{"operation":"document","citation":"CPF 320201012","title":"ANR PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-12-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.163(d), 192.603(b), 192.605(a), 192.609, 192.705(a), 192.735(a), 192.905(b), 192.935(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320201012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320201012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320201012","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320201012","body":"Notice of Probable Violation involving ANR PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.163(d),  192.603(b),  192.605(a),  192.609,  192.705(a),  192.735(a),  192.905(b),  192.935(a). The case was opened on 2020-12-04 and is reported as closed as of 2021-11-04. Proposed civil penalty: $252,900. Assessed civil penalty: $252,900. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320201012_Amended NOPV PCP PCO_03122021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Amended%20NOPV%20PCP%20PCO_03122021.pdf\n\n320201012_Amended NOPV PCP PCO_03122021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Amended%20NOPV%20PCP%20PCO_03122021_text.pdf\n\n320201012_Closure Letter_11042021_(17-157266S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Closure%20Letter_11042021_(17-157266S).pdf\n\n320201012_Closure Letter_11042021_(17-157266S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Closure%20Letter_11042021_(17-157266S)_text.pdf\n\n320201012_Final Order_05122021_(17-157266S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Final%20Order_05122021_(17-157266S).pdf\n\n320201012_Final Order_05122021_(17-157266S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Final%20Order_05122021_(17-157266S)_text.pdf\n\n320201012_NOPV PCP PCO_12042020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_NOPV%20PCP%20PCO_12042020.pdf\n\n320201012_NOPV PCP PCO_12042020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_NOPV%20PCP%20PCO_12042020_text.pdf\n\n320201012_Operator Request for Hearing and Preliminary Statement of Issues_02012021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_Operator%20Request%20for%20Hearing%20and%20Preliminary%20Statement%20of%20Issues_02012021.pdf\n\n320201012_PHC Hearing Scheduled_02262021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_PHC%20Hearing%20Scheduled_02262021.pdf\n\n320201012_PHC Hearing Scheduled_02262021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320201012/320201012_PHC%20Hearing%20Scheduled_02262021_text.pdf\n\n320201012_PHC Hearing Scheduled_02262021_text.pdf\n\nFebruary 26, 2021\nVIA ELECTRONIC MAIL TO: kcoyle@babstcalland.com and gregory.ochs@dot.gov\nMr. Keith Coyle, Esq.\nCounsel for ANR Pipeline Company\nBabst Calland\n505 9th Street NW, Suite 700\nWashington, DC 20004\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, MO 64106\nRe: Notice of Hearing, ANR Pipeline Company\nCPF No. 3-2020-1012\nDear Mr. Coyle and Mr. Ochs:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the\nPipeline and Hazardous Materials Safety Administration in the above-referenced case. The\nhearing will take place on April 7, 2021, beginning at 9:00 am Eastern Time.\nThe hearing will be held via videoconference. I will provide the videoconference information\nprior to the hearing. At least 10 calendar days prior to the hearing (or by March 28, 2021), both\nparties must submit and exchange any additional written materials they intend to present at the\nhearing and the name and email address of each attendee. This information should be provided\nelectronically. Materials not submitted by this date may be excluded.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nKristin Baldwin\nPresiding Official\ncc: Mr. Joseph Hainline, Counsel, Office of Pipeline Safety, PHMSA\nMs. Jill Holley, Senior Legal Counsel, ANR Pipeline Company\njill_holley@tcenergy.com\n\n320201012_Amended NOPV PCP PCO_03122021_text.pdf\n\nAMENDED NOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: stanley chapman iii@tcenergy.com ,\nwendy_west@tcenergy.com , erik_hughes@tcenergy.com , and\nlee_romack@tcenergy.com\nMarch 12, 2021\nStanley Chapman\nExecutive VP and President US Natural Gas Pipelines\nTC Energy - ANR\n700 Louisiana Street\nSuite 700\nHouston, TX 77002\nstanley_chapman_iii@tcenergy.com\nCPF 3-2020-1012\nDear Mr. Chapman:\nFrom April 17, 2018 to August 24, 2018, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.) inspected ANR Pipeline Company’s (ANR) records and\nnatural gas facilities in Wisconsin, and Illinois, in Waukesha and Kankakee Areas of the\nHeartland Region along with records in Houston, Texas.\nAdditionally, from December 3, 2018 through June 7, 2019, OPS representatives inspected\nANR’s records and natural gas facilities in the St. Joseph and Dodge City Areas in the Heartland\nRegion of Oklahoma, Kansas, Missouri, and Iowa, as well as ANR’s records in Omaha,\nNebraska and Houston, Texas.