# TALLGRASS POWDER RIVER GATEWAY, LLC — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.404(c)(3), 195.406(b), 195.452(l)(1)(ii).
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- **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.

Official case documents:

32021045NOPV_Closure Letter_10122022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Closure%20Letter_10122022_(20-172259).pdf

32021045NOPV_Closure Letter_10122022_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_Closure%20Letter_10122022_(20-172259)_text.pdf

32021045NOPV_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

32021045NOPV_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

32021045NOPV_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

32021045NOPV_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

32021045NOPV_PCP PCO_11052021_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PCP%20PCO_11052021_(20-172259).pdf

32021045NOPV_PCP PCO_11052021_(20-172259)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PCP%20PCO_11052021_(20-172259)_text.pdf

32021045NOPV_PHC Hearing Canceled_06022022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PHC%20Hearing%20Canceled_06022022_(20-172259).pdf

32021045NOPV_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

32021045NOPV_PHC Hearing Scheduled_02022022_(20-172259).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021045NOPV/32021045NOPV_PHC%20Hearing%20Scheduled_02022022_(20-172259).pdf

32021045NOPV_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

32021045NOPV_Consent Agreement and Order_03292022_(20-172259)_text.pdf

March 29, 2022
VIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com
Mr. William Moler
Chief Executive Officer
Tallgrass Powder River Gateway, LLC
4200 W. 115th St. Suite 350
Leawood, Kansas 66211
CPF No. 3-2021-045-NOPV
Dear Mr. Moler:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement
between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Tallgrass
Powder River Gateway, LLC (Tallgrass), which was executed on March 25, 2022. Service of
the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date
of transmission and acknowledgement of receipt, or as otherwise provided under 49 C.F.R.
§ 190.5.
Sincerely,
Alan K Mayberry
Associate Administrator
for Pipeline Safety
Enclosures: Consent Agreement and Consent Order
Cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Ms. Catherine Little, outside counsel for Tallgrass, catherine.little@troutman.com
Ms. Jennifer Eckels, Compliance Manager, Tallgrass, jennifer.eckels@tallgrass.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 )
Tallgrass Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated November 5, 2021, the Pipeline and Hazardous Materials Safety Administration,
Office of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil
Penalty, and Proposed Compliance Order (Notice) to Tallgrass Powder River Gateway, LLC
(Tallgrass or Respondent).
In response to the Notice, Respondent did not contest Items 1 or 2, requested a reduction in the
proposed civil penalty for Item 2, and requested a hearing on Item 3, and asked for the
opportunity to meet informally with PHMSA to discuss the issues raised (Response). Respondent
and PHMSA (the Parties) subsequently met on several occasions to discuss the issues raised in
the Response. As a result of those discussions and without admission, Respondent has agreed to
withdraw its hearing request and accept the findings of violation for Items 2 and 3 of the Notice,
subject to the clarification for Item 3 as set forth below, pay a reduced civil penalty in the
amount of $25,920 for Item 2, and undertake certain corrective measures.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Order. Tallgrass is hereby ordered to comply with the terms of the Consent Agreement, effective
immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties as set forth in 49 C.F.R. § 190.223.
The terms and conditions of this Consent Order are effective upon service in accordance with 49
C.F.R. § 190.5.
March 29, 2022
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
In the Matter of )
Tallgrass Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From August 2, 2020, to October 25, 2020, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter
601 of 49 United States Code (U.S.C.) inspected Tallgrass Powder River Gateway, LLC’s
(Tallgrass or Respondent) records and facilities in Lakewood, Colorado.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated November 5, 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
alleged that Respondent committed probable violations of two provisions of 49 C.F.R. Part 195
(Items 2 and 3), proposed ordering Respondent to take certain measures to correct the alleged
violations, and pay a proposed civil penalty in the amount of $58,400 associated with one item.
Another item (Item 1) was brought as a warning requiring no further action by Tallgrass.
In response to the Notice, Respondent did not contest Items 1 or 2, requested a reduction in the
proposed civil penalty for Item 2, and requested a hearing on Item 3, and asked for the
opportunity to meet informally with PHMSA to discuss the issues raised (Response). Respondent
and PHMSA (the Parties) subsequently met on several occasions to discuss the issues raised in
the Response. As a result of those discussions and without admission, Respondent has agreed to
withdraw its hearing request and accept the findings of violation for Items 2 and 3 of the Notice,
subject to the clarification for Item 3 as set forth below, pay a reduced civil penalty in the
amount of $25,920 for Item 2, and undertake certain corrective measures.
Having agreed that settlement of this enforcement action will avoid further administrative
proceedings or litigation and will serve the public interest by promoting safety and protection of
the environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of Respondent
and PHMSA, the Parties hereby agree as follows:
1



