{"operation":"document","citation":"CPF 32022060NOPV","title":"ROCKIES EXPRESS PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-12-22","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.179(a)(4), 192.5(b)(3)(ii), 192.609, 192.905(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022060nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022060nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022060nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022060NOPV","body":"Notice of Probable Violation involving ROCKIES EXPRESS PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 192.179(a)(4),  192.5(b)(3)(ii),  192.609,  192.905(b)(1). The case was opened on 2022-12-22 and is reported as closed as of 2026-01-26. Proposed civil penalty: $146,000. Assessed civil penalty: $116,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022060NOPV_Closure Letter_01262026_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Closure%20Letter_01262026_(22-237394).pdf\n\n32022060NOPV_Closure Letter_01262026_(22-237394)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Closure%20Letter_01262026_(22-237394)_text.pdf\n\n32022060NOPV_Consent Agreement and Order_07142023_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Consent%20Agreement%20and%20Order_07142023_(22-237394).pdf\n\n32022060NOPV_Consent Agreement and Order_07142023_(22-237394)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Consent%20Agreement%20and%20Order_07142023_(22-237394)_text.pdf\n\n32022060NOPV_Consent Agreement Modification_09152025_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Consent%20Agreement%20Modification_09152025_(22-237394).pdf\n\n32022060NOPV_Consent Agreement Modification_09152025_(22-237394)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Consent%20Agreement%20Modification_09152025_(22-237394)_text.pdf\n\n32022060NOPV_Operator Response to Notice and RfH_01232023_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Operator%20Response%20to%20Notice%20and%20RfH_01232023_(22-237394).pdf\n\n32022060NOPV_Operator Withdrawal of Hearing Request_07142023_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_07142023_(22-237394).pdf\n\n32022060NOPV_PCP PCO_12222022_(22-237394)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_PCP%20PCO_12222022_(22-237394)_text.pdf\n\n32022060NOPV_PCP_PCO_12222022_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_PCP_PCO_12222022_(22-237394).pdf\n\n32022060NOPV_PHC Hearing Scheduled_03012023_(22-237394).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_PHC%20Hearing%20Scheduled_03012023_(22-237394).pdf\n\n32022060NOPV_PHC Hearing Scheduled_03012023_(22-237394)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022060NOPV/32022060NOPV_PHC%20Hearing%20Scheduled_03012023_(22-237394)_text.pdf\n\n32022060NOPV_Closure Letter_01262026_(22-237394)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n12300 W. Dakota Ave., Suite 340\nLakewood, CO 80228\nVIA ELECTRONIC MAIL TO: crystal.heter@tallgrass.com\nJanuary 26, 2026\nMs. Crystal Heter\nChief Operating Officer\nTallgrass Energy, LP\n370 Van Gordon Street\nLakewood, CO 80228\nCPF 3-2022-060-NOPV\nClosure Letter\nDear Ms. Heter:\nOn July 14, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\na Consent Order incorporating the terms of the Consent Agreement between PHMSA and\nTallgrass Energy Partners, LP (Tallgrass or Respondent) in the above-referenced case. On\nSeptember 15, 2025, PHMSA and Respondent (the Parties) modified the Consent Agreement by\nmutual agreement of the Parties. This modified Consent Agreement included a Compliance\nOrder requirement for Tallgrass to comply with a Compliance Plan, unless or until the Special\nPermit is approved by PHMSA, or PHMSA otherwise finds that the alternative spacing provides\nan equivalent level of safety in accordance with 49 CFR 192.179(a).\nPer the terms of the modified Consent Agreement, the modified Consent Agreement would\nterminate once the Compliance Order in Section V are satisfied. On December 5, 2025, PHMSA\nissued a Decision finding that the alternative spacing provides an equivalent level of safety in\naccordance with 49 CFR 192.179(a). In addition, as of December 21, 2025, Respondent has\ncomplied with the obligations set forth in the Compliance Plan, thereby satisfying the\nCompliance Order in Section V. Accordingly, the modified Consent Agreement is terminated,\nand this case is now closed.\nThank you for your cooperation in this matter.