{"operation":"document","citation":"CPF 320141008S","title":"PANHANDLE EASTERN PIPELINE CO — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-12-24","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320141008s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320141008s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320141008s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320141008S","body":"Safety Order involving PANHANDLE EASTERN PIPELINE CO. The dataset does not identify a cited regulation for this case. The case was opened on 2014-12-24 and is reported as closed as of 2020-02-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320141008S_Closure Letter_02212020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Closure%20Letter_02212020.pdf\n\n320141008S_Closure Letter_02212020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Closure%20Letter_02212020_text.pdf\n\n320141008S_Consent Agreement_04012015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Agreement_04012015.pdf\n\n320141008S_Consent Agreement_04012015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Agreement_04012015_text.pdf\n\n320141008S_Consent Order_04162015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Order_04162015.pdf\n\n320141008S_Consent Order_04162015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Order_04162015_text.pdf\n\n320141008S_Notice of Proposed Safety Order_12242014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Notice%20of%20Proposed%20Safety%20Order_12242014.pdf\n\n320141008S_Notice of Proposed Safety Order_12242014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Notice%20of%20Proposed%20Safety%20Order_12242014_text.pdf\n\n320141008S_Operator Response to Notice and Request for Hearing_01232015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing_01232015.pdf\n\n320141008S_Consent Agreement_04012015_text.pdf\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\n)\nIn the Matter of )\n)\nPanhandle Eastern Pipe Line Company, LP, )\na subsidiary of Energy Transfer Partners, LP, )\n)\nRespondent )\n)\n) CPF No. 3-2014-1008S\nCONSENT AGREEMENT\nOn December 24, 2014, the Regional Director for the Central Region (the Region or Region 3)\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS or the Agency), issued a Notice of Proposed Safety Order (Notice) to Panhandle\nEastern Pipe Line Company, LP. (PEPL or Respondent), a subsidiary of Energy Transfer\nPartners, L.P. (ETP). The Notice alleged that conditions exist on PEPL’s pipeline system that\nmay pose a pipeline integrity risk to public safety, property, or the environment. The Notice also\nproposed that PEPL take certain corrective measures to remedy the alleged conditions and ensure\nthat the public, property, and the environment are protected from the potential risk.\nPEPL responded to the Notice by timely submitting an “Invocation of Information Consultation\nand Request for Hearing,” “Statement of Issues,” and “Request for Hearing” dated January 23,\n2015 (Request for Hearing). An informal consultation was held on March 18, 2015.\nDuring the informal consultation, the PHMSA and PEPL agreed that settlement of this\nproceeding will avoid further administrative proceedings or litigation of this Notice and that\nentry into this Consent Agreement is the most appropriate means of resolving issues raised in the\nNotice and in the public interest. Therefore, pursuant to 49 C.F.R. Part 190, without adjudication\nof any issue of fact or law, and upon consent and agreement of Respondent and the PHMSA (the\nParties), the Parties agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of PEPL, Respondent and its\npipeline system are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. §\n60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of\nthis Consent Agreement, Respondent acknowledges that it received proper notice of the\nPHMSA's action in this proceeding and that the Notice states claims upon which relief may be\ngranted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders issued thereunder.\n\n\n\n2. Respondent agrees, for purposes of this Consent Agreement, to address the\nintegrity risks identified in the Notice by completing the actions specified in Section II of this\nagreement (Corrective Measures) and to abide by the terms of this Consent Agreement. These\nactions, including any work plans and schedules, shall automatically be incorporated into this\nConsent Agreement. This Consent Agreement does not constitute a finding of violation of any\nFederal law or regulation and may not be used in any civil or administrative proceeding of any\nkind as evidence or proof of any fact, fault or liability, or as evidence of the violation of any law,\nrule, regulation or requirement, except in a proceeding to enforce the provisions of this Consent\nAgreement.