{"operation":"document","citation":"CPF 220141002","title":"LEAF RIVER ENERGY CENTER LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-02-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(a), 192.465(b), 192.475(a), 192.605(a), 192.605(b)(5), 192.709(c), 192.743(a), 192.805, 192.805(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220141002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220141002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220141002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220141002","body":"Notice of Probable Violation involving LEAF RIVER ENERGY CENTER LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.465(b),  192.475(a),  192.605(a),  192.605(b)(5),  192.709(c),  192.743(a),  192.805,  192.805(b). The case was opened on 2014-02-20 and is reported as closed as of 2015-09-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220141002_closure letter_09222015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_closure%20letter_09222015.pdf\n\n220141002_closure letter_09222015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_closure%20letter_09222015_text.pdf\n\n220141002_Final Order_04172015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_Final%20Order_04172015.pdf\n\n220141002_Final Order_04172015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_Final%20Order_04172015_text.pdf\n\n220141002_nopv_pco_02202014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_nopv_pco_02202014.pdf\n\n220141002_nopv_pco_02202014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_nopv_pco_02202014_text.pdf\n\n220141002_Operator_Response_03212014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220141002/220141002_Operator_Response_03212014.pdf\n\n220141002_Final Order_04172015_text.pdf\n\nApril 17, 2015\nMr. Mark A. Fullerton\nChief Executive Officer\nLeaf River Energy Center, LLC\n17350 State Highway 249, Suite 220\nHouston, TX 77064\nRe: CPF No. 2-2014-1002\nDear Mr. Fullerton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Leaf River Energy Center, LLC, to\ncomply with the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Southern Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Wayne T. Lemoi, Director, Southern Region, OPS\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nLeaf River Energy Center, LLC, ) CPF No. 2-2014-1002\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn October 14-17, 2013, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Leaf River Energy\nCenter, LLC (Leaf River or Respondent), in Taylorsville, Mississippi. Leaf River’s facilities\nconsist of multiple salt caverns used for natural gas storage, with related pipeline infrastructure\nin Mississippi.\n1\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated February 20, 2014, a Notice of Probable Violation and Proposed\nCompliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that Leaf River committed\nvarious violations of 49 C.F.R. Part 192 and proposed ordering Respondent to take certain\nmeasures to correct the alleged violations. The warning items required no further action, but\nwarned the operator to correct the probable violation or face possible enforcement action.\nLeaf River responded to the Notice by letter dated March 21, 2014 (Response).2 The company\ndid not contest the allegations of violation (except for one of the warning items discussed below)\nbut provided information concerning the corrective actions it had taken in response to the Notice.\nRespondent did not request a hearing and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Leaf River did not contest the allegations in the Notice that it violated 49 C.F.R.\n1 http://leafriverenergycenter.com/facility-overview/ (last accessed on January 16, 2015).\n2 Leaf River sent an Amended Response by letter on May, 9 2014, and another letter with its revised procedures on\nSeptember 22, 2014.\n\n\n\nCPF No. 2-2014-1002\nPage 2\nPart 192, as follows:\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.475(a), which states:\n§ 192.475 Internal corrosion control: General.\n(a) Corrosive gas may not be transported by pipeline, unless the\ncorrosive effect of the gas on the pipeline has been investigated and\nsteps have been taken to minimize internal corrosion.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.475(a) by transporting corrosive\ngas by pipeline without investigating the corrosive effect of the gas and taking steps to minimize\ninternal corrosion. Specifically, the Notice alleged that Leaf River failed to investigate the\ncorrosive effect of gas on that portion of its pipeline between the compressor station and the\nstorage caverns or on its storage-field piping. In addition, the Notice alleged that Respondent\nfailed to take any steps to minimize internal corrosion.\nRespondent did not contest this allegation of violation.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 192.475(a) by transporting corrosive gas by pipeline without investigating the corrosive\neffect of the gas and taking steps to minimize internal corrosion.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(b)(5), which states:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) . . .