# ENERGY TRANSFER COMPANY — Notice of Amendment

- **operation:** document
- **citation:** CPF 120195010M
- **title:** ENERGY TRANSFER COMPANY — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-11-26
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.12(e)(1), 195.12(f), 195.402(a), 195.402(c)(3), 195.402(e)(6).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-120195010m
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/120195010M
**body:**

Notice of Amendment involving ENERGY TRANSFER COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.12(e)(1),  195.12(f),  195.402(a),  195.402(c)(3),  195.402(e)(6). The case was opened on 2019-11-26 and is reported as closed as of 2020-03-06. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

120195010M_Closure Letter_03062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195010M/120195010M_Closure%20Letter_03062020.pdf

120195010M_Closure Letter_03062020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195010M/120195010M_Closure%20Letter_03062020_text.pdf

120195010M_Notice of Amendment_11262019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195010M/120195010M_Notice%20of%20Amendment_11262019.pdf

120195010M_Notice of Amendment_11262019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195010M/120195010M_Notice%20of%20Amendment_11262019_text.pdf

120195010M_Operator Response to Notice_01202020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120195010M/120195010M_Operator%20Response%20to%20Notice_01202020.pdf

120195010M_Closure Letter_03062020_text.pdf

OVERNIGHT EXPRESS DELIVERY
March 6, 2020
Mr. Eric Amundsen
Senior VP, Operations
Energy Transfer Company
1300 Main Street
Houston, Texas 77002
CPF 1-2019-5010M
Dear Mr. Amundsen:
From September 10 - 12, 2019, a representative from the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), conducted
an on-site pipeline safety inspection of Energy Transfer Company’s (ETC) procedures for
operations and maintenance in Houston, Texas. As a result of the inspection, ETC was issued a
Notice of Amendment on November 26, 2019, which proposed amendment of your procedures.
On December 27, 2019, ETC requested an extension of time until February 19, 2020 to respond.
On January 2, 2020, PHMSA granted the time extension. ETC submitted its amended procedures
on February 19, 2020. My staff reviewed the amended procedures, and it appears that the
inadequacies outlined in this Notice of Amendment have been corrected.
This letter is to inform you no further action is necessary and this case is now closed. Thank you
for your cooperation.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration

120195010M_Notice of Amendment_11262019_text.pdf

NOTICE OF AMENDMENT
OVERNIGHT EXPRESS DELIVERY
November 26, 2019
Mr. Eric Amundsen
Senior VP, Operations
Energy Transfer Company
1300 Main Street
Houston, Texas 77002
CPF 1-2019-5010M
Dear Mr. Amundsen:
From September 10-12, 2019, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected
Energy Transfer Company (ETC)’s procedures for operations & maintenance in Houston, Texas.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
ETC’s plans or procedures, as described below:
1. § 195.12 What requirements apply to low-stress pipelines in rural areas?
(a) …
(e) Changes in unusually sensitive areas.
(1) If, after June 3, 2008, for Category 1 rural low-stress pipelines or October 1,
2011 for Category 2 rural low-stress pipelines, an operator identifies a new USA that
causes a segment of pipeline to meet the criteria in paragraph (b) of this Section as a
Category 1 or Category 2 rural low-stress pipeline, the operator must:
(i) Comply with the IM program requirement in paragraph (c)(1)(iii)(A) or
(c)(2)(iii)(A) of this Section, as appropriate, within 12 months following the date the
area is identified regardless of the prior categorization of the pipeline; and
(ii) Complete the baseline assessment required by paragraph (c)(1)(iii)(C) or
(c)(2)(iii)(C) of this Section, as appropriate, according to the schedule in
§ 195.452(d)(3).



