{"operation":"document","citation":"CPF 32022023WL","title":"NOVA CHEMICALS CORPORATION — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-02-01","effective_on":null,"summary":"CLOSED warning letter citing 195.505(b), 195.573(c), 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022023wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022023wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022023wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022023WL","body":"Warning Letter involving NOVA CHEMICALS CORPORATION. PHMSA's enforcement data identifies the cited regulations as 195.505(b),  195.573(c),  195.583(a). The case was opened on 2022-02-01 and is reported as closed as of 2022-02-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022023WL_Warning Letter_02012022_(21-201331).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022023WL/32022023WL_Warning%20Letter_02012022_(21-201331).pdf\n\n32022023WL_Warning Letter_02012022_(21-201331)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022023WL/32022023WL_Warning%20Letter_02012022_(21-201331)_text.pdf\n\n32022023WL_Warning Letter_02012022_(21-201331)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Luis.Sierra@novachem.com,\nVictor.Alvarado@novachem.com and Megan.copley@novachem.com\nFebruary 1, 2022\nMr. Luis Sierra\nPresident and CEO\nNOVA Chemicals Corporate\n1000 7th Ave. S.W.\nP.O. Box 2518\nCalgary, Alberta Canada T2P 5C6\nCPF 3-2022-023-WL\nDear Mr. Sierra:\nFrom April 29, 2020 through November 17, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected NOVA Chemicals Corporate (NOVA) procedures, records and field assets in\nMarysville, MI.\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. § 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is\nlocated:\nThen the frequency of inspection is:\nOnshore Offshore At least once every 3 calendar years, but with intervals not\nexceeding 39 months\nAt least once each calendar year, but with intervals not exceeding 15\nmonths\nNOVA failed to perform atmospheric corrosion inspections on the two short blinded risers for\npipelines PL18 and PL19 in the DCP Midstream facility during the inspection years 2016 and\n2019. These pipelines (including the short risers) have been under nitrogen blanket since June of\n2015 and continue to be DOT regulated since they have not been abandoned. Following the\nPHMSA inspection, NOVA updated the “Compound Map Locations” document that outlines the\natmospheric corrosion inspection locations and added the area with the short risers for PL18 and\nPL19 to the monitoring locations list. NOVA plans on inspecting this area for atmospheric\ncorrosion in 2022.\n2. §195.573 What must I do to monitor external corrosion control?\n(a)….\n(c) Rectifiers and other devices. You must electrically check for proper performance\neach device in the first column at the frequency stated in the second column.\nDevice Check frequency\nRectifier At least six times each calendar year, but with intervals not exceeding 2 ½ months\nNOVA did not electrically check their River Crossing rectifier for proper performance at least six\ntimes each calendar year, but with intervals not exceeding 2.5 months. According to the Annual\nSurvey records, the rectifier was not electrically checked between the inspection dates of\nDecember 11, 2018 and May 06, 2019 which did not meet the required maximum interval of 2.5\nmonths between inspections.\n2\n\n\n\n3. §195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) …\n(b) Ensure through evaluation that individuals performing covered tasks are\nqualified;\nNOVA failed to ensure through evaluation that an employee performing a covered task was\nqualified. Specifically, Nova failed to properly requalify its employee prior to performing the\ncovered task of inspecting its pipelines PL18, PL19 and PL20 for atmospheric corrosion in 2019.\nBased on a review of the operator qualification records for this employee, it was identified that the\nqualification for performing atmospheric corrosion monitoring had been erroneously renewed on\nSeptember 17, 2019 by evaluating the employee on a different and non-applicable covered task\nfor “Inspection of Coating Application”. The re-qualification error was due to listing the non-\napplicable task as an acceptable training and evaluation method in the Operator Qualification Plan\nCovered Task document titled \"7.1 - Visual Inspection of Atmospheric Coatings\" (Revision No. 7\nand Revision Date 10.12.2018).\nFollowing the PHMSA inspection, Nova revised and corrected the “Training and Evaluation\nMethods” section of the Operator Qualification Plan Covered Task document by listing the\nappropriate evaluation methods for the atmospheric corrosion monitoring task.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related\nseries of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,\nthe maximum penalty may not exceed $222,504 per violation per day the violation persists, up to\na maximum of $2,225,034 for a related series of violations. For violation occurring on or after\nJuly 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\n3\n\n\n\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nNOVA Chemicals Corporate being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2022-023-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Victor Alvarado, Senior Vice-President Operations and Engineering,\nvictor.Alvarado@novachem.com\nMegan Copley, Pipeline Regulatory Specialist, megan.copley@novachem.com\n4","truncated":false,"body_characters":7221}