{"operation":"document","citation":"CPF 320171004","title":"ANR PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-03-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.225(a), 192.481(b), 192.707(d)(2), 192.709(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320171004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320171004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320171004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320171004","body":"Notice of Probable Violation involving ANR PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.225(a),  192.481(b),  192.707(d)(2),  192.709(c). The case was opened on 2017-03-16 and is reported as closed as of 2017-11-16. Proposed civil penalty: $46,600. Assessed civil penalty: $46,600. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320171004_Closure Letter_11162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Closure%20Letter_11162017.pdf\n\n320171004_Closure Letter_11162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Closure%20Letter_11162017_text.pdf\n\n320171004_Final Order_09152017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Final%20Order_09152017.pdf\n\n320171004_Final Order_09152017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_Final%20Order_09152017_text.pdf\n\n320171004_NOPV PCO PCP_03162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_NOPV%20PCO%20PCP_03162017.pdf\n\n320171004_NOPV PCO PCP_03162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320171004/320171004_NOPV%20PCO%20PCP_03162017_text.pdf\n\n320171004_NOPV PCO PCP_03162017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 16, 2017\nMr. Stanley Chapman\nSenior Vice President and General Manager\nANR Pipeline Company / TransCanada\n700 Louisiana Street\nHouston, TX 77002\nCPF 3-2017-1004\nDear Mr. Chapman:\nFrom July 20, 2015 to December 10, 2015, representatives of the Michigan Public Service\nCommission (MI-PSC) acting as an interstate agent for the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of\n49 United States Code inspected your records and facilities at multiple locations in Michigan.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violation(s) are:\n1. §192.225 Welding Procedures\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, or\nAppendix A of API Std 1104 (incorporated by reference, see §192.7) or section IX\nASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see\n\n\n\n§192.7), to produce welds which meet the requirements of this subpart. The quality of\nthe test welds used to qualify welding procedures must be determined by destructive\ntesting in accordance with the referenced welding standard(s).\nIn 2013, ANR Pipeline Company (ANR) did not use properly qualified and applicable\nwelding procedures during remedial work on the ANR Lincoln Storage Field Line - North\nHeader and the Goodwell Storage Field.\nANR utilized welding procedure X60-0-GW-01 when they made repairs at 8 locations;\nspecifically, Remediation Digs D, E, F, G, L, M, N in Lincoln, and Dig K in Goodwell.\nWelding procedure X60-0-GW-01 was developed from four previous API 1104\nprocedures: Plus-03-WPS, Plus-04-WPS, Plus-05-WPS, and Plus-06-WPS. Upon review\nof the qualification records for procedure X60-0-GW-01, it was noted that the range of the\ntravel speeds in the new procedure did not meet the travel speed specifications in the four\npredecessor procedures. Per API Standard 1104, travel speed is an essential variable\nwhich requires requalification of the welding procedure if that variable is changed. No\nadditional procedure qualification was completed for X60-0-GW-01 prior to the welding\nperformed during the remediation project.\nAdditionally, ANR did not use the correct welding procedure for the repairs made at Dig\n“K” in the Goodwell Storage field. In 2013, ANR was doing some remediation work in\nthe Goodwell Storage Field which involved the welding of Grade X52 (existing) pipe and\nGrade X70 (replacement) pipe. Welding Procedure X60-0-GW-01 and repair procedures\nX60-08-RP-04 and X60-8-RP-05 (which allow welding of pipe X60 and below) were used\nto complete the tie-in welds 8 and 9 for Dig K.\n2. §192.707 Line markers for mains and transmission lines.\n(d) Marker warning. The following must be written legibly on a background of\nsharply contrasting color on each line marker:\n(2) The name of the operator and telephone number (including area code) where the\noperator can be reached at all times.\nANR’s line marker did not have the correct name or a 24-hour telephone number on a line\nmarker where they could be reached at all times.