\n3. After Respondent returns this signed agreement, the PHMSA's representative will\npresent it to the Associate Administrator for Pipeline Safety recommending that the Associate\nAdministrator adopt the terms of this agreement by issuing an administrative order (Consent\nOrder) incorporating the terms of this Consent Agreement. The terms of this agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of the agreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Consent Agreement,\nincluding all rights to administrative or judicial hearings or appeals. Upon issuance of a Consent\nOrder for this matter, Respondent’s Request for Hearing will be deemed withdrawn.\n5. This Consent Agreement shall apply to and be binding upon the 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 any incorporated work plans and schedules to all of Respondent's officers,\nemployees, and agents whose duties might reasonably include compliance with this Consent\nAgreement.\n6. For all transfers of ownership or operating responsibility of Respondent’s PEPL\npipeline, Respondent shall provide a copy of this Consent Agreement to the prospective\ntransferee at least 30 days prior to such transfer and simultaneously provide written notice of the\nprospective transfer to the PHMSA Region Director (Director) who issued the Notice.\n7. This Consent Agreement constitutes the final, complete and exclusive agreement\nand understanding between the Parties with respect to the settlement embodied in this Consent\nAgreement, and resolves any claims that have been or could have been alleged regarding the\nMay 5, 2009 Line 200 incident near Rockville, Indiana (including PHMSA CPF 3-2009-1009H),\nitems found during the Kansas and Missouri inspection conducted from June 18, 2012 to July\n2012 involving 49 CFR Part 192, Subpart I – Requirements for Corrosion Control, the November\n28, 2013 Line 400 incident near Houstonia, Missouri and the October 13, 2014 Line 100 incident\nnear Centerview, Missouri. The Parties acknowledge that there are no representations,\nagreements or understandings relating to the settlement other than those expressly contained in\nthis Consent Agreement, except that the terms of this Consent Agreement may be construed by\n2\n\n\n\nreference to the Notice. CPF 3-2009-1009H will be closed once PEPL submits its Final Report to\nthe Director.\n8. Nothing in this Consent Agreement 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 alters the PHMSA's right of access, entry, inspection, and information\ngathering or the PHMSA's authority to bring enforcement actions against Respondent pursuant to\nthe Federal pipeline safety laws, the regulations and orders issued thereunder, or any other\nprovision of Federal or State law.\n9. This Consent Agreement does not waive or modify any Federal, State, or local\nlaws or regulations that are applicable to Respondent's pipeline systems. This Consent\nAgreement is not a permit, or a modification of any permit, under any Federal, State, or local\nlaws or regulations. Respondent remains responsible for achieving and maintaining compliance\nwith all applicable Federal, State, and local laws, regulations and permits.\n10. This Consent Agreement does not create rights in, or grant any cause of action to,\nany third party not party to this Consent Agreement. The U.S. Department of Transportation is\nnot liable 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. Respondent agrees to hold harmless the U.S. Department of Transportation, its\nofficers, employees, agents, and representatives from any and all causes of action arising from\nany acts or omissions of Respondent or its contractors in carrying out any work required by this\nConsent Agreement.\nII. Corrective Measures\n11. Measures set forth below.\nUpon issuance of the Consent Order, Respondent agrees to perform the Corrective\n12. complete the following:\nRegarding the 100 Line failure occurring on October 13, 2014, PEPL shall\n(A) (B) Within 90 days of the Effective Date of this Order, PEPL shall complete a\nroot cause failure analysis (RCFA) for the 100 Line failure occurring on\nOctober 13, 2014, and submit a final report for this RCFA to the Director.\nThe RCFA shall include the results of the mechanical coupling testing\nbeing conducted at Stress Engineering and prior coupling failures.\nRecommended actions to address the contributing factors shall be included\nin the report as long as it is not inconsistent with 49 CFR Part 192 or\nindustry best practices and discussed with the Director to develop an\nappropriate implementation schedule.\nWithin 45 days of the Effective Date of this Order, complete mechanical\nand metallurgical testing and failure analysis of the failed pipe, including\nan analysis of soil samples and any foreign materials. Ensure that the\n3\n\n\n\n(C) (D) testing laboratory provides any report, whether draft or final, in its entirety\nto the Director at the same time it is presented to PEPL.