I. General Provisions:
1. Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced hazardous liquid pipeline facilities are subject to the
jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations
and administrative orders issued thereunder. For purposes of this Agreement, Respondent
acknowledges that it received proper notice of PHMSA's action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,
and the regulations and orders issued thereunder.
2. After Respondent returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending
that the Associate Administrator adopt the terms of this Agreement by issuing an administrative
order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement
3. Respondent consents to the issuance of the Consent Order, and hereby waives
any further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except as set forth herein.
4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its
officers, directors, and employees, and its successors, assigns, or other entities or persons otherwise
bound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work
plans and schedules to all of Respondent’s officers, employees, and agents whose duties might
reasonably include compliance with this Agreement.
5. This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement.
The Parties acknowledge that there are no representations, agreements or understandings
relating to settlement other than those expressly contained in this Agreement, except that the
terms of this Agreement may be construed by reference to the Notice.
6. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,
et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters
PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to
bring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the
regulations and orders issued thereunder, or any other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Respondent’s pipeline
system referenced herein, Respondent will provide a copy of this Agreement to the prospective
transferee at least 30 days prior to such transfer. Respondent will provide written notice of the
transfer to the PHMSA Central Regional Director no later than 60 days after the transfer occurs.
2



Upon issuance of the Consent Order, the Parties agree to the following terms.
8. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a
permit, or a modification of any permit, under any Federal, State, or local laws or regulations.
Respondent remains responsible for achieving and maintaining compliance with all applicable
Federal, State, and local laws, regulations and permits.
9. This Agreement does not create rights in, or grant any cause of action to, any
third party not party to this Agreement. The U.S. Department of Transportation is not liable for
any injuries or damages to persons or property arising from acts or omissions of Respondent or
its officers, employees, or agents carrying out the work required by this Agreement.
Respondent agrees to hold harmless the U.S. Department of Transportation, its officers,
employees, agents, and representatives from any and all causes of action arising from any acts
or omissions of Respondent or its contractors in carrying out any work required by this
Agreement.
10. Agreement.
Respondent neither admits nor denies any allegation or conclusion in the Notice
or this Agreement but agrees for purposes of this Agreement to comply with the terms of this
11. II. Warning Item:
12. Item 1: 49 C.F.R. § 195.404(c)(3): The Notice alleged that Respondent failed to
maintain inspection records for a single calendar year related to the maintenance and testing of
two overpressure safety devices as required. Respondent maintained inspection records for the
two overpressure safety devices for the other time period requested and has taken steps to
correct the underlying causes of the missing records. This item was brought as a warning
requiring no further action by Respondent. Respondent did not contest this Warning Item. This
Warning Item does not constitute a finding of violation for any purpose, and no further action by
Respondent is necessary to achieve compliance.
III. Findings of Violation:
13. Item 2: 49 C.F.R. § 195.406(b): The Notice alleged three instances where
Respondent failed to provide adequate controls and protective equipment to ensure that the
pressure in its pipelines, during surges or other variations from normal operation, did not exceed
110 percent of the established maximum operating pressure. Respondent did not contest this
allegation of violation given that the three instances were self-identified, Respondent took steps
to prevent their recurrence, and voluntarily disclosed them to PHMSA in advance of the
inspection. As such, PHMSA finds a violation of 49 C.F.R. § 195.406(b). This violation may
be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken
against Respondent.
14. Item 3: 49 C.F.R. § 195.452(l)(1)(ii): The Notice alleged that Respondent failed
to maintain records for review during an inspection of actions taken to mitigate the threat of
dead legs at the Guernsey and Wyoming terminals. During the informal meetings between the
3



