{"operation":"document","citation":"CPF 120171010","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":"2017-06-28","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.167(a)(4)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120171010","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120171010","body":"Notice of Probable Violation involving ALGONQUIN GAS TRANSMISSION, L.L.C. (SPECTRA ENERGY PARTNERS, LP). PHMSA's enforcement data identifies the cited regulation as 192.167(a)(4)(ii). The case was opened on 2017-06-28 and is reported as closed as of 2018-10-12. Proposed civil penalty: $36,200. Assessed civil penalty: $36,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120171010_Final Order_09072018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_Final%20Order_09072018.pdf\n\n120171010_Final Order_09072018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_Final%20Order_09072018_text.pdf\n\n120171010_NOPV PCP PCO_06282017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_NOPV%20PCP%20PCO_06282017.pdf\n\n120171010_NOPV PCP PCO_06282017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_NOPV%20PCP%20PCO_06282017_text.pdf\n\n120171010_Operator Response to Notice_08102017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_Operator%20Response%20to%20Notice_08102017.pdf\n\n120171010_Region Closure Confirmation Letter_12042018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_Region%20Closure%20Confirmation%20Letter_12042018.pdf\n\n120171010_Region Closure Confirmation letter_12042018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120171010/120171010_Region%20Closure%20Confirmation%20letter_12042018_text.pdf\n\n120171010_Region Closure Confirmation letter_12042018_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nDecember 4, 2018\nMr. Al Monaco\nPresident and Chief Executive Officer\nEnbridge, Inc.\n5400 Westheimer Court\nHouston, TX 77056\nCPF 1-2017-1010\nDear Mr. Monaco:\nOn September 7, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Algonquin Gas Transmission Company, LLC a Final Order in the above-referenced case.\nThis Order included a Civil Penalty assessment. Based on confirmation of payment of the civil\npenalty, it has been determined that you have 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,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120171010_NOPV PCP PCO_06282017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS DELIVERY\nJune 28, 2017\nJ. Andrew Drake,\nVice President, Operations & EHS\nAlgonquin Gas Transmission Company\n5400 Westheimer Court\nHouston, TX 77056\nCPF 1-2017-1010\nDear Mr. Drake,\nFrom December 8–14, 2016, representatives of the New York State Department of Public Service\n(NYSDPS), acting as agents for the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected Algonquin Gas\nTransmission Company’s (AGT) Algonquin Incremental Market (AIM) project in Brewster,\nNew York.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violation(s) are:\n1. §192.167 Compressor stations: Emergency shutdown.\n(a) Except for unattended field compressor stations of 1,000 horsepower\n(746 kilowatts) or less, each compressor station must have an emergency\nshutdown system that meets the following:\n(4) It must be operable from at least two locations, each of which is:\n…\n\n\n\nCPF 1-2017-1010\n(ii) Near the exit gates, if the station is fenced, or near emergency exits, if\nnot fenced; and, …\nAGT failed to have an emergency shutdown system that was near the exit gates, if the station is\nfenced, or near emergency exits, if not fenced. Specifically, AGT failed to install activation for its\nemergency shutdown system at exit gates in the fenced Southeast Compressor station.\nThe AIM project was installed from October 2015 through December 2016. The AIM project\nconsisted of the installation of approximately 20.1 miles of 42-inch pipeline in New York State,\nand modification of AGT’s existing compressor station in Brewster, NY (Southeast Compressor\nStation). The Southeast Compressor Station modification consisted of the installation of a new\n10,000 horsepower compressor and building to house the compressor.\nDuring the final walkthrough on December 8, 2016, the NYSDPS inspector noted that the\nSoutheast Compressor station did not have activation for its emergency shut down system at the\nfenced facility’s exit gates.\nThe Southeast Compressor station had eight exit gates: four exit gates for personnel and four exit\ngates for vehicles. The station had an emergency shutdown system with activation points within\nthe facility. Activation points for the emergency shutdown system were not present near exit gates.