\nThe pipeline segment from mainline valve (MLV) 105 to MLV 106 gate is\ncurrently limited to operation at a pressure not to exceed 75 psig. In the\nevent that PEPL requires operation of that segment above 75 psig, PEPL\nwill provide to the PHMSA a plan for the Director’s approval prior to\nresuming operations at higher pressures. As appropriate based on the final\nidentified RCFA contributing factors, the plan shall include the following:\ni. Instrumented leak survey between MLVs 105 and 106 to include\nassociated farm taps or temporary school line replacements. Any\nleaks found must be remediated before continuing on with the\nrestart plan.\nii. Specify a daylight pressure increase and include advance\nnotification with the local emergency response officials.\niii. Reinforcing or removing 100 Line couplings located on the\nproperty associated with the failure or the adjacent road crossing\nand exhibiting characteristics or under influences identified by the\nRCFA.\nWithin 1 year after the Effective Date of this Order, PEPL will develop a\nCoupling Remedial Work Plan (Coupling RWP) which is intended to\naddress integrity issues on pipeline segments exhibiting the similar\nproperties, characteristics or outside force influences as those determined\nto be causal to the 100 line failure or other coupling failures. The\nCoupling RWP shall be submitted to the Director for approval. Elements\nof the Coupling RWP will include:\ni. Reinforce or remove 200 Line couplings on the property or the\nadjacent road crossing associated with the failure that exhibit\ncharacteristics or are under influences identified by the RCFA.\nCompletion dates for this activity will be proposed in the Coupling\nRWP and approved by the PHMSA.\nii. Reinforce or remove couplings on the 100 and 200 Lines located in\nan HCA or within the calculated potential impact radius (PIR) that\ncontains one or more structures intended for human occupancy that\nexhibit characteristics or are under influences identified by the\nRCFA. Where warranted, the reinforcement or removal of the\ncouplings located in these areas shall be completed within no more\nthan 5 years from the Effective Date of this Order.\niii. Conduct aerial instrumented (LIDAR) survey annually on lines\n100 and 200 until items i. and ii. are complete and provide a\n4\n\n\n\npriority based response/repair schedule for all leaks utilizing the\nfollowing categories:\na. Leaks identified as an imminent public safety threat as\ndefined through joint agreement by the PHMSA and PEPL;\nb. Leak indications located in an high consequence area\n(HCA) or Class 3 area;\nc. Leak indications located within a PIR that contains a\nstructure intended for human occupancy or a location\nintended of an outdoor area of assembly;\nd. Leak indications located within the right-or-way of an\nactive street, highway, road or railroad;\ne. Leak indications located in an area where the pipeline\noperates above 72% SMYS.\niv. Utilize information gained from the above activities to further\nenhance or refine criteria or characteristics that lead to a response.\nData to be collected and integrated will include ILI data and as-\nfound condition of and environmental conditions (depth of cover,\nsoil stability, compaction, buoyancy factors, coupling engagement,\nleakage, etc.) associated with couplings targeted for reinforcement\nand couplings discovered to be leaking through surveys or patrols.\nv. Consideration of operating pressure reductions if practical to\nmitigate the occurrence or consequences of coupling failures for\nthe 100 and 200 lines.\n13. Regarding the Houstonia 400 Line failure occurring on November 28, 2013,\nPEPL shall complete the following:\n(A) Within 45 days after the Effective Date of this Order, PEPL shall work\nwith the PHMSA to finalize the Houstonia 400 line RCFA reports\n(internal and Blacksmith Group) and have been previously submitted to\nthe PHMSA Central Region. Once finalized, PEPL shall provide for the\nDirector’s review and approval an implementation plan and schedule\naddressing each finding and recommendation identified in the RCFA\nreports. Any finding or recommendation that would exceed one year for\nimplementation will be identified and reviewed for concurrence by the\nDirector. Integrate the findings of the RCFA into other data integration\nefforts and work plan efforts.