{"operation":"document","citation":"CPF 320121004","title":"ROCKIES EXPRESS PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-06-15","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.225(a), 192.235, 192.241(a)(2), 192.303, 192.305, 192.319(a), 192.319(b)(2), 192.461(a)(1), 192.461(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320121004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320121004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320121004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320121004","body":"Notice of Probable Violation involving ROCKIES EXPRESS PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 192.225(a),  192.235,  192.241(a)(2),  192.303,  192.305,  192.319(a),  192.319(b)(2),  192.461(a)(1),  192.461(c). The case was opened on 2012-06-15 and is reported as closed as of 2014-04-18. Proposed civil penalty: $641,900. Assessed civil penalty: $577,067. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320121004_Closure_04182014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320121004/320121004_Closure_04182014.pdf\n\n320121004_Closure_04182014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320121004/320121004_Closure_04182014_text.pdf\n\n320121004_Consent Agreement and Order_11022012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320121004/320121004_Consent%20Agreement%20and%20Order_11022012.pdf\n\n320121004_Consent Agreement and Order_11022012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320121004/320121004_Consent%20Agreement%20and%20Order_11022012_text.pdf\n\n320121004_NOPV PCP_06152012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320121004/320121004_NOPV%20PCP_06152012.pdf\n\n320121004_NOPV PCP_06152012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320121004/320121004_NOPV%20PCP_06152012_text.pdf\n\n320121004_Consent Agreement and Order_11022012_text.pdf\n\nNOVEMBER 2, 2012\nVIA CERTIFIED MAIL\nMr. M. Dwayne Burton\nVice President, Operations and Engineering\nRockies Express Pipeline, LLC\nKinder Morgan Energy Partners, L.P.\n500 Dallas Street, Suite 1000\nHouston, TX 77002\nRe: CPF Nos. 3-2012-1003; 1004; 1005\nConsent Agreement and Order\nDear Mr. Burton:\nEnclosed is a Consent Agreement and Order that you signed on October 17, 2012 in the above-\nreferenced cases. Your receipt of this Consent Agreement and Order constitutes service of that\ndocument under 49 C.F.R. § 190.5.\nPlease direct any questions on this matter to David Barrett, Director, Central Region, Office of\nPipeline Safety, PHMSA, at (816) 329-3800.\nSincerely,\nJeffrey Wiese\nAssociate Administrator\nFor Pipeline Safety\ncc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nMr. David Barrett, Director, Central Region, OPS\nMr. Robert E. Hogfoss, Esq., Hunton & Williams LLP\nMs. Catherine Little, Esq., Hunton & Williams LLP\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\n____________________________________\nIn the Matter of )\n)\n)\nRockies Express Pipeline, LLC, ) CPF Nos. 3-2012-1003;\n) 1004; 1005\nRespondent )\n____________________________________)\nCONSENT AGREEMENT AND ORDER\nFrom July 2007 through November 2009, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of title 49 United States\nCode, conducted on-site inspections of the construction of approximately 1,351 miles of the\nRockies Express pipeline system, a 42-inch diameter natural gas pipeline running from Colorado\nto Ohio (REX Pipeline) constructed in two separate phases designated as the REX West pipeline\nand the REX East pipeline.1 As a result of these inspections, on June 15, 2012, PHMSA issued\nthree Notices of Probable Violation (Notices) to Rockies Express Pipeline, LLC and Kinder\nMorgan Energy Partners, L.P.\nThe first Notice, CPF 3-2012-1003, alleged 13 violations of the federal pipeline safety\nregulations in 49 C.F.R. Part 192 in connection with the construction of the REX West pipeline\nand proposed assessing a total civil penalty of $347,800 for 11 of the alleged violations. The\nNotice also proposed ordering certain measures to correct four of the alleged violations to ensure\nthe possibility of any remaining construction defects is addressed.\nThe second Notice, CPF 3-2012-1004, alleged 14 violations of the federal pipeline safety\nregulations in 49 C.F.R. Part 192 in connection with the construction of the REX East pipeline\nand proposed assessing a total civil penalty of $641,900 for the alleged violations.\nThe third Notice, CPF 3-2012-1005, alleged a violation of a Special Permit Order issued by\nPHMSA on July 5, 2006 and proposed assessing a civil penalty of $61,800 for this alleged\nviolation.\n1 The REX West pipeline runs from Weld County, Colorado to Audrain County, Missouri. The REX East pipeline\nruns from Audrain County, Missouri to Monroe County, Ohio.2\n\n\n\nThe alleged violations cited in these Notices involve, inter alia, welding procedures and\npractices; weld inspections, testing and quality control; ditching, padding, lowering-in, and\nbackfilling; coating application and repairs; maximum allowable operating pressure design factor\nin some Class 2 locations; depth of cover in certain areas; and other construction specifications\nand standards.