\nAGT stated that there are no activation points for the emergency shutdown system at station exit\ngates.\nProposed Civil Penalty\nAs of April 27, 2017, under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil\npenalty not to exceed $209,002 per violation per day the violation persists up to a maximum of\n$2,090,022 for a related series of violations. The Compliance Officer has reviewed the\ncircumstances and supporting documentation involved in the above probable violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $36,200 as follows:\nItem number PENALTY\n1 $36,200\nProposed Compliance Order\nWith respect to item(s) 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Algonquin Gas Transmission\nCompany. Please refer to the Proposed Compliance Order, which is enclosed and made a part of\nthis 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\nyou submit in response to this enforcement action may be made publicly available. If you believe\nthat any portion of your responsive material qualifies for confidential treatment under 5 U.S.C.\n552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\n120171010_NOPV PCP PCO_06282017_textPage 2 of 4\n\n\n\nCPF 1-2017-1010\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nPlease submit all correspondence in this matter to Robert Burrough, Acting Director, PHMSA\nEastern Region, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. Please refer to\nCPF 1- 2017-1010 on each document you submit, and whenever possible provide a signed PDF\ncopy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger files\nshould be sent on a CD accompanied by the original paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nActing Director, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCc: Kevin Speicher, NYS DPS\nEnclosure: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n120171010_NOPV PCP PCO_06282017_textPage 3 of 4\n\n\n\nCPF 1-2017-1010\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Algonquin Gas Transmission Company a\nCompliance Order incorporating the following remedial requirements to ensure the compliance of\nAlgonquin Gas Transmission Company with the pipeline safety regulations:\n1. 2. In regard to Item Number 1 of the Notice, AGT shall install emergency shutdown\nsystem activation points near the exit gates of the Southeast Compressor station, in\naccordance with the requirements of §192.167(a)(4), within 120 days of receipt of\nthe Final Order.\nIt is requested (not mandated) that Algonquin Gas Transmission Company maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Robert Burrough, Acting Director,\nEastern 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\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n120171010_NOPV PCP PCO_06282017_textPage 4 of 4\n\n120171010_Final Order_09072018_text.pdf\n\nSeptember 7, 2018\nMr. Al Monaco\nPresident and Chief Executive Officer\nEnbridge, Inc.\n5400 Westheimer Court\nHouston, TX 77056\nRe: CPF No. 1-2017-1010\nDear Mr. Monaco:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nAlgonquin Gas Transmission Company, LLC (Algonquin). It makes a finding of violation and\nassesses a civil penalty of $36,200. It further finds that Algonquin has completed the actions\nspecified in the Notice to comply with the pipeline safety regulations. When the civil penalty\nhas been paid, this enforcement action will be closed. Service of the Final Order by certified\nmail is effective, as provided under 49 C.F.R. § 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. Rick Kivela, Manager, Operational Compliance, Enbridge, Inc.\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__________________________________________\nIn the Matter of )\nAlgonquin Gas Transmission Company, LLC, ) CPF No. 1-2017-1010\na subsidiary of Enbridge, Inc., )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom December 8-14, 2016, pursuant to 49 U.S.C. § 60117, representatives of the New York\nState Department of Public Service (NYSDPS), as agent for the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-\nsite pipeline safety inspection of the facilities and records of Algonquin Gas Transmission\nCompany, LLC’s (AGT or Respondent) Algonquin Incremental Market (AIM) project in\nBrewster, New York. AGT is owned and operated by Enbridge, Inc.1 AGT operates\napproximately 1,129 miles of pipeline in New England, with a capacity of approximately 3.08\nbillion cubic feet per day.2\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated June 28, 2017, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that AGT had violated 49 C.F.R. § 192.167, and proposed assessing a civil\npenalty of $36,200 for the alleged violation. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violation.\nEnbridge, on behalf of AGT, responded to the Notice by letter dated August 10, 2017\n(Response). The company did not contest the allegation, but offered additional information in\nresponse to the Notice and requested that the proposed civil penalty be eliminated. Respondent\ndid not request a hearing and therefore has waived its right to one.\n1 Spectra Energy Partners, LP website, available at http://www.spectraenergypartners.com/operations/natural-gas-\npipelines/algonquin-gas-transmission (last accessed August 7, 2018); Enbridge, Inc. website, available at\nhttp://www.enbridge.com/media-center/news/details?id=2126823&lang=en&year=2017 (last accessed August 7,\n2018).\n2 Spectra Energy Partners, LP website, available at http://www.spectraenergypartners.com/operations/natural-gas-\npipelines/algonquin-gas-transmission (last accessed August 7, 2018).\n\n\n\nCPF No. 1-2017-1010\nPage 2\nFINDING OF VIOLATION\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.167(a)(4)(ii), which states\nin relevant part:\n§ 192.167 Compressor stations: Emergency shutdown.\n(a) Except for unattended field compressor stations of 1,000\nhorsepower (746 kilowatts) or less, each compressor station must have an\nemergency shutdown system that meets the following:\n(1) . . . .\n(4) It must be operable from at least two locations, each of which is:\n(i) . . . .\n(ii) Near the exit gates, if the station is fenced, or near emergency exits,\nif not fenced; . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.167(a)(4)(ii) by failing to have an\nemergency shutdown (ESD) system operable from at least two locations, each of which is near\nthe exit gates of a fenced compressor station. Specifically, the Notice alleged that AGT’s fenced\nSoutheast Compressor Station had an ESD with activations points within the facility, but not\nnear the exit gates.\nThe Notice stated that AGT’s AIM project was installed from October 2015 through December\n2016 and consisted of approximately 20.1 miles of 42-inch pipeline in New York and\nmodification of AGT’s existing Southeast Compressor Station (Station) in Brewster, New York.\nAGT installed a new 10,000-horsepower compressor and building to house the compressor at the\nStation, which had eight exit gates - four for personnel and four for vehicles. During the final\nwalkthrough on December 8, 2016, the NYSDPS inspector noted that the Station did not have\nactivation for its ESD system at the fenced facility’s exit gates.\nIn its Response, Enbridge stated that “AGT is not contesting the finding of non-compliance,” yet\nargued that a “finding of violation is not warranted” because there were 16 ESD activation points\nat the Station, including 4 located approximately 60 to 135 feet from an exit gate. Respondent\nalso asserted “the number and locations of the ESD activation points at the time of the inspection\ndid not negatively impact safety.”3\nAGT argued that § 192.167 does not specify the maximum distance between an ESD activation\npoint and a fence exit gate.4 While this is correct, the term “near” is commonly defined as “a\nshort distance” or “close to.”5 As stated in a previous PHMSA final order, “[t]his requirement is\nintended to ensure that onsite personnel can activate the ESD System from a safe distance before\n3 Response, at 2-3.\n4 Id.\n5 Merriam-Webster.com. Merriam-Webster, n.d. Web. 13 Mar. 2018.\n\n\n\nCPF No. 1-2017-1010\nPage 3\nleaving a compressor station in an emergency.”6 At the time of the NYSDPS inspection, the\nnearest ESD activation point to an exit gate at the Station was 60 feet, which is not “a short\ndistance.” Even though the 16 ESD activation points were located near planned evacuation\nroutes, their distances from the exit gates would not necessarily prevent an employee from\nhaving to “head back toward a hazardous area to activate the switches in the event of an\nemergency.”7\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.167(a)(4)(ii) by failing to have an emergency shutdown system operable from at least two\nlocations, each of which is near the exit gates of the fenced compressor station.\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\nrelated series of violations.8\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 $36,200 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $36,200 for Respondent’s violation of 49 C.F.R.