\n\n\n\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Luo (#22-237394)\nDanielle Stephens (danielle.stephens@tallgrass.com)\nKale Stanton (kale.stanton@tallgrass.com)\nJay Meyers (jay.meyers@tallgrass.com)\nJarid Kling (jarid.kling@tallgrass.com)\nNicole Longwell (nicole.longwell@tallgrass.com)\n\n32022060NOPV_PHC Hearing Scheduled_03012023_(22-237394)_text.pdf\n\nMarch 1, 2023\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 Interstate Gas Transmission, LLC\nCPF No. 3-2022-060-NOPV\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 and\nHazardous Materials Safety Administration in the above-referenced case. The hearing will take place\non July 18, 2023, beginning at 8:30 a.m. Central Time.\nThe hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480, Kansas\nCity, Missouri 64106. Upon arrival at the building, attendees will be required to present photo\nidentification to security personnel. A contact phone number for the day of the hearing is (816) 329-\n3800.\nAt least 10 calendar days prior to the hearing (or by July 10, 2023), both parties must submit and\nexchange any additional written materials they intend to present at the hearing and the name and email\naddress of each attendee. This information should be provided electronically. Materials not submitted\nby this date may be excluded. If you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Mr. Matt Sheehy, President and Chief Executive Officer, Tallgrass Energy, LP,\nmatt@tallgrassenergylp.com\nMr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety,\nryan.mcclure@dot.gov\n\n32022060NOPV_Consent Agreement Modification_09152025_(22-237394)_text.pdf\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 )\nTallgrass Energy, LP, ) CPF No. 3-2022-060-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nMODIFICATION TO CONSENT AGREEMENT\nFrom March 4 through July 6, 2022, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of\nTitle 49, United States Code (U.S.C.), inspected Rockies Express Pipeline, LLC (REX)’s\npipeline facilities in Ohio. REX is a subsidiary of Tallgrass Energy Partners, LP (Tallgrass or\nRespondent). REX is a 1,698-mile natural gas pipeline system that spans from Rio Blanco\nCounty, Colorado, to Monroe County, Ohio.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated December 22, 2022, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice).\nOn July 12, 2023, PHMSA and Respondent (the Parties) entered into a Consent Agreement\n(Agreement) to resolve the Notice. The Agreement was approved by the Associate Administrator\nfor Pipeline Safety, PHMSA, and incorporated by reference into a Consent Order that was issued\npursuant to 49 CFR § 190.219 on July 14, 2023.\nParagraph 28 of the Agreement states that the Agreement may be modified by mutual agreement\nof the Parties and that such modifications must be in writing and signed by both parties.\nIn accordance with Paragraph 28 of the Agreement, the Parties hereby agree to modify Paragraph\n21 of the Agreement. The modification to Paragraph 21 does not otherwise change any of the\nother terms of the Agreement, which remain in full force and effect unmodified.\nI. Modification:\nParagraph 21 of the Agreement is hereby struck and replaced with the following:\n\n\n\n21. Item 2 – 49 CFR § 192.179(a)(4): The Notice proposed a compliance order\naction to address the non-compliance alleged in Item 2. As a result of the Parties’ informal\ndiscussions, the Parties have agreed to the following:\nA. Special Permit Application, or Alternative Spacing Equivalency\nDetermination, and Limitations\ni. ii. As soon as practicable but no more than 180 days from the Effective Date of\nthis Agreement, Respondent will apply for a mainline valve spacing special\npermit (Special Permit) under 49 CFR § 190.341 to allow for sectionalizing\nblock valves to be spaced outside of the 10 mile (16 kilometer) spacing\nrequirement for certain pipeline segments in a Class 1 location as set forth in\n49 CFR § 192.179(a)(4).\nIf approved, the proposed Special Permit conditions shall apply, and the\nobligations set forth in Paragraph B will terminate.\niii. Unless or until the Special Permit is approved by PHMSA, or PHMSA\notherwise finds that the alternative spacing provides an equivalent level of\nsafety in accordance with 49 CFR 192.179(a), Respondent will proceed to\ncomply with obligations set forth in Par. B.i.a. If the Special Permit is denied\nby PHMSA or withdrawn by Respondent, Respondent shall also proceed with\nthe obligations specified in Par. B.i.b, unless PHMSA otherwise finds that the\nalternative spacing provides an equivalent level of safety in accordance with\n49 CFR 192.179(a).