Parties in March 2022, Respondent provided records confirming the preventative and mitigative
measures it took at the relevant facilities for 2019 and 2020. Respondent neither admits nor
denies the allegation of violation for this item given the existence of the records at the time of
inspection, but, for purposes of settlement, agrees to accept the finding of violation. As such,
PHMSA finds a violation of 49 C.F.R. § 195.452(l)(1)(ii) for not making records available at the
time of inspection. This violation may be considered by PHMSA as a prior offense in any
future PHMSA enforcement action taken against Respondent.
IV. Civil Penalty:
15. Item 2: The Notice proposed assessing a civil penalty in the amount of $58,400
for Item 2. In its Response, and during the informal meetings between the Parties, Respondent
provided additional information related to measures it undertook prior to the inspection after
discovering, and self-reporting, the noncompliance. Based on the information provided,
PHMSA agrees to reduce the proposed civil penalty under the culpability factor. As such,
Respondent shall pay a reduced civil penalty in the amount of $25,920, to be paid in full no later
than 30 days from the Effective Date of this Agreement.
V. Compliance Order:
16. Item 2: The Notice proposed certain compliance order actions to address the
non-compliance alleged in the Notice. Respondent did not contest the Proposed Compliance
Order, but requested clarification that the compliance order actions apply to only the Powder
River Gateway pipeline, and that Respondent may prevent MOP exceedance using a range of
“adequate controls and protective equipment,” allowed under § 195.406(b), and not only surge
relief devices as specified in the Proposed Compliance Order. PHMSA agrees with
Respondent’s requests, and clarifies that the proposed actions set forth in this paragraph are
limited to the Powder River Gateway pipeline, and that Respondent may use any means of
adequate and protective equipment allowed under § 195.406(b) to prevent MOP exceedance.
As such, Respondent must undertake the following corrective measures:
(a) Respondent must evaluate the Powder River Gateway pipeline to ensure that its
pipeline system is protected from overpressure using a means of surge protection,
such as installing surge relief devices as necessary, or any other appropriate
method allowable by the regulation.
(b) In its evaluation, Respondent must prioritize facilities with repeated occurrences
of surge pressure events. Respondent must, within 60 days of the Effective Date
of this Agreement, provide the results of the evaluation, and a schedule for
corrective action to the Director, PHMSA Central Region.
17. Item 3: The Notice proposed certain compliance order actions to address the
non-compliance alleged in the Notice. Respondent must, without admitting or denying the
allegation of violation, perform the following corrective measures:
(a) Respondent must, within 60 days of the Effective Date of this Agreement,
provide to the Director, PHMSA Central Region, a comprehensive list of
4