\nOn July 16, 2012, Rockies Express Pipeline, LLC (Respondent) submitted a combined response\nto the Notices providing information concerning the extent to which it had cooperated with\nPHMSA’s investigation and self-identified some of the alleged violations cited in the Notices.\nRespondent also provided information concerning the corrective actions it has taken, reserved its\nright to a hearing, and requested consultations with PHMSA on the disposition of all three\nNotices. Respondent and PHMSA engaged in good faith settlement discussions resulting in this\nConsent Agreement and Order.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and that entry of this Consent Agreement and Order is the most appropriate means of\nresolving the Notices, pursuant to 49 C.F.R. Part 190, without adjudication of any issue of fact or\nlaw, and upon consent and agreement of Respondent and PHMSA (“the Parties”), the following\nis agreed upon and Ordered:\nI. General Provisions\n1. Respondent acknowledges that Respondent and its pipeline system are subject to the\njurisdiction of the Federal pipeline safety laws, 49 U.S.C. 60101 et seq., and the regulations and\nadministrative orders issued thereunder. For purposes of this Consent Agreement and Order,\nRespondent acknowledges that it received proper notice of PHMSA’s action in this proceeding\nand that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. 60101\net seq. and the regulations and orders issued thereunder.\n2. Respondent, for purposes of this Consent Agreement and Order, does not contest the\nallegations made in the Notices and agrees to abide by the terms of this Consent Agreement and\nOrder. Respondent agrees to pay the civil penalty as set forth in Section VI of this Consent\nAgreement and Order, and agrees to achieve compliance by completing the actions specified in\nSection II (“Work to be Performed”). These actions, including any work plans and schedules,\nshall be automatically incorporated into this Consent Agreement and Order. This Consent\nAgreement and Order does not constitute a finding of violation of any Federal law or regulation\nand may not be used in any civil proceeding of any kind as evidence or proof of any fact, fault or\nliability, or as evidence of the violation of any law, rule, regulation or requirement, except in a\nproceeding to enforce the provisions of this Consent Agreement and Order.\n3. Respondent consents to the issuance of this Consent Agreement and Order, and hereby\nwaives any further procedural requirements with respect to its issuance. Respondent waives all\nrights to contest the Notices, or the validity of this Consent Agreement and Order, including all\nrights to administrative or judicial hearings or appeals.\n3\n\n\n\n4. This Consent Agreement and Order shall apply to and be binding upon PHMSA, and\nupon Respondent, its officers, directors, and employees, and its successors, assigns, or other\nentities or persons otherwise bound by law. Respondent agrees to provide a copy of this Consent\nAgreement and Order, and any incorporated work plans and schedules, to all of Respondent’s\nofficers, employees, and agents whose duties might reasonably include compliance with this\nConsent Agreement and Order.\n5. For all transfers of ownership or operating responsibility of Respondent’s REX pipeline,\nRespondent shall provide a copy of this Consent Agreement and Order to the prospective\ntransferee at least 10 business days prior to such transfer and simultaneously provide written\nnotice of the prospective transfer to the PHMSA Regional Director who issued the Notices.\n6. This Consent Agreement and Order constitutes the final, complete and exclusive\nagreement and understanding between the Parties with respect to the settlement embodied in this\nConsent Agreement and Order, and the Parties acknowledge that there are no representations,\nagreements or understandings relating to the settlement other than those expressly contained in\nthis Consent Agreement and Order, except that the terms of this Consent Agreement and Order\nmay be construed by reference to the Notices.\n7. Nothing in this Consent Agreement and Order affects or relieves Respondent of its\nresponsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49\nU.S.C. § 60101 et seq., and the regulations and orders issued thereunder. Nothing in this\nConsent Agreement and Order alters PHMSA’s right of access, entry, inspection, and\ninformation gathering or PHMSA’s authority to bring enforcement actions against Respondent\npursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any\nother provision of Federal or State law.\n8. This Consent Agreement and Order does not waive or modify any Federal, State, or local\nlaws or regulations that are applicable to Respondent’s pipeline systems. This Consent\nAgreement and Order is not a permit, or a modification of any permit, under any Federal, State,\nor local laws or regulations. Respondent remains responsible for achieving and maintaining\ncompliance with all applicable Federal, State, and local laws, regulations and permits.