{"operation":"document","citation":"CPF 32021045NOPV","title":"TALLGRASS POWDER RIVER GATEWAY, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-05","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.404(c)(3), 195.406(b), 195.452(l)(1)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021045nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021045nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021045nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021045NOPV","body":"Notice of Probable Violation involving TALLGRASS POWDER RIVER GATEWAY, LLC. PHMSA's enforcement data identifies the cited regulations as 195.404(c)(3),  195.406(b),  195.452(l)(1)(ii). The case was opened on 2021-11-05 and is reported as closed as of 2022-10-12. Proposed civil penalty: $58,400. Assessed civil penalty: $25,920. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021045NOPV_Closure Letter_10122022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Closure%20Letter_10122022_(20-172259).pdf\n\n32021045NOPV_Closure Letter_10122022_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Closure%20Letter_10122022_(20-172259)_text.pdf\n\n32021045NOPV_Consent Agreement and Order_03292022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Consent%20Agreement%20and%20Order_03292022_(20-172259).pdf\n\n32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Consent%20Agreement%20and%20Order_03292022_(20-172259)_text.pdf\n\n32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 1)_01042022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Prelim%20Stmnt%20of%20Issues%20(Part%201)_01042022_(20-172259).pdf\n\n32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Prelim%20Stmnt%20of%20Issues%20(Part%202)_01042022_(20-172259).pdf\n\n32021045NOPV_PCP PCO_11052021_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PCP%20PCO_11052021_(20-172259).pdf\n\n32021045NOPV_PCP PCO_11052021_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PCP%20PCO_11052021_(20-172259)_text.pdf\n\n32021045NOPV_PHC Hearing Canceled_06022022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PHC%20Hearing%20Canceled_06022022_(20-172259).pdf\n\n32021045NOPV_PHC Hearing Canceled_06022022_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PHC%20Hearing%20Canceled_06022022_(20-172259)_text.pdf\n\n32021045NOPV_PHC Hearing Scheduled_02022022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PHC%20Hearing%20Scheduled_02022022_(20-172259).pdf\n\n32021045NOPV_PHC Hearing Scheduled_02022022_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PHC%20Hearing%20Scheduled_02022022_(20-172259)_text.pdf\n\n32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf\n\nMarch 29, 2022\nVIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com\nMr. William Moler\nChief Executive Officer\nTallgrass Powder River Gateway, LLC\n4200 W. 115th St. Suite 350\nLeawood, Kansas 66211\nCPF No. 3-2021-045-NOPV\nDear Mr. Moler:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Tallgrass\nPowder River Gateway, LLC (Tallgrass), which was executed on March 25, 2022. Service of\nthe Consent Order and Consent Agreement by electronic mail is deemed effective upon the date\nof transmission and acknowledgement of receipt, or as otherwise provided under 49 C.F.R.\n§ 190.5.\nSincerely,\nAlan K Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Agreement and Consent Order\nCc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMs. Catherine Little, outside counsel for Tallgrass, catherine.little@troutman.com\nMs. Jennifer Eckels, Compliance Manager, Tallgrass, jennifer.eckels@tallgrass.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 )\nTallgrass Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated November 5, 2021, the Pipeline and Hazardous Materials Safety Administration,\nOffice of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice) to Tallgrass Powder River Gateway, LLC\n(Tallgrass or Respondent).\nIn response to the Notice, Respondent did not contest Items 1 or 2, requested a reduction in the\nproposed civil penalty for Item 2, and requested a hearing on Item 3, and asked for the\nopportunity to meet informally with PHMSA to discuss the issues raised (Response). Respondent\nand PHMSA (the Parties) subsequently met on several occasions to discuss the issues raised in\nthe Response. As a result of those discussions and without admission, Respondent has agreed to\nwithdraw its hearing request and accept the findings of violation for Items 2 and 3 of the Notice,\nsubject to the clarification for Item 3 as set forth below, pay a reduced civil penalty in the\namount of $25,920 for Item 2, and undertake certain corrective measures.