facilities documenting the specific location of all “dead leg” pipe segments in
HCA facilities on the Powder River Gateway pipeline. The list must include, to
the extent available, relevant attributes of each segment (i.e., age of pipe, wall
thickness, coating type)).
(b) Additionally, Respondent must include an outline of planned preventive
maintenance activities for each segment for the 12 months after the Effective
Date of this Agreement.
VI. Enforcement:
18. This Agreement is subject to all enforcement authorities available to PHMSA
under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties
under 49 U.S.C. § 60122, of up to $225,134 per violation for each day the violation continues
and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines
that Respondent is not complying with the terms of this Agreement in accordance with
determinations made by the Director, or if appealed, in accordance with decisions of the
Associate Administrator. The maximum civil penalty amounts are adjusted annually for
inflation. See 49 C.F.R. § 190.223.
VII. Dispute Resolution:
19. The Director and Respondent will informally attempt to resolve any disputes
arising under this Agreement, including but not limited to any decision of the Director. If
Respondent and the Director are unable to informally resolve the dispute within 15 calendar days
after the dispute is first raised, in writing, to the Director, Respondent may submit a written
request for a determination resolving the dispute from the Associate Administrator for Pipeline
Safety, PHMSA. Such request must be made in writing and provided to the Director, counsel for
the Central Region, and to the Associate Administrator for Pipeline Safety, no later than 10
calendar days from the 15 day deadline for informal resolution referenced in this paragraph.
Along with its request, Respondent must provide the Associate Administrator with all
information Respondent believes is relevant to the dispute. Decisions of the Associate
Administrator under this paragraph will constitute final agency action. The existence of a dispute
and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any
term or timeframe for completion of any work to be performed under this Agreement during the
pendency of the dispute resolution process, except as agreed by the Director or the Associate
Administrator in writing, or ordered by a court of competent jurisdiction.
IX. Effective Date
20. The term "Effective Date," as used herein, is the date on which the Consent Order
is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.
X. Modification
21. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
5



X. Ratification
22. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
23. The Parties hereby agree to all conditions and terms of this Agreement.
[Signature Lines on Following Page]
6



For Tallgrass Powder River Gateway, LLC:
Date
For PHMSA:
Date
7

32021045NOPV_PHC Hearing Scheduled_02022022_(20-172259)_text.pdf

February 2, 2022
VIA ELECTRONIC MAIL TO: jennifer.eckels@tallgrassenergylp.com and
gregory.ochs@dot.gov
Ms. Jennifer Eckels
Manager – Compliance
Tallgrass Energy, LP
370 Van Gordon Street
Lakewood, Colorado 80228
Mr. Gregory Ochs
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
901 Locust Street, Suite 480
Kansas City, Missouri 64106
Re: Notice of Hearing, Tallgrass Powder River Gateway, LLC
CPF No. 3-2021-045-NOPV
Dear Ms. Eckels and Mr. Ochs:
In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of
Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline
and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take
place on March 31, 2022, beginning at 9:00 a.m. Central Time.
The hearing will be held via videoconference. I will provide the videoconference information prior
to the hearing. At least 10 calendar days prior to the hearing (or by March 21, 2022), both parties
must submit and exchange any additional written materials they intend to present at the hearing and
the name and email address of each attendee. This information should be provided electronically.
Materials not submitted by this date may be excluded.
If you have any questions, please do not hesitate to contact me.
Sincerely,
Kristin Baldwin
Presiding Official
cc: Mr. William Moler, President and Chief Executive Officer, Tallgrass Energy, LP,
bill.moler@tallgrassenergylp.com
Mr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety, PHMSA,
joseph.hainline@dot.gov

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 1)_01042022_(20-172259).pdf

Via Email to Gregory.Ochs@DOT.gov
January 4, 2022
Mr. Gregory Ochs
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
901 Locust Street, Suite 462
Kansas City, MO 64106
RE: CPF No. 3-2021-045-NOPV
Request for Informal Conference
Request for a Hearing and Preliminary Statement of Issues
Written Response
Dear Mr. Ochs,
Thank you for your December 2, 2021, letter granting Tallgrass Powder River Gateway,
LLC (Tallgrass) additional time to respond to the above-referenced Notice of Probable Violation,
Proposed Civil Penalty and Proposed Compliance Order (NOPV) issued by the Pipeline and
Hazardous Materials Safety Administration (PHMSA) on November 5, 2021. As described in
the attached, Tallgrass requests an informal conference to attempt to resolve certain Items
contained in the NOPV.
In order to preserve its rights, Tallgrass also submits a Request for Hearing and
Preliminary Statement of Issues pursuant to 49 C.F.R. § 190.211. Tallgrass hopes that the
hearing will be unnecessary, and that the parties can resolve this matter informally.
For those NOPV Items not subject to the Request for Informal Conference and Request
for Hearing, Tallgrass provides written responses in the attached.
I will reach out to you by phone regarding scheduling an informal conference. In the
meantime, please feel free to contact me if you have any questions.
Sincerely,
Jennifer Eckels
Manager - Compliance



