{"operation":"document","citation":"CPF 12020005NOA","title":"BAYONNE ENERGY CENTER, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-07-16","effective_on":null,"summary":"CLOSED notice of amendment citing 192.605(a), 192.907(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020005noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020005noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020005noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12020005NOA","body":"Notice of Amendment involving BAYONNE ENERGY CENTER, LLC. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.907(a). The case was opened on 2020-07-16 and is reported as closed as of 2020-08-19. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12020005NOA_Closure Letter_08192020_(20-172059).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020005NOA/12020005NOA_Closure%20Letter_08192020_(20-172059).pdf\n\n12020005NOA_Closure Letter_08192020_(20-172059)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020005NOA/12020005NOA_Closure%20Letter_08192020_(20-172059)_text.pdf\n\n12020005NOA_Notice of Amendment_07162020_(20-172059).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020005NOA/12020005NOA_Notice%20of%20Amendment_07162020_(20-172059).pdf\n\n12020005NOA_Notice of Amendment_07162020_(20-172059)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020005NOA/12020005NOA_Notice%20of%20Amendment_07162020_(20-172059)_text.pdf\n\n12020005NOA_Operator Response to Notice_07242020_(20-172059).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020005NOA/12020005NOA_Operator%20Response%20to%20Notice_07242020_(20-172059).pdf\n\n12020005NOA_Notice of Amendment_07162020_(20-172059)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nJuly 16, 2020\nThomas Miller\nPresident\nBayonne Energy Center, LLC\n832 Red Oak Lane\nSayreville, NJ 08872\nCPF 1-2020-005-NOA\nDear Mr. Miller:\nFrom April 20 to April 24, 2020, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nBayonne Energy Center, LLC’s (BEC) procedures.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nBEC’s plans or procedures, as described below:\n1. §192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response. For transmission\nlines, the manual must also include procedures for handling abnormal\noperations. This manual must be reviewed and updated by the operator\nat intervals not exceeding 15 months, but at least once each calendar\nyear. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at\nlocations where operations and maintenance activities are conducted.\nBEC’s procedures were inadequate. Specifically, BEC’s Pipeline Operations Maintenance and\nEmergency Manual, Rev 3, April 2020 (O&M Procedure) failed to include details of how BEC\ninspects and evaluates pipe exposed to the atmosphere for atmospheric corrosion in accordance\nwith § 192.4811\n.\n1 Section 192.481 states:\n\n\n\nCPF 1-2020-005-NOA\nDuring the inspection, the PHMSA inspector requested BEC’s procedures regarding atmospheric\ncorrosion inspection. BEC provided its O&M Procedure, which discusses atmospheric corrosion\ncontrol in Section 20.3.4, Atmospheric Corrosion Control. However, the written procedure did\nnot provide any guidance on how an atmospheric corrosion control inspection is conducted and\nwhat criteria is applied when evaluating pipe and coating or jacketing condition.\nWhen the PHMSA inspector requested additional procedures or guidance related to the evaluation\nmethod used for atmospheric corrosion, BEC stated there was no further guidance.\nTherefore, BEC failed to include details in its procedures of its process to inspect and evaluate\natmospheric corrosion on its pipelines in accordance with § 192.481, as required by\n§ 192.605(b)(2). BEC must amend its Procedure to include details of how it inspects and evaluates\npipe exposed to the atmosphere for atmospheric corrosion in accordance with § 192.481.\n2. §192.907 What must an operator do to implement this subpart?\n(a) General. No later than December 17, 2004, an operator of a\ncovered pipeline segment must develop and follow a written integrity\nmanagement program that contains all the elements described in\n§ 192.911 and that addresses the risks on each covered transmission\npipeline segment. The initial integrity management program must\nconsist, at a minimum, of a framework that describes the process for\nimplementing each program element, how relevant decisions will be\nmade and by whom, a time line for completing the work to implement\nthe program element, and how information gained from experience will\nbe continuously incorporated into the program. The framework will\nevolve into a more detailed and comprehensive program. An operator\nmust make continual improvements to the program.