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

- **operation:** document
- **citation:** CPF 320111016
- **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:** 2011-10-21
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.616(c).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320111016.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320111016.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320111016
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320111016
**body:**

Notice of Probable Violation involving SOUTHERN STAR CENTRAL GAS PIPELINE, INC. PHMSA's enforcement data identifies the cited regulation as 192.616(c). The case was opened on 2011-10-21 and is reported as closed as of 2014-01-06. Proposed civil penalty: $25,300. Assessed civil penalty: $25,300. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320111016_Closure_01062014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_Closure_01062014.pdf

320111016_Closure_01062014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_Closure_01062014_text.pdf

320111016_Final Order_06172013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_Final%20Order_06172013.pdf

320111016_Final Order_06172013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_Final%20Order_06172013_text.pdf

320111016_NOPV PCP PCO_10212011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_NOPV%20PCP%20PCO_10212011.pdf

320111016_NOVP PCP PCO_10212011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_NOVP%20PCP%20PCO_10212011_text.pdf

320111016_Operator Response to NOPV_11212011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_Operator%20Response%20to%20NOPV_11212011.pdf

320111016_Operator_Response_to_NOPV_12282011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111016/320111016_Operator_Response_to_NOPV_12282011.pdf

320111016_NOVP PCP PCO_10212011_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
October 21, 2011
Mr. Robert Carlton
Vice President & Chief Compliance Officer
Southern Star Central Gas Pipeline
4700 Highway 56
Owensboro, KY 42301
CPF 3-2011-1016
Dear Mr. Carlton:
On July 12, 13 and 14, 2011, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your
Public Awareness Program in Owensboro, KY.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the
probable violations are:



1. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star Gas Central Pipeline (Southern Star) did not complete an annual audit for
Plan Year 2006 and 2008 as required by API RP 1162. Southern Star assumed that
submitting the 2006 Public Awareness Plan (PAP) to PHMSA Clearinghouse for review
complied with an annual audit for Year 2006. Southern Star was unable to provide
documentation to demonstrate that annual audits were performed for Plan Year 2006 or
2008.
2. §192.616 Public Awareness.
(c)The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star failed to follow their PAP procedure for program administration. Southern
Star failed to use their established and defined team to ensure the development,
implementation, and ongoing oversight of the public awareness program was done in
accordance with their established procedures. The 2010 Annual Audit was completed by
a single individual.
Also, Southern Star did not provide documentation that the annual audit
recommendations were implemented or show there was a process in place to track the
implementation of the audit recommendations.
3. § 192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star did not complete the baseline effectiveness evaluation within the time
period of regulatory guidelines established in API RP 1162. Documentation provided
indicates the evaluation was completed on October 18, 2010, four months beyond the
2



required four year interval for evaluation. Southern Star provided no documentation or
justification for why the effectiveness evaluation was not completed within the prescribed
interval.
4. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star failed to adequately measure whether stakeholder audiences understood the
content of messages and retained key information from the messages. Southern Star
relied primarily on returned survey cards for assessing how well the message content was
understood. Southern Star field personnel passed out calendars to the affected public
during face-to-face meetings but did not ask questions designed to assess their
understanding of the message content. The percentage of responses from stakeholder
audiences was low (0.24%).
5. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
The Southern Star PAP contains a table of Supplemental Activities but no documentation
was provided for the implementation of these activities or how these activities would be
used for effectiveness evaluation. Also, no documentation was provided for follow-up
activities with emergency response and public officials who did not attend
training/informational meetings.
6. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star did not complete the annual audits in a timely manner so that
recommendations could be included in the following year’s plan for implementation.
3



Southern Star has performed annual audits for PAP Years 2007, 2009 and 2010 in
September 2008, November 2010 and April 2011, respectively.
7. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
The Southern Star PAP listed six Objectives but the data collection efforts, data analysis
and effectiveness evaluation processes do not measure bottom-line results to achieve the
six Objectives listed in the PAP.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000
for each violation for each day the violation persists up to a maximum of $1,000,000 for any
related series of violations. The Compliance Officer has reviewed the circumstances and
supporting documentation involved in the above probable violation(s) and has recommended that
you be preliminarily assessed a civil penalty of $25,300 as follows:
Item number PENALTY
1 $12,800
3 $12,500
Warning Items
With respect to items 5 and 6, we have reviewed the circumstances and supporting documents
involved in this case and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time. We advise you to promptly correct these items. Be advised
that failure to do so may result in Southern Star being subject to additional enforcement action.
Proposed Compliance Order
With respect to items 2, 3, 4 and 7, pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to Southern
Star Central gas Pipeline. Please refer to the Proposed Compliance Order, which is enclosed
and made a part of this Notice.
4



