# ONEOK NGL PIPELINE, LLC — Notice of Probable Violation **Citation:** CPF 42021048NOPV **Type / status:** enforcement / historical **Agency:** Pipeline and Hazardous Materials Safety Administration **Effective:** Not stated **Published:** 2021-11-15 CLOSED notice of probable violation citing 195.402(a), 195.402(c)(11), 195.402(c)(13), 195.52(a)(2), 195.52(b). ## Document text Notice of Probable Violation involving ONEOK NGL PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a), 195.402(c)(11), 195.402(c)(13), 195.52(a)(2), 195.52(b). The case was opened on 2021-11-15 and is reported as closed as of 2022-06-22. Proposed civil penalty: $131,800. Assessed civil penalty: $131,800. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 42021048NOPV_Closure Letter_06222022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Closure%20Letter_06222022_(20-180919).pdf 42021048NOPV_Closure Letter_06222022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Closure%20Letter_06222022_(20-180919)_text.pdf 42021048NOPV_Final Order_04252022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Final%20Order_04252022_(20-180919).pdf 42021048NOPV_Final Order_04252022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Final%20Order_04252022_(20-180919)_text.pdf 42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 1) _01142022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Statement%20of%20Issues%20(Part%201)%20_01142022_(20-180919).pdf 42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 2) _01142022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Statement%20of%20Issues%20(Part%202)%20_01142022_(20-180919).pdf 42021048NOPV_Operator Response to Notice_04062022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Operator%20Response%20to%20Notice_04062022_(20-180919).pdf 42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP%20(AMENDED)_03082022_(20-180919).pdf 42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP%20(AMENDED)_03082022_(20-180919)_text.pdf 42021048NOPV_PCO PCP_11152021_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP_11152021_(20-180919).pdf 42021048NOPV_PCO PCP_11152021_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP_11152021_(20-180919)_text.pdf 42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PHC%20Hearing%20Scheduled_02022022_(20-180919).pdf 42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PHC%20Hearing%20Scheduled_02022022_(20-180919)_text.pdf 42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919)_text.pdf February 2, 2022 VIA ELECTRONIC MAIL TO: vince.murchison@pipelinelegal.com and mary.mcdaniel@dot.gov Mr. Vince Murchison Outside Counsel for ONEOK Murchison Law Firm, PLLC 325 North St. Paul Street Suite 7200 Dallas, Texas 75201 Ms. Mary McDaniel Director, Southwest Region Pipeline and Hazardous Materials Safety Administration 8701 South Gessner, Suite 630 Houston, Texas 77074 Re: Notice of Hearing, ONEOK NGL Pipeline, LLC CPF No. 4-2021-048-NOPV Dear Mr. Murchison and Ms. McDaniel: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation, Proposed Compliance Order, and Proposed Civil Penalty issued by the Pipeline and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take place on March 29, 2022, beginning at 9:00 a.m. Central Time. The hearing will be held via videoconference. Videoconference details will be provided prior to the hearing. At least 10 calendar days prior to the hearing (or by March 19, 2022), both parties must submit and exchange any additional written materials they intend to present at the hearing and the name and email address of each attendee. This information should be provided electronically. Materials not submitted by this date may be excluded. If you have any questions, please do not hesitate to contact me. Sincerely, Kristin Baldwin Presiding Official cc: Mr. David Keglovits, Vice President and Associate General Counsel, ONEOK, david.keglovits@oneok.com Ms. Roina Baker, Outside Counsel for ONEOK, Murchison Law Firm, roina.baker@pipelinelegal.com Ms. Elizabeth Nugent, Counsel, Southwest Region, Office of Pipeline Safety, PHMSA, CPF No. 4-2021-048-NOPV Page 2 elizabeth.nugent@dot.gov Ms. Melanie Lampton, Counsel, Southwest Region, Office of Pipeline Safety, PHMSA, melanie.lampton@dot.gov 42021048NOPV_Final Order_04252022_(20-180919)_text.pdf April 25, 2022 VIA ELECTRONIC MAIL TO: scott.schingen@oneok.com Mr. Scott Schingen Senior Vice President, Operations ONEOK NGL Pipeline, LLC 100 West Fifth Street Tulsa, Oklahoma 74103 Re: CPF No. 4-2021-048-NOPV Dear Mr. Schingen: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation, finds that the civil penalty amount of $131,800 has been paid in full, and specifies actions that need to be taken to comply with the pipeline safety regulations. When the terms of the compliance order