{"operation":"document","citation":"CPF 320051015","title":"SOUTHERN STAR CENTRAL GAS PIPELINE, INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2005-08-08","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.605(c), 192.619(a), 192.739(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320051015.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320051015.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320051015","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320051015","body":"Notice of Probable Violation involving SOUTHERN STAR CENTRAL GAS PIPELINE, INC. PHMSA's enforcement data identifies the cited regulations as 192.605(c),  192.619(a),  192.739(d). The case was opened on 2005-08-08 and is reported as closed as of 2006-05-17. Proposed civil penalty: $394,000. Assessed civil penalty: $295,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320051015_Final Order_04262006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320051015/320051015_Final%20Order_04262006.pdf\n\n320051015_final order_04262006_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320051015/320051015_final%20order_04262006_text.pdf\n\nCPF_NO_3_2005_1015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320051015/CPF_NO_3_2005_1015.pdf\n\n320051015_final order_04262006_text.pdf\n\nU S oepartment\nof Transportation\nPipeline and\nHazardous Materials Satety\nAdministration\nsag seventh siieei s w\nWashington, D C 20590\nAPB 2 6 i\nMr Bob Bahnick\nSenior Vice-President\nSouthern Star Central Gas Pipeline, Inc\n4700 Highway 56\nOwensboro, KY 42301\nRE CPF No 3-2005-1015\nDear Mr Bahnick\nEnclosed is the Final Order issued by the Associate Admmistrator for Pipeline Safety in\nthe above-referenced case It makes findings of violation and assesses a civil penalty of\n$295, 000 The penalty payment terms are set forth in the Final Order This enforcement action\ncloses automatically upon payment Your receipt of the Final Order constitutes service of that\ndocument under 49 C F R I't 190 5\nJames Reynolds\nPipehne Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc Nicholas Hetman, Counsel for Southern Star\nIvan Huntoon, Director, Central Region, OPS\nCERTIFIEO MAIL - RETIJRN RECEIPT RE UESTEII\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON) D. C 20590\nIn the Matter of\nSouthern Star Central Gas Pipehne, Inc,\nRespondent.\n)\n)\n)\n)\n) CPF No 3-2005-1015\nFINAL ORDER\nOn September 16, 2003, pursuant to 49 U S C 5 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration(PHMSA) initiated an investigation of a report by the\nState of Kansas of an August 5, 2003 incident The incident involved a release of natural gas from\nRespondent's pipehne system As a result of the investigation, the Director, Central Region, OPS,\nissued to Respondent, by letter dated August 8, 2005, a Notice of Probable Violation and\nProposed Civil Penalty (Notice) In accordance with 49 C F R tl 190 207, the Notice proposed\nfinding that Respondent had violated 49 C F R $192 and proposed assessing a civil penalty of\n$394, 000 for the alleged violations\nRespondent responded to the Notice by letter dated, September 8, 2005 (Response) Respondent\ndid not contest the allegations of violation, but offered an explanation and requested that the\nproposed civil penalty be reduced or eliminated Respondent requested a hearing The heanng\nwas held on February 2, 2006 in Kansas City, Missouri\nFINDINGS OF VIOLATION\nUncontested\nRespondent did not contest the alleged violations of 549 C F R $192 in Items 1, 2 and 3 of the\nNotice Accordingly, I find that Respondent violated 49 C F R Part 195, as more fully described\nin the Notice\n49 C F R 5192 605(a) — failure to follow the procedural manual for conducting\noperations and maintenance activities and for emergency response at the Kechi\nHigh Pressure Station\n49 C F R $192 619(a)(1) — failure to operate pipehne components at a pressure\nthat does not exceed the design pressure of the weakest element in a pipeline\nsegment that formed the basis for the established MAOP The Instromet Rotary\n\n\n\nmeter was operated at approximately 350 psig, well in excess of 110% of the MAOP\n49 C F R $192 739 (a-d) — failure to test and inspect once each calendar year, at\nintervals not exceeding 15 months, each pressure limiting station, relief device\n(except rupture discs), and pressure regulating station and its equipment\nRespondent failed to determine that the regulators were in good mechanical\ncondition rehable, and set at the correct pressures The monitor regulator failed\non June 14, 2003, as a result of a foreign oblect in the line\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent\nASSESSMENT OF