{"operation":"document","citation":"CPF 120123002","title":"TRANSCONTINENTAL GAS PIPE LINE COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-06-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 193.2503, 193.2635(d), 193.2801.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120123002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120123002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120123002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120123002","body":"Notice of Probable Violation involving TRANSCONTINENTAL GAS PIPE LINE COMPANY. PHMSA's enforcement data identifies the cited regulations as 193.2503,  193.2635(d),  193.2801. The case was opened on 2012-06-11 and is reported as closed as of 2013-01-24. Proposed civil penalty: $74,300. Assessed civil penalty: $74,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120123002_Closure Letter_01242013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120123002/120123002_Closure%20Letter_01242013.pdf\n\n120123002_Closure Letter_01242013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120123002/120123002_Closure%20Letter_01242013_text.pdf\n\n120123002_Final Order_10262012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120123002/120123002_Final%20Order_10262012.pdf\n\n120123002_Final Order_10262012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120123002/120123002_Final%20Order_10262012_text.pdf\n\n120123002_NOPV_PCP PCO_ 06112012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120123002/120123002_NOPV_PCP%20PCO_%2006112012_text.pdf\n\n120123002_NOPV_PCP_PCO_06112012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120123002/120123002_NOPV_PCP_PCO_06112012.pdf\n\n120123002_Final Order_10262012_text.pdf\n\nOCTOBER 26, 2012\nMr. Larry Hjalmarson\nVice President Safety, Environment & Integrity\nTranscontinental Gas Pipe Line Company, LLC\n2800 Post Oak Blvd\nHouston, TX 77056\nRe: CPF No. 1-2012-3002\nDear Mr. Hjalmarson:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $74,300, and specifies actions that need to be taken by\nTranscontinental Gas Pipe Line Company, LLC, to comply with the pipeline safety regulations.\nThis letter acknowledges receipt of payment of the full penalty amount, by wire transfer, dated\nJuly 3, 2012. When the terms of the compliance order have been completed, as determined by\nthe Director, Eastern Region, this enforcement action will be closed. Service of the Final Order\nby certified mail is deemed effective upon the date of mailing, or as otherwise provided under\n49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Byron Coy, Director, Eastern Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nMr. Alan S. Armstrong, President, The Williams Companies, Inc., 2800 Post Oak Blvd,\nHouston, TX 77056\nMs. Marie G. Sotak, Manager, Pipeline Safety, Transcontinental Gas Pipe Line\nCompany, LLC\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nTranscontinental Gas Pipe Line ) CPF No. 1-2012-3002\nCompany, LLC, )\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nDuring the week of December 6, 2010, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of\nTranscontinental Gas Pipeline Company, LLC (Transco or Respondent), a subsidiary of The\nWilliams Companies, Inc., at its liquefied natural gas (LNG) facility in Carlstadt, New Jersey.\nThe Carlstadt facility is part of the Transco Pipeline, which transports natural gas through a\n10,200-mile pipeline system extending from South Texas to New York City.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Williams\nGas Pipeline - Transco, by letter dated June 11, 2012, a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice), which also included a warning pursuant\nto 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding\nthat Transco had committed various violations of 49 C.F.R. Part 193, proposed assessing a civil\npenalty of $74,300 for the alleged violations, and proposed ordering Respondent to take certain\nmeasures to correct the alleged violations. The warning item required no further action, but\nwarned the operator to correct the probable violation or face possible enforcement action.\nTransco responded to the Notice by letter dated September 5, 2012 (Response). The company\ndid not contest the allegations of violation or the proposed compliance order and paid the\nproposed civil penalty of $74,300, as provided in 49 C.F.R. § 190.227. The company also\nprovided information concerning the corrective actions it had taken and submitted copies of its\nrevised procedures. Payment of the penalty serves to close the penalty Items with prejudice to\nRespondent.\n1 See http://co.williams.com/williams/operations/gas-pipeline/transco/ (last accessed September 27, 2012).\n\n\n\n2\nFINDINGS OF VIOLATION\nIn its Response, Transco did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 193, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 193.2801, which states, in\nrelevant part:\n§ 193.2801 Fire protection.\nEach operator must provide and maintain fire protection at LNG plants\naccording to sections 9.1 through 9.7 and section 9.9 of [National Fire\nProtection Association (NFPA) Standard] 59A (incorporated by reference,\nsee § 193.2013). . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 193.2801 by failing to provide and\nmaintain fire protection at its LNG facility at Carlstadt, New Jersey (Facility), in accordance with\nsections 9.1 through 9.7 and 9.9 of NFPA 59A. Specifically, the Notice alleged that Transco\nused methane gas at a concentration of 50% of the lower explosive limit when calibrating its\npropane and ethylene gas detectors at the Facility, resulting in improperly calibrated detectors\nand alarm systems. As a result, Transco allegedly could not demonstrate that the Facility\nmaintained fire protection in accordance with NFPA 59A section 9.3.2, which states that\n“[f]lammable gas detection systems shall activate an audible and visual alarm at not more than\n25 percent of the lower flammable limit of the gas or vapor being monitored.”