# GULF SOUTH PIPELINE COMPANY, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 220091001
- **title:** GULF SOUTH PIPELINE COMPANY, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2009-01-15
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.751.
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-220091001.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-220091001
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/220091001
**body:**

Notice of Probable Violation involving GULF SOUTH PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulation as 192.751. The case was opened on 2009-01-15 and is reported as closed as of 2011-10-04. Proposed civil penalty: $100,000. Assessed civil penalty: $100,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

220091001_closure letter_10042011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_closure%20letter_10042011.pdf

220091001_closure letter_10042011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_closure%20letter_10042011_text.pdf

220091001_Final Order_07292011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_Final%20Order_07292011.pdf

220091001_Final Order_07292011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_Final%20Order_07292011_text.pdf

220091001_nopv notice_01152009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_nopv%20notice_01152009.pdf

220091001_nopv notice_01152009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_nopv%20notice_01152009_text.pdf

220091001_Operator_Response_Request_Hearing_03202009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220091001/220091001_Operator_Response_Request_Hearing_03202009.pdf

220091001_closure letter_10042011_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
October 4, 2011
Mr. David Goodwin
Vice president, Compliance & Operations Services
Gulf South Pipeline Company, L.P.
9 Greenway Plaza, Suite 2800
Houston, TX 77046
CPF 2-2009-1001
Dear Mr. Goodwin:
On July 29, 2011, pursuant to 49 U.S.C. §60118(b) and 49 CFR §190.213, the Associate
Administrator for Pipeline Safety, Pipeline and Hazardous Materials Safety Administration
(PHMSA) issued a Final Order to Gulf South Pipeline Company, L.P (Gulf South).
The Final Order found that Gulf South had committed a violation of the federal pipeline
safety regulations and included a Compliance Order (CO), which required Gulf South to take
certain actions to protect the public and the environment.
The PHMSA Southern Region has reviewed your letter of September 28, 2011, in response to
the final order and CO. This case is now closed.
Please be advised that this letter refers only to CPF 2-2009-1001 and not to any other PHMSA
pending cases. Also be advised that nothing herein states or implies that the Gulf South
pipeline system meets the requirements of the federal pipeline safety laws or regulations. The
pipeline system remains subject to inspection by PHMSA.
Sincerely,
Wayne T. Lemoi
Director, Office of Pipeline Safety
PHMSA Southern Region

220091001_Final Order_07292011_text.pdf

JUL 29 2011
Mr. David Goodwin
Vice President, Compliance and Operations Services
Gulf South Pipeline Co., L.P.
9 Greenway Plaza, Suite 2800
Houston, TX 77046
Re: CPF No. 2-2009-1001
Dear Mr. Goodwin:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a civil penalty of $100,000, and specifies actions that need to be taken by Gulf
South Pipeline Co., L.P. to comply with the pipeline safety regulations. The penalty payment
terms are set forth in the Final Order. When the civil penalty has been paid and the terms of the
compliance order have been completed, as determined by the Director, Southern Region, this
enforcement action will be closed. Service of the Final Order by certified mail is deemed
effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, Pipeline Safety
Mr. Wayne Lemoi, Director, Southern Region, PHMSA
CERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0075 9695]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Gulf South Pipeline Co., L.P., ) CPF No. 2-2009-1001
)
Respondent. )
____________________________________)
FINAL ORDER
On August 4, 2008, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), initiated
an investigation of an incident involving the pipeline system of Gulf South Pipeline Co., L.P.
(Gulf South or Respondent). Gulf South is an interstate natural gas pipeline system that operates
approximately 7,700 miles of pipeline in Texas, Louisiana, Mississippi, Alabama, and Florida.1
The investigation arose out of an incident that occurred at a compressor station near Harrisville,
Mississippi (Harrisville Compressor Station) on August 2, 2008. During repair of a faulty limit
switch, a flash fire resulted from the ignition of natural gas from a fuel gas blow down. As a
result of the incident, a Gulf South employee sustained burns to his arm, neck, and mouth area
and was hospitalized.
As a result of the inspection, the Director, Southern Region, OPS (Director), issued to
Respondent, by letter dated January 15, 2009, a Notice of Probable Violation, Proposed Civil
Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the
Notice proposed finding that Gulf South violated 49 C.F.R. § 192.751 and proposed assessing a
civil penalty of $100,000 for the alleged violation. The Notice also proposed ordering
Respondent to take certain measures to correct the alleged violation.
hearing on the proposed civil penalty and compliance order. A hearing was subsequently held
via telephone conference on June 3, 2009, with an attorney presiding from the Office of Chief
Gulf South responded to the Notice by letter dated March 20, 2009 (Response)2 and requested a
Counsel, PHMSA. At the hearing, Respondent was represented by in-house counsel.
1 See http://www.gulfsouthpl.com/AboutUsGS.aspx, last accessed June 24, 2011.
2 Gulf South also submitted a Pre-hearing Letter (May 23, 2009), in which it set forth three issues it planned to
address in the hearing.



