{"operation":"document","citation":"CPF 220206002W","title":"FLORIDA POWER & LIGHT CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-09-09","effective_on":null,"summary":"CLOSED warning letter citing 195.3, 195.432(b), 195.452(l)(1)(ii), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220206002w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220206002w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220206002w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220206002W","body":"Warning Letter involving FLORIDA POWER & LIGHT CO. PHMSA's enforcement data identifies the cited regulations as 195.3,  195.432(b),  195.452(l)(1)(ii),  195.589(c). The case was opened on 2020-09-09 and is reported as closed as of 2020-09-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220206002W_Warning Letter_09092020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220206002W/220206002W_Warning%20Letter_09092020.pdf\n\n220206002W_Warning Letter_09092020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220206002W/220206002W_Warning%20Letter_09092020_text.pdf\n\n220206002W_Warning Letter_09092020_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 9, 2020\nMr. Danny Schedule\nSenior Director\nMidstream Operations & Construction\nNextEra Energy, Inc.\n601 Travis Street\nSuite 1900\nHouston, TX 77002\nCPF 2-2020-6002W\nDear Mr. Schedule:\nOn September 16 – 19 and October 15 – October 17, 2019, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected your Florida Power & Light Company (FPL) pipeline system in\nFlorida. FPL is a subsidiary of NextEra Energy, Inc.\nAs a result of the inspection, it is alleged that FPL has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. §195.432 Inspection of in-service breakout tanks.\n(a) …\n(b) Each operator must inspect the physical integrity of in-service atmospheric and\nlow-pressure steel above-ground breakout tanks according to API Std 653 (except\nsection 6.4.3, Alternative Interval Inspection Interval) (incorporated by reference, see\n\n\n\n2. §195.3). However, if structural conditions prevent access to the tank bottom, its\nintegrity may be assessed according to a plan included in the operations and\nmaintenance manual under §195.402(c)(3). The risk-based internal inspection\nprocedures in API Std 653, section 6.4.3 cannot be used to determine the internal\ninspection interval.\nFPL failed to comply with the regulation because it did not inspect the physical integrity of\nan in-service atmospheric above-ground breakout tank according to API Std 653.\nSpecifically, FPL failed to perform an internal inspection of a 500,000-barrel oil tank\n(Tank A) at FPL’s Martin Terminal before it was due in May 2018, the due date established\nby FPL.\nUpon PHMSA inspectors’ request for records documenting the required internal inspection\nof Tank A, FPL personnel informed the inspectors that FPL did not conduct the internal\ninspection. They further explained that Tank A was scheduled to be emptied, abandoned,\nand deconstructed, and that FPL received a waiver from the Florida Department of\nEnvironmental Protection (FDEP), exempting FPL from the inspection requirements of\nAPI Std 653 through December 2020. On or about June 15, 2019, FPL removed all product\nfrom the tank and removed the tank from service.\nThough FDEP granted FPL a waiver of its API Std 653 internal and external inspection\nrequirements, FDEP’s waiver did not exempt FPL from the pipeline safety requirements in\nPart 195, specifically the Part 195 requirement to conduct an internal inspection of the tank\nby the established due date. An operator may request to waive compliance with one or more\nof the Federal pipeline safety regulations by applying for a special permit in accordance with\n§190.341. However, FPL did not apply for a special permit from PHMSA waiving the\nMay 2018 internal inspection requirement for Tank A.\n§195.452 Pipeline integrity management in high consequence areas.\n(a) …\n(l) What records must an operator keep to demonstrate compliance?\n(1) An operator must maintain, for the useful life of the pipeline, records that\ndemonstrate compliance with the requirements of this subpart. At a minimum, an\noperator must maintain the following records for review during an inspection:\n(i) …\n(ii) Documents to support the decisions and analyses, including any modifications,\njustifications, deviations and determinations made, variance, and actions taken to\nimplement and evaluate each element of the integrity management program listed in\nparagraph (f) of this section.\nFPL failed to comply with the regulation because it did not maintain for review during an\ninspection records supporting its analyses and determinations made, variance, and actions\ntaken to implement and evaluate each element of the integrity management program listed in\n§195.452(f). Specifically, FPL did not maintain the following records for review during the\ninspection:\n2\n\n\n\n3. A. Records regarding whether portions of its pipeline system, other than line pipe, could\naffect a high consequence area (HCA), per §195.452(f). At the time of PHMSA’s\ninspection, FPL did not have any records or supporting documentation showing that it\nanalyzed and determined whether a failure at pump stations and breakout tanks could\naffect an HCA.\nB. Records to support additional measures taken to prevent and mitigate the consequences\nof a pipeline failure (“P&M Measures”) that could affect an HCA per §195.452(i).\nAlthough FPL had conducted risk analysis for its 16-inch TMT line, FPL did not\ndocument whether any P&M Measures were considered or taken.\nFPL’s Pipeline Risk Assessment Reports (Risk Reports) dated March 5, 2019, and\nMarch 22, 2018, for its TMT 16-inch Pipeline concluded that “[t]here are no\nrecommended Preventative & Mitigative (PM) Measures by the [Local Risk\nManagement Team] as the existing barriers [on the HCA segments for the TMT-16 in\nline] are deemed sufficient.” Existing barrier(s) listed in the Risk Reports are not\nadditional P&M Measures per §195.452(i).\n§195.589 What corrosion control information do I have to maintain?\n(a) …\n(c) You must maintain a record of each analysis, check, demonstration, examination,\ninspection, investigation, review, survey, and test required by this subpart in sufficient\ndetail to demonstrate the adequacy of corrosion control measures or that corrosion\nrequiring control measures does not exist. You must retain these records for at least 5\nyears, except that records related to §§195.569, 195.573(a) and (b), and 195.579(b)(3)\nand (c) must be retained for as long as the pipeline remains in service.\nFPL failed to comply with the regulation because it did not maintain a record of each\nanalysis, check, demonstration, examination, inspection, investigation, review, survey, and\ntest required by this subpart for at least 5 years in sufficient detail to demonstrate the\nadequacy of corrosion control measures or that corrosion requiring control measures did not\nexist.\nOn or around April 2019, FPL removed the in-line-inspection tool trap (“pig trap”) at its\nMartin Terminal. During PHMSA’s inspection, FPL stated the internal inspection of the pig\ntrap was conducted during the removal project. FPL personnel, however, were unable to\nprovide any documentation or record of the internal corrosion inspection required by\n§195.579.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a\nrelated series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring\n3\n\n\n\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per\nday, with a maximum penalty not to exceed $2,000,000 for a related series of violations.\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 Florida Power & Light Company to correct the items identified in this letter.\nFailure to do so will result in Florida Power & Light Company being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 2-2020-6002W. 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\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nJames A. Urisko\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n4","truncated":false,"body_characters":9045}