370 Van Gordon Street
Lakewood, CO 80228
Phone: (303) 763-3486
CC: Tallgrass: Byron Gale, Jay Meyers, Jarid Kling, Nicole Longwell, Crystal Heter
PHMSA: Gabriel Hodill, James Bunn
Enclosure: Request for Informal Conference Regarding NOPV Item 3;
Request for Hearing and Preliminary Statement of Issues Regarding NOPV Item
3; and Written Response to NOPV Items 1 and 2.

32021045NOPV_PHC Hearing Canceled_06022022_(20-172259)_text.pdf

Date: June 2, 2022
From: Ryan McClure
To: File
Re: Withdrawal of Hearing Request, Tallgrass Powder River Gateway, LLC
3-2021-045-NOPV
On March 29, 2022, Tallgrass Powder River Gateway, LLC, by email, withdrew its request for a
hearing for 3-2021-045-NOPV, which it submitted on January 4, 2022. The hearing, scheduled
for March 31, 2022, has been cancelled.

32021045NOPV_Op Resp to Notice and Req for Hearing and Prelim Stmnt of Issues (Part 2)_01042022_(20-172259).pdf

U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
In the Matter of )
Powder River Gateway, LLC, ) CPF No. 3-2021-045-NOPV
Respondent. )
)
)
)
REQUEST FOR INFORMAL CONFERENCE, REQUEST FOR HEARING AND
PRELIMINARY STATEMENT OF ISSUES FOR NOPV ITEM 3
WRITTEN RESPONSE TO NOPV ITEMS 1 AND 2
I. Request for Informal Conference Regarding NOPV Item 3
Pursuant to 49 U.S.C. § 60117(b)(1)(B), Tallgrass Powder River Gateway, LLC (Tallgrass)
respectfully requests an informal meeting to discuss the allegation in Item 3 of the above-
referenced Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order
(NOPV). Tallgrass is hopeful that through further discussion of the facts and circumstances around
Item 3 that this portion of the NOPV can be addressed without a hearing.
II. Request for Hearing Regarding NOPV Item 3
Pursuant to 49 C.F.R. §§ 190.208(a)(4), 190.208(b)(4), and 190.211(b), Tallgrass
respectfully requests an in-person hearing to discuss the alleged violation, proposed civil penalty,
and proposed compliance order for Item 3. If a hearing is held, Tallgrass will be represented by
counsel at the hearing.
III. Preliminary Statement of Issues
Tallgrass respectfully contests the allegation of violation, proposed civil penalty and
proposed compliance order for Item 3, concerning the Company’s documentation of compliance
with PHMSA’s Integrity Management Program requirements at 49 C.F.R. § 195.452(l)(1)(ii). At
the hearing, Tallgrass intends to raise the following issues:
A. Whether, based on the allegation in the Notice and evidence in the record, PHMSA met
1



