Origin.Number); err != nil {
+			return nil, err
+		} else if valid {
 			// Advance the epoch if needed
 			if l2SafeHead.L1Origin.Number != uint64(batch.Batch.EpochNum) {
 				bq.l1Blocks = bq.l1Blocks[1:]
@@ -302,12 +289,12 @@ func (bq *BatchQueue) tryPopNextBatch(ctx context.Context, l2SafeHead eth.L2Bloc
 			// Don't leak data in the map
 			delete(bq.batchesByTimestamp, batch.Batch.Timestamp)
 
-			bq.log.Info("Batch was valid extension")
+			bq.log.Debug("Batch was valid extension")
 
 			// We have found the fist valid batch.
 			return batch, nil
 		} else {
-			bq.log.Info("batch was not valid extension")
+			bq.log.Warn("batch was not valid extension", "inclusion", batch.L1InclusionBlock, "safe_origin", l2SafeHead.L1Origin, "l2_time", l2SafeHead.Time)
 		}
 	}
 
diff --git a/op-node/rollup/derive/batch_queue_test.go b/op-node/rollup/derive/batch_queue_test.go
index 017a6d402a097..fddee441fe873 100644
--- a/op-node/rollup/derive/batch_queue_test.go
+++ b/op-node/rollup/derive/batch_queue_test.go
@@ -116,8 +116,7 @@ func TestBatchQueueEager(t *testing.T) {
 	// Add batches
 	batches := []*BatchData{b(12, l1[0]), b(14, l1[0])}
 	for _, batch := range batches {
-		err := bq.AddBatch(batch)
-		require.Nil(t, err)
+		bq.AddBatch(batch)
 	}
 	// Step
 	for {
@@ -170,8 +169,7 @@ func TestBatchQueueFull(t *testing.T) {
 	// Add batches
 	batches := []*BatchData{b(14, l1[0]), b(16, l1[0]), b(18, l1[1])}
 	for _, batch := range batches {
-		err := bq.AddBatch(batch)
-		require.Nil(t, err)
+		bq.AddBatch(batch)
 	}
 	// Missing first batch
 	err = bq.Step(context.Background(), prevProgress)
@@ -205,8 +203,7 @@ func TestBatchQueueFull(t *testing.T) {
 
 	// Finally add batch
 	firstBatch := b(12, l1[0])
-	err = bq.AddBatch(firstBatch)
-	require.Equal(t, err, nil)
+	bq.AddBatch(firstBatch)
 
 	// Close the origin
 	prevProgress.Closed = true
@@ -271,8 +268,7 @@ func TestBatchQueueMissing(t *testing.T) {
 	// that batch timestamp 12 & 14 is created & 16 is used.
 	batches := []*BatchData{b(16, l1[0]), b(20, l1[1])}
 	for _, batch := range batches {
-		err := bq.AddBatch(batch)
-		require.Nil(t, err)
+		bq.AddBatch(batch)
 	}
 	// Missing first batch
 	err = bq.Step(context.Background(), prevProgress)
diff --git a/op-node/rollup/derive/channel_bank.go b/op-node/rollup/derive/channel_bank.go
index b19c4151f542b..fc1c7d85c000f 100644
--- a/op-node/rollup/derive/channel_bank.go
+++ b/op-node/rollup/derive/channel_bank.go
@@ -66,29 +66,28 @@ func (ib *ChannelBank) prune() {
 }
 
 // IngestData adds new L1 data to the channel bank.
-// Read() should be called repeatedly first, until everything has been read, before adding new data.
-// Then NextL1(ref) should be called to move forward to the next L1 input
-func (ib *ChannelBank) IngestData(data []byte) error {
+// Read() should be called repeatedly first, until everything has been read, before adding new data.\
+func (ib *ChannelBank) IngestData(data []byte) {
 	if ib.progress.Closed {
 		panic("write data to bank while closed")
 	}
 	ib.log.Debug("channel bank got new data", "origin", ib.progress.Origin, "data_len", len(data))
 	if len(data) < 1 {
-		return NewTemporaryError(
-			nil,
-			"data must be at least have a version byte, but got empty string",
-		)
+		ib.log.Warn("data must be at least have a version byte, but got empty string")
+		return
 	}
 
 	if data[0] != DerivationVersion0 {
-		return fmt.Errorf("unrecognized derivation version: %d", data)
+		ib.log.Warn("unrecognized derivation version", "version", data)
+		return
 	}
 	buf := bytes.NewBuffer(data[1:])
 
 	ib.prune()
 
 	if buf.Len() < minimumFrameSize {
-		return fmt.Errorf("data must be at least have one frame")
+		ib.log.Warn("data must be at least have one frame", "length", buf.Len())
+		return
 	}
 
