{"operation":"document","citation":"CPF 32023016NOPV","title":"TALLGRASS INTERSTATE GAS TRANSMISSION, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-09-08","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.631(c)(3), 192.631(c)(4), 192.631(e)(1), 192.631(e)(2), 192.631(e)(3), 192.631(e)(4), 192.631(h)(6), 192.631(j)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023016nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023016nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023016nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023016NOPV","body":"Notice of Probable Violation involving TALLGRASS INTERSTATE GAS TRANSMISSION, LLC. PHMSA's enforcement data identifies the cited regulations as 192.631(c)(3),  192.631(c)(4),  192.631(e)(1),  192.631(e)(2),  192.631(e)(3),  192.631(e)(4),  192.631(h)(6),  192.631(j)(1). The case was opened on 2023-09-08 and is reported as closed as of 2024-09-12. Proposed civil penalty: $197,300. Assessed civil penalty: $78,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023016NOPV_Closure Letter_09122024_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_Closure%20Letter_09122024_(22-238055).pdf\n\n32023016NOPV_Closure Letter_09122024_(22-238055)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_Closure%20Letter_09122024_(22-238055)_text.pdf\n\n32023016NOPV_Consent Agreement and Order_08162024_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_Consent%20Agreement%20and%20Order_08162024_(22-238055).pdf\n\n32023016NOPV_Consent Agreement and Order_08162024_(22-238055)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_Consent%20Agreement%20and%20Order_08162024_(22-238055)_text.pdf\n\n32023016NOPV_Operator RtN and RfH and SoI_10092023_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_Operator%20RtN%20and%20RfH%20and%20SoI_10092023_(22-238055).pdf\n\n32023016NOPV_Operator Withdrawal of Hearing Request_08162024_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_08162024_(22-238055).pdf\n\n32023016NOPV_PCP PCO_09082023_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PCP%20PCO_09082023_(22-238055).pdf\n\n32023016NOPV_PCP PCO_09082023_(22-238055)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PCP%20PCO_09082023_(22-238055)_text.pdf\n\n32023016NOPV_PHC Hearing Rescheduled_05232024_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PHC%20Hearing%20Rescheduled_05232024_(22-238055).pdf\n\n32023016NOPV_PHC Hearing Rescheduled_05232024_(22-238055)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PHC%20Hearing%20Rescheduled_05232024_(22-238055)_text.pdf\n\n32023016NOPV_PHC Hearing Rescheduled_07252024_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PHC%20Hearing%20Rescheduled_07252024_(22-238055).pdf\n\n32023016NOPV_PHC Hearing Rescheduled_07252024_(22-238055)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PHC%20Hearing%20Rescheduled_07252024_(22-238055)_text.pdf\n\n32023016NOPV_PHC Hearing Scheduled_10262023_(22-238055).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PHC%20Hearing%20Scheduled_10262023_(22-238055).pdf\n\n32023016NOPV_PHC Hearing Scheduled_10262023_(22-238055)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023016NOPV/32023016NOPV_PHC%20Hearing%20Scheduled_10262023_(22-238055)_text.pdf\n\n32023016NOPV_Closure Letter_09122024_(22-238055)_text.pdf\n\nVIA ELECTRONIC MAIL TO: matt@tallgrass.com; crystal.heter@tallgrassenergylp.com;\ndanielle.stephens@tallgrass.com\nSeptember 12, 2024\nMatt Sheehy, President/CEO\nTallgrass Interstate Gas Transmission, LLC\n370 Van Gordon Street\nLakewood, CO 80228\nRE: CPF No. 3-2023-016-NOPV\nDear Mr. Sheehy:\nOn April 13, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Tallgrass Interstate Gas Transmission, LLC (Tallgrass) a Consent Order incorporating the terms\nof the Consent Agreement entered into between PHMSA and Tallgrass which was executed on\nAugust 8, 2024, in the above-referenced case. Based on our review of the documentation provided\nby Tallgrass, and confirmation of payment of the civil penalty, it has been determined that\nTallgrass has complied with the terms of the Consent Agreement and 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: Crystal Heter, Chief Operating Officer, crystal.heter@tallgrassenergylp.com\nDanielle Stephens, Director Compliance, danielle.stephens@tallgrass.com\n\n32023016NOPV_PHC Hearing Rescheduled_07252024_(22-238055)_text.pdf\n\nDate: July 25, 2024\nFrom: Larry White\nTo: File\nRe: Continuance of Hearing, Tallgrass Energy\nCPF No. 3-2023-016-NOPV\nBy electronic mail dated July 15, 2024, Ryan McClure, Counsel for OPS Central Region, and\nCatherine Little, Counsel for Tallgrass Energy, submitted a joint request for a further continuance of\nthe hearing previously scheduled for July 24, 2024. The request explained that the parties had\nreached an agreement to resolve the case which would make a hearing unnecessary, and the\nadditional time was needed to complete and execute the written consent agreement and order.