\n(B) Within 90 days after the Effective Date of this Order, PEPL will develop a\nCorrosion Remedial Work Plan (Corrosion RWP) which is intended to\naddress integrity issues on pipeline segments exhibiting similar properties,\n5\n\n\n\ncharacteristics or influences as those determined to be causal to the\nHoustonia 400 line failure. The Corrosion RWP shall be submitted to the\nDirector for approval. Elements of the Corrosion RWP will include:\ni. Integration of causal factors identified in the RCFA and applied to\nsimilar pipeline segments;\nii. Inline inspection (ILI) tool re-grade to improve accuracy as\nnecessary;\niii. Engineering assessment of low potential areas coincident with\nidentified external corrosion metal loss;\niv. Engineering assessment of similar external corrosion morphology;\nv. Identify required anomaly response, respond to and repair/replace\nas necessary;\nvi. Identify, prioritize and mitigate cathodic protection (CP) system\ndeficiencies;\nvii. Re-run ILI technology if necessary and respond accordingly;\n(C) Within 1 year of the Effective Date of this Order, conduct an aerial\ninstrumented (LIDAR) survey on lines 300 and 400 and provide a priority\nbased response/repair schedule for all leaks utilizing the following\ncategories:\ni. Leaks identified as an imminent public safety threat as defined\nthrough joint agreement by the PHMSA and PEPL;\nii. Leak indications located in an high consequence area (HCA) or\nClass 3 area;\niii. Leak indications located within a PIR that contains a structure\nintended for human occupancy or a location intended of an outdoor\narea of assembly;\niv. Leak indications located within the right-or-way of an active street,\nhighway, road or railroad;\nv. Leak indications located in an area where the pipeline operates\nabove 72% SMYS.\n14. Develop a Process Improvement Remedial Work Plan (Process Improvement\nRWP) to systemically improve the integrity management and corrosion control programs for the\nPEPL system. Within 1 year of the Effective Date of this Order, PEPL must submit, for review\nand approval to the PHMSA, a comprehensive written Process Improvement RWP, including\n6\n\n\n\ntimelines for specific actions of development, process review and implementation. Respondent\nmust address deficiencies, threats or risks, and necessary improvements identified in the RCFAs\nand/or as required under Part 192. As necessary, this may include process improvements,\nintegrity assessments, repair and/or replacement of pipeline assets and other measures. The plan\nwill be designed to improve four strategic areas of the PEPL system performance and must be\nsufficiently detailed with specific tasks, milestones, completion dates and reporting summaries.\nThe Process Improvement RWP shall be submitted to the Director for approval:\n(A) Consultation with Independent Third-Party\ni. ii. Respondent will engage a third party consultant (Consultant)\nacceptable to the PHMSA. PEPL will submit vendor names/\ncredentials for consideration by the PHMSA and the PHMSA will\napprove the list from which Respondent will select one or more\nconsultants to perform this service. As part of its review, PHMSA\nmay request additional information and/or assurances to support\nthe independent nature of the Consultant(s)’s work product. The\nselected Consultant(s) will be utilized to supplement PEPL’s in-\nhouse functional/technical personnel in a review of PEPL current\nand proposed processes/procedures/protocols to identify\nimprovements where applicable in each of the topical areas of the\nProcess Improvement RWP. To this end, specific expertise may be\nbrought to bear within these topical areas and will require an\nindividual or individuals with appropriate expertise to provide the\nconsultancy needed.\nIn general, the scope of the engagement will involve the\nConsultant(s) providing these services/input into the development\nprocess for the Process Improvement RWP including:\na. Review relevant information/procedures/programs related to\nthe topical area including metallurgical and RCFA reports for\nhistorical and relevant incidents (external corrosion and\nmechanical couplings), integrity management program\ndocuments and procedures, safety program elements and\nmanagement systems.\nb. Conduct interviews with in-house functional/technical\npersonnel as needed to gain understanding of current state,\nimproved future state and proposed path to close existing gaps.\nc. Review current actions and procedural changes being\ncontemplated or initiated and compare to the knowledge base\nof the Consultant and recommend incremental improvements\nas warranted.\n7\n\n\n\n(B) i. d. Prepare status reports relative to findings, conclusions,\nrecommendations and incorporation of agreed upon\nimprovements into the Process Improvement RWP and\nresultant deliverables. The Consultant must provide all reports\nto both PEPL and the PHMSA concurrently.\ne. PEPL will provide the PHMSA with written proposed\nresolutions for all of the Consultant’s recommendations.