\niv. If PHMSA finds that the alternative spacing provides an equivalent level of\nsafety in accordance with 49 CFR 192.179(a), paragraph B is no longer\napplicable and paragraph 21 has been deemed satisfied in its entirety.\nRespondent reserves the right to seek additional special permits or other\nalternatives as provided by applicable laws.\nB. Compliance Plan\ni. In regard to Item 2 of the Notice, Respondent shall perform the following\nactions, subject to the limitations set forth in paragraph A (including if\nPHMSA otherwise finds that the alternative spacing provides an equivalent\nlevel of safety in accordance with 49 CFR 192.179(a)), applicable to the area\nidentified in the Notice with sectionalizing block valves spaced outside of the\n10 mile (16 kilometer) spacing requirements of 49 CFR § 192.179(a)(4):\nInterim Actions Until the Grant of the Special Permit Application or\nDetermination that the Alternative Valve Spacing Provides Equivalent\nLevel of Safety in Accordance with 49 CFR 192.179(a).\nv. a.\n\n\n\n1. Work Plan. Within 90 days of the Effective Date of this Agreement,\nRespondent will prepare and submit for the Director approval a Work Plan\nand Schedule to implement the Remedial Measures set forth in paragraph\nB.i.a.2, unless and until a Special Permit is granted or PHMSA otherwise finds\nthat the alternative spacing provides an equivalent level of safety in\naccordance with 49 CFR 192.179(a).\n2. Remedial Measures.\nA. Conduct documented monthly aerial right-of-way patrols.\nB. Perform documented leak survey with leak survey equipment at least\ntwice each calendar year but not to exceed 7-1/2 months.\nC. Documented in-line inspection conducted within 18 months of the\nEffective Date of this Agreement.\nD. A documented close interval survey (CIS) will be conducted within 18\nmonths of the Effective Date of this Agreement.\n3. The Work Plan and Schedule required by paragraph B.i.a.1 may not be\nimplemented until it has been approved, in writing, by the Director.\nb. Additional Actions Upon Special Permit Denial or Withdrawal\n1. Except where PHMSA otherwise finds that the alternative spacing\nprovides an equivalent level of safety in accordance with 49 CFR 192.179(a),\nin the event the Special Permit is denied or withdrawn, and until Respondent\nhas installed the valves referenced in B.i.b.2 below, Respondent will continue\nto implement remedial measures as set forth in B.i.a.2 as appropriate and\napplicable and described in the Work Plan and Schedule pursuant to B.i.a.1 of\nthis Agreement. The Schedule will be updated as necessary.\n2. Within 2 years of the date of denial or withdrawal, Respondent will\ndetermine a suitable location for, and install, the necessary valve(s) to meet\nthe requirements of 49 CFR § 192.179.\n3. Respondent’s obligations under B.i.a will terminate upon installation of\nthe valves as required by B.i.b.2 or termination of this Agreement.\nC. Respondent shall provide status updates to the Director on a quarterly basis\ndescribing the progress on all actions being undertaken pursuant to this Agreement.\nD. The Director may grant an extension of time for compliance with any of the terms\nof the Agreement upon a written request timely submitted demonstrating good cause for\nan extension. The Director shall respond in writing to any such request.\n\n\n\nII. Ratification:\n1. The Parties’ undersigned representatives certify that they are fully authorized to enter into\nthe terms and conditions of this modification and to execute and legally bind such party to this\ndocument.\n2. The Parties hereby agree to all findings, conditions, and terms of this modification.\n[Signature Lines on Following Page]\n\n\n\nFor Tallgrass Energy, LP:\n_______________________________\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Western Region, Office of Pipeline Safety\n________________________\nDate\n\n32022060NOPV_Consent Agreement and Order_07142023_(22-237394)_text.pdf\n\nJuly 14, 2023\nVIA ELECTRONIC MAIL TO: matt@tallgrass.com, jennifer.eckels@tallgrassenergylp.com,\ncrystal.heter@tallgrassenergylp.com\nMatt Sheehy\nPresident and Chief Executive Officer\nTallgrass Energy, LP\n370 Van Gordon Street\nLakewood, Colorado 80228\nCPF No. 3-2022-060-NOPV\nDear Mr. Sheehy:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between the\nPipeline and Hazardous Materials Safety Administration (PHMSA) and Tallgrass Energy, LP, which\nwas executed on July 12, 2023. Service of the Consent Order and Consent Agreement by electronic\nmail is deemed effective upon the date of transmission and acknowledgement of receipt, or as\notherwise 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: Consent Order and Consent Agreement\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMs. Catherine Little, Counsel, Bracewell, catherine.little@bracewell.