Response to this Notice
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 of why 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 further notice to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPF 3-2011-1016 and for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
David Barrett
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
5



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Southern Star Central Gas Pipeline (Southern
Star) a Compliance Order incorporating the following remedial requirements to ensure the
compliance of Southern Star with the pipeline safety regulations:
1. In regard to Item Number 2 of the Notice pertaining to failure to follow the Public
Awareness Plan (PAP) procedure for program administration by failing to use
your established and defined Public Awareness Team for oversight of the public
awareness program, Southern Star shall complete the following:
• Ensure that an internal group performs the annual audits of the PAP
following the internal assessment method.
• Submit a written plan to Central Region by December 31, 2011 with
details of how recommendation from annual audits will be implemented
and completed,
• Implement and complete all recommendation from annual audits
conducted for Plan Years 2006 – 2010 no later than August 31, 2012 and
submit supporting documentation to Central Region.
2. In regard to Item Number 3 of the Notice pertaining to failure to complete the
baseline effectiveness evaluation by the required deadline of June 20, 2010,
Southern Star shall complete the following:
• Submit a written document to Central Region by December 31, 2011 with
details of how recommendations from Effectiveness Evaluations will be
implemented and closed.
• Implement and complete all recommendations from the 2010
Effectiveness Evaluation no later than August 31, 2012 and submit
supporting documentation to Central Region.
3. In regard to Item Number 4 of the Notice pertaining to failure to adequately
measure whether stakeholder audiences understand the content of messages and
retained key information in the messages. Southern Star shall complete the
following:
• Follow the recommendations of API 1162, specifically addressing “survey
target stakeholder audiences” and develop a survey plan and forms for
surveying target audiences no later than December 31, 2011.
• Implement the survey for measuring understandability no later than
February 29, 2012.
4. In regard to Item Number 7 of the Notice pertaining to lack of measuring bottom-
line results to achieve the Plan Objectives, Southern Star shall complete the
following:
• After the amendment of the PAP procedure for Effective Evaluations, as
required in Item 4 of CPF 3-2011-1017M, has been completed, measure
the bottom-line results to determine if the six Objectives of the PAP have
been achieved.
• Submit documentation of the bottom-line results in relation to the
Objectives no later than September 30, 2012.
6



5. Unless specifically noted, documentation of completion shall be sent to the
Regional Director, Central Region within 30 days of the completion date.
6. It is requested (not mandated) that Southern Star maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and
submit the total to David Barrett, Director, Central Region, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: 1) total cost associated with preparation/revision of
plans, procedures, studies and analyses, and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
7

320111016_NOPV PCP PCO_10212011.pdf

u.s. Department
of Transportation
Pipeline and
Hazardous Materials Safety
Administration
901 Locust Street, Suite 462
Kansas City, MO 641 06-2641
NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAJL- RETURN RECEIPT REQUESTED
October 21, 2011
Mr. Robert Carlton
Vice President & Chief Compliance Officer
Southern Star Central Gas Pipeline
4700 Highway 56
Owensboro, KY 42301
CPF 3-2011-1016
Dear Mr. Carlton:
On July 12, 13 and 14, 2011, representatives ofthe Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your
Public Awareness Program in Owensboro, KY.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and
the probable violations are:



1. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star Gas Central Pipeline (Southern Star) did not complete an annual audit for
Plan Year 2006 and 2008 as required by API RP 1162. Southern Star assumed that
submitting the 2006 Public Awareness Plan (PAP) to PHMSA Clearinghouse for review
complied with an annual audit for Year 2006. Southern Star was unable to provide
documentation to demonstrate that annual audits were performed for Plan Year 2006 or _
2008.
2. §192.616 Public Awareness.
(c)The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star failed to follow their PAP procedure for program administration. Southern
Star failed to use their established and defined team to ensure the development,
implementation, and ongoing oversight of the public awareness program was done in
accordance with their established procedures. The 2010 Annual Audit was completed by
a single individual.
Also, Southern Star did not provide documentation that the annual audit
recommendations were implemented or show there was a process in place to track the
implementation of the audit recommendations.
3. § 192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star did not complete the baseline effectiveness evaluation within the time
period of regulatory guidelines established in API RP 1162. Documentation provided
indicates the evaluation was completed on October 18, 2010, four months beyond the
2



