{"operation":"document","citation":"CPF 320211003","title":"TRAILBLAZER PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-02-26","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.481(b), 192.605(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320211003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320211003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320211003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320211003","body":"Notice of Probable Violation involving TRAILBLAZER PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.481(b),  192.605(a). The case was opened on 2021-02-26 and is reported as closed as of 2022-11-16. Proposed civil penalty: $36,600. Assessed civil penalty: $36,600. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320211003_AMENDED NOPV PCP PCO_0727021_(17-155390S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_AMENDED%20NOPV%20PCP%20PCO_0727021_(17-155390S).pdf\n\n320211003_AMENDED NOPV PCP PCO_0727021_(17-155390S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_AMENDED%20NOPV%20PCP%20PCO_0727021_(17-155390S)_text.pdf\n\n320211003_Closure Letter_11162022_(17-155390S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_Closure%20Letter_11162022_(17-155390S).pdf\n\n320211003_Closure Letter_11162022_(17-155390S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_Closure%20Letter_11162022_(17-155390S)_text.pdf\n\n320211003_Final Order_03162022_(17-155390S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_Final%20Order_03162022_(17-155390S).pdf\n\n320211003_Final Order_03162022_(17-155390S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_Final%20Order_03162022_(17-155390S)_text.pdf\n\n320211003_NOPV PCP PCO_02262021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_NOPV%20PCP%20PCO_02262021.pdf\n\n320211003_NOPV PCP PCO_02262021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_NOPV%20PCP%20PCO_02262021_text.pdf\n\n320211003_Op Resp Req for Mtg Req for Hrng Prelim Stmnt of Issues_03262021_(17-155390S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_Op%20Resp%20Req%20for%20Mtg%20Req%20for%20Hrng%20Prelim%20Stmnt%20of%20Issues_03262021_(17-155390S).pdf\n\n320211003_Operator Response to Notice and Withdrawal of Request for Hearing_07302021_(17-155390S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_Operator%20Response%20to%20Notice%20and%20Withdrawal%20of%20Request%20for%20Hearing_07302021_(17-155390S).pdf\n\n320211003_PHC Hearing Scheduled_05202021_(17-155390S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_PHC%20Hearing%20Scheduled_05202021_(17-155390S).pdf\n\n320211003_PHC Hearing Scheduled_05202021_(17-155390S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211003/320211003_PHC%20Hearing%20Scheduled_05202021_(17-155390S)_text.pdf\n\n320211003_Final Order_03162022_(17-155390S)_text.pdf\n\nMarch 16, 2022\nVIA ELECTRONIC MAIL TO: bill.moler@tallgrassenergylp.com\nMr. William Moler\nDirector and Chief Executive Officer\nTallgrass Energy, LP\nTrailblazer Pipeline Company\n4200 W. 115th Street, Suite 350\nLeawood, Kansas 66211\nRe: CPF No. 3-2021-1003\nDear Mr. Moler:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $36,600, and specifies actions that need to be taken by your\nsubsidiary, Trailblazer Pipeline Company, to comply with the pipeline safety regulations. The\npenalty payment terms are set forth in the Final Order. When the civil penalty has been paid and\nthe terms 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 acknowledgment 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, LP,\njennifer.eckels@tallgrassenergylp.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 )\nTrailblazer Pipeline Company, ) CPF No. 3-2021-1003\na subsidiary of Tallgrass Energy, LP, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom March 7, 2017 through August 31, 2017, pursuant to 49 U.S.C. § 60117, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of\nTrailblazer Pipeline Company’s natural gas pipeline system from Cheyenne, Wyoming to\nBeatrice, Nebraska (Trailblazer). Trailblazer, a subsidiary of Tallgrass Energy, LP, (Tallgrass, or\ncollectively, Respondent) has an approximately 450-mile-long pipeline that interconnects with\nlarge interstate natural gas pipelines that transport gas to major consumer markets in the upper\nMidwest and Northeast.1 