are completed, as determined by the Director, Southwest Region, this enforcement action will be closed. Service of the Final Order by e-mail is effective upon the date of mailing and acknowledgement of receipt 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 Enclosures (Final Order and NOPV) cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA Mr. Gary Numedahl, Director, DOT Compliance, ONEOK NGL Pipeline, LLC, gary.numedahl@oneok.com CONFIRMATION OF 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 ) ONEOK NGL Pipeline, LLC, ) CPF No. 4-2021-048-NOPV ) ) ) Respondent. ) ____________________________________) FINAL ORDER On March 8, 2022, pursuant to 49 C.F.R. § 190.207(c), the Director, Southwest Region, Office of Pipeline Safety (OPS), issued an Amended Notice of Probable Violation (Amended Notice) to ONEOK NGL Pipeline, LLC (ONEOK) (Respondent). The Amended Notice proposed finding that Respondent violated the pipeline safety regulations in 49 C.F.R. part 195 and proposed a civil penalty of $131,800. The Amended Notice also proposed certain measures to correct the violations. Respondent did not contest the allegations of violation or corrective measures and paid the proposed civil penalty on April 7, 2022. In accordance with § 190.208(a)(1), such payment authorizes the entry of this final order. Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the pipeline safety regulations listed below, as more fully described in the enclosed Amended Notice, which is incorporated by reference: 49 C.F.R. § 195.52(a)(2) (Item 1) ─ Respondent failed to notify the National Response Center at the earliest practicable moment following discovery of a release of hazardous liquid resulting in a fire or explosion not intentionally set by the operator, but no later than one hour after confirmed discovery of a reportable accident. 49 C.F.R. § 195.402(c)(11) (Item 2) ─ Respondent failed to have procedures for utilizing and installing mud plugs as vapor barriers to minimize the likelihood of accidental ignition of vapors; and failed to prepare and follow written procedures for monitoring the lower explosive limit of flammable vapors to minimize the likelihood of accidental ignition in areas near facilities. 49 C.F.R. § 195.402(c)(13) (Item 3) ─ Respondent failed to periodically review the work done by its personnel to determine the effectiveness of its procedures for CPF No. 4-2021-048-NOPV Page 2 minimizing the potential for hazards where the potential exists for the presence of flammable liquids or gases. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is assessed the proposed civil penalty amount of $131,800, which Respondent has already paid in full. Compliance Actions Pursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the actions proposed in the enclosed Notice to correct the violations. 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. Upon completion of ordered actions, Respondent may request that the Director close the case. Failure to comply with this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this order are effective upon service in accordance with 49 C.F.R. § 190.5. April 25, 2022 ___________________________________ _________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety 42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 2) _01142022_(20-180919).pdf PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION WASHINGTON, DC 20590 __________________________________________ § In the matter of: § § ONEOK NGL Pipeline, L.L.C. § CPF No. 4-2021-048-NOPV § Respondent § § STATEMENT OF ISSUES OF ONEOK NGL PIPELINE, L.L.C. TO NOTICE OF PROBABLE VIOLATION, PROPOSED CIVIL PENALTY, AND PROPOSED COMPLIANCE ORDER ONEOK NGL Pipeline, L.L.C. (“Respondent”) submits this Statement of Issues pursuant to 49 C.F.R. § 190.211(b) in connection with its request for a hearing pursuant to 49 C.F.R. § 190.208(a)(4) and (b)(4). By letter dated November 15, 2021, the Pipeline and Hazardous Materials Safety Administration (“PHMSA”) issued to Respondent a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (collectively, the “NOPV”), CPF No. 4-2021-048-NOPV, which was received by Respondent via email on the same date. By letter dated December 1, 2021, the Director, PHMSA Southwest Region, granted an extension of time to respond to the NOPV for an additional 30 days, until January 14, 2022. By letter of even date herewith, Respondent has requested a hearing in this matter, and this Statement of Issues is served therewith. BACKGROUND The subject NOPV relates to the investigation related to an accident which occurred on April 28, 2020, at Respondent’s Eastlake II Pump Station in Eastland County, Texas. In the NOPV, PHMSA alleges three violations of the pipeline safety regulations promulgated at 49 