\niii. The Consultant(s) will report directly to an Energy Transfer/PEPL\nleadership team (Vice-President or above). The Consultant’s\nengagement with PEPL will conclude upon approval of the Process\nImprovement RWP by the PHMSA.\nThe four strategic areas with specific targeted improvement opportunities\nare detailed as follows:\nImprove Corrosion Control and Prevention Program\na. Implement the polarized potential (instant off) criteria on the\nPEPL system and address identified low potential areas in\naccordance with PEPL standard operating procedures (D.40);\nb. Modify the procedures regarding CP ground bed analysis and\nreplacement to include provisions for testing the adequacy of\nnegative connections in order to provide and monitor levels of\nCP to all parallel pipelines;\nc. Improve the methodology, tracking and completion of\nprioritized activities related to the remediation of CP\ndeficiencies;\nd. Develop a management system to track and report on\ndeficiencies discovered and action items completed;\ne. Modify procedures to require mitigation of CP deficiencies in a\nspecified time frame that is within the regulatory framework of\nthe inspection frequency;\nf. Add additional CP current density to account for/mitigate the\npotential Microbiologically Induced Corrosion (MIC) effect on\ncorrosion growth rates where applicable;\ng. Provide training to field technicians on proper analysis of\ncurrent distribution, rectifier placement, and negative cable\nconnections;\n8\n\n\n\nii. h. Require corrosion technicians and corrosion specialists to\ncomplete comprehensive CP data analysis;\ni. Evaluate the current status of the Company’s corrosion control\nprocedures, especially those relating to close interval survey\n(CIS) execution and response, data integration of ILI and CIS\nand training to identify if any deficiencies need to be\naddressed;\nj. Review and revision as appropriate, standard operating\nprocedures (SOPs) guiding the pipe inspection process to look\nand/or test for environmental factors including MIC and\nconsideration of it as a contributor to corrosion growth rates;\nk. Evaluate the corrosion growth rate process to determine what if\nany enhancements can be made;\nl. Review and improve management practices related to the\nsetting of priorities for corrosion technicians and the\nmanagement and resource support of their workload;\nm. Review and improve processes and criteria associated with the\ntesting of electrical isolation for cased crossings;\nn. Review and improve processes to identify electrical high\nresistance couplings and remediate (bond across coupling) such\ncouplings to the extent remediation is required to restore\nadequate cathodic protection to the pipeline;\no. Review and identify that processes and procedures clearly\ndefine the term “critical bond.” Provide monitoring criteria for\nall bonds;\np. Ensure processes and procedures associated with CIS identify\nmaximum potentials and ensure that adequate follow-up\nassociated with potential interference is implemented.\nImprove Integrity Management Processes for External Corrosion\nand Mechanical Coupling Threats\na. Enhance the ILI data validation process with the appropriate\nuse and analysis of pseudo digs and excavation of anomalies\nand incorporate CP performance data and ILI run to run\ncalculations in the validation process. A process to define\nappropriate pseudo dig use will be developed;\n9\n\n\n\niii. b. Enhance procedures to verify ILI data is aligned properly and\ncalculations are accurate;\nc. Enhance the process and procedures for data integration;\noverlay CIS and ILI data with GIS and topographical mapping\nfeatures;\nd. Modify and implement the ILI tool specification to require ILI\nservice providers to report the amount of manual grading, the\nassociated parameters, and any changes as a result of the\nmanual analysis for each ILI run;\ne. Expand the annual ILI pre-bid meeting beyond the current\nspecification review of changes to include verification of key\nintegrity concepts such as interaction and data validation and\nILI vendor analyst staffing;\nf. Develop and employ a quality control (QC) process to further\nimprove the accuracy of field measurements of corrosion\nanomalies. Utilize a benchmark measurement system with a\nhigh degree of accuracy to which field measurements can be\ncompared;\ng. Develop and employ an ILI specification, depth of cover, soil\nstability and data integration process to enable ongoing\nintegrity assessments for mechanical couplings;\nh. Develop a grading and prioritization scheme to assess and\nappropriately schedule responses to mechanical coupling\nthreats outside of HCAs and absent structures and outside areas\nwithin the PIR of a line containing a mechanical coupling;\ni. Review the internal processes for pressure reductions and/or\nsubmission of a Safety Related Condition Report.