{"operation":"document","citation":"CPF 120171006","title":"ALGONQUIN GAS TRANSMISSION, L.L.C. (SPECTRA ENERGY PARTNERS, LP) — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-12-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(a), 192.465(d), 192.481(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171006.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171006.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171006","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120171006","body":"Notice of Probable Violation involving ALGONQUIN GAS TRANSMISSION, L.L.C. (SPECTRA ENERGY PARTNERS, LP). PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.465(d),  192.481(a). The case was opened on 2017-12-18 and is reported as closed as of 2018-06-22. Proposed civil penalty: $65,500. Assessed civil penalty: $65,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120171006_Final Order_06222018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171006/120171006_Final%20Order_06222018.pdf\n\n120171006_Final Order_06222018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171006/120171006_Final%20Order_06222018_text.pdf\n\n120171006_NOPV PCP_12182017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171006/120171006_NOPV%20PCP_12182017.pdf\n\n120171006_NOPV PCP_12182017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171006/120171006_NOPV%20PCP_12182017_text.pdf\n\n120171006_Operator Response To Notice_01152018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171006/120171006_Operator%20Response%20To%20Notice_01152018.pdf\n\n120171006_Final Order_06222018_text.pdf\n\nJune 22, 2018\nMr. William T. Yardley\nPresident\nSpectra Energy Partners, LP\n5400 Westheimer Court\nHouston, TX 77056\nRe: CPF No. 1-2017-1006\nDear Mr. Yardley:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a civil penalty of $65,500 against your subsidiary, Algonquin Gas\nTransmission, LLC. This is to acknowledge receipt of payment of the full penalty amount, by\nwire transfer, dated January 17, 2018. This enforcement action is now closed. Service of the\nFinal Order by certified mail is effective upon the date of mailing, as provided under 49 C.F.R.\n§ 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\nMr. Andy Drake, Vice President Transmission Services, Algonquin Gas\nTransmission, LLC, 5400 Westheimer Court, Houston, Texas 77056\nMr. Rick Kivela, Manager, Operational Compliance, Enbridge Inc., 5400 Westheimer\nCourt, Houston, Texas 77056\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)\nAlgonquin Gas Transmission, LLC, )\na subsidiary of Spectra Energy Partners, LP, )\n)\n) CPF No. 1-2017-1006\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom November 2 to 6, 2015, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Algonquin Gas\nTransmission, LLC’s (AGT or Respondent), a subsidiary of Spectra Energy Partners, LP,\nfacilities at PHMSA Unit #1931 (Boston/Westwood) and PHMSA Unit #72496 (Hubline) in\nWestwood, Massachusetts. AGT is located primarily in New England (from lower New Jersey\nthrough Salem, Massachusetts). The AGT pipeline transports 3.08 billion cubic feet per day of\nnatural gas through 1,129 miles of pipeline.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated December 18, 2017, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that AGT had\nviolated 49 C.F.R. §§ 192.465 and 192.481(a) and proposed assessing a civil penalty of $65,500\nfor the alleged violations.\nEnbridge, Inc., responded to the Notice on behalf of Respondent by letter dated January 15, 2018\n(Response). The company did not contest the allegations of violation and paid the proposed civil\npenalty of $65,500. In accordance with 49 C.F.R. § 190.208(a)(1), such payment authorizes the\nAssociate Administrator to make findings of violation and to issue this final order without further\nproceedings.\n1 http://www.spectraenergypartners.com/operations/natural-gas-pipelines/algonquin-gas-transmission (last accessed\non April 4, 2018). Effective February 27, 2017, pursuant to a merger between Enbridge, Inc. (Enbridge), and Spectra\nEnergy Corp., Spectra Energy Partners, LP, became a subsidiary of Enbridge Inc. Enbridge owns and operates an\nextensive network of crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities, and\nrenewable power generation. See Enbridge website, available at, http://www.enbridge.com/media-\ncenter/news/details?id=2126823&lang=en&year=2017 (last accessed April 22, 2018).\n\n\n\nCPF No. 1-2017-1006\nPage 2\nFINDINGS OF VIOLATION\nIn its Response, AGT did not contest the allegations 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. § 192.465, which states, in\nrelevant part:\n§ 192.465 External corrosion control: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at least\nonce each calendar year, but with intervals not exceeding 15 months,\nto determine whether the cathodic protection meets the requirements\nof § 192.463…\n(d) Each operator shall take prompt remedial action to correct any\ndeficiencies indicated by the monitoring.