# KINDER MORGAN UTOPIA LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 32021042NOPV
- **title:** KINDER MORGAN UTOPIA LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-05-24
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.310(a), 195.402(a), 195.412(a), 195.49.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021042nopv.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021042nopv.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021042nopv
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/32021042NOPV
**body:**

Notice of Probable Violation involving KINDER MORGAN UTOPIA LLC. PHMSA's enforcement data identifies the cited regulations as 195.310(a),  195.402(a),  195.412(a),  195.49. The case was opened on 2021-05-24 and is reported as closed as of 2022-09-12. Proposed civil penalty: $17,200. Assessed civil penalty: $0. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

32021042NOPV_Closure Letter_09122022_(21-209923).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_Closure%20Letter_09122022_(21-209923).pdf

32021042NOPV_Closure Letter_09122022_(21-209923)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_Closure%20Letter_09122022_(21-209923)_text.pdf

32021042NOPV_Final Order_10132021_(21-209923).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_Final%20Order_10132021_(21-209923).pdf

32021042NOPV_Final Order_10132021_(21-209923)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_Final%20Order_10132021_(21-209923)_text.pdf

32021042NOPV_Operator Response to Notice_06232021_(21-209923).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_Operator%20Response%20to%20Notice_06232021_(21-209923).pdf

32021042NOPV_PCP PCO_05242021_(21-209923).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_PCP%20PCO_05242021_(21-209923).pdf

32021042NOPV_PCP PCO_05242021_(21-209923)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021042NOPV/32021042NOPV_PCP%20PCO_05242021_(21-209923)_text.pdf

32021042NOPV_Final Order_10132021_(21-209923)_text.pdf

October 13, 2021
VIA ELECTRONIC MAIL TO: tom martin@kindermorgan.com
Tom Martin
President, Gas Pipelines
Kinder Morgan, Inc.
1001 Louisiana Street, Suite 1000
Houston, Texas 77002
Re: CPF No. 3-2021-042-NOPV
Dear Mr. Martin:
Enclosed please find the Final Order issued in the above-referenced case. It withdraws one of
the allegations of violation, makes other findings of violation, and specifies actions that need to
be taken by Kinder Morgan Utopia, LLC to comply with the pipeline safety regulations. When
the terms of the compliance order have been completed, as determined by the Director, Central
Region, this enforcement action will be closed. Service of the Final Order by electronic mail is
effective upon the date of transmission as provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Kenneth Grubb, Chief Operating Officer, Natural Gas Pipelines, Kinder Morgan,
kenneth_grubb@kindermorgan.com
Mr. Jaime Hernandez, Director, Engineering, Codes and Compliance, Kinder Morgan,
jaime_hernandez@kindermorgan.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Kinder Morgan Utopia, LLC, ) CPF No. 3-2021-042-NOPV
a subsidiary of Kinder Morgan, Inc., )
)
Respondent. )
____________________________________)
FINAL ORDER
From March 4, 2019, through September 27, 2019, pursuant to 49 U.S.C. § 60117,
representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office
of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and
records of Kinder Morgan Utopia, LLC (KM Utopia or Respondent) in Ohio and Michigan,
specifically, KM Utopia’s roughly 266 miles of pipeline that transports natural gas liquids,
primarily ethane, from Harrison County, Ohio through Detroit, Michigan and across the Detroit
River into Ontario, Canada.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated May 24, 2021, a Notice of Probable Violation, Proposed Civil Penalty, and
Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice
proposed finding that KM Utopia had committed two violations of 49 C.F.R. Part 195, proposed
assessing a civil penalty of $17,200 for the alleged violations, and proposed ordering Respondent
to take certain measures to correct the alleged violations. The Notice also included an additional
two warning items pursuant to 49 C.F.R. § 190.205, which required no further action, but warned
the operator to correct the probable violations or face possible future enforcement action.
KM Utopia responded to the Notice by letter dated June 23, 2021 (Response). Respondent
contested one of the allegations, offered additional information in response to the Notice, and
requested that the proposed civil penalty be eliminated. Respondent did not request a hearing
and therefore has waived its right to one.
FINDINGS OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.310(a), which states:



CPF No. 3-2021-042-NOPV
Page 2
§ 195.310 Records.
(a) A record must be made of each pressure test required by this subpart,
and the record of the latest test must be retained as long as the facility tested
is in use.
The Notice alleged that Respondent violated 49 C.F.R. § 195.310(a) by failing to have complete
pressure test records. At the time of inspection, KM Utopia provided pressure test records for its
pipeline segments 1a, 1b, 2ab, 2c, 2d, 2e1, and 2e2 that were either missing information required
by § 195.310(b), incomplete according to Respondent’s procedure L-O&M1600 Section 8.1e, or
both. Specifically, the Notice alleged that KM Utopia failed to provide temperature recorder
calibration certificates and associated records for segment 1b and pressure recorder calibration
certificates and associated records for segment 2ab, as required by § 195.310(b). Further, the
Notice alleged Respondent’s “Hydrotest Test Report”1 records for segments 1a, 1b, 2ab, 2c, 2d,
2e1, and 2e2 failed to identify the serial numbers of the deadweight tester and the pressure and
temperature chart recorder as their procedures required. KM Utopia’s records for segments 2c,
2d, 2e1, and 2e2 also indicated the use of a pressure recorder but no corresponding pressure
calibration records were submitted by the Respondent.
In its Response, KM Utopia contested PHMSA’s allegations and noted that, while all of the
relevant pressure test information had not been provided during the inspection, the Respondent
had records of nearly all of the information required to comply with § 195.310(a) at that time.
Respondent asserted that, if PHMSA had more specifically identified its concerns, it would have
been able to provide PHMSA with the records needed to show compliance. KM Utopia also
noted that it had been able to acquire the one record it was missing from a vendor.2 As part of its
Response, KM Utopia provided PHMSA with the additional records.
Upon review of these documents, the Regional Director submitted a written evaluation of the
response material pursuant to § 190.209(b)(7) confirming the records evidence compliance with
the requirements of § 195.310(a). Accordingly, after considering all of the evidence, I withdraw
the alleged violation.
In the future, Respondent is reminded that it must provide all reasonable assistance during an
inspection and must make records and information available when requested by PHMSA to
facilitate a compliance review. Respondent may not wait until enforcement has commenced
before providing records previously requested by PHMSA as evidence of compliance.
Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.412(a), which states:
§ 195.412 Inspection of rights-of-way and crossings under navigable
1 The Notice describes these records as the “Hydrotest Test Reports” while the Response describes these records as
“Hydrostatic Test Reports.” For consistency, I will use the term “Hydrotest Test Reports.” Compare Notice, at 3,
with Response, at 4.
2 KM Utopia conceded that it did not realize that a vendor had failed to provide the company with the temperature
recorder calibration certificate for segment 1b until after receipt of the Notice. See Response, at 4–5.



CPF No. 3-2021-042-NOPV
Page 3
waters.
(a) Each operator shall, at intervals not exceeding 3 weeks, but at least
26 times each calendar year, inspect the surface conditions on or adjacent
to each pipeline right-of-way. Methods of inspection include walking,
driving, flying or other appropriate means of traversing the right-of-way.
The Notice alleged that Respondent violated 49 C.F.R. § 195.412(a) by failing to use appropriate
methods to inspect the surface conditions on or adjacent to certain pipeline rights-of-way.
Specifically, the Notice alleged that KM Utopia failed to employ appropriate methods for
inspecting the surface conditions on or adjacent to the pipeline right-of-way at one location in
PHMSA Unit 84290 and at eight locations in PHMSA Unit 89739.3 PHMSA inspectors
reviewed Respondent’s aerial patrol information for PHMSA Unit 849290 and walked portions
of the right-of-way in PHMSA Unit 89739 and noted these locations as areas where aerial patrol
was inappropriate but where KM Utopia was unable to provide records that it had employed an
alternative appropriate means of inspecting the surface conditions.
In its Response, KM Utopia did not contest this allegation of violation. Accordingly, after
considering all of the evidence, I find that Respondent violated 49 C.F.R. § 195.412(a) by failing
to use appropriate methods to inspect the surface conditions on or adjacent to pipeline rights-of-
way at one location in PHMSA Unit 84290 and at eight locations in PHMSA Unit 89739.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.4
In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I
must consider the following criteria: the nature, circumstances, and gravity of the violation,
including adverse impact on the environment; the degree of Respondent’s culpability; the history
of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue
doing business; the good faith of Respondent in attempting to comply with the pipeline safety
regulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.
In addition, I may consider the economic benefit gained from the violation without any reduction
because of subsequent damages, and such other matters as justice may require. The Notice
3 The locations were in PHMSA Unit 84290 near Ridge Road and Strasburg Bolivar Road and in PHMSA Unit
89739 at Sandusky River crossing, at Wolfe Creek crossing, at Muskellunge Creek, at the Rock Quarry near the
marker that still referenced Plains Pipeline at the time of inspection, at the railroad crossing near Mile Post 169.1,
near 1031 Kieswetter Road in Holland, Ohio, at Oak Valley road, and near 8716 Willow Boulevard in Sylvania,
Ohio. See Notice, at 4–5.
4 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.



