{"operation":"document","citation":"CPF 320196009W","title":"PARADIGM MIDSTREAM SERVICES - ND, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-11-26","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.440(c), 195.440(d)(2), 195.440(d)(3), 195.440(d)(4), 195.440(d)(5), 195.440(e), 195.440(f).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320196009w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320196009w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320196009w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320196009W","body":"Warning Letter involving PARADIGM MIDSTREAM SERVICES - ND, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.440(c),  195.440(d)(2),  195.440(d)(3),  195.440(d)(4),  195.440(d)(5),  195.440(e),  195.440(f). The case was opened on 2019-11-26 and is reported as closed as of 2019-11-26. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320196009W_Warning Letter_11262019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320196009W/320196009W_Warning%20Letter_11262019.pdf\n\n320196009W_Warning Letter_11262019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320196009W/320196009W_Warning%20Letter_11262019_text.pdf\n\n320196009W_Warning Letter_11262019_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 26, 2019\nMr. Troy Andrews\nChief Executive Officer\nParadigm Energy Partners\nLLC 545 East John Carpenter Freeway, Suite 800\nIrving, Texas 75062\nCPF 3-2019-6009W\nDear Mr. Andrews:\nOn January 24-26, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected your subsidiary, Paradigm Midstream Services – ND, LLC’s (Paradigm),\nprocedures and records for operations, maintenance, control room, operator qualification and\npublic awareness in Keene, North Dakota..\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 (CFR). The items\ninspected and the probable violations are:\n\n\n\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall\nbe reviewed at intervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a pipeline\nsystem commence, and appropriate parts shall be kept at locations where\noperations and maintenance activities are conducted.\nParadigm was unable to provide records indicating that its emergency plan and the\noperations and maintenance (O&M) manual were reviewed each calendar year at\nintervals not to exceed 15 months. As evidenced in an email indicating no records\nwere found, Paradigm stated, the \"[e]ntire O&M Manual was not reviewed in 2016. It\nwas still under development because it was believed that our pipelines did not fall\nunder DOT but we still wanted to operate our pipelines as if they were to set the\nhighest standards available. Once we became aware, we began implementing the\ndocumentation. Our O&M manual is under the review process as of 2/2017.\"\n2. §195.440 Public awareness\n(a) . . .\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator\nprovides justification in its program or procedural manual as to why compliance\nwith all or certain provisions of the recommended practice is not practicable and\nnot necessary for safety.\nAPI RP 1162\n8.3 MEASURING PROGRAM IMPLEMENTATION\nThe operator should complete an annual audit or review of whether the program\nhas been developed and implemented according to the guidelines in this RP. The\npurpose of the audit is to answer the following two questions:\n Has the Public Awareness Program been developed and written to address\nthe objectives, elements and baseline schedule as described Section 2 and\nthe remainder of this RP?\n Has the Public Awareness Program been implemented and documented\naccording to the written program?\n2\n\n\n\nAppendix E includes a sample set of questions that will aid an operator in\nauditing the program implementation process. The operator should use one of\nthe following three alternative methodologies when completing an annual audit of\nprogram implementation.\n Internal self-assessments using, for example, an internal\n working group, or\n Third-party audits where the evaluation is undertaken by a third-party\nengaged to conduct an assessment and provide recommendations for\nimproving the program design or implementation, or\n Regulatory inspections, undertaken by inspectors working for federal or\nstate regulators who inspect operator pipeline programs subject to\npipeline safety regulations.\nParadigm did not complete an annual audit or review of its public awareness program\nfor 2016. Since the public awareness program was not developed until 2017 due to the\noperator’s belief that the pipeline was not jurisdictional, there were no records of\nannual reviews of the public awareness program at the time of the inspection.\nParadigm submitted a December 2017 annual review on July 26, 2018.\n3. §195.440 Public awareness\n(a) . . .\n(d) The operator's program must specifically include provisions to educate the\npublic, appropriate government organizations, and persons engaged in\nexcavation related activities on:\n(1) . . .\n(2) Possible hazards associated with unintended releases from a hazardous liquid\nor carbon dioxide pipeline facility;\n(3) Physical indications that such a release may have occurred;\n(4) Steps that should be taken for public safety in the event of a hazardous liquid\nor carbon dioxide pipeline release; and\n(5) Procedures to report such an event.\n(e) The program must include activities to advise affected municipalities, school\ndistricts, businesses, and residents of pipeline facility locations.\n(f) The program and the media used must be as comprehensive as necessary to\nreach all areas in which the operator transports hazardous liquid or carbon\ndioxide.\n3\n\n\n\nParadigm’s written public awareness program did not include provisions to educate\nthe public and activities to advise affected residents of pipeline facility locations.\nAdditionally, Paradigm’s program and the media it used was not comprehensive, as\nneeded, to reach all areas in which the operator transports hazardous liquid. OPS\ninspector’s review of Paradigm’s public awareness program found that it was\ndeveloped and implement in January 2017, approximately 18 months after Paradigm’s\npipeline facility went into operation.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465\nfor a related series of violations. We have reviewed the circumstances and supporting\ndocuments involved in this case, and have decided not to conduct additional enforcement\naction or penalty assessment proceedings at this time. We advise you to correct the item(s)\nidentified in this letter. Failure to do so will result in Paradigm being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 3-2019-6009W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any portion\nof your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along\nwith the complete original document you must provide a second copy of the document with\nthe portions you believe qualify for confidential treatment redacted and an explanation of why\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nCopy:\nMr. Tommy Janik\nChief Operating Officer\nParadigm Midstream Services – ND, LLC.\n545 East John Carpenter Freeway, Suite 800,\nIrving, TX 75062\n4","truncated":false,"body_characters":7854}