\n\n\n\nAs a result of these inspections, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 192.163 Compressor stations: Design and construction.\n(a) .…\n(d) Fenced areas. Each fence around a compressor station must have at least two\ngates located so as to provide a convenient opportunity for escape to a place of\nsafety, or have other facilities affording a similarly convenient exit from the area.\nEach gate located within 200 feet (61 meters) of any compressor plant building must\nopen outward and, when occupied, must be openable from the inside without a key.\nANR failed to ensure that each gate within 200 feet of a compressor plant building was\nopenable from the inside without a key when occupied. PHMSA’s inspectors discovered\nduring the inspection that the fence around the Marshfield compressor station in the\nWaukesha Area had a locked man gate within the main roller gate that was not openable\nfrom the inside without a key. The main roller gate was located within 200 feet of a\ncompressor plant building. In subsequent discussions, ANR stated that it has corrected\nthe non-compliance.\n2. § 192.603 General provisions.\n(a) .…\n(b) Each operator shall keep records necessary to administer the procedures\nestablished under § 192.605.\nANR failed to maintain records for maintenance and construction projects on its\nHeartland pipeline system as required by § 192.603(b). During a teleconference with\nANR on January 9, 2019, PHMSA inquired about instances of reconfiguration of any\npipeline segments within the past five years. ANR informed PHMSA on February 20,\n2019 during a follow-up teleconference of specific activities in Iowa concerning a project\nthat was described as having pipe reconfiguration in 2014. PHMSA confirmed the\nrequest for these records during the headquarters inspection on April 11, 2019, and\nfollowed up by sending a formal Request For Specific Information (RFSI) on April 29.\nAlthough ANR did not provide the requested records within 30 days as required by the\nRFSI, ANR did respond after the 30 days by electronically submitting a short description\nof the project, but no actual records, as required under § 192.603(b).\n2\n\n\n\n3. § 192.605 Procedure manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed and\nupdated by the operator at intervals not exceeding 15 months, but at least once each\ncalendar year. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at locations\nwhere operations and maintenance activities are conducted.\nANR failed to prepare and follow a procedure for defining rate of pressure drop (RoPD)\nline-break devices at the time of the inspection. Upon questioning, ANR confirmed that\nit did not have a procedure in place at the time of the inspection for this activity. ANR\nhas since updated its procedures to correct this noncompliance.\n4. § 192.609 Change in class location: Required study.\nWhenever an increase in population density indicates a change in class location for a\nsegment of an existing steel pipeline operating at a hoop stress that is more than 40\npercent of SMYS, or indicates that the hoop stress corresponding to the established\nmaximum allowable operating pressure for a segment of existing pipeline is not\ncommensurate with the present class location, the operator shall immediately make\na study to determine;\n(a) The present class location for the segment involved.\n(b) The design, construction, and testing procedures followed in the original\nconstruction, and a comparison of these procedures with those required for the\npresent class location by the applicable provisions of this part.\n(c) The physical condition of the segment to the extent it can be ascertained from\navailable records;\n(d) The operating and maintenance history of the segment;\n(e) The maximum actual operating pressure and the corresponding operating hoop\nstress, taking pressure gradient into account, for the segment of pipeline involved;\nand,\n(f) The actual area affected by the population density increase, and physical\nbarriers or other factors which may limit further expansion of the more densely\npopulated area.\nANR failed to immediately make studies to determine the present class locations of the\n301, 1-301, 2-301, 100, and the 1-100 pipeline segments in the Kankakee and Waukesha\nAreas, when increases in population density occurred along the existing steel pipelines\noperating at a hoop stress of more than 40 percent of the specified minimum yield\nstrength (SMYS).\n3\n\n\n\nClass locations are defined by § 192.5, and include areas such as playgrounds and\ncampgrounds. Specifically, a Class 3 locations is defined, in relevant part as follows:\n“[a]n area where the pipeline lies within 100 yards (91 meters) of either a building or a\nsmall, well-defined outside area (such as a playground, recreation center, outdoor theater,\nor other place of public assembly) that is occupied by 20 or more persons on at least 5\ndays a week for 10 weeks in any 12-month period. (The days and months need not be\nconsecutive.)”