2
FINDING OF VIOLATION
At the hearing, Gulf South did not contest the allegation in the Notice that it violated 49 C.F.R.
Part 192, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.751, which states:
§ 192.751 Prevention of accidental ignition.
Each operator shall take steps to minimize the danger of accidental
ignition of gas in any structure or area where the presence of gas
constitutes a hazard of fire or explosion, including the following:
(a) When a hazardous amount of gas is being vented into open air,
each potential source of ignition must be removed from the area and a fire
extinguisher must be provided.
(b) Gas or electric welding or cutting may not be performed on pipe
or on pipe components that contain a combustible mixture of gas and air in
the area of work
(c) Post warning signs, where appropriate.
The Notice alleged that Respondent violated 49 C.F.R. § 192.751 by failing to minimize the
danger of accidental ignition of gas in any structure or area where the presence of gas constitutes
a hazard of fire or explosion. Specifically, the Notice alleged that Gulf South’s Operating and
Maintenance (O & M) procedures required that “all necessary precautions [shall] be taken to
prevent electrical arcing and static electricity charges in structures and restricted areas where
there is a potential presence of gas.”3 The Notice further alleged that Respondent failed to
exhaust gas from the fuel gas blow down to an area where the gas could be safely discharged and
installed a non-insulated electrical component in the valve operator electrical pull box. As a
result, when Gulf South’s employee attempted to repair a faulty limit switch, a flash fire resulted
from the interaction of gas escaping from a faulty fuel gas block valve and the improperly
hospitalization.
insulated electrical component.4 Gulf South’s employee sustained minor burns that required
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 192.751 by failing to minimize the
danger of accidental ignition of gas in any structure or area where the presence of gas constitutes
a hazard of fire or explosion.
3 Section 3, Accidental Ignition Prevention, 3.2 Prevention, at 32.
4 Respondent’s Root Cause Investigation Report identified “the probably [sic] root cause of the flash fire [as] the
vent line that exhaust[s] gas from the fuel gas blow down on Engine #3 did not extend to a location where gas may
be discharged without hazard. Contributing factors were 1) electrical wiring installed that did not conform to the
National Electrical Code, ANSI/NFPA 70, so far as that code is applicable, 2) faulty valve closure(s), and 3) non-
conformance to existing procedures and job plan.”



3
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any
related series of violations. In determining the amount of a civil penalty under 49 U.S.C.
§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s
ability to pay the penalty and any effect that the penalty may have on its ability to continue doing
business; and the good faith of Respondent in attempting to comply with the pipeline safety
regulations. In addition, I may consider the economic benefit gained from the violation without
any reduction because of subsequent damages, and such other matters as justice may require.
The Notice proposed a total civil penalty of $100,000 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $100,000 for Respondent’s violation of 49
C.F.R. § 192.751, for failing to minimize the danger of accidental ignition of gas in any structure
or area where the presence of gas constitutes a hazard of fire or explosion. In its response, Gulf
South argues that the proposed penalty is excessive and warrants a reduction.
First, Respondent argues that PHMSA did not appropriately assess the criteria outlined in 49
C.F.R. § 190.225(a). Gulf South argues that the incident occurred “only due to the confluence of
four separate causes [and that] redundant safety procedures . . . minimize[d] the risk of such an
occurrence.”5 However, the evidence shows that at least some of the causal factors that led to
this incident were replicated in at least one other compressor station under Respondent’s
control.
poses a threat to Gulf South’s pipeline system. The faulty wiring that provided the ignition
source for the flash fire are also within Respondent’s control and pose a systemic risk, if repeated
elsewhere. I find Respondent’s characterization of this incident as isolated to be misleading and
conclude that the nature, circumstances, and gravity of this violation are sufficient to support the
penalty, as assessed.
6 The vent lines exhausting fuel gas are one example of a systemic design flaw that
Second, Gulf South asserts that its safety history is devoid of incidents of this type and that its
safety record favors a penalty reduction. In particular, Gulf South notes that it has never
experienced a similar incident or “prior offense[s] of this nature.
operator’s entire safety record for five years preceding issuance of the NOPV.
” 7 PHMSA weighs an
Lastly, Gulf South reiterated the preventative and corrective actions undertaken since the
incident to ensure system-wide safety. According to the Respondent, such actions “are and
should be deemed good faith attempts to achieve complete compliance, both before and after the
August 2, 2008 incident.”8
However, PHMSA considers only those efforts made prior to the
5 See July 6, 2009 Post-hearing Brief (Brief), at 2-3.
6 Gulf South indicates that remedial measures have been taken.
7 Brief, at 3.
8 Brief, at 3.