Tallgrass Energy, LP, owns and operates more than 8,300 miles of\nnatural gas pipeline and more than 850 miles of crude pipeline, as well as natural gas midstream\nand natural gas liquids facilities, across Wyoming, Colorado, Nebraska, Kansas, Oklahoma,\nMissouri, Illinois, Indiana, and Ohio.2\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated February 26, 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 Trailblazer had violated 49 C.F.R. §§ 192.481(b) and 192.605(a) and\nproposed assessing a civil penalty of $36,600 for one of the alleged violations. The Notice also\nproposed ordering Respondent to take certain measures to correct one of the alleged violations.\nTallgrass responded to the Notice by letter dated March 26, 2021 (Response). Tallgrass\ncontested one of the allegations of violation and requested a reduction in the proposed civil\n1 Violation Report, page 1, on file with PHMSA.\n2 Tallgrass Energy website, About Tallgrass Energy, www.tallgrassenergy.com/About.aspx,; Tallgrass Energy\nSystem Map, https://www.tallgrassenergy.com/Documents/Tallgrass System Map 11x17 v620q.pdf (Last accessed\nJanuary 24, 2022).\n\n\n\nCPF 3-2021-1003\nPage 2\npenalty. Tallgrass requested a hearing as well as an opportunity for informal technical\ndiscussions prior to a hearing to clarify factual issues alleged in the Notice.\nOn various dates between March 26, 2021 and July 27, 2021, OPS and Tallgrass engaged in\ninformal technical discussions regarding the issues raised in the Response. As a result of those\ndiscussions, the Director issued an Amended Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Amended Notice) by letter dated July 27, 2021. The\nAmended Notice contained the same allegations of violation, proposed civil penalty, and\nproposed compliance order as the original Notice, but did not contain certain factual statements\nthat were clarified during the informal technical discussions.\nBy letter dated July 30, 2021, Tallgrass withdrew its request for a hearing, stated that it was no\nlonger contesting either of the two allegations of violation, but reiterated its request for a\nreduction in the proposed civil penalty (Amended Response). The Amended Response thereby\nauthorized the entry of this Final Order without further notice.\nFINDINGS OF VIOLATION\nIn its Amended Response, Tallgrass did not contest the allegations in the Amended Notice that it\nviolated 49 C.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.481(b), which states:\n§ 192.481 Atmospheric corrosion control: Monitoring.\n(a)….\n(b) During inspections the operator must give particular attention to pipe\nat soil-to-air interfaces, under thermal insulation, under disbonded coatings,\nat pipe supports, in splash zones, at deck penetrations, and in spans over\nwater.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.481(b) by failing to give particular\nattention to pipe at soil-to-air interfaces, under thermal insulation, under disbonded coatings, at\npipe supports, in splash zones, at deck penetrations, and in spans over water. Specifically, the\nNotice alleged that Tallgrass failed to inspect for atmospheric corrosion (AC) at pipe supports at\nthe 601 Compressor Station, Cheyenne Station/TB1 pig launchers, NNG Gage interconnect, and\nNGPL Gage interconnect. The Notice further alleged that Tallgrass also failed to inspect for AC\nunder thermal insulation at the 601 Compressor Station.\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 to pipe at soil-to-air interfaces, under thermal insulation, under disbonded\ncoatings, at pipe supports, in splash zones, at deck penetrations, and in spans over water.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states in\nrelevant part:\n\n\n\nCPF 3-2021-1003\nPage 3\n§ 192.605 Procedural manual of operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a\nmanual of written procedures for conducting operations and maintenance\nactivities and for emergency response….\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow for each\npipeline, a manual of written procedures for conducting operations and maintenance activities\nand for emergency response. Specifically, the Notice alleged that Tallgrass failed to follow its\nOperations and Maintenance (O&M) manual procedure O&M 301. The Notice alleged further\nthat O&M 301 referenced form OM300-01 Automatic Valve Service Report but that\nRespondent’s records indicated that three different forms were used for valve service reporting in\n2015 and 2016.