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.465 by failing to take prompt\nremedial action to correct deficiencies indicated by its cathodic protection (CP) monitoring.\nSpecifically, the Notice alleged that during the inspection, the PHMSA inspector reviewed CP\nmonitoring records from 2012-2014 for AGT’s pipeline system located in the Westwood,\nMassachusetts operating area. The records show that in nine instances, AGT failed to take\nprompt remedial action to correct low potential deficiencies indicated by annual CP monitoring\nat six different test stations within the Boston/Westwood and Hubline areas, prior to the next\nscheduled inspection.\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. § 192.465 by failing to take prompt\nremedial action to correct deficiencies indicated by its CP monitoring.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.481(a), which states in\nrelevant part:\n§ 192.481 Atmospheric corrosion control: Monitoring.\n(a) Each operator must inspect each pipeline or portion of pipeline that\nis exposed to the atmosphere for evidence of atmospheric corrosion, as\nfollows:\nIf the pipeline is located: Onshore…………………...\nOffshore…………………..\nThen the frequency of inspection is:\nAt least once every 3 calendar years, but\nwith intervals not exceeding 39 months\nAt least once each calendar year, but with\nintervals not exceeding 15 months\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.481(a) by failing to inspect each\npipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric\n\n\n\nCPF No. 1-2017-1006\nPage 3\ncorrosion at a frequency of at least once every three calendar years, but with intervals not\nexceeding 39 months. Specifically, the Notice alleged that AGT failed to inspect three locations\non its Q Pipeline System within the Boston/Westwood area that were exposed to the atmosphere\nfor evidence of atmospheric corrosion within the 39-month maximum interval. During the\ninspection, the PHMSA inspector reviewed atmospheric-corrosion inspection records from 2012\nthrough November 4, 2015, for AGT’s Q and I Pipeline Systems. The records indicated that\nValve Q11, Milford M&R #20, and Valve H11-Q1-Launcher atmospheric-corrosion inspections\noccurred on April 5, 2012; however, AGT did not have atmospheric corrosion inspection records\nfor 2015 for these locations. On November 6, 2015, and November 9, 2015, after the inspection,\nAGT conducted atmospheric corrosion inspections at the three locations referenced above.\nTherefore, the Notice alleged that AGT exceeded the 39-month maximum interval by 123 days\nfor two locations, and by 126 days for one location.\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. § 192.481(a) by failing to inspect three\nlocations on its Q Pipeline System that were exposed to the atmosphere for evidence of\natmospheric corrosion within the 39-month maximum interval.\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$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.2\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; and any effect that the penalty may have on its ability to continue\ndoing business; and the good faith of Respondent in attempting to comply with the pipeline\nsafety regulations. In addition, I may consider the economic benefit gained from the violation\nwithout any reduction because of subsequent damages, and such other matters as justice may\nrequire. The Notice proposed a total civil penalty of $65,500 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $40,300 for Respondent’s violation of 49 C.F.R.\n§ 192.465, for failing to take prompt remedial action to correct deficiencies indicated by its CP\nmonitoring. AGT neither contested the allegation nor presented any evidence or argument\njustifying reduction or elimination of the proposed penalty. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $40,300 for\nviolation of 49 C.F.R. § 192.465.\n2 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum\nCivil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\n\n\n\nCPF No. 1-2017-1006\nPage 4\nItem 2: The Notice proposed a civil penalty of $25,200 for Respondent’s violation of 49 C.F.R.\n§ 192.481(a), for failing to inspect three locations on its Q Pipeline System that were exposed to\nthe atmosphere for evidence of atmospheric corrosion within the 39-month maximum interval.\nAGT neither contested the allegation nor presented any evidence or argument justifying\nreduction or elimination of the proposed penalty. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $25,200 for violation of\n49 C.F.R. § 192.481(a).\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 $65,500. Respondent paid the civil\npenalty on January 17, 2018.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nJune 22, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11523}