# ANR PIPELINE CO — Notice of Probable Violation **Citation:** CPF 320171004 **Type / status:** enforcement / historical **Agency:** Pipeline and Hazardous Materials Safety Administration **Effective:** Not stated **Published:** 2017-03-16 CLOSED notice of probable violation citing 192.225(a), 192.481(b), 192.707(d)(2), 192.709(c). ## Document text Notice of Probable Violation involving ANR PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.225(a), 192.481(b), 192.707(d)(2), 192.709(c). The case was opened on 2017-03-16 and is reported as closed as of 2017-11-16. Proposed civil penalty: $46,600. Assessed civil penalty: $46,600. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 320171004_Closure Letter_11162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Closure%20Letter_11162017.pdf 320171004_Closure Letter_11162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Closure%20Letter_11162017_text.pdf 320171004_Final Order_09152017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Final%20Order_09152017.pdf 320171004_Final Order_09152017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Final%20Order_09152017_text.pdf 320171004_NOPV PCO PCP_03162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_NOPV%20PCO%20PCP_03162017.pdf 320171004_NOPV PCO PCP_03162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_NOPV%20PCO%20PCP_03162017_text.pdf 320171004_NOPV PCO PCP_03162017_text.pdf NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT REQUESTED March 16, 2017 Mr. Stanley Chapman Senior Vice President and General Manager ANR Pipeline Company / TransCanada 700 Louisiana Street Houston, TX 77002 CPF 3-2017-1004 Dear Mr. Chapman: From July 20, 2015 to December 10, 2015, representatives of the Michigan Public Service Commission (MI-PSC) acting as an interstate agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code inspected your records and facilities at multiple locations in Michigan. As a result of the inspection, it is alleged that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation(s) are: 1. §192.225 Welding Procedures (a) Welding must be performed by a qualified welder or welding operator in accordance with welding procedures qualified under section 5, section 12, or Appendix A of API Std 1104 (incorporated by reference, see §192.7) or section IX ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see §192.7), to produce welds which meet the requirements of this subpart. The quality of the test welds used to qualify welding procedures must be determined by destructive testing in accordance with the referenced welding standard(s). In 2013, ANR Pipeline Company (ANR) did not use properly qualified and applicable welding procedures during remedial work on the ANR Lincoln Storage Field Line - North Header and the Goodwell Storage Field. ANR utilized welding procedure X60-0-GW-01 when they made repairs at 8 locations; specifically, Remediation Digs D, E, F, G, L, M, N in Lincoln, and Dig K in Goodwell. Welding procedure X60-0-GW-01 was developed from four previous API 1104 procedures: Plus-03-WPS, Plus-04-WPS, Plus-05-WPS, and Plus-06-WPS. Upon review of the qualification records for procedure X60-0-GW-01, it was noted that the range of the travel speeds in the new procedure did not meet the travel speed specifications in the four predecessor procedures. Per API Standard 1104, travel speed is an essential variable which requires requalification of the welding procedure if that variable is changed. No additional procedure qualification was completed for X60-0-GW-01 prior to the welding performed during the remediation project. Additionally, ANR did not use the correct welding procedure for the repairs made at Dig “K” in the Goodwell Storage field. In 2013, ANR was doing some remediation work in the Goodwell Storage Field which involved the welding of Grade X52 (existing) pipe and Grade X70 (replacement) pipe. Welding Procedure X60-0-GW-01 and repair procedures X60-08-RP-04 and X60-8-RP-05 (which allow welding of pipe X60 and below) were used to complete the tie-in welds 8 and 9 for Dig K. 2. §192.707 Line markers for mains and transmission lines. (d) Marker warning. The following must be written legibly on a background of sharply contrasting color on each line marker: (2) The name of the operator and telephone number (including area code) where the operator can be reached at all times. ANR’s line marker did not have the correct name or a 24-hour telephone number on a line marker where they could be reached at all times. During the field observation, it was noted that the pipeline marker on the 20-inch 338 Line (Covert Lateral) did not contain the current name of the operator or the telephone number as required by 192.707(d)(2) where the operator can be reached at all times. The name of the operator on the line marker was El Paso. The phone number 1-800-231-2800 on the marker directs the caller to El Paso who then provides the phone number for TransCanada to the caller. 2 3. 