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 )\nTallgrass Energy, LP, ) CPF No. 3-2022-060-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated December 22, 2023, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice) to Tallgrass Energy, LP (Tallgrass or Respondent).\nIn response to the Notice, Respondent requested a hearing on Notice Item 2 in full and Notice Item\n4 in part. (Response). Tallgrass did not contest the underlying allegation of violation for Notice\nItem 3 but requested a hearing for a reduction of the civil penalty associated with it. Respondent did\nnot contest Notice Item 1. Tallgrass also asked for the opportunity to meet informally with PHMSA\nto discuss Items 2, 3, and 4.\nRespondent and PHMSA (the Parties) subsequently met to discuss the issues raised in the Response.\nAs a result of those discussions, as explained in more detail below, the Parties have agreed to a\nConsent Agreement which modifies the required compliance actions for Item 2, reduces the civil\npenalty associated with Item 3 to $15,800, withdraws from Item 4 part of the proposed violation and\nreduces its civil penalty to $50,100, and finds that the required compliance actions for Items 1 and 4\nhave been satisfied. The total civil penalty agreed to is $116,000.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Tallgrass is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49 C.F.R.\n§ 190.223, or in referral to the Attorney General for appropriate relief in a district court of the\nUnited States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nJuly 14, 2023\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\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 )\nTallgrass Energy, LP, ) CPF No. 3-2022-060-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom March 4 through July 6, 2022, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), inspected Rockies Express Pipeline, LLC (REX) in Ohio. REX is a\nsubsidiary of Tallgrass Energy Partners, LP1 (Tallgrass or Respondent). REX is a 1,698-mile\nnatural gas pipeline system that spans from Rio Blanco County, Colorado, to Monroe County,\nOhio, with a capacity of 1.8 billion cubic feet per day.2\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated December 22, 2022, a Notice of Probable Violation, Proposed Compliance Order,\nand Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that Respondent committed violations of four provisions of 49 C.F.R. Part 192\n(Items 1-4), proposed ordering Respondent to take certain measures to correct the alleged\nviolations, and proposed a total civil penalty of $146,000.\nTallgrass, on behalf of REX, responded to the Notice by letter dated January 23, 2023\n(Response). In its Response, Respondent contested Notice Item 2 in full and Notice Item 4 in\npart. Respondent did not contest the underlying allegation of violation for Notice Item 3 but\nrequested a reduction of the associated civil penalty. Respondent requested a hearing and the\nopportunity to meet informally with PHMSA to discuss these items. Respondent did not contest\nNotice Item 1.\nPHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the\nResponse. As a result of those discussions and as explained in more detail below, the Parties\nhave agreed to a Consent Agreement which modifies the required compliance actions for Item 2,\n1 See Rockies Express Pipeline, TALLGRASS ENERGY,\nhttps://pipeline.tallgrassenergylp.com/Pages/Content.aspx?pipeline=501&type=SMRY (last accessed June 26,\n2023).\n2 Id.\n\n\n\nreduces the civil penalty associated with Item 3 to $15,800, withdraws from Item 4 part of the\nproposed violation and reduces the associated civil penalty to $50,100, and finds that the\nrequired compliance actions for Items 1 and 4 have been satisfied. The total adjusted civil\npenalty agreed to is $116,000.