 	// Iterate over all frames. They may have different channel IDs to indicate that they stream consumer should reset.
@@ -96,36 +95,37 @@ func (ib *ChannelBank) IngestData(data []byte) error {
 		// Don't try to unmarshal from an empty buffer.
 		// The if done checks should catch most/all of this case though.
 		if buf.Len() < ChannelIDDataSize+1 {
-			return nil
+			return
 		}
 		done := false
 		var f Frame
 		if err := (&f).UnmarshalBinary(buf); err == io.EOF {
 			done = true
 		} else if err != nil {
-			return fmt.Errorf("failed to unmarshal a frame: %w", err)
-
+			ib.log.Warn("malformed frame: %w", err)
+			return
 		}
 
-		// stop reading and ignore remaining data if we encounter a zeroed ID
+		// stop reading and ignore remaining data if we encounter a zeroed ID,
+		// this happens when there is zero padding at the end.
 		if f.ID == (ChannelID{}) {
-			ib.log.Info("empty channel ID")
-			return nil
+			ib.log.Trace("empty channel ID")
+			return
 		}
 
 		// check if the channel is not timed out
 		if f.ID.Time+ib.cfg.ChannelTimeout < ib.progress.Origin.Time {
-			ib.log.Info("channel is timed out, ignore frame", "channel", f.ID, "id_time", f.ID.Time, "frame", f.FrameNumber)
+			ib.log.Warn("channel is timed out, ignore frame", "channel", f.ID, "id_time", f.ID.Time, "frame", f.FrameNumber)
 			if done {
-				return nil
+				return
 			}
 			continue
 		}
 		// check if the channel is not included too soon (otherwise timeouts wouldn't be effective)
 		if f.ID.Time > ib.progress.Origin.Time {
-			ib.log.Info("channel claims to be from the future, ignore frame", "channel", f.ID, "id_time", f.ID.Time, "frame", f.FrameNumber)
+			ib.log.Warn("channel claims to be from the future, ignore frame", "channel", f.ID, "id_time", f.ID.Time, "frame", f.FrameNumber)
 			if done {
-				return nil
+				return
 			}
 			continue
 		}
@@ -137,17 +137,17 @@ func (ib *ChannelBank) IngestData(data []byte) error {
 			ib.channelQueue = append(ib.channelQueue, f.ID)
 		}
 
-		ib.log.Debug("ingesting frame", "channel", f.ID, "frame_number", f.FrameNumber, "length", len(f.Data))
+		ib.log.Trace("ingesting frame", "channel", f.ID, "frame_number", f.FrameNumber, "length", len(f.Data))
 		if err := currentCh.IngestData(uint64(f.FrameNumber), f.IsLast, f.Data); err != nil {
-			ib.log.Debug("failed to ingest frame into channel", "channel", f.ID, "frame_number", f.FrameNumber, "err", err)
+			ib.log.Warn("failed to ingest frame into channel", "channel", f.ID, "frame_number", f.FrameNumber, "err", err)
 			if done {
-				return nil
+				return
 			}
 			continue
 		}
 
 		if done {
-			return nil
+			return
 		}
 	}
 }
@@ -221,10 +221,7 @@ func (ib *ChannelBank) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error
 	// go back in history if we are not distant enough from the next stage
 	parent, err := l1Fetcher.L1BlockRefByHash(ctx, ib.progress.Origin.ParentHash)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to find channel bank block, failed to retrieve L1 reference: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to find channel bank block, failed to retrieve L1 reference: %w", err))
 	}
 	ib.progress.Origin = parent
 	return nil
diff --git a/op-node/rollup/derive/channel_bank_test.go b/op-node/rollup/derive/channel_bank_test.go
index 3f9836d5295b7..cc32d523fc470 100644
--- a/op-node/rollup/derive/channel_bank_test.go
+++ b/op-node/rollup/derive/channel_bank_test.go
@@ -118,8 +118,9 @@ func (tf testFrame) ToFrame() Frame {
 }
 