\nI granted the request for a continuance until August 22, 2024 which will be the new hearing date if\nresolution by consent agreement is not completed by that time.\n\n32023016NOPV_Consent Agreement and Order_08162024_(22-238055)_text.pdf\n\nAugust 16, 2024\nVIA ELECTRONIC MAIL TO: matt@tallgrass.com\nMr. Matt Sheehy\nPresident and Chief Executive Officer\nTallgrass Interstate Gas Transmission\n370 Van Gordon Street\nLakewood, Colorado 80228\nCPF No. 3-2023-016-NOPV\nDear Mr. Sheehy:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Tallgrass Interstate\nGas Transmission, which was executed on August 8, 2024. Service of the Consent Order and\nConsent Agreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise 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\nEnclosures: Consent Order and Consent Agreement\ncc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMs. Crystal Heter, Chief Operating Officer, Tallgrass Interstate Gas Transmission,\ncrystal.heter@tallgrass.com\n\n\n\nMs. Danielle Stephens, Director of PHMSA Compliance, Tallgrass Interstate Gas\nTransmission, danielle.stephens@tallgrass.com\nMr. Kale Stanton, Director of Asset Integrity, Tallgrass Interstate Gas Transmission,\nkale.stanton@tallgrass.com\nMr. Ricky Seaton, Vice President of Operations Control Centers, Tallgrass Interstate Gas\nTransmission, ricky.seaton@tallgrass.com\nMs. Nicole Longwell, Associate General Counsel, Tallgrass Interstate Gas Transmission,\nnicole.longwell@tallgrass.com\nMs. Catherine Little, Outside Counsel for Tallgrass Interstate Gas Transmission,\nBracewell, LLP, 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 Interstate Gas Transmission, ) CPF No. 3-2023-016-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated September 8, 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 Interstate Gas Transmission\n(Tallgrass or Respondent).\nIn response to the Notice, Respondent contested Notice Items 2, 3, and 8, and requested\nclarification of certain uncontested Items. Respondent also requested a hearing and the opportunity\nto meet informally with PHMSA to discuss the Notice Items. Respondent and PHMSA (the\nParties) subsequently met to discuss the issues raised in the Response. As a result of those\ndiscussions, as explained in more detail below, the Parties have agreed to a Consent Agreement\nby which PHMSA makes findings of violation for Items 1, 4, 5, 6, and 7; withdraws Items 3 and\n8; changes Item 2 to a warning; assesses a reduced civil penalty of $78,200; and finds that the\nProposed Compliance Order terms have been completed.\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\nC.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of\nthe United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nAugust 16, 2024\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 Interstate Gas Transmission, ) CPF No. 3-2023-016-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom October 3 through November 4, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of Title 49, United States Code (U.S.C.), conducted a pipeline safety inspection by video\nconference of the Control Room Management records of Tallgrass Interstate Gas Transmission\n(Tallgrass or Respondent) in Lakewood, Colorado. The Tallgrass control room monitors and\ncontrols a total of 6,804.6 miles of pipeline operating in Kansas, Missouri, Nebraska, Colorado,\nWyoming, Ohio, Illinois, and Indiana.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated September 8, 2023, a Notice of Probable Violation, Proposed Compliance Order\nand, and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that Tallgrass committed eight violations of 49 C.F.R. Part 192 (Items 1 through\n8), proposed ordering Respondent to take certain measures to correct the alleged violations, and\nproposed a civil penalty of $197,300.\nTallgrass responded to the Notice by letter dated October 9, 2023 (Response). Respondent\ncontested Notice Items 2, 3 and 8, requested clarification of certain uncontested Items, requested\na hearing, and clarified the unanticipated challenges Tallgrass experienced during the COVID-19\npandemic that it asserted contributed to certain alleged violations, as well as provided additional\nevidence indicating that it had begun working towards completing the proposed compliance order\nterms. Tallgrass also requested to meet informally with PHMSA to discuss the matters raised in\nits Response.\nPHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the\nResponse on October 30, 2023, and March 14, 2024. As a result of those discussions and as\nexplained in more detail below, the Parties have agreed to a Consent Agreement by which PHMSA\nmakes findings of violations for Items 1, 4, 5, 6, and 7 as alleged in the Notice, withdraws Items 3\nand 8, and changes Item 2 to a warning. Respondent has completed relevant proposed compliance\nactions associated with Items 4, 5, and 6, and no further compliance actions are required under the\n\n\n\nNotice or by this Agreement. Respondent will pay a reduced civil penalty in the amount of\n$78,200.\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 environment,\npursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent and agreement,\nthe 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., and\nthe 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 that\nthe Associate Administrator adopt the terms of this Agreement by issuing an administrative order\n(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute\nan offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator 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.\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. The\nParties acknowledge that there are no representations, agreements or understandings relating to\nsettlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\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, et\n\n\n\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's\nright of access, entry, inspection, and information gathering or PHMSA's authority to bring\nenforcement 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 permit,\nor a modification of any permit, under any Federal, State, or local laws or regulations. Respondent\nremains responsible for achieving and maintaining compliance with all applicable Federal, State,\nand 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 violation\nof any other federal law or regulation and may not be used in any civil proceeding of any kind as\nevidence or proof of any fact, fault or liability, or as evidence of a violation of any law, rule,\nregulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or\nin future PHMSA enforcement actions.\n11. Except as noted below, Respondent neither admits nor denies any allegation or\nconclusion in the Notice or this Agreement. Respondent agrees for purposes of this Agreement to\naccept the findings of violation and to comply with the terms of this Agreement.\nII. Findings of Violation:\n12. Item 1 - 49 C.F.R. § 192.631(c)(3): The Notice alleged that Tallgrass failed to\ncomplete a test to verify their internal communication plan for the manual operation of the pipeline\nonce each calendar year not to exceed 15 months. Specifically, the test completed in 2020 was not\ncompleted within the required interval. Respondent did not contest the allegation of violation as\nalleged in the Notice but provided additional detail about unanticipated challenges presented by\nfederal, state, and local restrictions associated with the COVID-19 pandemic, including those\nwhich necessitated multiple isolated control rooms for social distancing, that Tallgrass asserted led\nto the circumstances alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. §\n192.631(c)(3).\n\n\n\n13. Item 4 - 49 C.F.R. § 192.631(e)(2): The Notice alleged that Tallgrass failed to\nprovide records that demonstrated compliance with identifying at least once each calendar month\npoints affecting safety that have been taken off scan in the SCADA host, have had alarms inhibited,\ngenerated false alarms, or that have had forced or manual valves for periods for time exceeding\nthat required for associated maintenance or operating activities. Specifically, when a point was\nput in this state, taken off, and placed back into normal state was not adequately captured.\nRespondent did not contest the allegation of violation as alleged in the Notice. As such, PHMSA\nfinds a violation of 49 C.F.R. § 192.631(e)(2).\n14. Item 5 - 49 C.F.R. § 192.631(e)(3): The Notice alleged that Tallgrass failed to\nprovide a procedure to verify the correct safety-related alarm set-point values and alarm\ndescriptions at least once each calendar year, but at intervals not to exceed 15 months. Specifically,\nthe Alarm Management Plan did not provide a process for how to conduct the verification and, as\na result, Respondent failed to adequately verify the correct safety-related alarm set point values\nand alarm descriptions within the specified interval. Respondent did not contest the allegation of\nviolation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.631(e)(3).