CPF No. 3-2021-042-NOPV
Page 4
proposed a total civil penalty of $17,200 for the violations cited above.
Item 2: The Notice proposed a civil penalty of $17,200 for Respondent’s alleged violation of
49 C.F.R. § 195.310(a). Since this alleged violation has been withdrawn, the proposed penalty is
not assessed.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 4 in the Notice for violation of
49 C.F.R. § 195.412(a). Under 49 U.S.C. § 60118(a), each person who engages in the
transportation of hazardous liquids or who owns or operates a pipeline facility is required to
comply with the applicable safety standards established under chapter 601. Pursuant to the
authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the
following actions to ensure compliance with the pipeline safety regulations applicable to its
operations:
1. With respect to the violation of § 195.412(a) (Item 4), Respondent must submit a
plan and schedule of action that includes clearing the right-of-way and for using other
methods of inspection when clearing is not possible or has not yet occurred for the
identified locations. The plan must include identifying sections of pipeline right-of-
way throughout the system that are overgrown and will remain overgrown for a
period of time while awaiting clearing or will not be cleared. For these sections
identified in Item 4, if KM Utopia has already performed clearing actions since the
time of the inspection and receipt of this Final Order, the records associated with this
action must be provided as part of the plan submitted. KM Utopia must use an
alternate means of inspection, as opposed to flying, to comply with inspection of the
surface conditions on or adjacent to the pipeline right-of-way as required by
§ 195.412 until cleared. KM Utopia must provide the plan and action schedule within
30 days from the date of receipt of the Final Order to the Director, Central Region.
KM Utopia must implement the plan and schedule within 120 days from the date of
receipt of the Final Order. Inspection records for the cleared and uncleared locations
in Item 4 shall be provided to the Director, Central Region for six months following
receipt of the Final Order.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
PHMSA requests that Respondent maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to the Director. It is
requested that these costs be reported in two categories: (1) total cost associated with
preparation/revision of plans, procedures, studies, and analyses; and (2) total cost associated with
replacements, additions, and other changes to pipeline infrastructure.
Failure to comply with this Order may result in the administrative assessment of civil penalties



CPF No. 3-2021-042-NOPV
Page 5
not to exceed $200,000, as adjusted for inflation (see 49 C.F.R. § 190.223), for each violation for
each day the violation continues or in referral to the Attorney General for appropriate relief in a
district court of the United States.
WARNING ITEMS
With respect to Items 1 and 3, the Notice alleged probable violations of Part 195, but identified
them as warning items pursuant to § 190.205. The warnings were for:
49 C.F.R. § 195.49 (Item 1) ─ Respondent’s alleged failure to comply with the
DOT Form PHMSA F 7000-1.1 instructions by failing to report accurate HCA-
related mileage in 2019 and by reporting no commercially navigable river mileage
despite the pipeline crossing the Detroit River, a commercially navigable river;
and
49 C.F.R. § 195.402(a) (Item 3) ─ Respondent’s alleged failure to follow its
written procedures by failing to conduct the 2018 annual review of its Emergency
Response Plan as required under § 195.402, KM Utopia’s procedure L-O&M-003
titled “Procedure Review,” and its Emergency Response Plan.
KM Utopia requested withdrawal of Item 3, because it contends that PHMSA has
mischaracterized the requirements of KM Utopia’s procedures and § 195.402(a). Under
§ 190.205, PHMSA does not adjudicate warning items to determine whether a probable violation
occurred. If OPS finds a violation of any of these items in a subsequent inspection, Respondent
may be subject to future enforcement action.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this
Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and
meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective
action, remain in effect unless the Associate Administrator, upon request, grants a stay.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
October 13, 2021
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

32021042NOPV_Closure Letter_09122022_(21-209923)_text.pdf

VIA ELECTRONIC MAIL TO: tom martin@kindermorgan.com;
jaime_hernandez@kindermorgan.com
September 12, 2022
Tom Martin
President, Gas Pipelines
Kinder Morgan, Inc.
1001 Louisiana St., Suite 1000
Houston, TX 77002
Re: CPF 3-2021-042-NOPV
Dear Mr. Martin:
On October 13, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Kinder Morgan Utopia, LLC (KM Utopia) a Final Order in the above-referenced case.
This Order included a Compliance Order requirement to take corrective actions on your pipeline
system. Based on our review of the documentation you provided, it has been determined that KM
Utopia has complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Gregory A. Ochs
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
cc: Jaime Hernandez, Director – Engineering: Codes and Standards,
jaime_hernandez@kindermorgan.com
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