\nEnhanced Safety and Integrity Management Culture through\nReporting, Learning and Training\na. Expand/enhance the existing ETP Safety Culture program and\nprocesses with emphasis on pipeline integrity and corrosion\ncontrol. Apply the existing processes within the Impact Safety\nManagement System to identify, report and manage unwanted\nevents. Utilize the existing system that encourages continuous\nimprovement and a learning culture. Develop specific\nelements and process requirements related to pipeline integrity\nincluding:\n10\n\n\n\n1. Reporting criteria for additional unwanted events and\nissues;\n2. Action item and learning process workflow;\n3. Management of change process workflow;\n4. Development of Key Performance Indicators (KPIs)\nindicative of corrosion control and pipeline integrity\nprocess performance.\nb. In consideration of process and procedure improvements\nresulting from the recent ETP incident history and RCFAs,\nproactively manage the subject improvements and assure a\nformal MOC process occurs. Develop and provide required\ntraining and communication programs to assure people, process\nand technology elements are fully implemented across the\nenterprise and changes are institutionalized accordingly\nincluding:\n1. Update of SOPs and integrity management program\ndocuments;\n2. Training field technicians and subject matter experts\n(SMEs) in Corrosion Control and Integrity Management\nprocedural/program changes;\n3. Provide training and communication to technical support\nand management personnel related to changes in work\nmanagement and management of KPIs;\n4. Provide ongoing attention to outside influences including\norganizational changes, mergers, acquisitions, resource\nchanges, retirements, new hires, etc. and assure that such\nchanges are managed such that safety performance is not\nnegatively impacted.\nc. Provide quarterly process improvement updates to the PHMSA\nincluding status of related changes and KPIs.\niv. Management System/Data Integration\nPEPL shall prepare a strategic data system improvement plan that\nwill allow the effective collection, review, integration and analysis\nof integrity related data. The plan will define how PEPL will\nperform timely analysis of integrity related data, recognize\nintegrity threats, identify effective mitigative and preventative\nmeasures, and support effective decision making. This data system\n11\n\n\n\nstrategic plan shall be completed within 1 year from the Effective\nDate of this Order. This shall be submitted to the Central Region\nDirector for review and comment. An implementation schedule\nshall be submitted to the Central Region Director for approval.\n15. Contact the PHMSA for those events not otherwise a reportable incident, and to\nthe extent practicable, regarding identified belowground leak indications in the pipe body, pipe\nseam or girth weld other than minor coupling leak indications at the e-mail address provided.\n16. Once approved by the Director, each RWP will become incorporated into the\nOrder. These plans may be revised as necessary based on new information or improvement\nopportunities identified in the course of completing the work and in such case shall be submitted\nto the Director for prior approval. The Director may approve plan elements incrementally.\n17. Implement the RWP elements incrementally as approved by the Director,\nincluding any revisions to the plan. The results of all actions taken in accordance with the\napproved plan must be available for review by the PHMSA or the PHMSA representative.\n18. Consent Order Documentation Report (CODR). Respondent must create and\nsubmit on a quarterly basis, a CODR. The intent is for the CODRs to summarize all activities\nand documentation associated with this Order and to identify any activities or documentation for\nthe period reflected in previous report activities so the status of any item in the Order is reflected\nin each report. When the Respondent has concluded all the required items in this Order, it will\nsubmit a final CODR to the Director. This will allow the Director to complete a thorough review\nof all actions taken by the Respondent with regards to this Order prior to approving the closure\nof this Order.\n19. It is requested that PEPL maintain documentation of the costs associated with\nimplementation of the Order, and include in each report submitted pursuant to Item 19, the to-\ndate total costs associated with: (1) preparation and revision of procedures, studies and analyses;\n(2) physical changes to pipeline infrastructure, including repairs, replacements and other\nmodifications; and (3) environmental remediation, if applicable.\n20. The Director may grant an extension of time for compliance with any of the terms\nof the Order upon a written request, timely submitted, demonstrating good cause for an\nextension.