{"operation":"document","citation":"CPF 120195007W","title":"BLUE RACER MIDSTREAM, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-07-08","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120195007w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120195007w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120195007w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120195007W","body":"Warning Letter involving BLUE RACER MIDSTREAM, LLC. PHMSA's enforcement data identifies the cited regulation as 195.402(a). The case was opened on 2019-07-08 and is reported as closed as of 2019-07-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120195007W_Operator Response to Notice_08162019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195007W/120195007W_Operator%20Response%20to%20Notice_08162019.pdf\n\n120195007W_Warning Letter_07082019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195007W/120195007W_Warning%20Letter_07082019.pdf\n\n120195007W_Warning Letter_07082019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195007W/120195007W_Warning%20Letter_07082019_text.pdf\n\n120195007W_Warning Letter_07082019_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nJuly 8, 2019\nMr. Steven Green\nSr. Vice President, Engineering & Construction\nBlue Racer Midstream, LLC\n5949 Sherry Lane\nSuite 1300\nDallas, TX 75225\nCPF 1-2019-5007W\nDear Mr. Green:\nFrom May 15-19, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected Blue Racer Midstream, LLC’s (Blue Racer) pipeline system in\nOhio and West Virginia.\nAs a result of the inspection, PHMSA issued to Blue Racer a Notice of Probable Violation and\nProposed Civil Penalty (Notice) on November 24, 2017. Blue Racer responded to the Notice on\nDecember 21, 2017, in which it contested the items in the Notice and requested a hearing.\nSubsequently, Blue Racer raised questions about the jurisdictional status and operating\nclassification of the B2N pipeline in its pre-hearing brief filed on April 23, 2018. The Notice was\nsubsequently withdrawn to allow PHMSA sufficient time to gather and review additional data\npertaining to the operating classifications of the B2N pipeline as it pertained to this case.\nAfter further review of the classification issue, PHMSA has concluded that the B2N pipeline\ncurrently operates as a gathering line containing segments of non-regulated rural gathering\npipeline, segments of regulated rural gathering pipeline subject to the specific safety requirements\nfound in § 195.11(b), and segments of non-rural gathering pipeline subject to all requirements of\n49 CFR Part 195. Specifically, these non-rural gathering pipeline segments of the B2N pipeline\ninclude a total of approximately 2660’ of pipeline that pass through an Other Population Area\n(OPA) in and around the village of Clarington, Ohio.\n\n\n\nCPF 1-2019-5007W\nThe original Notice and associated CPF 1-2017-5027 have been closed, as indicated by separate\ncorrespondence dated July 8, 2019.\nBased on this conclusion, with respect to the non-rural gathering pipeline segments, which are\nsubject to all the requirements of 49 CFR Part 195, it is alleged that you have committed probable\nviolations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The\nitems inspected and the probable violation(s) are:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to ensure that the manual is effective…\nBlue Racer failed to review and update its procedures for operations, maintenance and emergencies\nat intervals not exceeding 15 months, but at least once each calendar year, during calendar years\n2015 and 2016.\nDuring the inspection, the PHMSA inspector reviewed Blue Racer’s records of review of its\nmanuals pertaining to Subparts F and H requirements of 49 C.F.R. Part 195. The following table\nsummarizes the data present in these records:\nBlue Racer Manual Name 2015 Review 2016 Review Count of missed\nannual reviews:\nOperations & Maintenance\n/Emergency Plan V.17.01 No Review No Review 2\nCorrosion Control\n(Part of the OM&E Manual) No Review No Review\nControl Room Management V 3.0\n(Part of the OM&E Manual) No Review No Review\nPublic Awareness Program V.1\n(Part of the OM&E Manual) 2/6/15 No Review\nIntegrity Management Plan V.1\n(Part of the OM&E Manual) 11/2/15 No Review\nEmergency Procedures V 17.01\n(Part of the OM&E Manual) No Review No Review\nTotal: 6 OM&E Manual sections Total: 2\nTherefore, Blue Racer failed to review or update its procedures for operation, maintenance and\nemergencies at intervals not exceeding 15 months, but at least once per calendar year in 2 instances\nduring 2015 and 2016.\n120195007W_Warning Letter_07082019_text Page 2 of 3\n\n\n\nCPF 1-2019-5007W\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related\nseries of violations. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to\nexceed $2,000,000 for a related series of violations. We have reviewed the circumstances and\nsupporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct the\nitem(s) identified in this letter. Failure to do so will result in Blue Racer being subject to additional\nenforcement action.\nPlease be advised that all material you submit in response to this enforcement action is subject to\nbeing 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\nmust provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\nNo reply to this letter is required. If you choose to reply, please submit all correspondence in this\nmatter to Robert Burrough, Director, PHMSA Eastern Region, 840 Bear Tavern Road, Suite 300,\nWest Trenton, NJ 08628. Please refer to CPF 1-2019-5007W on each document you submit, and\nwhenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed\nto robert.burrough@dot.gov. Larger files should be sent on USB flash drive accompanied by the\noriginal paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120195007W_Warning Letter_07082019_text Page 3 of 3","truncated":false,"body_characters":7061}