 func (bt *bankTestSetup) ingestData(data []byte) {
-	require.NoError(bt.t, bt.cb.IngestData(data))
+	bt.cb.IngestData(data)
 }
+
 func (bt *bankTestSetup) ingestFrames(frames ...testFrame) {
 	data := new(bytes.Buffer)
 	data.WriteByte(DerivationVersion0)
diff --git a/op-node/rollup/derive/channel_in_reader.go b/op-node/rollup/derive/channel_in_reader.go
index 2e13362b62be7..fe53caea828c7 100644
--- a/op-node/rollup/derive/channel_in_reader.go
+++ b/op-node/rollup/derive/channel_in_reader.go
@@ -19,7 +19,7 @@ type zlibReader interface {
 
 type BatchQueueStage interface {
 	StageProgress
-	AddBatch(batch *BatchData) error
+	AddBatch(batch *BatchData)
 }
 
 type ChannelInReader struct {
@@ -115,7 +115,8 @@ func (cr *ChannelInReader) Step(ctx context.Context, outer Progress) error {
 		cr.NextChannel()
 		return nil
 	}
-	return cr.next.AddBatch(&batch)
+	cr.next.AddBatch(&batch)
+	return nil
 }
 
 func (cr *ChannelInReader) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error {
diff --git a/op-node/rollup/derive/engine_queue.go b/op-node/rollup/derive/engine_queue.go
index f18fceed97a4f..0b563a7a1bba9 100644
--- a/op-node/rollup/derive/engine_queue.go
+++ b/op-node/rollup/derive/engine_queue.go
@@ -163,33 +163,21 @@ func (eq *EngineQueue) tryNextUnsafePayload(ctx context.Context) error {
 	}
 	fcRes, err := eq.engine.ForkchoiceUpdate(ctx, &fc, nil)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to update forkchoice to prepare for new unsafe payload: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to update forkchoice to prepare for new unsafe payload: %v", err))
 	}
 	if fcRes.PayloadStatus.Status != eth.ExecutionValid {
 		eq.unsafePayloads = eq.unsafePayloads[1:]
-		return NewTemporaryError(
-			nil,
-			fmt.Sprintf("cannot prepare unsafe chain for new payload: new - %v; parent: %v; err: %v",
-				first.ID(), first.ParentID(), eth.ForkchoiceUpdateErr(fcRes.PayloadStatus)),
-		)
+		return NewTemporaryError(fmt.Errorf("cannot prepare unsafe chain for new payload: new - %v; parent: %v; err: %v",
+			first.ID(), first.ParentID(), eth.ForkchoiceUpdateErr(fcRes.PayloadStatus)))
 	}
 	status, err := eq.engine.NewPayload(ctx, first)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to update insert payload: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to update insert payload: %v", err))
 	}
 	if status.Status != eth.ExecutionValid {
 		eq.unsafePayloads = eq.unsafePayloads[1:]
-		return NewTemporaryError(
-			nil,
-			fmt.Sprintf("cannot process unsafe payload: new - %v; parent: %v; err: %v",
-				first.ID(), first.ParentID(), eth.ForkchoiceUpdateErr(fcRes.PayloadStatus)),
-		)
+		return NewTemporaryError(fmt.Errorf("cannot process unsafe payload: new - %v; parent: %v; err: %v",
+			first.ID(), first.ParentID(), eth.ForkchoiceUpdateErr(fcRes.PayloadStatus)))
 	}
 	eq.unsafeHead = ref
 	eq.unsafePayloads = eq.unsafePayloads[1:]
@@ -220,10 +208,7 @@ func (eq *EngineQueue) consolidateNextSafeAttributes(ctx context.Context) error
 