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent\nand agreement, the Parties hereby agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its request for an administrative\nhearing regarding the Notice upon receipt of the signed Agreement.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n\n\n\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of\nviolation of any other federal law or regulation and may not be used in any civil proceeding of\nany kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any\nlaw, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this\nAgreement or in future PHMSA enforcement actions.\nII. Findings of Violation:\n11. Item 1 – 49 C.F.R. § 192.5(b)(3)(ii): The Notice alleged that Respondent failed to\nproperly identify a Class 3 location along its pipeline because it improperly excluded a building\nfrom its class location analysis, the Monroe Local School Bus Depot which is located within 100\nyards of the pipeline and occupied by 20 or more persons on at least 5 days a week for 10 weeks\nin any 12-month-period. Following PHMSA’s inspection and prior to receiving the Notice,\nRespondent modified its procedures to address the issue identified in the Notice, including\nproviding additional guidance to field personnel when gathering structure data for class location\nanalyses and updating its class location analysis to include the Monroe Local School Bus Depot.\nWithout admission, Respondent did not contest the allegation of violation as alleged in the\nNotice. As such, PHMSA finds a violation of 49 C.F.R. § 192.5(b)(3)(ii).\n12. Item 2 – 49 C.F.R. § 192.179(a)(4): The Notice alleged that Respondent failed to\nspace sectionalizing block valves so that each point on the transmission pipeline in a Class 1\n\n\n\nlocation was within 10 miles of a valve. Respondent contested this Item on the basis that the\nrelevant valves were installed 20 miles apart by the prior owner and operator of REX when\nmeasured by the top-of-ground distance between the valves. Following the Parties’ informal\ndiscussion, Respondent, without admission, agrees to accept the violation as alleged in the Notice.\nAs such, PHMSA finds a violation of 49 C.F.R. § 192.179(a)(4).\n13. Item 3 – 49 C.F.R. § 192.609: The Notice alleged that Respondent failed to\nimmediately make a study whenever an increase in population density indicated a change in class\nlocation for a segment of an existing steel pipeline operating at hoop stress that is more than 40\npercent of SMYS, or indicated that the hoop stress corresponding to the established maximum\nallowable operating pressure for a segment of existing pipeline is not commensurate with the\npresent class location. Without admission, Respondent did not contest the allegation of violation\nas alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.609.\n14. Item 4 – 49 C.F.R. § 192.905(b)(1): The Notice alleged that Respondent failed to\nidentify two identified sites: the Rockside Winery and Vineyards and a State Highway Patrol\nOffice. Respondent contested this Item in part, contesting the allegation that the State Highway\nPatrol Office should be classified as an identified site. Respondent did not contest the allegation\nas it relates to classification of the Rockside Winery and Vineyard as an identified site. Prior to\nreceiving the Notice, Respondent incorporated both locations into its High Consequence Area\nanalysis and 2022 integrity management process. During the Parties’ informal discussion,\nRespondent presented information that the State Highway Patrol Office does not meet the criteria\nof an identified site as defined by 49 C.F.R. § 192.903. Respondent further provided\ndocumentation showing that, without admission, it had voluntarily incorporated the State Highway\nPatrol Office into its High Consequence Area analysis as an interim measure until this matter was\nresolved. Based on the information provided, PHMSA agrees to withdraw from Item 4 the\nallegation that the State Highway Patrol Office should be classified as an identified site. As such,\nPHMSA finds one instance of violation of 49 C.F.R. § 192.905(b)(1) for Item 4.\n15. Items 1, 2, 3, and 4 as modified above, will be considered by PHMSA as prior\noffenses in any future PHMSA enforcement action taken against Respondent for the five (5)-year\nperiod following the Effective Date of this Agreement.\nV. Civil Penalty:\n16. Item 1 – 49 C.F.R. § 192.5(b)(3)(ii): The Notice proposed assessing a civil\npenalty in the amount of $50,100 for Item 1. Respondent did not contest the proposed civil\npenalty for this Item. As such, Respondent shall pay a civil penalty in the amount of $50,100 for\nItem 1.