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nOrder. Tallgrass is hereby ordered to comply with the terms of the Consent Agreement, effective\nimmediately.\nPursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties as set forth in 49 C.F.R. § 190.223.\nThe terms and conditions of this Consent Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMarch 29, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\nTallgrass Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom August 2, 2020, to October 25, 2020, 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 Tallgrass Powder River Gateway, LLC’s\n(Tallgrass or Respondent) records and facilities in Lakewood, Colorado.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated November 5, 2021, a Notice of Probable Violation, Proposed Civil Penalty and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nalleged that Respondent committed probable violations of two provisions of 49 C.F.R. Part 195\n(Items 2 and 3), proposed ordering Respondent to take certain measures to correct the alleged\nviolations, and pay a proposed civil penalty in the amount of $58,400 associated with one item.\nAnother item (Item 1) was brought as a warning requiring no further action by Tallgrass.\nIn response to the Notice, Respondent did not contest Items 1 or 2, requested a reduction in the\nproposed civil penalty for Item 2, and requested a hearing on Item 3, and asked for the\nopportunity to meet informally with PHMSA to discuss the issues raised (Response). Respondent\nand PHMSA (the Parties) subsequently met on several occasions to discuss the issues raised in\nthe Response. As a result of those discussions and without admission, Respondent has agreed to\nwithdraw its hearing request and accept the findings of violation for Items 2 and 3 of the Notice,\nsubject to the clarification for Item 3 as set forth below, pay a reduced civil penalty in the\namount of $25,920 for Item 2, and undertake certain corrective measures.\nHaving agreed that settlement of this enforcement action will avoid further administrative\nproceedings or litigation and will serve the public interest by promoting safety and protection of\nthe environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of Respondent\nand PHMSA, the Parties hereby agree as follows:\n1\n\n\n\nI. General Provisions:\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced hazardous liquid pipeline facilities are subject to the\njurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations\nand administrative orders issued thereunder. For purposes of this Agreement, Respondent\nacknowledges that it received proper notice of PHMSA's action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement\n3. Respondent consents to the issuance of the Consent Order, and hereby waives\nany further procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except as set forth herein.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons otherwise\nbound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work\nplans and schedules to all of Respondent’s officers, employees, and agents whose duties might\nreasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings\nrelating to settlement other than those expressly contained in this Agreement, except that the\nterms of this Agreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the PHMSA Central Regional Director no later than 60 days after the transfer occurs.\n2\n\n\n\nUpon issuance of the Consent Order, the Parties agree to the following terms.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any\nthird party not party to this Agreement. The U.S. Department of Transportation is not liable for\nany injuries or damages to persons or property arising from acts or omissions of Respondent or\nits officers, employees, or agents carrying out the work required by this Agreement.\nRespondent agrees to hold harmless the U.S. Department of Transportation, its officers,\nemployees, agents, and representatives from any and all causes of action arising from any acts\nor omissions of Respondent or its contractors in carrying out any work required by this\nAgreement.