\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. § 192.605(a) by failing to follow for\neach pipeline, a manual of written procedures for conducting operations and maintenance\nactivities and for emergency response.\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 $36,600 for the violation of Item 1, cited above.\nItem 1: The Notice proposed a civil penalty of $36,600 for Respondent’s violation of 49 C.F.R.\n§ 192.481(b), for failing to give particular attention to pipe at soil-to-air interfaces, under thermal\ninsulation, under disbonded coatings, at pipe supports, in splash zones, at deck penetrations, and\nin spans over water.\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n\n\n\nCPF 3-2021-1003\nPage 4\nIn its Response and Amended Response, Tallgrass requested a reduction in the civil penalty\nbased on a modification of the gravity factor. Tallgrass argued that the gravity factor should be\nreduced from a factor of seven to a factor of one because pipeline safety was minimally\naffected.4 In support of this argument, Tallgrass referenced photos in Exhibit A-1 of the\nAmended Notice and argued that the locations cited in the Amended Notice only had signs of\n“rust and discoloration” not signs of wall loss, peeling, or pitting.5 Tallgrass also pointed to\nPHMSA guidance which provides that rust is not indicative of active corrosion where there are\nno signs of coating deterioration, metal loss, or pitting.6\nIn addition, Tallgrass discussed the actions it had taken since the 2017 inspection.7 Specifically,\nTallgrass noted that it had installed Fiberglass Reinforced Plastic at the locations identified in the\nAmended Notice, with the exception of the NNG meter run which it plans to replace with an\nultrasonic meter, and observed no signs of active corrosion, metal loss, or pitting during the\ninstallation process.8 Tallgrass stated that it also installed inspection ports in the thermal\ninsulation at the 601 Compressor Station so that the pipe under thermal insulation may be\ninspected for corrosion.9 Lastly, Tallgrass averred that if any of the locations in the Amended\nNotice developed active corrosion, it would have been promptly identified and remediated.10 In\nlight of the aforementioned factors, Tallgrass request that the gravity factor, and thereby the\npenalty, be reduced.\nI will address Respondent’s arguments in reverse order. I acknowledge the various actions\nRespondent has taken; however, I do not find that post-inspection corrective actions warrant the\nreduction of the civil penalty.11\n4 Gravity considers the severity of the violation. A gravity factor of seven is for violations that did not occur within\na high consequence area (HCA) or “could affect” HCA, and were not within an area required to be covered by a gas\ndistribution system’s integrity management program. A gravity factor of one is for violations in which pipeline\nsafety was minimally affected.\n5 Response, at 2 citing PHMSA Exhibit A-1, at pgs. 1-6, 21, on file with PHMSA.\n6 Response, at 2 citing definition of atmospheric corrosion in PHMSA Part 192 Corrosion Enforcement Guidance at\npg. 121 of 161 (Dec. 7, 2015), (“Atmospheric Corrosion is an area of metal loss due to general corrosion, localized\ncorrosion pitting, or peeling scale on the steel surface that has damaged the pipe. Surface oxide is corrosion and if\nallowed to continue may affect the safe operation of the pipeline at some point in the future. Oxidation (or “light\nsurface oxide”) can be defined as the slow rusting of pipe which is not yet considered to be atmospheric corrosion\nbecause there is no evidence of metal loss at this time.”), available at\nhttps://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/Corrosion_Enforcement_Guidance_Part192_12_7_2015.\npdf.\n7 Response, at 2.\n8 Id.\n9 Id.\n10 Id.\n11 See, In the Matter of Phillips 66 Pipeline, LLC, CPF No. 3-2019-5006, available at\nhttps://primis.phmsa.dot.gov/comm/reports/enforce/documents/320195006/320195006 Final%20Order 05112020.p\ndf (Last accessed March 1, 2022).