\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 193.2801 by failing to provide and\nmaintain fire protection in accordance with sections 9.1 through 9.7 and 9.9 of NFPA 59A.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 193.2635(d), which states:\n§ 193.2635 Monitoring corrosion control.\nCorrosion protection provided as required by this subpart must be\nperiodically monitored to give early recognition of ineffective corrosion\nprotection, including the following, as applicable:\n(a) . . .\n(d) Each component that is protected from atmospheric corrosion\nmust be inspected at intervals not exceeding 3 years.\nThe Notice alleged that Respondent violated 49 C.F.R. § 193.2365(d) by failing to inspect each\ncomponent protected from atmospheric corrosion at intervals not exceeding 3 years.\nSpecifically, the Notice alleged that Transco failed to remove insulation on its carbon steel\npipeline during atmospheric corrosion surveys, thereby preventing its staff from performing\nvisual inspections of all pipe surfaces that were protected from atmospheric corrosion.\nRespondent did not contest this allegation of violation but provided a copy of its new\n“Atmospheric Corrosion Control (LNG)” procedure and stated that it had begun a full plant\n\n\n\n3\natmospheric corrosion survey in accordance with the revised procedure and the proposed\nCompliance Order.\n2 Accordingly, based upon a review of all of the evidence, I find that\nRespondent violated 49 C.F.R. § 193.2635(d) by failing to inspect each component protected\nfrom atmospheric corrosion at intervals not exceeding 3 years.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under\n49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $74,300 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $25,900 for Respondent’s violation of\n49 C.F.R. § 193.2801, for failing to provide and maintain fire protection in accordance with\nsections 9.1 through 9.7 and 9.9 of NFPA 59A. Transco paid the proposed penalty, which serves\nto close this Item with prejudice. Accordingly, having reviewed the record and considered the\nassessment criteria, I assess Respondent a civil penalty of $25,900 for violation of\n49 C.F.R. § 193.2801.\nItem 2: The Notice proposed a civil penalty of $48,400 for Respondent’s violation of\n49 C.F.R. § 193.2365(d) for failing to inspect each component protected from atmospheric\ncorrosion at intervals not exceeding 3 years. Transco paid the proposed penalty, which serves to\nclose this Item with prejudice. Accordingly, having reviewed the record and considered the\nassessment criteria, I assess Respondent a civil penalty of $48,400 for violation of\n49 C.F.R. § 193.2365(d).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $74,300, which has already been\npaid by Respondent.\n2 Response at 1.\n\n\n\n4\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 2 in the Notice for violation of\n49 C.F.R. § 193.2635. Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. Pursuant to the authority of\n49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following\nactions to ensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 193.2635(d) (Item 2), Respondent must:\na. Rewrite its operations and maintenance procedures to provide more detail and\nguidance to the corrosion technicians responsible for atmospheric corrosion surveys\nat the Carlstadt LNG Facility. The revision must require a listing of the insulated\npiping sections and other insulated components subject to § 193.2625 within the\nFacility. Transco must develop a methodology to examine each identified insulated\nitem to reliably categorize its corrosion status in accordance with the requirements of\n§ 193.2635(d). This item must be completed within 90 days of receipt of the Final\nOrder.\nb. Conduct a full plant atmospheric corrosion survey in accordance with the revised\nprocedures within 15 months after receipt of the Final Order.\n2. PHMSA requests that Transco maintain documentation of the safety improvement and\ncompliance costs associated with fulfilling this Compliance Order and submit the total to\nByron Coy, Director, Eastern Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: (1) total\ncost associated with preparation/revision of plans, procedures, studies, and analyses; and\n(2) total cost associated with replacements, additions, and other physical changes to the\npipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nWARNING ITEM\nThe Notice alleged a probable violation of Part 193 but did not propose a civil penalty or\ncompliance order. Therefore, this is considered to be a warning item. The warning was for:\n\n\n\n5\n49 C.F.R. § 193.2503 ─ Respondent’s alleged failure to follow its written\nprocedures providing for safety in normal operation. Specifically, the Notice\nalleged that Transco failed to document its fire drills, which are required by\n49 C.F.R. § 193.2717, and as required by Transco’s Procedure Manual, Appendix\nH, Section D.2.\nIf OPS finds a violation of this item in a subsequent inspection, Respondent may be subject to\nfuture enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n120123002_Closure Letter_01242013_text.pdf\n\nU.S. Department of Transportation Pipeline and 609.989.2171\nHazardous Materials\nSafety Administration\n820 Bear Tavern Road, Suite 103\nWest Trenton, NJ 08628\nOVERNIGHT EXPRESS DELIVERY\nJanuary 24, 2013\nMr. Larry Hjalmarson\nVice President Safety, Environment & Integrity\nTranscontinental Gas Pipe Line Company, LLC\n2800 Post Oak Blvd\nHouston, TX 77056\nCPF 1-2012-3002\nDear Mr. Hjalmarson:\nOn October 26, 2012, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Transcontinental Gas Pipe Line Company, LLC a Final Order in the above-referenced\ncase. This Order included a Compliance Order and Civil Penalty assessment. Based on our\nreview of the documentation you provided in your response dated 1/16/2013, and confirmation\nof payment of the civil penalty on 7/3/2012, it has been determined that you have complied with\nthe terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":14861}