{"operation":"document","citation":"CPF 22023015WL","title":"STARRETT BUILDING CO (17263) — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-06-29","effective_on":null,"summary":"CLOSED warning letter citing 191.22(b), 191.22(c)(2)(iii), 192.603(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-22023015wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-22023015wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-22023015wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/22023015WL","body":"Warning Letter involving STARRETT BUILDING CO (17263). PHMSA's enforcement data identifies the cited regulations as 191.22(b),  191.22(c)(2)(iii),  192.603(b). The case was opened on 2023-06-29 and is reported as closed as of 2023-06-29. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n22023015WL_Warning Letter_06292023_(23-271412).pdf: https://primis.phmsa.dot.gov/enforcement-documents/22023015WL/22023015WL_Warning%20Letter_06292023_(23-271412).pdf\n\n22023015WL_Warning Letter_06292023_(23-271412)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/22023015WL/22023015WL_Warning%20Letter_06292023_(23-271412)_text.pdf\n\n22023015WL_Warning Letter_06292023_(23-271412)_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 29, 2023\nMr. Jeffrey P. Biegelsen\nPresident\nStarrett Building Company\n740 S Andrews Avenue\nFort Lauderdale, FL 33316\nCPF 2-2023-015-WL\nDear Mr. Biegelsen:\nFrom April 4 to 5, 2023, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Southern Region, Office of Pipeline Safety (OPS) conducted on-site\npipeline safety inspections of the liquefied petroleum gas (LP-Gas) pipeline systems operated by\nStarrett Building Company (Starrett) in Fort Lauderdale and Hollywood, Florida, pursuant to\nChapter 601 of 49 United States Code (U.S.C.).\nAs a result of the inspection, it is alleged that Starrett 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. § 191.22 National Registry of Operators.\n(a) . . . .\n(b) OPID validation. An operator who has already been assigned one or more\nOPIDs by January 1, 2011, must validate the information associated with each OPID\nthrough the National Registry of Operators at https://portal.phmsa .dot.gov, and\ncorrect that information as necessary, no later than June 30, 2012.\nStarrett Building Company did not comply with the validation requirement outlined in\n191.22(b) for its National Registry Entry. Specifically, the company did not validate the\ninformation associated with its OpID by June 30, 2012, and did not update the information\nin the registry thereafter. As a result, the company did not provide the required operator\n\n\n\nsupplied information regarding PHMSA required safety programs, nor did it supply any\ncontact information for basic Agency-Operator interaction.\n2. § 192.603 General provisions.\n(a) . . . .\n(b) established under § 192.605.\nEach operator shall keep records necessary to administer the procedures\nStarrett Building Company failed to maintain records required by 49 CFR §192.603(b) that\nshowed the abandonment or deactivation of its 47 jurisdictional LP-Gas systems was done in\naccordance with procedures established under § 192.605, specifically the requirements of\n§192.727. Starrett Building Company owned, operated, and ultimately abandoned\njurisdictional LP-Gas systems at properties owned by eight real estate holding companies.\nHowever, the company failed to keep detailed abandonment records for any of the 47\njurisdictional LP-Gas pipeline systems.\nThe following timeline of abandonments was constructed from the limited records Starrett\nmaintained, which primarily consisted of planning documents from the pre-bidding process,\nsupplemented by first-hand accounts and recollections of Starrett personnel.\nIn 2016, Starrett Building Company started the process of abandoning 17 jurisdictional LP-\nGas pipeline systems at the Lenox and Wilson properties. The company hired a contractor to\nset up aboveground containers and replace the buried metallic piping with a minimal amount\nof new buried plastic lines. The work was completed by early 2018.\nIn early 2018, Starrett Building Company began the process of abandoning the remaining 30\njurisdictional LP-Gas systems it operated. The company hired two contractors to do this,\nusing a process similar to the one used at the Lenox and Wilson properties. The first\ncontractor was hired to abandon 20 jurisdictional LP-Gas pipeline systems at its Alden\nManor, Barton, and Collins properties, and the second was hired to abandon 10\njurisdictional LP-Gas pipeline systems at its Alden Hotel, Linden, and Norristown\nproperties. The contractors replaced the buried metallic piping with a minimal amount of\nnew buried plastic lines and installed aboveground containers.\nThe first contractor completed the work at the Alden Manor, Barton, and Collins properties\nby early 2019, with the local permits for the work being closed soon thereafter. The second\ncontractor completed the work at the Alden Hotel, Linden, and Norristown properties by the\nend of 2020. However, the contractor did not close the permits after the work was\ncompleted. Starrett was not aware that the permits had remained open until contacted by the\nlocal permitting authority to close them. At the time of inspection, Starrett was actively\nworking to complete the necessary inspections and close the permits.\n3. § 191.22 National Registry of Operators.\n(a) . . . .\n\n\n\n(b) Changes. Each operator of a gas pipeline, gas pipeline facility, UNGSF, LNG\nplant, or LNG facility must notify PHMSA electronically through the National\nRegistry of Operators at https://portal.phmsa.dot.gov of certain events.\n(1) . . . .\n(2) An operator must notify PHMSA of any of the following events not later than\n60 days after the event occurs:\n(i) . . . .\n(ii) A change in the entity (e.g., company, municipality) responsible for an\nexisting pipeline, pipeline segment, pipeline facility, UNGSF, or LNG facility;\nStarrett Building Company did not comply with the notification requirement outlined in\n191.22(c)(2)(iii) for 47 jurisdictional LP-Gas systems that it no longer operates, including 36\nin Fort Lauderdale, Florida and 11 in Hollywood, Florida. Specifically, for the abandonment\nof these LP-Gas systems, Starrett failed to report the change in the entity responsible for an\nexisting pipeline, pipeline segment, or pipeline facility to PHMSA not later than 60 days\nafter the event, as required by 49 CFR 191.22(c)(2)(iii). This reporting requirement is\nessential for PHMSA's oversight to accurately track and assess the performance of\nindividual operators and ensure the safety of pipeline maintenance and operations, including\nabandonment activities.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a\nrelated series of violations. For violation occurring on or after March 21, 2022 and before\nJanuary 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the\nviolation persists, up to a maximum of $2,391,142 for a related series of violations. For violation\noccurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not\nexceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for\na related series of violations. For violation occurring on or after January 11, 2021 and before\nMay 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related 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.\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 you to correct the items identified in this letter. Failure to do so will result in\nStarrett Building Company being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 2-2023-015-WL. 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, Southern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":9083}