# CYPRESS INTERSTATE PIPELINE LLC — Notice of Amendment

- **operation:** document
- **citation:** CPF 320075008M
- **title:** CYPRESS INTERSTATE PIPELINE LLC — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2007-03-07
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.214(a), 195.234(b)(1), 195.432(b), 195.432(c).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320075008m.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320075008m.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320075008m
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320075008M
**body:**

Notice of Amendment involving CYPRESS INTERSTATE PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.214(a),  195.234(b)(1),  195.432(b),  195.432(c). The case was opened on 2007-03-07 and is reported as closed as of 2008-08-22. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320075008M_Notice of Amendment_03072007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075008M/320075008M_Notice%20of%20Amendment_03072007.pdf

320075008M_operator_response_to_NOA_and_request_for_time_extension_04122007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075008M/320075008M_operator_response_to_NOA_and_request_for_time_extension_04122007.pdf

320075008M_Notice of Amendment_03072007.pdf

@
U.S. Deportment
of Tronsporlotion
Pipellne ond
Hqzordous moterialt sqfety
Admlnlsrotion
901 Locust Streel, Suite t+62
Kansas City, MO 64106-2641
NOTICE OI'AMENDMENT
CERTIF'IED MAIL - RETURN RECEIPT REOUESTED
March7,2007
Mr. Ron McClain
Vice President Operations
Kinder Morgan Energy Partners, L.P.
500 Dallas Street, Suite 1000
Houston. TX77002
cPF',3-2007-5008M
Dear Mr. McClain:
on April 4-8, April 11-15, April 25-29, andMay 9-13, 2005, a representative of the pipeline
and Hazardous Materials Safety Adminishation (PHMSA) pursuant to Chapter 601 of 49
United States Code inspected Kinder Morgan Energy Parhrers, L.P. procedures for operation
and maintenance in field locations in Itlinois, Iowa, Kansas, Missouri, Indiana, and Nebraska.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
Kinder Morgan Energy Partners, L.P.'s plans or procedures, as described below:
1. $195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline system a
manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies.
$195.a02(c) indicates that the manual required by paragraph (a) of this section must
include procedures for the following to provide safety during maintenance and
normal operations:
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
Review of the operation and Maintenance (o&M) manual found that the following
requirements were not adequately covered in the manual or needed to be expanded to



provide additional guidance to your personnel. Items (a) through (d) are required to be
included in the manual by g195.a02(c)(3).
(a)
(b)
(c)
s195.432 Breakout tanks. (b) Each operator shall inspect fhe physical
integrity of in-service atmospheric and low-pressure steel abovegiound
breakout tanks according to section 4 of ApI standard 653. However, if
structural conditions prevent access to the tank bottom, the bottom integrity
may he assessed according to a plan included in the operations and
maintenance manual under 9195.402(c)(3).
Kinder Morgan's procedures do not provide for the requirement to inspect low-
pressure steel aboveground breakout tanks according to section 4 ofApl standard
653 in its operations and Maintenance Manual. These procedures do not provide a
description of how each element required by ApI 653 is to be accomplished or
provide for fulI documentation of the inspections.
s195.432 Breakout tanks. (c) Each operator shall inspect the physical
integrity of in-service steel aboveground breakout tanks buitt to Apr
Standard 2510 according to section 6 ofApI 510.
Kinder Morgan's procedures do not provide for the requirement to inspect high-
pressure ASME pressure vessels which are steel aboveground breakout tanks
according to section 6 of API 510 in its operations and Maintenance Manual.
These procedures do not provide a description ofhow each element required by
API 510 is to be accomplished or provide for fi.rll documentation of the
inspections.
$195.214 welding Procedures (a) welding must be performed by a qualified
welder in accordance with welding procedures qualified under Section s of
API 1104 or Section rX of the ASME Boiler and pressure vessel code. The
quality of the test welds used to qualify the welding procedure shall be
determined by destructive testing.
Kinder Morgan has not qualifred welding procedure ES-g405 for use on Grade A
through X-65 materials in accordance with section 5 of ApI I104. weldine
Procedure ES-8405 states it is applicable lor all materials from Grade A through
X70. Kinder Morgan lacks welding procedure qualifrcation tests of Welding
Procedure ES-8405 for specified minimum yield strength less than or equal to
42,000 psi, for specified minimum yield strength greater than 42,000 psi but less
than 65,000 psi, and for the specified minimum yield strength equal to 65,000 psi
(See API 1104 Section 5.4.2.2). Kinder Morgan's coupon Test Reports (l l-5p-
70+,5117195 and l3-5P-70+,8/24/93) only qualify Welding procedure ES-g405
for use on X70 materials; additional qualifications tests are required for materials
other than the X70 listed in this procedure.



