# PANHANDLE EASTERN PIPELINE CO — Safety Order

- **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:** Not available
- **summary:** CLOSED safety order.
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- **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.

Official case documents:

320141008S_Closure Letter_02212020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Closure%20Letter_02212020.pdf

320141008S_Closure Letter_02212020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Closure%20Letter_02212020_text.pdf

320141008S_Consent Agreement_04012015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Agreement_04012015.pdf

320141008S_Consent Agreement_04012015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Agreement_04012015_text.pdf

320141008S_Consent Order_04162015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Order_04162015.pdf

320141008S_Consent Order_04162015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Consent%20Order_04162015_text.pdf

320141008S_Notice of Proposed Safety Order_12242014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320141008S/320141008S_Notice%20of%20Proposed%20Safety%20Order_12242014.pdf

320141008S_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

320141008S_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

320141008S_Consent Agreement_04012015_text.pdf

U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
)
In the Matter of )
)
Panhandle Eastern Pipe Line Company, LP, )
a subsidiary of Energy Transfer Partners, LP, )
)
Respondent )
)
) CPF No. 3-2014-1008S
CONSENT AGREEMENT
On December 24, 2014, the Regional Director for the Central Region (the Region or Region 3)
of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline
Safety (OPS or the Agency), issued a Notice of Proposed Safety Order (Notice) to Panhandle
Eastern Pipe Line Company, LP. (PEPL or Respondent), a subsidiary of Energy Transfer
Partners, L.P. (ETP). The Notice alleged that conditions exist on PEPL’s pipeline system that
may pose a pipeline integrity risk to public safety, property, or the environment. The Notice also
proposed that PEPL take certain corrective measures to remedy the alleged conditions and ensure
that the public, property, and the environment are protected from the potential risk.
PEPL responded to the Notice by timely submitting an “Invocation of Information Consultation
and Request for Hearing,” “Statement of Issues,” and “Request for Hearing” dated January 23,
2015 (Request for Hearing). An informal consultation was held on March 18, 2015.
During the informal consultation, the PHMSA and PEPL agreed that settlement of this
proceeding will avoid further administrative proceedings or litigation of this Notice and that
entry into this Consent Agreement is the most appropriate means of resolving issues raised in the
Notice and in the public interest. Therefore, pursuant to 49 C.F.R. Part 190, without adjudication
of any issue of fact or law, and upon consent and agreement of Respondent and the PHMSA (the
Parties), the Parties agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of PEPL, Respondent and its
pipeline system are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. §
60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of
this Consent Agreement, Respondent acknowledges that it received proper notice of the
PHMSA's action in this proceeding and that the Notice states claims upon which relief may be
granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders issued thereunder.



