{"operation":"document","citation":"CPF 320165001","title":"TALLGRASS PONY EXPRESS PIPELINE, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-03-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.406.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320165001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320165001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320165001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320165001","body":"Notice of Probable Violation involving TALLGRASS PONY EXPRESS PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulation as 195.406. The case was opened on 2016-03-16 and is reported as closed as of 2016-12-16. Proposed civil penalty: $14,700. Assessed civil penalty: $14,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320165001_Final Order_12012016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320165001/320165001_Final%20Order_12012016.pdf\n\n320165001_Final Order_12012016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320165001/320165001_Final%20Order_12012016_text.pdf\n\n320165001_NOPV PCP PCO_03162016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320165001/320165001_NOPV%20PCP%20PCO_03162016.pdf\n\n320165001_NOPV PCP PCO_03162016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320165001/320165001_NOPV%20PCP%20PCO_03162016_text.pdf\n\n320165001_Operator Response to Notice_04192016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320165001/320165001_Operator%20Response%20to%20Notice_04192016.pdf\n\n320165001_NOPV PCP PCO_03162016_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 16, 2016\nMr. Mick Rafter\nVice-President – Operations and Environmental, Health, and Safety\nTallgrass Pony Express Pipeline, LLC\n370 Van Gordon Street\nLakewood, Colorado 80228\nCPF 3-2016-5001\nDear Mr. Rafter:\nOn February 13, 2015, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), Central Region, pursuant to Chapter 601 of 49\nUnited States Code, sent a Request for Specific Information for two over-pressure incidents\nthat occurred on October 7, 2014, between Jennings Station and Natoma Station in Kansas and\nagain on October 28, 2014, at Cushing Station in Cushing, Oklahoma.\nAs a result of the review of the information, it appears that you have committed probable\nviolations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The\nitems inspected and the probable violations are:\n1. §195.406 Maximum operating pressure.\n(b) No operator may permit the pressure in a pipeline during surges or other\nvariations from normal operations to exceed 110 percent of the operating\npressure limit established under paragraph (a) of this section. Each operator\nmust provide adequate controls and protective equipment to control the pressure\nwithin this limit.\n\n\n\nTallgrass did not provide adequate controls and protective equipment to limit the pressure\nto 110% on two occasions during the operation of the Pony Express pipeline in October of\n2014.\na) On October 7, 2014, during the line fill operations of the Pony Express Pipeline,\nTallgrass personnel did not open a valve at Cushing to relieve the nitrogen that was\nbeing used as backpressure to keep the line from going slack. As a result, the pressure\nof the line began to build up to over 110% of the maximum operating pressure (MOP)\nat several locations between Jennings and Natoma Stations in Kansas. Tallgrass\nrecorded the following pressures at the pressure transmitters located at BG-MOV-100\nupstream, BG-MOV-100 downstream, MLV 69-upstream, and MLV-71-downstream:\nTransmitter MOP Pressures Recorded Time Length\nBG-MOV-1000 upstream 956 psig 1053 – 1076 psig 11 minutes\nBG-MOV-1000 downstream 956 psig 1053 – 1072 psig 11 minutes\nMLV 69-upstream 956 psig 1054 – 1080 psig 20 minutes\nMLV 71-upstream 956 psig 1053 – 1061 psig 9 minutes\nMLV 71-downstream 956 psig 1055 – 1070 psig 9 minutes\nb) On October 28, 2014, a controller was checking the operation of main line valves at the\nCushing Station because he had noted that a couple of mainline valves on the northern\nend of the pipeline had not responded. As the valves opened, head pressure on the\nmainline caused the Cushing Station piping to reach over 110% of the 285 psig MOP.\nThe station outlet was shut-in at the time. Because the flow control valve did not react\nfast enough to limit the pressure and the set point of the rupture pin (285 psig) was too\nhigh in this scenario, the station piping was subjected to pressure of approximately 350\npsig for about 45 seconds.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a\nrelated series of violations. For violations occurring prior to January 4, 2012, the maximum\npenalty may not exceed $100,000 per violation per day, with a maximum penalty not to\nexceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the\ncircumstances and supporting documentation involved in the above probable violation and has\nrecommended that you be preliminarily assessed a civil penalty of $14,700.