{"operation":"document","citation":"CPF 320205018M","title":"NOVA CHEMICALS CORPORATION — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-10-08","effective_on":null,"summary":"CLOSED notice of amendment citing 195.446(b)(4), 195.452(h)(1), 195.555, 195.579(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205018m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205018m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205018m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205018M","body":"Notice of Amendment involving NOVA CHEMICALS CORPORATION. PHMSA's enforcement data identifies the cited regulations as 195.446(b)(4),  195.452(h)(1),  195.555,  195.579(c). The case was opened on 2020-10-08 and is reported as closed as of 2020-12-31. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205018M_Closure Letter_12312020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205018M/320205018M_Closure%20Letter_12312020.pdf\n\n320205018M_Closure Letter_12312020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205018M/320205018M_Closure%20Letter_12312020_text.pdf\n\n320205018M_Notice of Amendment_10082020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205018M/320205018M_Notice%20of%20Amendment_10082020.pdf\n\n320205018M_Notice of Amendment_10082020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205018M/320205018M_Notice%20of%20Amendment_10082020_text.pdf\n\n320205018M_Operator Response to Notice_10282020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205018M/320205018M_Operator%20Response%20to%20Notice_10282020.pdf\n\n320205018M_Closure Letter_12312020_text.pdf\n\nVIA ELECTRONIC MAIL TO: Luis.Sierra@novachem.com and Arnel.Santos@novachem.com\nDecember 31, 2020\nMr. Luis Sierra\nPresident and CEO\nNOVA Chemical (Canada), Ltd.\n1000 7th Ave. S.W.\nP.O. Box 2518\nCalgary, Alberta Canada T2P 5C6\nLuis.Sierra@novachem.com\nCPF 3-2020-5018M\nDear Mr. Sierra:\nOn July 12-18, 2019, a representative from the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an on-site pipeline safety\ninspection of NOVA Chemicals (Canada), Ltd’s (NOVA Chemical) procedures and records for operation\nand maintenance, control room management, operator qualification and integrity management in\nMarysville, Michigan. As a result of the inspection, NOVA Chemical was issued a Notice of Amendment\non October 8, 2020, which proposed amendment of your procedures.\nNOVA Chemical submitted its amended procedures on December 12, 2020. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment have\nbeen corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for your\ncooperation.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: Arnel Santos, Sr. Vice President Operations, NOVA Chemical (Canada), LTD.,\nArnel.Santos@novachem.com\n\n320205018M_Notice of Amendment_10082020_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Luis.Sierra@novachem.com and\nArnel.Santos@novachem.com\nOctober 8, 2020\nMr. Luis Sierra\nPresident and CEO\nNOVA Chemical (Canada), Ltd.\n1000 7th Ave. S.W.\nP.O. Box 2518\nCalgary, Alberta Canada T2P 5C6\nLuis.Sierra@novachem.com\nCPF 3-2020-5018M\nDear Mr.Sierra:\nOn July 12-18, 2019, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected NOVA\nChemicals (Canada), Ltd.’s procedures for operation and maintenance (O&M), control room\nmanagement (CRM), operator qualification (OQ) and integrity management (IM) in Marysville,\nMichigan.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nNOVA’s plans or procedures, as described below:\n1. §195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(h) What actions must an operator take to address integrity issues?\n\n\n\n(1) General requirements. An operator must take prompt actions to address\nall anomalous conditions the operator discovers through the integrity\nassessment or information analysis. In addressing all conditions, an operator\nmust evaluate all anomalous conditions and remediate those that could\nreduce a pipeline’s integrity. An operator must be able to demonstrate that\nthe remediation of the condition will ensure the condition is unlikely to pose a\nthreat to the long-term integrity of the pipeline. An operator must comply\nwith 195.422 when making a repair.\nNOVA’s Procedure 195.422 in its IM Plan is inadequate because it has not defined defect repair\ncriteria and acceptable repair methods for identified defects. Procedure 195.422 references\n§195.452 as it relates to scheduling remediation and immediate, 60-day and 180- day conditions\nas well as instructions related to how to make repairs on the pipeline. For example, Section 21 of\nProcedure 195.422 provides instructions on how to install a Clock Spring® (composite sleeve)\nfor a repair. Where the procedure falls short is in providing guidance on acceptable pipeline\nrepair methods.\nSection 195.3(c)(3) incorporates by reference, ASME/ANSI B31.4-2006, “Pipeline\nTransportation Systems for Liquid Hydrocarbons for Liquid Hydrocarbons and Other Liquids”\nfor §195.452(h). Chapter 7, Section 451.6 of ASME/SNSI B31.4-2006 states “When assessing\npipeline integrity each operator should develop criteria for evaluating anomalies identified\nthrough ILI methods, through visual inspection, or through other technical means.” It also then\ngoes on to say, “Defect repair criteria and repair methods are described below as a guideline for\npipeline operators to use when addressing anomalies discovered on their pipelines in this\nstandard.” Table 451.6.2(b)-1 and Table 451.6.2(b)-2, Acceptable Pipeline Repair Methods, of\nASME/ANSI B31.4-2006 lays out types of defects and acceptable repair methods for those\nidentified pipeline defects. For example, a composite sleeve is an acceptable repair method for\nexternal corrosion equal to or less than 80%, but it is not an acceptable method or a defective\ngirth weld. This differentiation as to what type of repair is acceptable for the type of defect is\nmissing in NOVA’s procedures. Without defect repair criteria and acceptable repair methods for\nthe identified defect, NOVA does not meet the requirement of §195.452(h) to comply with\n§195.422(b), Pipeline repairs, which states “No operator may use any pipe, valve or fitting for\nreplacement in repairing pipeline facilities, unless it is designed and constructions as required by\nthis part.”