\n21. For all submissions based upon this Order that requires the approval of the\nDirector, the Director may (a) approve the submission in whole or in part; (b) impose specific\nconditions; (c) modify the submission to cure any deficiencies; (d) reject the submission in whole\nor in part; or (e) any combination of the above.\n22. PEPL may appeal any decision of the Director to the Associate Administrator for\nPipeline Safety. Decisions of the Associate Administrator are final.\nIII. Review and Approval Process\n23. With respect to any submission under Section II of this Consent Agreement that\nrequires the approval of the Region Director, the Director may: (a) approve, in whole or in part,\n12\n\n\n\nthe submission, (b) approve the submission on specified conditions, (c) disapprove, in whole or\nin part, the submission, or (d) any combination of the foregoing. If the Region Director approves,\napproves in part, or approves with conditions, Respondent will take all action as approved by the\nDirector, subject to Respondent's right to invoke the dispute resolution procedures in Section IV\nwith respect to any conditions the Director identifies. If the Director disapproves all or any\nportion of the submission, the Director will provide Respondent with a written notice of the\ndeficiencies. Respondent will correct all deficiencies within the time specified by the Director\nand resubmit it for approval.\nIV. Dispute Resolution\n24. The Region Director and Respondent will informally attempt to resolve any\ndisputes arising under this Consent Agreement. If Respondent and the Region Director are\nunable to informally resolve the dispute within 15 days, Respondent may request in writing,\nwithin 10 days, a written determination resolving the dispute from the Associate Administrator\nfor Pipeline Safety providing all information that Respondent believes is relevant to the dispute.\nIf the request is submitted as provided herein, the Associate Administrator will issue a final\ndetermination in writing. The existence of a dispute and the PHMSA's consideration of matters\nplaced in dispute will not excuse, toll, or suspend any term or timeframe for completion of any\nwork to be performed under this agreement during the pendency of the dispute resolution process\nexcept as agreed by the Region Director or the Associate Administrator in writing.\nV. Enforcement\n25. This Consent Agreement, as adopted by the Consent Order, is subject to all\nenforcement authorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R.\nPart 190. All work plans and associated schedules set forth or referenced in Section II will be\nautomatically incorporated into this Consent Agreement and are enforceable in the same manner.\nVI. Recordkeeping and Information Disclosure\n26. Unless otherwise required in this Consent Agreement, Respondent agrees to\nmaintain records demonstrating compliance with all requirements of this Consent Agreement for\na period of at least five years following completion of all work to be performed. For any reports,\nplans, or other deliverables required to be submitted to the PHMSA pursuant to this Consent\nAgreement, Respondent may assert a claim of business confidentiality or other protections\napplicable to the release of information by the PHMSA, covering part or all of the information\nrequired to be submitted to the PHMSA pursuant to this agreement in accordance with 49 C.F.R.\nPart 7. Respondent must mark the claim of confidentiality in writing on each page, and include a\nstatement specifying the grounds for each claim of confidentially. The PHMSA determines\nrelease of any information submitted pursuant to this Consent Agreement in accordance with 49\nC.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and/or the PHMSA\npolicies, and other applicable regulations and Executive Orders.\n13\n\n\n\nVII. Effective Date\n27. The “Effective Date” as used herein is the date on which the Order is issued by\nthe Associate Administrator incorporating the terms of this Agreement. Unless specified to the\ncontrary, all deadlines for actions required by this Consent Agreement run from the Effective\nDate of this Order.\nVIII. Modification\n28. The terms of this Consent Agreement may be modified by mutual agreement of\nthe Parties. Such modifications must be in writing and signed by both parties.\nIX. Termination\n29. This Consent Agreement terminates upon completion of all terms set forth in\nSection II (Corrective Measures) as determined by the Director, Central Region. Respondent\nmay request written confirmation from the PHMSA when this Consent Agreement is terminated.