\n\n\n\nCPF 3-2021-1003\nPage 5\nConcerning Respondent’s argument that the gravity factor should be reduced because active\ncorrosion was not present, I am unconvinced that a penalty reduction is warranted. The Violation\nReport alleged that pipeline safety had been compromised in an area other than a high\nconsequence area and this allegation is supported by color photographs clearly showing staining\nfrom atmospheric corrosion. Further, it is undisputed that Tallgrass failed to give particular\nattention to specific locations, many of which are not viewable to the naked eye without\nremoving support or thermal insulation, for purposes of determining the presence of AC. The\nregulation is preventative, designed to ensure that atmospheric corrosion does not develop.\nMoreover, as I have previously stated “atmospheric corrosion inspections are a fundamental part\nof basic pipeline maintenance and that ensuring that any surface corrosion is detected and\naddressed before becoming a potential integrity threat is a key part of safely operating a\npipeline.” (Emphasis added). 12 For these reasons, I find that there is no justification to reduce\nthe gravity factor and therefore no justification to reduce the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $36,600 for violation of 49 C.F.R. §192.481(b)\nPayment of the civil penalty must be made within 20 days of receipt of the Final Order. Federal\nregulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through\nthe Federal Reserve Communications System (Fedwire), to the account of the U.S. Treasury.\nDetailed instructions are contained in the enclosure. Questions concerning wire transfers should\nbe directed to: Financial Operations Division (AMK-325), Federal Aviation Administration,\nMike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma\n79169. The Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $36,600 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 2 in the Notice for violations of 49\nC.F.R. §192.605(a). Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof gas or who owns or operates a pipeline facility is required to comply with the applicable\nsafety 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:\n12 See, In the Matter of Express Holdings, LLC, Decision on Reconsideration, CPF No. 3-2020-5005, available at\nhttps://primis.phmsa.dot.gov/comm/reports/enforce/documents/320205005/320205005 Decision%20on%20Petition\n%20for%20Reconsideration 07262021 (16-153538S) text.pdf, (Last accessed March 1, 2022).\n\n\n\nCPF 3-2021-1003\nPage 6\n1. With respect to the violation of § 192.605(a) (Item 2), Respondent must re-inspect\nall line break or automatic shutoff valves, verify the correct pressure drop and\nmaintenance activities per a PHMSA approved procedure utilizing PHMSA approved\nstandardized forms. This work must be completed within six months of receipt of the\nFinal Order. All records and outcomes of this required activity must be provided to\nPHMSA within one month after all have been completed.\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\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, no later than 20 days after receipt of this Final\nOrder by Respondent. Any petition submitted must contain a statement of the issue(s) and meet\nall other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays the\npayment of any civil penalty assessed. The other terms of the order, including corrective action,\nremain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMarch 16, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320211003_PHC Hearing Scheduled_05202021_(17-155390S)_text.pdf\n\nMay 20, 2021\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, CO 80228\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, MO 64106-2641\nRe: Notice of Hearing, Tallgrass Energy, LP\nCPF No. 3-2021-1003\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 August 19, 2021, beginning at 8:30 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 August 9, 2021), 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,\nLarry White\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,\njoseph.hainline@dot.gov\n\n320211003_Closure Letter_11162022_(17-155390S)_text.pdf\n\nVIA ELECTRONIC MAIL TO: matt@tallgrass.com ;\njennifer.eckels@tallgrassenergylp.com\nNovember 16, 2022\nMr. Matt Sheehy\nPresident and Chief Executive Officer\nTrailblazer Pipeline Company\n370 Van Gordon Street\nLakewood, CO 80228\nRe: CPF 3-2021-1003\nDear Mr. Sheehy:\nOn March 16, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Trailblazer Pipeline Company (Trailblazer), a Final Order in the above-referenced case.