# WTG-HUGOTON, LP — Warning Letter

- **operation:** document
- **citation:** CPF 320151005W
- **title:** WTG-HUGOTON, LP — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2015-05-20
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 192.463(a), 192.706, 192.736(c), 192.805(b).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320151005w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320151005W
**body:**

Warning Letter involving WTG-HUGOTON, LP. PHMSA's enforcement data identifies the cited regulations as 192.463(a),  192.706,  192.736(c),  192.805(b). The case was opened on 2015-05-20 and is reported as closed as of 2015-05-20. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320151005W_Warning_05202015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320151005W/320151005W_Warning_05202015.pdf

320151005W_Warning_05202015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320151005W/320151005W_Warning_05202015_text.pdf

320151005W_Warning_05202015_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
May 20, 2015
Mr. J. L. Davis, President
WTG Hugoton, LP
211 North Colorado
Midland, Texas 79701
CPF 3-2015-1005W
Dear Mr. Davis:
On July 22-24 and 29-30, 2014, a representative of the Pipeline and Hazardous Materials
Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
inspected your records and facilities in Hugoton, Kansas.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected
and the probable violations are:
1. §192.736 Compressor stations: Gas detection.
(c) Each gas detection and alarm system required by this section must be
maintained to function properly. The maintenance must include performance
tests.
The gas detection systems in the Hugoton Compressor station were not tested to
demonstrate performance of the alarm system. The maintenance tests included only an
internally automatic electronic self-check diagnostic. Although this showed the devices
were functioning properly, the internal test is insufficient to demonstrate detection of gas to
produce the alarm.



2. §192.706 Transmission lines: Leakage surveys.
Leakage surveys of a transmission line must be conducted at intervals not
exceeding 15 months, but at least once each calendar year. However, in the
case of a transmission line which transports gas in conformity with §192.625
without an odor or odorant, leakage surveys using leak detector equipment
must be conducted-
(a) In Class 3 locations, at intervals not exceeding 7 1/2 months, but at least
twice each calendar year; and
(b) In Class 4 locations, at intervals not exceeding 4 1/2 months, but at least
four times each calendar year.
WTG Hugoton did not conduct leakage surveys of its Class 3 transmission lines twice per
year. In 2012 the Class 2 pipe segment south of the town of Sublette, Kansas, running
parallel to Edelle Avenue was changed from Class 2 to Class 3 location. At the time of the
inspection the leakage survey frequency had not yet been increased from once annually to
twice annually.
3. §192.463 External corrosion control: Cathodic protection.
(a) Each cathodic protection system required by this subpart must provide a
level of cathodic protection that complies with one or more of the applicable
criteria contained in Appendix D of this part. If none of these criteria is
applicable, the cathodic protection system must provide a level of cathodic
protection at least equal to that provided by compliance with one or more of
these criteria.
WTG Hugoton did not use cathodic protection criteria that complied with Appendix D of
Part 192. The voltage IR drop between the soil surface and the pipeline were not
considered correctly. Annual monitoring of cathodic protection showed 2014 voltage
levels on the Holcomb to Hugoton pipeline that were below (less negative) -850 millivolts
with protective current applied; however, WTG Hugoton incorrectly used the 100 mV
minimum polarization shift alternative criteria. WTG Hugoton used the difference between
the energized cathodic protection (CP on) and de-energized (CP “instant off”) as a basis for
determining the 100 mV alternate criteria. Appendix D section III requires the polarization
shift to be determined by measuring polarization decay only after the “instant off” shift is
accounted for.
4. §192.805 Qualification program.
Each operator shall have and follow a written qualification program. The
program shall include provisions to:
(b) Ensure through evaluation that individuals performing covered tasks are
qualified;
2



WTG Hugoton’s evaluation of personnel task performance was inadequate to ensure
qualification for two tasks. PHMSA observed that tasks for Cathodic Protection (CP)
Monitoring and for Maintenance of Pressure Relief Valve were performed inadequately.
The CP Monitoring task evaluation was insufficient because records showed that CP
voltage minimum criteria had been applied incorrectly, and CP was inadequate as cited in
Item 3. The relief valve maintenance task was observed to be performed incorrectly when
the task was requested by PHMSA to be demonstrated during the inspection. Personnel
were unable to complete the task because they were unfamiliar with the configuration of the
relief valves at the Hugoton Compressor station.
Under 49 United States Code, §60122, you are subject to a civil penalty not to exceed
$200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a
related series of violations. For violations occurring prior to January 4, 2012, the maximum
penalty may not exceed $100,000 per violation per day, with a maximum penalty not to
exceed $1,000,000 for a related series of violations. We have reviewed the circumstances
and supporting documents involved in this case, and have decided not to conduct additional
enforcement action or penalty assessment proceedings at this time. We advise you to
correct the item(s) identified in this letter. Failure to do so will result in WTG Hugoton, LP
being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please
refer to CPF 3-2015-1005W. Be advised that all material you submit in response to this
enforcement action is subject to being made publicly available. If you believe that any
portion of your responsive material qualifies for confidential treatment under 5 U.S.C.
552(b), along with the complete original document you must provide a second copy of the
document with the portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for confidential treatment
under 5 U.S.C. 552(b).
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
cc: Mr. Richard Hatchett, Vice President
WTG Hugoton, LP
211 North Colorado
Midland, Texas 79701
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