2. Respondent agrees, for purposes of this Consent Agreement, to address the
integrity risks identified in the Notice by completing the actions specified in Section II of this
agreement (Corrective Measures) and to abide by the terms of this Consent Agreement. These
actions, including any work plans and schedules, shall automatically be incorporated into this
Consent Agreement. This Consent Agreement does not constitute a finding of violation of any
Federal law or regulation and may not be used in any civil or administrative proceeding of any
kind as evidence or proof of any fact, fault or liability, or as evidence of the violation of any law,
rule, regulation or requirement, except in a proceeding to enforce the provisions of this Consent
Agreement.
3. After Respondent returns this signed agreement, the PHMSA's representative will
present it to the Associate Administrator for Pipeline Safety recommending that the Associate
Administrator adopt the terms of this agreement by issuing an administrative order (Consent
Order) incorporating the terms of this Consent Agreement. The terms of this agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of the agreement.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Consent Agreement,
including all rights to administrative or judicial hearings or appeals. Upon issuance of a Consent
Order for this matter, Respondent’s Request for Hearing will be deemed withdrawn.
5. This Consent Agreement shall apply to and be binding upon the PHMSA, and
upon Respondent, its officers, directors, and employees, and its successors, assigns, or other
entities or persons otherwise bound by law. Respondent agrees to provide a copy of this Consent
Agreement and any incorporated work plans and schedules to all of Respondent's officers,
employees, and agents whose duties might reasonably include compliance with this Consent
Agreement.
6. For all transfers of ownership or operating responsibility of Respondent’s PEPL
pipeline, Respondent shall provide a copy of this Consent Agreement to the prospective
transferee at least 30 days prior to such transfer and simultaneously provide written notice of the
prospective transfer to the PHMSA Region Director (Director) who issued the Notice.
7. This Consent Agreement constitutes the final, complete and exclusive agreement
and understanding between the Parties with respect to the settlement embodied in this Consent
Agreement, and resolves any claims that have been or could have been alleged regarding the
May 5, 2009 Line 200 incident near Rockville, Indiana (including PHMSA CPF 3-2009-1009H),
items found during the Kansas and Missouri inspection conducted from June 18, 2012 to July
2012 involving 49 CFR Part 192, Subpart I – Requirements for Corrosion Control, the November
28, 2013 Line 400 incident near Houstonia, Missouri and the October 13, 2014 Line 100 incident
near Centerview, Missouri. The Parties acknowledge that there are no representations,
agreements or understandings relating to the settlement other than those expressly contained in
this Consent Agreement, except that the terms of this Consent Agreement may be construed by
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reference to the Notice. CPF 3-2009-1009H will be closed once PEPL submits its Final Report to
the Director.
8. Nothing in this Consent Agreement affects or relieves Respondent of its
responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49
U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this
Consent Agreement alters the PHMSA's right of access, entry, inspection, and information
gathering or the PHMSA's authority to bring enforcement actions against Respondent pursuant to
the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other
provision of Federal or State law.
9. This Consent Agreement does not waive or modify any Federal, State, or local
laws or regulations that are applicable to Respondent's pipeline systems. This Consent
Agreement is not a permit, or a modification of any permit, under any Federal, State, or local
laws or regulations. Respondent remains responsible for achieving and maintaining compliance
with all applicable Federal, State, and local laws, regulations and permits.
10. This Consent Agreement does not create rights in, or grant any cause of action to,
any third party not party to this Consent Agreement. The U.S. Department of Transportation is
not liable for any injuries or damages to persons or property arising from acts or omissions of
Respondent or its officers, employees, or agents carrying out the work required by this Consent
Agreement. Respondent agrees to hold harmless the U.S. Department of Transportation, its
officers, employees, agents, and representatives from any and all causes of action arising from
any acts or omissions of Respondent or its contractors in carrying out any work required by this
Consent Agreement.
II. Corrective Measures
11. Measures set forth below.
Upon issuance of the Consent Order, Respondent agrees to perform the Corrective
12. complete the following:
Regarding the 100 Line failure occurring on October 13, 2014, PEPL shall
(A) (B) Within 90 days of the Effective Date of this Order, PEPL shall complete a
root cause failure analysis (RCFA) for the 100 Line failure occurring on
October 13, 2014, and submit a final report for this RCFA to the Director.
The RCFA shall include the results of the mechanical coupling testing
being conducted at Stress Engineering and prior coupling failures.
Recommended actions to address the contributing factors shall be included
in the report as long as it is not inconsistent with 49 CFR Part 192 or
industry best practices and discussed with the Director to develop an
appropriate implementation schedule.
Within 45 days of the Effective Date of this Order, complete mechanical
and metallurgical testing and failure analysis of the failed pipe, including
an analysis of soil samples and any foreign materials. Ensure that the
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(C) (D) testing laboratory provides any report, whether draft or final, in its entirety
to the Director at the same time it is presented to PEPL.
The pipeline segment from mainline valve (MLV) 105 to MLV 106 gate is
currently limited to operation at a pressure not to exceed 75 psig. In the
event that PEPL requires operation of that segment above 75 psig, PEPL
will provide to the PHMSA a plan for the Director’s approval prior to
resuming operations at higher pressures. As appropriate based on the final
identified RCFA contributing factors, the plan shall include the following:
i. Instrumented leak survey between MLVs 105 and 106 to include
associated farm taps or temporary school line replacements. Any
leaks found must be remediated before continuing on with the
restart plan.
ii. Specify a daylight pressure increase and include advance
notification with the local emergency response officials.
iii. Reinforcing or removing 100 Line couplings located on the
property associated with the failure or the adjacent road crossing
and exhibiting characteristics or under influences identified by the
RCFA.
Within 1 year after the Effective Date of this Order, PEPL will develop a
Coupling Remedial Work Plan (Coupling RWP) which is intended to
address integrity issues on pipeline segments exhibiting the similar
properties, characteristics or outside force influences as those determined
to be causal to the 100 line failure or other coupling failures. The
Coupling RWP shall be submitted to the Director for approval. Elements
of the Coupling RWP will include:
i. Reinforce or remove 200 Line couplings on the property or the
adjacent road crossing associated with the failure that exhibit
characteristics or are under influences identified by the RCFA.
Completion dates for this activity will be proposed in the Coupling
RWP and approved by the PHMSA.
ii. Reinforce or remove couplings on the 100 and 200 Lines located in
an HCA or within the calculated potential impact radius (PIR) that
contains one or more structures intended for human occupancy that
exhibit characteristics or are under influences identified by the
RCFA. Where warranted, the reinforcement or removal of the
couplings located in these areas shall be completed within no more
than 5 years from the Effective Date of this Order.
iii. Conduct aerial instrumented (LIDAR) survey annually on lines
100 and 200 until items i. and ii. are complete and provide a
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priority based response/repair schedule for all leaks utilizing the
following categories:
a. Leaks identified as an imminent public safety threat as
defined through joint agreement by the PHMSA and PEPL;
b. Leak indications located in an high consequence area
(HCA) or Class 3 area;
c. Leak indications located within a PIR that contains a
structure intended for human occupancy or a location
intended of an outdoor area of assembly;
d. Leak indications located within the right-or-way of an
active street, highway, road or railroad;
e. Leak indications located in an area where the pipeline
operates above 72% SMYS.
iv. Utilize information gained from the above activities to further
enhance or refine criteria or characteristics that lead to a response.
Data to be collected and integrated will include ILI data and as-
found condition of and environmental conditions (depth of cover,
soil stability, compaction, buoyancy factors, coupling engagement,
leakage, etc.) associated with couplings targeted for reinforcement
and couplings discovered to be leaking through surveys or patrols.
v. Consideration of operating pressure reductions if practical to
mitigate the occurrence or consequences of coupling failures for
the 100 and 200 lines.
13. Regarding the Houstonia 400 Line failure occurring on November 28, 2013,
PEPL shall complete the following:
(A) Within 45 days after the Effective Date of this Order, PEPL shall work
with the PHMSA to finalize the Houstonia 400 line RCFA reports
(internal and Blacksmith Group) and have been previously submitted to
the PHMSA Central Region. Once finalized, PEPL shall provide for the
Director’s review and approval an implementation plan and schedule
addressing each finding and recommendation identified in the RCFA
reports. Any finding or recommendation that would exceed one year for
implementation will be identified and reviewed for concurrence by the
Director. Integrate the findings of the RCFA into other data integration
efforts and work plan efforts.
(B) Within 90 days after the Effective Date of this Order, PEPL will develop a
Corrosion Remedial Work Plan (Corrosion RWP) which is intended to
address integrity issues on pipeline segments exhibiting similar properties,
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characteristics or influences as those determined to be causal to the
Houstonia 400 line failure. The Corrosion RWP shall be submitted to the
Director for approval. Elements of the Corrosion RWP will include:
i. Integration of causal factors identified in the RCFA and applied to
similar pipeline segments;
ii. Inline inspection (ILI) tool re-grade to improve accuracy as
necessary;
iii. Engineering assessment of low potential areas coincident with
identified external corrosion metal loss;
iv. Engineering assessment of similar external corrosion morphology;
v. Identify required anomaly response, respond to and repair/replace
as necessary;
vi. Identify, prioritize and mitigate cathodic protection (CP) system
deficiencies;
vii. Re-run ILI technology if necessary and respond accordingly;
(C) Within 1 year of the Effective Date of this Order, conduct an aerial
instrumented (LIDAR) survey on lines 300 and 400 and provide a priority
based response/repair schedule for all leaks utilizing the following
categories:
i. Leaks identified as an imminent public safety threat as defined
through joint agreement by the PHMSA and PEPL;
ii. Leak indications located in an high consequence area (HCA) or
Class 3 area;
iii. Leak indications located within a PIR that contains a structure
intended for human occupancy or a location intended of an outdoor
area of assembly;
iv. Leak indications located within the right-or-way of an active street,
highway, road or railroad;
v. Leak indications located in an area where the pipeline operates
above 72% SMYS.
14. Develop a Process Improvement Remedial Work Plan (Process Improvement
RWP) to systemically improve the integrity management and corrosion control programs for the
PEPL system. Within 1 year of the Effective Date of this Order, PEPL must submit, for review
and approval to the PHMSA, a comprehensive written Process Improvement RWP, including
6