CPF 1-2019-5010M
ETC’s written procedures for conducting normal operations and maintenance activities and
handling abnormal operations and emergencies for each pipeline system were inadequate.
Specifically, ETC’s procedures failed to require that changes in unusually sensitive areas (USAs)
be handled in accordance with § 195.12(e).
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to § 195.12(e).
ETC provided its Determination of Regulated Gathering Pipelines – HLA.06, dated 04/01/18
(Procedure). The Procedure did not include adequate details which specified ETC’s process to
identify changes in USAs. The PHMSA inspectors asked ETC where the applicable information
was documented and ETC was not able to provide a response.
Therefore, ETC’s procedures failed to include adequate details, per the requirements of
§ 195.12(e).
2. § 195.12 What requirements apply to low-stress pipelines in rural areas?
(a) …
(f) Record Retention. An operator must maintain records demonstrating
compliance with each requirement applicable to the category of pipeline according to
the following schedule.
ETC’s written procedures for conducting normal operations and maintenance activities and
handling abnormal operations and emergencies for each pipeline system were inadequate.
Specifically, ETC’s procedures failed to require records be kept in accordance with § 195.12(f).
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to § 195.12(f).
ETC provided its DOT Record Keeping – HLA.22, dated 04/01/18 (Procedure). ETC does not
have procedures or record requirements for low stress pipelines in rural areas. The PHMSA
inspectors asked ETC where the applicable information was documented and ETC was not able to
provide a response.
Therefore, ETC failed to include adequate details in its procedures, per the requirements of
§ 195.12(f).
3. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline system a
manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies. This manual shall be
reviewed at intervals not exceeding 15 months, but at least once each calendar year,
and appropriate changes made as necessary to insure that the manual is effective.
This manual shall be prepared before initial operations of a pipeline system
commence, and appropriate parts shall be kept at locations where operations and
maintenance activities are conducted.
ETC’s written procedures for conducting normal operations and maintenance activities and
handling abnormal operations and emergencies for each pipeline system were inadequate.
Specifically, ETC’s procedures failed to include sufficient guidance for emergency response
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CPF 1-2019-5010M
supervisors to be knowledgeable of emergency response procedures for which they are
responsible, per the requirements of § 195.403(c).
Section 195.403(c) states:
Each operator shall require and verify that its supervisors maintain a thorough knowledge
of that portion of the emergency response procedures established under § 195.402 for
which they are responsible to ensure compliance.
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to
§ 195.403(c). ETC provided its Emergency Response Training Exercises – HLA.10, dated
02/01/18 (Procedure). The Procedure did not include adequate details on the following:
• Defining Emergency response supervisor role
• Emergency response supervisor training requirements
• Emergency response supervisor knowledge verification requirements
• Training and knowledge verification documentation
During the inspection, the PHMSA inspectors asked ETC where the applicable information was
documented and ETC was not able to provide a response.
Therefore, ETC failed to include guidance in its procedures for emergency response supervisors,
per the requirements of § 195.403(c).
4. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(c) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following to provide safety during
maintenance and normal operations:
(1) …
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
ETC’s written procedures for conducting normal operations and maintenance activities for each
pipeline system were inadequate. Specifically, ETC’s procedures failed to include details
describing the interval and method for performing ultrasonic thickness inspections of breakout
tanks in accordance with the incorporated by reference version of API Standard 653 (API 653) and
§ 195.432(b).
Section 195.432(b) states:
Each operator must inspect the physical integrity of in-service atmospheric and low-
pressure steel above-ground breakout tanks according to API Std 653 (except section
6.4.3, Alternative Internal Inspection Interval) (incorporated by reference, see § 195.3).
However, if structural conditions prevent access to the tank bottom, its integrity may be
assessed according to a plan included in the operations and maintenance manual under
§ 195.402(c)(3). The risk- based internal inspection procedures in API Std 653, section
120195010M_Notice of Amendment_11262019_text Page 3 of 9



