# TALLGRASS PONY EXPRESS PIPELINE, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 32021089NOPV
- **title:** TALLGRASS PONY EXPRESS PIPELINE, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-11-30
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.264(b)(1)(i), 195.264(b)(1)(ii).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021089nopv.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021089nopv
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/32021089NOPV
**body:**

Notice of Probable Violation involving TALLGRASS PONY EXPRESS PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.264(b)(1)(i),  195.264(b)(1)(ii). The case was opened on 2021-11-30 and is reported as closed as of 2023-10-25. Proposed civil penalty: $59,400. Assessed civil penalty: $26,200. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

32021089NOPV_Closure Letter_10252023_(21-210502).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_Closure%20Letter_10252023_(21-210502).pdf

32021089NOPV_Closure Letter_10252023_(21-210502)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_Closure%20Letter_10252023_(21-210502)_text.pdf

32021089NOPV_Final Order_07072022_(21-210502).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_Final%20Order_07072022_(21-210502).pdf

32021089NOPV_Final Order_07072022_(21-210502)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_Final%20Order_07072022_(21-210502)_text.pdf

32021089NOPV_Operator Response to Notice_12302021_(21-210502).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_Operator%20Response%20to%20Notice_12302021_(21-210502).pdf

32021089NOPV_PCP PCO_11302021_(21-210502).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_PCP%20PCO_11302021_(21-210502).pdf

32021089NOPV_PCP PCO_11302021_(21-210502)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021089NOPV/32021089NOPV_PCP%20PCO_11302021_(21-210502)_text.pdf

32021089NOPV_Final Order_07072022_(21-210502)_text.pdf

July 7, 2022
VIA ELECTRONIC MAIL TO: matt.sheehy@tallgrassenergylp.com
Mr. Matthew Sheehy
President and Chief Executive Officer
Tallgrass Energy, LP
4200 W. 115th Street, Suite 350
Leawood, Kansas 66211
Re: CPF No. 3-2021-089-NOPV
Dear Mr. Sheehy:
Enclosed please find the Final Order issued in the above-referenced case to Tallgrass Pony
Express Pipeline, LP, a subsidiary of Tallgrass Energy, LP. It makes findings of violation,
assesses a reduced civil penalty of $26,200, and specifies actions that need to be taken to comply
with the pipeline safety regulations. The penalty payment terms are set forth in the Final Order.
When the civil penalty has been paid and the terms of the compliance order completed, as
determined by the Director, Central Region, this enforcement action will be closed. Service of
the Final Order by e-mail is effective upon the date of transmission and acknowledgement of
receipt 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 A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Ms. Crystal Heter, Chief Operating Officer, Tallgrass Energy, LP,
crystal.heter@tallgrassenergylp.com



Ms. Jennifer Eckels, Manager - Compliance, Tallgrass Energy, LP,
jennifer.eckels@tallgrassenergylp.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 Pony Express Pipeline, LLC, ) CPF No. 3-2021-089-NOPV
a subsidiary of Tallgrass Energy, LP, )
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
From May 10 through August 13, 2021, pursuant to 49 U.S.C. § 60117, a representative of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), conducted a pipeline safety inspection of the facilities and records of Tallgrass Pony
Express Pipeline, LLC, a subsidiary of Tallgrass Energy, LP,1 (Tallgrass or Respondent) in
Colorado, Wyoming, and Kansas. Tallgrass owns and operates the Pony Express System, which
is 607.24 miles of pipeline that transports crude oil through various states, including Colorado,
Kansas, Nebraska, and Wyoming. The system has tanks located at Buckingham, Pawnee,
Sterling, and Grasslands, all within Colorado.2
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated November 30, 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 Tallgrass had violated 49 C.F.R. §§ 195.264(b)(1)(i) and (b)(1)(ii) and
proposed assessing a civil penalty of $59,400 for the alleged violation of § 195.264(b)(1)(i). The
Notice also proposed ordering Respondent to take certain measures to correct the alleged
violations.
Tallgrass Energy, LP, on its behalf of Tallgrass, responded to the Notice by letter dated
December 30, 2021 (Response). The company did not contest the allegations of violation but
and requested that the proposed civil penalty be reduced. Respondent did not request a hearing
and therefore has waived its right to one.
1 Tallgrass Energy, LP Annual Report 2019, Exhibit 21.1, available at
https://s1.q4cdn.com/607019075/files/doc financials/2019/ar/Annual-Report-2019.pdf
(last accessed June 2, 2022).
2 Pipeline Safety Violation Report, at 1.