\n10. Agreement.\nRespondent neither admits nor denies any allegation or conclusion in the Notice\nor this Agreement but agrees for purposes of this Agreement to comply with the terms of this\n11. II. Warning Item:\n12. Item 1: 49 C.F.R. § 195.404(c)(3): The Notice alleged that Respondent failed to\nmaintain inspection records for a single calendar year related to the maintenance and testing of\ntwo overpressure safety devices as required. Respondent maintained inspection records for the\ntwo overpressure safety devices for the other time period requested and has taken steps to\ncorrect the underlying causes of the missing records. This item was brought as a warning\nrequiring no further action by Respondent. Respondent did not contest this Warning Item. This\nWarning Item does not constitute a finding of violation for any purpose, and no further action by\nRespondent is necessary to achieve compliance.\nIII. Findings of Violation:\n13. Item 2: 49 C.F.R. § 195.406(b): The Notice alleged three instances where\nRespondent failed to provide adequate controls and protective equipment to ensure that the\npressure in its pipelines, during surges or other variations from normal operation, did not exceed\n110 percent of the established maximum operating pressure. Respondent did not contest this\nallegation of violation given that the three instances were self-identified, Respondent took steps\nto prevent their recurrence, and voluntarily disclosed them to PHMSA in advance of the\ninspection. As such, PHMSA finds a violation of 49 C.F.R. § 195.406(b). This violation may\nbe considered by PHMSA as a prior offense in any future PHMSA enforcement action taken\nagainst Respondent.\n14. Item 3: 49 C.F.R. § 195.452(l)(1)(ii): The Notice alleged that Respondent failed\nto maintain records for review during an inspection of actions taken to mitigate the threat of\ndead legs at the Guernsey and Wyoming terminals. During the informal meetings between the\n3\n\n\n\nParties in March 2022, Respondent provided records confirming the preventative and mitigative\nmeasures it took at the relevant facilities for 2019 and 2020. Respondent neither admits nor\ndenies the allegation of violation for this item given the existence of the records at the time of\ninspection, but, for purposes of settlement, agrees to accept the finding of violation. As such,\nPHMSA finds a violation of 49 C.F.R. § 195.452(l)(1)(ii) for not making records available at the\ntime of inspection. This violation may be considered by PHMSA as a prior offense in any\nfuture PHMSA enforcement action taken against Respondent.\nIV. Civil Penalty:\n15. Item 2: The Notice proposed assessing a civil penalty in the amount of $58,400\nfor Item 2. In its Response, and during the informal meetings between the Parties, Respondent\nprovided additional information related to measures it undertook prior to the inspection after\ndiscovering, and self-reporting, the noncompliance. Based on the information provided,\nPHMSA agrees to reduce the proposed civil penalty under the culpability factor. As such,\nRespondent shall pay a reduced civil penalty in the amount of $25,920, to be paid in full no later\nthan 30 days from the Effective Date of this Agreement.\nV. Compliance Order:\n16. Item 2: The Notice proposed certain compliance order actions to address the\nnon-compliance alleged in the Notice. Respondent did not contest the Proposed Compliance\nOrder, but requested clarification that the compliance order actions apply to only the Powder\nRiver Gateway pipeline, and that Respondent may prevent MOP exceedance using a range of\n“adequate controls and protective equipment,” allowed under § 195.406(b), and not only surge\nrelief devices as specified in the Proposed Compliance Order. PHMSA agrees with\nRespondent’s requests, and clarifies that the proposed actions set forth in this paragraph are\nlimited to the Powder River Gateway pipeline, and that Respondent may use any means of\nadequate and protective equipment allowed under § 195.406(b) to prevent MOP exceedance.