timelines for specific actions of development, process review and implementation. Respondent
must address deficiencies, threats or risks, and necessary improvements identified in the RCFAs
and/or as required under Part 192. As necessary, this may include process improvements,
integrity assessments, repair and/or replacement of pipeline assets and other measures. The plan
will be designed to improve four strategic areas of the PEPL system performance and must be
sufficiently detailed with specific tasks, milestones, completion dates and reporting summaries.
The Process Improvement RWP shall be submitted to the Director for approval:
(A) Consultation with Independent Third-Party
i. ii. Respondent will engage a third party consultant (Consultant)
acceptable to the PHMSA. PEPL will submit vendor names/
credentials for consideration by the PHMSA and the PHMSA will
approve the list from which Respondent will select one or more
consultants to perform this service. As part of its review, PHMSA
may request additional information and/or assurances to support
the independent nature of the Consultant(s)’s work product. The
selected Consultant(s) will be utilized to supplement PEPL’s in-
house functional/technical personnel in a review of PEPL current
and proposed processes/procedures/protocols to identify
improvements where applicable in each of the topical areas of the
Process Improvement RWP. To this end, specific expertise may be
brought to bear within these topical areas and will require an
individual or individuals with appropriate expertise to provide the
consultancy needed.
In general, the scope of the engagement will involve the
Consultant(s) providing these services/input into the development
process for the Process Improvement RWP including:
a. Review relevant information/procedures/programs related to
the topical area including metallurgical and RCFA reports for
historical and relevant incidents (external corrosion and
mechanical couplings), integrity management program
documents and procedures, safety program elements and
management systems.
b. Conduct interviews with in-house functional/technical
personnel as needed to gain understanding of current state,
improved future state and proposed path to close existing gaps.
c. Review current actions and procedural changes being
contemplated or initiated and compare to the knowledge base
of the Consultant and recommend incremental improvements
as warranted.
7