\nThis Order included a Civil Penalty assessment and Compliance Order requirement to take\ncorrective actions on Trailblazer’s pipeline. Based on our review of the documentation provided\nby Trailblazer and confirmation of payment of the civil penalty, it has been determined that\nTrailblazer 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: Ms. Jennifer Eckels, Manager- Compliance, Tallgrass Energy, LP,\njennifer.eckels@tallgrassenergylp.com\n\n320211003_NOPV PCP PCO_02262021_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: Bill.moler@tallgrassenergylp.com and\njennifer.eckels@tallgrassenergylp.com\nFebruary 26, 2021\nWilliam Moler\nPresident/CEO\nTallgrass Energy, LP\nTrailblazer Pipeline Company\n4200 W. 115th Street, Suite 350\nLeawood, KS 6611\nCPF 3-2021-1003\nDear Mr. Moler:\nFrom March 7, 2017, through August 31, 2017, 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 your Trailblazer natural gas pipeline system\nfrom Cheyenne, Wyoming to Beatrice, Nebraska.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n\n\n\n1. §192.481 Atmospheric corrosion control: Monitoring.\n(b) During inspections the operator must give particular attention to pipe at soil-to-\nair interfaces, under thermal insulation, under disbonded coatings, at pipe supports,\nin splash zones, at deck penetrations, and in spans over water.\nTallgrass Energy, LP (Tallgrass) failed to give particular attention, during inspections, to\npipe at soil-to-air interfaces, under thermal insulation, under disbonded coatings, at pipe\nsupports, in splash zones, at deck penetrations, and in spans over water. Specifically,\nTallgrass failed to inspect for atmospheric corrosion at pipe supports at 601 Compressor\nStation, Cheyenne Station/TB1 pig launchers, NNG Gage interconnect, and NGPL Gage\ninterconnect. Tallgrass also failed to inspect for atmospheric corrosion under thermal\ninsulation at 601 Compressor Station.\nDuring the PHMSA field evaluation of the 601 Compressor Station and the Cheyenne\nHub/TB-1, signs of atmospheric corrosion were present at the pipe supports on the pig\nlaunchers. The pig launchers had pipe supports that did not appear to have been removed\nor lowered to inspect for atmospheric corrosion. Records from 2014-2017 were reviewed\nand confirmed that inspecting under pipeline supports had not been documented.\nDuring the PHMSA field evaluation of NNG Gage interconnect, and NGPL Gage\ninterconnect, the pipeline displayed signs of atmospheric corrosion at the pipe supports.\nThe supports did not appear to be removed or lowered to inspect for atmospheric\ncorrosion on the pipeline. Records from 2014-2017 were reviewed and confirmed that\ninspecting under pipeline supports had not been documented for these locations.\nDuring the PHMSA field evaluation of the 601 Compressor Station, Tallgrass personnel\nfailed to inspect for atmospheric corrosion under pipe under thermal insulation. The\nOM_300-03 – Valve Inspection Report used to record atmospheric corrosion inspections\ndid not indicate that insulation was removed for examination. Furthermore, after\naddressing the thermal insulation on the pipeline at Compressor Station 601, the field\npersonnel verbally confirmed that insulation is not removed for atmospheric corrosion\ninspections.\nAccordingly, there was no evidence to show Tallgrass gave particular attention, during\ninspections, to pipe at soil-to-air interfaces, under thermal insulation, under disbonded\ncoatings, at pipe supports, in splash zones, at deck penetrations, and in spans over water.\n2\n\n\n\n2. §192.605 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed and\nupdated by the operator at intervals not exceeding 15 months, but at least one each\ncalendar year. This manual must be prepared before operations of a pipeline system\ncommence. Appropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\nTallgrass failed to follow for each pipeline, a manual of written procedures for\nconducting operations and maintenance activities and for emergency response.\nSpecifically, Tallgrass failed to follow its Operations and Maintenance (O&M) manual\nprocedure O&M 301.