\nOn August 22, 2018, ANR provided a document to PHMSA titled “Identified Sites,\nProximity Sites/HCA, Class Location Determination Request For Information –\nPrefacing Commentary” that identified that the Timber Campground (Campground) and\nthe playground north of the Gary D. Wright Elementary School met the criteria for Class\n3 locations. The studies were not completed until April 2017, despite evidence of\npopulation density changes indicating a change in class location occurring as early as\n2010 and continuing each year thereafter.\nTimber Campground\nThe Timberland Campground was originally built in the 1960s and expanded to its\ncurrent configuration in 2011. The owner of the campground confirmed with ANR in\nApril 2017 that the Campground had over 100 campsites and saw significant seasonal\nusage from April to October. Prior to 2017, the Campground was classified as a Class 1\nlocation, however, on April 26, 2017, ANR completed the required study and identified\nthe Campground as a “New Proximity Site” that met the Class 3 location criteria. The\nknown seasonal usage of the campground between April and October since at least 2010\nthrough April 2017 required ANR to complete a class location study in this area prior to\nits April 2017 study. ANR acknowledged during the inspection that there was an issue\nwith their process in identifying campgrounds as warranting a change in class location\nand that the problem has been addressed by use of a different contractor to perform the\nrequisite population density analysis and subsequent class location studies, if applicable.\nPlayground North of the Gary D. Wright Elementary School\nIn early 2017, after a review of construction plans for an expansion of the Gary D. Wright\nElementary School, ANR noted that there was a playground north of the school, despite\nthe fact that the playground had been present in that location since 2010. Similar to the\ncampground, there was evidence of a possible change in population density due to the\npresence of the playground since at least 2010 that indicated a possible change in class\nlocation. Notwithstanding the presence of this playground since 2010, ANR did not\ncomplete the requisite class location study until April 19, 2017, the result of which was to\nconfirm that the playground met the criteria for a Class 3 location.\nANR’s document demonstrated that ANR failed to immediately make studies to\ndetermine the class locations for segments located in the areas of the Gary D. Wright\nElementary School playground and the Timber Campground prior to April 2017 when\n4\n\n\n\nthere was evidence of an increase in population density that indicated a change in class\nlocation.\n5. § 192.705 Transmission lines: Patrolling.\n(a) Each operator shall have a patrol program to observe surface conditions on and\nadjacent to the transmission line right-of-way for indications of leaks, construction\nactivity, and other factors affecting safety and operation.\nANR failed to observe surface conditions over its right-of-way when conducting aerial\npatrols of its Heartland pipeline system. During the field inspection PHMSA observed\novergrown areas of trees and brush obscuring the aerial view of the right-of-way in 23\nlocations. No ground patrols were conducted at these locations.\nLocations observed in the Flint Hills and Tri State Areas:\n1. 2. Approximately 1000 feet of tree cover southwest of Wreford, Kansas (MP 304)\nApproximately 150 feet of dense overgrowth on the south side of Marysville,\nMissouri Meter Station (MP 351)\n3. Approximately 250 feet of overgrowth on the Burlington Lateral right-of way on\nthe north side of the Western Pines, Iowa Mobile Home Park HCA area.\n4. Approximately 1,900 feet of tree cover over the main line east of the Middletown,\nIowa Meter Station\nLocations observed in the Kankakee and Waukesha Areas:\n5. Overgrown brush on the 100 and 1-100 pipelines near the Fox River crossing in\nIllinois (MP 796.81)\n6. Tree cover over the exposed segment of the 2-301 pipeline in Little Rock Creek in\nIllinois (MP 1.6)\n7. Overgrown brush on the 237 pipeline, west of the intersection of S County Line\nRoad and Hansen Road on the Oneida Reservation in Wisconsin\n8. Tree cover over the 226 pipeline, near County Roads T&V in Wisconsin\n9. Tree cover over the 226 pipeline, west of MLV 5 (MP 34.2) in Wisconsin.