{"operation":"document","citation":"CPF 120205011M","title":"SHELL PIPELINE CO., L.P. — 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 195.202, 195.214(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120205011m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120205011m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120205011m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120205011M","body":"Notice of Amendment involving SHELL PIPELINE CO., L.P.. PHMSA's enforcement data identifies the cited regulations as 195.202,  195.214(b). The case was opened on 2020-07-16 and is reported as closed as of 2020-08-13. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120205011M_Closure Letter_08132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205011M/120205011M_Closure%20Letter_08132020.pdf\n\n120205011M_Closure Letter_08132020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205011M/120205011M_Closure%20Letter_08132020_text.pdf\n\n120205011M_Notice of Amendment_07162020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205011M/120205011M_Notice%20of%20Amendment_07162020.pdf\n\n120205011M_Notice of Amendment_07162020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205011M/120205011M_Notice%20of%20Amendment_07162020_text.pdf\n\n120205011M_Operator Response to Notice_07272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205011M/120205011M_Operator%20Response%20to%20Notice_07272020.pdf\n\n120205011M_Notice of Amendment_07162020_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nJuly 16, 2020\nGreg Smith\nPresident\nShell Pipeline Co., L.P.\n777 Walker Street (Two Shell Plaza)\nHouston, TX 77002\nCPF 1-2020-5011M\nDear Mr. Smith:\nFrom April 9, 2019 to April 11, 2019, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Shell Pipeline Co., L.P. (Shell)’s Falcon Ethane Pipeline construction project in\nHouston, Texas.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nShell’s plans or procedures, as described below:\n1. § 195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent\nwith the requirements of this part.\nShell’s written specifications or standards for pipeline system construction were inadequate.\nSpecifically, Shell could not provide construction specifications or standards that addressed visual\ninspection of pipelines at the site of installation as it pertains to § 195.206.\nSection 195.206, Material inspection, states:\nNo pipe or other component may be installed in a pipeline system unless it has been\nvisually inspected at the site of installation to ensure that it is not damaged in a manner\nthat could impair its strength or reduce its serviceability.\n\n\n\nCPF 1-2020-5011M\nDuring the inspection, a PHMSA inspector requested construction specifications or standards that\nwould address visual inspection of pipelines at the site of installation as required by §\n195.206. Shell was unable to provide the requested construction specifications or standards.\nThus, Shell's written construction specifications or standards required by § 195.202, as it pertains\nto §195.206, were inadequate. Therefore, Shell’s written construction specifications or standards\nmust be amended to include procedures for the visual inspection of pipelines at the site of\ninstallation.\n2. § 195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent\nwith the requirements of this part.\nShell’s written specifications or standards for pipeline system construction were inadequate.\nSpecifically, Shell could not provide construction specifications or standards that addressed\npipeline location as it pertains to § 195.210.\nSection 195.210, Pipeline location, states:\n(a) Pipeline right-of-way must be selected to avoid, as far as practicable, areas containing\nprivate dwellings, industrial buildings, and places of public assembly.\n(b) No pipeline may be located within 50 feet (15 meters) of any private dwelling, or any\nindustrial building or place of public assembly in which persons work, congregate, or\nassemble, unless it is provided with at least 12 inches (305 millimeters) of cover in\naddition to that prescribed in §195.248.\nDuring the inspection, a PHMSA inspector requested construction specifications or standards that\nwould address pipeline location criteria as it pertain to § 195.210. Shell was unable to provide the\nrequested construction specifications or standards.\nThus, Shell's written construction specifications or standards required by § 195.202, as it pertains\nto § 195.210, were inadequate. Therefore, Shell’s written construction specifications or standards\nmust be amended to include criteria for pipeline location.\n3. § 195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent\nwith the requirements of this part.