{"operation":"document","citation":"CPF 220123002M","title":"ECOELECTRICA L.P. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-05-30","effective_on":null,"summary":"CLOSED notice of amendment citing 193.2017(c), 193.2515, 193.2605(c), 193.2619(b), 193.2619(c), 193.2623(a), 193.2635(d), 193.2637, 193.2713(b), 193.2717(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220123002m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220123002m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220123002m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220123002M","body":"Notice of Amendment involving ECOELECTRICA L.P.. PHMSA's enforcement data identifies the cited regulations as 193.2017(c),  193.2515,  193.2605(c),  193.2619(b),  193.2619(c),  193.2623(a),  193.2635(d),  193.2637,  193.2713(b),  193.2717(b). The case was opened on 2012-05-30 and is reported as closed as of 2012-09-24. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220123002M_closure letter_09242012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123002M/220123002M_closure%20letter_09242012.pdf\n\n220123002M_closure letter_09242012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123002M/220123002M_closure%20letter_09242012_text.pdf\n\n220123002M_notice of amendment_05302012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123002M/220123002M_notice%20of%20amendment_05302012.pdf\n\n220123002M_notice of amendment_05302012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123002M/220123002M_notice%20of%20amendment_05302012_text.pdf\n\n220123002M_Operator_response_06212012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123002M/220123002M_Operator_response_06212012.pdf\n\n220123002M_notice of amendment_05302012_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 30, 2012\nMr. Carlos Reyes\nCo-President & General Manager Operations\nEcoElectrica L.P.\nStreet 337, KM 3.7 Bo Tallaboa Poniente\nPenuelas, PR 00624\nCPF 2-2012-3002M\nDear Mr. Reyes:\nFrom April 23-27, 2012, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Southern Region, Office of Pipeline Safety inspected the\nEcoElectrica, L.P. (EcoElectrica) liquefied natural gas (LNG) written operations and\nmaintenance (O&M) procedures in Penuelas, Puerto Rico, pursuant to Chapter 601 of\n49 United States Code.\nOn the basis of the inspection, PHMSA has identified apparent inadequacies within\nEcoElectrica’s written procedures, as described below:\n1. §193.2017 Plans and procedures.\n. . . (c) Each operator must review and update the plans and procedures required by\nthis part—\n(1) When a component is changed significantly or a new component is installed; and\n(2) At intervals not exceeding 27 months, but at least once every 2 calendar years.\nEcoElectrica did not have LNG plant-related written procedures in its LNG Terminal\nMaintenance Manual that required it to review and update its Part 193-required plans and\nprocedures whenever a component is changed significantly or a new component is\ninstalled; or, at intervals not exceeding 27 months, but at least once every 2 calendar\nyears.\n2. §193.2515 Investigations of failures.\n(a) Each operator shall investigate the cause of each explosion, fire, or LNG spill or\nleak which results in:\n(1) Death or injury requiring hospitalization; or\n(2) Property damage exceeding $10,000.\n\n\n\n(b) As a result of the investigation, appropriate action must be taken to minimize\nrecurrence of the incident.\n(c) If the Administrator or relevant state agency under the pipeline safety laws (49\nU.S.C. 60101 et seq.) investigates an incident, the operator involved shall make\navailable all relevant information and provide reasonable assistance in conducting\nthe investigation. Unless necessary to restore or maintain service, or for safety, no\ncomponent involved in the incident may be moved from its location or otherwise\naltered until the investigation is complete or the investigating agency otherwise\nprovides. Where components must be moved for operational or safety reasons, they\nmust not be removed from the plant site and must be maintained intact to the extent\npracticable until the investigation is complete or the investigating agency otherwise\nprovides.\nEcoElectrica did not have LNG plant-related procedures that required it to follow all the\ninvestigation of failure requirements in §193.2515. That is, EcoElectrica’s Procedure:\nAccident and Incident Report Analysis Number: HS-003 did not convey all the\nrequirements in §193.2515.\n3. §193.2605 Maintenance procedures.\n. . . (c) Each operator shall include in the manual required by paragraph (b) of this\nsection instructions enabling personnel who perform operation and maintenance\nactivities to recognize conditions that potentially may be safety-related conditions\nthat are subject to the reporting requirements of §191.23 of this subchapter.