\nAs such, Respondent must undertake the following corrective measures:\n(a) Respondent must evaluate the Powder River Gateway pipeline to ensure that its\npipeline system is protected from overpressure using a means of surge protection,\nsuch as installing surge relief devices as necessary, or any other appropriate\nmethod allowable by the regulation.\n(b) In its evaluation, Respondent must prioritize facilities with repeated occurrences\nof surge pressure events. Respondent must, within 60 days of the Effective Date\nof this Agreement, provide the results of the evaluation, and a schedule for\ncorrective action to the Director, PHMSA Central Region.\n17. Item 3: The Notice proposed certain compliance order actions to address the\nnon-compliance alleged in the Notice. Respondent must, without admitting or denying the\nallegation of violation, perform the following corrective measures:\n(a) Respondent must, within 60 days of the Effective Date of this Agreement,\nprovide to the Director, PHMSA Central Region, a comprehensive list of\n4\n\n\n\nfacilities documenting the specific location of all “dead leg” pipe segments in\nHCA facilities on the Powder River Gateway pipeline. The list must include, to\nthe extent available, relevant attributes of each segment (i.e., age of pipe, wall\nthickness, coating type)).\n(b) Additionally, Respondent must include an outline of planned preventive\nmaintenance activities for each segment for the 12 months after the Effective\nDate of this Agreement.\nVI. Enforcement:\n18. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $225,134 per violation for each day the violation continues\nand referral of the case to the Attorney General for judicial enforcement, if PHMSA determines\nthat Respondent is not complying with the terms of this Agreement in accordance with\ndeterminations made by the Director, or if appealed, in accordance with decisions of the\nAssociate Administrator. The maximum civil penalty amounts are adjusted annually for\ninflation. See 49 C.F.R. § 190.223.\nVII. Dispute Resolution:\n19. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including but not limited to any decision of the Director. If\nRespondent and the Director are unable to informally resolve the dispute within 15 calendar days\nafter the dispute is first raised, in writing, to the Director, Respondent may submit a written\nrequest for a determination resolving the dispute from the Associate Administrator for Pipeline\nSafety, PHMSA. Such request must be made in writing and provided to the Director, counsel for\nthe Central Region, and to the Associate Administrator for Pipeline Safety, no later than 10\ncalendar days from the 15 day deadline for informal resolution referenced in this paragraph.\nAlong with its request, Respondent must provide the Associate Administrator with all\ninformation Respondent believes is relevant to the dispute. Decisions of the Associate\nAdministrator under this paragraph will constitute final agency action. The existence of a dispute\nand PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any\nterm or timeframe for completion of any work to be performed under this Agreement during the\npendency of the dispute resolution process, except as agreed by the Director or the Associate\nAdministrator in writing, or ordered by a court of competent jurisdiction.\nIX. Effective Date\n20. The term \"Effective Date,\" as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nX. Modification\n21. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\n5\n\n\n\nX. Ratification\n22. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n23. The Parties hereby agree to all conditions and terms of this Agreement.\n[Signature Lines on Following Page]\n6\n\n\n\nFor Tallgrass Powder River Gateway, LLC:\nDate\nFor PHMSA:\nDate\n7\n\n32021045NOPV_PHC Hearing Scheduled_02022022_(20-172259)_text.pdf\n\nFebruary 2, 2022\nVIA ELECTRONIC MAIL TO: jennifer.eckels@tallgrassenergylp.com and\ngregory.ochs@dot.gov\nMs. Jennifer Eckels\nManager – Compliance\nTallgrass Energy, LP\n370 Van Gordon Street\nLakewood, Colorado 80228\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, Missouri 64106\nRe: Notice of Hearing, Tallgrass Powder River Gateway, LLC\nCPF No. 3-2021-045-NOPV\nDear Ms. Eckels 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 Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on March 31, 2022, beginning at 9:00 a.m. Central Time.