its burden of demonstrating that Tallgrass committed a probable violation of 49 C.F.R.
§ 195.452(l)(1)(ii).
B. Whether Tallgrass can present evidence that it applied its Integrity Management
Program to non-line pipe facilities, took preventive and mitigative actions to address
internal corrosion threats on those facilities, and documented those actions.
C. Whether a miscommunication may have occurred regarding the nature and scope of
Tallgrass’ Integrity Management Program.
D. Whether the proposed penalty related to Item 3 must be withdrawn.
E. Whether the proposed compliance order related to Item 3 is appropriate in scope,
consistent with 49 C.F.R. § 195.452, and must be withdrawn.
Tallgrass reserves the right to supplement this preliminary statement of issues in response
to any additional information or arguments from PHMSA.
IV. Response to NOPV Items 1 and 2
Pursuant to 49 C.F.R. §§ 190.208(a)(2) and 190.208(a)(3), Tallgrass provides a written
response to Items 1 and 2 of the NOPV.
A. Item 1 – 49 C.F.R. § 195.404(c)(3)
Tallgrass does not contest the allegation in Item 1 of the NOPV. Tallgrass has taken steps
to correct the underlying causes of the missing pressure transmitter maintenance and inspection
records.
B. Item 2 – 49 C.F.R. § 195.406(b)
Tallgrass does not contest the allegation in Item 2 of the NOPV. Tallgrass seeks a reduction
of the Proposed Civil Penalty under the gravity and culpability penalty assessment factors at 49
C.F.R. §§ 190.225(a)(1) and 190.225(a)(2).
Regarding the culpability factor, Tallgrass identified the MOP exceedances listed in the
Notice and took steps to prevent their recurrence, well in advance of the start of PHMSA’s
inspection, which began on August 2, 2020. Specifically, with respect to the MOP exceedance at
Guernsey South (ERL 1715), Tallgrass investigated the event, imposed a pressure restriction and
installed surge relief at Guernsey in April 2020, several months before PHMSA began its
2



inspection.1
With regard to the MOP exceedances at the Pronghorn Station (ERL 1802 and ERL 1807),
Tallgrass imposed an RPM limit on the mainline pumps via the Management of Change process
with a hard setpoint change in its SCADA system on October 31, 2019, in order prevent the sort
of transient pressure surges that had occurred. Tallgrass implemented this change well before the
start of PHMSA’s inspection on August 2, 2020. Documentation of the RPM limit change, as well
as pre- and post-RPM limit change data to demonstrate that the change was implemented, is
attached.2 Prior PHMSA final orders have provided a culpability credit where an operator is able
to demonstrate self-identification and correction of non-compliance.3
However, in Part E7 of the Violation Report, PHMSA does not credit Tallgrass’
identification and correction of the issue before PHMSA’s inspection.4 Similarly, PHMSA’s
Proposed Civil Penalty worksheet does not provide any penalty credit for Tallgrass’ identification
and correction of the issue.5 In accordance with PHMSA’s policy on self-identification and
correction, as set out in the Proposed Civil Penalty Worksheet and the PHMSA Civil Penalty
Summary, PHMSA should provide a -15 point culpability credit for these corrective measures.6
At a point value of $1,728 per point, this should result in a penalty reduction of $25,920.
Regarding the gravity factor in Part E6 of the Violation Report, PHMSA provides that the
“violation occurred within a HCA or “could affect” HCA...”7 The Violation Report also provides
that the “[p]ressure surge affected multiple segments upstream of the event, including HCA
segments.8 As a result, in its Proposed Civil Penalty Worksheet, PHMSA added a 17 point gravity
adjustment.9 However, at the time of the inspection the Pronghorn Station was not located in, nor
could it affect an HCA, and this status has not changed since the inspection.
10 Conversely, the
Guernsey South Terminal was located in an HCA in 2020. Documentation demonstrating the non-
HCA status of the Pronghorn Station is contained in Attachment 2.
11 In addition, the MOP
1 See PHMSA Violation Report, Exhibit A, 20-172259_ExhibitA_MOC4777_RateReduction_02022020; 20-
172259_ExhibitA_MOC4893_EndPressureRestriction_04172020; 172259_ExhibitA_MOC4914_SurgeInstall_
04302020. These MOC documents identify the steps that Tallgrass took to prevent recurrence of the MOP
exceedance at Guernsey South Station.
2 Tallgrass Management of Change Notification email (Oct. 31, 2019), pre- and post-RPM limit change data.
3 See e.g. Flint Hills Resources, CPF No. 3-2020-5021, Final Order at 5 (Aug. 23, 2021).
4 PHMSA Violation Report p. 17.
5 PHMSA Proposed Civil Penalty Worksheet, culpability section.
6 PHMSA Civil Penalty Summary (Feb. 7, 2020), available at
https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2020-03/civil-penalty-summary-2-7-2020 0.pdf.
7 PHMSA Violation Report p.16, Part E6 – Gravity.
8 Id.
9 PHMSA Proposed Civil Penalty Worksheet, gravity section.
10 Listing of HCA Facilities for the Powder River Gateway system, Appendix O_F-EMP_PRG 2020. This
document shows all of the HCA Facilities on this system. The Pronghorn Station is not listed because it was not in
nor could it affect an HCA in 2020.
11 Id.
3



