{"operation":"document","citation":"CPF 32021087NOPV","title":"ROCKIES EXPRESS PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-12-13","effective_on":null,"summary":"CLOSED notice of probable violation citing 190.203(f), 192.481(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021087nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021087nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021087nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021087NOPV","body":"Notice of Probable Violation involving ROCKIES EXPRESS PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 190.203(f),  192.481(b). The case was opened on 2021-12-13 and is reported as closed as of 2023-04-03. Proposed civil penalty: $52,400. Assessed civil penalty: $51,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021087NOPV_Closure Letter_04032023_(21-210505).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_Closure%20Letter_04032023_(21-210505).pdf\n\n32021087NOPV_Closure Letter_04032023_(21-210505)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_Closure%20Letter_04032023_(21-210505)_text.pdf\n\n32021087NOPV_Final Order_12212022_(21-210505).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_Final%20Order_12212022_(21-210505).pdf\n\n32021087NOPV_Final Order_12212022_(21-210505)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_Final%20Order_12212022_(21-210505)_text.pdf\n\n32021087NOPV_Operator Response to Notice_01122022_(21-210505).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_Operator%20Response%20to%20Notice_01122022_(21-210505).pdf\n\n32021087NOPV_PCP PCO_12132021_(21-210505).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_PCP%20PCO_12132021_(21-210505).pdf\n\n32021087NOPV_PCP PCO_12132021_(21-210505)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021087NOPV/32021087NOPV_PCP%20PCO_12132021_(21-210505)_text.pdf\n\n32021087NOPV_Final Order_12212022_(21-210505)_text.pdf\n\nDecember 21, 2022\nVIA ELECTRONIC MAIL TO: matt@tallgrass.com\nMr. Matthew Sheehy\nPresident and Chief Executive Officer\nRockies Express Pipeline LLC\n370 Van Gordon Street\nLakewood, Colorado 80228\nRe: CPF No. 3-2021-087-NOPV\nDear Mr. Sheehy:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a reduced civil penalty of $51,300, and specifies actions that need to be taken\nby Rockies Express Pipeline LLC to comply with the pipeline safety regulations. The penalty\npayment terms are set forth in the Final Order. When the civil penalty has been paid and the\nterms of the compliance order completed, as determined by the Director, Central Region, this\nenforcement action will be closed. Service of the Final Order by e-mail is effective upon the\ndate of transmission and acknowledgement of receipt as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Gregory A. Ochs Director, Central Region, Office of Pipeline Safety, PHMSA\nMs. Jennifer Eckels, Manager, Compliance, Tallgrass Energy, jennifer.eckels@tallgrass.com\nMs. Crystal Heter, Chief Operating Officer, Tallgrass Energy, crystal.heter@tallgrass.com\nMr. Brad Armsbury, Compliance Engineer, Tallgrass Energy, brad.armsbury@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 )\nRockies Express Pipeline LLC, ) CPF No. 3-2021-087-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom May 10 through August 13, 2021, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Rockies\nExpress Pipeline LLC (REX or Respondent) in Colorado, Nebraska, Kansas, and Missouri.1\nDuring the inspection, PHMSA reviewed records related to a special permit issued to REX on\nJuly 11, 2006.2 Pursuant to the conditions in the special permit, REX operates the Rockies\nExpress pipeline, a 715-mile gas transmission line that originates at Cheyenne Hub and\nterminates in Mexico, Missouri.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated December 13, 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\nproposed finding that REX had violated Condition 33 of its special permit and 49 C.F.R.\n§ 192.481(b) and proposed assessing a civil penalty of $52,400 for the alleged violations. The\nNotice also proposed ordering Respondent to take certain measures to correct the alleged\nviolations.\nTallgrass Energy, LP, on behalf of REX, responded to the Notice by letter dated January 12,\n2022 (Response). The company did not contest the allegations of violation but provided\nadditional information and requested that the proposed civil penalty be reduced. Respondent did\nnot request a hearing and therefore has waived its right to one.\n1 A subsidiary of Tallgrass Energy Partners, L.P. (Tallgrass) owns 75 percent of REX, while a subsidiary of Phillips\n66 owns the remaining 25 percent. Rockies Express Pipeline (REX): Company Overview, available at\nhttps://pipeline.tallgrassenergylp.com/Pages/Content.aspx?pipeline=501&type=SMRY (last visited Dec. 7, 2022)\n2 See PHMSA 2006-23998.\n\n\n\nFINDINGS OF VIOLATION\nIn its Response, REX did not contest the allegations in the Notice that it violated its special\npermit and 49 C.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated Condition 33 of its special permit, which\nstates:\nPHMSA 2006-23998 - Condition 33.\nPipeline Markers: Rockies Express must employ line-of-sight markings\non the pipeline in the waiver area except in agricultural areas, subject to\nFederal Energy Regulatory Commission permits or environmental permits\nand local restrictions.\nThe Notice alleged that Respondent violated Condition 33 by failing to employ line-of-sight\nmarkings on its pipeline in the waiver area at six locations. The Notice stated that after the\ninspection, REX placed markers at the six identified locations.\nRespondent did not contest this allegation of violation, but provided additional information\nregarding the number of instances, which is addressed below in the Assessment of Penalty.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\nCondition 33 of Special Permit: PHMSA 2006-23998 by failing to employ line-of-sight\nmarkings on its pipeline in the waiver area.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.481, which states:\n§ 192.481 Atmospheric corrosion control: Monitoring.\n(a) . . . .