required four year intenrar for evaluation. Southern Star provided no documentation or
justification for why the effectiveness evaluation was not completed within the prescribed
interval.
4. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star failed to adequately measure whether stakeholder audiences understood the
content of messages and retained key information from the messages. Southern Star
relied primarily on returned survey cards for assessing how well the message content was
understood. Southern Star field personnel passed out calendars to the affected public
during face-to-face meetings but did not ask questions designed to assess their
understanding of the message content. The percentage of responses from stakeholder
audiences was low (0.24%).
5. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
The Southern Star PAP contains a table of Supplemental Activities but no documentation
was provided for the implementation of these activities or how these activities would be
used for effectiveness evaluation. Also, no documentation was provided for follow-up
activities with emergency response and public officials who did not attend
training/informational meetings.
6. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
Southern Star did not complete the annual audits in a timely manner so that
recommendations could be included in the following year's plan for implementation.
3



Southern Star has performed annual audits for PAP Years 2007, 2009 and 2010 in
September 2008, November 2010 and April2011, respectively.
7. §192.616 Public Awareness.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why conditions
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
The Southern Star PAP listed six Objectives but the data collection efforts, data analysis
and effectiveness evaluation processes do not measure bottom-line results to achieve the _
six Objectives listed in the PAP.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000
for each violation for each day the violation persists up to a maximum of $1,000,000 for any
related series of violations. The Compliance Officer has reviewed the circumstances and
supporting documentation involved in the above probable violation(s) and has recommended that
you be preliminarily assessed a civil penalty of $25,300 as follows:
Item number
1
3
PENALTY
$12,800
$12,500
Warning Items
With respect to items 5 and 6, we have reviewed the circumstances and supporting documents
involved in this case and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time. We advise you to promptly correct these items. Be advised
that failure to do so may result in Southern Star being subject to additional enforcement action.
Proposed Compliance Order
With respect to items 2, 3, 4 and 7, pursuant to 49 United States Code§ 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to Southern
Star Central gas Pipeline. Please refer to the Proposed Compliance Order, which is enclosed
and made a part of this Notice.
4



Response to this Notice
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 1s 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 of why 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 ofthis Notice, this constitutes a waiver ofyour 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 further notice to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPF 3-2011-1016 and for each document
you submit, please provide a copy in electronic format whenever possible.
David Barrett
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
5



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code§ 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Southern Star Central Gas Pipeline (Southern
Star) a Compliance Order incorporating the following remedial requirements to ensure the
compliance of Southern Star with the pipeline safety regulations:
1. 2. 3. 4. In regard to Item Number 2 of the Notice pertaining to failure to follow the Public
Awareness Plan (PAP) procedure for program administration by failing to use
your established and defined Public Awareness Team for oversight of the public
awareness program, Southern Star shall complete the following:
• Ensure that an internal group performs the annual audits of the PAP
following the internal assessment method.
• Submit a written plan to Central Region by December 31, 2011 with
details ofhow recommendation from annual audits will be implemented
and completed,
• Implement and complete all recommendation from annual audits
conducted for Plan Years 2006 - 201 0 no later than August 31, 2012 and
submit supporting documentation to Central Region.
In regard to Item Number 3 of the Notice pertaining to failure to complete the
baseline effectiveness evaluation by the required deadline of June 20, 2010,
Southern Star shall complete the following:
• Submit a written document to Central Region by December 31, 20 11 with
details ofhow recommendations from Effectiveness Evaluations will be
implemented and closed.
• Implement and complete all recommendations from the 2010
Effectiveness Evaluation no later than August 31, 2012 and submit
supporting documentation to Central Region.
In regard to Item Number 4 of the Notice pertaining to failure to adequately
measure whether stakeholder audiences understand the content of messages and
retained key information in the messages. Southern Star shall complete the
following:
• Follow the recommendations of API 1162, specifically addressing "survey
target stakeholder audiences" and develop a survey plan and forms for
surveying target audiences no later than December 31, 2011.
• Implement the survey for measuring understandability no later than
February 29, 2012.
In regard to Item Number 7 of the Notice pertaining to lack of measuring bottom-
line results to achieve the Plan Objectives, Southern Star shall complete the
following:
• After the amendment of the PAP procedure for Effective Evaluations, as
required in Item 4 of CPF 3-2011-10 17M, has been completed, measure
the bottom-line results to determine ifthe six Objectives of the PAP have
been achieved.
• Submit documentation of the bottom-line results in relation to the
Objectives no later than September 30, 2012.
6