\nBEC’s written integrity management program was inadequate. Specifically, BEC’s Pipeline\nIntegrity Management Program, Rev 2, April 2020 (IM Procedure) Section 8.4.4, lacked detail\naddressing § 192.917(b)2 regarding how and what data is currently gathered and integrated for\nintegrity assessments.\n(a) Each operator must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion, as follows:\nIf the pipeline is located: Onshore Offshore Then the frequency of inspection is:\nAt least once every 3 calendar years, but with intervals not exceeding 39 months\nAt least once each calendar year, but with intervals not exceeding 15 months\n(b) During inspections the operator must give particular attention to pipe at soil-to-air interfaces, under thermal\ninsulation, under disbonded coatings, at pipe supports, in splash zones, at deck penetrations, and in spans over water.\n(c) If atmospheric corrosion is found during an inspection, the operator must provide protection against the\ncorrosion as required by Sec. 192.479.\n2 Section 192.917(b) states:\n12020005NOA_Notice of Amendment_07162020_(20-172059)_text Page 2 of 4\n\n\n\nCPF 1-2020-005-NOA\nDuring the inspection, the PHMSA inspector requested BEC’s procedures regarding data gathering\nand integration. BEC provided its IM Procedure, Section 8.4.4 which states, “The most significant\nP&M measure for reducing the ROF scoring on BEC gas transmission pipeline segments is the\ngathering of additional data for variables where the operations, assessments, and activities have\nyet to occur or be recorded because the pipeline is effectively brand new. Data for integrity\nassessments could include any ILI, ECDA, ICDA, pressure test, guided wave, or engineering\nassessment along with the results associated with each assessment. Per §192.917(b), IMTT gathers\nand integrates existing data and information on the entire pipeline that could be relevant to covered\nsegments.”\nHowever, the written procedure did not provide guidance on exactly how data is gathered and\nintegrated, as well as what data is included. When the PHMSA inspector requested if there were\nadditional procedures or guidance related to the data integration, BEC stated they have not yet\nconducted a re-assessment interval on the pipeline, but have no further details in the IM Procedure.\nTherefore, BEC failed to include details in its procedures regarding how and what data is gathered\nand integrated for integrity assessments in accordance with § 192.917(b). BEC must amend its IM\nProcedure to include details on how and what data is gathered and integrated into its integrity\nassessments.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nData gathering and integration. To identify and evaluate the potential threats to a covered pipeline segment, an\noperator must gather and integrate existing data and information on the entire pipeline that could be relevant to the\ncovered segment. In performing this data gathering and integration, an operator must follow the requirements in\nASME/ANSI B31.8S, section 4. At a minimum, an operator must gather and evaluate the set of data specified in\nAppendix A to ASME/ANSI B31.8S, and consider both on the covered segment and similar non-covered segments,\npast incident history, corrosion control records, continuing surveillance records, patrolling records, maintenance\nhistory, internal inspection records and all other conditions specific to each pipeline.\n12020005NOA_Notice of Amendment_07162020_(20-172059)_text Page 3 of 4\n\n\n\nCPF 1-2020-005-NOA\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that Bayonne Energy Center, LLC maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Robert Burrough, Director,\nPHMSA Eastern Region, 840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer\nto CPF 1-2020-005-NOA on each document you submit, and whenever possible provide a signed\nPDF copy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger\nfiles should be sent on USB flash drive accompanied by the original paper copy to the Eastern\nRegion Office.\nAdditionally, if you choose to respond to this (or any other case), please ensure that any response\nletter pertains solely to one CPF case number.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n12020005NOA_Notice of Amendment_07162020_(20-172059)_text Page 4 of 4\n\n12020005NOA_Closure Letter_08192020_(20-172059)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nAugust 19, 2020\nMr. Thomas Miller\nPresident\nBayonne Energy Center, LLC\n832 Red Oak Lane\nSayreville, NJ 08872\nCPF 1-2020-005-NOA\nDear Mr. Miller:\nFrom April 20 to April 24, 2020, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nBayonne Energy Center, LLC’s (BEC) procedures. As a result of the inspection, BEC was issued\na Notice of Amendment on July 16, 2020, which proposed amendment of your procedures.\nBEC submitted its amended procedures on July 24, 2020. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":12135}