{"operation":"document","citation":"CPF 32022006NOPV","title":"OKTEX PIPELINE COMPANY, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-04-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(a), 192.709(c), 192.917(b), 192.947(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022006nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022006nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022006nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022006NOPV","body":"Notice of Probable Violation involving OKTEX PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.709(c),  192.917(b),  192.947(d). The case was opened on 2022-04-18 and is reported as closed as of 2022-11-22. Proposed civil penalty: $12,300. Assessed civil penalty: $12,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022006NOPV_Closure Letter_11222022_(21-200783).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_Closure%20Letter_11222022_(21-200783).pdf\n\n32022006NOPV_Closure Letter_11222022_(21-200783)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_Closure%20Letter_11222022_(21-200783)_text.pdf\n\n32022006NOPV_Final Order_08152022_(21-200783).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_Final%20Order_08152022_(21-200783).pdf\n\n32022006NOPV_Final Order_08152022_(21-200783)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_Final%20Order_08152022_(21-200783)_text.pdf\n\n32022006NOPV_Operator Response to Notice_05162022_(21-200783).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_Operator%20Response%20to%20Notice_05162022_(21-200783).pdf\n\n32022006NOPV_PCP PCO_04182022_(21-200783).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_PCP%20PCO_04182022_(21-200783).pdf\n\n32022006NOPV_PCP PCO_04182022_(21-200783)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022006NOPV/32022006NOPV_PCP%20PCO_04182022_(21-200783)_text.pdf\n\n32022006NOPV_Closure Letter_11222022_(21-200783)_text.pdf\n\nVIA ELECTRONIC MAIL TO: teri.anderson@oneok.com\nPierce.Norton@oneok.com; scottschingen@oneok.com;\nNovember 22, 2022\nPierce H. Norton II\nPresident and Chief Executive Officer\nOKTEX Pipeline Company, LLC\n100 West Fifth Street\nTulsa, Oklahoma 74103\nRE: CPF 3-2022-006-NOPV\nDear Mr. Norton:\nOn August 5, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto OKTEX Pipeline Company, LLC (OKTEX) 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 provided by OKTEX and confirmation of payment of the civil penalty made on\nSeptember 1, 2022, it has been determined that OKTEX 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, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Scott Schingen, Sr. Vice President, Operations (scottschingen@oneok.com)\nTeri Anderson, Sr. Manager, DOT Compliance (teri.anderson@oneok.com)\n\n32022006NOPV_Final Order_08152022_(21-200783)_text.pdf\n\nAugust 15, 2022\nVIA ELECTRONIC MAIL TO: pierce.norton@oneok.com\nMr. Pierce H. Norton II\nPresident and Chief Executive Officer\nOkTex Pipeline Company, L.L.C.\n100 West Fifth Street\nTulsa, Oklahoma 74103\nRe: CPF No. 3-2022-006-NOPV\nDear Mr. Norton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $12,300, and specifies actions that need to be taken by\nOkTex Pipeline Company, L.L.C., 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 date\nof 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\nMr. Scott D. Schingen, Senior Vice President, Operations, ONEOK, Inc.,\nscott.schingen@oneok.com\n\n\n\nMr. Gary K. Numedahl, Director, DOT Compliance, ONEOK, Inc.,\ngary.numedahl@oneok.com\nMr. Neal Jones, DOT Compliance Coordinator, ONEOK, Inc., neal.jones@oneok.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 )\nOkTex Pipeline Company, L.L.C., ) CPF No. 3-2022-006-NOPV\na subsidiary of ONEOK, Inc., )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom April 21, 2021, through May 27, 2021, pursuant to 49 U.S.C. § 60117, representatives of\nthe Pipeline 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 OkTex\nPipeline Company, L.L.C. (OkTex or Respondent), a subsidiary of ONEOK, Inc.,1 in El Paso,\nTexas. The OkTex inspection was performed on system #2690, which consists of approximately\n106.5 miles of natural gas pipelines in El Paso, Texas, and various locations along the\nTexas/Oklahoma border.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated April 18, 2022,2 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 OkTex had committed three violations of 49 C.F.R. Part 192, proposed\nassessing a civil penalty of $12,300 for the alleged violations, and proposed ordering Respondent\nto take certain measures to correct the alleged violations. The Notice also included an additional\ntwo warning items pursuant to 49 C.F.R. § 190.205, which warned the operator to correct the\nprobable violations or face possible future enforcement action.