{"operation":"document","citation":"CPF 320131015","title":"PANHANDLE EASTERN PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-08-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.619(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320131015.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320131015.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320131015","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320131015","body":"Notice of Probable Violation involving PANHANDLE EASTERN PIPELINE CO. PHMSA's enforcement data identifies the cited regulation as 192.619(a). The case was opened on 2013-08-20 and is reported as closed as of 2014-04-09. Proposed civil penalty: $92,400. Assessed civil penalty: $92,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320131015_Final Order_04092014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320131015/320131015_Final%20Order_04092014.pdf\n\n320131015_Final Order_04092014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320131015/320131015_Final%20Order_04092014_text.pdf\n\n320131015_NOPV PCP_08202013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320131015/320131015_NOPV%20PCP_08202013.pdf\n\n320131015_NOPV PCP_08202013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320131015/320131015_NOPV%20PCP_08202013_text.pdf\n\n320131015_Operator Response to Notice_09172013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320131015/320131015_Operator%20Response%20to%20Notice_09172013.pdf\n\n320131015_Final Order_04092014_text.pdf\n\nAPRIL 9, 2014\nMr. Kelcy L. Warren\nEnergy Partners, LP\n3738 Oak Lawn Avenue\nDallas, TX 75219\nRe: CPF No. 3-2013-1015\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a civil penalty of $92,400. This is to acknowledge receipt of payment of\nthe full penalty amount, by wire transfer, dated September 17, 2013. This enforcement action is\nnow closed. Service of the Final Order by certified mail is deemed effective upon the date of\nmailing, or as otherwise 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: Ms. Linda Daugherty, Director, Central Region, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\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 )\nPanhandle Eastern Pipe Line Company, ) )\n)\n)\nRespondent. )\n____________________________________)\nCPF No. 3-2013-1015\nFINAL ORDER\nOn July 10, 2012, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site\npipeline safety inspection of the records of Panhandle Eastern Pipe Line Company’s (PEPL or\nRespondent) meter and regulator stations in Centertown, Missouri and Auburn, Illinois.\nPanhandle Eastern Pipe Line Company, a subsidiary of Energy Partners LP, operates a 6,500-mile\npipeline system with access to diverse supply sources and can deliver 2.8 Bcf/d of natural gas to\nMidwest and East Coast markets.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated August 20, 2013, 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 Energy\nTransfer Partners had violated 49 C.F.R. § 192.619(a) and proposed assessing a civil penalty of\n$92,400 for the alleged violations.\nPEPL responded to the Notice by letter dated September 17, 2013 (Response). The company did\nnot contest the allegations of violation and paid the proposed civil penalty of $92,400, as provided\nin 49 C.F.R. § 190.227. Payment of the penalty serves to close the case with prejudice to\nRespondent.\nFINDINGS OF VIOLATION\nIn its Response, PEPL did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.619(a), which states:\n1 http://www.panhandleenergy.com/comp_pep.asp (last accessed on January 6, 2014)\n\n\n\n2\n§ 192.619 Maximum allowable operating pressure: Steel or plastic pipelines.\n(a) No person may operate a segment of steel or plastic pipeline at a\npressure that exceeds a maximum allowable operating pressure determined\nunder paragraph (c) or (d) of this section, or the lowest of the following:…\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.619(a) by operating the pipeline\ndownstream of the Centertown, Missouri M & R station at a pressure that exceeded the\nestablished maximum allowable operating pressure (MAOP). Specifically, the Notice alleged that\non October 28, 2011, PEPL’s working and monitor regulators at the Centertown, Missouri’s M &\nR station malfunctioned, allowing the operating pressure to reach 486 psig, which exceeded the\nMAOP of 99 psig. Due to moisture in the upstream pipeline, the pilot regulator failed to limit the\npressure downstream. As a result, the pipeline operated above 110 psig for approximately 9\nhours. Respondent did not contest this allegation of violation. Accordingly, based upon a review\nof all of the evidence, I find that Respondent violated 49 C.F.R. § 192.619(a) by operating the\npipeline downstream of Centertown, Missouri and Auburn, Illinois M & R stations at pressures\nthat exceeded the established MAOP.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.619(a), as stated above, by\noperating the pipeline downstream of the Auburn, Illinois M & R station at a pressure that\nexceeded the established MAOP. Specifically, the Notice alleged that on April 26, 2012, PEPL’s\nworking and monitor regulators at the Auburn, Illinois M & R station malfunctioned, allowing the\noperating pressure to reach 550 psig, which exceeded the MAOP of 307 psig. As a result, the\npipeline operated above its MAOP for approximately 1½ hours. Respondent did not contest this\nallegation of violation. Accordingly, based upon a review of all of the evidence, I find that\nRespondent violated 49 C.F.R. § 192.619(a) by operating the pipeline downstream of the Auburn,\nIllinois M & R station at a pressure which exceeded the established MAOP.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken 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. In determining the amount of a civil penalty under 49 U.S.C. § 60122\nand 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and\ngravity of the violation, including adverse impact on the environment; the degree of Respondent’s\nculpability; the history of Respondent’s prior offenses; the Respondent’s ability to pay the penalty\nand any effect that the penalty may have on its ability to continue doing business; and the good\nfaith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I\nmay consider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a total\ncivil penalty of $92,400 for the violations cited above.\n\n\n\n3\nItem 1: The Notice proposed a civil penalty of $46,200 for Respondent’s violation of 49 C.F.R.\n§ 192.619(a), for failing to operate the pipeline at a pressure below the established MAOP. PEPL\nneither contested the allegation nor presented any evidence or argument justifying a reduction in\nthe proposed penalty. Accordingly, having reviewed the record and considered the assessment\ncriteria, I assess Respondent a civil penalty of $46,200 for violation of 49 C.F.R. § 192.619(a).\nItem 2: The Notice proposed a civil penalty of $46,200 for Respondent’s violation of 49 C.F.R.\n§ 192.619(a), for failing to operate the pipeline at a pressure below the established MAOP.\nEnergy Transfer Partners neither contested the allegation nor presented any evidence or argument\njustifying a reduction in the proposed penalty. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $46,200 for violation of\n49 C.F.R. § 192.619(a).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $92,400, which has already been\npaid in full.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":8598}