 	payload, err := eq.engine.PayloadByNumber(ctx, eq.safeHead.Number+1)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to get existing unsafe payload to compare against derived attributes from L1: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to get existing unsafe payload to compare against derived attributes from L1: %v", err))
 	}
 	if err := AttributesMatchBlock(eq.safeAttributes[0], eq.safeHead.Hash, payload); err != nil {
 		eq.log.Warn("L2 reorg: existing unsafe block does not match derived attributes from L1", "err", err)
@@ -232,10 +217,7 @@ func (eq *EngineQueue) consolidateNextSafeAttributes(ctx context.Context) error
 	}
 	ref, err := PayloadToBlockRef(payload, &eq.cfg.Genesis)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to decode L2 block ref from payload: %v", err),
-		)
+		return NewResetError(fmt.Errorf("failed to decode L2 block ref from payload: %v", err))
 	}
 	eq.safeHead = ref
 	// unsafe head stays the same, we did not reorg the chain.
@@ -259,10 +241,7 @@ func (eq *EngineQueue) forceNextSafeAttributes(ctx context.Context) error {
 	payload, rpcErr, payloadErr := InsertHeadBlock(ctx, eq.log, eq.engine, fc, attrs, true)
 	if rpcErr != nil {
 		// RPC errors are recoverable, we can retry the buffered payload attributes later.
-		return NewTemporaryError(
-			rpcErr,
-			fmt.Sprintf("failed to insert new block: %v", rpcErr),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to insert new block: %v", rpcErr))
 	}
 	if payloadErr != nil {
 		eq.log.Warn("could not process payload derived from L1 data", "err", payloadErr)
@@ -279,14 +258,11 @@ func (eq *EngineQueue) forceNextSafeAttributes(ctx context.Context) error {
 			eq.safeAttributes[0].Transactions = deposits
 			return nil
 		}
-		return NewCriticalError(payloadErr, "failed to process block with only deposit transactions")
+		return NewCriticalError(fmt.Errorf("failed to process block with only deposit transactions: %w", payloadErr))
 	}
 	ref, err := PayloadToBlockRef(payload, &eq.cfg.Genesis)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to decode L2 block ref from payload: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to decode L2 block ref from payload: %v", err))
 	}
 	eq.safeHead = ref
 	eq.unsafeHead = ref
@@ -299,31 +275,21 @@ func (eq *EngineQueue) forceNextSafeAttributes(ctx context.Context) error {
 // ResetStep Walks the L2 chain backwards until it finds an L2 block whose L1 origin is canonical.
 // The unsafe head is set to the head of the L2 chain, unless the existing safe head is not canonical.
 func (eq *EngineQueue) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error {
-
 	l2Head, err := eq.engine.L2BlockRefHead(ctx)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to find the L2 Head block: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to find the L2 Head block: %w", err))
 	}
 	unsafe, safe, err := sync.FindL2Heads(ctx, l2Head, eq.cfg.SeqWindowSize, l1Fetcher, eq.engine, &eq.cfg.Genesis)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to find the L2 Heads to start from: %v", err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to find the L2 Heads to start from: %w", err))
 	}
 	l1Origin, err := l1Fetcher.L1BlockRefByHash(ctx, safe.L1Origin.Hash)
 	if err != nil {
-		return NewTemporaryError(
-			err,
-			fmt.Sprintf("failed to fetch the new L1 progress: origin: %v; err: %v", safe.L1Origin, err),
-		)
+		return NewTemporaryError(fmt.Errorf("failed to fetch the new L1 progress: origin: %v; err: %v", safe.L1Origin, err))
 	}
 	if safe.Time < l1Origin.Time {
-		return fmt.Errorf("cannot reset block derivation to start at L2 block %s with time %d older than its L1 origin %s with time %d, time invariant is broken",
-			safe, safe.Time, l1Origin, l1Origin.Time)
+		return NewResetError(fmt.Errorf("cannot reset block derivation to start at L2 block %s with time %d older than its L1 origin %s with time %d, time invariant is broken",
+			safe, safe.Time, l1Origin, l1Origin.Time))
 	}
 	eq.log.Debug("Reset engine queue", "safeHead", safe, "unsafe", unsafe, "safe_timestamp", safe.Time, "unsafe_timestamp", unsafe.Time, "l1Origin", l1Origin)
 	eq.unsafeHead = unsafe
@@ -333,5 +299,4 @@ func (eq *EngineQueue) ResetStep(ctx context.Context, l1Fetcher L1Fetcher) error
 		Closed: false,
 	}
 	return io.EOF
-
 }
diff --git a/op-node/rollup/derive/error.go b/op-node/rollup/derive/error.go
index d3182c67b2f1b..893e0fad1b8a7 100644
--- a/op-node/rollup/derive/error.go
+++ b/op-node/rollup/derive/error.go
@@ -7,6 +7,19 @@ import (
 // Level is the severity level of the error.
 type Level uint
 