CPF 1-2019-5010M
6.4.3 cannot be used to determine the internal inspection interval.
During the inspection, the PHMSA inspectors requested ETC’s procedures for inspecting in-
service breakout tanks, to include performing ultrasonic inspections of tank shells. ETC
provided its Inspection of In-Service Breakout Tanks – HLA.05, dated 04/01/18 (Procedure).
The Procedure Section 4.0 stated, “Every 15 years Max: Ultrasonic inspection.”
The Procedure did not include adequate details on the following:
• Ultrasonic thickness inspection interval when the corrosion rate is not known,
per API 653 Section 6.3.3.2(a)
• Ultrasonic thickness inspection interval when the corrosion rate is known, per
API 653 Section 6.3.3.2(b)
• Process for what is checked/tested during an ultrasonic thickness inspection
Therefore, ETC failed to include adequate details in its procedures that describe the interval and
method for performing ultrasonic thickness inspections of breakout tanks, per the requirements of
§ 195.432(b).
5. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(c) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following to provide safety during
maintenance and normal operations:
(1) …
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
ETC’s written procedures for conducting normal operations and maintenance activities for each
pipeline system were inadequate. Specifically, ETC’s procedures failed to include sufficient
guidance for corrosion control supervisors to maintain a thorough knowledge of corrosion control
procedures for which they are responsible, per the requirements of § 195.555.
Section 195.555 states:
You must require and verify that supervisors maintain a thorough knowledge of that
portion of the corrosion control procedures established under § 195.402(c)(3) for which
they are responsible for insuring compliance.
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to
§ 195.555. ETC provided its Corrosion Control Supervisor Qualifications – HLD.01, dated
04/01/18 (Procedure). The Procedure did not include adequate details on the following:
• Defining corrosion control supervisor role
120195010M_Notice of Amendment_11262019_text Page 4 of 9