C.F.R. Part 195, proposes to assess civil penalties in connection with all three of the said alleged violations, and proposes to issue a compliance order in connection with two of the said alleged violations, all pursuant to the procedural and enforcement regulations promulgated at 49 C.F.R. Part 190, Subparts A and B. As to such alleged violations, proposed civil penalties and proposed compliance orders, Respondent herein states its issues. Respondent’s Statement of Issues CPF 4-2021-048-NOPV Page 1 THE ALLEGED VIOLATIONS Respondent states below its factual, legal and/or regulatory issues that relate to the alleged violations of the NOPV. The numbered paragraphs below correspond with the numbered Items of the NOPV. Each numbered paragraph begins with a citation to the subject regulation and a summary of the agency’s allegations. 1. 49 C.F.R. § 195.52 (b) – Immediate notice of certain accidents. PHMSA alleges that Respondent failed to notify the National Response Center (NRC) at the earliest practicable moment, following discovery of a release of hazardous liquid resulting in a fire or explosion not intentionally set by the operator, but no later than one hour of “a reportable accidence as defined in § 195.50.” PHMSA further alleges that Response experienced an unintentional release of hazardous liquid which resulted in a flash fire as its Eastland II Pump Station in Eastland County, Texas, on April 28, 2020 at 5:00 p.m. CST. PHMSA finally alleges that Respondent did not report the accident to the NRC until May 1, 2020, at 11:22 p.m. CDT. Respondent does not dispute the allegations stated in the NOPV. 2. 49 C.F.R. § 195.402(c)(11) – Procedural manual for operations, maintenance, and emergencies. PHMSA alleges that Respondent “failed to develop and follow written procedures for tie-in work on its pipeline facilities to include the use of mud plugs and monitoring for the lower explosive limit (LEL), ” which PHMSA claims “are both necessary to maintain safety during normal operation and maintenance activities.” PHMSA specifically alleges that Respondent failed to have procedures “for utilizing and installing mud plugs as vapor barriers to minimize the likelihood of accidental ignition of vapors as required by § 195.402(c)(11).” PHMSA further alleges that, on April 28, 2020, Respondent’s contractor personnel performed tie-in work using a mud plug as a vapor barrier and further alleges that Respondent has no written procedures in its operations and maintenance manual “reflecting the use of mud plugs as a vapor barrier during tie-in work.” PHMSA further alleges that Respondent “failed to prepare and follow written procedures for monitoring LEL of flammable vapors to minimize the likelihood of accidental ignition in areas near facilities identified under paragraph § 195.402(c)(11).” PHMSA specifically alleges that Respondent did not establish procedures for monitoring LEL which PHMSA alleges is an action necessary to minimize the likelihood of accidental ignition of vapors. PHMSA finally alleges that the lack of written procedures, regarding the use of mud plugs and the monitoring of the LEL for operator personnel to follow during tie-in work, resulted in the accident. Respondent disputes and objects to the allegations stated in the NOPV, on the following grounds: Respondent’s Statement of Issues CPF 4-2021-048-NOPV Page 2 a. PHMSA has failed to meet its burden of proof that a violation occurred. b. The alleged violation is not supported by the evidence in the case file. c. The alleged violation is not supported by the relevant facts. d. The NOPV fails to adequately make factual findings or to explain, discuss, or analyze the conclusion that Respondent is in violation of the subject regulation in the manner alleged. e. The NOPV fails to explain its conclusions in a manner that is sufficient to allow Respondent a reasonable opportunity to prepare an adequate defense. f. Given the manner in which the cited regulation is being applied in this alleged violation, PHMSA has failed to provide Respondent, or the regulated community as a whole, fair notice of the agency’s interpretation of the subject regulation. g. PHMSA has failed to provide a rational connection between the facts alleged and the conclusions reached, and, as such, the agency is acting in an arbitrary and capricious manner. h. The content of the PHMSA case file provided to Respondent fails to fulfill the requirements of Section 108 of the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2020; as a result, Respondent is precluded from access to all relevant facts in the agency’s possession and thus is denied a full and fair opportunity to respond to the agency’s allegations. 3. 