\n2\n\n\n\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Tallgrass Pony\nExpress Pipeline, LLC. Please refer to the Proposed Compliance Order, which is enclosed and\nmade a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the response\noptions. All material submitted in response to this enforcement action may be made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide\na second copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b). If you do not respond within 30 days of receipt\nof this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this\nNotice without further notice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 3-2016-5001 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n3\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Tallgrass Pony Express Pipeline, LLC a\nCompliance Order incorporating the following remedial requirements to ensure the\ncompliance of Tallgrass Pony Express Pipeline, LLC with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number 1 of the Notice pertaining to the overpressure\nincidents on the Pony Express pipeline between Jennings and Natoma Stations\nand at Cushing Station, Tallgrass will perform an evaluation of all overpressure\nset points at each station on the Pony Express Pipeline to ensure that the set\npoints will adequately protect the pipeline and station’s maximum operating\npressure and re-set as necessary. Additionally, Tallgrass will identify all\npersonnel involved in the incidents and retrain them on the procedures for line\nfill and start-up of all stations as well as review controller training and\noperating procedures to address any needed enhancements as a result of the two\nincidents.\nTallgrass must complete and submit records demonstrating the re-evaluation of\nall overpressure protection equipment and reset of set-points as necessary\nwithin 60 days of the date of the Final Order. Further, Tallgrass will submit\nrecords that demonstrate the identification and re-training of all personnel on\nthe line fill and start-up procedures of the stations and the review of the\ncontroller operating and training procedures within 30 days of the date of the\nFinal Order.\nIt is requested (not mandated) that Tallgrass maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Allan C. Beshore, Director, Central Region, OPS, Pipeline\nand Hazardous Materials Safety Administration. It is requested that these costs\nbe reported in two categories: 1) total cost associated with preparation/revision\nof plans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n4\n\n320165001_Final Order_12012016_text.pdf\n\nDecember 1, 2016\nMr. David G. Dehaemers, Jr.\nPresident & CEO\nTallgrass Energy Partners, LP\n370 Van Gordon Street\nLakewood, CO 80228\nRe: CPF No. 3-2016-5001\nDear Mr. Dehaemers:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a civil penalty of $14,700. It further finds that Tallgrass Energy Partners,\nLP has completed the actions specified in the Notice to comply with the pipeline safety\nregulations. When the civil penalty has been paid, this enforcement action will be closed.\nService of the Final Order by certified mail is deemed effective upon the date of mailing, or as\notherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Allan C. Beshore, 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 )\nTallgrass Pony Express Pipeline, LLC, )\na subsidiary of Tallgrass Energy )\nPartners, LP, ) CPF No. 3-2016-5001\n)\n)\n)\nRespondent. )\n___________________________________ )\nFINAL ORDER\nOn February 13, 2015, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), sent\nTallgrass Pony Express Pipeline, LLC, a subsidiary of Tallgrass Energy Partners, LP (Tallgrass\nor Respondent) a Request for Specific Information for two over-pressure incidents that occurred\non October 7, 2014, between Jennings Station and Natoma Station in Kansas and on October 28,\n2014, at Cushing Station in Cushing, Oklahoma. The Tallgrass systems consist of a crude oil\nline that operates approximately 700 miles of pipeline from Wyoming to Oklahoma.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated March 16, 2016, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that Tallgrass had violated 49 C.F.R. § 195.406, and proposed assessing a civil\npenalty of $14,700 for the alleged violation. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violation.\nTallgrass responded to the Notice by letter dated April 19, 2016 (Response). The company did\nnot contest the allegations of violation but provided information concerning the corrective\nactions it had taken and submitted copies of its revised procedures. Respondent did not request a\nhearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Tallgrass did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (Mar. 16, 2016) (on file with PHMSA), at 1.\n\n\n\nCPF No. 3-2016-5001\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.406, which states in\nrelevant part:\n§ 195.406 Maximum Operating Pressure.\n(a) . . . .\n(b) No operator may permit the pressure in a pipeline during surges or other\nvariations from normal operations to exceed 110 percent of the operating pressure\nlimit established under paragraph (a) of this section. Each operator must provide\nadequate controls and protective equipment to control the pressure within this\nlimit.