(B) i. d. Prepare status reports relative to findings, conclusions,
recommendations and incorporation of agreed upon
improvements into the Process Improvement RWP and
resultant deliverables. The Consultant must provide all reports
to both PEPL and the PHMSA concurrently.
e. PEPL will provide the PHMSA with written proposed
resolutions for all of the Consultant’s recommendations.
iii. The Consultant(s) will report directly to an Energy Transfer/PEPL
leadership team (Vice-President or above). The Consultant’s
engagement with PEPL will conclude upon approval of the Process
Improvement RWP by the PHMSA.
The four strategic areas with specific targeted improvement opportunities
are detailed as follows:
Improve Corrosion Control and Prevention Program
a. Implement the polarized potential (instant off) criteria on the
PEPL system and address identified low potential areas in
accordance with PEPL standard operating procedures (D.40);
b. Modify the procedures regarding CP ground bed analysis and
replacement to include provisions for testing the adequacy of
negative connections in order to provide and monitor levels of
CP to all parallel pipelines;
c. Improve the methodology, tracking and completion of
prioritized activities related to the remediation of CP
deficiencies;
d. Develop a management system to track and report on
deficiencies discovered and action items completed;
e. Modify procedures to require mitigation of CP deficiencies in a
specified time frame that is within the regulatory framework of
the inspection frequency;
f. Add additional CP current density to account for/mitigate the
potential Microbiologically Induced Corrosion (MIC) effect on
corrosion growth rates where applicable;
g. Provide training to field technicians on proper analysis of
current distribution, rectifier placement, and negative cable
connections;
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ii. h. Require corrosion technicians and corrosion specialists to
complete comprehensive CP data analysis;
i. Evaluate the current status of the Company’s corrosion control
procedures, especially those relating to close interval survey
(CIS) execution and response, data integration of ILI and CIS
and training to identify if any deficiencies need to be
addressed;
j. Review and revision as appropriate, standard operating
procedures (SOPs) guiding the pipe inspection process to look
and/or test for environmental factors including MIC and
consideration of it as a contributor to corrosion growth rates;
k. Evaluate the corrosion growth rate process to determine what if
any enhancements can be made;
l. Review and improve management practices related to the
setting of priorities for corrosion technicians and the
management and resource support of their workload;
m. Review and improve processes and criteria associated with the
testing of electrical isolation for cased crossings;
n. Review and improve processes to identify electrical high
resistance couplings and remediate (bond across coupling) such
couplings to the extent remediation is required to restore
adequate cathodic protection to the pipeline;
o. Review and identify that processes and procedures clearly
define the term “critical bond.” Provide monitoring criteria for
all bonds;
p. Ensure processes and procedures associated with CIS identify
maximum potentials and ensure that adequate follow-up
associated with potential interference is implemented.
Improve Integrity Management Processes for External Corrosion
and Mechanical Coupling Threats
a. Enhance the ILI data validation process with the appropriate
use and analysis of pseudo digs and excavation of anomalies
and incorporate CP performance data and ILI run to run
calculations in the validation process. A process to define
appropriate pseudo dig use will be developed;
9



