{"operation":"document","citation":"CPF 32022030NOPV","title":"WTG-HUGOTON, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-01-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.227(a), 192.605(a), 192.605(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022030nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022030nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022030nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022030NOPV","body":"Notice of Probable Violation involving WTG-HUGOTON, LP. PHMSA's enforcement data identifies the cited regulations as 192.227(a),  192.605(a),  192.605(b)(2). The case was opened on 2022-01-24 and is reported as closed as of 2022-10-14. Proposed civil penalty: $41,400. Assessed civil penalty: $20,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022030NOPV_Closure Letter_10142022_(21-207936).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_Closure%20Letter_10142022_(21-207936).pdf\n\n32022030NOPV_Closure Letter_10142022_(21-207936)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_Closure%20Letter_10142022_(21-207936)_text.pdf\n\n32022030NOPV_Final Order_09192022_(21-207936).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_Final%20Order_09192022_(21-207936).pdf\n\n32022030NOPV_Final Order_09192022_(21-207936)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_Final%20Order_09192022_(21-207936)_text.pdf\n\n32022030NOPV_Operator Response to Notice_01312022_(21-207936).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_Operator%20Response%20to%20Notice_01312022_(21-207936).pdf\n\n32022030NOPV_PCP_01242022_(21-207936).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_PCP_01242022_(21-207936).pdf\n\n32022030NOPV_PCP_01242022_(21-207936)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022030NOPV/32022030NOPV_PCP_01242022_(21-207936)_text.pdf\n\n32022030NOPV_Final Order_09192022_(21-207936)_text.pdf\n\nSeptember 19, 2022\nVIA ELECTRONIC MAIL TO: rhatchett@westtexasgas.com\nMr. Richard Hatchett\nPresident\nWTG Hugoton, LP\n211 North Colorado\nMidland, Texas 79701\nRe: CPF No. 3-2022-030-NOPV\nDear Mr. Hatchett:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a reduced civil penalty of $20,700. The penalty payment terms are set\nforth in the Final Order. This enforcement action closes automatically upon receipt of payment.\nService of the Final Order by e-mail is effective upon the date of transmission and\nacknowledgement 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 Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Ray Reed, Director of Integrity Management, West Texas Gas, Inc.,\nrreed@westtexasgas.com\nMr. Bart Bean, Manager of Gas Operations, West Texas Gas, Inc.,\nbbean@westtexasgas.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 )\nWTG Hugoton, LP, ) CPF No. 3-2022-030-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom June 29, 2021 to July 14, 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 natural gas pipeline facilities and\nrecords of WTG Hugoton, LP (WTG or Respondent) in Kansas. WTG operates 152 miles of gas\ntransmission lines.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated January 24, 2022, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that WTG had\nviolated 49 C.F.R. § 192.605(b)(2) and proposed assessing a civil penalty of $41,400 for the\nalleged violation. The Notice also included one warning item pursuant to 49 C.F.R. § 190.205,\nwhich warned the operator to correct the probable violation or face possible future enforcement\naction.\nWTG responded to the Notice by letter dated January 31, 2022 (Response). The company did\nnot contest the allegations of violation but provided an explanation of its actions and requested\nthat the proposed civil penalty be reduced. Respondent did not request a hearing and therefore\nhas waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(b)(2), which states:\n§ 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline,\na manual of written procedures for conducting operations and maintenance\n\n\n\nactivities and for emergency response . . . .\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following, if\napplicable, to provide safety during maintenance and operations.\n(1) . . . .\n(2) Controlling corrosion in accordance with the operations and\nmaintenance requirements of subpart I of this part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(b)(2) by failing to follow its\nwritten procedural manual regarding controlling corrosion. Specifically, the Notice alleged that\nWTG failed to perform analyses of the readings, report the deficiencies, or take any corrective\naction with respect to six test points that did not meet the cathodic protection (CP) criteria in Part\n192, Appendix D as required by its procedures.\nIn its Response, WTG did not contest this item, but provided additional information relevant to\nthe proposed civil penalty. Specifically, WTG stated that it did follow its procedures, but failed\nto document the action taken in response to the low CP test readings identified in the Notice.