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.406 by failing to provide adequate\ncontrols and protective equipment to ensure the pressure in its pipeline did not exceed 110\npercent of the permitted maximum operating pressure. Specifically, the Notice alleged Tallgrass\nfailed to provide adequate controls and protective equipment to limit the pressure to 110 percent\non two occasions during the operation of the Tallgrass pipeline in October of 2014. On October\n7, 2014, during the line fill operations of Tallgrass, Tallgrass personnel did not open a valve at\nthe Cushing Station to relieve the nitrogen that was being used as backpressure to keep the line\nfrom going slack.2 As a result, the pressure of the line began to build up to over 110 percent of\nthe maximum operating pressure at several locations between Jennings and Natoma Stations in\nKansas.3 On October 28, 2014, a controller was checking the operation of main line valves at the\nCushing Station because he had noted that a couple of mainline valves on the northern end of the\npipeline had not responded.4 As the valves opened, head pressure on the mainline caused the\nCushing Station piping to reach over 110 percent of the 285 psig maximum operating pressure.5\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.406 by failing to provide\nadequate controls and protective equipment to ensure the pressure in its pipeline did not exceed\n110 percent of the permitted maximum operating pressure.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\n2 Notice at 2.\n3 Id.\n4 Id.\n5 Id.\n\n\n\nCPF No. 3-2016-5001\nPage 3\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $14,700 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $14,700 for Respondent’s violation of 49 C.F.R.\n§ 195.406, for failing to provide adequate controls and protective equipment to ensure the\npressure did not exceed 110 percent of the permitted maximum operating pressure. Tallgrass did\nnot contest the allegation, but requested that the proposed penalty be reduced or eliminated based\non the immediate actions taken by the company and the substantial costs incurred as a result of\nthe over-pressure incidents.6\nI find that the penalty amount proposed in the notice is warranted considering the nature,\ncircumstances, and gravity of the violation and Respondent’s culpability for the violation.\nRespondent is correct that the pipeline was subject to over-pressurization exceeding the 100\npercent of the permitted maximum operating pressure for a short period of time, but this was\ntaken into consideration when the proposed penalty amount was determined and would have\nbeen higher had the period of over-pressurization been longer. Accordingly, having reviewed\nthe record and considered the assessment criteria, I assess Respondent a civil penalty of $14,700\nfor violation of 49 C.F.R. § 192.605. Accordingly, having reviewed the record and considered\nthe assessment criteria, I assess Respondent a civil penalty of $14,700 for violation of 49 C.F.R.\n§ 195.\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 $14,700.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, 6500 S\nMacArthur Blvd., Oklahoma City, Oklahoma 79169. The Financial Operations Division\ntelephone number is (405) 954-8845.\nFailure to pay the $14,700 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\n6 Response at 2.\n\n\n\nCPF No. 3-2016-5001\nPage 4\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violations of 49\nC.F.R. § 195. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of\nhazardous liquids or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. The Director indicates that\nRespondent has taken the following actions specified in the proposed compliance order:\n1. With respect to the violation of § 195.406 (Item 1), Respondent has evaluated all\noverpressure set points at each station on Tallgrass Pipeline to ensure that the set points\nwill adequately protect the pipeline and station's maximum operating pressure and re-set\nas necessary. Tallgrass identified all personnel involved in the incidents and retrained\nthem on the procedures for line fill and start-up of all stations. It also reviewed controller\ntraining an operating procedures to address any needed enhancements as a result of the\ntwo incidents.\n2. Respondent has completed and submitted records demonstrating the re-evaluation\nof all overpressure protection equipment and reset of set-points. Tallgrass also submitted\nrecords that demonstrated the identification and re-training of all personnel on the line fill\nand start-up procedures of the stations and the review of the controller operating and\ntraining procedures.\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\nUnder 49 C.F.R. § 190.243, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of this Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays the payment of\nany civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all\nother terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 1, 2016\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nActing Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":20387}