49 C.F.R. § 195.402(c)(13) – Procedural manual for operations, maintenance, and emergencies. PHMSA alleges that Respondent failed to periodically review the work of operator personnel to determine the effectiveness of its procedures and alleges that Respondent did not take appropriate corrective actions for found deficiencies. Specifically, PHMSA alleges that Respondent failed to periodically review the work of its personnel “to determine the effectiveness of its procedures for minimizing the potential for hazards where the potential exists for the presence of flammable liquids or gases.” PHMSA alleges that Respondent stated, during the investigation, that it had performed the periodic review of its procedures to determine their effectiveness and no deficiencies were identified. PHMSA further alleges that it identified a history of reportable accidents prior to the April 28, 2020 accident which involved accidental ignition of vapors, and, thus, that Respondent’s procedure was deficient. PHMSA finally alleges that, following PHMSA’s investigation, Respondent revised its procedure to address certain deficiencies. Respondent disputes and objects to the allegations stated in the NOPV, on the following grounds: a. PHMSA has failed to meet its burden of proof that a violation occurred. b. The alleged violation is not supported by the evidence in the case file. Respondent’s Statement of Issues CPF 4-2021-048-NOPV Page 3 c. The alleged violation is not supported by the relevant facts. d. The NOPV fails to adequately make factual findings or to explain, discuss, or analyze the conclusion that Respondent is in violation of the subject regulation in the manner alleged. e. The NOPV fails to explain its conclusions in a manner that is sufficient to allow Respondent a reasonable opportunity to prepare an adequate defense. f. Given the manner in which the cited regulation is being applied in this alleged violation, PHMSA has failed to provide Respondent, or the regulated community as a whole, fair notice of the agency’s interpretation of the subject regulation. g. PHMSA has failed to provide a rational connection between the facts alleged and the conclusions reached, and, as such, the agency is acting in an arbitrary and capricious manner. h. PHMSA erroneously supports its allegations with evidence of subsequent remedial measures taken by Respondent. i. The content of the PHMSA case file provided to Respondent fails to fulfill the requirements of Section 108 of the Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2020; as a result, Respondent is precluded from access to all relevant facts in the agency’s possession and thus is denied a full and fair opportunity to respond to the agency’s allegations. THE PROPOSED CIVIL PENALTIES PHMSA proposes a total of $495,047 in civil penalties in connection with alleged violations Item 2 and Item 3, as to each of which Respondent states the following issues: 1. PHMSA has failed to make available to Respondent or to the public, as required by the Administrative Procedure Act, fair notice of the methods and procedures by which PHMSA determines the amount of proposed civil penalties and the amounts eventually assessed. 2. The NOPV and the underlying Pipeline Safety Violation Report fail to establish a sufficient evidentiary basis for, or adequate discussion, explanation, or analysis of, the penalty assessment considerations of 49 C.F.R. § 190.225 in support of the proposed civil penalties, and thus Respondent has no reasonable opportunity to prepare an adequate defense to contest the proposed civil penalties. 3. Respondent objects to the magnitude of the proposed penalties as: unreasonable; disproportional to any of the penalty assessment considerations of 49 C.F.R. § 190.225; unsupported by sufficient evidence or any analysis that applies the penalty assessment considerations; arbitrary, capricious, or otherwise not in accordance with law; and an abuse of discretion. 4. To the extent that the related alleged violation is not supported by substantial evidence, a rational connection between facts found and conclusions drawn, regulation, or law, such proposed civil penalty may not be imposed. Respondent’s Statement of Issues CPF 4-2021-048-NOPV Page 4 THE PROPOSED COMPLIANCE ORDER PHMSA proposes to order Respondent to perform the following actions, as to which Respondent states the following issues: 1. Regarding the alleged violation in Item 2 of the NOPV, develop detailed procedures for (1) the use of mud plugs “for the prevention and mitigation of vapors igniting while performing hot work/tie-ins on its pipeline facilities, ” and (2) “LEL monitoring while performing normal operation and maintenance for the prevention of accident vapor ignition. ” a. The record reflects that Respondent had procedures addressing LEL monitoring on the date of the accident, April 28, 2020. b. To the extent PHMSA is unable ultimately to prove a violation, or any instance of alleged violation, this proposed compliance order cannot be imposed and, therefore, must be withdrawn. c. PHMSA has neither proffered any evidence, made any factual finding, nor provided any explanation, discussion or analysis of the manner in which either the nature of the alleged violations or the public interest warrant issuance of the proposed compliance order; see 49 C.F.R. § 190.217. On those grounds, the proposed compliance order must be withdrawn in its entirety for failure to fulfill a regulatory requirement. 