\nTallgrass’s O&M 301 titled, “Inspecting and Servicing Emergency Valves”, Section 3.3\ntitled, “Service Procedure” states, “For valves with an automatic operator, refer to the\nmanufacturer’s manual for instructions on inspecting and servicing the operator (e.g.,\nBettis, Keystone, Nordstrom, Shafer).”\nDuring the valve maintenance PHMSA record review, documentation was provided that\nshowed Tallgrass did not comply with the manufacturers’ manual for instructions on\ninspecting and servicing. The rate of drop recorded values were not in accordance with\nthe “Automatic Linebreak Control Adjustment and Set-up Procedure ALBC 1983-\nPresent” (ALBC) manufacturer’s recommendations as provided by Tallgrass. The ALBC\nmanufacturer’s recommendations displayed that a #72 orifice and 1640 cubic inch tank\nwere used in conjunction with each other. This configuration was confirmed verbally by\nTallgrass field personnel to be the correct sizes for the Trailblazer pipeline. The ALBC\nmanufacturer’s recommendations require that the rate of drop for the #72 orifice and\n1640 cubic inch tank should never exceed 18 psi/min. The rate of drop exceeded the\n18psi/min on the following occasions:\n The Automatic Valve Service Report dated 9/8/2016 documented a rate of drop of\n25.3 psi/min for Motor Line Valve 17.\n The Automatic Valve Service Report dated 8/16/2016 documented a rate of drop\nof 19.3 psi/min for TB 1.\n The Automatic Valve Service Report dated 9/30/2015 documented a rate of drop\nof 21.6 psi/min for TB 1.\n The Automatic Valve Service Report dated 9/15/2015 documented a rate of drop\nof 25.6 psi/min for TB 2.\n The Automatic Valve Service Report dated 9/30/2015 documented a rate of drop\nof 28.6 psi/min for TB 3\n3\n\n\n\n The Automatic Valve Service Report dated 9/13/2016 documented a rate of drop\nof 20.3 psi/min for TB 4.\nOn December 20, 2017, PHMSA received hand-written notes on a different document\nregarding manufacturer’s recommendations, “Shafer Valve Company Adjustment and\nSetting Procedure for Shafer Automatic Line Break Control” (Shafer). The hand-written\nnotes on the Shafer manufacturer recommendations stated that the #72 orifice and 1640\ncubic inch tank should be calibrated between 18-30 psi. However, The Automatic Valve\nService Reports for TB 23, TB 21, and TB 18 for calendar years 2014, 2015, and 2016\nwere all calibrated below 18 psi. MLV 17 was also calibrated below 18 psi in 2014 and\n2015.\nFurthermore, Tallgrass failed to follow O&M 301. O&M 301 references form OM300-01\nAutomatic Valve Service Report. However, records indicated that three different forms\nwere used for 2015 and 2016. Form OM300-01 and the other two forms used do not\ncontain the same information including orifice size.\nTallgrass has experienced abnormal operations due to unintended valve closures.\nUnintentional valve closures can lead to loss of service to customers, including sensitive\ncustomers such as hospitals, schools, chemical plants and power plants.\nAccordingly, Tallgrass failed to follow its manual of written procedures for conducting\noperations and maintenance activities and for emergency response.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a\nrelated series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto exceed $2,090,022. We have reviewed the circumstances and supporting documentation\ninvolved for the above probable violation(s) and recommend that you be preliminarily assessed a\ncivil penalty of $36,600 as follows:\nItem number PENALTY\n1 $36,600\n4\n\n\n\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Tallgrass Energy, LP. Please\nrefer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Enforcement Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If\nyou believe that any portion of your responsive material qualifies for confidential treatment\nunder 5 U.S.C. 552(b), along with the complete original document you must provide a second\ncopy of the document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that\nyou submit your correspondence to my office within 30 days from receipt of this Notice. This\nperiod may be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 3-2021-1003 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\n5\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Tallgrass