{"operation":"document","citation":"CPF 120151002","title":"ARLINGTON STORAGE COMPANY LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-01-13","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.605.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120151002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120151002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120151002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120151002","body":"Notice of Probable Violation involving ARLINGTON STORAGE COMPANY LLC. PHMSA's enforcement data identifies the cited regulation as 192.605. The case was opened on 2015-01-13 and is reported as closed as of 2016-01-28. Proposed civil penalty: $15,800. Assessed civil penalty: $15,800. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120151002_Closure Letter_01282016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_Closure%20Letter_01282016.pdf\n\n120151002_Closure Letter_01282016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_Closure%20Letter_01282016_text.pdf\n\n120151002_Final Order_09152015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_Final%20Order_09152015.pdf\n\n120151002_Final Order_09152015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_Final%20Order_09152015_text.pdf\n\n120151002_NOPV PCP PCO_01132015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_NOPV%20PCP%20PCO_01132015.pdf\n\n120151002_NOPV PCP PCO_01132015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_NOPV%20PCP%20PCO_01132015_text.pdf\n\n120151002_Operator Response to Notice_02132015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120151002/120151002_Operator%20Response%20to%20Notice_02132015.pdf\n\n120151002_Final Order_09152015_text.pdf\n\nSeptember 15, 2015\nMs. Miranda Jones\nVice President, Environmental Safety and Regulatory\nCrestwood Midstream Partners LP\n801 Cherry Street, Suite 3800, Unit 20\nFort Worth, TX 76102\nRe: CPF No. 1-2015-1002\nDear Ms. Jones:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $15,800, and specifies actions that need to be taken by\nArlington Storage Company, LLC to comply with the pipeline safety regulations. This is to\nacknowledge receipt of payment of the full penalty amount, by wire transfer, dated February 9,\n2015. When the terms of the compliance order have been completed, as determined by the\nDirector, Eastern Region, this enforcement action will be closed. Service of the Final Order by\ncertified mail is deemed effective upon the date of mailing, or as otherwise provided under 49\nC.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, PE, Director, Eastern Region, OPS\nMs. Alice Ratcliffe, Pipeline Compliance Manager, Crestwood Midstream Partners LP\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [INSERT RECEIPT NO.]\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)\nArlington Storage Company, LLC, ) CPF No. 1-2015-1002\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween September 1 and October 31, 2013, pursuant to 49 U.S.C. § 60117, representatives of\nthe New York State Department of Public Service (NYSDPS), as agent for the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the Seneca Lake facilities and records of\nArlington Gas Storage (ASC or Respondent) in Watkins Glen, New York. ASC is a subsidiary\nof Crestwood Midstream Partners LP. Crestwood operates five storage facilities with\napproximately 80 billion cubic feet of natural gas storage primarily serving producers in the\nNortheastern U.S. Seneca Lake gas storage system is an 18.6 mile, 16-inch diameter pipeline\nsystem that connects the Seneca Lake storage facility on its northern end to the Dominion\nTransmission Corporation’s Yawger Road station on its southern end.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated January 13, 2015, a Notice of Probable Violation, Proposed Civil Penalty and\nProposed Compliance Order. In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that ASC had violated 49 C.F.R. § 192.605 and proposed assessing a civil penalty of\n$15,800 for the alleged violation. The Notice also proposed that Respondent be required to take\ncertain measures to correct the alleged violation.\nCrestwood Midstream Partners LP responded to the Notice on behalf of ASC by letter dated\nFebruary 13, 2015 (Response). The company did not contest the allegation of violation and paid\nthe proposed civil penalty of $15,800, as provided in 49 C.F.R. § 190.227. The company also\nprovided information concerning the corrective actions it intended to take. Respondent did not\nrequest a hearing and therefore has waived its right to one.\n1 Pipeline Safety Violation Report, (Jan. 13, 2015) (on file with PHMSA), at 1.\n\n\n\nCPF No. 1-2015-1002\nPage 2\nFINDING OF VIOLATION\nIn its Response, ASC did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.605, which states, in\nrelevant part:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a\nmanual of written procedures for conducting operations and maintenance\nactivities and for emergency response. For transmission lines, the manual\nmust also include procedures for handling abnormal operations. This\nmanual must be reviewed and updated by the operator at intervals not\nexceeding 15 months, but at least once each calendar year. This manual\nmust be prepared before operations of a pipeline system commence.\nAppropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following, if\napplicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance\nwith each of the requirements of this subpart and subpart M of this part.