# SOUTHERN STAR CENTRAL GAS PIPELINE, INC — Notice of Probable Violation

- **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:** Not available
- **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
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- **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.

Official case documents:

320051015_Final Order_04262006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320051015/320051015_Final%20Order_04262006.pdf

320051015_final order_04262006_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320051015/320051015_final%20order_04262006_text.pdf

CPF_NO_3_2005_1015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320051015/CPF_NO_3_2005_1015.pdf

320051015_final order_04262006_text.pdf

U S oepartment
of Transportation
Pipeline and
Hazardous Materials Satety
Administration
sag seventh siieei s w
Washington, D C 20590
APB 2 6 i
Mr Bob Bahnick
Senior Vice-President
Southern Star Central Gas Pipeline, Inc
4700 Highway 56
Owensboro, KY 42301
RE CPF No 3-2005-1015
Dear Mr Bahnick
Enclosed is the Final Order issued by the Associate Admmistrator for Pipeline Safety in
the above-referenced case It makes findings of violation and assesses a civil penalty of
$295, 000 The penalty payment terms are set forth in the Final Order This enforcement action
closes automatically upon payment Your receipt of the Final Order constitutes service of that
document under 49 C F R I't 190 5
James Reynolds
Pipehne Compliance Registry
Office of Pipeline Safety
Enclosure
cc Nicholas Hetman, Counsel for Southern Star
Ivan Huntoon, Director, Central Region, OPS
CERTIFIEO MAIL - RETIJRN RECEIPT RE UESTEII



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON) D. C 20590
In the Matter of
Southern Star Central Gas Pipehne, Inc,
Respondent.
)
)
)
)
) CPF No 3-2005-1015
FINAL ORDER
On September 16, 2003, pursuant to 49 U S C 5 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration(PHMSA) initiated an investigation of a report by the
State of Kansas of an August 5, 2003 incident The incident involved a release of natural gas from
Respondent's pipehne system As a result of the investigation, the Director, Central Region, OPS,
issued to Respondent, by letter dated August 8, 2005, a Notice of Probable Violation and
Proposed Civil Penalty (Notice) In accordance with 49 C F R tl 190 207, the Notice proposed
finding that Respondent had violated 49 C F R $192 and proposed assessing a civil penalty of
$394, 000 for the alleged violations
Respondent responded to the Notice by letter dated, September 8, 2005 (Response) Respondent
did not contest the allegations of violation, but offered an explanation and requested that the
proposed civil penalty be reduced or eliminated Respondent requested a hearing The heanng
was held on February 2, 2006 in Kansas City, Missouri
FINDINGS OF VIOLATION
Uncontested
Respondent did not contest the alleged violations of 549 C F R $192 in Items 1, 2 and 3 of the
Notice Accordingly, I find that Respondent violated 49 C F R Part 195, as more fully described
in the Notice
49 C F R 5192 605(a) — failure to follow the procedural manual for conducting
operations and maintenance activities and for emergency response at the Kechi
High Pressure Station
49 C F R $192 619(a)(1) — failure to operate pipehne components at a pressure
that does not exceed the design pressure of the weakest element in a pipeline
segment that formed the basis for the established MAOP The Instromet Rotary