(d) $195.234 Nondestructive testing. (b) Any nondestructive testing of welds
must be performed:
(1) In accordance with a written set of procedures for nondestructive
. testing;
Kinder Morgan's NDT procedures did not include written procedures for
ultrasonic or magnetic particle testing of welds.
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. g 60108(a) and 49 C.F.R. $ 190.237. Enclosed
as part of this Notice is a document entitled Response Options for Pipeline Operators in
Compliance Proceedings. Please refer to this document and note the response options. Be
advised that all material you submit in response to this enforcement action is subject to being
made publicly available. If you believe that any portion of your responsive material qualifies
for confidential treatment under 5 U.S.C. 552(b), along with the complete original document
you must provide a second copy of the document with the portions you believe qualify for
confidential treatment redacted and an explanation ofwhy you believe the redacted
information qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond
within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the
allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to
find facts as alleged in this Notice without fuither notice to you and to issue a Final Order.
If, after opporhmity for a hearing, your plans or procedures are found inadequate as alleged in
this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies
(49 C.F.R. $ 190.237). If you are not contesting this Notice, we propose that you submit your
amended procedures to my office within 30 days of receipt of this Notice. This period may be
extended by written request for good cause. Once the inadequacies identified herein have
been addressed in your amended procedures, this enforcement action will be closed.
In correspondence concerning this matter, please refer to CPX'3-2007-5008M and, for each
document you submit, please provide a copy in elechonic format whenever possible.
Sincerelv.
ft -,/j
,t/s#ryfr#ee- /ffivan A. Huntoon
fl' Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operatrtrs in Compliance Proceedings