\n15. Item 6 - 49 C.F.R. § 192.631(e)(4): The Notice alleged that Tallgrass failed to\nprovide records that demonstrated they reviewed their alarm management plan at least once each\ncalendar year, but at intervals not exceeding 15 months to determine the effectiveness of the plan.\nSpecifically, information adequately demonstrating compliance was not provided, and the 2020\nAlarm Management Plan was not reviewed within the required interval. Respondent did not\ncontest the allegation of violation as alleged in the Notice but provided additional detail about the\nunanticipated impact of the COVID-19 pandemic that Tallgrass asserted led to the circumstances\nalleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 192.631(e)(4).\n16. Item 7 - 49 C.F.R. § 192.631(h)(6): The Notice alleged that Tallgrass failed to\nconduct team training in 2019 and 2020, as required by the regulation. Respondent did not contest\nthe allegation of violation as alleged in the Notice but provided additional detail about the\nunanticipated challenges presented by federal, state, and local restrictions associated with the\nCOVID-19 pandemic, including those which necessitated multiple isolated control rooms for\nsocial distancing, that Tallgrass asserted led to the circumstances alleged in the Notice. As such,\nPHMSA finds a violation of 49 C.F.R. § 192.631(h)(6).\n17. Items 1, 4, 5, 6, and 7, will be considered by PHMSA as prior offenses in any future\nPHMSA enforcement action taken against Respondent.\nIII. Warning Item:\n18. Item 2 - 49 C.F.R. § 192.631(c)(4): The Notice alleged that Tallgrass’ records\nfailed to demonstrate that it tested the 360 local backup SCADA system for 2019, 2020, and 2021.\nFollowing issuance of the Notice, documentation was provided by Respondent showing that the\n360 local backup SCADA system was tested in these years. Because these records were\nmaintained by Respondent, but not provided at the time of inspection due to a misunderstanding\nbetween the Parties, the Parties agree that this Item should be changed to a warning item and it\ndoes not constitute a finding of violation for any purpose. Respondent neither admits nor denies\nthe probable violation for this Item, but, for purposes of settlement, has agreed to accept a warning\n\n\n\nitem. As such, the allegation of violation for Item 2 is changed to a warning and the proposed civil\npenalty associated with this Item is withdrawn. No further action is required by Respondent.\n19. If OPS finds a violation of this provision in a subsequent inspection, Respondent\nmay be subject to future enforcement action.\nIV. Items Withdrawn:\n20. Item 3 - 49 C.F.R. § 192.631(e)(1): With respect to Item 3 of the Notice, the Parties\nagree that this Item should be withdrawn following review of additional records received during\ninformal discussion demonstrating that Respondent was in compliance with the cited regulation.\nBecause this Item is withdrawn, it will not constitute a finding of violation for any purpose, and\nno further action by Respondent is necessary with respect to this item. As such, the allegation of\nviolation for Item 3 and the proposed compliance order associated with this Item are withdrawn.\n21. Item 8 - 49 C.F.R. § 192.631(j)(1): With respect to Item 8 of the Notice, the Parties\nagree that this Item should be withdrawn following review of additional records received during\ninformal discussion demonstrating that Respondent was in compliance with the cited regulation\nand that there was no repeat violation. Because this Item is withdrawn, it will not constitute a\nfinding of violation for any purpose, including with respect to present or future penalty\ncalculations, and no further action by Respondent is necessary with respect to this item. As such,\nthe allegation of violation for Item 8 and the proposed civil penalty associated with this Item are\nwithdrawn.\nV. Civil Penalty:\n22. Items 1 and 7: The Notice proposed assessing a civil penalty in the amount of\n$39,100 for Item 1 and $39,100 for Item 7. Respondent did not contest the proposed civil penalties\nfor these Items. As such, Respondent shall pay a civil penalty in the amount of $39,100 for Item\n1 and $39,100 for Item 7.\n23. Respondent will pay a total reduced civil penalty in the amount of $78,200,\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.