{"operation":"document","citation":"CPF 120201026W","title":"CRESTWOOD MIDSTREAM PARTNERS LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-07-23","effective_on":null,"summary":"CLOSED warning letter citing 192.481(a), 192.616(i), 192.907(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201026w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201026w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201026w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120201026W","body":"Warning Letter involving CRESTWOOD MIDSTREAM PARTNERS LP. PHMSA's enforcement data identifies the cited regulations as 192.481(a),  192.616(i),  192.907(a). The case was opened on 2020-07-23 and is reported as closed as of 2020-07-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120201026W_Warning Letter_07232020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201026W/120201026W_Warning%20Letter_07232020.pdf\n\n120201026W_Warning Letter_07232020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201026W/120201026W_Warning%20Letter_07232020_text.pdf\n\n120201026W_Warning Letter_07232020_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nJuly 23, 2020\nRobert G. Phillips\nChairman, President and Chief Executive Officer\nCrestwood Equity Partners LP\nExecutive Office\n2440 Pershing Rd., Suite 600\nKansas City, MO 64108\nCPF 1-2020-1026W\nDear Mr. Phillips:\nFrom January 16, 2019 to September 5, 2019, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your records and procedures at Crestwood Midstream Partners LP\n(Crestwood)’s offices in Houston, Texas, and Wyalusing, Pennsylvania.\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 (CFR). The items inspected\nand the probable violations are:\n1. § 192.481 Atmospheric corrosion control: Monitoring.\n(a) Each operator must inspect each pipeline or portion of pipeline\nthat is exposed to the atmosphere for evidence of atmospheric\ncorrosion, as follows:\n\n\n\nCPF 1-2020-1026W\nCrestwood failed to inspect each onshore pipeline or portion of onshore pipeline that is exposed to\nthe atmosphere for evidence of atmospheric corrosion at least once every 3 calendar years, but\nwith intervals not exceeding 39 months.\nDuring the inspection, the PHMSA inspector requested Crestwood to produce both the most recent,\nand any prior, atmospheric corrosion inspection records for its M1S Compressor\nStation. Crestwood produced only one record titled “CNYOG Atmospheric Inspections, Selected\nROWs: PA Stations; Station; Marc1 South;1” that showed an atmospheric corrosion inspection\nwas conducted on November 4, 2016 at M1S Compressor Station. Crestwood stated that the M1S\nCompressor Station was commissioned in November 2012. Thus, the inspection of atmospheric\ncorrosion exceeded 3 calendar years and exceeded 39 months from the time pipeline was\ncommissioned.\nTherefore, Crestwood failed to inspect the onshore pipelines that were exposed to the atmosphere\nat its M1S Compressor Station for evidence of atmospheric corrosion in accordance with the\ninterval prescribed in § 192.481(a).\n2. § 192.616 Public awareness.\n(a) …\n(i) The operator's program documentation and evaluation results\nmust be available for periodic review by appropriate regulatory\nagencies.\nCrestwood failed to have program documentation and evaluation results available for periodic\nreview by appropriate regulatory agencies. Specifically, Crestwood did not have a record of its\nevaluation results in which a third-party evaluated its public awareness program, in five instances.\nAccording to American Petroleum Institute Recommended Practice 1162, 1st edition, December\n2003, (API RP 1162), Subsection 8.5 Summary of Baseline Evaluation Program, Table 8-1 –\nSummary of Baseline Evaluation Program, a self-assessment of implementation evaluation must\nbe conducted annually and an evaluation of effectiveness of program implementation must be\nconducted no more than four years apart.\nAPI RP 1162 states in part:\nSubsection 7.1 Program Documentation …Each operator of a hazardous liquid pipeline\nsystem, natural gas transmission pipeline system, gathering pipeline system or a natural\ngas distribution pipeline system should establish (and periodically update) a written\nPublic Awareness Program designed to cover all required components of the program\ndescribed in this RP. The written program should include: ...\ng. The program evaluation process, including the evaluation objectives, methodology\nto be used to perform the evaluation and analysis of the results, and criteria for program\nimprovement based on the results of the evaluation.…\nSubsection 7.2 Program Recordkeeping …\nThe operator should maintain records of key program elements to demonstrate the level\nof implementation of its Public Awareness Program. Record keeping should include:\n120201026W_Warning Letter_07232020_text Page 2 of 5\n\n\n\nCPF 1-2020-1026W\n… c. All program evaluations, including current results, followup actions and expected\nresults.