{"operation":"document","citation":"CPF 320205032W","title":"NOVA CHEMICALS CORPORATION — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-12-09","effective_on":null,"summary":"CLOSED warning letter citing 195.507, 195.573(a)(1), 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205032w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205032w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205032w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205032W","body":"Warning Letter involving NOVA CHEMICALS CORPORATION. PHMSA's enforcement data identifies the cited regulations as 195.507,  195.573(a)(1),  195.583(a). The case was opened on 2020-12-09 and is reported as closed as of 2020-12-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205032W_Warning Letter_12092020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205032W/320205032W_Warning%20Letter_12092020.pdf\n\n320205032W_Warning Letter_12092020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205032W/320205032W_Warning%20Letter_12092020_text.pdf\n\n320205032W_Warning Letter_12092020_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Luis.Sierra@novachem.com and Arnel.Santos@novachem.com\nDecember 9, 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\nCPF 3-2020-5032W\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 (U.S.C.) inspected\nNOVA Chemicals (Canada), Ltd. procedures, records and field assets in Marysville, MI.\nAs a result of the inspection, it is alleged that you have committed probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item(s) inspected\nand the probable violation(s) are:\n1. 195.507 Recordkeeping.\nEach operator shall maintain records that demonstrate compliance with this\nsubpart.\n(a) Qualification records shall include:\n(1) Identification of qualified individual(s);\n(2) Identification of the covered tasks the individual is qualified to perform;\n(3) Date(s) of current qualification; and\n(4) Qualification method(s);\n(b) Records supporting an individual’s current qualification shall be\nmaintained while the individual is performing the covered task. Records of\nprior qualification and records of individuals no longer performing covers\ntasks shall be retained for a period of five years.\n(c) ) Protected Pipelines. You must do the following to determine whether\ncathodic protection, required by the subpart complies with §195.571:\n\n\n\nNOVA failed to follow their OQ plan in assessing their controllers in knowledge, skills and\nawareness of Abnormal Operating Conditions (AOC) for the three tasks defined for controllers\nin their OQ plan (Tasks 43.3, 43.4 and 63.4). As a result, NOVA failed to produce records that\ndocumented qualifications for the controllers. NOVA indicated they believed they met the\nrequirement because this training and qualification process was imbedded in their TIP process,\nwhich is their comprehensive training program.\nAn internal review and comparison of the NOVA OQ program and TIP plan for controllers\nresulted in NOVA discovering that their TIPS process did not meet the OQ plan requirements to\ndemonstrate knowledge, skill and awareness of (AOC) in a manner that could be documented.\nDuring the course of the inspection, NOVA amended their qualification process and\ndocumentation. They performed requalification of all controllers with the new process and\ndocumentation. No further action is required.\n2. 195.573 What must I do to monitor external corrosion control?\n(a) Protected Pipelines. You must do the following to determine whether cathodic\nprotection, required by this subpart complies with 195.571:\n(1) Conduct tests on the protected pipeline at least once each calendar year,\nbut 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 ever other\ncalendar years, but with intervals not exceeding 39 months.\nNOVA failed to perform a cathodic protection (CP) PS test at Sta 2+82 in 2017. The 2017\ninspection reading for station 2+82 CP reading was not recorded on the 2017 annual CP survey\ndocument on pipeline 20-12inch. In a follow up with the contractor, who performed the study,\nthey indicated they were not able to find the test point, but in 2018 the point was located and the\nreading was obtained. The readings in 2016 and 2018 met criteria.\n2\n\n\n\n3. 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows: Onshore – at\nleast once every 3 calendar years, but with intervals no exceeding 39 months.\nNOVA failed to perform atmospheric corrosion inspections on Line 16A in the DCP yard in\n2016, the year of the required inspection frequency. Upon a change in personnel responsible for\nthis inspection, NOVA indicated that the requirement for this inspection was not made available\nin the atmospheric corrosion preventative maintenance tracker, therefore the inspection was not\ncompleted.\nAn internal review and comparison of the NOVA OQ program and TIP plan for controllers\nresulted in NOVA discovering that their TIPS process did not meet the OQ plan requirements to\ndemonstrate knowledge, skill and awareness of (AOC) in a manner that could be documented.\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\nrelated series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per\nday, with a maximum penalty not to exceed $2,000,000 for a related series of violations.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF-3-2020-5032W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou 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).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\n3","truncated":false,"body_characters":6760}