\n17. Item 3 – 49 C.F.R. § 192.609: The Notice proposed assessing a civil penalty in\nthe amount of $40,000 for Item 3. Respondent requested a reduction of the proposed civil\npenalty in light of the fact that Tallgrass self-identified the relevant structures prior to PHMSA’s\ninspection and incorporated them into its 2022 class location and HCA analysis. After\nconsideration of this additional information, PHMSA agrees to a reduced civil penalty based on\n\n\n\nreconsideration of the culpability factor to $15,800. Respondent agrees to pay the reduced civil\npenalty of $15,800 for the violation in Item 3.\n18. Item 4 – 49 C.F.R. § 192.905(b)(1): The Notice proposed assessing a civil penalty\nin the amount of $55,900 for Item 4. For the reasons discussed above in Paragraph 14, PHMSA\nreduces the number of instances of violation from two to one. As such, PHMSA reduces the civil\npenalty to $50,100, based on the reduction to the number of instances of violation. Tallgrass agrees\nto pay the reduced civil penalty of $50,100 for the violation in Item 4.\n19. Respondent will pay a total adjusted civil penalty in the amount of $116,000,\npursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20\ndays from the Effective Date of this Agreement.\nV. Compliance Order:\n20. Item 1 – 49 C.F.R. § 192.5(b)(3)(ii): The Notice proposed certain compliance\norder actions to address the non-compliance alleged in Item 1. Respondent did not contest the\nProposed Compliance Order for Item 1. Respondent submitted revised procedures to PHMSA\nwhich provide additional guidance for when 20 or more people at one time are considered to be\nin transit and its full class analysis utilizing its revised procedures. Based upon review of these\nrecords, PHMSA finds that the terms of the compliance order action proposed in the Notice for\nItem 1 have been satisfied.\n21. Item 2 – 49 C.F.R. § 192.179(a)(4): The Notice proposed a compliance order\naction to address the non-compliance alleged in Item 2. As a result of the Parties’ informal\ndiscussions, the Parties have agreed to the following:\nA. Special Permit Application and Limitations\nAs soon as practicable but no more than 180 days from the\nEffective Date of this Agreement, Respondent will apply for a\nmainline valve spacing special permit (Special Permit) under 49\nC.F.R. § 190.341 to allow for sectionalizing block valves to be\nspaced outside of the 10 mile (16 kilometer) spacing requirement\nfor certain pipeline segments in a Class 1 location as set forth in 49\nC.F.R. § 192.179(a)(4).\nIf approved, the proposed Special Permit conditions shall apply,\nand the obligations set forth in Paragraph B will terminate.\nUnless or until the Special Permit is approved by PHMSA,\nRespondent will proceed to comply with the obligations set forth in\nParagraph B.i.a. If the Special Permit is denied by PHMSA or\nwithdrawn by Respondent, Respondent shall also proceed with the\nobligations specified in Paragraph B.i.b.\ni. ii. iii.\n\n\n\nRespondent reserves the right to seek additional special permits.\niv. B. Compliance Plan\ni. In regard to Item 2 of the Notice, Respondent shall perform the\nfollowing actions, subject to the limitations set forth in paragraph A, applicable to\nthe area identified in the Notice with sectionalizing block valves spaced outside of\nthe 10 mile (16 kilometer) spacing requirements of 49 C.F.R. § 192.179(a)(4):\na. Interim Actions Until the Grant of the Special Permit\nApplication\n1. Work Plan. Within 90 days of the Effective Date of this Agreement,\nRespondent will prepare and submit for the Director approval a Work\nPlan and Schedule to implement the Remedial Measures set forth in\nparagraph B.i.a.2, unless and until a Special Permit is granted.\n2. Remedial Measures.\nA. Conduct documented monthly aerial right-of-way patrols.\nB. Perform documented leak survey with leak survey equipment at\nleast twice each calendar year but not to exceed 7-1/2 months.\nC. Documented in-line inspection conducted within 18 months of\nthe Effective Date of this Agreement.\nD. A documented close interval survey (CIS) will be conducted\nwithin 18 months of the Effective Date of this Agreement.\n3. The Work Plan and Schedule required by paragraph B.i.a.1, may not be\nimplemented until it has been approved, in writing, by the Director.