iii. b. Enhance procedures to verify ILI data is aligned properly and
calculations are accurate;
c. Enhance the process and procedures for data integration;
overlay CIS and ILI data with GIS and topographical mapping
features;
d. Modify and implement the ILI tool specification to require ILI
service providers to report the amount of manual grading, the
associated parameters, and any changes as a result of the
manual analysis for each ILI run;
e. Expand the annual ILI pre-bid meeting beyond the current
specification review of changes to include verification of key
integrity concepts such as interaction and data validation and
ILI vendor analyst staffing;
f. Develop and employ a quality control (QC) process to further
improve the accuracy of field measurements of corrosion
anomalies. Utilize a benchmark measurement system with a
high degree of accuracy to which field measurements can be
compared;
g. Develop and employ an ILI specification, depth of cover, soil
stability and data integration process to enable ongoing
integrity assessments for mechanical couplings;
h. Develop a grading and prioritization scheme to assess and
appropriately schedule responses to mechanical coupling
threats outside of HCAs and absent structures and outside areas
within the PIR of a line containing a mechanical coupling;
i. Review the internal processes for pressure reductions and/or
submission of a Safety Related Condition Report.
Enhanced Safety and Integrity Management Culture through
Reporting, Learning and Training
a. Expand/enhance the existing ETP Safety Culture program and
processes with emphasis on pipeline integrity and corrosion
control. Apply the existing processes within the Impact Safety
Management System to identify, report and manage unwanted
events. Utilize the existing system that encourages continuous
improvement and a learning culture. Develop specific
elements and process requirements related to pipeline integrity
including:
10



1. Reporting criteria for additional unwanted events and
issues;
2. Action item and learning process workflow;
3. Management of change process workflow;
4. Development of Key Performance Indicators (KPIs)
indicative of corrosion control and pipeline integrity
process performance.
b. In consideration of process and procedure improvements
resulting from the recent ETP incident history and RCFAs,
proactively manage the subject improvements and assure a
formal MOC process occurs. Develop and provide required
training and communication programs to assure people, process
and technology elements are fully implemented across the
enterprise and changes are institutionalized accordingly
including:
1. Update of SOPs and integrity management program
documents;
2. Training field technicians and subject matter experts
(SMEs) in Corrosion Control and Integrity Management
procedural/program changes;
3. Provide training and communication to technical support
and management personnel related to changes in work
management and management of KPIs;
4. Provide ongoing attention to outside influences including
organizational changes, mergers, acquisitions, resource
changes, retirements, new hires, etc. and assure that such
changes are managed such that safety performance is not
negatively impacted.
c. Provide quarterly process improvement updates to the PHMSA
including status of related changes and KPIs.
iv. Management System/Data Integration
PEPL shall prepare a strategic data system improvement plan that
will allow the effective collection, review, integration and analysis
of integrity related data. The plan will define how PEPL will
perform timely analysis of integrity related data, recognize
integrity threats, identify effective mitigative and preventative
measures, and support effective decision making. This data system
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strategic plan shall be completed within 1 year from the Effective
Date of this Order. This shall be submitted to the Central Region
Director for review and comment. An implementation schedule
shall be submitted to the Central Region Director for approval.
15. Contact the PHMSA for those events not otherwise a reportable incident, and to
the extent practicable, regarding identified belowground leak indications in the pipe body, pipe
seam or girth weld other than minor coupling leak indications at the e-mail address provided.
16. Once approved by the Director, each RWP will become incorporated into the
Order. These plans may be revised as necessary based on new information or improvement
opportunities identified in the course of completing the work and in such case shall be submitted
to the Director for prior approval. The Director may approve plan elements incrementally.
17. Implement the RWP elements incrementally as approved by the Director,
including any revisions to the plan. The results of all actions taken in accordance with the
approved plan must be available for review by the PHMSA or the PHMSA representative.
18. Consent Order Documentation Report (CODR). Respondent must create and
submit on a quarterly basis, a CODR. The intent is for the CODRs to summarize all activities
and documentation associated with this Order and to identify any activities or documentation for
the period reflected in previous report activities so the status of any item in the Order is reflected
in each report. When the Respondent has concluded all the required items in this Order, it will
submit a final CODR to the Director. This will allow the Director to complete a thorough review
of all actions taken by the Respondent with regards to this Order prior to approving the closure
of this Order.
19. It is requested that PEPL maintain documentation of the costs associated with
implementation of the Order, and include in each report submitted pursuant to Item 19, the to-
date total costs associated with: (1) preparation and revision of procedures, studies and analyses;
(2) physical changes to pipeline infrastructure, including repairs, replacements and other
modifications; and (3) environmental remediation, if applicable.
20. The Director may grant an extension of time for compliance with any of the terms
of the Order upon a written request, timely submitted, demonstrating good cause for an
extension.
21. For all submissions based upon this Order that requires the approval of the
Director, the Director may (a) approve the submission in whole or in part; (b) impose specific
conditions; (c) modify the submission to cure any deficiencies; (d) reject the submission in whole
or in part; or (e) any combination of the above.
22. PEPL may appeal any decision of the Director to the Associate Administrator for
Pipeline Safety. Decisions of the Associate Administrator are final.
III. Review and Approval Process
23. With respect to any submission under Section II of this Consent Agreement that
requires the approval of the Region Director, the Director may: (a) approve, in whole or in part,
12