\nVI. Compliance Order:\n24. Item 4: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order and\nexplained that it was in the process of implementing procedural revisions to address the allegations\nand the Proposed Compliance Order. Respondent performed the following corrective measures in\ncoordination with the Central Region, documentation for which Respondent has submitted to the\nDirector:\nTallgrass must amend its procedure to include a report that provides both the date and time\nthe point was placed in the associated state and when it was removed. It also needs to\ninclude a requirement to review SCADA logs, MOC documents and the like to determine\n\n\n\nand document the reason for the action, the length of time the point was in the associated\nstate and if the time period exceeded the period that was required for associated\nmaintenance or operating activities. The procedure also needs to include the requirement\nto document the date and individual(s) completing the review. The SCADA master\ndatabase needs to be reviewed to address the points that have been designed but not\nintegrated to the field as well as the historical points. The monthly report should either not\ninclude these items or they can be filtered to allow reviewers to only look at the relevant\ninformation.\nNo further compliance action is required for Item 4.\n25. Item 5: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order and\nexplained that it was in the process of implementing procedural revisions to address the allegations\nand the Proposed Compliance Order. Respondent performed the following corrective measures in\ncoordination with the Central Region, documentation for which Respondent has submitted to the\nDirector:\nTallgrass must amend its procedure to detail the process it employs for the annual review\nof safety-related alarm set-point values and alarm descriptions. The procedure needs to\ninclude how identified deficiencies will be documented and resolved as well as how this\nreview will be documented, and how records will be preserved for inspection. Additionally,\nthe operator needs to conduct a verification using the amended procedure to verify the\ncorrect safety-related alarm set-point values and alarm descriptions.\nNo further compliance action is required for Item 5.\n26. Item 6: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order and\nexplained that it was in the process of implementing procedural revisions to address the allegations\nand the Proposed Compliance Order. Respondent performed the following corrective measures in\ncoordination with the Central Region, documentation for which Respondent has submitted to the\nDirector:\nTallgrass must amend its procedure to detail the documentation of the topics that will be\nincluded in the annual review of the Alarm Management Plan. Tallgrass must clarify what\nwill be included in the review to coordinate what Table 14 states in comparison to the\nprocedure.\nNo further compliance action is required for Item 6.\n\n\n\nVII. Enforcement:\n27. This Agreement is subject to all enforcement authorities available to PHMSA under\n49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under\n49 U.S.C. § 60122, of up to $266,015 per violation for each day the violation continues and referral\nof the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent\nis not complying with the terms of this Agreement in accordance with the determinations made by\nthe Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to\nthe Dispute Resolution process herein. The maximum civil penalty amounts are adjusted annually\nfor inflation. See 49 C.F.R. § 190.223. Any work plans and associated schedules set forth or\nreferenced in Section VI (Compliance Order) are automatically incorporated into this Agreement\nand are enforceable in the same manner.\nVIII. Review and Approval Process:\n28. With respect to any submission under Section VI (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 actions\nas approved by the Director, subject to Respondent’s right to invoke the dispute resolution\nprocedures with respect to any conditions the Director identifies. If the Director disapproves all\nor any portion of the submission, the Director will provide Respondent a written notice of the\ndeficiencies. Respondent will correct all deficiencies within the time specified by the Director and\nresubmit it for approval.\nIX. Dispute Resolution:\n29. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement, including any decision of the Director under the terms of Section VIII\n(Review and Approval Process). If Respondent and the Director are unable to informally resolve\nthe dispute 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. Such request must be made in writing and provided to the Director,\ncounsel for the Central Region, and to the Associate Administrator, no later than 10 calendar days\nfrom the 15-day deadline for informal resolution referenced in this paragraph. Along with its\nrequest, Respondent must provide the Associate Administrator with all information Respondent\nbelieves is relevant to the dispute. Decisions of the Associate Administrator under this paragraph\nwill constitute final agency action. The existence of a dispute and PHMSA’s consideration of\nmatters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion\nof any work to be performed under this Agreement during the pendency of the dispute resolution\nprocess.