\n10. Tree cover over the 226 pipeline, west of the Appleton Meter Station in\nWisconsin (MP 92)\n11. Tree cover over the 226 pipeline, northeast of the Appleton Meter Station in\nWisconsin (MP 92)\n12. Tree cover over the 366 pipeline, east of the Mosinee Meter Station (MP 2.83) in\nWisconsin\n13. Tree cover over the 366 pipeline, north of the Mosinee Tap (MP 12.54)\n14. Tree cover over the 227 pipeline, west of Geulig Road in Wisconsin\n15. Tree cover over the exposed 257 pipeline in the Eau Claire River (MP 19.1)\n16. Tree cover over the 227 pipeline, north of the Oconto River in Wisconsin (MP\n52.7)\n17. Overgrown brush on the 227 pipeline, west of King’s Buffet in Marinette,\nWisconsin\n5\n\n\n\n18. Tree cover over the 285 pipeline, west of CR EE in Wisconsin (MP 73)\n19. Tree cover the 301, 1-301, and the 2-301 pipelines, south of Tan Road in\nWisconsin (MP 97)\n20. Tree cover the 301 and1-301 pipelines from Mill Road to Good Hope Road in\nWisconsin (MP 112 to MP 113)\n21. Overgrown brush on the 301 and 1-301 pipelines near the Community Memorial\nHospital Garden (MP 114)\n22. Tree cover over the 207 pipeline, west of the Jackson Meter Station in Wisconsin\n23. Tree cover over the Milwaukee River crossings of the 301, 1-301, and the 2-301\npipelines in Wisconsin (MP 147)\n6. § 192.735 Compressor stations: Storage of combustible materials.\n(a) Flammable or combustible materials in quantities beyond those required for\neveryday use, or other than those normally used in compressor buildings, must be\nstored a safe distance from the compressor building.\nANR failed to store flammable or combustible materials in quantities beyond those\nrequired for everyday use at a safe distance from the compressor buildings in the\nKankakee and the Waukesha Areas.\n7. During the field inspections, PHMSA observed the storage of flammable or combustible\nmaterials, such as numerous cardboard boxes, wood boxes, and wood pallets, in the\nKewaskum, Janesville, and Weyauwega Compressor Station buildings and a large\nquantity in the valve building in the Mount Compressor Station. Additionally, during the\nfield inspection of the New Windsor Compressor Station, PHMSA observed that the\nmaterials used to overhaul a compressor unit were stored in cardboard boxes and wooden\ncrates in the compressor building.\nAfter PHMSA’s inspection ANR provided a written response on December 21, 2018,\nstating: “All of the combustible materials have been removed from the compressor\nbuildings,” and provided pictures of the Kewaskum Compressor Building and the\nMountain Valve Room showing that combustible materials were cleared.\n§ 192.905 How does an operator identify a high consequence area?\n(a) . . . .\n(b)(1) Identified sites. An operator must identify an identified site, for purposes of\nthis subpart, from information the operator has obtained from routine operation\nand maintenance activities and from public officials with safety or emergency\nresponse or planning responsibilities who indicate to the operator that they know of\nlocations that meet the identified site criteria. These public officials could include\nofficials on a local emergency planning commission or relevant Native American\ntribal officials.\n6\n\n\n\nANR failed to identify two “identified sites” along its pipeline segment in regard to high\nconsequence areas (HCAs) and the implementation of its integrity management plan\n(IMP). During the records inspection of the Kankakee and Waukesha Areas, ANR\nprovided a written memo that identified the Timber Campground and the playground\nnorth of the Gary D. Wright Elementary School as newly “identified sites.” These\nlocations were identified as “identified sites” in 2017 even though they were present at\nleast five years prior. This probable violation is a repeat of the same Code section that\nwas violated in CPF # 3-2018-1001, Item #1.\nTimber Campground\nANR failed to identify the Timber Campground (Campground) near the exposed pipeline\non the 1-100/100 pipeline segments as an “identified site.”\nPrior to 2017, the Campground was classified as a non-HCA. During OPS’ inspection of\nANR’s IMP records, ANR provided a memo that noted that they had inspected an\nexposed pipeline near the Campground on October 17, 2016, but had not identified the\nCampground as an “identified site.” It was not until 2017 when ANR discovered that the\nCampground was an “identified site” from conducting a population density survey. On\nAugust 22, 2018, during the same OPS inspection, ANR provided a memo titled,\n“Identified Sites, Proximity Sites/HCA, Class Location Determination Request For\nInformation – Prefacing Commentary.” In this document, ANR indicated that the\nCampground occupancy and frequency of usage were updated during the 2017\npopulation density survey. In addition, ANR noted in the document, that the\nCampground was built in the 1960s and that it had over 100 campsites and saw\nsignificant seasonal usage from April to October. ANR also stated during the inspection\nthat the Campground owner confirmed the occupancy of the Campground in April 2017.\nAs a result, ANR identified the Campground as an “identified site” on April 26,\n2017. ANR acknowledged during the inspection that there has been an issue with their\nprocess in identifying campgrounds as “identified sites.”