{"operation":"document","citation":"CPF 320191004","title":"PANHANDLE EASTERN PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-12-12","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.619(a)(3), 192.619(c), 192.739(a)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320191004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320191004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320191004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320191004","body":"Notice of Probable Violation involving PANHANDLE EASTERN PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.619(a)(3),  192.619(c),  192.739(a)(4). The case was opened on 2019-12-12 and is reported as closed as of 2020-04-30. Proposed civil penalty: $12,000. Assessed civil penalty: $12,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320191004_Final Order_04302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320191004/320191004_Final%20Order_04302020.pdf\n\n320191004_Final Order_04302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320191004/320191004_Final%20Order_04302020_text.pdf\n\n320191004_NOPV PCP PCO_12122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320191004/320191004_NOPV%20PCP%20PCO_12122019.pdf\n\n320191004_NOPV PCP PCO_12122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320191004/320191004_NOPV%20PCP%20PCO_12122019_text.pdf\n\n320191004_Operator Response to Notice_01162020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320191004/320191004_Operator%20Response%20to%20Notice_01162020.pdf\n\n320191004_NOPV PCP PCO_12122019_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 12, 2019\nMr. Kelcy Warren\nChief Executive Officer\nEnergy Transfer\n8111 Westchester Drive\nDallas, Texas 75225\nCPF 3-2019-1004\nDear Mr. Warren:\nOn April 12, 2019, a representative of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your Panhandle Eastern Pipe Line safety related condition report submitted to\nPHMSA on April 11, 2019 (PHMSA reference number 19-148238). The safety related condition\nreport detailed that on April 7, 2019, the regulators at Johns Manville meter and regulator station at the\nJohns Manville Factory in Defiance, Ohio did not lock up, causing the outlet pressure downstream of\nthe regulators to exceed the maximum allowable operating pressure.\nAs a result of the inspection, it is alleged that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the\nprobable violations are:\n\n\n\n1. §192.619 Maximum allowable operating pressure: Steel or plastic pipelines.\n(a) No person may operate a segment of steel or plastic pipeline at a pressure that\nexceeds a maximum allowable operating pressure determined under paragraph (c) or (d)\nof this section, or the lowest of the following:\n(1) . . . . .\n(3) The highest actual operating pressure to which the segment was subjected during the\n5 years preceding the applicable date in the second column. This pressure restriction\napplies unless the segment was tested according to the requirements in paragraph (a)(2)\nof this section after the applicable date in the third column or the segment was uprated\naccording to the requirements in subpart K of this part:\nPipeline segment Pressure date Test date\n—Onshore gathering line that first\nbecame subject to this part (other\nthan §192.612) after April 13, 2006\nMarch 15, 2006, or date\nline becomes subject to\nthis part, whichever is\nlater\n5 years preceding\napplicable date in second\ncolumn\n—Onshore transmission line that\nwas a gathering line not subject to\nthis part before March 15, 2006\nOffshore gathering lines July 1, 1976 July 1, 1971\nAll other pipelines July 1, 1970 July 1, 1965.\n(c) The requirements on pressure restrictions in this section do not apply in the following\ninstance. An operator may operate a segment of pipeline found to be in satisfactory\ncondition, considering its operating and maintenance history, at the highest actual\noperating pressure to which the segment was subjected during the 5 years preceding the\napplicable date in the second column of the table in paragraph (a)(3) of this section. An\noperator must still comply with §192.611.\nEnergy Transfer (ET) violated § 192.619 by operating a segment of steel pipeline at a pressure\nthat exceeded a maximum allowable operating pressure (MAOP) as determined by the highest\nactual operating pressure to which the segment was subjected during 5 years prior to July 1,\n1970 (grandfather clause). ET’s safety related condition report (SRCR) (PHMSA reference\n19-148238) related that on April 7, 2019, the regulators at Johns Manville meter and regulator\nstation did not lock up, causing the outlet pressure downstream of the regulators to reach a\npressure of 449 psig, exceeding the MAOP plus 10% allowed buildup. On May 16, 2019,\nPHMSA discussed the SRCR with ET. As a result of this discussion, ET’s Director of\nInterstate Regulatory Compliance sent a follow-up email on May 28, 2019, clarifying that the\ndownstream MAOP at this station was established as 60 psig from the highest actual operating\npressure from 5 years preceding July 1, 1970 as allowed in §192.619(c). Therefore, ET\nexceeded the MAOP by operating its pipeline at 580% above the MAOP plus allowable (60 +\n6 = 66 psig).