the submission, (b) approve the submission on specified conditions, (c) disapprove, in whole or
in part, the submission, or (d) any combination of the foregoing. If the Region Director approves,
approves in part, or approves with conditions, Respondent will take all action as approved by the
Director, subject to Respondent's right to invoke the dispute resolution procedures in Section IV
with respect to any conditions the Director identifies. If the Director disapproves all or any
portion of the submission, the Director will provide Respondent with a written notice of the
deficiencies. Respondent will correct all deficiencies within the time specified by the Director
and resubmit it for approval.
IV. Dispute Resolution
24. The Region Director and Respondent will informally attempt to resolve any
disputes arising under this Consent Agreement. If Respondent and the Region Director are
unable to informally resolve the dispute within 15 days, Respondent may request in writing,
within 10 days, a written determination resolving the dispute from the Associate Administrator
for Pipeline Safety providing all information that Respondent believes is relevant to the dispute.
If the request is submitted as provided herein, the Associate Administrator will issue a final
determination in writing. The existence of a dispute and the PHMSA's consideration of matters
placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any
work to be performed under this agreement during the pendency of the dispute resolution process
except as agreed by the Region Director or the Associate Administrator in writing.
V. Enforcement
25. This Consent Agreement, as adopted by the Consent Order, is subject to all
enforcement authorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R.
Part 190. All work plans and associated schedules set forth or referenced in Section II will be
automatically incorporated into this Consent Agreement and are enforceable in the same manner.
VI. Recordkeeping and Information Disclosure
26. Unless otherwise required in this Consent Agreement, Respondent agrees to
maintain records demonstrating compliance with all requirements of this Consent Agreement for
a period of at least five years following completion of all work to be performed. For any reports,
plans, or other deliverables required to be submitted to the PHMSA pursuant to this Consent
Agreement, Respondent may assert a claim of business confidentiality or other protections
applicable to the release of information by the PHMSA, covering part or all of the information
required to be submitted to the PHMSA pursuant to this agreement in accordance with 49 C.F.R.
Part 7. Respondent must mark the claim of confidentiality in writing on each page, and include a
statement specifying the grounds for each claim of confidentially. The PHMSA determines
release of any information submitted pursuant to this Consent Agreement in accordance with 49
C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and/or the PHMSA
policies, and other applicable regulations and Executive Orders.
13