\n(2) Controlling corrosion in accordance with the operations and\nmaintenance requirements of subpart I of this part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605 by failing to have procedures\nfor the internal corrosion control requirements of § 192.476 applicable to the design and\nconstruction of transmission lines. Specifically, the Notice alleged that ASC’s Operating and\nMaintenance (O&M) Procedure 906 did not cover internal corrosion requirements applicable to\nthe Project 415-Upson Road M&R Station built in 2012. Respondent did not contest this\nallegation of violation. Accordingly, based upon a review of all of the evidence, I find that\nRespondent violated 49 C.F.R. § 192.605 by failing to have procedures for the internal corrosion\ncontrol requirements of § 192.476 applicable to the design and construction of transmission\nlines.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\n\n\n\nCPF No. 1-2015-1002\nPage 3\nrelated series of violations.2 In determining the amount of a civil penalty under 49 U.S.C.\n§ 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; and any effect\nthat the penalty may have on its ability to continue doing business; and the good faith of\nRespondent in attempting to comply with the pipeline safety regulations. In addition, I may\nconsider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a civil\npenalty of $15,800 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $15,800 for Respondent’s violation of 49 C.F.R.\n§ 192.605, for failing to have procedures for the internal corrosion control requirements of §\n192.476 applicable to the design and construction of transmission lines. ASC neither contested\nthe allegation nor presented any evidence or argument justifying a reduction in the proposed\npenalty. I find that the penalty amount proposed in the notice is warranted considering the\nnature, circumstances, and gravity of the violation and Respondent’s culpability for the violation.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $15,800 for violation of 49 C.F.R. § 192.605, which amount has\nalready been paid by Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49\nC.F.R. § 192.605. Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof gas or who owns or operates a pipeline facility is required to comply with the applicable\nsafety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 192.605 (Item 1), Respondent must:\n(a) Within 90 days of receipt of this Order, prepare written procedures that\naddress the § 192.476 design and construction requirements and submit a final\nreport demonstrating completion of this item to the Director in accordance\nwith Item 2 of this Compliance Order; and\n(b) Within 180 days of receipt of this Order, evaluate the transmission line and\neach replacement of line pipe, valve, fitting, or other line component that was\ninstalled as part of “Project 415-Upson Road M&R Station” to determine\nwhether or not they comply with § 192.476 and retrofit any that do not unless\nit is impracticable or unnecessary to do so and submit a final report\ndemonstrating completion of this item to the Director in accordance with Item\n2 of this Compliance Order.\n2 The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, Pub. L. No. 112-90, § 2(a)(1), 125 Stat.\n1904, January 3, 2012, increased the civil penalty liability for violating a pipeline safety standard to $200,000 per\nviolation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.\n\n\n\nCPF No. 1-2015-1002\nPage 4\n2. Within 30 days following the completion of each item in this Compliance Order,\nRespondent must submit documentation demonstrating the completion of each item to\nByron Coy, PE, Director, Eastern Region, Pipeline and Hazardous Materials Safety\nAdministration, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628, for\nreview and acceptance.\n3. It is requested, but not required, that Respondent maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and submit\nthe total to the Director. Costs should be reported in two categories: (1) total cost\nassociated with preparation/revision of plans, procedures, studies, and analyses; and\n(2) total cost associated with replacements, additions, and other physical changes to\npipeline facilities and 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 $200,000 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.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n120151002_NOPV PCP PCO_01132015_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\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS DELIVERY\nJanuary 13, 2015\nMiranda Jones\nVice President, Environmental Safety and Regulatory\nCrestwood Midstream Partners LP\n801 Cherry Street, Suite 3800, Unit 20\nFort Worth, TX 76102\nCPF 1-2015-1002\nDear Ms. Jones:\nBetween September 1 and October 31, 2013, inspectors from the New York State Department of Public\nService (NYSDPS), acting as agents for the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Arlington Storage Company,\nLLC’s (ASC) (a subsidiary of Crestwood Midstream Partners LP) Seneca Lake gas storage facilities in\nWatkins Glen, New York.\nAs a result of the inspection, it appears that you have committed a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The item inspected and the probable violation\nis:\n1. §192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of written\nprocedures for conducting operations and maintenance activities and for emergency response. For\ntransmission lines, the manual must also include procedures for handling abnormal operations.\nThis manual must be reviewed and updated by the operator at intervals not exceeding 15 months,\nbut at least one each calendar year. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at locations where operations\nand maintenance activities are conducted.\n(b) Maintenance and normal operations. The manual required by paragraph (a) of this section\nmust include procedures for the following, if applicable, to provide safety during maintenance and\noperations. . .\n(2) Controlling corrosion in accordance with the operations and maintenance requirements of\nSubpart I of this part.\n\n\n\n1-2015-1002\nASC failed to have procedures for the internal corrosion control: design and construction of transmission\nline requirements under §192.476.\nThe NYSDPS reviewed ASC’s O&M Procedure 906, Internal Corrosion Control – revised 1/18/2012, and\nnoted that the requirements of §192.476 (Internal corrosion control: Design and construction of\ntransmission line) were not covered in the procedure. ASC installed new facilities in 2012, specifically\nthe Project 415-Upson Road M&R Station project, and therefore these requirements should have been\nfully developed prior to the construction of these new facilities.\nIn an e-mail dated March 14, 2014, the NYSDPS asked ASC “How does (Arlington-Seneca facilities)\naddress §192.476 in company procedures or company construction/design standards?” ASC responded in\nan e-mail dated March 14, 2014 that “The best I can find is that Procedure 906, Section 3.1, vaguely\naddresses §192.476(a)(3).”\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of violations.\nFor violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per\nviolation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The\nCompliance Officer has reviewed the circumstances and supporting documentation involved in the above\nprobable violation and has recommended that you be preliminarily assessed a civil penalty of $15,800 as\nfollows:\nItem number PENALTY\n1 $15,800\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Arlington Storage Company, LLC (ASC).\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All material you\nsubmit in response to this enforcement action may be made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with\nthe complete original document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30\ndays of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this\nNotice without further notice to you and to issue a Final Order.\nPlease submit all correspondence in this matter to Byron Coy, PE, Director, PHMSA Eastern Region, 820\nBear Tavern Road, Suite 103, W. Trenton, NJ 08628. Please refer to CPF 1-2015-1002 on each\ndocument you submit and please, whenever possible, provide a signed PDF copy in electronic format.\nSmaller files may be e-mailed to Byron.Coy@dot.gov. Larger files should be sent on a CD accompanied\nby the original paper copy to the Eastern Region Office.\n120151002_NOPV_PCP_PCO_\n01132014 Page 2 of 4\n\n\n\n1-2015-1002\nAdditionally, if you choose to respond to this (or any other case), please ensure that any response letter\npertains solely to one CPF case number.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCc: Kevin Speicher NYSDPS\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n120151002_NOPV_PCP_PCO_\n01132014 Page 3 of 4\n\n\n\n1-2015-1002\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) proposes to issue to Arlington Storage Company, LLC (ASC) a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of ASC with the pipeline\nsafety regulations:\n1. 2. 3. 4. With respect to Item Number 1 of the Notice pertaining to ASC’s failure to have procedures\nfor internal corrosion control: design and construction of transmission line requirements\nunder §192.476, ASC must:\na. Prepare procedures that address the design and construction requirements under\n§192.476; and\nb. Evaluate the transmission line and each replacement of line pipe, valve, fitting, or other\nline component that was installed as part of “Project 415-Upson Road M&R Station” to\ndetermine whether or not they comply with §192.476. If they do not, unless it is\nimpracticable or unnecessary to do so, ASC must retrofit them so that they do comply\nwith §192.476.\nASC must submit the procedures stipulated in Item 1 a. of this Compliance Order to the\nRegion Director within 90 days of receipt of the Final Order.\nASC must submit documentation demonstrating completion of Item 1 b. of this Compliance\nOrder to the Region Director within 180 days of receipt of the Final Order.\nIt is requested (not mandated) that ASC maintain documentation of the safety improvement\ncosts associated with fulfilling this Compliance Order and submit the total to Byron Coy,\nDirector, Eastern Region, Pipeline and Hazardous Materials Safety Administration. It is\nrequested that these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost associated\nwith replacements, additions and other changes to pipeline infrastructure.\n120151002_NOPV_PCP_PCO_\n01132014 Page 4 of 4\n\n120151002_Closure Letter_01282016_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJanuary 28, 2016\nMs. Miranda Jones\nVice President, Environmental Safety and Regulatory\nCrestwood Midstream Partners LP\n801 Cherry Street, Suite 3800, Unit 20\nFort Worth, TX 76102\nCPF 1-2015-1002\nDear Ms. Jones:\nOn September 15, 2015, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Crestwood Midstream Partners LP (Crestwood) 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 Crestwood provided, and confirmation of payment of the civil\npenalty, it has been determined that Crestwood has complied with the 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\nCc: Mr. Kevin Speicher, NYSDPS","truncated":false,"body_characters":21289}