2. Regarding the alleged violation in Item 3 of the NOPV, PHMSA proposes that Respondent conduct a review of certain portions of its Natural Gas Liquids Operations and Maintenance Manual to determine whether “further revisions” are required. a. The proposed compliance order is vague and ambiguous, in that the scope and extent of directed actions are not discernable. As such, PHMSA is acting in an arbitrary and capricious manner, and thus the proposed compliance order cannot be imposed and, therefore, must be withdrawn. b. To the extent PHMSA is unable ultimately to prove a violation, the proposed compliance order cannot be imposed and, therefore, must be withdrawn. c. PHMSA has neither proffered any evidence, made any factual finding, nor provided any explanation, discussion or analysis of the manner in which the alleged violations or the public interest warrant issuance of the proposed compliance order; see 49 C.F.R. § 190.217. On those grounds, this proposed compliance order must be withdrawn in its entirety for failure to fulfill a regulatory requirement. CONCLUSION At the hearing in this matter, Respondent intends to bring forth evidence in the form of documents and/or testimony, as well as to examine the evidence, documents and any testimony Respondent’s Statement of Issues CPF 4-2021-048-NOPV Page 5 presented or introduced by PHMSA. Respondent also will present its arguments in support of the issues stated heretofore. Respondent reserves the right to amend and supplement this Statement of Issues at or before the hearing. COUNSEL FOR RESPONDENT ONEOK NGL PIPELINE, L.L.C. January 14, 2022 William V. Murchison Roina Rivera Baker Texas Bar No. 14682500 Texas Bar No. 24108006 Murchison Law Firm, PLLC Murchison Law Firm, PLLC 325 N. St. Paul Street, Suite 2700 325 N. St. Paul Street, Suite 2700 Dallas, Texas 75201 Dallas, Texas 75201 (214) 716-1923 - Telephone (214) 716-1923 - Telephone (844) 930-0089 - Facsimile (844) 930-0089 - Facsimile Vince.Murchison@PipelineLegal.com Roina.Baker@PipelineLegal.com CPF 4-2021-048-NOPV Respondent's Statement of Issues Page 6 42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 1) _01142022_(20-180919).pdf MURCHISON 325 North St. Paul Street LAW FIRM, PLLC Dallas, Texas 75201 Sulte 2700 PH: 214-716-1923 PIPELINELEGAL.COM January 14, 2022 Ms. Mary L. McDaniel Via Email: Mary. McDaniel@ DOT.gov Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Office of Pipeline Safety 8701 S. Gessner Road, Suite 630 Houston, Texas 77074 Re: ONEOK NGL Pipeline, LLC ("Respondent") Request for Hearing Statement of Issues CPF No. 4-2021-048-NOPV Dear Ms. McDaniel: This letter serves as a request by Respondent for a hearing in response to the referenced Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order dated November 15, 2021 ("NOPV"), which was received by Respondent via email on the same date. Respondent requested an extension of time to respond to the NOPV via email dated November 30, 2021. By letter dated December 1, 2021, the Director, PHMSA Southwest Region ("Director") granted an extension of time to respond to the NOPV until January 14, 2022. As such, this response is timely. As an initial matter, Respondent does not contest Item 1. Pursuant to 49 C.F.R. §§ 190.208(a)(4) and 190.211, Respondent hereby requests a hearing on Item 2 and Item 3 of the NOPV. Respondent has great respect for the work done by the Southwest Region and has worked collaboratively with your office in particular. However, Respondent believes requesting a hearing is necessary at this time. Enclosed herewith please find Respondent's Statement of Issues which it submits pursuant to 49 C.F.R. § 190.211(b). Respondent reserves the right to supplement and/or amend its Statement of Issues at or before the hearing. Respondent requests that the requested hearing be held in-person at the Southwest Region office Houston, Texas. 