{"operation":"document","citation":"CPF 12025003WL","title":"PANHANDLE EASTERN PIPELINE CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-28","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025003wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025003wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025003wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12025003WL","body":"Warning Letter involving PANHANDLE EASTERN PIPELINE CO. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2025-05-28 and is reported as closed as of 2025-05-28. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12025003WL_Operator Response to Notice_07012025_(24-296382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025003WL/12025003WL_Operator%20Response%20to%20Notice_07012025_(24-296382).pdf\n\n12025003WL_Warning Letter_05282025_(24-296382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025003WL/12025003WL_Warning%20Letter_05282025_(24-296382).pdf\n\n12025003WL_Warning Letter_05282025_(24-296382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025003WL/12025003WL_Warning%20Letter_05282025_(24-296382)_text.pdf\n\n12025003WL_Warning Letter_05282025_(24-296382)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL: gregory.mcilwain@energytransfer.com\nMay 28, 2025\nMr. Gregory McIlwain\nPresident & Chief Executive Officer\nPanhandle Eastern Pipeline Company, LP\n1300 Main Street\nHouston, Texas 77002\nCPF 1-2025-003-WL\nDear Mr. McIlwain:\nFrom April 23 to April 25, 2024 a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) conducted\nan onsite inspection of Panhandle Eastern Pipeline Company, LP’s (PEPC) Howell Underground\nNatural Gas Storage in Livingston, Michigan.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n(1) …\n(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an\naquifer reservoir for natural gas storage and was constructed on or\nbefore July 18, 2017, must meet the provisions of API RP 1171\n(incorporated by reference, see §192.7), sections 8, 9, 10, and 11, and\nparagraph (c) of this section, by January 18, 2018, and must meet all\nprovisions of paragraph (d) of this section by March 13, 2021.\n\n\n\nPEPC failed to meet the provisions of American Petroleum Institute Recommended Practice 1171\n(API RP 1171), Section 9. Specifically, PEPC failed to perform annual master valve function and\nisolation tests of Well Holcomb 1-27 in accordance with API RP 1171, Section 9.3.2 (Section\n9.3.2).\nSection 9.3.2 states in part, “[t]he operator shall test the operation of the master valve and wellhead\npipeline isolation valve at least annually for proper function and ability to isolate the well.”\nDuring the inspection, PHMSA reviewed PEPC’s records of wellhead valve operation testing.\nPEPC stated they did not perform master valve function and isolation testing of Well Holcomb 1-\n27 due to the subsurface safety valve tubing coming through the master valve. The well is\nscheduled to have workover in 2025 to remove the tubing.\nTherefore, PEPC failed to test the operation of the master valve and wellhead pipeline isolation\nvalve at least annually as required by Section 9.3.2 pursuant to § 192.12(b)(2).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a related\nseries of violations. For violation occurring on or after December 28, 2023 and before December\n30, 2024, the maximum penalty may not exceed $266,015 per violation per day the violation\npersists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring\non or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related\nseries of violations. For violation occurring on or after March 21, 2022 and before January 6, 2023,\nthe maximum penalty may not exceed $239,142 per violation per day the violation persists, up to\na maximum of $2,391,142 for a related series of violations. For violation occurring on or after\nMay 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134 per\nviolation per day the violation persists, up to a maximum of $2,251,334 for a related series of\nviolations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item identified in this letter. Failure to do so will result in\nPanhandle Eastern Pipeline Company, LP being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2025-003-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":6037}