\nThe hearing will be held via videoconference. I will provide the videoconference information prior\nto the hearing. At least 10 calendar days prior to the hearing (or by March 21, 2022), both parties\nmust submit and exchange any additional written materials they intend to present at the hearing and\nthe name and email address of each attendee. This information should be provided electronically.\nMaterials 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. William Moler, President and Chief Executive Officer, Tallgrass Energy, LP,\nbill.moler@tallgrassenergylp.com\nMr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety, PHMSA,\njoseph.hainline@dot.gov\n\n32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 1)_01042022_(20-172259).pdf\n\nVia Email to Gregory.Ochs@DOT.gov\nJanuary 4, 2022\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 462\nKansas City, MO 64106\nRE: CPF No. 3-2021-045-NOPV\nRequest for Informal Conference\nRequest for a Hearing and Preliminary Statement of Issues\nWritten Response\nDear Mr. Ochs,\nThank you for your December 2, 2021, letter granting Tallgrass Powder River Gateway,\nLLC (Tallgrass) additional time to respond to the above-referenced Notice of Probable Violation,\nProposed Civil Penalty and Proposed Compliance Order (NOPV) issued by the Pipeline and\nHazardous Materials Safety Administration (PHMSA) on November 5, 2021. As described in\nthe attached, Tallgrass requests an informal conference to attempt to resolve certain Items\ncontained in the NOPV.\nIn order to preserve its rights, Tallgrass also submits a Request for Hearing and\nPreliminary Statement of Issues pursuant to 49 C.F.R. § 190.211. Tallgrass hopes that the\nhearing will be unnecessary, and that the parties can resolve this matter informally.\nFor those NOPV Items not subject to the Request for Informal Conference and Request\nfor Hearing, Tallgrass provides written responses in the attached.\nI will reach out to you by phone regarding scheduling an informal conference. In the\nmeantime, please feel free to contact me if you have any questions.\nSincerely,\nJennifer Eckels\nManager - Compliance\n\n\n\n370 Van Gordon Street\nLakewood, CO 80228\nPhone: (303) 763-3486\nCC: Tallgrass: Byron Gale, Jay Meyers, Jarid Kling, Nicole Longwell, Crystal Heter\nPHMSA: Gabriel Hodill, James Bunn\nEnclosure: Request for Informal Conference Regarding NOPV Item 3;\nRequest for Hearing and Preliminary Statement of Issues Regarding NOPV Item\n3; and Written Response to NOPV Items 1 and 2.\n\n32021045NOPV_PHC Hearing Canceled_06022022_(20-172259)_text.pdf\n\nDate: June 2, 2022\nFrom: Ryan McClure\nTo: File\nRe: Withdrawal of Hearing Request, Tallgrass Powder River Gateway, LLC\n3-2021-045-NOPV\nOn March 29, 2022, Tallgrass Powder River Gateway, LLC, by email, withdrew its request for a\nhearing for 3-2021-045-NOPV, which it submitted on January 4, 2022. The hearing, scheduled\nfor March 31, 2022, has been cancelled.\n\n32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nIn the Matter of )\nPowder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV\nRespondent. )\n)\n)\n)\nREQUEST FOR INFORMAL CONFERENCE, REQUEST FOR HEARING AND\nPRELIMINARY STATEMENT OF ISSUES FOR NOPV ITEM 3\nWRITTEN RESPONSE TO NOPV ITEMS 1 AND 2\nI. Request for Informal Conference Regarding NOPV Item 3\nPursuant to 49 U.S.C. § 60117(b)(1)(B), Tallgrass Powder River Gateway, LLC (Tallgrass)\nrespectfully requests an informal meeting to discuss the allegation in Item 3 of the above-\nreferenced Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order\n(NOPV). Tallgrass is hopeful that through further discussion of the facts and circumstances around\nItem 3 that this portion of the NOPV can be addressed without a hearing.\nII. Request for Hearing Regarding NOPV Item 3\nPursuant to 49 C.F.R. §§ 190.208(a)(4), 190.208(b)(4), and 190.211(b), Tallgrass\nrespectfully requests an in-person hearing to discuss the alleged violation, proposed civil penalty,\nand proposed compliance order for Item 3. If a hearing is held, Tallgrass will be represented by\ncounsel at the hearing.\nIII. Preliminary Statement of Issues\nTallgrass respectfully contests the allegation of violation, proposed civil penalty and\nproposed compliance order for Item 3, concerning the Company’s documentation of compliance\nwith PHMSA’s Integrity Management Program requirements at 49 C.F.R. § 195.452(l)(1)(ii). At\nthe hearing, Tallgrass intends to raise the following issues:\nA. Whether, based on the allegation in the Notice and evidence in the record, PHMSA met\n1\n\n\n\nits burden of demonstrating that Tallgrass committed a probable violation of 49 C.F.R.