\n§ 192.167(a)(4)(ii), for failing to have an emergency shutdown system operable from at least two\nlocations, each of which is near the exit gates of the fenced compressor station. With respect to\ngravity, the Violation Report noted that the “[f]ailure to have an emergency shutdown system\nnear exit gates is a safety concern to all personnel entering the station.”9 AGT argued the\n6 See, In the Matter of MoGas Pipeline, LLC, Final Order, C.P.F. No. 3-2011-1009 (Feb. 22, 2012) (available at\nwww.phmsa.dot.gov/pipeline/enforcement/enforcement-overview).\n7 Id., at 3. AGT acknowledged that § 192.167(a)(4)(i) requires at least ESD points to be operable outside “the gas\narea of the station” and that an ESD activation point located outside a compressor building is not necessarily outside\n“the gas area” that could ignite; however, that requirement is separate from the requirement of § 192.167(a)(4)(ii) at\nissue here.\n8 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).\n9 Pipeline Safety Violation Report (Violation Report) (March 9, 2017) (on file with PHMSA), at 11.\n\n\n\nCPF No. 1-2017-1010\nPage 4\nproposed penalty was not warranted because the safety of the Southeast Compressor Station was\nnot compromised.10 AGT pointed out that there were 16 ESD activation points within the\nStation located near planned emergency evacuation routes.11 However, I find Respondent failed\nto comply with a requirement that was clearly applicable and this failure impacted safety. As\nstated above, the nearest ESD activation point to an exit gate at the Station was 60 feet, which\ndid not ensure that onsite personnel could activate the ESD System from a safe distance before\nleaving the compressor station in an emergency. The proposed penalty already takes into\nconsideration this information, and therefore, no further reduction to the penalty is warranted\nunder this factor.\nThe nature and circumstances of the violation were such that important equipment was missing\nfor a significant amount of time.12 With respect to the degree of Respondent’s culpability, the\nViolation Report noted that the Southeast Compressor Station was originally constructed in 1986\nand did not have ESD activation points near exit gates before the 2015 modifications. Even then,\nAGT did not install ESD activation points near the exit gates as part of the 2015 AIM project.\nTherefore, I find the nature and circumstances of the violation support the proposed penalty\namount. I also find Respondent is culpable for the violation because it failed to install ESD\nactivation points at the time of construction and during modifications to the station.\nWith respect to the good faith of Respondent in attempting to comply with the pipeline safety\nregulations, the Violation Report stated that AGT did not install the ESD activation points during\nthe original construction and AGT continued to operate the station without installing ESD\nactivation points at the exit gates.13 AGT noted that it has installed one new ESD activation\npoint and two new man gates. The new ESD activation point is approximately 11 feet from one\nof the new man gates, and there is an ESD activation point approximately 19 feet from the other\nnew man gate.\nEven though Respondent has now taken steps to comply with the requirement, it did so only after\nlearning of the probable violation. Respondent did not make a clear effort to comply with the\ncited regulation when the violation occurred. Steps taken after PHMSA, or a State agent,\ndiscovers a violation does not generally warrant a penalty reduction for good faith. Therefore, I\nfind AGT did not have a reasonable justification for its non-compliance and a penalty reduction\nis not warranted.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $36,200 for violation of 49 C.F.R. § 192.167(a)(4)(ii).\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\n10 Response, at 2.\n11 Id.\n12 Violation Report, at 9-10.\n13 Id., at 13.\n\n\n\nCPF No. 1-2017-1010\nPage 5\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $36,200 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 192.167(a)(4)(ii). 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. The Director indicates that\nRespondent has taken the following actions specified in the proposed compliance order:\n1. With respect to the violation of § 192.167(a)(4)(ii) (Item 1), Respondent has\ninstalled emergency shutdown system activation points near the exit gates of the\nSoutheast Compressor Station, in accordance with § 192.167(a)(4)(ii).\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The terms and conditions of this Final Order are\neffective upon service in accordance with 49 C.F.R. § 190.5.\nSeptember 7, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":24242}