\nONEOK, Inc., responded on behalf of OkTex to the Notice by letter dated May 16, 2022\n(Response). The company did not contest the allegations of violation but provided information\nconcerning the corrective actions it had taken. Respondent did not request a hearing and\ntherefore has waived its right to one.\n1 US SEC Form 10-K, ONEOK, Inc., available at https://otp.tools.investis.com/clients/us/oneok inc2/SEC/sec-\nshow.aspx?Type=html&FilingId=15621391&CIK=0001039684&Index=10000 (last accessed August 4, 2022).\n2 The Notice letter is mistakenly dated April 18, 2021. The letter was signed and issued on April 18, 2022.\n\n\n\nIn its Response, Respondent, did not contest the allegations in the Notice that it violated 49\nC.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.465, which states:\n§ 192.465 External corrosion control: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at\nleast once each calendar year, but with intervals not exceeding 15 months,\nto determine whether the cathodic protection meets the requirements of §\n192.463. However, if those tests intervals are impracticable for separately\nprotected short sections of mains or transmission lines, not in excess of 100\nfeet (30 meters), or separately protected service lines, these pipelines may\nbe surveyed on a sampling basis. At least 10 percent of these protected\nstructures, distributed over the entire system must be surveyed each\ncalendar year, with a different 10 percent checked each subsequent year, so\nthat the entire system is tested in each 10-year period.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.465 by failing to test each pipeline\nunder cathodic protection (CP) at least once each calendar year, but with intervals not exceeding\n15 months, to determine whether the CP met the requirements of § 192.463. Specifically, the\nNotice alleged that OkTex did not consider IR drop as required at 48 test points on six pipeline\nsegments for four years.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nthe evidence, I find that Respondent violated 49 C.F.R. § 192.465(a) by failing to test each\npipeline under CP at least once each calendar year, but with intervals not exceeding 15 months,\nto determine whether the CP met the requirements of § 192.463.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.709, which states in\nrelevant part:\n§ 192.709 Transmission lines: Record keeping.\nEach operator shall maintain the following records for transmission\nlines for the periods specified:\n(a) ....\n(c) A record of each patrol, survey, inspection, and test required by\nsubparts L and M of this part must be retained for at least 5 years or until\nthe next patrol, survey, inspection, or test is completed, whichever is longer.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.709 by failing to maintain records\nfor each inspection for at least five years. Specifically, the Notice alleged that upon inspection of\nRespondent’s overpressure control records, there were 34 inspection records that were not\nmaintained at various facilities.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nthe evidence, I find that Respondent violated 49 C.F.R. § 192.709(c) by failing to maintain\n\n\n\nrecords for each inspection for at least five years.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. §192.947, which states in\nrelevant part:\n§ 192.947 What records must an operator keep?\nAn operator must maintain, for the useful life of the pipeline, records\nthat demonstrate compliance with the requirements of this subpart. At\nminimum, an operator must maintain the following records for review\nduring an inspection.\n(a) ....\n(d) Documents to support any decision, analysis and process developed\nand used to implement and evaluate each element of the baseline assessment\nplan and integrity management program. Documents include those\ndeveloped and used in support of any identification, calculation,\namendment, modification, justification, deviation and determination made,\nand any action taken to implement and evaluate any of the program\nelements;\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.947 by failing to document the\njustifications and determinations made for the tool/assessment methods selected to maintain the\npipeline’s integrity. Specifically, the Notice alleged that Respondent conducted an annual\nreview of its Continual Assessment Plan (CAP), but the checklist generated by the Respondent\ndid not show any rationale for assessment methods chosen to address the threats of each\nsegment.