{"operation":"document","citation":"CPF 120171003W","title":"ALGONQUIN GAS TRANSMISSION, L.L.C. (SPECTRA ENERGY PARTNERS, LP) — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-01-20","effective_on":null,"summary":"CLOSED warning letter citing 192.605(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171003w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171003w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171003w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120171003W","body":"Warning Letter involving ALGONQUIN GAS TRANSMISSION, L.L.C. (SPECTRA ENERGY PARTNERS, LP). PHMSA's enforcement data identifies the cited regulation as 192.605(a). The case was opened on 2017-01-20 and is reported as closed as of 2017-01-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120171003W_Operator Response to Notice_02202017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171003W/120171003W_Operator%20Response%20to%20Notice_02202017.pdf\n\n120171003W_Warning Letter_01202017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171003W/120171003W_Warning%20Letter_01202017.pdf\n\n120171003W_Warning Letter_01202017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171003W/120171003W_Warning%20Letter_01202017_text.pdf\n\n120171003W_Warning Letter_01202017_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nJanuary 20, 2017\nJ. Andrew Drake\nVice President, Operations & EHS\nAlgonquin Gas Transmission, L.L.C. (Spectra Energy Partners, LP)\n5400 Westheimer Court\nHouston, TX 77056\nCPF 1-2017-1003W\nDear Mr. Drake:\nFrom October 26 – 29 and November 9 – 13, 2015, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety, and inspectors from the New York\nState Department of Public Service (NYSDPS), acting as agents of PHMSA, pursuant to Chapter 601 of\n49 United States Code, inspected Algonquin Gas Transmission, L.L.C.’s (a subsidiary of Spectra Energy\nPartners, LP) (Spectra) New Jersey Area Unit #15181 in NJ and Lower Hudson Valley Unit #62611 in\nNY.\nAs a result of the inspections, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolations are:\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\nresponse. For transmission lines, the manual must also include procedures for handling\nabnormal operations. This manual must be reviewed and updated by the operator at\nintervals not exceeding 15 months, but at least one each calendar year. This manual must\nbe prepared before operations of a pipeline system commence. Appropriate parts of the\nmanual must be kept at locations where operations and maintenance activities are\nconducted.\nSpectra failed to follow its procedure SOP 2-4080, Corrosion Control Remedial Actions, dated 4/17/2013,\nby not taking prompt remedial action to correct a deficiency indicated by its cathodic protection\nmonitoring. Specifically, Spectra failed to initiate corrective action of a low potential deficiency found\nduring the 2014 cathodic protection annual survey prior to performing the next annual survey. This\n\n\n\n1-2017-1001M\noccurred at test station “738+99 L30A 30in RTE 202 S-68 #699” (TS 699) on its L30A pipeline in the\nSouth Plainfield, NJ, operating area.\nSpectra SOP 2-4080, Corrosion Control Remedial Actions, dated 4/17/2013, states in part:\n“1.0 Identification of Problem\n1.1 Identify any condition that would require action to restore normal levels of corrosion control.\n1.0 Scheduling\n2.1 Initiate remedial measures as soon as practical after surveys, tests, or inspections indicate that\ncorrosion protection is not adequate and the cause has been identified.\n2.1.1. In all cases, remedial action should be initiated prior to the next scheduled operational inspection\nsequence.”\nSpectra utilizes their PCS database to document the cathodic protection criterion utilized at each test\nstation. The criterion designated for this test station was the -0.850 VDC “ON” criterion, noted in Spectra\nSOP 2-2200, Application of Cathodic Protection Criteria, dated 4/30/2014. This criterion is established\nto comply with 49 CFR Part 192 Appendix D (I)(A)(1). Section 2.0 of this SOP states in part:\n“2.0 -0.850 VDC “ON” Acceptable Criterion\n2.1 A negative (cathodic) potential of at least 850 mVDC with the CP applied. This potential is measured\nwith respect to a saturated copper/copper sulfate reference electrode contacting the electrolyte with the\nprotective current applied. Voltage drops other than those across the structure-to-electrolyte boundary\nmust be considered for valid interpretation of this voltage measurement.\n2.2 Voltage drops other than those across the structure-to-electrolyte boundary must be considered by:\n2.2.1 Measuring or calculating the voltage drop(s); or\n2.2.2 Reviewing the historical performance of CP system; or\n2.2.3 Evaluating the physical/ electrical characteristics of the pipe and its environment; or\n2.2.4 Determining if there is physical evidence of corrosion.”\nDuring the inspection, the PHMSA inspector reviewed cathodic protection monitoring Annual Survey\nrecords and the Test Point Remedial Action Report for Spectra’s LAMA-HANA pipelines located in the\nSouth Plainfield, NJ operating area.\nThese records indicated that the following cathodic protection structure IRF readings and remedial actions\nwere taken at TS 699 during 2014 and 2015:\n1. 5/02/2014 -0.841 V\n2. 3. 4. 6/20/2015 -0.667 V with comment “Low reading, need to do follow up testing”\n7/09/2015 “Repair Initiated Date” per SET Test Point Remedial Action Report\n7/21/2015 “Repair Corrected Date” per SET Test Point Remedial Action Report\n5. 7/28/2015 -0.810 V\nSpectra’s records show that a deficient reading taken on 5/2/2014 did not have remedial action initiated\nprior to conducting the next annual cathodic protection survey.\nThus, Spectra failed to take prompt remedial action to correct this deficiency.