\n2\n\n\n\n2. §192.739 Pressure limiting and regulating stations: Inspection and testing.\n(a) Each pressure limiting station, relief device (except rupture discs), and pressure\nregulating station and its equipment must be subjected at intervals not exceeding 15\nmonths, but at least once each calendar year, to inspections and tests to determine that it\nis—\n(1) . . . . .\n(4) Properly installed and protected from dirt, liquids, or other conditions that might\nprevent proper operation.\nET failed to install equipment or a device to protect its pressure regulating station from dirt,\nliquids, or other conditions that might prevent proper operation in accordance with §\n192.739(a)(4). ET’s SRCR related that ET installed a relief valve downstream on June 10,\n2019, to prevent reoccurrence. On May 28, 2019, ET’s Director of Interstate Regulatory\nCompliance sent a follow-up email to a discussion about the SCRC that occurred on May 16,\n2019 between PHMSA and ET. The email clarified that a technician overhauled the failed\nregulators and upon disassembly “observed small pieces of welding slag caught between the\nboot and the cage in each regulator, thus explaining the cause of the failures.” The email also\nstates that the technician “installed a 1” Anderson-Greenwood relief valve as a token relief d/s\nof the regulators. The token relief valve’s purpose is in the event of station no-flow conditions\nand should the Singer regulators not achieve 100% lock up, the token can relieve the very\nsmall amount of leakage through the regulators and prevent over-pressure of the station outlet\npiping.” The email further states in additional notes that on the same day a similar regulator\nfailure to lock up occurred at the Johns Mansville #2 station.\nWhile installation of a token relief might prevent downstream pressure from exceeding the\nMAOP, in this case of the regulators not locking up, this corrective measure does not meet the\nrequirements of §192.739(a)(4). The regulation clearly states that the inspection determines if\nthe station is properly installed and protected from dirt, liquids and other conditions that might\nprevent proper operation. The technician’s finding of “small pieces of weld slag” causing the\nfailure to lock up, necessitates that equipment or a device be installed upstream of the\nregulators to protect them from this “dirt”. ET has failed to meet this requirement.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019,\nthe maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015 and before November 27,\n2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty\nnot to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for\na related series of violations. The Compliance Officer has reviewed the circumstances and supporting\ndocumentation involved for the above probable violation(s) and has recommended that you be\npreliminarily assessed a civil penalty of $12,000 as follows:\n3\n\n\n\nItem number PENALTY\n1 $12,000\nProposed Compliance Order\nWith respect to item 2 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to Panhandle Eastern Pipeline Company, LP.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All material\nyou submit in response to this enforcement action may be made publicly available. If you believe that\nany portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong with the complete original document you must provide a second copy of the document with the\nportions you believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice, this\nconstitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you\nand to issue a Final Order. If you are responding to this Notice, we propose that you submit your\ncorrespondence to my office within 30 days from receipt of this Notice. This period may be extended\nby written request for good cause.\nIn your correspondence on this matter, please refer to CPF 3-2019-1004 and, for each document you\nsubmit, 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 Compliance Proceedings\nCopy:\nRyan Coffey, Executive Vice President, Operations,Energy Transfer, dba Panhandle Eastern\nPipeline Company, 800 E. Sonterra Blvd. #400, San Antonio, TX 78258\nEric Amundsen, Senior Vice President, Energy Transfer, dba Panhandle Eastern Pipeline\nCompany, 1300 Main Street, Houston, TX 77002\n4\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 Energy Transfer a Compliance Order incorporating the\nfollowing remedial requirements to ensure the compliance of Energy Transfer with the pipeline safety\nregulations:\n1. 2. 