4. §192.709 Transmission lines: Record keeping. Each operator shall maintain the following records for transmission line for the periods specified: (c) A record of each patrol, survey, inspection, and test required by subparts L and M of this part must be retained for at least 5 years or until the next patrol, survey, inspection, or test is completed, whichever is longer. ANR did not document the inspection of overpressure protection equipment (pressure control valve (PCV) PCV-5017) for the interconnect between Cold Springs 1 Compressor Station (CS-1) and Cold Springs 12 Compressor Station (CS-12) for 2014-2015. Inspection and testing of overpressure protection is required in Subpart M; therefore, a record of those inspections and tests is required. There is a connection from CS-1 to CS-12 that has a pressure control valve designated as PCV-5017. This PCV is controlled by pressure switch #5017, which limits the maximum allowable operating pressure (MAOP) of the connection between CS-1 and CS-12 [from an MAOP of 1100 psig (CS-1) to an MAOP of 1050 psig (CS-12)]. ANR stated that this device was inspected annually, but was not considered to be part of the "DOT" inspections for either station and therefore, was not documented. §192.481 Atmospheric corrosion control: Monitoring. (b) During inspections the operator must give particular attention to pipe at soil-to- air interfaces, under thermal insulation, under disbonded coatings, at pipe supports, in splash zones, at deck penetrations, and in spans over water. At the Bridgman Compressor station, ANR personnel did not inspect for atmospheric corrosion at pipe supports and at soil-to-air interface locations. During the October 6-7, 2015 MI-PSC field evaluation of the Bridgman Compressor station, significant atmospheric corrosion was found on the pipe at a soil-to-air interface near the northeast corner of the station and above a pipe support near the center of the station. In 2013 and 2014, ANR conducted atmospheric corrosion inspections for the Bridgman compressor station which did not identify any atmospheric corrosion at these locations. Additionally, it was noted by MI-PSC that the pipeline support near the center of the station could not be lowered to allow ANR field personnel to properly inspect and address the pipe above the support. 3 Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a related series of violations. For violations occurring between January 4, 2012 to August 1, 2016, the maximum penalty may not exceed $200.000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty as follows: Item number PENALTY 4 $46,600 Warning Items With respect to item(s) one, two, and three, we have reviewed the circumstances and supporting documents involved in this case and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to promptly correct these item(s). Failure to do so may result in additional enforcement action. Proposed Compliance Order With respect to item four pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to ANR Pipeline Company. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed 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. All material you submit in response to this enforcement action may be 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). 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 a Final Order.4 In your correspondence on this matter, please refer to CPF 3-2017-1004 and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Allan C. Beshore Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Enforcement Proceedings cc: Mr. Vern Meier Vice President – Pipeline Safety and Compliance ANR Pipeline Company / TransCanada 700 Louisiana Street Houston, TX 77002 Mr. Lee Romack Manager – US Regulatory Compliance ANR Pipeline Company / TransCanada 700 Louisiana Street Houston, TX 77002 5 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to ANR Pipeline Company a Compliance Order incorporating the following remedial requirements to ensure the compliance of ANR Pipeline Company with the pipeline safety regulations: 1. 2. 3. In regard to Item Number four of the Notice pertaining to the atmospheric corrosion inspection at Bridgman Compressor Station, ANR must re-survey the Bridgman Compressor. After the re-survey, ANR must provide PHMSA the operator qualification records of the personnel conducting the re-survey, results of those surveys and a remedial action list with a time frame. The re-survey of the Bridgman Compressor Station must be completed within 30 days of the date of the Final Order. The submission of the results of the re- survey, the operator qualification records of the personnel that performed the re-survey, and the time line for repairs must be submitted within 60 days of the date of the Final Order. It is requested (not mandated) that ANR Pipeline Company maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Allan C. Beshore, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 6 320171004_Closure Letter_11162017_text.pdf CERTIFIED MAIL - RETURN RECEIPT REQUESTED November 16, 2017 Mr. Stanley Chapman Senior Vice President and General Manager ANR Pipeline Company / TransCanada 700 Louisiana