\nWTG argued that the results of its CP tests at five of the six test points in the following years did\nmeet the Appendix D criteria and thus indicate that sufficient remedial action was taken.\nRespondent requests that this information be considered in evaluating the civil penalty associated\nwith this item, and this is addressed below.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.605(b)(2) by failing to follow its written procedural manual regarding controlling\ncorrosion.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken 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.1\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 $41,400 for the violation cited above.\n1 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223 for adjusted amounts.\n\n\n\nItem 2: The Notice proposed a civil penalty of $41,400 for Respondent’s violation of 49 C.F.R.\n§ 192.605(b)(2), for failing to follow its written procedural manual regarding controlling\ncorrosion. WTG provided additional information to suggest that it did address the low CP\nreadings, but admitted that the corrective actions were not documented. Specifically, for the first\nfour listed test stations (Drip #5, Rmillo Farm Tap, SV Wilson F#3, and TL & Sec Ln Road),\nWTG stated it remediated these test stations after receiving the low March 2019 CP readings.\nWTG provided a table, and corresponding surveys, with the 2020 and 2021 CP readings for these\nfour test stations. The 2020 and 2021 CP readings indicate the remediations were effective.\nFor the SV TO KB608 – BV TO KNE test station, WTG stated that this CP system is “erratic”\nand that it is developing a plan to improve CP on this pipeline. For the TL at N/S Fence on East\nROW Lakin Ln test station, WTG stated that the pipeline did not completely depolarize. On a\nsecond attempt to depolarize, this test station met the CP reading. However, the second attempt\nat depolarization was not documented. WTG provided a table, and corresponding survey,\nindicating that the 2020 and 2021 CP readings met the Appendix D criteria for the TL at N/S\nFence on East ROW Lakin Ln test station.\nThe information submitted by Respondent is relevant to the “gravity of the violation,” under\nwhich PHMSA considers the severity of the violation and its impacts to pipeline safety. The\nViolation Report noted the violation potentially impacted the pipeline’s susceptibility to external\ncorrosion. Having considered the additional information submitted, I find that with respect to\ngravity, WTG corrected the low CP readings on five of the six test stations identified in the\nNotice prior to the PHMSA inspection and has plans to address the remaining low CP reading.\nTherefore, I find that a reduction in the civil penalty is warranted because pipeline safety was\nminimally affected.\nBased on the foregoing, I assess Respondent a reduced civil penalty of $20,700 for violation of\n49 C.F.R. §192.605(b)(2).\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 $20,700 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.\nWARNING ITEM\n\n\n\nWith respect to Item 1, the Notice alleged a probable violation of Part 192, but identified it as a\nwarning item pursuant to § 190.205. The warning was for:\n49 C.F.R. § 192.227(a) (Item 1) ─ Respondent’s alleged failure to properly\nqualify a welder that performed repairs to its KSG-390-01 pipeline in Finney\nCounty, Kansas.\nWTG presented information in its Response showing that it had taken certain actions to address\nthe cited item. If OPS finds a violation of this provision in a subsequent inspection, Respondent\nmay be subject 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\nbrief statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing\nof a petition automatically stays the payment of any civil penalty assessed. The other terms of\nthe order, including any corrective action, remain in effect unless the Associate Administrator,\nupon request, grants a stay. If Respondent submits payment of the civil penalty, the Final Order\nbecomes the final administrative decision and the right to petition for reconsideration is waived.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nSeptember 19, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n32022030NOPV_Closure Letter_10142022_(21-207936)_text.pdf\n\nVIA ELECTRONIC MAIL TO: rhatchett@westtexasgas.com; rreed@westtexasgas.com\nOctober 14, 2022\nRichard Hatchett\nPresident\nWTG-Hugoton, LP\n211 North Colorado\nMidland, TX 79701\nRe: CPF 3-2022-030-NOPV\nDear Mr. Hatchett:\nOn September 19, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to WTG-Hugoton, LP a Final Order in the above-referenced case. This Order included a\nCivil Penalty assessment. Based on our confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of this Final 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 Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Ray Reed, Director of Pipeline Compliance rreed@westtexasgas.com","truncated":false,"body_characters":13763}