\nNOVA needs to modify its procedures to define defect repair criteria and acceptable repair\nmethods for identified defects.\n2. §195.579 What must I do to mitigate internal corrosion?\n(a) . . .\n(c) Removing pipe. Whenever you remove pipe from a pipeline, you must inspect\nthe internal surface of the pipe for evidence of corrosion. If you find internal\ncorrosion requiring corrective action under §195.585, you must investigate\ncircumferentially and longitudinally beyond the removed pipe (by visual\n2\n\n\n\nexamination, indirect method or both) to determine whether additional corrosion\nrequiring remedial action exists in the vicinity of the removed pipe.\nNOVA’s Procedure 195.569, Internal and External Examination for Exposed Pipe, in its O&M\nmanual is inadequate because it only provides instruction and guidance on how to inspect for\nexternal corrosion. There is no mention of examination for internal corrosion. Furthermore,\nNOVA Procedure 195.579 Internal Corrosion paraphrases directly from federal regulation with\nno additional guidance for how to inspect the pipe, how to record and document the inspection\nand any findings, and directions for repairs if needed.\nNOVA needs to modify both procedures 195.569 and 195.579 to address the deficiencies\ndescribed above.\n3. §195.446 Control Room Management\n(a) . . .\n(b) Roles and Responsibilities. Each operator must define the roles and\nresponsibilities of a controller during normal, abnormal, and emergency operating\nconditions. To provide for a controller’s prompt and appropriate response to\noperating conditions an operator must define each of the following:\n(1) . . .\n(4) A method of recording controller shift-changes and any hand-over of\nresponsibility between controllers.\nNOVA’s procedure for recording controller shift-changes and hand-over of responsibility\nbetween controllers is inadequate because it fails to provide the method of recording the\ndiscussion between controllers, pipeline conditions, physical asset changes, emergency\nconditions and other items identified in Section 5 of API 1168 (incorporated by reference in\n§195.446(c)(5)). Section 4 of NOVA’s CRM Plan provides the procedures to comply with\n195.446 Control Room Management. Within Section 4, operating procedures CO-00011 and\nCO-00013, as well as a shift turnover reference established for use at shift turnovers, are\nprovided as reference and additional guidance for shift turnover. While a review of these\nprocedures would provide general guidance of how to perform a shift change between\ncontrollers, the procedures does not include specifics for the method of recording controller shift\nchanges and what was handed over from the leaving controller to the arriving controller.\nAs a recommendation from the 2017 CRM inspection, NOVA implemented an activity task key\nin the supervisory control and data acquisition that logs the event “TRANSFER CONTROL TO\nNEW CONTROLLER”. This new feature provides a time stamp record of the transfer of system\ncontrol from one controller to another. This required action is not described in procedure in\neither Section 4 of the CRM plan or CO-00011 or CO-00013 (CO-00011 is a training procedure\nfor shift change). Since this is the official time stamp of control transfer, it needs to be included\nin all associated procedures.\n3\n\n\n\nNOVA also includes in Section 4 of the CRM Plan a “Turnover Reference” that is used as\nsuggested topics controllers. These topics relate to Section 5 of API 1168 as required by\n§195.446(c)(5). TIPS Learning Guide Resources OO-00011 provides details of what to include\nduring shift turnover. However, there is no process defining the method of recording what\nexactly was discussed at shift turnover and what the pipeline conditions were at the time of\nturnover. This lack of method also results in no record of the content of the exchange.\nNOVA indicated that a white board “shift starter board” is used during shift change to guide the\ndiscussion. The controllers may take pictures of these to document the conditions. This activity\nis not defined in any procedures. Additionally, it was not evident that the “shift starter board”\nmet the requirements of implementing API 1168 Section 5.\nNOVA needs to amend procedures to include their methods of recording shift-change practices\nand the content and detail of discussions between the controllers during shift change that\nproduces a record for future inspection.\n4. §195.555 What are the qualifications for supervisors?\nYou must require and verify that supervisors maintain a thorough knowledge of\nthat portion of the corrosion control procedures established under §195.402(c)(3)\nfor which they are responsible for insuring compliance.\nNOVA did not have a procedure that require and verify that supervisors maintain a thorough\nknowledge of corrosion control procedures established under §195.402(c)(3) for which they are\nresponsible. A result of having no procedure, NOVA has not developed criteria to establish the\nlevels of knowledge of corrosion control procedures for its supervisors, as well as a method to\nverify a supervisor’s compliance with the established criteria.\nNOVA needs to develop a procedure to comply with §195.555, which includes criteria to\nestablish levels of knowledge and experience of corrosion control procedures for its supervisors\nand a method to verify a supervisor’s compliance with the established criteria.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart 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. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\n4\n\n\n\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n30 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested that NOVA Chemicals (Canada), Ltd. maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Allan Beshore, Director, Central Region, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 3-2020-5018M and, for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Arnel Santos, Sr. Vice President Operations, NOVA Chemical (Canada), Ltd., 1000 7th\nAve. S.W., P. O. Box 2518, Calgary, Alberta Canada T2P 5C6,\nArnel.Santos@novachem.com\n5","truncated":false,"body_characters":14290}