CPF 1-2019-5010M
• Corrosion control supervisor training requirements
• Corrosion control supervisor knowledge verification requirements
• Training and knowledge verification documentation
The PHMSA inspectors asked ETC where the applicable information was documented and ETC
was not able to provide a response.
Therefore, ETC failed to include guidance in its procedures for emergency response supervisors,
per the requirements of § 195.555.
6. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(c) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following to provide safety during
maintenance and normal operations:
(1) …
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
ETC’s written procedures for conducting normal operations and maintenance for each pipeline
system were inadequate. Specifically, ETC’s procedures failed to give sufficient guidance to
protect pipelines against damage from fault currents or lightning.
Section 195.575(e) states:
If a pipeline is in close proximity to electrical transmission tower footings, ground
cables, or counterpoise, or in other areas where it is reasonable to foresee fault currents
or an unusual risk of lightning, you must protect the pipeline against damage from fault
currents or lightning and take protective measures at insulating devices.
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to
§ 195.575(e). ETC provided its Induced AC Measurement and Mitigation – HLD.23, dated
04/01/18 (Procedure). The Procedure Section 7.1 stated, “…Note: Corrosion damage from
induced AC on older pipelines is unlikely. AC corrosion may be a concern on newer pipelines with
coating systems such extruded PE and FBE Damage as the result of lightning is usually a result of
“arcing” or “melting” of the metal. A high current flow in a pipeline caused by lightning or fault
currents can cause pipe wall penetration and insulator destruction.”
The Procedure, however, did not give sufficient guidance for determining when protection against
damage from fault currents or lightning is needed and how that protection must be installed.
Therefore, ETC failed to include adequate details in its procedures, per the requirements of
§ 195.575(e).
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CPF 1-2019-5010M
7. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(c) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following to provide safety during
maintenance and normal operations:
(1) …
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
ETC’s written procedures for conducting normal operations and maintenance for each pipeline
system were inadequate. Specifically, ETC’s procedures failed to direct personnel to examine
removed pipe for evidence of internal corrosion in accordance with § 195.579(c).
Section 195.579(c) states:
Removing pipe. Whenever you remove pipe from a pipeline, you must inspect the
internal surface of the pipe for evidence of corrosion. If you find internal corrosion
requiring corrective action under § 195.585, you must investigate circumferentially and
longitudinally beyond the removed pipe (by visual examination, indirect method, or
both) to determine whether additional corrosion requiring remedial action exists in the
vicinity of the removed pipe.
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to
§ 195.579(c). ETC provided its Buried Pipe Inspections – HLD.35, dated 08/01/19 (Procedure).
The Procedure did not provide requirements for ETC to inspect the internal surface of the pipe for
evidence of corrosion whenever pipe is removed from a pipeline. The Procedure also did not
provide details for, if internal corrosion is found, how ETC requires corrective actions under
§ 195.585 to investigate circumferentially and longitudinally beyond the removed pipe (by visual
examination, indirect method, or both) to determine whether additional corrosion requiring
remedial action exists in the vicinity of the removed pipe.
The PHMSA inspectors also reviewed ETC’s Pipeline Inspection G-Form – D.35.A, which is a
form where ETC appears to document the results of internal corrosion inspections of removed
pipe. The G-Form includes a question stating “Was an Internal Inspection Performed?” The G-
Form did not contain any definition or explanation of any evaluation or grading related to internal
corrosion found during pipe inspections, nor did the Procedure.
Therefore, ETC failed to include adequate details in its procedures, per the requirements of
§ 195.402(a).
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CPF 1-2019-5010M
8. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(c) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following to provide safety during
maintenance and normal operations:
(1) …
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
ETC’s written procedures for conducting normal operations and maintenance activities for each
pipeline system were inadequate. Specifically, ETC’s procedures failed to include requirements
for each buried or submerged pipeline to have an external coating for external corrosion control in
accordance with § 195.557(a).
Section 195.557(a) states:
Except bottoms of aboveground breakout tanks, each buried or submerged pipeline must
have an external coating for external corrosion control if the pipeline is -
Constructed, relocated, replaced, or otherwise changed after the applicable date in
§195.401(c), not including the movement of pipe covered by § 195.424;
During the inspection, the PHMSA inspectors requested ETC’s procedures relative to
§ 195.557(a). ETC provided its Buried Pipe Inspections – HLD.35, dated 08/01/19 and
Investigation of Pipeline Anomalies, dated 04/01/18 (Procedure).
The Procedure did not provide requirements for each buried or submerged pipeline to have an
external coating for external corrosion control if the pipeline is constructed, relocated, replaced, or
otherwise changed after the applicable date in § 195.401(c), as required by § 195.557(a). The
PHMSA inspectors asked ETC where the applicable information was documented and ETC was
not able to provide a response.
Therefore, ETC failed to include adequate details in its procedures regarding the requirements of
§ 195.557(a).
9. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(e) Emergencies. The manual required by paragraph (a) of this section must
include procedures for the following to provide safety when an emergency condition
occurs:
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CPF 1-2019-5010M
(1) …
(6) Minimization of public exposure to injury and probability of accidental
ignition by assisting with evacuation of residents and assisting with halting traffic on
roads and railroads in the affected area, or taking other appropriate action.
ETC’s written procedures for conducting normal operations and maintenance activities and
handling abnormal operations and emergencies for each pipeline system were inadequate.
Specifically, ETC’s procedures failed to include details for minimizing public exposure to injury
and probability of accidental ignition in accordance with § 195.402(e)(6).
During the inspection, the PHMSA inspectors requested procedures relative to § 195.402(e)(6).
ETC provided its Field Emergency Response Procedures – HLA.08, dated 11/01/15 (Procedure).
The Procedure failed to include details on minimizing public exposure to injury and probability of
accidental ignition, including provisions for assisting with evacuation of residents and assisting
with halting traffic on roads and railroads in the affected area, or taking other appropriate actions.
Therefore, ETC failed to include adequate guidance in its procedures regarding § 195.402(e)(6).
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as
part of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement
Proceedings. Please refer to this document and note the response options. Be advised that all
material you submit in response to this enforcement action is subject to being made publicly
available. If you believe that any portion of your responsive material qualifies for confidential
treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a
second copy of the document with the portions you believe qualify for confidential treatment
redacted and an explanation of why you believe the redacted information qualifies for confidential
treatment under 5 U.S.C. 552(b).
Following the receipt of this Notice, you have 30 days to submit written comments, revised
procedures, or a request for a hearing under §190.211. If you do not respond within 30 days of
receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice
and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice
without further notice to you and to issue an Order Directing Amendment. If your plans or
procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans
or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this
Notice, we propose that you submit your amended procedures to my office within 60 days of
receipt of this Notice. This period may be extended by written request for good cause. Once the
inadequacies identified herein have been addressed in your amended procedures, this enforcement
action will be closed.
It is requested (not mandated) that Energy Transfer Company maintain documentation of the safety
improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of
plans, procedures) and submit the total to Robert Burrough, Director, PHMSA Eastern Region,
840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer to CPF 1-2019-5010M
on each document you submit, and whenever possible provide a signed PDF copy in electronic
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CPF 1-2019-5010M
format. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent on
USB flash drive accompanied by the original paper copy to the Eastern Region Office.
Additionally, if you choose to respond to this (or any other case), please ensure that any response
letter pertains solely to one CPF case number.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings
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