{"operation":"document","citation":"CPF 32021038WL","title":"CALIBER BEAR DEN INTERCONNECT LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-06-07","effective_on":null,"summary":"CLOSED warning letter citing 195.214(a), 195.214(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021038wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021038wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021038wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021038WL","body":"Warning Letter involving CALIBER BEAR DEN INTERCONNECT LLC. PHMSA's enforcement data identifies the cited regulations as 195.214(a),  195.214(b). The case was opened on 2021-06-07 and is reported as closed as of 2021-06-07. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021038WL_Warning Letter_06072021_(21-210458).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021038WL/32021038WL_Warning%20Letter_06072021_(21-210458).pdf\n\n32021038WL_Warning Letter_06072021_(21-210458)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021038WL/32021038WL_Warning%20Letter_06072021_(21-210458)_text.pdf\n\n32021038WL_Warning Letter_06072021_(21-210458)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: dwerth@calibermidstream.com and\ncbutero@calibermidstream.com\nJune 7, 2021\nDaniel Werth\nChief Executive Officer\nCaliber Midstream\nCaliber Bear Den Interconnect LLC\n950 – 17th Street, Suite 1000,\nDenver, CO 80202\nCPF 3-2021-038-WL\nDear Mr. Werth:\nFrom March 18, 2019 through August 1, 2019, 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 your Caliber Bear Den Interconnect LLC\n(CBDI) pipeline facilities located in North Dakota, near Watford City. This inspection also\nreviewed associated plans, procedures, and records, some of which were located in the Caliber\nMidstream headquarters and office located in Denver, CO.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n\n\n\n1. §195.214 Welding procedures.\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, Appendix\nA or Appendix B of API Std 1104 (incorporated by reference, see §195.3), or Section\nIX of the ASME Boiler and Pressure Vessel Code (ASME BPVC) (incorporated by\nreference, see §195.3). The quality of the test welds used to qualify the welding\nprocedures must be determined by destructive testing.\n(b) Each welding procedure must be recorded in detail, including the results of the\nqualifying tests. This record must be retained and followed whenever the procedure\nis used.\nCBDI failed to have a welding procedure qualified under section 5, section 12, Appendix A or\nAppendix B of API Std 1104 or Section IX of the ASME Boiler and Pressure Vessel Code as\nrequired by § 195.214(a) for the 52,000 psi (also known as X52) material used in CBDI’s\npipeline during initial pipeline construction.\nAt the time of the inspection, a welding procedure qualification record (Procedure Specification\nPE-6010/8010-API-WP1) had identified that it was to be used on pipe that was 42,000 psi (X42),\ndiameter 12\", with a wall thickness (wt) greater than 3/4\" (later clarified to be less than\n¾”). However, Mill specifications reviewed by PHMSA showed that in addition to X42\nmaterial, some X52 material had also been received and used. The operator indicated that due to\nmaterial shortages prior to and during construction, they accepted the X52 material in place of\nthe X42 material where needed. A welding procedure for X52 material was not found. After\nnotification by PHMSA, the operator contracted for and tested a procedure for welding the X52\nmaterial with the same welding parameters used for the X42 material, and thus verified welding\nduring construction was acceptable (see Procedure Specification No. PE-6010/8010-API-WP2,\nRevision No. 2, dated August 14, 2019).\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. We\nhave reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2021-038-WL. Be advised that all material you submit in response to this enforcement\n2\n\n\n\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\ncc: Ms. Carol Butero, Director of Regulatory, Safety and Compliance, Caliber Midstream,\ncbutero@calibermidstream.com\n3","truncated":false,"body_characters":5598}