4
discovery of an offense as a good faith measure. While Gulf South has undertaken a number of
costly remedial measures, operators are charged with the lawful and safe operation of their
systems. Where, as here, an injury occurred due to a violation of the pipeline safety regulations,
operators are not charged with good faith for ex post facto actions.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $100,000 for violation of 49 C.F.R. § 192.751.
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The
Financial Operations Division telephone number is (405) 954-8893.
Failure to pay the $100,000 civil penalty will result in accrual of interest at the current annual
rate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49
C.F.R. § 192.751. At the hearing, Respondent argued that the proposed compliance order was
overly broad, as it required a system-wide review of all operational pull boxes and vent lines.
Gulf South reasoned that the system-wide review should be limited to stations constructed in the
Respondent proposed to review a representative sampling. The Director, Southern Region, has
last five years, as the faulty designs is limited to those facilities.9 As for its older stations,
determined that a system-wide review must be conducted for all stations constructed in the last
five years; for all other stations, a representative sampling will suffice.
Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns
or operates a pipeline facility is required to comply with the applicable safety standards
established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.
§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the
pipeline safety regulations applicable to its operations. Respondent shall:
1. With respect to the violation of § 192.751 (Item 1), Respondent must review the
vents and electric boxes at all compressor stations built within five years from the
date of this order, including those stations built by Respondent’s affiliates (Gulf
9 Gulf South conducted a “high level review of its system-wide facilities and determined that these two design
conditions do not exist within Gulf South’s vintage compressor stations.” March 20, 2009 Letter, at 2.



5
Crossing Pipeline Company and Texas Gas Transmission). In addition,
Respondent must conduct a representative sampling of all Gulf South’s
compressor stations that were built more than five years ago.
2. Gulf South Pipeline Company has 60 days after the receipt of the Final Order to
complete the above item.
3. It is requested that Gulf South Pipeline Company maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and
submit the total to Wayne Lemoi, Director, Southern Region, Pipeline and
Hazardous Materials Safety Administration. It is further requested that costs be
reported in two categories: 1) total cost associated with preparation/revision of
plans, procedures, studies and analyses; and 2) total costs associated with
replacements, additions, and other changes to pipeline infrastructure.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $100,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
Under 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of
this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline
Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA
will accept petitions received no later than 20 days after receipt of service of this Final Order by
the Respondent, provided they contain a brief statement of the issue(s) and meet all other
requirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of
any civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all
other terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

220091001_nopv notice_01152009_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
January 15, 2009
Mr. David Goodwin
Vice President Compliance & Operations
Gulf South Pipeline Company, LP
9 Greenway Plaza, Suite 2800
Houston, Texas 77046
CPF No. 2-2009-1001
Dear Mr. Goodwin:
On August 4, 2008, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an
investigation of the incident (NRC#879372) at the Gulf South Pipeline (GSP) compressor
station in Harrisville, Mississippi. The incident occurred on August 2, 2008 in which an
employee received minor burns and was hospitalized overnight.
As a result of the investigation, it appears that you have committed probable violations as noted
below of pipeline safety regulations, Title 49, Code of Federal Regulations, Part 192. The item
reviewed and the probable violation is:
§192.751 Prevention of accidental ignition.
Each operator shall take steps to minimize the danger of accidental ignition of gas
in any structure or area where the presence of gas constitutes a hazard of fire or
explosion.
The Gulf South Procedures, (OM, Section 3 Accidental Ignition Prevention, 3.2
Prevention Requirements), requires the following:
• All necessary precautions shall be taken to prevent electrical arcing and static
electricity charges in structures and restricted areas where there is a potential
presence of gas.
Gulf South Pipeline Company did not prevent the accidental ignition of gas by
installing a non-insulated electrical component in the pull box. The company’s root



cause investigation also determined that the vent line that exhaust gas from the fuel gas
blow down on Engine #3 did not extend to a location where the gas could be discharged
without hazard.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000
for any related series of violations. The Compliance Officer has reviewed the circumstances
and supporting documentation involved in the above probable violation and has recommended
that you be preliminarily assessed a civil penalty of $100,000.
Proposed Compliance Order
With respect to the above item pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to Gulf
South Pipeline Company, LP. Please refer to the Proposed Compliance Order, which is
enclosed and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Compliance 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). 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 a Final Order.
In your correspondence on this matter, please refer to CPF 2-2009-1001 and for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Linda Daugherty
Director, Southern
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
2



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue Gulf South Pipeline Company a Compliance Order
incorporating the following remedial requirements to ensure the compliance of Gulf South
Pipeline Company with the pipeline safety regulations:
1. In regard to the item in the Notice pertaining to prevention of accidental ignition
required by §192.751, perform a system-wide review of pull boxes in operation, and
identify any improperly insulated electrical component. For a vent line that exhaust gas
from the fuel gas blow down, perform a system-wide review and identify locations
where the discharge of gas may be a potential hazard. Develop a written plan and a
schedule to remedy these deficiencies. Provide the plan to the PHMSA Southern
Region office as indicated in Item 3 below.
2. Gulf South Pipeline Company has 60 days after the receipt of the Final Order to
complete the above item.
3. Gulf South Pipeline Company shall maintain documentation of the safety improvement
costs associated with fulfilling this Compliance Order and submit the total to Linda
Daugherty, Director, Southern Region, Pipeline and Hazardous Materials Safety
Administration. Costs shall be reported in two categories: 1) total cost associated with
preparation/revision of plans, procedures, studies and analyses, and 2) total cost
associated with replacements, additions and other changes to pipeline infrastructure.
3
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