\nDuring the field observation, it was noted that the pipeline marker on the 20-inch 338 Line\n(Covert Lateral) did not contain the current name of the operator or the telephone number\nas required by 192.707(d)(2) where the operator can be reached at all times. The name of\nthe operator on the line marker was El Paso. The phone number 1-800-231-2800 on the\nmarker directs the caller to El Paso who then provides the phone number for TransCanada\nto the caller.\n2\n\n\n\n3. 4. §192.709 Transmission lines: Record keeping.\nEach operator shall maintain the following records for transmission line for the\nperiods specified:\n(c) A record of each patrol, survey, inspection, and test required by subparts L and\nM of this part must be retained for at least 5 years or until the next patrol, survey,\ninspection, or test is completed, whichever is longer.\nANR did not document the inspection of overpressure protection equipment (pressure\ncontrol valve (PCV) PCV-5017) for the interconnect between Cold Springs 1 Compressor\nStation (CS-1) and Cold Springs 12 Compressor Station (CS-12) for 2014-2015.\nInspection and testing of overpressure protection is required in Subpart M; therefore, a\nrecord of those inspections and tests is required.\nThere is a connection from CS-1 to CS-12 that has a pressure control valve designated as\nPCV-5017. This PCV is controlled by pressure switch #5017, which limits the maximum\nallowable operating pressure (MAOP) of the connection between CS-1 and CS-12 [from\nan MAOP of 1100 psig (CS-1) to an MAOP of 1050 psig (CS-12)]. ANR stated that this\ndevice was inspected annually, but was not considered to be part of the \"DOT\" inspections\nfor either station and therefore, was not documented.\n§192.481 Atmospheric corrosion control: Monitoring.\n(b) During inspections the operator must give particular attention to pipe at soil-to-\nair interfaces, under thermal insulation, under disbonded coatings, at pipe\nsupports, in splash zones, at deck penetrations, and in spans over water.\nAt the Bridgman Compressor station, ANR personnel did not inspect for atmospheric\ncorrosion at pipe supports and at soil-to-air interface locations.\nDuring the October 6-7, 2015 MI-PSC field evaluation of the Bridgman Compressor\nstation, significant atmospheric corrosion was found on the pipe at a soil-to-air interface\nnear the northeast corner of the station and above a pipe support near the center of the\nstation. In 2013 and 2014, ANR conducted atmospheric corrosion inspections for the\nBridgman compressor station which did not identify any atmospheric corrosion at these\nlocations. Additionally, it was noted by MI-PSC that the pipeline support near the center\nof the station could not be lowered to allow ANR field personnel to properly inspect and\naddress the pipe above the support.\n3\n\n\n\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a\nrelated series of violations. For violations occurring between January 4, 2012 to August 1,\n2016, the maximum penalty may not exceed $200.000 per violation per day, with a maximum\npenalty not to exceed $2,000,000 for a related series of violations. For violations occurring\nprior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per\nday, with a maximum penalty not to exceed $1,000,000 for related series of violations. The\nCompliance Officer has reviewed the circumstances and supporting documentation involved\nin the above probable violation(s) and has recommended that you be preliminarily assessed a\ncivil penalty as follows:\nItem number PENALTY\n4 $46,600\nWarning Items\nWith respect to item(s) one, two, and three, we have reviewed the circumstances and\nsupporting documents involved in this case and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to\npromptly correct these item(s). Failure to do so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to item four pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to ANR\nPipeline Company. 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 you submit 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.4\n\n\n\nIn your correspondence on this matter, please refer to CPF 3-2017-1004 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\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: Mr. Vern Meier\nVice President – Pipeline Safety and Compliance\nANR Pipeline Company / TransCanada\n700 Louisiana Street\nHouston, TX 77002\nMr. Lee Romack\nManager – US Regulatory Compliance\nANR Pipeline Company / TransCanada\n700 Louisiana Street\nHouston, TX 77002\n5\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 ANR Pipeline Company a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of ANR Pipeline\nCompany with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number four of the Notice pertaining to the atmospheric\ncorrosion inspection at Bridgman Compressor Station, ANR must re-survey the\nBridgman Compressor. After the re-survey, ANR must provide PHMSA the\noperator qualification records of the personnel conducting the re-survey, results\nof those surveys and a remedial action list with a time frame.