\n2. §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\n120171003W_Warning Letter_01202017 Page 2 of 4\n\n\n\n1-2017-1001M\nprocedures for conducting operations and maintenance activities and for emergency\nresponse. For transmission lines, the manual must also include procedures for handling\nabnormal operations. This manual must be reviewed and updated by the operator at\nintervals not exceeding 15 months, but at least one each calendar year. This manual must\nbe prepared before operations of a pipeline system commence. Appropriate parts of the\nmanual must be kept at locations where operations and maintenance activities are\nconducted.\nSpectra failed to review the written emergency plan required by §192.615(a) for the South Plainfield, NJ\noperating area at an interval not exceeding 15 months, but at least once each calendar year.\nDuring the inspection, the PHMSA inspector reviewed the Area Emergency & Security Procedures South\nPlainfield Area and the Memo to file records of the annual reviews of this Emergency Plan. The records\nshow that reviews of these procedures were performed on 1/6/2013, 1/13/2014 and 7/8/2015. The time\nbetween the reviews conducted in 2014 and 2015 exceeded the 15-month maximum interval by\napproximately 3 months.\n3. §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\nresponse. For transmission lines, the manual must also include procedures for handling\nabnormal operations. This manual must be reviewed and updated by the operator at\nintervals not exceeding 15 months, but at least one each calendar year. This manual must\nbe prepared before operations of a pipeline system commence. Appropriate parts of the\nmanual must be kept at locations where operations and maintenance activities are\nconducted.\nSpectra failed to follow for each pipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response. Specifically, Spectra failed to follow the\nrequirements for recordkeeping for aerial patrols noted in its manual of written procedures, SOP 1-6040,\nAerial Pipeline Patrol, dated 06/08/2010.\nSpectra’s SOP 1-6040 requires aerial patrol pilots to keep a log of their patrols, including observing and\ndocumenting various conditions found on or near the right-of-way being flown.\n1. Examples of observations are listed on pages 2 through 5 of the SOP under the “ACTION”\ncolumn, which include indications of leakage, sink holes, fires, construction activity, etc.\n2. Page 7 of the SOP requires that Area Management investigate each activity reported and to\ndocument the results of all encroachment investigations.\nDuring the inspection, PHMSA and NYSDPS inspectors reviewed Air Patrol Segment, Frequency, and\nFollow Up Reports (records) for the LAMA-HANA and HANA-STON line segments for 2013 to 2015\nand Patrol Aircraft Monthly Flight Summary (flight logs) documentation from January through April of\n2013.\nEight records contained inaccurate information regarding the results of the aerial patrol. Six of these 8\nrecords also contained inaccurate information regarding actual dates of the aerial patrols.\n1. The 8 records dated 1/07/2013, 3/04/2013, 3/10/2013, and 3/31/2013 included the words “YES\n–W/OBSERVATIONS” in the “Segment Flown” column, indicating a condition was observed\nby the pilot. No follow up investigation occurred to these recorded conditions:\na. The “Activity Type” field for the records was blank. According to Spectra, the “Activity\nType” field is used to indicate that an observation was communicated to the Area\npersonnel.\n120171003W_Warning Letter_01202017 Page 3 of 4\n\n\n\n1-2017-1001M\nb. c. Spectra could not provide documentation indicating what the Observations were, nor could\nthey provide any documentation of investigations performed resulting from these air\npatrols.\nSpectra indicated that they believed the field was incorrectly populated and that no actual\nobservations occurred.\n2. The “Date Flown” column of these records, used to indicate the date of the air patrols, was\ninaccurate for 6 of the 8 records.\na. The “Date Flown” column was compared with actual flight dates from the flight logs for\nJanuary through April of 2013. Based on this comparison, actual flights did not occur on\n3/04/2013, 3/10/2013, and 3/31/2013.\nb. The flight logs contained actual dates that the Algonquin Gas Transmission system was\nflown, which included the LAMA-HANA and HANA-STON line segments in question.\nc. Spectra indicated the dates found in the records were likely reflecting the date that the paper\nwork was completed rather than the intended use of the field, which was the date the actual\naerial patrol occurred.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $205,638 per\nviolation per day the violation persists up to a maximum of $2,056,380 for a related series of violations.\nFor violations occurring between January 4, 2012 to August 1, 2016, the maximum penalty may not\nexceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a related\nseries of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not\nexceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related\nseries of violations. We have reviewed the circumstances and supporting documents involved in this\ncase, and have decided not to conduct additional enforcement action or penalty assessment proceedings\nat this time. We advise you to correct the items identified in this letter. Failure to do so will result in\nAlgonquin Gas Transmission, L.L.C. being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 1-\n2017-1003W. Be advised that all material you submit in response to this enforcement action is subject\nto being made publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document, you must\nprovide a second copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nSincerely,\nRobert Burrough\nActing Director, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120171003W_Warning Letter_01202017 Page 4 of 4","truncated":false,"body_characters":12467}