\nPlayground North of the Gary D. Wright Elementary School\nANR failed to identify the playground north of the Gary D. Wright Elementary School,\nnear the 301, 1-301, and 2-301 pipeline segments as an “identified site.” ANR identified\nthe Gary D. Wright Elementary School as an identified site on September 6, 2007. Prior\nto 2017, only the Gary D. Wright Elementary School was used for HCA identification,\nhowever, in early 2017, ANR discovered that the playground was an “identified site”\nafter a review of construction plans for an expansion to the elementary school. During its\nreview, ANR confirmed that the playground was constructed in 2010 and therefore met\nthe criteria for an “identified site” at that time. However, ANR did not identify the\nplayground as an “identified site” until April 19, 2017. The Playground extended three\nexisting HCAs.\n7\n\n\n\n8. ANR provided a document during the inspection entitled “Identified Sites, Proximity\nSites/HCA, Class Location Determination Request For Information – Prefacing\nCommentary” that acknowledged that ANR had failed to identify these two (2)\n“identified sites” in accordance with §192.905(b)(1) until well after the construction of\nthe Gary D. Wright Elementary School playground in 2010 and the establishment of the\nTimber Campground by the latest ownership in 2011.\n§ 192.935 What additional preventive and mitigative measures must an operator\ntake?\n(a) General requirements. An operator must take additional measures beyond those\nalready required by Part 192 to prevent a pipeline failure and to mitigate the\nconsequences of a pipeline failure in a high consequence area. An operator must\nbase the additional measures on the threats the operator has identified to each\npipeline segment. (See § 192.917) An operator must conduct, in accordance with\none of the risk assessment approaches in ASME/ANSI B31.8S (incorporated by\nreference, see § 192.7), section 5, a risk analysis of its pipeline to identify additional\nmeasures to protect the high consequence area and enhance public safety. Such\nadditional measures include, but are not limited to, installing Automatic Shut-off\nValves or Remote Control Valves, installing computerized monitoring and leak\ndetection systems, replacing pipe segments with pipe of heavier wall thickness,\nproviding additional training to personnel on response procedures, conducting drills\nwith local emergency responders and implementing additional inspection and\nmaintenance programs.\nANR failed to consider additional measures to prevent a pipeline failure and to mitigate\nthe consequences of a pipeline failure in a HCA. ANR determined that installing\nAutomatic Shut-off Valves (ASV) or Remote Control Valves (RCV) would not be an\nefficient means of adding protection to an HCA in the event of a gas release, but did not\nundertake a compliant analysis to arrive at this determination. The regulation required\nANR to determine, through a risk analysis, if additional measures, such as ASVs or\nRCVs would provide additional measures to protect HCAs.\nThe factors to be considered in the analysis required by the regulation for installation of\nASVs or RCVs to protect HCAs in the event of a gas release is set forth in § 192.935(c),\nwhich provides as follows: “[i]f an operator determines based on a risk analysis, that an\nASV or RCV would be an efficient means of adding protection to a high consequence\narea in the event of a gas releases, an operator must install the ASV or RCV. In making\nthat determination, an operator must, at least, consider the following factors – swiftness\nof leak detection and pipe shutdown capabilities, the type of gas being transported,\noperating pressure, the rate of potential release, pipeline profile, the potential for ignition,\nand location of nearest response personnel.”\nPHMSA’s integrity management record inspection found that ANR failed to consider the\nfollowing factors - swiftness of leak detection and pipe shutdown capabilities, the type of\n8\n\n\n\ngas being transported, operating pressure, the rate of potential release, pipeline profile,\nthe potential for ignition, and location of nearest response personnel, in determining if an\nACV or RSV was an efficient means of protection to 108 HCAs in the Kankakee and\nWaukesha Areas.\nInstead, ANR determined that neither ASVs nor RCVs were an efficient means of adding\nprotection to its HCAs solely on the basis that the pipeline diameter was smaller than 12\ninches and did not consider any additional factors. By ANR failing to consider the\nadditional factors listed in the regulation, AN failed to comply with the requirements of\n§ 192.935(a).\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$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a\nrelated series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto exceed $2,090,022. We have reviewed the circumstances and supporting documentation\ninvolved for the above probable violation(s) and has recommended that you be preliminarily\nassessed a civil penalty of $252,900 as follows:\nItem number\nPENALTY\n3\n4\n$ 46,600\n$ 20,600\n6\n7\n$ 56,300\n$ 65,500\n8\n$ 63,900\nProposed Compliance Order\nWith respect to items 1 and 5 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to ANR Pipeline\nCompany. Please refer to the Proposed Compliance Order, which is enclosed and made a part of\nthis Notice.