PENALTY\nUnder 49 U S C 5 60122, Respondent is sublect to a civil penalty not to exceed $100, 000 per\nviolation for each day of the violation up to a maximum of $1, 000, 000 for any related senes of\nviolations The Notice proposed a $394, 000 civil penalty for violations of 49 C F R Part 192\n49 U S C 5 60122 and 49 C F R 5 190 225 require that, in determining the amount of the civil\npenalty, I consider the following criteria nature, circumstances, and gravity of the violation,\ndegree of Respondent's culpabdity, history of Respondent's prior offenses, Respondent's ability\nto pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on\nRespondent's ability to continue in business, and such other matters as Justice may require\nItem I of the Notice proposed a civil penalty of $94, 000 for violation of 49 C F R 5 192 605, as\nRespondent failed to follow procedures for responding to, investigating, and correcting the cause\nof each abnormal operation, including the operation of any safety device, as required by\n5192 605(c)(1) Respondent did not contest the allegation of violation Respondent\nacknowledged that during the penod from November 18, 2002 until June 14, 2003 its personnel\nresponsible for correcting abnormal operating conditions on regulating facilities, inspected the\nfacihties but failed to follow procedures However, Respondent explained that additional\noverpressure protection equipment was in place downstream of the failed regulators Respondent\nsubmitted additional documentation to demonstrate that its facihty serves two distinct distnbution\nsystems Respondent showed that the overpressure protection eqmpment in place downstream\nwas rated for a pressure sufficient to safeguard the facihties from over pressunzation Although\nthe equipment is not owned or maintained by Respondent, it is rated for a pressure sufficient to\nsafeguard the Wichita Heights High School facihty from over pressunzation\nThe pnmary oh)ective of the Federal pipeline safety standards is safe operation of pipeline\nsystems Failure to conduct inspections to find and correct deficiencies could adversely affect\npubhc safety Based upon the testimony and documentation presented by Respondent at the\nhearing, that additional overpressure protection equipment was downstream of the failed\nregulators, it is determined that the proposed civil penalty be reduced from $94, 000 to $70, 000\n\n\n\n3\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $70, 000 for violation of 49 C F R 5 192 605\nItem 2 of the Notice proposed a civil penalty of $200, 000 for violation of 49 C F R\n5192 619(a)(1), as Respondent failed to operate pipehne components at a pressure that does not\nexceed the design pressure of the weakest element in a pipeline segment that formed the basis for\nthe estabh shed MAOP The Instromet Rotary meter was operated at approximately 350 psig, well\nin excess of 110'/o of the MAOP Respondent did not dispute the fact that it failed to hmit the\nschool's\nmaximum allowable operating pressure of its pipehne However, Respondent presented\nmitigating evidence at the heanng to show that the gravity of the release did not extend to\npossible over pres sunzation of the Wichita Heights\nfacilities Therefore, it is determined\nthat the proposed civil penalty be reduced from $200, 000 to $150, 000 The pnmary obl ective of\nthe Federal pipehne safety standards is public safety Failure to operate pipehne components at\na pressure that does not exceed the design pressure of the weakest element in a pipehne segment\ncould adversely affect the safety of the pipehne Accordingly, having reviewed the record and\nconsidered the assessment critena, I assess Respondent a civil penalty of $150, 000 for violation\nof 49 C F R $192 619(a)(1)\nItem 3 of the Notice proposed a civil penalty of $100 000 for violation of 49 C F R 5192 739 (a-\nd), as Respondent failed to inspect and test each pressure hmiting station, rehef device, and\npressure regulating station and its eqmpment at intervals not exceeding 15 months, but at least\nonce each calendar year Respondent acknowledged that it failed to perform an adequate\ninspection of its regulating and overpressure protection eqmpment to determme several factors\nas required by federal regulations Respondent's failure to perform an adequate inspection\nresulted in an unintended release of gas, damage to Respondent's gas facihties, and a service\noutage involving inherent safety nsks\nDunng the hearing, Respondent presented mitigating evidence to show that the gravity of the\nrelease did not extend to possible over pressunzation of the Wicluta Heights school's facthttes\nand that the actual consequences and threats