{"operation":"document","citation":"CPF 120185008","title":"WILLIAMS FIELD SERVICES — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-01-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.402(c)(3), 199.105(b), 199.225(a)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185008","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120185008","body":"Notice of Probable Violation involving WILLIAMS FIELD SERVICES. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  199.105(b),  199.225(a)(1). The case was opened on 2018-01-18 and is reported as closed as of 2018-12-28. Proposed civil penalty: $192,900. Assessed civil penalty: $171,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120185008_Final Order_12102018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185008/120185008_Final%20Order_12102018.pdf\n\n120185008_Final Order_12102018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185008/120185008_Final%20Order_12102018_text.pdf\n\n120185008_NOPV PCP_01182018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185008/120185008_NOPV%20PCP_01182018.pdf\n\n120185008_NOPV PCP_01182018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185008/120185008_NOPV%20PCP_01182018_text.pdf\n\n120185008_Operator Response to Notice and Request for Hearing (Item 1)_03092018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185008/120185008_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20(Item%201)_03092018.pdf\n\n120185008_Operator Response-Request for Hearing and Preliminary Statement Of Issues_03092018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185008/120185008_Operator%20Response-Request%20for%20Hearing%20and%20Preliminary%20Statement%20Of%20Issues_03092018.pdf\n\n120185008_Final Order_12102018_text.pdf\n\nDecember 10, 2018\nMr. Alan S. Armstrong\nPresident and Chief Executive Officer\nThe Williams Companies, Inc.\nOne Williams Center\nTulsa, OK 74172\nRe: CPF No. 1-2018-5008\nDear Mr. Armstrong:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nWilliams Field Services Company, LLC. It withdraws one of the allegations of violation, makes\nother findings of violation and assesses a reduced civil penalty of $171,300. The penalty\npayment terms are set forth in the Final Order. This enforcement action closes automatically\nupon receipt of payment. Service of the Final Order by certified mail is effective upon the date\nof mailing, 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\nMs. Amy Shank, Director – Pipeline Safety & Asset Integrity, Williams Field Services\nCompany, LLC, One Williams Center, 43-4 ATTN: Amy Shank, Tulsa, OK 74172\nMr. Keith J. Coyle, Counsel for Williams, Babst Calland, 505 9th Street N.W., Suite 700\nWashington, D.C. 20004\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 )\nWilliams Field Services Company, LLC, ) CPF No. 1-2018-5008\na subsidiary of The Williams Companies, Inc., )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nOn February 17, 2015, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an investigation of an accident involving the pipeline system operated by Williams\nField Services Company, LLC (Williams or Respondent), that occurred on February 11, 2015, at\nthe Williams Field Services Houston M&R facility located at 933 Western Avenue in Houston,\nPennsylvania (Accident). The Williams Companies, Inc., the parent company of Williams, owns\nand operates interstate gas pipeline and gathering operations spanning the United States.1\nThe investigation arose out of an over-pressurization event at the Houston M&R facility and the\nrelease of approximately 51 barrels of ethane. As a result of the investigation, the Director,\nEastern Region, OPS (Director), issued to Respondent, by letter dated January 18, 2018, a Notice\nof Probable Violation and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R.\n§ 190.207, the Notice proposed finding that Williams had violated 49 C.F.R. §§ 199.105(b),\n199.225(a)(1), and 195.402(c)(3), and proposed assessing a civil penalty of $192,900 for the\nalleged violations.\nAfter requesting and receiving an extension of time to respond, Williams responded to the Notice\nby letter dated March 9, 2018 (Response). Williams contested one of the allegations, submitted\nadditional information to demonstrate compliance, and requested a hearing on that single item.\nBy letter dated April 13, 2018, Respondent withdrew its request for a hearing after consultation\nwith the Director regarding the information demonstrating compliance, thereby authorizing the\nentry of this Final Order without further notice.\n1 The Williams Companies, Inc. website, available at https://investor.williams.com/williams-partners-lp (last\naccessed October 18, 2018).\n\n\n\nCPF No. 1-2018-5008\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Parts 195 and 199, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 199.105(b), which at the time\nof the Accident stated:\n§ 199.105 Drug tests required.\nEach operator shall conduct the following drug tests for the presence of\na prohibited drug:\n(a) . . .\n(b) Post-accident testing. As soon as possible but no later than 32 hours\nafter an accident, an operator shall drug test each employee whose\nperformance either contributed to the accident or cannot be completely\ndiscounted as a contributing factor to the accident. An operator may decide\nnot to test under this paragraph but such a decision must be based on the\nbest information available immediately after the accident that the\nemployee’s performance could not have contributed to the accident or that,\nbecause of the time between that performance and the accident, it is not\nlikely that a drug test would reveal whether the performance was affected\nby drug use.2\nThe Notice alleged that Respondent violated 49 C.F.R. § 199.105(b) by failing to drug test each\nemployee whose performance either contributed to an accident or could not be completely\ndiscounted as a contributing factor to the accident, as soon as possible but no later than 32 hours\nafter the accident. Specifically, the Notice alleged that Williams drug-tested its Senior Pipeline\nController 36 hours after the Accident, four hours beyond the regulatory deadline.\nIn its Response, Williams contested this allegation of violation, noting that its pipeline controller\nreceived a post-accident drug test within 20 hours of the incident, well within the 32-hour\nregulatory deadline, and providing additional documentation. After reviewing the documents\nprovided in Williams’ response, the Director recommended withdrawal of the allegation of\nviolation.\nAccordingly, after considering all of the evidence, I hereby order the allegation that Williams\nviolated 49 C.F.R. § 199.105(b) be withdrawn.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 199.225(a)(1), which at the\ntime of the Accident stated:\n§ 199.225 Alcohol tests required.