\nb. Additional Actions Upon Special Permit Denial or Withdrawal\n1. In the event the Special Permit is denied or withdrawn, and until\nRespondent has installed the valves referenced in B.i.b.2 below,\nRespondent will continue to implement remedial measures as set forth\nin B.i.a.2 as appropriate and applicable and described in the Work Plan\nand Schedule pursuant to B.i.a.1 of this Agreement. The Schedule will\nbe updated as necessary.\n2. Within 2 years of the date of denial or withdrawal, Respondent will\ndetermine a suitable location for, and install, the necessary valve(s) to\nmeet the requirements of 49 C.F.R. § 192.179.\n3. Respondent’s obligations under B.i.a will terminate upon installation of\nthe valves as required by B.i.b.2 or termination of this Agreement.\n\n\n\nC. Respondent shall provide status updates to the Director on a quarterly\nbasis describing the progress on all actions being undertaken pursuant to this\nAgreement.\nD. The Director may grant an extension of time for compliance with any of\nthe terms of the Agreement upon a written request timely submitted\ndemonstrating good cause for an extension. The Director shall respond in writing\nto any such request.\n22. Item 4: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in Item 4. For the reasons discussed above in Paragraph 14, PHMSA will\nreduce the number of instances of violation from two to one by withdrawing the allegation of\nviolation with respect to the State Highway Patrol Office. Without admission, Respondent has\nvoluntarily included this location in its High Consequence Area analysis as an interim measure\nuntil this matter was resolved. Tallgrass did not contest the allegation as it relates to\nclassification of the Rockside Winery and Vineyard as an identified site. Respondent submitted\nrevised procedures to PHMSA which provide additional information to address facilities\noccupied by persons who are confined, are of impaired mobility, or would be difficult to\nevacuate. Respondent has also performed a full high consequence area analysis utilizing the\napproved revised procedures and provided its analysis to PHMSA. Based upon review of these\nrecords, PHMSA finds that the terms of the compliance order action proposed in the Notice for\nItem 4 have been satisfied.\nVI. Enforcement:\n23. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $239,142 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and\nassociated schedules set forth or referenced in Section V are automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVII. Review and Approval Process:\n24. With respect to any submission under Section V (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent a written\n\n\n\nnotice of the deficiencies. Respondent will correct all deficiencies within the time specified by\nthe Director and resubmit it for approval.\nVIII. Dispute Resolution:\n25. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including any decision of the Director under the terms of Section\nV, Compliance Order. If Respondent and the Director are unable to informally resolve the\ndispute within 15 calendar days after the dispute is first raised, in writing, to the Director,\nRespondent may submit a written request for a determination resolving the dispute from the\nAssociate Administrator for Pipeline Safety, PHMSA. Such request must be made in writing and\nprovided to the Director, counsel for the Central Region, and to the Associate Administrator for\nPipeline Safety, no later than 10 calendar days from the 15-day deadline for informal resolution\nreferenced in this paragraph. Along with its request, Respondent must provide the Associate\nAdministrator with all information Respondent believes is relevant to the dispute. Decisions of\nthe Associate Administrator under this paragraph will constitute final agency action. The\nexistence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse,\ntoll, or suspend any term or timeframe for completion of any work to be performed under this\nAgreement during the pendency of the dispute resolution process.\nIX. Effective Date:\n26. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nX. Recordkeeping and Information Disclosure:\n27. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed. For any reports, plans, or\nother deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent\nmay assert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be sub","truncated":true,"body_characters":41652}