Street Houston, TX 77002 CPF 3-2017-1004 Dear Mr. Chapman: On September 15, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to TransCanada Corporation a Final Order (Order) in the above referenced case. This Order included a Compliance Order and Civil Penalty assessment. On November 14, 2017, PHMSA received the documentation required by Item 2 of the Compliance Order, summarizing the operator qualification records and the completion of the atmospheric corrosion surveys of your facilities. Based on our review of the documentation you provided, and confirmation of payment of the civil penalty, it has been determined that you have complied with the terms of this Order. Accordingly, this case is now closed and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Allan C. Beshore Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration 320171004_Final Order_09152017_text.pdf September 15, 2017 Mr. Russell K. Girling President & CEO TransCanada Corporation 450 – 1 St. SW Calgary, Alberta, Canada T2P 5H1 Re: CPF No. 3-2017-1004 Dear Mr. Girling Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation, assesses a civil penalty of $46,600, and specifies actions that need to be taken by ANR Pipeline Company, a subsidiary of TransCanada, to comply with the pipeline safety regulations. This is to acknowledge receipt of payment of the full penalty amount, by certified check, dated April 18, 2017. When the terms of the compliance order are completed, as determined by the Director, Central Region, this enforcement action will be closed. Service of the Final Order by certified mail is effective upon the date of mailing as provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure cc: Mr. Allan C. Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA Lee Romack, Manager, U.S. Regulatory Compliance, TransCanada, via email at lee_romack@transcanada.com CERTIFIED MAIL - RETURN RECEIPT REQUESTED U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 _________________________________________ In the Matter of ) ANR Pipeline Company, ) CPF No. 3-2017-1004 a subsidiary of TransCanada Corporation, ) ) ) ) Respondent. ) _________________________________________ ) FINAL ORDER From July 20, 2015, through December 10, 2015, pursuant to 49 U.S.C. § 60117, representatives of the Michigan Public Service Commission (MI-PSC), acting as interstate agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of ANR Pipeline Company (ANR or Respondent) in multiple locations in Michigan. ANR operates approximately 10,600 miles of natural gas pipeline throughout the Midwest.1 As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated March 16, 2017, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that ANR had violated 49 C.F.R. § 192.481(b) and proposed assessing a civil penalty of $46,600 for the alleged violation. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violation and also contained several warning items, advising the operator to correct the probable violations or face possible enforcement action. ANR responded to the Notice by email dated April 17, 2017 (Response). The company did not contest the allegation of violation and paid the proposed civil penalty of $46,600. In accordance with 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate Administrator to make a finding of violation and to issue this Final Order. FINDING OF VIOLATION In its Response, ANR did not contest the allegation in the Notice that it violated 49 C.F.R. Part 192, as follows: 1 ANR’s website, available at https://www.anrpl.com/company_info/ (last accessed June 15, 2017). CPF No. 3-2017-1004 Page 2 Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.481(b), which states: § 192.481 Atmospheric corrosion control: Monitoring. (a) . . . (b) During inspections the operator must give particular attention to pipe at soil-to-air interfaces, under thermal insulation, under disbanded coatings, at pipe supports, in splash zones, at deck penetrations, and in spans over water. The Notice alleged that Respondent violated 49 C.F.R. § 192.481(b) by failing to inspect its pipeline facilities for atmospheric corrosion at pipe supports and at soil-to-air interface locations. Specifically, the Notice alleged that, despite ANR conducting atmospheric corrosion inspections for the Bridgman Compressor Station in 2013 and 2014 that did not identify atmospheric corrosion, the MI-PSC inspection in 2015 revealed significant atmospheric corrosion. The corrosion was found on the pipe at a soil-to-air interface near the northeast corner of the Bridgman Compressor Station and above a pipe support near the center of the station. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.481(b) by failing to perform atmospheric corrosion monitoring on its pipeline facilities that included inspections with particular attention given to pipe at soil-to-air interfaces and at pipe supports. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.2 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $46,600 for the violation cited above. Item 4: The Notice proposed a civil penalty of $46,600 for Respondent’s violation of 49 C.F.R. § 192.481(b), for failing to perform atmospheric corrosion monitoring that included inspections with particular attention given to pipe at soil-to-air interfaces and at pipe supports. ANR neither 2 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017). CPF No. 3-2017-1004 Page 3 contested the allegation nor presented any evidence or argument justifying a reduction in or elimination of the proposed penalty. ANR’s failure to take appropriate action to comply with a requirement that was clearly applicable caused pipeline safety to be significantly compromised in areas that are not in an HCA or an HCA “could affect” segment. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $46,600 for violation of 49 C.F.R. § 192.481(b). In summary, having reviewed the record and considered the assessment criteria for the Item cited above, I assess Respondent a total civil penalty of $46,600, which has already been paid by Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 4 in the Notice for violation of 49 C.F.R. § 192.481(b). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 192.481(b) (Item 4), Respondent must re-survey the Bridgman Compressor Station within 30 days of the date of this Final Order. After the re-survey and within 60 days of the date of this Final Order, ANR must provide the Director, Central Region, PHMSA, with: (1) the operator qualification records of the personnel who conducted the re-survey; (2) the results of the re-survey; and (3) a remedial action list with a timeline for repairs. It is requested (not mandated) that ANR maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to the Director, Central Region, PHMSA. It is requested that these costs be reported in two categories: (1) total cost associated with preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with replacements, additions, and other changes to pipeline infrastructures. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Failure to comply with this Order may result in the administrative assessment of civil penalties not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. CPF No. 3-2017-1004 Page 4 WARNING ITEMS With respect to Items 1-3, the Notice alleged probable violations of Part 192 but did not propose a civil penalty or compliance order for these items. Therefore, these are considered to be warning items. The warnings were for: 49 C.F.R. § 192.225(a) (Item 1) ─ Respondent’s alleged failure to use properly qualified and applicable welding procedures during remedial work; 49 C.F.R. § 192.707(d)(2) (Item 2) ─ Respondent’s alleged failure to have appropriate line markers for mains and transmission lines; and 49 C.F.R. § 192.709(c) (Item 3) ─ Respondent’s alleged failure to maintain a record of each patrol, survey, inspection, and test required under subparts L and M of Part 192 for at least five years or until the next patrol, survey, inspection, or test is completed, whichever is longer. If OPS finds a violation of any of these items in a subsequent inspection, Respondent may be subject to future enforcement action. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. September 15, 2017 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety ## Provenance - Official: Yes - Source: - Source ID: `phmsa-enforcement` - SHA-256: `69e95e811016174c5dee4cd65c321611e97619fb6c03669894a89d9b216c416b` - Retrieved: 2026-08-20T04:44:44.458Z - Exported: 2026-08-23T14:46:04.034Z - Document slug: `phmsa-enforcement-320171004` ### Source metadata ```json { "cpf": "320171004", "operator": "ANR PIPELINE CO", "region": "Central", "pipelineType": "GAS INTERSTATE ONSHORE", "caseStatus": "CLOSED", "citedSections": [ "192.225(a)", "192.481(b)", "192.707(d)(2)", "192.709(c)" ], "dataAsOf": "08/04/2026 12PM", "caseDataAsOf": "2026-08-04", "attachmentCount": 6, "attachments": [ { "name": "320171004_Closure Letter_11162017.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Closure%20Letter_11162017.pdf", "bytes": 384402, "category": "agency_document" }, { "name": "320171004_Closure Letter_11162017_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Closure%20Letter_11162017_text.pdf", "bytes": 70404, "category": "agency_document" }, { "name": "320171004_Final Order_09152017.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Final%20Order_09152017.pdf", "bytes": 1205268, "category": "agency_document" }, { "name": "320171004_Final Order_09152017_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Final%20Order_09152017_text.pdf", "bytes": 110481, "category": "agency_document" }, { "name": "320171004_NOPV PCO PCP_03162017.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_NOPV%20PCO%20PCP_03162017.pdf", "bytes": 3887404, "category": "agency_document" }, { "name": "320171004_NOPV PCO PCP_03162017_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_NOPV%20PCO%20PCP_03162017_text.pdf", "bytes": 119489, "category": "agency_document" } ], "extractedAgencyDocumentCount": 3, "attachmentPolicy": "Official attachment links are retained. 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