\nThe re-survey of the Bridgman Compressor Station must be completed within\n30 days of the date of the Final Order. The submission of the results of the re-\nsurvey, the operator qualification records of the personnel that performed the\nre-survey, and the time line for repairs must be submitted within 60 days of the\ndate of the Final Order.\nIt is requested (not mandated) that ANR Pipeline Company maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Allan C. Beshore, Director, Central\nRegion, Pipeline and Hazardous Materials Safety Administration. It is\nrequested that these costs be reported in two categories: 1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses, and 2)\ntotal cost associated with replacements, additions and other changes to pipeline\ninfrastructure.\n6\n\n320171004_Closure Letter_11162017_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 16, 2017\nMr. Stanley Chapman\nSenior Vice President and General Manager\nANR Pipeline Company / TransCanada\n700 Louisiana Street\nHouston, TX 77002\nCPF 3-2017-1004\nDear Mr. Chapman:\nOn September 15, 2017, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) issued to TransCanada Corporation a Final Order (Order) in the above referenced\ncase. This Order included a Compliance Order and Civil Penalty assessment. On November\n14, 2017, PHMSA received the documentation required by Item 2 of the Compliance Order,\nsummarizing the operator qualification records and the completion of the atmospheric\ncorrosion surveys of your facilities. Based on our review of the documentation you provided,\nand confirmation of payment of the civil penalty, it has been determined that you have\ncomplied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\n\n320171004_Final Order_09152017_text.pdf\n\nSeptember 15, 2017\nMr. Russell K. Girling\nPresident & CEO\nTransCanada Corporation\n450 – 1 St. SW\nCalgary, Alberta, Canada T2P 5H1\nRe: CPF No. 3-2017-1004\nDear Mr. Girling\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation, assesses a civil penalty of $46,600, and specifies actions that need to be taken by ANR\nPipeline Company, a subsidiary of TransCanada, to comply with the pipeline safety regulations.\nThis is to acknowledge receipt of payment of the full penalty amount, by certified check, dated\nApril 18, 2017. When the terms of the compliance order are completed, as determined by the\nDirector, Central Region, this enforcement action will be closed. Service of the Final Order by\ncertified mail is effective upon the date of mailing as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Allan C. Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA\nLee Romack, Manager, U.S. Regulatory Compliance, TransCanada, via email at\nlee_romack@transcanada.com\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 )\nANR Pipeline Company, ) CPF No. 3-2017-1004\na subsidiary of TransCanada Corporation, )\n)\n)\n)\nRespondent. )\n_________________________________________ )\nFINAL ORDER\nFrom July 20, 2015, through December 10, 2015, pursuant to 49 U.S.C. § 60117, representatives\nof the Michigan Public Service Commission (MI-PSC), acting as interstate agent for the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of ANR Pipeline\nCompany (ANR or Respondent) in multiple locations in Michigan. ANR operates approximately\n10,600 miles of natural gas pipeline throughout the Midwest.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated March 16, 2017, 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 ANR had violated 49 C.F.R. § 192.481(b) and proposed assessing a civil\npenalty of $46,600 for the alleged violation. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violation and also contained several warning items,\nadvising the operator to correct the probable violations or face possible enforcement action.\nANR responded to the Notice by email dated April 17, 2017 (Response). The company did not\ncontest the allegation of violation and paid the proposed civil penalty of $46,600. In accordance\nwith 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate Administrator to make a\nfinding of violation and to issue this Final Order.\nFINDING OF VIOLATION\nIn its Response, ANR did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n192, as follows:\n1 ANR’s website, available at https://www.anrpl.com/company_info/ (last accessed June 15, 2017).\n\n\n\nCPF No. 3-2017-1004\nPage 2\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.481(b), which states:\n§ 192.481 Atmospheric corrosion control: Monitoring.\n(a) . . .\n(b) During inspections the operator must give particular attention to\npipe at soil-to-air interfaces, under thermal insulation, under disbanded\ncoatings, at pipe supports, in splash zones, at deck penetrations, and in spans\nover water.