+func (lvl Level) String() string {
+	switch lvl {
+	case LevelTemporary:
+		return "temp"
+	case LevelReset:
+		return "reset"
+	case LevelCritical:
+		return "crit"
+	default:
+		return fmt.Sprintf("unknown(%d)", lvl)
+	}
+}
+
 // There are three levels currently, out of which only 2 are being used
 // to classify error by severity. LevelTemporary
 const (
@@ -22,16 +35,15 @@ const (
 // Error is a wrapper for error, description and a severity level.
 type Error struct {
 	err   error
-	desc  string
 	level Level
 }
 
 // Error satisfies the error interface.
 func (e Error) Error() string {
 	if e.err != nil {
-		return fmt.Errorf("%w: %s", e.err, e.desc).Error()
+		return fmt.Sprintf("%s: %v", e.level, e.err)
 	}
-	return e.desc
+	return e.level.String()
 }
 
 // Unwrap satisfies the Is/As interface.
@@ -52,43 +64,30 @@ func (e Error) Is(target error) bool {
 }
 
 // NewError returns a custom Error.
-func NewError(err error, desc string, level Level) error {
+func NewError(err error, level Level) error {
 	return Error{
 		err:   err,
-		desc:  desc,
 		level: level,
 	}
 }
 
 // NewTemporaryError returns a temporary error.
-func NewTemporaryError(err error, desc string) error {
-	return NewError(
-		err,
-		desc,
-		LevelTemporary,
-	)
+func NewTemporaryError(err error) error {
+	return NewError(err, LevelTemporary)
 }
 
 // NewResetError returns a pipeline reset error.
-func NewResetError(err error, desc string) error {
-	return NewError(
-		err,
-		desc,
-		LevelReset,
-	)
+func NewResetError(err error) error {
+	return NewError(err, LevelReset)
 }
 
 // NewCriticalError returns a critical error.
-func NewCriticalError(err error, desc string) error {
-	return NewError(
-		err,
-		desc,
-		LevelCritical,
-	)
+func NewCriticalError(err error) error {
+	return NewError(err, LevelCritical)
 }
 
 // Sentinel errors, use these to get the severity of errors by calling
 // errors.Is(err, ErrTemporary) for example.
-var ErrTemporary = NewTemporaryError(nil, "temporary error")
-var ErrReset = NewResetError(nil, "pipeline reset error")
-var ErrCritical = NewCriticalError(nil, "critical error")
+var ErrTemporary = NewTemporaryError(nil)
+var ErrReset = NewResetError(nil)
+var ErrCritical = NewCriticalError(nil)
diff --git a/op-node/rollup/derive/l1_retrieval.go b/op-node/rollup/derive/l1_retrieval.go
index 9b007cced9dec..49bcf9a3fe52e 100644
--- a/op-node/rollup/derive/l1_retrieval.go
+++ b/op-node/rollup/derive/l1_retrieval.go
@@ -24,7 +24,7 @@ type DataAvailabilitySource interface {
 
 type L1SourceOutput interface {
 	StageProgress
-	IngestData(data []byte) error
+	IngestData(data []byte)
 }
 