\n(b) During inspections the operator must give particular attention to\npipe at soil-to-air interfaces, under thermal insulation, under disbonded\ncoatings, at pipe supports, in splash zones, at deck penetrations, and in spans\nover water.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.481(b) by failing to give particular\nattention during inspections to pipe at soil-to-air interfaces, under thermal insulation, under\ndisbonded coatings, at pipe supports, in splash zones, at deck penetrations, and in spans over\nwater. Specifically, the Notice alleged that REX failed to inspect for atmospheric corrosion\nunder thermal insulation at the Steele City compressor station and deck penetrations at the\nTurney compressor station in 2020.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.481(b) by failing to give\nparticular attention during inspections to pipe at soil-to-air interfaces, under thermal insulation,\nunder disbonded coatings, at pipe supports, in splash zones, at deck penetrations, and in spans\nover water.\n\n\n\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.3\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $52,400 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $20,700 for Respondent’s violation of Condition\n33 of its special permit, for failing to employ line-of-sight markings on its pipeline in the waiver\narea at six locations. In its Response, REX argued that three of the six locations identified in the\nNotice are not required to have line-of-sight markings pursuant to Condition 33. REX asserted\nthat line segment Bertrand to Steele City - Steele City 2nd street is in an agricultural area and\ntherefore excepted from Condition 33. In addition, REX argued that two other locations on the\nline segment Steele City to Turney (near the Southern Star Tap on Southeast Mt. Zion Road and\nHighway V and near Lost Creek, Agency, MO and Robin Drive) are not in the waiver area and\ntherefore not subject to Condition 33.\nIn a recommendation for final action submitted pursuant to § 190.209(b)(7), the Director\nrecommended reducing the proposed penalty to reflect the number of instances. Accordingly,\nwith respect to gravity of the violation, I reduce the instances of violation from six to three\nbecause REX demonstrated that Condition 33 does not apply to three of the six locations\nspecified in the Notice.\nBased upon the foregoing, I assess Respondent a reduced civil penalty of $19,600 for violation\nof Condition 33 of Special Permit: PHMSA 2006-23998.\nItem 2: The Notice proposed a civil penalty of $31,700 for Respondent’s violation of 49 C.F.R.\n49 C.F.R. § 192.481(b), for failing to give particular attention during inspections to pipe at soil-\nto-air interfaces, under thermal insulation, under disbonded coatings, at pipe supports, in splash\nzones, at deck penetrations, and in spans over water. REX neither contested the allegation nor\npresented any evidence or argument justifying a reduction in the proposed penalty. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223 for adjusted amounts.\n\n\n\npenalty of $31,700 for violation of 49 C.F.R. § 192.481(b).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $51,300.\nPayment of the civil penalty must be made within 20 days after receipt of this Final Order.\nFederal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S.\nTreasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,\nOklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the civil penalty will result in accrual of interest at the current annual rate in\naccordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those\nsame authorities, a late penalty charge of six percent (6%) per annum will be charged if payment\nis not made within 110 days of service. Furthermore, failure to pay the civil penalty may result\nin referral of the matter to the Attorney General for appropriate action in a district court of the\nUnited States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 2 in the Notice for violation of 49\nC.F.R. § 192.481(b). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 192.481(b) (Item 2), Respondent must,\nwithin 90 days of the Final Order:\na. Evaluate all locations in the scope of the inspection for buildings\nwith pipe penetrating building walls that have not been inspected\nadequately.\nb. Perform adequate visual inspection at all locations identified by\nthe evaluation required by a. and document.\nc. Develop and implement training to ensure individuals who\nperform atmospheric corrosion inspections have necessary\nknowledge and skills to perform the atmospheric corrosion\ninspections in a manner required by § 192.481.\nd. Submit revised training and records of inspection upon\ncompletion to the Director of Central Region.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\n\n\n\nextension.\nPHMSA requests that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (see 49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address. The written petition must be received no later than\n20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a\nstatement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing of a\npetition automatically stays the payment of any civil penalty assessed. The other terms of the\norder, including corrective action, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 21, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n32021087NOPV_Closure Letter_04032023_(21-210505)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Jennifer.eckels@tallgrassenergylp.com;\ncrystal.heter@tallgrassenergylp.com\nApril 3, 2023\nCrystal Heter, Chief Operating Officer\nRockies Express Pipeline LLC\n4200 W. 115th St. Suite 350\nLeawood, KS 66211\nRE: CPF No. 3-2021-087-NOPV\nDear Ms. Heter:\nOn December 12, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Rockies Express Pipeline LLC (REX) a Final Order in the above-referenced case. This\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation REX provided and confirmation of payment of the civil penalty, it has been\ndetermined that REX has complied with the terms of this 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 Eckles, Director Compliance, jennifer.eckels@tallgrassenergylp.com","truncated":false,"body_characters":16813}