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.481(b) by failing to inspect its\npipeline facilities for atmospheric corrosion at pipe supports and at soil-to-air interface locations.\nSpecifically, the Notice alleged that, despite ANR conducting atmospheric corrosion inspections\nfor the Bridgman Compressor Station in 2013 and 2014 that did not identify atmospheric\ncorrosion, the MI-PSC inspection in 2015 revealed significant atmospheric corrosion. The\ncorrosion was found on the pipe at a soil-to-air interface near the northeast corner of the\nBridgman Compressor Station and above a pipe support near the center of the station.\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. § 192.481(b) by failing to perform\natmospheric corrosion monitoring on its pipeline facilities that included inspections with\nparticular attention given to pipe at soil-to-air interfaces and at pipe supports.\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.2 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\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect\nthat the penalty may have on its ability to continue doing business; and the good faith of\nRespondent in attempting to comply with the pipeline safety regulations. In addition, I may\nconsider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a total\ncivil penalty of $46,600 for the violation cited above.\nItem 4: The Notice proposed a civil penalty of $46,600 for Respondent’s violation of 49 C.F.R.\n§ 192.481(b), for failing to perform atmospheric corrosion monitoring that included inspections\nwith particular attention given to pipe at soil-to-air interfaces and at pipe supports. ANR neither\n2 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum\nCivil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\n\n\n\nCPF No. 3-2017-1004\nPage 3\ncontested the allegation nor presented any evidence or argument justifying a reduction in or\nelimination of the proposed penalty. ANR’s failure to take appropriate action to comply with a\nrequirement that was clearly applicable caused pipeline safety to be significantly compromised in\nareas that are not in an HCA or an HCA “could affect” segment. Accordingly, having reviewed\nthe record and considered the assessment criteria, I assess Respondent a civil penalty of $46,600\nfor violation of 49 C.F.R. § 192.481(b).\nIn summary, having reviewed the record and considered the assessment criteria for the Item cited\nabove, I assess Respondent a total civil penalty of $46,600, which has already been paid by\nRespondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 4 in the Notice for violation of\n49 C.F.R. § 192.481(b). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 192.481(b) (Item 4), Respondent must re-survey\nthe Bridgman Compressor Station within 30 days of the date of this Final Order.\nAfter the re-survey and within 60 days of the date of this Final Order, ANR must\nprovide the Director, Central Region, PHMSA, with: (1) the operator qualification\nrecords of the personnel who conducted the re-survey; (2) the results of the re-survey;\nand (3) a remedial action list with a timeline for repairs.\nIt is requested (not mandated) that ANR maintain documentation of the safety improvement\ncosts associated with fulfilling this Compliance Order and submit the total to the Director,\nCentral Region, PHMSA. It is requested that these costs be reported in two categories: (1) total\ncost associated with preparation/revision of plans, procedures, studies and analyses; and (2) total\ncost associated with replacements, additions, and other changes to pipeline infrastructures.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\n\n\n\nCPF No. 3-2017-1004\nPage 4\nWARNING ITEMS\nWith respect to Items 1-3, the Notice alleged probable violations of Part 192 but did not propose\na civil penalty or compliance order for these items. Therefore, these are considered to be\nwarning items. The warnings were for:\n49 C.F.R. § 192.225(a) (Item 1) ─ Respondent’s alleged failure to use properly\nqualified and applicable welding procedures during remedial work;\n49 C.F.R. § 192.707(d)(2) (Item 2) ─ Respondent’s alleged failure to have\nappropriate line markers for mains and transmission lines; and\n49 C.F.R. § 192.709(c) (Item 3) ─ Respondent’s alleged failure to maintain a\nrecord of each patrol, survey, inspection, and test required under subparts L and\nM of Part 192 for at least five years or until the next patrol, survey, inspection, or\ntest is completed, whichever is longer.\nIf OPS finds a violation of any of these items in a subsequent inspection, Respondent may be\nsubject to future enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nSeptember 15, 2017\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":23931}