 type L1Retrieval struct {
@@ -66,10 +66,7 @@ func (l1r *L1Retrieval) Step(ctx context.Context, outer Progress) error {
 	if l1r.datas == nil {
 		datas, err := l1r.dataSrc.OpenData(ctx, l1r.progress.Origin.ID())
 		if err != nil {
-			return NewTemporaryError(
-				err,
-				fmt.Sprintf("can't fetch L1 data: %v, %v", l1r.progress.Origin, err),
-			)
+			return NewTemporaryError(fmt.Errorf("can't fetch L1 data: %v: %w", l1r.progress.Origin, err))
 		}
 		l1r.datas = datas
 		return nil
@@ -79,25 +76,21 @@ func (l1r *L1Retrieval) Step(ctx context.Context, outer Progress) error {
 	if l1r.data == nil {
 		l1r.log.Debug("fetching next piece of data")
 		data, err := l1r.datas.Next(ctx)
-		if err != nil && err == ctx.Err() {
-			l1r.log.Warn("context to retrieve next L1 data failed", "err", err)
-			return nil
-		} else if err == io.EOF {
+		if err == io.EOF {
 			l1r.progress.Closed = true
 			l1r.datas = nil
 			return io.EOF
 		} else if err != nil {
-			return err
+			return NewTemporaryError(fmt.Errorf("context to retrieve next L1 data failed: %w", err))
 		} else {
 			l1r.data = data
 			return nil
 		}
 	}
 
-	// try to flush the data to next stage
-	if err := l1r.next.IngestData(l1r.data); err != nil {
-		return err
-	}
+	// flush the data to next stage
+	l1r.next.IngestData(l1r.data)
+	// and nil the data, the next step will retrieve the next data
 	l1r.data = nil
 	return nil
 }
diff --git a/op-node/rollup/derive/l1_retrieval_test.go b/op-node/rollup/derive/l1_retrieval_test.go
index 60583926a7715..efd592f77fd2b 100644
--- a/op-node/rollup/derive/l1_retrieval_test.go
+++ b/op-node/rollup/derive/l1_retrieval_test.go
@@ -32,13 +32,12 @@ type MockIngestData struct {
 	MockOriginStage
 }
 
-func (im *MockIngestData) IngestData(data []byte) error {
-	out := im.Mock.MethodCalled("IngestData", data)
-	return *out[0].(*error)
+func (im *MockIngestData) IngestData(data []byte) {
+	im.Mock.MethodCalled("IngestData", data)
 }
 
-func (im *MockIngestData) ExpectIngestData(data []byte, err error) {
-	im.Mock.On("IngestData", data).Return(&err)
+func (im *MockIngestData) ExpectIngestData(data []byte) {
+	im.Mock.On("IngestData", data).Return()
 }
 
 var _ L1SourceOutput = (*MockIngestData)(nil)
@@ -58,8 +57,8 @@ func TestL1Retrieval_Step(t *testing.T) {
 	// mock some L1 data to open for the origin that is opened by the outer stage
 	dataSrc.ExpectOpenData(outer.Origin.ID(), iter, nil)
 
-	next.ExpectIngestData(a, nil)
-	next.ExpectIngestData(b, nil)
+	next.ExpectIngestData(a)
+	next.ExpectIngestData(b)
 
 	defer dataSrc.AssertExpectations(t)
 	defer next.AssertExpectations(t)
diff --git a/op-node/rollup/derive/l1_traversal.go b/op-node/rollup/derive/l1_traversal.go
index 841038268abf9..f58f4de903465 100644
--- a/op-node/rollup/derive/l1_traversal.go
+++ b/op-node/rollup/derive/l1_traversal.go
@@ -52,11 +52,10 @@ func (l1t *L1Traversal) Step(ctx context.Context, outer Progress) error {
 		l1t.log.Debug("can't find next L1 block info (yet)", "number", origin.Number+1, "origin", origin)
 		return io.EOF
 	} else if err != nil {
-		l1t.log.Warn("failed to find L1 block info by number", "number", origin.Number+1, "origin", origin, "err", err)
-		return nil // nil, don't make the pipeline restart if the RPC fails
+		return NewTemporaryError(fmt.Errorf("failed to find L1 block info by number, at origin %s next %d: %w", origin, origin.Number+1, err))
 	}
 	if l1t.progress.Origin.Hash != nextL1Origin.ParentHash {
-		return NewResetError(ReorgErr, fmt.Sprintf("detected L1 reorg from %s to %s", l1t.progress.Origin, nextL1Origin))
+		return NewResetError(fmt.Errorf("detected L1 reorg from %s to %s with conflicting parent %s", l1t.progress.Origin, nextL1Origin, nextL1Origin.ParentID()))
 	}
 	l1t.progress.Origin = nextL1Origin
 	l1t.progress.Closed = false
diff --git a/op-node/rollup/derive/l1_traversal_test.go b/op-node/rollup/derive/l1_traversal_test.go
index ffc05c7761fbc..c88a2d5bec728 100644
--- a/op-node/rollup/derive/l1_traversal_test.go
+++ b/op-node/rollup/derive/l1_traversal_test.go
@@ -47,9 +47,10 @@ func TestL1Traversal_Step(t *testing.T) {
 	require.Equal(t, a, tr.Progress().Origin, "stage needs to adopt the origin of next stage on reset")
 	require.False(t, tr.Progress().Closed, "stage needs to be open after reset")
 