meter was operated at approximately 350 psig, well in excess of 110% of the MAOP
49 C F R $192 739 (a-d) — failure to test and inspect once each calendar year, at
intervals not exceeding 15 months, each pressure limiting station, relief device
(except rupture discs), and pressure regulating station and its equipment
Respondent failed to determine that the regulators were in good mechanical
condition rehable, and set at the correct pressures The monitor regulator failed
on June 14, 2003, as a result of a foreign oblect in the line
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent
ASSESSMENT OF PENALTY
Under 49 U S C 5 60122, Respondent is sublect to a civil penalty not to exceed $100, 000 per
violation for each day of the violation up to a maximum of $1, 000, 000 for any related senes of
violations The Notice proposed a $394, 000 civil penalty for violations of 49 C F R Part 192
49 U S C 5 60122 and 49 C F R 5 190 225 require that, in determining the amount of the civil
penalty, I consider the following criteria nature, circumstances, and gravity of the violation,
degree of Respondent's culpabdity, history of Respondent's prior offenses, Respondent's ability
to pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on
Respondent's ability to continue in business, and such other matters as Justice may require
Item I of the Notice proposed a civil penalty of $94, 000 for violation of 49 C F R 5 192 605, as
Respondent failed to follow procedures for responding to, investigating, and correcting the cause
of each abnormal operation, including the operation of any safety device, as required by
5192 605(c)(1) Respondent did not contest the allegation of violation Respondent
acknowledged that during the penod from November 18, 2002 until June 14, 2003 its personnel
responsible for correcting abnormal operating conditions on regulating facilities, inspected the
facihties but failed to follow procedures However, Respondent explained that additional
overpressure protection equipment was in place downstream of the failed regulators Respondent
submitted additional documentation to demonstrate that its facihty serves two distinct distnbution
systems Respondent showed that the overpressure protection eqmpment in place downstream
was rated for a pressure sufficient to safeguard the facihties from over pressunzation Although
the equipment is not owned or maintained by Respondent, it is rated for a pressure sufficient to
safeguard the Wichita Heights High School facihty from over pressunzation
The pnmary oh)ective of the Federal pipeline safety standards is safe operation of pipeline
systems Failure to conduct inspections to find and correct deficiencies could adversely affect
pubhc safety Based upon the testimony and documentation presented by Respondent at the
hearing, that additional overpressure protection equipment was downstream of the failed
regulators, it is determined that the proposed civil penalty be reduced from $94, 000 to $70, 000



3
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $70, 000 for violation of 49 C F R 5 192 605
Item 2 of the Notice proposed a civil penalty of $200, 000 for violation of 49 C F R
5192 619(a)(1), as Respondent failed to operate pipehne components at a pressure that does not
exceed the design pressure of the weakest element in a pipeline segment that formed the basis for
the estabh shed MAOP The Instromet Rotary meter was operated at approximately 350 psig, well
in excess of 110'/o of the MAOP Respondent did not dispute the fact that it failed to hmit the
school's
maximum allowable operating pressure of its pipehne However, Respondent presented
mitigating evidence at the heanng to show that the gravity of the release did not extend to
possible over pres sunzation of the Wichita Heights
facilities Therefore, it is determined
that the proposed civil penalty be reduced from $200, 000 to $150, 000 The pnmary obl ective of
the Federal pipehne safety standards is public safety Failure to operate pipehne components at
a pressure that does not exceed the design pressure of the weakest element in a pipehne segment
could adversely affect the safety of the pipehne Accordingly, having reviewed the record and
considered the assessment critena, I assess Respondent a civil penalty of $150, 000 for violation
of 49 C F R $192 619(a)(1)
Item 3 of the Notice proposed a civil penalty of $100 000 for violation of 49 C F R 5192 739 (a-
d), as Respondent failed to inspect and test each pressure hmiting station, rehef device, and
pressure regulating station and its eqmpment at intervals not exceeding 15 months, but at least
once each calendar year Respondent acknowledged that it failed to perform an adequate
inspection of its regulating and overpressure protection eqmpment to determme several factors
as required by federal regulations Respondent's failure to perform an adequate inspection
resulted in an unintended release of gas, damage to Respondent's gas facihties, and a service
outage involving inherent safety nsks
Dunng the hearing, Respondent presented mitigating evidence to show that the gravity of the
release did not extend to possible over pressunzation of the Wicluta Heights school's facthttes
and that the actual consequences and threats were primanly limited to Respondent's facihties
Therefore, it is determined that the proposed civil penalty be reduced from $100, 000 to $75, 000
Accordingly, having reviewed the record and considered the assessment cntena, I assess
Respondent a civil penalty of $75, 000 for violation of 49 C F R 5192 739
Accordmgly, having reviewed the record and considered the assessment cntena, I assess
Respondent a total civil penalty of $295, 000 A determination has been made that Respondent
has the ability to pay this penalty without adversely affecting its abihty to continue business
Payment of the civil penalty must be made wtthtn 20 days of service Federal regulations
(49 C F R $ 89 21(b)(3)) require this payment be made by wire transfer, through the Federal
Reserve Communications System (Feawtre), to tne account of the U S Treasury Detailed
instructions are contained in the enclosure Questions concerning wire transfers should be
directed to Financial Operations Division (AMZ-300), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P 0 Box 25082, Oklahoma City, OK 73125, (405) 954-8893