FINDINGS OF VIOLATION
In its Response, Respondent did not contest the allegations in the Notice that it violated 49
C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.264(b)(1)(i), which states
in relevant part:
§ 195.264 Impoundment, protection against entry, normal/emergency
venting or pressure/vacuum relief for aboveground breakout tanks.
(a) . . . .
(b) After October 2, 2000, compliance with paragraph (a) of this section
requires the following for the aboveground breakout tanks specified:
(1) For tanks built to API Spec 12F, API Std 620, and others (such as
API Std 650 (or its predecessor Standard 12C)), the installation of
impoundment must be in accordance with the following sections of NFPA-
30 (incorporated by reference, see § 195.3);
(i) Impoundment around a breakout tank must be installed in accordance
with section 22.11.2; and . . . .
The Notice alleged that Respondent violated 49 C.F.R. § 195.264(b)(1)(i) by failing to satisfy the
requirements of section 22.11.2 of NFPA-30 (2012 edition) regarding impoundment around the
breakout tanks. Specifically, the Notice alleged that Tallgrass failed to subdivide the tanks at
Pawnee, Grasslands, and Buckingham, which were all built to API Std 620 after October 2,
2000, and failed to have drainage channels or intermediate dikes installed as required by section
22.11.2.6 of NFPA-30 (2012 edition). Section 22.11.2.6 requires that “[e]ach diked area
containing two or more tanks shall be subdivided, preferably by drainage channels or at least by
intermediate dikes, in order to prevent minor spills from a tank from endangering adjacent tanks
within the diked areas.”
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.264(b)(1)(i) by failing to satisfy
the requirements of section 22.11.2 of NFPA-30 (2012 edition) regarding impoundment around
the breakout tanks.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.264(b)(1)(ii), which states
in relevant part:
§ 195.264 Impoundment, protection against entry, normal/emergency
venting or pressure/vacuum relief for aboveground breakout tanks.
(a) . . . .
(b) After October 2, 2000, compliance with paragraph (a) of this section
requires the following for the aboveground breakout tanks specified:
(1) For tanks built to API Spec 12F, API Std 620, and others (such as
API Std 650 (or its predecessor Standard 12C)), the installation of
impoundment must be in accordance with the following sections of NFPA-
30 (incorporated by reference, see § 195.3);



(i) . . . .
(ii) Impoundment by drainage to a remote impounding area must be
installed in accordance with section 22.11.1.
The Notice alleged that Respondent violated 49 C.F.R. § 195.264(b)(1)(ii) by failing to satisfy
the requirements of section 22.11.1 of NFPA-30 (2012 edition) regarding drainage routes.
Specifically, the Notice alleged that Tallgrass’ tanks 5151, 5152, 5251, 5252, 5253, 5254, and
5255, which were all built to API Std 650 after October 2, 2000, and the as-built containment at
Tallgrass’ Sterling facility did not have an adequate drainage route toward the remote
impounding area as required by sections 22.11.1 and 22.11.1.1 of NFPA-30 (2012 edition).
Section 22.11.1 requires that “[w]here control of spills is provided by drainage to remote
impounding area so that spilled liquid does not collect around tanks, the requirements of
22.11.1.1 through 22.11.1.4 shall apply.” Section 22.11.1.1 further states that “[t]he drainage
route shall have a slope of not less than 1 percent away from the tank for at least 50 ft (15 m)
toward the impounding area.”
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.264(b)(1)(ii) by failing to satisfy
the requirements of section 22.11.1 of NFPA-30 (2012 edition) regarding drainage routes.
These findings of violation will be considered prior offenses 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.3
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
proposed a total civil penalty of $59,400 for the Item 1.
Item 1: The Notice proposed a civil penalty of $59,400 for Respondent’s violation of 49 C.F.R.
§ 195.264(b)(1)(ii) for failing to satisfy the requirements of section 22.11.1 of NFPA-30 (2012
edition) regarding drainage routes. In its Response, Tallgrass requested a reduction in penalty
under the gravity factor. Tallgrass claimed that the proposed civil penalty incorrectly considered
the tanks at the Grasslands and Buckingham facilities as being located in, or could affect, a high
3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.