811 Know what's below. Call before you dig. The Pipeline & Energy Authority MURCHISON Ms. Mary L. McDaniel LAW FIRM, PLLC January 14, 2022 Page 2 Please be advised that Respondent intends to be represented by in-house counsel and outside counsel in connection with the requested hearing. Respondent intends, pursuant to 49 C.F.R. § 190.211(t), to have a court reporter prepare a transcript of the hearing. Respondent will bear all costs of same and will submit a copy of the transcript of same to the case file. Respondent respectfully requests that the Presiding Official assigned to this case forbear the setting of the hearing, for at least 90 days, to allow the parties a reasonable opportunity to commence discussions toward settlement and/or narrowing the issues. Respondent intends to contact your office promptly, and Respondent will work with PHMSA Region counsel to apprise the Presiding Official of progress in said discussions. Thank you for your attention to this matter. Sincerely, Vince Murchison Counsel for Respondent CC: Elizabeth Nugent (Via Email: Elizabeth.Nugent@dot.gov) David E. Keglovits (Via Email: David.Keglovits@oneok.com) Roina Baker (Via Email: Roina. Baker@ Pipelinelegal.com) 811. Know what's below. Call before you dig. The Pipeline & Energy Authority 42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919)_text.pdf AMENDED NOTICE OF PROBABLE VIOLATION, PROPOSED CIVIL PENALTY, and PROPOSED COMPLIANCE ORDER ELECTRONIC MAIL - RETURN RECEIPT REQUESTED March 8, 2022 Scott Schingen Senior Vice President, Operations ONEOK NGL Pipeline, LLC 100 West Fifth Street Tulsa, Oklahoma 74103 CPF 4-2021-048-NOPV Dear Mr. Schingen: From May 1, 2020 through December 2, 2020, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety, pursuant to Chapter 601 of 49 United States Code (U.S.C.), investigated a reportable accident that occurred on April 28, 2020, at ONEOK NGL Pipeline, LLC’s (ONEOK) Eastland II Pump Station in Eastland County, Texas. At approximately 5:00 pm Central Standard Time (CST), an incipient fire occurred while contractor personnel for ONEOK was performing and completing a tie-in weld at the Eastland II Pump Station. The fire self-extinguished with no reported injuries or hospitalizations. An estimated .10 barrels of natural gas liquid was unintentionally released. ONEOK submitted National Response Center (NRC) Report #1276472 on May 1, 2020, as the initial notification of the accident. As a result of the investigation, it is alleged that ONEOK has committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items investigated and the probable violations are: 2 1. § 195.52 Immediate notice of certain accidents. (a) Notice requirements. At the earliest practicable moment following discovery, of a release of the hazardous liquid or carbon dioxide transported resulting in an event described in § 195.50, but no later than one hour after confirmed discovery, the operator of the system must give notice, in accordance with paragraph (b) of this section of any failure that: (1)… (2) Resulted in either a fire or explosion not intentionally set by the operator;... (b) Information required. Each notice required by paragraph (a) of this section must be made to the National Response Center either by telephone to 800-424-8802 (in Washington, DC, 202-267-2675) or electronically at http://www.nrc.uscg.mil and must include the following information: … ONEOK failed to notify the NRC at the earliest practicable moment following discovery of a release of hazardous liquid resulting a fire or explosion not intentionally set by the operator, but no later than one hour of a reportable accident as defined in § 195.50. On April 28, 2020, at approximately 5:00 pm CST, ONEOK experienced an unintentional release of hazardous liquid which resulted in a flash fire at its Eastland II Pump Station in Eastland County, Texas. However, ONEOK did not report the accident to the NRC (#1276472) until May 1, 2020, at 11:22 pm CST, over 67 hours after the accident occurred. 2. § 195.402 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. This manual shall be reviewed at intervals not exceeding 15 months, but at least once each calendar year, and appropriate changes made as necessary to insure that the manual is effective. This manual shall be prepared before initial operations of a pipeline system commence, and appropriate parts shall be kept at locations where operations and maintenance activities are conducted. (b) … (c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1)… (11) Minimizing the likelihood of accidental ignition of vapors in areas near facilities identified under paragraph (c)(4) of this section where the potential exists for the presence of flammable liquids or gases. 