5. 6. Unless specifically noted, documentation of completion shall be sent to the
Regional Director, Central Region within 30 days of the completion date.
It is requested (not mandated) that Southern Star maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and
submit the total to David Barrett, Director, Central Region, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: 1) total cost associated with preparation/revision of
plans, procedures, studies and analyses, and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
7



-Response Options for Pipeline Operators in Compliance Proceedings
The requirements of 49 C.P.R. Part 190, Subpart B (§§ 190.201-190.237) govern response to
Notices issued by a Regional Director, Pipeline and Hazardous Materials Safety Administration
(PHMSA).
Be advised that all material submitted by a respondent in response to an 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 of why you believe the
redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
I. Procedures for Responding to a NOTICE OF PROBABLE VIOLATION:
Within 30 days of receipt 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* --
1. 2. 3. 4. If you are not contesting any violations alleged in the Notice, pay the
proposed civil penalty and advise the Regional Director of the payment.
This authorizes PHMSA to issue an order making findings of violation
and upon confirmation that the payment has been received PHMSA will
close the case with prejudice to the respondent. Payment terms are
outlined below;
If you are not contesting any violations alleged in the Notice but wish to
submit written explanations, information, or other materials you believe
warrant mitigation of the civil penalty, you may submit such materials.
This authorizes PHMSA to make findings and to issue a Final Order
assessing a penalty amount up to the amount proposed in the Notice.
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;
If you are contesting one or more of the items in the Notice but are not
requesting an oral hearing, submit a written response to the allegations
and/or seek elimination or mitigation of the proposed civil penalty; or
Request a hearing as described below to contest the allegations and/or
proposed assessment of a civil penalty.
1 of5



b. When the Notice contains a proposed COMPLIANCE ORDER*--
1. If you are not contesting the compliance order, notify the Regional
Director that you intend to take the steps in the proposed compliance
order;
c. 2. If you are not contesting the compliance order but wish to submit written
explanations, information, or other materials you believe warrant
modification of the proposed compliance order in whole or in part, or you
seek clarification of the terms of the proposed compliance order, you may
submit such materials. This authorizes PHMSA to make findings and
issue a compliance order;
3. If you are contesting the proposed compliance order but are not requesting
an oral hearing, submit written explanations, information, or other
materials in answer to the allegations in the Notice and stating your
reasons for objecting to the proposed compliance order items in whole or
in part; or
4. 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 if a subsequent inspection reveals a violation.
*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.
II. Procedures for Responding to a NOTICE OF AMENDMENT*--
Within 30 days of receipt of a Notice of Amendment, the respondent shall respond to the
Regional Director who issued the Notice in the following way:
a. If you are not contesting the Notice, notify the Regional Director of your plans
to address the inadequacies identified in the Notice;
b. If you are not contesting the Notice but wish to submit written explanations,
information, or other materials you believe warrant modification of the Notice
of Amendment in whole or in part, or you seek clarification of the terms of the
2 of5



Notice of Amendment, you may submit such materials. This authorizes
PHMSA to mak-e findings and issue an Order Directing Amendment;
c. If you are contesting the Notice of Amendment but are not requesting an oral
hearing, submit written explanations, information, or other materials in answer
to the allegations in the Notice and stating your reasons for obiecting to the
Notice of Amendment items in whole or in part; or
d. Request a hearing as described below to contest the allegations in the Notice.
*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 Notic.e 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.
III. Procedure for Requesting a Hearing
A request for a hearing must be in writing and accompanied by a statement of the issues
that 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.P.R. § 190.225 for assessment considerations upon which
civil penalties are based. A respondent's failure to specify an issue may result in waiver
of the 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 Notice 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. § 190.211.
IV. Extensions of Time
An extension of time to prepare 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.
V. Freedom of Information Act
Any material provided to PHMSA by the respondent, and materials prepared by PHMSA
including the Notice and any order issued in this case, may be considered public
information and subject to disclosure under the Freedom of Information Act (FOIA). If
you believe the information you are providing is security sensitive, 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 receive a request for your material,
we will notify you if PHMSA, after reviewing the materials and your provided
justification, determines that withholding the materials does not meet any exemption
3 of5