Facility Station Piping
MOP (psig)
Mainline
MOP (psig)
1052
exceedances at both Guernsey South and the Pronghorn station only affected station piping and
did not affect any mainline piping. As demonstrated in the table below, the MOPs of the mainlines
serving these stations is far above the MOP of the station piping.
Guernsey South 285 Pronghorn 285 1480
Tallgrass respectfully requests that PHMSA reduce the gravity points from 17 to 7 points,
which would result in an additional reduction of $17,280. This adjustment is reasonable,
appropriate and within PHMSA’s discretion because it would reflect the more limited effect of the
MOP exceedances on HCA facilities than what was reflected in the Violation Report and Proposed
Civil Penalty Worksheet. The only exceedance at an HCA facility was at Guernsey South; the
Pronghorn Station is not an HCA facility. This adjustment would also reflect that no mainline
HCA piping experienced an MOP exceedance as a result of the station piping exceedances at either
facility.
Finally, Tallgrass requests that PHMSA clarify the Proposed Compliance Order to reflect
that it applies only to the Powder River Gateway pipeline. Tallgrass also requests that PHMSA
clarify the Proposed Compliance Order to reflect that Tallgrass may prevent MOP exceedance
using a range of “adequate controls and protective equipment,” allowed under § 195.406(b), and
not only surge relief devices as presently specified in the Proposed Compliance Order.
Respectfully submitted this 4th day of
January 2022.
Jennifer Eckels
Manager - Compliance
370 Van Gordon Street
Lakewood, CO 80228
Phone: (303) 763-3486
CC: Tallgrass: Byron Gale, Jay Meyers, Jarid Kling, Nicole Longwell, Crystal Heter
PHMSA: Gabriel Hodill, James Bunn
4



Enclosures: Attachment 1: Tallgrass Management of Change Notification email (Oct. 31,
2019), post-MOC pressure limit settings, and pre- and post-RPM limit change data
(Documents hard mainline pump RPM limit put in place to prevent future MOP
exceedances at Pronghorn Station)
Attachment 2: 2020 Powder River Gateway Facility Equipment Maintenance Plan
(Listing of HCA Facilities for the Powder River Gateway System)
5

32021045NOPV_Closure Letter_10122022_(20-172259)_text.pdf

VIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com;
jennifer.eckels@tallgrassenergylp.com;
October 12, 2022
William Moler
Chief Executive Officer
Tallgrass Powder River Gateway, LLC
4200 W. 115th St. Suite 350
Leawood, KS 66211
Re: CPF 3-2021-045-NOPV
Dear Mr. Moler:
On March 29, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) and
Tallgrass Powder River Gateway, LLC (Tallgrass’) entered into a Consent Agreement, which
included a Compliance Order, for Tallgrass to take specific actions on its pipeline. Based on our
review of the documentation you provided, and confirmation of payment of the civil penalty, it
has been determined that Tallgrass has complied with the terms of the Consent Agreement and
Compliance 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: Jennifer Eckels, Compliance Manager, jennifer.eckels@tallgrassenergylp.com
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