\nShell's written specifications or standards for pipeline system construction were inadequate.\nSpecifically, Shell could not provide construction specifications or standards that specified what\nremedial actions to take if coating damage is observed during initial horizontal direction drill\n(HDD) pullback out of an exit pit as it pertains to § 195.206.\nSection 195.206, Material inspection, states:\n120205011M_Notice of Amendment_07162020_text Page 2 of 4\n\n\n\nCPF 1-2020-5011M\nNo pipe or other component may be installed in a pipeline system unless it has been\nvisually inspected at the site of installation to ensure that it is not damaged in a manner\nthat could impair its strength or reduce its serviceability.\nDuring the inspection, a PHMSA inspector requested construction standards that would address\ndamage to its coating that might be observed during initial pull-back of a HDD, wherein such\ndamage might eventually impair the pipe’s strength or reduce its serviceability. Shell was unable\nto provide the requested construction specifications or standards.\nThus, Shell's written construction specifications or standards required by § 195.202, as it pertains\nto § 195.206, were inadequate. Therefore, Shell’s written construction specifications or standards\nmust be amended to include procedures for the visual inspection of pipelines at the site of\ninstallation to ensure it is not damaged in a manner that could impair its strength or reduce its\nserviceability.\n4. § 195.214 Welding procedures.\n(a) …\n(b) Each welding procedure must be recorded in detail, including\nthe results of the qualifying tests. This record must be retained and\nfollowed whenever the procedure is used.\nShell’s welding procedures were inadequate. Specifically, Minnesota Limited, LLC Welding\nProcedure Specification MNL-WPS-107; Revision: 0 and Date: 4/1/2019 (MNL_WPS_107) did\nnot provide an accurate, detailed record regarding time between weld passes, as required by API\nStandard 1104 – Welding of Pipelines and Related Facilities, 20th Edition (API 1104), which is\nincorporated by reference.\nDuring the inspection, a PHMSA inspector requested Shell’s welding procedures for review. Shell\nprovided MNL-WPS-107; however, the procedure did not designate the maximum time between\nthe completion of the second bead and the start of other beads.\nAPI 1104, Section 5.3.2.10 states:\nThe maximum time between the completion of the root bead and the start of the second\nbead, as well as the maximum time between the completion of the second bead and the\nstart of other beads, shall be designated.\nOn January 15, 2016, API issued a technical interpretation clarifying the intent of Section 5.3.2.10\nof API 1104 20th edition, stating “Yes, the intent of API 1104, Section 5.3.2.10 is to identify the\nmaximum time between the 1st pass and 2nd pass and the maximum time between the 2nd pass\nand 3rd pass.”\nThus, Shell did not adequately record details of its welding procedure as required by § 195.214 as\nit pertain to API 1104 Section 5.3.2.10 20th edition. Therefore, Shell’s welding procedures must\nbe amended to include the maximum time between the completion of the second bead and the start\nof other beads.\n120205011M_Notice of Amendment_07162020_text Page 3 of 4\n\n\n\nCPF 1-2020-5011M\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).\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 Shell Pipeline Co., L.P. maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, PHMSA Eastern Region,\n840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer to CPF 1-2020-5011M\non each document you submit, and whenever possible provide a signed PDF copy in electronic\nformat. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent on\nUSB flash drive accompanied by the original paper copy to the Eastern Region 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\n120205011M_Notice of Amendment_07162020_text Page 4 of 4\n\n120205011M_Closure Letter_08132020_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nAugust 13, 2020\nMr. Greg Smith\nPresident\nShell Pipeline Co., L.P.\n777 Walker Street (Two Shell Plaza)\nHouston, TX 77002\nCPF 1-2020-5011M\nDear Mr. Smith:\nFrom April 9, 2019 to April 11, 2019, a representative from the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an\non-site pipeline safety inspection of Shell Pipeline Co., L.P. (Shell)’s Falcon Ethane Pipeline\nconstruction project in Houston, Texas. As a result of the inspection, Shell was issued a Notice of\nAmendment on July 16, 2020, which proposed amendment of your procedures.\nShell submitted its amended procedures on July 27, 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":12100}