\n9. This Consent Agreement and Order does not create rights in, or grant any cause of action\nto, any third party not party to this Agreement. The U.S. Department of Transportation is not\nliable for any injuries or damages to persons or property arising from acts or omissions of\nRespondent or its officers, employees, or agents carrying out the work required by this Consent\nAgreement and Order. Respondent agrees to hold harmless the U.S. Department of\nTransportation, its officers, employees, agents, and representatives from any and all causes of\naction arising from any acts or omissions of Respondent or its contractors in carrying out the\nwork required by this Consent Agreement and Order.\n4\n\n\n\nII. Work to be Performed\n10. Within 45 days of the Effective Date of this Consent Order and Agreement, Respondent\nagrees to submit to the Director, Central Region, PHMSA (Regional Director) a plan and\nschedule for completion of the actions set forth in the Proposed Compliance Order of the CPF 3-\n2012-1003 Notice as follows:\n(a) In regard to Items 3 and 8 of the Notice pertaining to the quality of girth weld radiographs\nand Items 4 and 6 pertaining to girth weld defects, Respondent agrees to submit the\nanalysis for girth weld anomalies in the magnetic flux leakage in-line inspections it has\nrun in accordance with conditions 37 and 38 of the Special Permit Order, to develop and\nimplement a plan to address the potential for remaining girth weld defects resulting from\ninadequate radiography or delayed cracking that was not identified during girth weld\nremediation activities, and to submit these items to the Regional Director.\n(b) Respondent agrees to maintain documentation of the costs associated with fulfilling the\nrequirements of paragraph (a) and to report the costs to the Regional Director in three\ncategories: (1) costs associated with testing, evaluations, studies, and information\nanalysis; (2) costs associated with preparation or revision of plans or procedures; and (3)\ncosts associated with physical changes to pipeline facilities, including repairs,\nreplacements and other modifications.\n11. The Regional Director may grant an extension of time for completion of any of the work\nto be performed hereunder upon a timely written request that demonstrates both good cause for\nan extension and sufficient detail to evaluate Respondent’s good cause request.\nIII. Review and Approval Process\n12. With respect to any submission under Section II of this Consent Agreement and Order\nthat requires the approval of the Regional Director, the Regional Director may: (a) approve, in\nwhole or in part, the submission, (b) approve the submission on specified conditions, (c)\ndisapprove, in whole or in part, the submission, or (d) any combination of the foregoing. In the\nevent of approval, approval in part, or approval upon conditions, Respondent will proceed to take\nall action required by the submission as approved by the Regional Director, subject to\nRespondent’s right to invoke the dispute resolution procedures in this section with respect to any\nconditions identified by the Regional Director. In the event that the Regional Director\ndisapproves all or any portion of the submission, the Director will provide Respondent with a\nwritten notice of the deficiencies. Respondent may seek review by the Associate Administrator\nif Respondent disagrees with Regional Director and the decision by the Associate Administrator\nwill constitute final agency action with respect to the determination made on the submission.\nUnless judicial review is sought by Respondent, upon receipt of the decision, Respondent will\ncorrect all deficiencies within the time specified by the Director and resubmit it for approval.\n5\n\n\n\nIV. Enforcement of Agreement and Order\n13. This Consent Agreement and Order is subject to all enforcement authorities available to\nPHMSA under 49 U.S.C. § 60101 et seq. and 49 C.F.R. Part 190, including administrative civil\npenalties under § 60122 of up to $200,000 per violation for each day the violation continues, if\nPHMSA determines that Respondent is not proceeding in accordance with terms of the Consent\nAgreement and Order, in accordance with determinations made by the Regional Director, or if\nappealed, in accordance with decisions of the Associate Administrator. All work plans and\nassociated schedules set forth or referenced in Section II shall be automatically incorporated into\nthis Consent Agreement and Order and are enforceable in the same manner.\nV. Record Keeping and Information Disclosure\n14. Respondent agrees to maintain records demonstrating compliance with all requirements\nof this Consent Agreement and Order for a period of at least five years following completion of\nall work to be performed. For any reports, plans, or other deliverables required to be submitted\nto PHMSA pursuant to this Consent Agreement and Order, Respondent may assert a claim of\nbusiness confidentiality or other protections applicable to the release of information by PHMSA,\ncovering part or all of the information required to be submitted to PHMSA pursuant to this\nagreement in accordance with 49 C.F.R. Part 7. The claim of confidentiality shall be marked in\nwriting on each page, and shall include a statement specifying the grounds for each claim of\nconfidentiality. PHMSA shall determine release of any information submitted pursuant to this\nConsent Agreement and Order in accordance with 49 C.F.R. Part 7, the Freedom of Information\nAct, 5 U.S.C. § 552, DOT and/or PHMSA policies, and other applicable regulations and\nExecutive Orders.