were primanly limited to Respondent's facihties\nTherefore, it is determined that the proposed civil penalty be reduced from $100, 000 to $75, 000\nAccordingly, having reviewed the record and considered the assessment cntena, I assess\nRespondent a civil penalty of $75, 000 for violation of 49 C F R 5192 739\nAccordmgly, having reviewed the record and considered the assessment cntena, I assess\nRespondent a total civil penalty of $295, 000 A determination has been made that Respondent\nhas the ability to pay this penalty without adversely affecting its abihty to continue business\nPayment of the civil penalty must be made wtthtn 20 days of service Federal regulations\n(49 C F R $ 89 21(b)(3)) require this payment be made by wire transfer, through the Federal\nReserve Communications System (Feawtre), to tne account of the U S Treasury Detailed\ninstructions are contained in the enclosure Questions concerning wire transfers should be\ndirected to Financial Operations Division (AMZ-300), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P 0 Box 25082, Oklahoma City, OK 73125, (405) 954-8893\n\n\n\n4\nFailure to pay the $295, 000 civil penalty will result in accrual of interest at the current annual rate\ninaccordance with31U S C ) 3717, 31C FR ) 901 9and49C F R $ 8923 Pursuanttothose\nsame authonties, a late penalty charge of six percent (6%) per annum will be charged if payment\nis not made within 110 days of service Furthermore, failure to pay the civil penalty may result\nin referral of the matter to the Attorney General for appropnate action in a United States Distnct\nCourt\nFailure to comply with this Final Order may result in the assessment of civil penalties of up to\n$100, 000 per violation per day, or in the referral of the case for ludicial enforcement\nUnder 49 C F R 11 '190 215, Respondent has a nght to submit a Petition for Reconsideration of\ntins Final Order The petition must be received within 20 days of Respondent's receipt of tins\nFinal Order and must contain a bnef statement of the issue(s) The filing of the petition\nautomatically stays the payment of any civil penalty assessed However if Respondent submits\npayment for the civil penalty, the Final Order becomes the final administrative decision and the\nnght to petition for reconsideration is waived The terms and conditions of this Final Order are\neff ve on receipt\nAPR 2 8 Z08\nace\nsso\nGe d\nate Administrator\nipeline Safety\nDate Issued\n\n\n\nADDENDUM C\nINSTRUCTIONS FOR ELECTRONIC FUNDS TRANSFER TO\nTHE FEDERAL AVIATION ADMINISTRATION U S DEPARTMENT OF TRANSPORTATION\n1 RECEIVER'S ABA NO 021030004 3 SENDING BANK ARB NO\n(Provided by sending bank)\n5 AMOUNT\n7 RECEIVER NAME TREAS NYC\n9 BENEFICIARY BF - AGENCY\nLOCATION CODE\nBNF=/ ALC 69-14-0001\n2 TYPE SUBTYPE (prov&ded by sendmg bank)\n4 SENDING BANK REF NO\n(Prov&ded by send&ng bank)\n6 SENDING BANK NAME\n(Prov&ded by send&ng bank)\n8 PRODUCTCODK\n(Normally CTR, or as prov&ded by sendmg bank)\n10 REASONS FOR PAYMENT\nExample PHMSA - Case /// Ticket Number/P&pelme\nAssessment number\nINSTRUCTIONS. You, as sender of the wire transfer, must provide the sending bank with the\n&nformat&on for Block (1), (5), (7), (9), and (10) The mformat&on prov&ded &n blocks (I), (7), and\n(9) are constant and rem&un the same for all wire transfers to P&pelme and Hazardous Mater&als\nSafety Adm&n&strat&on, Department of Transportat&on\nBlock ¹I - RECEIVER ABA NO. - 021030004\". Ensure the send&ng bank enters this\nnme-d&git identification number, &t represents the rout&ng symbol for the U S Treasury at the\nFederal Reserve Bank in New York\nBlock ¹5 — AMOUNT — You as the sender prov&de the amount of the transfer Please be sure\nthe transfer amount is punctuated w&th commas and a decimal pomt EXAMPLE, $10, 000 00\nBlock ¹7 - RECEIVER NAME - \"TREAS NYC \" Ensure the sendmg bank enters th&s\nabbrev&at&on, &t must be used for all w&re transfer to the Treasury Department\nBlock ¹9 — BENEFICIARY- AGENCY LOCATION CODE -\"BFN=/ALC69140001\"\nEnsures the sendmg bank enters th&s mformation This &s the Agency Location Code for P&peline\nand Hazardous Mater&als Safety Admmistration, Department of Transportat&on\nBlock ¹10 - REASON FOR PAYMENT - \"AC-payment for PHMSA Case ¹ / To\nensure your w&re transfer is credited properly, enter the case number/t&cket number or P&pehne\nAssessment number, and country \"\nNote. — A wire transfer must comply w&th the format and mstract&ons or the Department cannot\naccept the w&re transfer You, as the sender, can assist th&s process by notifying, at the time you\nseno the wire transrer to the General Account&ng D&vision (405) 954-8893","truncated":false,"body_characters":13703}