\nEcoElectrica did not have LNG plant-related written procedures in its LNG Terminal\nMaintenance Manual (or any other manual) enabling personnel who perform operation\nand maintenance activities to recognize conditions that potentially may be safety-related\nconditions subject to the reporting requirements in §191.23.\n4. §193.2619 Control systems.\n. . . (b) If a control system is out of service for 30 days or more, it must be inspected\nand tested for operational capability before returning it to service.\nEcoElectrica did not have LNG plant-related written procedures in its LNG Terminal\nMaintenance Manual that required it to inspect and test a control system if the system is\nout of service for 30 days or more.\n5. §193.2619 Control systems.\n. . . (c) Control systems in service, but not normally in operation, such as relief\nvalves and automatic shutdown devices, and control systems for internal shutoff\nvalves for bottom penetration tanks must be inspected and tested once each\ncalendar year, not exceeding 15 months . . . .\nEcoElectrica’s LNG plant-related written procedures in its LNG Terminal Maintenance\nManual for inspecting and testing control systems in service, but not normally in\noperation were inadequate, as follows:\nEcoElectrica’s procedures for inspecting and testing control systems in service, but not\nnormally in operation were inadequate, as follows:\n- EcoElectrica Procedure: Safety Relief Devices Inspection and Testing Number M-048\nand work order procedures allowed for certain LNG facility relief devices to be tested\n2\n\n\n\nor replaced at a frequency of once every three years. §193.2619(c) required relief\nvalves to be inspected and tested once each calendar year, not exceeding 15 months.\n- EcoElectrica’s procedures did not require adequate automatic shutdown device tests\nonce each calendar year, not exceeding 15 months, because they did not require the\ninspection and testing of the distributed control system (DCS) control logic and\noutput signal functionality for shutdown devices. The DCS controls are an integral\ncomponent of the automatic shutdown systems in the LNG plant.\n- Procedure: LNG Terminal Emergency Shutdown Push Buttons Annual Test Number:\nLNGT-056 did not require the push button (initiation) devices to be inspected and\ntested once each calendar year, not exceeding 15 months.\n6. §193.2623 Inspecting LNG storage tanks.\nEach LNG storage tank must be inspected or tested to verify that each of the\nfollowing conditions does not impair the structural integrity or safety of the tank:\n(a) Foundation and tank movement during normal operation and after a major\nmeteorological or geophysical disturbance.\nEcoElectrica’s LNG plant-related written procedures in its LNG Terminal Maintenance\nManual did not require the inspection or testing of the LNG storage tank (Tank T-100)\nafter certain major meteorological or geophysical disturbances to verify that foundation\nand tank movement does not impair the structural integrity or safety of the tank. That is,\nalthough the procedures provided to the PHMSA inspector addressed tank inspection or\ntesting after a seismic event (Procedure: Response to Seismic Events Number: LNGT-\n047), the procedures did not include tank inspection and testing after flooding, tsunami,\nand hurricane events. The LNG plant is in a tsunami evacuation zone.\n7. §193.2635 Monitoring corrosion control.\nCorrosion protection provided as required by this subpart must be periodically\nmonitored to give early recognition of ineffective corrosion protection, including the\nfollowing, as applicable:\n. . . (d) Each component that is protected from atmospheric corrosion must be\ninspected at intervals not exceeding 3 years.\nEcoElectrica’s LNG plant-related written procedures in its LNG Terminal Maintenance\nManual did not require EcoElectrica to inspect each component that is protected from\natmospheric corrosion at intervals not exceeding 3 years. That is, while the on-site\nobservations of the PHMSA inspector and the information provided by the operator\nindicated that EcoElectrica had an effective continuing atmospheric corrosion control\nprogram, EcoElectrica did not provide the required written procedures to perform the\nreferenced inspections within the specified time intervals.\n8. §193.2637 Remedial measures.\nPrompt corrective or remedial action must be taken whenever an operator learns by\ninspection or otherwise that atmospheric, external, or internal corrosion is not\ncontrolled as required by this subpart.\nAlthough on-site observations by the PHMSA inspector and the information provided by\nthe operator indicated that EcoElectrica had an effective corrosion control program,\nEcoElectrica’s LNG plant-related written procedures in its LNG Terminal Maintenance\n3\n\n\n\nManual did not require EcoElectrica to take prompt corrective or remedial action\nwhenever it learns by inspection or otherwise that atmospheric, external, or internal\ncorrosion is not controlled as required by Part 193 Subpart G.