consequence area (HCA). In support of its claim, Tallgrass provided its most recent Pony
Express Pipeline facility HCA listings, in which neither the Grasslands nor Buckingham facility
was listed or identified as being located in, or could affect, an HCA. Tallgrass also noted that
PHMSA did not provide any evidence to support the assertion that these tanks were located
within a HCA or could affect a HCA. As such, Tallgrass requested that PHMSA reduce the civil
penalty under the gravity factor to “pipeline safety being minimally affected” by Respondent’s
violation of § 195.264(b)(1)(ii).4 OPS Central Region evaluated Tallgrass’ Response and
supported such a change under the gravity factor.
5 I agree it is appropriate. Accordingly, based
upon the foregoing, I assess Respondent a reduced civil penalty of $26,200 for the violation of
49 C.F.R. § 195.264(b)(1)(ii).
In summary, having reviewed the record and considered the assessment criteria, I assess
Respondent a total civil penalty of $26,200.
Payment of the civil penalty must be made within 20 days after receipt of this Final Order.
Payment may be made by sending a certified check or money order (containing the CPF Number
for this case), made payable to “U.S. Department of Transportation,” to the Federal Aviation
Administration, Mike Monroney Aeronautical Center, Financial Operations Division (AMK-
325), 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. Federal regulations (49 C.F.R.
§ 89.21(b)(3)) also permit payment to be made by wire transfer through the Federal Reserve
Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions
are contained in the enclosure. Questions concerning wire transfers should be directed to:
Financial Operations Division (AMK-325), Federal Aviation Administration, Mike Monroney
Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial
Operations Division telephone number is (405) 954-8845.
Failure to pay the $26,200 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1 and 2 in the Notice for
violations of 49 C.F.R. §§ 195.264(b)(1)(i) and (b)(1)(ii), respectively. 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:
4 Response, at 2.
5 Region Recommendation, dated, February 28, 2022, at 1-2.



1. With respect to the violation of § 195.264(b)(1)(i) (Item 1), Respondent must:
a. Subdivide, either by drainage channels or at least by intermediate dikes at the
Pawnee, Grasslands, and Buckingham facilities, in accordance with NFPA-30
(2012 edition), within 12 months of receipt of the Final Order.
b. Submit to the Director, Central Region, evidence of remediated locations to
demonstrate compliance with NFPA-30 (2012 edition) and 195.264(b)(1)(i).
2. With respect to the violation of § 195.264(b)(1)(ii) (Item 2), Respondent must:
a. Provide adequate drainage routes and slope to a remote impounding area so
that spilled liquid does not collect around tanks at the Sterling Facility, in
accordance with NFPA-30 (2012 edition), within 12 months of receipt of the
Final Order.
b. Submit to the Director, Central Region, evidence of remediated locations to
demonstrate compliance with NFPA-30 (2012 edition) and 195.264(b)(1)(ii).
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
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.
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. The written petition must be received no later than
20 days after receipt of the 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 filing of a
petition automatically stays the payment of any civil penalty assessed. The other 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.
July 7, 2022
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

32021089NOPV_Closure Letter_10252023_(21-210502)_text.pdf

VIA ELECTRONIC MAIL TO: crystal.heter@tallgrass.com; kale.stanton@tallgrass.com
October 25, 2023
Crystal Heter, Chief Operating Officer
Tallgrass Pony Express Pipeline, LLC
4200 W. 115th St. Suite 350
Leawood, KS 66211
RE: CPF 3-2021-089-NOPV
Dear Ms. Heter:
On July 7, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to Tallgrass Pony Express Pipeline, LP, a subsidiary of Tallgrass Energy, LP, (Tallgrass) a Final
Order in the above-referenced case. This Order included a Compliance Order and Civil Penalty
assessment. Based on our review of the documentation provided and confirmation of payment of
the civil penalty on July 11, 2022, it has been determined that Tallgrass has complied with the
terms of the Final 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, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Kale Stanton, Director, Asset Integrity, kale.stanton@tallgrass.com
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