\nTo the extent ongoing monitoring is required, the PHMSA may terminate this Consent\nAgreement with respect to all other requirements with the exception of such monitoring. Nothing\nin this Consent Agreement prevents Respondent from completing any of the obligations earlier\nthan the deadlines provided for in this Agreement.\nX. Ratification\n30. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Consent Agreement and to execute and legally bind\nsuch party to this document.\n31. The Parties hereby agree to all conditions and terms of this Consent Agreement:\nFor Respondent:\n______________________________\nRyan K. Coffey\nExecutive Vice President Operations\nPanhandle Eastern Pipe Line Company, LP\n______________________________\nDate\n14\n\n\n\nFor the PHMSA:\n_____________________________\nAllan Beshore\nDirector, Office of Pipeline Safety\nPHMSA Central Region\nU.S. Department of Transportation\n_____________________________\nDate\n15\n\n320141008S_Consent Order_04162015_text.pdf\n\nApril 16, 2015\nMr. Kelcy L. Warren\nChief Executive Officer\nEnergy Transfer Partners, LP\n3738 Oak Lawn Avenue\nDallas, Texas 75219\nRe: CPF No. 3-2014-1008S\nDear Mr. Warren:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween Pipeline and Hazardous Materials Safety Administration and your subsidiary,\nPanhandle Eastern Pipeline Company, LP, that was executed on April 1, 2015. Service of the\nConsent Order and Consent Agreement 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: Mr. Allan Beshore, Director, Central Region, PHMSA\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 )\n)\n)\nPanhandle Eastern Pipe Line Company, LP, a subsidiary of Energy Transfer Partners, LP, )\n)\nRespondent. )\n______________________________________________)\n) CPF No. 3-2014-1008S\nCONSENT ORDER\nBy letter dated December 24, 2014, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to\nPanhandle Eastern Pipe Line Company, LP (PEPL or Respondent), a subsidiary of Energy\nTransfer Partners, LP (ETP) in this case.\nIn accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions existed on PEPL’s\npipeline system that might pose a pipeline integrity risk to public safety, property, or the\nenvironment. The Notice also proposed that PEPL take certain corrective measures to remedy\nthe alleged conditions and ensure that the public, property, and the environment were protected\nfrom the potential risk.\nIn response to the Notice, Respondent requested an informal consultation, whereupon the parties\nengaged in good-faith settlement discussions that resulted in the Consent Agreement attached to\nthis Order and that settles all of the allegations in the Notice.\nAccordingly, the foregoing Consent Agreement is hereby approved and incorporated by\nreference into this Order. The Respondent is hereby ordered to comply with the terms of the\nConsent Agreement, effective immediately.\nPursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case\nfor judicial enforcement.\n\n\n\nCPF No. 3-2014-1008S\nPage 2\nThe terms and conditions of this Consent Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320141008S_Closure Letter_02212020_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nFebruary 21, 2020\nMr. Kelcy L. Warren\nChief Executive Officer\nEnergy Transfer Partners, L.P.\n3738 Oak Lawn Avenue\nDallas, Texas 75219\nCPF 3-2014-1008S\nDear Mr. Warren:\nOn December 24, 2014, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued to your subsidiary, Panhandle Eastern Pipe\nLine Company L.P. (PEPL), a Notice of Proposed Safety Order (Notice) in the above-\nreferenced case. The Notice resulted from an investigation of the safety of PEPL’s\npipeline system, including incidents that occurred on November 28, 2013, on PEPL's 400\nline approximately 4.7 miles downstream of the Houstonia compressor station near\nHughesville, Missouri and the October 13, 2014 failure on the 100 line near Centerview,\nMissouri. Both incidents resulted in significant fire and emergency response requirements.\nAs a result of the investigation, the Notice alleged apparent conditions existed on the\nPEPL’s pipeline system that posed a pipeline integrity risk to the public safety, property or\nthe environment.\nIn response to the Notice, PEPL requested an informal consultation, whereupon the\nparties engaged in good faith discussions that resulted in a Consent Agreement that was\nsigned by PEPL and OPS Director, Central Region, on April 1, 2015. On April 16,\n2015, a Consent Order incorporating the terms of the Consent Agreement was issued\nresolving the Notice.\nSince its issuance, PEPL has worked toward completing the requirements of the Consent\nAgreement and Order. In a letter dated January 15, 2020, PEPL submitted its final quarterly\nreport, as required by the Consent Agreement and Order, and requested closure of the case.\nPHMSA OPS Central Region has reviewed PEPL’s request and confirm","truncated":true,"body_characters":107069}