\n§ 195.452(l)(1)(ii).\nB. Whether Tallgrass can present evidence that it applied its Integrity Management\nProgram to non-line pipe facilities, took preventive and mitigative actions to address\ninternal corrosion threats on those facilities, and documented those actions.\nC. Whether a miscommunication may have occurred regarding the nature and scope of\nTallgrass’ Integrity Management Program.\nD. Whether the proposed penalty related to Item 3 must be withdrawn.\nE. Whether the proposed compliance order related to Item 3 is appropriate in scope,\nconsistent with 49 C.F.R. § 195.452, and must be withdrawn.\nTallgrass reserves the right to supplement this preliminary statement of issues in response\nto any additional information or arguments from PHMSA.\nIV. Response to NOPV Items 1 and 2\nPursuant to 49 C.F.R. §§ 190.208(a)(2) and 190.208(a)(3), Tallgrass provides a written\nresponse to Items 1 and 2 of the NOPV.\nA. Item 1 – 49 C.F.R. § 195.404(c)(3)\nTallgrass does not contest the allegation in Item 1 of the NOPV. Tallgrass has taken steps\nto correct the underlying causes of the missing pressure transmitter maintenance and inspection\nrecords.\nB. Item 2 – 49 C.F.R. § 195.406(b)\nTallgrass does not contest the allegation in Item 2 of the NOPV. Tallgrass seeks a reduction\nof the Proposed Civil Penalty under the gravity and culpability penalty assessment factors at 49\nC.F.R. §§ 190.225(a)(1) and 190.225(a)(2).\nRegarding the culpability factor, Tallgrass identified the MOP exceedances listed in the\nNotice and took steps to prevent their recurrence, well in advance of the start of PHMSA’s\ninspection, which began on August 2, 2020. Specifically, with respect to the MOP exceedance at\nGuernsey South (ERL 1715), Tallgrass investigated the event, imposed a pressure restriction and\ninstalled surge relief at Guernsey in April 2020, several months before PHMSA began its\n2\n\n\n\ninspection.1\nWith regard to the MOP exceedances at the Pronghorn Station (ERL 1802 and ERL 1807),\nTallgrass imposed an RPM limit on the mainline pumps via the Management of Change process\nwith a hard setpoint change in its SCADA system on October 31, 2019, in order prevent the sort\nof transient pressure surges that had occurred. Tallgrass implemented this change well before the\nstart of PHMSA’s inspection on August 2, 2020. Documentation of the RPM limit change, as well\nas pre- and post-RPM limit change data to demonstrate that the change was implemented, is\nattached.2 Prior PHMSA final orders have provided a culpability credit where an operator is able\nto demonstrate self-identification and correction of non-compliance.3\nHowever, in Part E7 of the Violation Report, PHMSA does not credit Tallgrass’\nidentification and correction of the issue before PHMSA’s inspection.4 Similarly, PHMSA’s\nProposed Civil Penalty worksheet does not provide any penalty credit for Tallgrass’ identification\nand correction of the issue.5 In accordance with PHMSA’s policy on self-identification and\ncorrection, as set out in the Proposed Civil Penalty Worksheet and the PHMSA Civil Penalty\nSummary, PHMSA should provide a -15 point culpability credit for these corrective measures.6\nAt a point value of $1,728 per point, this should result in a penalty reduction of $25,920.\nRegarding the gravity factor in Part E6 of the Violation Report, PHMSA provides that the\n“violation occurred within a HCA or “could affect” HCA...”7 The Violation Report also provides\nthat the “[p]ressure surge affected multiple segments upstream of the event, including HCA\nsegments.8 As a result, in its Proposed Civil Penalty Worksheet, PHMSA added a 17 point gravity\nadjustment.9 However, at the time of the inspection the Pronghorn Station was not located in, nor\ncould it affect an HCA, and this status has not changed since the inspection.\n10 Conversely, the\nGuernsey South Terminal was located in an HCA in 2020. Documentation demonstrating the non-\nHCA status of the Pronghorn Station is contained in Attachment 2.