. Response Options for Pipeline Operators in Compliance Proceedings
The requirements of +fC.p.R. Paxt 190, Subpart B ($$ 190.201 -190.237) govem response to
Notices issued by a Regional Director, Pipeline and Hazardous Materials Safe/y Administration
(PHMSA).
I. Brocedures for Rerpondine to a NOTICE OF PROBABLE VIOLATION:
Within 30 days of receip of a Notice of Probable Violation, the respondent shall respond
to the Regional Director who issued the Notice in the following way:
a. When the Notice contains a proposed CIVIL PENALTY* -
l. Pay the proposed civil penalty and advise the Regional Director of the
pa)'rnent. This authorizes PHMSA to make findings and to close the case
with prejudice to the respondent. Payment terms are outlined below;
2. Submit written explanations, information, or other materials in response to
the allegations and/or seek eliminati<in or mitigation of the proposed civil
penalty. Refer to 49 C.F.R. $ 190.225 for assessment considerations,
which include the respondent's ability to pay and the effect on the
respondent's ability to stay in business, upon which civil penalties are
based; or
3. Request a hearing as described below to contest the allegations and/or
proposed assessment ofa civil p€nalty.
b. WhentheNotice contains apropossd COMPLfANCE ORDER* -
l.
NotiS the Regional Director that you intend to take the steps in the
proposed compliance order;
2.
Submit witten explanations, infonnation, or other materials in answer to
the allegations in the Notice and object to or seek clarification of the
proposed compliance order items in whole or in part; or
a
Request a hearing as described below to contest the allegations and/or
proposed compliance order items;
When the Notice contains a WARNING ITEM -
No written response is required. The respondent is warned that if it does not
take appropriate action to correct these items, enforcement action will be
taken ifa subsequent inspection reveals a violation.
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II.
IV.
* Failure of the respondent to respond to the Notice within 30 days of receipt
constitutes a waiver of the right to contest the allegations in the Notice and authorizes
the Associate Administrator for Pipeline Safety to find facts as alleged in the Notice
without further notice to the respondent and to issue a Final Order.
,,
Procedures for Respondine to a NOTICE OF AMENDMENT*--
Within 30 days of receip of a Notice of Amendment, the respondent shall respond to the
Regional Director who issued the Notice in the following way:
a. Notiff the Regional Director of your plans to address the inadequacies
identified in the Notice:
b.
Submit written explanations, information, or other materials in answer to the
allegations in the Notice and/or object to or seek clarification of the proposed
amendment items in whole or in parfi or
Request a hearing as described below to contest the allegations in the Notice.
* Failwe of the respondent to respond to the Notice within 30 days of receipt
constitutes a waiver of the right to contest the allegations in the Notice and authorizes
the Associate Adminishator for Pipeline Safety to find facts as alleged in the Notice
without further notice to the respondent and to issue a Final Order.
Procedure for Requesting a Hearing
A request for a hearing must be in writing and accompanied by a statement of the issues
which the respondent intends to raise at the hearing. The issues may relate to the
allegations, new information, or to the proposed compliance order or proposed civil
penalty amount. Refer to 49 C.F.R. $ 190.225 for assessrhent considerations upon which
civil penalties are based. A respondent's failure to specifr an issue may result in waiver
ofthe right to raise that issue at the hearing. The respondent's request must also indicate
whether or not respondent will be represented by counsel at the hearing. Failure to
request a hearing in writing within 30 days of receipt of a Notioe waives the right to a
hearing. In addition, if the amount of the proposed civil penalty or the proposed
corrective action is less than $10,000, the hearing will be held by telephone, unless the
respondent submits a written request for an in-person hearing. Complete hearing
procedures can be found at 49 C.F.R. $ 190.21 1 .
Extensions of Time
An extension of time to preparc an appropriate response to a Notice may be granted, at
the agency's discretion, following submittal of a written request to the Regional Director.
The request must indicate the amount of time needed and the reasons for the extension.
The request must be submitted within 30 days of receipt of the Notice.
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V. tr'reedom of Information Act
Any material prepared by PHMSA, including the violation report the Notice, and any
order issued in this case, and any material provided to PHMSA by the respondent, may
be considered public information and subject to disclosure under the Freedom of
Information Act (FOIA). If the information you provide is security serisitive, privileged,
confidential or may cause your company competitive disadvantages, please clearly
identify the material and provide justification why the documents, or portions of a
document should not be released under FOIA. If we re ceive a request for your material,
we will notifr you if PHMSA, after reviewing the materials and your provided
justification, determines that wittrholding the materials does not meet any exemption
provided under the FOIA, You may appeal the agency's decision to release material
under the FOIA at that time. Your appeal will stay the release of those materials until a
final decision is made.
Small Business Regulatorv Enforcement X'airness Act Information
The Small Business and Agricirltural Regulatory Enforcement Ombudsman and l0
Regional Faimess Boards were established to receive comments from small businesses
about federal agency enforcement actions. The Onibudsman will annually evaluate the
enforcement activities and rate each agency's responsiveness to small business. Ifyou
wish to comment on the enforcement a.ctions of the Pipeline and Hazardous Materials
Safety Administrafion, call l-888-REG-FAIR (1-888-734-3247) or go to
http ://www. sba. gov/ombudsman/dsp_faq. html.
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VII. PAYMENTINSTRUCTIONS
:
Civil Penulty Paymen$ of Less Than $10,000
Payment ofa civil penalty ofless than $10,000 proposed or assessedo under Subpart B ofPart
190 of the Pipeline Safety Regulations can be made by certified check, money order or wire
transfer. Payment by certified check or money order (containing the CPF Number for this case)
should be made payable to the "Department of rransportation" and should be sent to:
Federal Aviation Administration
Mike Monroney Aeronautical Center
Financial Operations Division (AMZ-300) P.O. Box 25082
Oklahoma City, OK 7 3 125 -49 | 5
Wire hansfer payments of less than $ I 0,000 may be made through the Federal Reserve
Communications System (Fedwire) to the account of the U.S. Treasury. Detailed instructions are
provided below. Questions conceming wire transfer should be directed to the Financial
Operations Division at (405) 954-8893, or at the above address.
Civil Penally Payments of $10,000 or more
Payment ofa civil penalty of$10,000 or more proposed or assessed under Subpart B ofPart 190
of the Pipeline Safety Regulations must be made wire transfer (49 C,F.R g 89.21 (bX3),
through the Federal Reserve Communications System @edwire) to the account of the U.S.
Treasury. Detailed instructions are provided below. Questions conceming wire transfers should
be directed to the Financial Operations Division at (405) 954-8893, or at the above address.
INSTRUCTIONS X'OR ELECTRONIC T'UND TRANSF'ERS
(I) RECETVERABANO.
021030004
(2) TYPE/Sr.JB-TYPE
(Provided by sending bank)
(3) SENpTNGBANKABANO.
(Provided by sending bank) (4) SENpTNG BANK REF NO.
@rovided by sending bank)
(5)AMOTJNT (6) SENDINGBANKNAME
(Provided by sending bank)
(7) RECEIVERNAME
TREASNYC
(8) PROpUCT COpE
(Normally CTR, or as provided by sending
bank)
(9) BENEFICIAL GNF) = AGENCY
LOCATION CODE
BNF: /ALC-69-14-0001
(r 0) REASONS FOR PAYMENT
Example: PHMSA - CPF # / Ticket
Number/?ipeline Assessment number
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INSTRUCTIONS: You as sender of the wire transfer, must provide the sending bank with the
information for blocks (l), (5), (7), (9), and (10). The information provided in Blocks (l), (7),
and (9) are constant an&remain the same for all wire transfers to the Pipeline and Hazardous
Materials Safety Administration, Departrnent of Transportation. /:
Block #1 - RECEIVER ABA NO. - "021030004". Ensure the sending bank enters this 9-digit
identification number; it represents the routing symbol for the U.S. Treasury at the Federal
Reserve Bank inNew York.
Block #5 - AMOUNT - You as the sender provide the amount of the transfer. Please be sure the
transfer amount is pwrctuated with commas and a decimal point. EXAMPLE: $10.000.00
Block #7 - RECEIVER NAME - *TREAS NYC". Ensure the sending bank enters this
abbreviation. It must be used for all wire transfers to the Treasury Departrnent.
Block#9 - BENEFICIAL - AGENCY LOCATION CODE - "BNX':/ALC-69-14-0001". Ensure
the sending bank enters this information. This is the Agency Location Code for the Pipeline and
Hazardous Materials Safety Administration, Departrnent of Transportation.
Block #10 - REASON FOR PAYMENT - "AC-payment ior PHMS A Case # | To ensure your
wire transfer is oredited. properly, enter the oase number/tioket number or Pipeline Assessment number,
and oountr5i."
NOTE: A wire hansfer must comply with the format and instructions or the Department cannot
accept the wire transfer. You as the lender can assist this process by notifying the Financial
Operations Division (405) 954-8893 at the time you send the wire transfer.
November 2006
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