+	require.ErrorIs(t, RepeatStep(t, tr.Step, Progress{}, 10), ErrTemporary, "expected temporary error because of RPC mock fail")
 	require.NoError(t, RepeatStep(t, tr.Step, Progress{}, 10))
 	require.Equal(t, c, tr.Progress().Origin, "expected to be stuck on ethereum.NotFound on d")
 	require.NoError(t, RepeatStep(t, tr.Step, Progress{}, 1))
 	require.Equal(t, c, tr.Progress().Origin, "expected to be stuck again, should get the EOF within 1 step")
-	require.ErrorIs(t, RepeatStep(t, tr.Step, Progress{}, 10), ReorgErr, "completed pipeline, until L1 input f that causes a reorg")
+	require.ErrorIs(t, RepeatStep(t, tr.Step, Progress{}, 10), ErrReset, "completed pipeline, until L1 input f that causes a reorg")
 }
diff --git a/op-node/rollup/derive/progress.go b/op-node/rollup/derive/progress.go
index 862ef18686f3c..b6915b998548b 100644
--- a/op-node/rollup/derive/progress.go
+++ b/op-node/rollup/derive/progress.go
@@ -1,14 +1,11 @@
 package derive
 
 import (
-	"errors"
 	"fmt"
 
 	"github.com/ethereum-optimism/optimism/op-node/eth"
 )
 
-var ReorgErr = errors.New("reorg")
-
 // Progress represents the progress of a derivation stage:
 // the input L1 block that is being processed, and whether it's fully processed yet.
 type Progress struct {
@@ -24,12 +21,12 @@ func (pr *Progress) Update(outer Progress) (changed bool, err error) {
 	if pr.Closed {
 		if outer.Closed {
 			if pr.Origin.ID() != outer.Origin.ID() {
-				return true, NewResetError(ReorgErr, fmt.Sprintf("outer stage changed origin from %s to %s without opening it", pr.Origin, outer.Origin))
+				return true, NewResetError(fmt.Errorf("outer stage changed origin from %s to %s without opening it", pr.Origin, outer.Origin))
 			}
 			return false, nil
 		} else {
 			if pr.Origin.Hash != outer.Origin.ParentHash {
-				return true, NewResetError(ReorgErr, fmt.Sprintf("detected internal pipeline reorg of L1 origin data from %s to %s", pr.Origin, outer.Origin))
+				return true, NewResetError(fmt.Errorf("detected internal pipeline reorg of L1 origin data from %s to %s", pr.Origin, outer.Origin))
 			}
 			pr.Origin = outer.Origin
 			pr.Closed = false
@@ -37,7 +34,7 @@ func (pr *Progress) Update(outer Progress) (changed bool, err error) {
 		}
 	} else {
 		if pr.Origin.ID() != outer.Origin.ID() {
-			return true, NewResetError(ReorgErr, fmt.Sprintf("outer stage changed origin from %s to %s before closing it", pr.Origin, outer.Origin))
+			return true, NewResetError(fmt.Errorf("outer stage changed origin from %s to %s before closing it", pr.Origin, outer.Origin))
 		}
 		if outer.Closed {
 			pr.Closed = true