3. In regard to Item Number 2 of the Notice pertaining to a regulator station being\nprotected from dirt, liquids, or other conditions that might prevent proper operation,\nEnergy Transfer must install equipment or device to meet this function at the Johns\nManville regulator stations in Defiance, Ohio.\nEnergy Transfer must complete Item 1 of the compliance order with 90 days of the\nreceipt of Final Order and submit documentation or the measures taken.\nIt is requested (not mandated) that Energy Transfer maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and submit\nthe total to Allan C. Beshore, Director, Central Region, OPS, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in two\ncategories: 1) total cost associated with preparation/revision of plans, procedures,\nstudies and analyses, and 2) total cost associated with replacements, additions and\nother changes to pipeline infrastructure.\n5\n\n320191004_Final Order_04302020_text.pdf\n\nApril 30, 2020\nVIA ELECTRONIC MAIL TO: kelcy.warren@energytransfer.com\nMr. Kelcy L. Warren\nPresident and Chief Executive Officer\nEnergy Transfer, LP\n8111 Westchester Drive\nDallas, Texas 75225\nRe: CPF No. 3-2019-1004\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nPanhandle Eastern Pipe Line Company. It makes findings of violation and assesses a civil\npenalty of $12,000. This is to acknowledge receipt of payment of the full penalty amount, by\nwire transfer, dated January 23, 2020. It also finds the actions specified in the Notice to comply\nwith the pipeline safety regulations have been completed. Therefore, this case is now closed.\nService of the Final Order by electronic mail is effective upon the date of transmission as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Order and NOPV)\ncc: Mr. Allan C. Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Todd Nardozzi, Senior Manager - DOT Compliance, Energy Transfer, LP,\ntodd.nardozzi@energytransfer.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\nPanhandle Eastern Pipe Line Company, ) CPF No. 3-2019-1004\na subsidiary of Energy Transfer, LP, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn April 12, 2019, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Panhandle Eastern\nPipe Line Company’s (PEPL or Respondent) safety related condition report submitted to\nPHMSA on April 11, 2019 (PHMSA reference number 19-148238). PEPL is a subsidiary of\nEnergy Transfer, LP. Panhandle Eastern Pipe Line Company is a large natural gas transmission\noperator with 6,337 miles of pipeline in the states of Illinois, Indiana, Kansas, Michigan, Ohio,\nOklahoma, and Texas.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated December 12, 2019, 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 PEPL had committed two violations of 49 C.F.R. Part 192 and proposed\nassessing a civil penalty of $12,000 for the alleged violations. The Notice also proposed\nordering Respondent to take certain measures to correct the alleged violations.\nEnergy Transfer responded to the Notice by letter dated January 16, 2020 (Response). The\ncompany did not contest the allegations of violation and paid the proposed civil penalty of\n$12,000 by wire transfer on January 23, 2020. The company provided information concerning\nthe corrective actions it had taken to show compliance with the proposed compliance actions. It\nalso requested that the Violation Report be updated to correct certain information. Respondent\ndid not request a hearing and therefore has waived its right to one.\nThe Region issued an Amended Violation Report on April 6, 2020.\n1 Amended Pipeline Safety Violation Report (Violation Report), (April 6, 2020) (on file with PHMSA), at 1.\n\n\n\nCPF No. 3-2019-1004\nPage 2\nFINDINGS OF VIOLATION\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\n49 C.F.R. § 192.619(a)(3) (Item 1) ─ Respondent failed to operate a segment of\nsteel pipeline at a pressure that exceeded a maximum allowable operating as\ndetermined by the highest actual operating pressure to which the segment was\nsubjected during five years prior to July 1, 1970.\nIn accordance with 49 C.F.R. § 190.223, Respondent is assessed the proposed\ncivil penalty amount of $12,000, which Respondent has already paid in full.\n49 C.F.R. § 192.739 (Item 2) ─ Respondent failed to install equipment or a\ndevice to protect its pressure regulating station from dirt, liquids, or other\nconditions that might prevent proper operation in accordance with\n§ 192.739(a)(4). On April 6, 2020, PEPL installed two strainers upstream of the\nregulators at the Johns Manville meter and regulator stations in Defiance, Ohio on\nMarch 23 and 26, 2020. PEPL also provided documentation and photos of the\ninstallations. Based on this documentation, Central Region determined that PEPL\nhas met the requirements of the proposed compliance order. Therefore, the terms\nof the proposed Compliance Order are not included in this Final Order.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nApril 30, 2020\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":17540}