\n9. §193.2713 Training: operations and maintenance.\n. . . (b) A written plan of continuing instruction must be conducted at intervals of\nnot more than two years to keep all personnel current on the knowledge and skills\nthey gained in the program of initial instruction.\nEcoElectrica did not have LNG plant-related written procedures in its LNG Terminal\nMaintenance Manual (or any other manual) requiring a written plan of continuing\ninstruction to be conducted at intervals of not more than two years to keep all personnel\ncurrent on the knowledge and skills they gained in the program of initial instruction.\n10. §193.2717 Training: fire protection.\n. . . (b) A written plan of continuing instruction, including plant fire drills, must be\nconducted at intervals of not more than two years to keep personnel current on the\nknowledge and skills they gained in the instruction under paragraph (a) of the\nsection.\nEcoElectrica did not have LNG plant-related written procedures in its LNG Terminal\nMaintenance Manual (or any other manual) requiring plant fire drills (designed to\nprovide personnel hands-on experience in carrying out their duties under the fire\nemergency procedures required by §193.2509) to be conducted at intervals of not more\nthan two years to keep personnel current on the knowledge and skills they gained in the\ninstruction under §193.2717(a). The revised procedures (Procedure: Contingency Plan\nNumber: HS-017) provided to the PHMSA inspector subsequent to the on-site inspection\ndid not fully meet the procedural requirements; such drills must provide personnel\nhands-on experience as indicated above.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised 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\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond\nwithin 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to\nfind facts as alleged in this Notice without further notice to you and to issue a Final Order.\n4\n\n\n\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the\ninadequacies (49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that\nyou submit your amended procedures to my office within 30 days of receipt of this Notice.\nThis period may be extended by written request for good cause. Once the inadequacies\nidentified herein have been addressed in your amended procedures, this enforcement action\nwill be closed.\nIt is requested (not mandated) that EcoElectrica L.P. maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision\nof plans, procedures) and submit the total to Wayne T. Lemoi, Director, Southern Region,\nPipeline and Hazardous Materials Safety Administration. In correspondence concerning this\nmatter, please refer to CPF 2-2012-3002M and, for each document you submit, please\nprovide a copy in electronic format whenever possible.\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n5\n\n220123002M_closure letter_09242012_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 24, 2012\nMr. Carlos Reyes\nCo-President & General Manager Operations\nEcoElectrica L.P.\nStreet 337, KM 3.7 Bo Tallaboa Poniente\nPenuelas, PR 00624\nCPF 2-2012-3002M\nDear Mr. Reyes:\nFrom April 23-27, 2012, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Southern Region, Office of Pipeline Safety inspected the\nEcoElectrica, L.P. (EcoElectrica) liquefied natural gas (LNG) written operations and\nmaintenance (O&M) procedures in Penuelas, Puerto Rico, pursuant to Chapter 601 of\n49 United States Code. As a result of the inspection, PHMSA issued a Notice of Amendment\n(NOA) on May 30, 2012.\nThe PHMSA Southern Region received and reviewed your written response to the NOA dated\nJune 21, 2012. We also received and reviewed your letter (with attachments) dated\nAugust 21, 2012, in which you responded to our comments in a letter to you dated\nJuly 17, 2012. We find EcoElectrica’s responses and amended procedures adequate. This\nletter is to inform you that EcoElectrica has complied with the terms of the NOA and that no\nfurther action is necessary with regards to the NOA. This case is now closed.\nPlease be advised that this letter refers only to the NOA (CPF 2-2012-3002M) and not to any\nother PHMSA pending cases. Also be advised that nothing herein states or implies that\nEcoElectrica’s LNG O&M procedures meet the requirements of the federal pipeline safety\nregulations or that such procedures are approved. The LNG facilities and procedures remain\nsubject to inspection by PHMSA.\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region","truncated":false,"body_characters":15036}