\nX. Effective Date:\n\n\n\n30. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator incorporating the terms of this Agreement.\nXI. Recordkeeping and Information Disclosure:\n31. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at least\nfive (5) years following completion of all work to be performed, unless a longer period of time is\nrequired pursuant to 49 C.F.R. parts 190-199. For any reports, plans, or other deliverables required\nto be submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim of business\nconfidentiality or other protections applicable to the release of information by PHMSA, covering\npart or all of the information required to be submitted to PHMSA pursuant to this Agreement in\naccordance with 49 C.F.R. Part 7. Respondent must mark the claim of confidentiality in writing\non each page, and include a statement specifying the grounds for each claim of confidentially.\nPHMSA determines release of any information submitted pursuant to this Agreement in\naccordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and\nPHMSA policies, and other applicable regulations and Executive Orders.\nXII. Modification:\n32. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nXIII. Termination:\n33. This Agreement will remain in effect until the Civil Penalty in Section V is paid in\nfull. The Agreement shall not terminate until the Director confirms, in writing, that the Agreement\nis terminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement.\nXIV. Ratification:\n34. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n35. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor Tallgrass Interstate Gas Transmission:\n___________________________________\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Central Region, Office of Pipeline Safety\n________________________\nDate\n\n32023016NOPV_PHC Hearing Scheduled_10262023_(22-238055)_text.pdf\n\nOctober 26, 2023\nVIA ELECTRONIC MAIL TO: kale.stanton@tallgrass.com and gregory.ochs@dot.gov\nMr. Kale Stanton\nDirector, Asset Integrity\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\nCPF No. 3-2023-016-NOPV\nDear Mr. Stanton 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\nPipeline and Hazardous Materials Safety Administration in the above-referenced case. The\nhearing will take place on June 6th, 2024, beginning at 8:30 a.m. Central Time.\nThe hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480,\nKansas City, Missouri 64106. Upon arrival at the building, attendees will be required to present\nphoto identification to security personnel. A contact phone number for the day of the hearing is\n(816) 329-3800.\nAt least 10 calendar days prior to the hearing (or by May 27th, 2024), both parties must submit\nand exchange any additional written materials they intend to present at the hearing and the name\nand email address of each attendee. This information should be provided electronically.\nMaterials not submitted by this date may be excluded. If you have any questions, please do not\nhesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Mr. Matt Sheehy, President and Chief Executive Officer, Tallgrass Energy, LP,\nmatt@tallgrass.com\nMs. Catherine Little, Esq., Counsel for Tallgrass Energy, Bracewell, LLP,\ncatherine.little@bracewell.com\nMr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety,\nryan.mcclure@dot.gov\n\n32023016NOPV_PHC Hearing Rescheduled_05232024_(22-238055)_text.pdf\n\nDate: May 23, 2024\nFrom: Larry White\nTo: File\nRe: Continuance of Hearing, Tallgrass Energy\nCPF No. 3-2023-016-NOPV\nBy electronic mail dated May 22, 2024, Ryan McClure, Counsel for OPS Central Region, and\nCatherine Little, Counsel for Tallgrass Energy, submitted a joint request for a continuance of the\nhearing previously scheduled for June 6, 2024. The request explained that the parties had reached\nan agreement to resolve the case which would make a hearing unnecessary, and the additional time\nwas needed to complete and execute the written consent agreement and order.\nI granted the request for a continuance until July 24, 2024 which will be the new hearing date if\nresolution by consent agreement is not completed by that time.","truncated":false,"body_characters":35721}