\n9\n\n\n\nWarning Item\nWith respect to item 2 we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct this item. Failure to do so may\nresult in additional enforcement action.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Compliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If\nyou believe that any portion of your responsive material qualifies for confidential treatment\nunder 5 U.S.C. 552(b), along with the complete original document you must provide a second\ncopy of the document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment 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,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that\nyou submit your correspondence to my office within 30 days from receipt of this Notice. This\nperiod may be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 3-2020-1012 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\nCopy: Wendy West, VP Safety & Quality & Compliance, 450 – 1st Street SW\nCalgary Alberta Canada, T2P 5H1, wendy_west@tcenergy.com\nErik Hughes, US Director of Compliance, TC Energy, erik hughes@tcenergy.com\n10\n\n\n\nLee Romack, US Director of Compliance, TC Energy, lee_romack@tcenergy.com\nKeith Coyle, Outside Counsel, TC Energy, KCoyle@babstcalland.com\n11\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 (ANR) a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of ANR with\nthe pipeline safety regulations:\n1. 2. 3. Regarding Item 1 of the Notice pertaining to fences at compressor stations having\nat least two gates openable from the inside without a key, ANR must:\ni. Within 90 days of receipt of the Final Order, provide evidence to the\nDirector, Central Region, that ANR corrected the fencing at the\nMarshfield compressor station so that at least two gates are openable\nfrom the inside without a key.\nRegarding Item Number 5 of the Notice pertaining to right-of-way patrolling,\nANR must:\ni. ii. iii. Within 60 days of receipt of the Final Order, survey the right-of-way\nof the 23 locations identified in the Notice for surface conditions that\nobstruct observation by means of aerial patrol.\nWithin 90 days of receipt of the Final Order, complete patrols of all\nlocations identified in the Notice using means appropriate to the\nsurface conditions.\nWithin 120 days of receipt of the Final Order, furnish to the Director,\nCentral Region, a report summarizing the results of i and ii, above.\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 Beshore, Director, Central\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n12\n\n320201012_Final Order_05122021_(17-157266S)_text.pdf\n\nMay 12, 2021\nVIA ELECTRONIC MAIL TO: francois poirier@tcenergy.com\nMr. Francois Poirier\nPresident and Chief Executive Officer\nTC Energy Corporation\n450 1st Street SW\nCalgary, Alberta T2P 5H1\nRe: CPF No. 3-2020-1012\nDear Mr. Poirer:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $252,900, and specifies actions that need to be taken to\ncomply with the pipeline safety regulations. When the civil penalty has been paid and the terms\nof the compliance order are completed, as determined by the Director, Central Region, this\nenforcement action will be closed. Service of the Final Order by electronic mail is effective\nupon the date of transmission 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\nEnclosures (Final Order and NOPV)\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Stanley Chapman III, Executive Vice President and President, U.S. Natural Gas\nPipelines, TC Energy, stanley_chapman_iii@tcenergy.com\nMr. Lee Romack, Director, U.S. Regulatory Compliance, TC Energy,\nlee_romack@tcenergy.com\nMs. Wendy West, Vice President, Safety, Quality & Compliance, TC Energy,\nwendy_west@tcenergy.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\n____________________________________\nIn the Matter of )\nANR Pipeline Company, ) CPF No. 3-2020-1012\na subsidiary of TC Energy Corp., )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn March 12, 2021, pursuant to 49 C.F.R. § 190.207, the Director, Central Region, Office of\nPipeline Safety (OPS), issued an Amended Notice of Probable Violation (Notice) to ANR\nPipeline Company (Respondent).1 The Notice proposed finding that Respondent had violated\nthe pipeline safety regulations in 49 C.F.R. Part 192 and proposed a civil penalty of $252,900.\nThe Notice also proposed certain measures to correct the violations. Respondent did not contest\nthe allegations of violation, corrective measures, or proposed civil penalty.