3 ONEOK failed to develop and follow written procedures for tie-in work on its pipeline facilities to include the use of mud plugs and monitoring for the lower explosive limit (LEL), which are both necessary to maintain safety during normal operation and maintenance activities. Specifically, ONEOK failed to have procedures for utilizing and installing mud plugs as vapor barriers to minimize the likelihood of accidental ignition of vapors as required by § 195.402(c)(11). On April 28, 2020, ONEOK’s contractor personnel performed tie-in work utilizing a mud plug as a vapor barrier; however, there were no written procedures in ONEOK’s operations and maintenance manual reflecting the use of mud plugs as a vapor barrier during tie-in work. Additionally, ONEOK failed to prepare and follow written procedures for monitoring LEL of flammable vapors to minimize the likelihood of accidental ignition in areas near facilities identified under paragraph § 195.402(c)(11). ONEOK did not establish monitoring procedures of the LEL as a necessary action to minimize the likelihood of accidental ignition of vapors. 3. § 195.402 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. This manual shall be reviewed at intervals not exceeding 15 months, but at least once each calendar year, and appropriate changes made as necessary to insure that the manual is effective. This manual shall be prepared before initial operations of a pipeline system commence, and appropriate parts shall be kept at locations where operations and maintenance activities are conducted. (b)… (c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1)… (13) Periodically reviewing the work done by operator personnel to determine the effectiveness of the procedures used in normal operation and maintenance and taking corrective action where deficiencies are found. ONEOK failed to periodically review the work done by operator personnel to determine the effectiveness of the procedures used in normal operation and maintenance, and to take appropriate corrective actions for found deficiencies. Specifically, ONEOK failed to periodically review the work done by its personnel to determine the effectiveness of its procedures for minimizing the potential for hazards where the potential exists for the presence of flammable liquids or gases. 4 ONEOK's Natural Gas Liquids Operations and Maintenance Manual, PRC1400.000, Section 3, REV 17, Accidental Ignition, 195.402(c)(11) page 35 states, "In areas near pipeline facilities where the potential exists for the presence of flammable liquids or gases, ONEOK will take steps to minimize the likelihood of accidental ignition of vapors." Although ONEOK stated during the investigation that it had performed the periodic review of its procedure to determine its effectiveness and did not identify any deficiencies, PHMSA identified a history of reportable accidents prior to the April 28, 2020 accident that involved accidental ignition of vapors prior, which indicated that the procedure was deficient. A review of ONEOK's previously submitted Form PHMSA F7000.1 Accident Reports identified four previous accidents that involved an accidental ignition of vapors. These include No. 20150445 at Mt. Belvieu, Texas on November 5, 2015; No. 20170376 at Chapman Trap Station, Kansas on October 20, 2017; No. 20180207 at ONEOK Groveton Pump Station, Texas on June 22, 2018; and No. 20180256 at ONEOK Fairfield Pump Station (Site 541), Texas on June 25, 2018. Following PHMSA's investigation, ONEOK made revisions to this procedure to address deficiencies. Proposed Civil Penalty Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related series of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. We have reviewed the circumstances and supporting documentation involved for the above probable violations and recommend that you be preliminarily assessed a civil penalty $131,800 as Item number PENALTY 1 $ 36,200 2 $ 49,000 3 $ 46,600 5 Proposed Compliance Order With respect to Items 2 and 3, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to ONEOK NGL Pipeline, LLC. 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 Enforcement Proceedings. Please refer to this document and note the response options. All material submitted 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). Following the receipt of this Notice, you have 30 days to submit written comments, or request a hearing under 49 CFR § 190.211. 