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nthe evidence, I find that Respondent violated 49 C.F.R. § 192.947(d) by failing to document the\njustifications and determinations made for the tool/assessment methods selected to maintain the\npipeline’s integrity.\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\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n\n\n\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 $12,300 for the violations cited above.\nItem 3: The Notice proposed a civil penalty of $12,300 for Respondent’s violation of 49 C.F.R.\n§ 192.709(c), for failing to maintain records for each inspection for at least five years.\nRespondent neither contested the allegation nor presented any evidence or argument justifying a\nreduction in the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $12,300 for violation of 49 C.F.R. § 192.709.\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 $12,300 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 Items 1 and 5 for violations of 49 C.F.R.\n§§ 192.465 and 192.947 respectively. Under 49 U.S.C. § 60118(a), each person who engages in\nthe transportation of gas or who owns or operates a pipeline facility is required to comply with\nthe applicable safety standards established under chapter 601.\nWith regard to the violation of § 192.465 (Item 1), Respondent argued the compliance terms\nshould be modified. Respondent argued that the recommended CIS for the reconsideration of IR\nof the annual surveys will not provide adequate results as the short line segments at issue are\nanode protected. Respondent stated that the CIS requires the ability to interrupt the current\nsource to determine the instant off potential, which is not possible. Respondent, therefore,\nproposed an alternative method to install corrosion coupons and test stations to demonstrate the\neffectiveness of the of the CP on the anode protected pipeline segments.\nBased on my review of Respondent’s alternative method to demonstrate the effectiveness of the\n\n\n\nCP on the anode protected pipelines, I find Respondent’s proposed alternative to be acceptable.\nAccordingly, the Compliance Order is modified as set forth below.\nPursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is\nordered to take the following actions to ensure compliance with the pipeline safety regulations\napplicable to its operations:\n1. With respect to the violation of § 192.465 (Item 1), Respondent must install the\nfollowing coupon test stations:\n• BNT04A-100 – Gillette 2” Lateral - 0.57miles – 3 test point coupon\nstations;\n• BNT04B-100 – Gato 2” Lateral – 0.1 miles – 3 test point coupon stations;\n• MNT04-1 – Norteno #4 – 3.73 miles – 17 test point coupon stations;\n• MNT05-1 – Norteno #5 – 1.1 miles – 5 test point coupon stations;\n• OK-02 – 2.50 miles – 6 test point coupon stations; and\n• OK-03 – 1.75 Miles – 4 test point coupon station.\nRespondent must complete this installation within 180 days of receipt of the Final\nOrder.\n2. With respect to the violation of § 192.947 (Item 5), Respondent must review its\nCAP and submit documentation describing the justification and rationale for each\nassessment method selected to address the identified threats on the covered pipeline\nsegments within 90 days of receipt of the Final Order.\n3. When Proposed Compliance Order items extend beyond 90 days to complete,\nRespondent must begin and continue submitting quarterly reports until all work\nnecessary to implement the Compliance Order items is complete and the Final Order\nis closed. Quarterly reports shall be submitted to Gregory A. Ochs, Director, OPS\nCentral Region, Pipeline and Hazardous Materials Safety Administration.\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.\n\n\n\nWARNING ITEMS\nWith respect to Items 2 and 4, the Notice alleged probable violations of Part 192, but identified\nthem as warning items pursuant to § 190.205. The warnings were for:\n49 C.F.R. § 192.709(c) (Item 2) ─ Respondent’s alleged failure to maintain\nrecords of each patrol, survey, inspection, and test required by subparts Land M\nfor at least five years or until the next patrol, survey, inspection, or test is\ncompleted, whichever is longer; and\n49 C.F.R. § 192.917(b) (Item 4) ─ Respondent’s alleged failure to gather and\nintegrate existing data and information on the entire pipeline that could be\nrelevant to the covered segment.\nIf OPS finds a violation of any of these items in a subsequent inspection, Respondent may be\nsubject to future enforcement action.\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.\nAugust 15, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":19507}