\nEach operator shall conduct the following types of alcohol tests for the\npresence of alcohol:\n(a) Post-accident. (1) As soon as practicable following an accident,\neach operator shall test each surviving covered employee for alcohol if that\n2 Section 199.105(b) was subsequently amended on January 23, 2017 (see 82 Fed. Reg. 8001).\n\n\n\nCPF No. 1-2018-5008\nPage 3\nemployee's performance of a covered function either contributed to the\naccident or cannot be completely discounted as a contributing factor to the\naccident. The decision not to administer a test under this section shall be\nbased on the operator’s determination, using the best available information\nat the time of the determination, that the covered employee's performance\ncould not have contributed to the accident.3\nThe Notice alleged that Respondent violated 49 C.F.R. § 199.225(a)(1) by failing to test, as soon\nas practicable following an accident, each surviving covered employee for alcohol if that\nemployee’s performance of a covered function either contributed to the accident or could not be\ncompletely discounted as a contributing factor to the accident. Specifically, the Notice alleged\nthat Williams failed to test the Senior Pipeline Controller who was performing a covered\nfunction during the Accident, for alcohol.\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. § 199.225(a)(1) by failing to test a\ncovered employee for alcohol as soon as practicable following an accident when that employee’s\nperformance of a covered function either contributed to the accident or could not be completely\ndiscounted as a contributing factor to the accident.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(3), which states:\n§ 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and\nemergencies . . . .\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following to\nprovide safety during maintenance and normal operations: . . .\n(3) Operating, maintaining, and repairing the pipeline system in\naccordance with each of the requirements of this subpart and subpart H of\nthis part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(3) by failing to follow its\nown manual of written procedures for operating, maintaining, and repairing the pipeline system\nin accordance with the requirements for pipeline repairs set forth in § 195.422. Specifically, the\nNotice alleged that Williams failed to follow its own System Integrity Plan, Procedure 5.05-\nADM-025 for Lockout/Tagout and the control of hazardous energy sources when it replaced a\nfaulty solenoid valve on valve MOV17 at the Houston M&R facility, resulting in an over-\npressurization at the station.\nRespondent did not contest this allegation of violation.4 Accordingly, based upon a review of all\n3 Section 199.225(a)(1) was amended on January 23, 2017 (see 82 Fed. Reg. 8001).\n4In its Response, Williams noted that it had provided additional employee training regarding Lockout/Tagout\nprocedures, replaced its previous procedure with Procedure 02.10.70.26 – Midstream Lockout Tagout (Control of\n\n\n\nCPF No. 1-2018-5008\nPage 4\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.402(c)(3) by failing to follow its\nmanual of written procedures for repairing the pipeline in accordance with the requirements set\nforth in § 195.422.\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.5\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 $192,900 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $21,600 for Respondent’s violation of 49 C.F.R.\n§ 199.105(b), for failing to conduct post-accident drug tests on each employee whose\nperformance either contributed to the accident or could not be completely discounted as a\ncontributing factor to the accident, as soon as practicable but no later than 32 hours after the\naccident. For the reasons stated above, Item 1 is withdrawn in its entirety. Accordingly, the\nproposed penalty for Item 1 in the amount of $21,600 is not assessed.\nItem 2: The Notice proposed a civil penalty of $21,600 for Respondent’s violation of 49 C.F.R.\n§ 199.225(a)(1) by failing to test, as soon as practicable following the Accident, each surviving\ncovered employee for alcohol if that employee’s performance of a covered function either\ncontributed to the Accident or cannot be completely discounted as a contributing factor to the\nAccident. Williams neither contested the allegation nor presented any evidence or argument\njustifying a reduction in or elimination of the proposed penalty. Although pipeline safety was\nminimally affected by this violation, Williams failed to comply with a requirement that was\nclearly applicable. Accordingly, having reviewed the record and considered the assessment\ncriteria, I assess Respondent a civil penalty of $21,600 for violation of 49 C.F.R.\n§ 199.225(a)(1).\nItem 3: The Notice proposed a civil penalty of $149,700 for Respondent’s violation of 49\nHazardous Energy Sources) and conducted training on the new procedure, and had installed a physical lockout switch\nat the Houston Meter site for local control only.\n5 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. 1-2018-5008\nPage 5\nC.F.R. § 195.402(c)(3), for failing to follow its own manual of written procedures for operating,\nmaintaining, and repairing the pipeline system in accordance with the pipeline repair\nrequirements set forth in § 195.422. Williams neither contested the allegation nor presented any\nevidence or argument justifying a reduction in or elimination of the proposed penalty. I would\nnote that this particular violation was a casual factor to the Accident and Williams failed to\ncomply with a regulatory requirement that was clearly applicable. Accordingly, having reviewed\nthe record and considered the assessment criteria, I assess Respondent a civil penalty of\n$149,700 for violation of 49 C.F.R. § 195.402(c)(3).\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 $171,300.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.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\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 $171,300 civil penalty will result in accrual of interest at the current annual\nrate in 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.\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 the\nFinal Order by Respondent. Any petition submitted must contain a brief statement of the issue(s)\nand meet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically\nstays the payment of any civil penalty assessed. The other terms of the order, including any\ncorrective action, remain in effect unless the Associate Administrator, upon request, grants a\nstay. If Respondent submits payment of the civil penalty, the Final Order becomes the final\nadministrative decision and the right to petition for reconsideration is waived.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 10, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":17088}