VII. Effective Date
27. The “Effective Date” as used herein is the date on which the Order is issued by
the Associate Administrator incorporating the terms of this Agreement. Unless specified to the
contrary, all deadlines for actions required by this Consent Agreement run from the Effective
Date of this Order.
VIII. Modification
28. The terms of this Consent Agreement may be modified by mutual agreement of
the Parties. Such modifications must be in writing and signed by both parties.
IX. Termination
29. This Consent Agreement terminates upon completion of all terms set forth in
Section II (Corrective Measures) as determined by the Director, Central Region. Respondent
may request written confirmation from the PHMSA when this Consent Agreement is terminated.
To the extent ongoing monitoring is required, the PHMSA may terminate this Consent
Agreement with respect to all other requirements with the exception of such monitoring. Nothing
in this Consent Agreement prevents Respondent from completing any of the obligations earlier
than the deadlines provided for in this Agreement.
X. Ratification
30. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Consent Agreement and to execute and legally bind
such party to this document.
31. The Parties hereby agree to all conditions and terms of this Consent Agreement:
For Respondent:
______________________________
Ryan K. Coffey
Executive Vice President Operations
Panhandle Eastern Pipe Line Company, LP
______________________________
Date
14



For the PHMSA:
_____________________________
Allan Beshore
Director, Office of Pipeline Safety
PHMSA Central Region
U.S. Department of Transportation
_____________________________
Date
15

320141008S_Consent Order_04162015_text.pdf

April 16, 2015
Mr. Kelcy L. Warren
Chief Executive Officer
Energy Transfer Partners, LP
3738 Oak Lawn Avenue
Dallas, Texas 75219
Re: CPF No. 3-2014-1008S
Dear Mr. Warren:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement
between Pipeline and Hazardous Materials Safety Administration and your subsidiary,
Panhandle Eastern Pipeline Company, LP, that was executed on April 1, 2015. Service of the
Consent Order and Consent Agreement by certified mail is deemed effective upon the date of
mailing, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Allan Beshore, Director, Central Region, PHMSA
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
______________________________________________
In the Matter of )
)
)
Panhandle Eastern Pipe Line Company, LP, a subsidiary of Energy Transfer Partners, LP, )
)
Respondent. )
______________________________________________)
) CPF No. 3-2014-1008S
CONSENT ORDER
By letter dated December 24, 2014, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to
Panhandle Eastern Pipe Line Company, LP (PEPL or Respondent), a subsidiary of Energy
Transfer Partners, LP (ETP) in this case.
In accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions existed on PEPL’s
pipeline system that might pose a pipeline integrity risk to public safety, property, or the
environment. The Notice also proposed that PEPL take certain corrective measures to remedy
the alleged conditions and ensure that the public, property, and the environment were protected
from the potential risk.
In response to the Notice, Respondent requested an informal consultation, whereupon the parties
engaged in good-faith settlement discussions that resulted in the Consent Agreement attached to
this Order and that settles all of the allegations in the Notice.
Accordingly, the foregoing Consent Agreement is hereby approved and incorporated by
reference into this Order. The Respondent is hereby ordered to comply with the terms of the
Consent Agreement, effective immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case
for judicial enforcement.



CPF No. 3-2014-1008S
Page 2
The terms and conditions of this Consent Order are effective upon service in accordance with 49
C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

320141008S_Closure Letter_02212020_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
February 21, 2020
Mr. Kelcy L. Warren
Chief Executive Officer
Energy Transfer Partners, L.P.
3738 Oak Lawn Avenue
Dallas, Texas 75219
CPF 3-2014-1008S
Dear Mr. Warren:
On December 24, 2014, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, issued to your subsidiary, Panhandle Eastern Pipe
Line Company L.P. (PEPL), a Notice of Proposed Safety Order (Notice) in the above-
referenced case. The Notice resulted from an investigation of the safety of PEPL’s
pipeline system, including incidents that occurred on November 28, 2013, on PEPL's 400
line approximately 4.7 miles downstream of the Houstonia compressor station near
Hughesville, Missouri and the October 13, 2014 failure on the 100 line near Centerview,
Missouri. Both incidents resulted in significant fire and emergency response requirements.
As a result of the investigation, the Notice alleged apparent conditions existed on the
PEPL’s pipeline system that posed a pipeline integrity risk to the public safety, property or
the environment.
In response to the Notice, PEPL requested an informal consultation, whereupon the
parties engaged in good faith discussions that resulted in a Consent Agreement that was
signed by PEPL and OPS Director, Central Region, on April 1, 2015. On April 16,
2015, a Consent Order incorporating the terms of the Consent Agreement was issued
resolving the Notice.
Since its issuance, PEPL has worked toward completing the requirements of the Consent
Agreement and Order. In a letter dated January 15, 2020, PEPL submitted its final quarterly
report, as required by the Consent Agreement and Order, and requested closure of the case.
PHMSA OPS Central Region has reviewed PEPL’s request and confirm
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