CHEVRON PIPE LINE CO — Warning Letter

220112001W_warning letter_02112011_text.pdf, page 1Official PDFWARNING LETTER CERTIFIED MAIL - RETURN RECEIPT REQUESTED February 11, 2011 Ms. Rebecca Roberts President, Chevron Pipe Line Company 4800 Fournace Place Bellaire, Texas 77401-2324 CPF 2-2011-2001W Dear Ms. Roberts: On September 27 - 30, 2010, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) inspected the Chevron Pipe Line Company (Chevron) records and procedures in Covington, Louisiana, and offshore pipeline facilities in the Gulf of Mexico pursuant to Chapter 601 of 49 United States Code. As a result of the inspection, it appears that Chevron has committed a probable violation of the Pipeline Safety Regulations in Title 49, Code of Federal Regulations. The item inspected and the probable violation is: §192.481 Atmospheric corrosion control: Monitoring. .... (c) If atmospheric corrosion is found during an inspection, the operator must provide protection against the corrosion as required by Sec. 192.479. Chevron did not adequately protect its pipeline facilities against atmospheric corrosion on the Mobile Area Block 908 Platform and at the Main Pass Block 41L Platform. During the inspection, the PHMSA inspector observed and took photographs of significant atmospheric corrosion on pipe bodies, valve bodies, pipe and valve flanges, and on stud nuts used to connect flanges at both platforms. Some stud nuts were flaking due to the corrosion degradation. 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. We have reviewed the circumstances and supporting documents involved in this case, and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to correct the item identified in this letter. Failure to do so will result in Chevron Pipe Line Company being subject to additional enforcement action.#

220112001W_warning letter_02112011_text.pdf, page 2No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 2011-2001W. 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). Sincerely, Wayne T. Lemoi Director, Office of Pipeline Safety PHMSA Southern Region 2#