\nVI. Civil Penalties\n15. Respondent agrees to pay $945,900 in civil penalties no later than 10 business days\nfollowing the Effective Date of this Consent Agreement and Order. Federal regulations (49\nC.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.\n16. Failure to pay the $945,900 civil penalty will result in accrual of interest at the current\nannual rate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23.\nPursuant to those same authorities, a late penalty charge of six percent (6%) per annum will be\ncharged if payment is not made within 110 days of service. Furthermore, failure to pay the civil\npenalty may result in referral of the matter to the Attorney General for appropriate action in a\ndistrict court of the United States.\n6\n\n\n\n17. At the time of payment, Respondent agrees to simultaneously send written notice of the\npayment and a copy of the payment transmittal documentation to:\nDavid Barrett\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 462\nKansas City, MO 64106\nRod Dyck\nDirector of Enforcement\nPipeline and Hazardous Materials Safety Administration\n1200 New Jersey Avenue, SE, Room E24-302\nWashington, DC 20590\n18. Respondent agrees that the civil penalty payment specified in paragraph 15 will not be\ndeductible by Respondent or any of its affiliates for purposes of Federal taxes.\nVII. Effective Date\n19. The “Effective Date” as used herein is the date on which this Consent Agreement and\nOrder has been signed by both Respondent and PHMSA. Unless specified to the contrary, all\ndeadlines for actions required by this Consent Agreement and Order run from the Effective Date\nof this Consent Agreement and Order.\nVIII. Modification\n20. The terms of this Consent Agreement and Order may be modified by mutual agreement\nof the parties. Such modifications shall be in writing and shall be signed by both parties.\nIX. Termination\n21. This Consent Agreement and Order shall terminate upon payment of the civil penalty and\nthe completion of all terms set forth in Section II (Work to Be Performed) as determined by the\nDirector, Central Region. Respondent may request written confirmation from PHMSA when this\nConsent Agreement and Order is terminated. Nothing in this Consent Agreement and Order\nprevents Respondent from completing any of the obligations earlier than the deadlines provided\nfor herein.\n7\n\n\n\nX. Ratification\n22. The parties undersigned representatives certify that they are fully authorized to enter into\nthe terms and conditions of this Consent Agreement and Order and to execute and legally bind\nsuch party to this document.\n23. The Parties hereby agree to all conditions and terms of this Consent Agreement and\nOrder:\nFor Respondent:\n______________________________________\nMr. M. Dwayne Burton\nVice President, Operations and Engineering\nRockies Express Pipeline, LLC\n______________________________________\nDate\nFor PHMSA:\nRespondent is hereby ordered to comply with the terms of this Consent Agreement and Order,\neffective immediately.\n_______________________________________\nMr. Jeffrey D. Wiese\nAssociate Administrator for Pipeline Safety\nPHMSA\n_______________________________________\nDate\n8\n\n320121004_Closure_04182014_text.pdf\n\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED\nApril 18, 2014\nMr. Mick Rafter\nVice President, Operation and EHS\nTallgrass Energy Partners L.P.\n370 Van Gordon Street\nLakewood, Colorado 80228\nCPF 3-2012-1004\nCPF 3-2012-1005\nDear. Mr. Rafter:\nOn June 15, 2012, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Rockies Express Pipeline LLC (REX) three Notices of Probable Violation\n(Notices), specifically CPF’s 3-2012-1003, 3-2012-1004, and 3-2012-1005. Furthermore, a\nConsent Agreement & Order (Order) was issued to Kinder Morgan Energy Partners, L.P.\non November 2, 2012, resolving the three Notices. Subsequent to the issuance of the\nOrder, Tallgrass Energy Partners L.P. purchased the REX pipeline.\nBecause a civil penalty was the only relief sought in CPF 3-2012-1004 and CPF 3-2012-\n1005 and payment has been made as agreed in the Order, CPFs 3-2012-1004 and 3-2012-\n1005 are now closed.\nThe case CPF 3-2012-1003 shall remain open and the terms of the Consent Agreement &\nOrder in effect until all “Work to be Performed” as described in the Order is completed.\nFor future correspondence regarding the Order, please refer to CPF 3-2012-1003.\nThank you for your cooperation in this matter. If you have any questions please feel free to\ncontact me.\nSincerely,\nLinda Daugherty\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\ncc: Dan Prascher, Tallgrass, Compliance Manager (via email)","truncated":false,"body_characters":20789}