Energy, LP a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of Tallgrass Energy,\nLP with the pipeline safety regulations:\nA. B. In regard to Item 2 of the Notice pertaining to Tallgrass Energy, LP failing to\nfollow its Operations and Maintenance (O&M) manual procedure O&M 301,\nTallgrass Energy, LP must re-inspect all line break or automatic shutoff valves,\nverify the correct pressure drop and maintenance activities per a PHMSA\napproved procedure utilizing PHMSA approved standardized forms. This work\nmust be completed within 6 months of receipt of the Final Order. All records and\noutcomes of this required activity must be provided to PHMSA within 1 month\nafter all have been completed.\nIt is requested (not mandated) that Tallgrass Energy, LP maintain documentation\nof the safety improvement costs associated with fulfilling this Compliance Order\nand submit the total to Greg A. Ochs, Director, Central Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n6\n\n320211003_AMENDED NOPV PCP PCO_0727021_(17-155390S)_text.pdf\n\nAMENDED NOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: Bill.moler@tallgrassenergylp.com and\njennifer.eckels@tallgrassenergylp.com\nJuly 27, 2021\nWilliam Moler\nPresident/CEO\nTallgrass Energy, LP\nTrailblazer Pipeline Company\n4200 W. 115th Street, Suite 350\nLeawood, KS 6611\nCPF 3-2021-1003\nDear Mr. Moler:\nFrom March 7, 2017, through August 31, 2017, 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 your Trailblazer natural gas pipeline system\nfrom Cheyenne, Wyoming to Beatrice, Nebraska.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n\n\n\n1. § 192.481 Atmospheric corrosion control: Monitoring.\n(a) . . . .\n(b) During inspections the operator must give particular attention to pipe at soil-to-\nair interfaces, under thermal insulation, under disbonded coatings, at pipe supports,\nin splash zones, at deck penetrations, and in spans over water.\nTallgrass Energy, LP (Tallgrass) failed to give particular attention, during inspections, to\npipe at soil-to-air interfaces, under thermal insulation, under disbonded coatings, at pipe\nsupports, in splash zones, at deck penetrations, and in spans over water. Specifically,\nTallgrass failed to inspect for atmospheric corrosion at pipe supports at 601 Compressor\nStation, Cheyenne Station/TB1 pig launchers, NNG Gage interconnect, and NGPL Gage\ninterconnect. Tallgrass also failed to inspect for atmospheric corrosion under thermal\ninsulation at 601 Compressor Station.\nDuring the PHMSA field evaluation of the 601 Compressor Station and the Cheyenne\nHub/TB-1, signs of atmospheric corrosion were present at the pipe supports on the pig\nlaunchers. The pig launchers had pipe supports that did not appear to have been removed\nor lowered to inspect for atmospheric corrosion. Records from 2014-2017 were reviewed\nand confirmed that inspecting under pipeline supports had not been documented.\nDuring the PHMSA field evaluation of NNG Gage interconnect, and NGPL Gage\ninterconnect, the pipeline displayed signs of atmospheric corrosion at the pipe supports.\nThe supports did not appear to be removed or lowered to inspect for atmospheric\ncorrosion on the pipeline. Records from 2014-2017 were reviewed and confirmed that\ninspecting under pipeline supports had not been documented for these locations.\nDuring the PHMSA field evaluation of the 601 Compressor Station, Tallgrass personnel\nfailed to inspect for atmospheric corrosion under pipe under thermal insulation. The\nOM_300-03 – Valve Inspection Report used to record atmospheric corrosion inspections\ndid not indicate that insulation was removed for examination. Furthermore, after\naddressing the thermal insulation on the pipeline at Compressor Station 601, the field\npersonnel verbally confirmed that insulation is not removed for atmospheric corrosion\ninspections.\nAccordingly, there was no evidence to show Tallgrass gave particular attention, during\ninspections, to pipe at soil-to-air interfaces, under thermal insulation, under disbonded\ncoatings, at pipe supports, in splash zones, at deck penetrations, and in spans over water.\n2\n\n\n\n2. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed and\nupdated by the operator at intervals not exceeding 15 mon","truncated":true,"body_characters":45501}