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. If you are responding to this Notice, we propose that you submit your correspondence to my office within 30 days from receipt of this Notice. This period may be extended by written request for good cause. In your correspondence on this matter, please refer to CPF 4-2021-048-NOPV and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Enforcement Proceedings 6 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to ONEOK NGL Pipeline, LLC (ONEOK) a Compliance Order incorporating the following remedial requirements to ensure compliance with the pipeline safety regulations: A. In regards to Item 2 of the Notice pertaining to ONEOK’s failure to develop procedures for (1) the use of mud plugs as an approved company method for the prevention and mitigation of vapors igniting while performing hot work/tie-ins on its pipeline facilities and (2) LEL monitoring while performing normal operation and maintenance for the prevention of accidental vapor ignition, ONEOK must develop detailed procedures for these two areas and submit to the Director, Southwest Region, PHMSA for review within 30 days of receipt of the Final Order. It is requested (not mandated) that ONEOK maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Mary L. McDaniel P.E., Director, Southwest 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. 42021048NOPV_Closure Letter_06222022_(20-180919)_text.pdf ELECTRONIC MAIL June 22, 2022 Scott Schingen Senior Vice President, Operations ONEOK NGL Pipeline, LLC 100 West Fifth Street Tulsa, Oklahoma 74103 CPF 4-2021-048-NOPV Dear Mr. Schingen: On April 25, 022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a Final Order to ONEOK NGL Pipeline, L.L.C (ONEOK) in the above-referenced case. This Final Order included a Compliance Order and a Civil Penalty assessment. Based on our review of the documentation provided by ONEOK, and confirmation of its payment of the assessed Civil Penalty, it has been determined that ONEOK has 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. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration ## Provenance - Official: Yes - Source: - Source ID: `phmsa-enforcement` - SHA-256: `6ab778d2169816c897e725a0028935b4f8e78a5e2d501d55be020b70f8763840` - Retrieved: 2026-08-20T04:44:44.458Z - Exported: 2026-08-22T05:40:06.677Z - Document slug: `phmsa-enforcement-42021048nopv` ### Source metadata ```json { "cpf": "42021048NOPV", "operator": "ONEOK NGL PIPELINE, LLC", "region": "Southwest", "pipelineType": "INTERSTATE LIQUID", "caseStatus": "CLOSED", "citedSections": [ "195.402(a)", "195.402(c)(11)", "195.402(c)(13)", "195.52(a)(2)", "195.52(b)" ], "dataAsOf": "08/04/2026 12PM", "caseDataAsOf": "2026-08-04", "attachmentCount": 13, "attachments": [ { "name": "42021048NOPV_Closure Letter_06222022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Closure%20Letter_06222022_(20-180919).pdf", "bytes": 228682, "category": "agency_document" }, { "name": "42021048NOPV_Closure Letter_06222022_(20-180919)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Closure%20Letter_06222022_(20-180919)_text.pdf", "bytes": 6062, "category": "agency_document" }, { "name": "42021048NOPV_Final Order_04252022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Final%20Order_04252022_(20-180919).pdf", "bytes": 300084, "category": "agency_document" }, { "name": "42021048NOPV_Final Order_04252022_(20-180919)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Final%20Order_04252022_(20-180919)_text.pdf", "bytes": 109130, "category": "agency_document" }, { "name": "42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 1) _01142022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Statement%20of%20Issues%20(Part%201)%20_01142022_(20-180919).pdf", "bytes": 480618, "category": "agency_document" }, { "name": "42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 2) _01142022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Statement%20of%20Issues%20(Part%202)%20_01142022_(20-180919).pdf", "bytes": 308206, "category": "agency_document" }, { "name": "42021048NOPV_Operator Response to Notice_04062022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Operator%20Response%20to%20Notice_04062022_(20-180919).pdf", "bytes": 136619, "category": "party_submission" }, { "name": "42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP%20(AMENDED)_03082022_(20-180919).pdf", "bytes": 329504, "category": "agency_document" }, { "name": "42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP%20(AMENDED)_03082022_(20-180919)_text.pdf", "bytes": 186465, "category": "agency_document" }, { "name": "42021048NOPV_PCO PCP_11152021_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP_11152021_(20-180919).pdf", "bytes": 331702, "category": "case_document" }, { "name": "42021048NOPV_PCO PCP_11152021_(20-180919)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP_11152021_(20-180919)_text.pdf", "bytes": 188950, "category": "case_document" }, { "name": "42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PHC%20Hearing%20Scheduled_02022022_(20-180919).pdf", "bytes": 147037, "category": "agency_document" }, { "name": "42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PHC%20Hearing%20Scheduled_02022022_(20-180919)_text.pdf", "bytes": 82935, "category": "agency_document" } ], "extractedAgencyDocumentCount": 6, "attachmentPolicy": "Official attachment links are retained. 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