\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. § 192.163(d) (Item 1) ─ Respondent failed to have a gate located\nwithin 200 feet (61 meters) of any compressor plant building that opened outward\nand, when occupied, was openable from the inside without a key;\n49 C.F.R. § 192.603(b) (Item 2) ─ Respondent failed to keep records necessary to\nadminister the procedures established under § 192.605;\n49 C.F.R. § 192.605(a) (Item 3) ─ Respondent failed to prepare and follow for\neach pipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response;\n49 C.F.R. § 192.609(a)-(f) (Item 4) ─ Respondent failed to immediately make a\nstudy to determine the present class location for the segment involved; the design,\nconstruction, and testing procedures followed in the original construction, and a\ncomparison of these procedures with those required for the present class location\nby the applicable provisions of Part 192; the physical condition of the segment to\n1 ANR Pipeline Company is a wholly-owned subsidiary of TC Energy Corporation.\n\n\n\nCPF No. 3-2020-1012\nPage 2\nthe extent it can be ascertained from available records; the operating and\nmaintenance history of the segment; the maximum actual operating pressure and\nthe corresponding operating hoop stress, taking pressure gradient into account, for\nthe segment of pipeline involved; and the actual area affected by the population\ndensity increase, and physical barriers or other factors which may limit further\nexpansion of the more densely populated area, whenever an increase in population\ndensity indicates a change in class location for a segment of an existing steel\npipeline operating at hoop stress that is more than 40 percent of SMYS, or\nindicates that the hoop stress corresponding to the established maximum\nallowable operating pressure for a segment of existing pipeline is not\ncommensurate with the present class location;\n49 C.F.R. § 192.705(a) (Item 5) ─ Respondent failed to have a patrol program to\nobserve surface conditions on and adjacent to the transmission line right-of-way\nfor indications of leaks, construction activity, and other factors affecting safety\nand operation;\n49 C.F.R. § 192.735(a) (Item 6) ─ Respondent failed to store flammable or\ncombustible materials in quantities beyond those required for everyday use, or\nother than those normally used in compressor buildings, a safe distance from the\ncompressor building;\n49 C.F.R. § 192.905(b)(1) (Item 7) ─ Respondent failed to identify an identified\nsite, for purposes of subpart O, from information the operator has obtained from\nroutine operation and maintenance activities and from public officials with safety\nor emergency response or planning responsibilities who indicate to the operator\nthat they know of locations that meet the identified site criteria; and\n49 C.F.R. § 192.935(a) (Item 8) ─ Respondent failed to conduct, in accordance\nwith one of the risk assessment approaches in ASME/ANSI B31.8S (incorporated\nby reference, see § 192.7), section 5, a risk analysis of its pipeline to identify\nadditional measures to protect the high consequence area and enhance public\nsafety.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a\ntotal civil penalty of $252,900.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.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, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\n\n\n\nCPF No. 3-2020-1012\nPage 3\nFailure to pay the $252,900 civil penalty will result in accrual of interest at the current annual\nrate in 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.\nCOMPLIANCE ACTIONS\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violations. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof ordered actions, Respondent may request that the Director close the case. Failure to comply\nwith this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nMay 12, 2021\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320201012_Closure Letter_11042021_(17-157266S)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Stanley_Chapman_iii@tcenergy.com,\nWendy_West@tcenergy.com, Erik_Hughes@tcenergy.com, and Lee_Romack@tcenergy.com\nNovember 4, 2021\nStanley Chapman\nExecutive VP and President US Natural Gas Pipelines\nTC Energy - ANR\n700 Louisiana Street\nSuite 700\nHouston, TX 77002\nstanley_chapman_iii@tcenergy.com\nRe: CPF 3-2020-1012\nDear Mr. Chapman:\nOn May 12, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto TC Energy Corporation a Final Order in the above-referenced case. This Order included a\nCompliance Order and Civil Penalty assessment. Based on our review of the documentation you\nprovided and 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,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nCopy: Wendy West, VP Safety & Quality & Compliance, 450 – 1st Street SW\nCalgary Alberta Canada, T2P 5H1, wendy_west@tcenergy.com\n\n320201012_NOPV PCP PCO_12042020_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: stanley chapman iii@tcenergy.com ,\nwendy_west@tcenergy.com , erik_hughes@tcenergy.com , and\nlee_romack@tcenergy.com\nDecem","truncated":true,"body_characters":70207}