{"operation":"document","citation":"CPF 320095006","title":"ENBRIDGE ENERGY, LIMITED PARTNERSHIP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2009-06-29","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.202.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320095006.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320095006.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320095006","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320095006","body":"Notice of Probable Violation involving ENBRIDGE ENERGY, LIMITED PARTNERSHIP. PHMSA's enforcement data identifies the cited regulation as 195.202. The case was opened on 2009-06-29 and is reported as closed as of 2011-11-01. Proposed civil penalty: $100,000. Assessed civil penalty: $100,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320095006_Final Order_10132011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095006/320095006_Final%20Order_10132011.pdf\n\n320095006_Final Order_10132011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095006/320095006_Final%20Order_10132011_text.pdf\n\n320095006_NOPV PCP_06292009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095006/320095006_NOPV%20PCP_06292009.pdf\n\n320095006_NOPV PCP_06292009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095006/320095006_NOPV%20PCP_06292009_text.pdf\n\n320095006_Final Order_10132011_text.pdf\n\nOCT 13 2011\nMr. Terry McGill\nPresident\nEnbridge Energy Partners, L.P.\n1100 Louisiana Street, Suite 3300\nHouston, TX 77002\nRe: CPF No. 3-2009-5006\nDear Mr. McGill:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a civil penalty of $100,000. The penalty payment terms are set forth in the\nFinal Order. This enforcement action closes automatically upon receipt of payment. Service of\nthe Final Order by certified mail is complete upon mailing as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, Pipeline Safety\nMr. Shaun Kavajecz\nCompliance Manager\nEnbridge Pipelines (Lakehead) L.L.C.\n119 N 25th Street E\nSuperior, WI 54880\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0070 4107]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nEnbridge Energy Partners, L.P., ) CPF No. 3-2009-5006\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn February 3, 2007, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), initiated\nan investigation of an accident involving the release of crude oil from a pipeline operated by\nEnbridge Energy Partners, L.P. (Enbridge or Respondent). The accident occurred in Rusk\nCounty, Wisconsin, near the village of Exeland, on Enbridge’s 24-inch crude oil pipeline\ndesignated as Line 14. The accident was reported to the National Response Center on February\n2, 2007 (NRC Report No. 825338). Enbridge owns and operates approximately 17,700 miles of\npipeline transporting crude oil and natural gas in the Midwest.\n1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated June 29, 2009, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Enbridge\ncommitted a violation of § 195.202 and proposed a civil penalty of $100,000 for the alleged\nviolation.\nAfter receiving an extension of time, Enbridge responded to the Notice by letter dated September\n8, 2009 (Response). In its Response, Respondent did not contest the allegation of violation but\nprovided an explanation of its actions and requested that the proposed civil penalty be reduced.\nRespondent did not request a hearing.\nFINDING OF VIOLATION\nItem 1 in the Notice alleged that Respondent violated 49 C.F.R. § 195.202, which states:\n1 SEC Form 10-K, Enbridge Energy Partners, L.P., February 2011, at 6.\n\n\n\n2\n§ 195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent with\nthe requirements of this part.\nThe Notice alleged that Respondent violated § 195.202 by failing to construct a pipeline in\naccordance with the company’s written standards. Specifically, the Notice alleged that Enbridge\ndid not follow its Construction Safety Program (CSP) procedures, which included requirements\nfor maintaining minimum clearance from existing underground facilities when excavating with\npowered equipment. On February 2, 2007, Enbridge struck its existing 24-inch crude oil\npipeline (Line 14) using powered equipment during an excavation associated with the\nconstruction of a new 20-inch pipeline. The impact ruptured Line 14 resulting in the release of\napproximately 3,000 barrels of crude oil, a portion of which contaminated local groundwater.\nEnbridge’s written procedures, section 10.12.4 of the CSP, stated that “Powered equipment shall\nremain at least two feet from an underground facility until it has been daylighted by hand or\nwater washing.”2 In addition, section 10.12.15 of the CSP required Enbridge to “Maintain\nminimum allowable clearances to facility with powered excavation equipment until daylighted.\n”3\nIn its Response, Respondent did not contest the allegation of violation, but provided some\nadditional explanation of its actions to ensure that construction specifications and procedures\nwere understood and followed. The company stated that “[s]pecifications, procedures and\nchange management processes were in place to safeguard existing facilities, however local\nactions and decision-making circumvented procedural controls in this instance.”4\nBased upon the evidence, I find that Respondent violated § 195.202 by failing to construct a\npipeline in accordance with its written CSP procedures.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations.\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; the Respondent’s ability to pay the penalty and any effect that\n2 OPS Pipeline Safety Violation Report (Jun. 29, 2009), Exhibit C, page 70 (Violation Report).\n3 Violation Report, Exhibit C, page 75.\n4 Response at 4.\n\n\n\n3\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require.\nItem 1 in the Notice proposed a civil penalty of $100,000 for Respondent’s violation of 49\nC.F.R. § 195.202. Enbridge failed to construct a new pipeline in accordance with its written CSP\nprocedures.\nIn its Response, Enbridge explained that it had distributed its construction specifications,\nincluding the CSP, to its contractor at preconstruction meetings and had taken other actions in an\neffort to ensure that construction specifications and procedures were understood and followed.\nThe company also provided information about post-accident changes and initiatives implemented\nto reduce the risk of reoccurrence.\nDespite its efforts to ensure that construction procedures were followed, the CSP procedures\nwere not followed on February 2, 2007. This failure created a significant risk to the safety of the\npublic, property, and the environment. The damage to the pipeline caused by the excavation\nresulted in a pipeline release of approximately 3,000 barrels of crude oil, a portion of which\ncontaminated local groundwater. For these reasons, the nature, circumstances, and gravity of the\nviolation, including adverse impact to the environment, justify the civil penalty proposed for the\nviolation.\nI have considered the above-referenced assertions by Enbridge regarding its conduct prior to the\naccident to ensure compliance with its program procedures and its actions following the accident\nto reduce the risk of reoccurrence. I find, however, they do not warrant reducing the proposed\npenalty due to the significant gravity of the violation, including adverse impact on the\nenvironment.\nEnbridge is culpable for the violation. I have also considered the company’s history of prior\noffenses and find the history of prior offenses does not warrant reducing the proposed civil\npenalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $100,000 for its violation of 49 C.F.R. § 195.202.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the 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-341), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8893.\nFailure to pay the $100,000 civil penalty will result in accrual of interest at the current annual\nrate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\n\n\n\n4\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nUnder 49 C.F.R. § 190.215, Respondent may submit a Petition for Reconsideration of this Final\nOrder. Address any petition to the Associate Administrator, Office of Pipeline Safety, PHMSA,\n1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590. The petition\nmust be received within 20 days of Respondent’s receipt of this Final Order, contain a statement\nof the issue(s), and meet all other requirements of 49 C.F.R. § 190.215. The filing of the petition\nautomatically stays the payment of any civil penalty assessed. If Respondent submits payment\nfor the civil penalty, the Final Order becomes the final administrative decision and the right to\npetition for reconsideration is waived. The terms and conditions of this Final Order are effective\nupon service in accordance with 49 C.F.R. § 190.5.\n___________________________________ _____________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11049}