{"operation":"document","citation":"CPF 320185013","title":"PERMIAN EXPRESS PARTNERS LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-12-12","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.573(a)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185013.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185013.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185013","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320185013","body":"Notice of Probable Violation involving PERMIAN EXPRESS PARTNERS LLC. PHMSA's enforcement data identifies the cited regulation as 195.573(a)(1). The case was opened on 2018-12-12 and is reported as closed as of 2019-05-03. Proposed civil penalty: $5,400. Assessed civil penalty: $5,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320185013_Final Order_05032019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185013/320185013_Final%20Order_05032019.pdf\n\n320185013_Final Order_05032019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185013/320185013_Final%20Order_05032019_text.pdf\n\n320185013_NOPV PCP_12122018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185013/320185013_NOPV%20PCP_12122018.pdf\n\n320185013_NOPV PCP_12122018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185013/320185013_NOPV%20PCP_12122018_text.pdf\n\n320185013_Operator Response to Notice_01112019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185013/320185013_Operator%20Response%20to%20Notice_01112019.pdf\n\n320185013_Final Order_05032019_text.pdf\n\nMay 3, 2019\nMr. Kelcy L. Warren\nChief Executive Officer and Chairman of the Board of Directors\nEnergy Transfer Partners, LP\n8111 Westchester Drive\nDallas, TX 75225\nRe: CPF No. 3-2018-5013\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nPermian Express Partners, LP. It makes one finding of violation and assesses a civil penalty of\n$5,400. This is to acknowledge receipt of payment of the full penalty amount, by wire transfer\ndated January 9, 2019. This enforcement action is now 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 Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Greg McIlwain, Senior Vice President of Operations, Permian Express Partners,\nLLC, 1300 Main Street, Houston, TX 77002\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____________________________________________\n)\nIn the Matter of )\n)\nPermian Express Partners, LLC, ) CPF No. 3-2018-5013\na subsidiary of Energy Transfer Partners, LP, )\n)\nRespondent. )\n____________________________________________)\nFINAL ORDER\nFrom August 15, 2017, through July 25, 2018, pursuant to 49 U.S.C. § 60117, representatives of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Permian\nExpress Partners, LLC’s (Permian Express or Respondent) Pegasus Pipeline in Sugar Land,\nCorsicana, and Sour Lake, Texas. Permian Express is a subsidiary of Energy Transfer Partners,\nLP.1 The Pegasus Pipeline, which transports crude oil, originates in Patoka, Illinois, and\nterminates in Jefferson County, Texas.2\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated December 12, 2018, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Permian\nExpress had violated 49 C.F.R. § 195.573 and proposed assessing a civil penalty of $5,400 for\nthe alleged violation.\nPermian Express responded to the Notice by letter dated January 11, 2019 (Response). The\ncompany did not contest the allegation of violation and paid the proposed civil penalty of $5,400\nby wire transfer on January 9, 2019. In accordance with 49 C.F.R. § 190.208(a)(1), such\npayment authorizes the Associate Administrator to make a finding of violation and to issue this\nfinal order without further proceedings.\n1 Energy Transfer Partners website, available at http://www.sunocologistics.com/Customers/Business-Lines/Crude-\nOil/253/ (last accessed Feb. 8, 2019); Energy Transfer Partners, List of Subsidiaries, available at\nhttps://www.sec.gov/Archives/edgar/data/1276187/000127618718000011/ete2017listofsubsidiaries- htm (last\naccessed Feb. 8, 2019).\n2 Pipeline Safety Violation Report (Violation Report), (Dec. 12, 2018) (on file with PHMSA), at 1.\n\n\n\nCPF 3-2018-5013\nPage 2\nFINDING OF VIOLATION\nIn its Response, Permian Express did not contest the allegation in the Notice that it violated 49\nC.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.573(a)(1), which states:\n§ 195.573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine\nwhether cathodic protection required by this subpart complies with\n§ 195.571:\n(1) Conduct tests on the protected pipeline at least once each calendar\nyear, but with intervals not exceeding 15 months. However, if tests at those\nintervals are impractical for separately protected short sections of bare or\nineffectively coated pipelines, testing may be done at least once every 3\ncalendar years, but with intervals not exceeding 39 months.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.573(a)(1) by failing to conduct\ntests on a cathodically protected pipeline at least once each calendar year, but with intervals not\nexceeding 15 months. Specifically, the Notice alleged that Permian Express failed to conduct\npipe-to-soil potential tests on the southern end of the Pegasus Pipeline in calendar year 2016.\nPermian Express conducted a survey after it discovered the omission in January 2017.\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. § 195.573(a)(1) by failing to conduct\ntests on a cathodically protected pipeline at least once each calendar year, but with intervals not\nexceeding 15 months.\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.3 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; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,\n83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).\n\n\n\nCPF 3-2018-5013\nPage 3\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $5,400 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $5,400 for Respondent’s violation of 49 C.F.R.\n§ 195.573(a)(1), by failing to conduct tests on a cathodically protected pipeline at least once each\ncalendar year, but with intervals not exceeding 15 months. Permian Express neither contested\nthe allegation nor presented any evidence or argument justifying a reduction in or elimination of\nthe proposed penalty. Accordingly, having reviewed the record and considered the assessment\ncriteria, I assess Respondent a civil penalty of $5,400 for violation of 49 C.F.R. § 195.573(a)(1),\nwhich was paid in full by wire transfer on January 9, 2019.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMay 3, 2019\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":8248}