4
Failure to pay the $295, 000 civil penalty will result in accrual of interest at the current annual rate
inaccordance with31U S C ) 3717, 31C FR ) 901 9and49C F R $ 8923 Pursuanttothose
same authonties, a late penalty charge of six percent (6%) per annum will be charged if payment
is not made within 110 days of service Furthermore, failure to pay the civil penalty may result
in referral of the matter to the Attorney General for appropnate action in a United States Distnct
Court
Failure to comply with this Final Order may result in the assessment of civil penalties of up to
$100, 000 per violation per day, or in the referral of the case for ludicial enforcement
Under 49 C F R 11 '190 215, Respondent has a nght to submit a Petition for Reconsideration of
tins Final Order The petition must be received within 20 days of Respondent's receipt of tins
Final Order and must contain a bnef statement of the issue(s) The filing of the petition
automatically stays the payment of any civil penalty assessed However if Respondent submits
payment for the civil penalty, the Final Order becomes the final administrative decision and the
nght to petition for reconsideration is waived The terms and conditions of this Final Order are
eff ve on receipt
APR 2 8 Z08
ace
sso
Ge d
ate Administrator
ipeline Safety
Date Issued



ADDENDUM C
INSTRUCTIONS FOR ELECTRONIC FUNDS TRANSFER TO
THE FEDERAL AVIATION ADMINISTRATION U S DEPARTMENT OF TRANSPORTATION
1 RECEIVER'S ABA NO 021030004 3 SENDING BANK ARB NO
(Provided by sending bank)
5 AMOUNT
7 RECEIVER NAME TREAS NYC
9 BENEFICIARY BF - AGENCY
LOCATION CODE
BNF=/ ALC 69-14-0001
2 TYPE SUBTYPE (prov&ded by sendmg bank)
4 SENDING BANK REF NO
(Prov&ded by send&ng bank)
6 SENDING BANK NAME
(Prov&ded by send&ng bank)
8 PRODUCTCODK
(Normally CTR, or as prov&ded by sendmg bank)
10 REASONS FOR PAYMENT
Example PHMSA - Case /// Ticket Number/P&pelme
Assessment number
INSTRUCTIONS. You, as sender of the wire transfer, must provide the sending bank with the
&nformat&on for Block (1), (5), (7), (9), and (10) The mformat&on prov&ded &n blocks (I), (7), and
(9) are constant and rem&un the same for all wire transfers to P&pelme and Hazardous Mater&als
Safety Adm&n&strat&on, Department of Transportat&on
Block ¹I - RECEIVER ABA NO. - 021030004". Ensure the send&ng bank enters this
nme-d&git identification number, &t represents the rout&ng symbol for the U S Treasury at the
Federal Reserve Bank in New York
Block ¹5 — AMOUNT — You as the sender prov&de the amount of the transfer Please be sure
the transfer amount is punctuated w&th commas and a decimal pomt EXAMPLE, $10, 000 00
Block ¹7 - RECEIVER NAME - "TREAS NYC " Ensure the sendmg bank enters th&s
abbrev&at&on, &t must be used for all w&re transfer to the Treasury Department
Block ¹9 — BENEFICIARY- AGENCY LOCATION CODE -"BFN=/ALC69140001"
Ensures the sendmg bank enters th&s mformation This &s the Agency Location Code for P&peline
and Hazardous Mater&als Safety Admmistration, Department of Transportat&on
Block ¹10 - REASON FOR PAYMENT - "AC-payment for PHMSA Case ¹ / To
ensure your w&re transfer is credited properly, enter the case number/t&cket number or P&pehne
Assessment number, and country "
Note. — A wire transfer must comply w&th the format and mstract&ons or the Department cannot
accept the w&re transfer You, as the sender, can assist th&s process by notifying, at the time you
seno the wire transrer to the General Account&ng D&vision (405) 954-8893
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