\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following, if\napplicable, to provide safety during maintenance and operations.\n(1) . . .\n(5) Starting up and shutting down any part of the pipeline in a manner\ndesigned to assure operation within the MAOP limits prescribed by this\npart, plus the build-up allowed for operation of pressure-limiting and\ncontrol devices.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(b)(5) by failing to include in\nits written operations and maintenance manual a procedure for starting up and shutting down any\npart of the pipeline in a manner designed to assure operation within the Maximum Allowable\nOperating Pressure (MAOP) limits for the pipeline prescribed by Part 192, plus the build-up\nallowed for operation of pressure-limiting and control devices. Specifically, the Notice alleged\nthat Leaf River had no procedures for start-up and shut-down that would allow for operation of\nits pipelines within MAOP limits. Respondent’s existing procedure, Section 2.9 Pipeline\nShutdown/Startup Procedures,\n3 allegedly stated only that procedures should be developed by\n3 Pipeline Safety Violation Report (Violation Report), (February 20, 2014)(on file with PHMSA), at Exhibit A.\n\n\n\nCPF No. 2-2014-1002\nPage 3\nlocal supervisory personnel. However, PHMSA alleged that no local procedures were available\nat the time of the OPS inspection or provided by the operator thereafter.\nRespondent did not contest this allegation of violation.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 192.605(b)(5) by failing to include in its written operations and maintenance manual a\nprocedure for starting up and shutting down any part of the pipeline in a manner designed to\nassure operation within the prescribed MAOP limits.\nItem 7: The Notice alleged that Respondent violated 49 C.F.R. § 192.743(a), which states:\n§ 192.743 Pressure limiting and regulating stations: Capacity of\nrelief devices.\n(a) Pressure relief devices at pressure limiting stations and pressure\nregulating stations must have sufficient capacity to protect the facilities to\nwhich they are connected. Except as provided in § 192.739(b), the\ncapacity must be consistent with the pressure limits of § 192.201(a). This\ncapacity must be determined at intervals not exceeding 15 months, but at\nleast once each calendar year, by testing the devices in place or by review\nand calculations.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.743(a) by failing to maintain\nsufficient capacity for certain pressure relief devices at pressure limiting stations and pressure\nregulating stations to protect the facilities to which they were connected. Specifically, the Notice\nalleged that, as shown in Leaf River’s 2012 and 2013 inspection records, certain relief valve\ncapacities were less than what was required under the company’s own standards.4\nRespondent did not contest this allegation of violation.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 192.743(a) by failing to maintain sufficient capacity for certain pressure relief devices\nat pressure limiting stations and pressure regulating stations to protect the facilities to which they\nwere connected.\nItem 8: The Notice alleged that Respondent violated 49 C.F.R. § 192.805, which states, in\nrelevant part:\n§ 192.805 Qualification program.\nEach operator shall have and follow a written qualification program.\nThe program shall include provisions to:\n(a) Identify covered tasks;\n(b) Ensure through evaluation that individuals performing covered\ntasks are qualified; . . . .\n4 Id., at 8.\n\n\n\nCPF No. 2-2014-1002\nPage 4\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.805 by failing to identify covered\ntasks and to ensure through evaluation that individuals performing covered tasks were qualified.\nSpecifically, PHMSA alleged that Leaf River failed to determine, for the other pipeline\ncompanies that operate and maintain part of Respondent’s system, the covered tasks performed\nby these other companies’ personnel and whether or not those individuals performing covered\ntasks were qualified.5\nIn its Response, Leaf River indicated it had reviewed all of its interconnection agreements with\nother pipeline operators and determined what equipment was owned and operated by Leaf River,\nwhat was owned and operated by other operators, and what might be owned by one company but\noperated by another. In its September 22, 2014 letter, it revised its earlier statement, indicating\nthat Leaf River now owned and operated all of the components for each of its meter stations with\nother operators, with the exception of the Gulf South Meter Station. According to Leaf River, it\nwas still attempting to assume ownership and control over that one facility.6\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 192.805 by failing to identify covered tasks and ensure through evaluation that\nindividuals performing covered tasks are qualified.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 3, 5, 7 and 8 in the Notice, for\nviolations of 49 C.F.R. §§ 192.475(a), 192.605(b)(5), 192.743(a), and 192.805 respectively.\nUnder 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns\nor operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.