provided under the FOIA. You may appeal the agency's decision to release material
under the FO IA at that time. Your appeal will stay the release of those materials until a
final decision is made.
VI. Small Business Regulatory Enforcement Fairness Act Information
The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10
Regional Fairness Boards were established to receive comments from·small businesses
about federal agency enforcement actions. The Ombudsman will annually evaluate the
enforcement activities and rate each agency's responsiveness to small business. If you
wish to comment on the enforcement actions ofthe Pipeline and Hazardous Materials
Safety Administration, call1-888-REG-FAIR (1-888-734-3247) or go to
http:/ /www.sba.gov/ombudsman/dsp _ faq.html.
VII. Payment Instructions
Civil Penalty Payments of Less Than $10,000
Payment of a civil penalty of less than $10,000 proposed or assessed, under Subpart B of
Part 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 Transportation" and should
be sent to:
Federal Aviation Administration
Mike Monroney Aeronautical Center
Financial Operations Division (AMZ-341) P .0. Box 269039
Oklahoma City, OK 73125-4915
Wire transfer payments of less than $10,000 may be made through the Federal Reserve
Communications System (Fedwire) to the account of the U.S. Treasury. Detailed
instructions are provided below. Questions concerning wire transfer should be directed to
the Financial Operations Division at (405) 954-8893, or at the above address.
Civil Penalty Payments of $10,000 or more
Payment of a civil penalty of $10,000 or more proposed or assessed under Subpart B of
Part 190 of the Pipeline Safety Regulations must be made wire transfer (49 C.F.R. §
89.21 (b)(3)), through the Federal Reserve Communications System (Fedwire) to the
account of the U.S. Treasury. Detailed instructions are provided below. Questions
concerning wire transfers should be directed to the Financial Operations Division at ( 405)
954-8893, or at the above address.
4of5



INSTRUCTIONS FOR ELECTRONIC FUND TRANSFERS
(1) RECEIVER ABA NO. (2) TYPE/SUB-TYPE
021030004 (Provided by sending bank)
(3) SENDING BANK ABA NO. (Provided by sending bank) (4) SENDING BANK REF NO.
(Provided by sending bank)·
(5)AMOUNT (6) SENDING BANK NAME
(Provided by sending bank)
(7) RECEIVER NAME TREASNYC (8) PRODUCT CODE
(Normally CTR, or as provided by sending bank)
(9) BENEFICIAL (BNF) =AGENCY LOCATION CODE BNF = I ALC-69-14-000 1 ( 1 0) REASONS FOR PAYMENT
Example: PHMSA - CPF # I Ticket Number/Pipeline
Assessment number
INSTRUCTIONS: You, as sender of the wire transfer, must provide the sending bank with the
information for blocks (1), (5), (7), (9), and (10). The information provided in Blocks (1), (7),
and (9) are constant and remain the same for all wire transfers to the Pipeline and Hazardous
Materials Safety Administration, Department 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 in New York.
Block #5 - AMOUNT - You as the sender provide the amount of the transfer. Please be sure the
transfer amount is punctuated 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 Department.
Block#9- BENEFICIAL- AGENCY LOCATION CODE- "BNF=/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, Department of Transportation.
Block #10- REASON FOR PAYMENT- "AC-payment for PHMSA Case# I To ensure your
wire transfer is credited properly, enter the case number/ticket number or Pipeline Assessment number,
and country."
NOTE: A wire transfer must comply with the format and instructions or the Department cannot
accept the wire transfer. You as the sender can assist this process by notifying the Financial
Operations Division ( 405) 954-8893 at the time you send the wire transfer.
February 2009
.
5 of5

320111016_Closure_01062014_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
January 6, 2014
Mr. Robert W. Carlton
Vice President and Chief Compliance Officer
Southern Star Central Gas Pipeline, Inc.
4700 Highway 56
Owensboro, Kentucky 42301
Re: CPF 3-2011-1016
Dear Mr. Carlton:
On June 17, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Southern Star Central Gas Pipeline, Inc. a Final Order in the above-referenced
case. This Order included a Compliance Order and Civil Penalty assessment. Based on our
review of the documentation you provided and confirmation of payment of the civil
penalty, it has been determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to
the matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Linda Daugherty
Director, Central Region
Pipeline and Hazardous Materials Safety Administration

320111016_Final Order_06172013_text.pdf

JUNE 17, 2013
Mr. Jerry L. Morris
President and Chief Executive Officer
Southern Star Central Gas Pipeline, Inc.
4700 Highway 56
Owensboro, KY 42301
Re: CPF No. 3-2011-1016
Dear Mr. Morris:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a civil penalty of $25,300, and specifies actions that need to be taken by
Southern Star to comply with the pipeline safety regulations. This letter acknowledges receipt of
payment of the full penalty amount, by wire transfer, dated November 22, 2011. When the terms
of the Compliance Order have been completed, as determined by the Director, Central Region,
this enforcement action will be closed. Service of the Final Order by certified mail is deemed
effective upon the date of mailing, or as otherwise provided
- **truncated:** true
- **body characters:** 57196