\n1) Crestwood had no documentation of its results for its annual implementation evaluation for\n2016, 2017 and 2018.\nDuring the week of June 11, 2019, the PHMSA inspector requested Crestwood to provide its\nannual implementation evaluations for 2016 - 2018. According to Crestwood, it used a third-\nparty to conduct the annual implementation evaluations. Subsequently, Crestwood provided\ndocumentation titled Public Awareness Plan Annual Implementation Audit for Crestwood and\nStagecoach Combined for 2016 - 2018. The PHMSA inspector requested Crestwood to provide\nits result of the evaluations. Crestwood indicated that it would review the evaluation but did not\ndocument its review or results from 2016 – 2018. Crestwood did not provide a record to\ndemonstrate it decided a result for the implementation evaluations.\n2) Crestwood had no documentation of results for its four-year effectiveness evaluation for 2014\nand 2018.\nDuring the week of June 11, 2019, the PHMSA inspector requested Crestwood to provide its\neffectiveness evaluations for 2014 and 2018. Crestwood used a third-party to conduct the\neffectiveness evaluations as well. Subsequently, Crestwood provided documentation titled Public\nAwareness Effectiveness Evaluation for 2014 and 2018. Similarly, Crestwood indicated that it did\nnot document its review of the effectiveness evaluation or results for 2014 and\n2018. Notwithstanding Crestwood having no record of the results, Crestwood did not have its\neffectiveness evaluation for 2018 available for the PHMSA inspector during that\nweek. Eventually, Crestwood provided its effectiveness evaluation for 2018 to the PHMSA\ninspector in July 2019. Crestwood did not provide a record to demonstrate it decided a result for\nthe effectiveness evaluations.\nTherefore, Crestwood failed to have program documentation and evaluation results available for\nperiodic review by appropriate regulatory agencies as prescribed in § 192.616(i).\n3. § 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.\n120201026W_Warning Letter_07232020_text Page 3 of 5\n\n\n\nCPF 1-2020-1026W\nCrestwood failed to develop and follow a written integrity management program that contained all\nthe elements described in § 192.911. Additionally, Crestwood failed to make continual\nimprovements to its integrity management program, and evolve its initial framework into a more\ndetailed and comprehensive program.\nDuring the inspection, Crestwood stated that its initial integrity management program was\nimplemented in 2011. Subsequently, Crestwood stated that it identified a covered pipeline\nsegment on its Marc 1 pipeline in 2014.\nThe PHMSA inspector reviewed Crestwood’s integrity management program, which was titled\nMechanical Integrity Program, 49 CFR 192 Subpart O, Pipeline Integrity Management, Revision\n6, Revision Date: 06062018 (Mechanical Integrity Program). The PHMSA inspector noticed\nseveral written procedures contained within the Mechanical Integrity Program did not have\nsufficient information to ensure compliance with the requirements under § 192.911. Moreover,\nCrestwood did not have procedures to address § 192.911(h) in relation to § 192.935(c). At the\ntime of this inspection, Crestwood’s Integrity Management Program did not cross-reference\ndocuments to ensure compliance was covered elsewhere. Based on the foregoing, Crestwood did\nnot ensure that the appropriate written processes were implemented to protect the integrity of its\npipeline located in a high consequence area. As a result, the PHMSA inspector communicated to\nCrestwood, verbally and in writing, that its Mechanical Integrity Program did not have detailed\nwritten processes.\nIn general, Crestwood’s Mechanical Integrity Program did not fully address each element stated\nunder § 192.911 or contain sufficient information on the elements in its integrity management\nprogram. Therefore, Crestwood’s Mechanical Integrity Program failed to conform to the\nrequirements in § 192.907(a).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31,\n2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum\npenalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015,\nthe maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. We have reviewed the circumstances\nand supporting 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 Crestwood Midstream Partners, LP\nbeing subject to additional enforcement action.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you must\nprovide a second copy of the document with the portions you believe qualify for confidential\n120201026W_Warning Letter_07232020_text Page 4 of 5\n\n\n\nCPF 1-2020-1026W\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 1-2020-1026W 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\nCC: Eric Ormond, Vice President, Engineering & Project Management, Crestwood Midstream\nPartners LP (via email)\n120201026W_Warning Letter_07232020_text Page 5 of 5","truncated":false,"body_characters":12037}