\n11 In addition, the MOP\n1 See PHMSA Violation Report, Exhibit A, 20-172259_ExhibitA_MOC4777_RateReduction_02022020; 20-\n172259_ExhibitA_MOC4893_EndPressureRestriction_04172020; 172259_ExhibitA_MOC4914_SurgeInstall_\n04302020. These MOC documents identify the steps that Tallgrass took to prevent recurrence of the MOP\nexceedance at Guernsey South Station.\n2 Tallgrass Management of Change Notification email (Oct. 31, 2019), pre- and post-RPM limit change data.\n3 See e.g. Flint Hills Resources, CPF No. 3-2020-5021, Final Order at 5 (Aug. 23, 2021).\n4 PHMSA Violation Report p. 17.\n5 PHMSA Proposed Civil Penalty Worksheet, culpability section.\n6 PHMSA Civil Penalty Summary (Feb. 7, 2020), available at\nhttps://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2020-03/civil-penalty-summary-2-7-2020 0.pdf.\n7 PHMSA Violation Report p.16, Part E6 – Gravity.\n8 Id.\n9 PHMSA Proposed Civil Penalty Worksheet, gravity section.\n10 Listing of HCA Facilities for the Powder River Gateway system, Appendix O_F-EMP_PRG 2020. This\ndocument shows all of the HCA Facilities on this system. The Pronghorn Station is not listed because it was not in\nnor could it affect an HCA in 2020.\n11 Id.\n3\n\n\n\nFacility Station Piping\nMOP (psig)\nMainline\nMOP (psig)\n1052\nexceedances at both Guernsey South and the Pronghorn station only affected station piping and\ndid not affect any mainline piping. As demonstrated in the table below, the MOPs of the mainlines\nserving these stations is far above the MOP of the station piping.\nGuernsey South 285 Pronghorn 285 1480\nTallgrass respectfully requests that PHMSA reduce the gravity points from 17 to 7 points,\nwhich would result in an additional reduction of $17,280. This adjustment is reasonable,\nappropriate and within PHMSA’s discretion because it would reflect the more limited effect of the\nMOP exceedances on HCA facilities than what was reflected in the Violation Report and Proposed\nCivil Penalty Worksheet. The only exceedance at an HCA facility was at Guernsey South; the\nPronghorn Station is not an HCA facility. This adjustment would also reflect that no mainline\nHCA piping experienced an MOP exceedance as a result of the station piping exceedances at either\nfacility.\nFinally, Tallgrass requests that PHMSA clarify the Proposed Compliance Order to reflect\nthat it applies only to the Powder River Gateway pipeline. Tallgrass also requests that PHMSA\nclarify the Proposed Compliance Order to reflect that Tallgrass may prevent MOP exceedance\nusing a range of “adequate controls and protective equipment,” allowed under § 195.406(b), and\nnot only surge relief devices as presently specified in the Proposed Compliance Order.\nRespectfully submitted this 4th day of\nJanuary 2022.\nJennifer Eckels\nManager - Compliance\n370 Van Gordon Street\nLakewood, CO 80228\nPhone: (303) 763-3486\nCC: Tallgrass: Byron Gale, Jay Meyers, Jarid Kling, Nicole Longwell, Crystal Heter\nPHMSA: Gabriel Hodill, James Bunn\n4\n\n\n\nEnclosures: Attachment 1: Tallgrass Management of Change Notification email (Oct. 31,\n2019), post-MOC pressure limit settings, and pre- and post-RPM limit change data\n(Documents hard mainline pump RPM limit put in place to prevent future MOP\nexceedances at Pronghorn Station)\nAttachment 2: 2020 Powder River Gateway Facility Equipment Maintenance Plan\n(Listing of HCA Facilities for the Powder River Gateway System)\n5\n\n32021045NOPV_Closure Letter_10122022_(20-172259)_text.pdf\n\nVIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com;\njennifer.eckels@tallgrassenergylp.com;\nOctober 12, 2022\nWilliam Moler\nChief Executive Officer\nTallgrass Powder River Gateway, LLC\n4200 W. 115th St. Suite 350\nLeawood, KS 66211\nRe: CPF 3-2021-045-NOPV\nDear Mr. Moler:\nOn March 29, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) and\nTallgrass Powder River Gateway, LLC (Tallgrass’) entered into a Consent Agreement, which\nincluded a Compliance Order, for Tallgrass to take specific actions on its pipeline. Based on our\nreview of the documentation you provided, and confirmation of payment of the civil penalty, it\nhas been determined that Tallgrass has complied with the terms of the Consent Agreement and\nCompliance 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\ncc: Jennifer Eckels, Compliance Manager, jennifer.eckels@tallgrassenergylp.com","truncated":false,"body_characters":35665}