\n§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 192.475(a) (Item 3), Respondent must:\n(a) Investigate the corrosive effects of gas on its pipeline between the compressor\nstation and storage caverns and on storage-field piping within 30 days of\nreceipt of the Final Order;\n(b) Determine what, if any, steps are necessary to minimize internal corrosion on\nthe pipelines between the compressor station and the storage caverns and\nstorage-field piping, based on its investigation of the corrosive effects of the\ngas in Item 1(a) above, within 60 days of receipt of the Final Order; and\n5 Id., at 11.\n6 Letter from Gary L. Jones, SVP, Engineering & Operations, Leaf River Energy Center, LLC, to Wayne T. Lemoi,\nDirector, OPS, Southern Region, dated September 22, 2014 (on file with PHMSA), at 4.\n\n\n\nCPF No. 2-2014-1002\nPage 5\n(c) Implement any steps identified as necessary to minimize internal corrosion on\nthe pipelines between the compressor station and the caverns or storage-field\npiping, as determined in Item 1(b), within 120 days of receipt of the Final\nOrder.\n2. With respect to the violation of § 192.605(b)(5) (Item 5), Respondent must\ndevelop and maintain written procedures for starting up and shutting down its\npipeline to assure operation within the MAOP limits, plus build-up allowed for\noperation of pressure-limiting and control devices, within 30 days of receipt of the\nFinal Order.\n3. With respect to the violation of § 192.743(a) (Item 7), Respondent must perform\ncapacity calculations for each installed pressure relief device to demonstrate that the\nrelief device meets the capacity requirements for the conditions under which it\noperates, within 30 days of receipt of the Final Order.\n4. With respect to the violation of § 192.805 (Item 8), Respondent must:\n(a) Determine the Operator Qualification (OQ) covered tasks performed by\nother pipeline company personnel on facilities that are part of Respondent’s\npipeline system and that affect the operation or integrity of Leaf River’s\npipeline; and\n(b) Ensure that all personnel performing OQ covered tasks on Respondent’s\nfacilities that affect the operation or integrity of Leaf River’s pipeline are\nqualified or directed and observed by a qualified individual.\nItem 4 must be completed within 30 days of receipt of the Final Order.\n5. Leaf River must provide written documentation that all items have been completed\nto the Director, Southern Region, OPS within 150 days of receipt of the Final Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\n\n\n\nCPF No. 2-2014-1002\nPage 6\nWARNING ITEMS\nWith respect to Items 1, 2 and 6, the Notice alleged probable violations of Part 192 but did not\npropose a civil penalty or compliance order for these items7\n. Therefore, these are considered to\nbe warning items. The warnings were for:\n49 C.F.R. § 192.465(a) (Item 1) ─ Respondent’s alleged failure to test each\npipeline that is under cathodic protection at least once each year, but with\nintervals not exceeding 15 months; and\n49 C.F.R. § 192.465(b) (Item 2) ─ Respondent’s alleged failure to inspect each\ncathodic protection rectifier six times each calendar year, but with intervals not\nexceeding 2½ months.\n49 C.F.R. § 192.709(c) (Item 6) ─ Respondent’s alleged failure to maintain a\nrecord of each patrol, survey, inspection, and test required for at least five years or\nuntil the next inspection or test was completed, whichever was longer.\nLeaf River presented information in its Response showing that it had taken certain actions to\naddress the cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n7 The region withdrew the warning for Item 4.\n\n220141002_closure letter_09222015_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 22, 2015\nMr. Mark Fullerton\nChief Executive Officer\nLeaf River Energy Center, LLC\n2500 Citywest Blvd., Suite 1050\nHouston, Texas 77042\nCPF 2-2014-1002\nDear Mr. Fullerton:\nOn April 17, 2015, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice of Pipeline Safety (OPS) issued Leaf River Energy Center, LLC (LREC) a Final Order\nwith an attached Compliance Order (CO) in the above referenced case. The CO required\nLREC to undertake certain actions to ensure compliance with the federal pipeline safety\nregulations.\nOn June 10, 2015, LREC provided written notification and documentation that it had\ncompleted CO Items 1, 2, and 3. On September 2, 2015, LREC provided written notification\nthat it had completed all the requirements of the CO.\nBased on our review of the actions taken by LREC and the supporting documentation we have\ndetermined that LREC has complied with the terms of the CO and the Final Order. This case\nis now closed and no further action is necessary with respect to the matters involved in this\ncase.\nPlease refer to CPF 2-2014-1002 in any correspondence referring to this matter. If you have\nany questions on any other pipeline safety issue, please contact my office at (404) 832-1147.\nSincerely,\nJames A. Urisko\nActing Director, Office of Pipeline Safety\nPHMSA Southern Region","truncated":false,"body_characters":17585}