{"operation":"document","citation":"CPF 32023024NOA","title":"LAMBDA ENERGY GATHERING LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-12-27","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023024noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023024noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023024noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023024NOA","body":"Notice of Amendment involving LAMBDA ENERGY GATHERING LLC. PHMSA's enforcement data identifies the cited regulation as 195.402(c)(3). The case was opened on 2023-12-27 and is reported as closed as of 2024-01-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023024NOA_Closure Letter_01162024_(23-264767).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023024NOA/32023024NOA_Closure%20Letter_01162024_(23-264767).pdf\n\n32023024NOA_Closure Letter_01162024_(23-264767)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023024NOA/32023024NOA_Closure%20Letter_01162024_(23-264767)_text.pdf\n\n32023024NOA_Notice of Amendment_12272023_(23-264767).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023024NOA/32023024NOA_Notice%20of%20Amendment_12272023_(23-264767).pdf\n\n32023024NOA_Notice of Amendment_12272023_(23-264767)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023024NOA/32023024NOA_Notice%20of%20Amendment_12272023_(23-264767)_text.pdf\n\n32023024NOA_Operator Response to Notice_01022024_(23-264767).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023024NOA/32023024NOA_Operator%20Response%20to%20Notice_01022024_(23-264767).pdf\n\n32023024NOA_Notice of Amendment_12272023_(23-264767)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: hfaulkner@lambdaoil.com;\njmcgrath@lambdaenergyllc.com; jstalmack@lambdaenergyllc.com\nDecember 27, 2023\nHarry Faulkner\nPresident/CEO\nLambda Energy Gathering LLC\n12012 Wickchester LN Suite 300\nHouston, Texas 77079\nCPF No. 3-2023-024-NOA\nDear Mr. Faulkner:\nFrom July 25, 2023 through July 27, 2023, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected Lambda Energy Gathering LLC’s (LEG) Operations, Maintenance and\nEmergencies (O&ME) Manual of procedures in Kalkaska, Michigan.\nAs a result of the inspection, PHMSA has identified the apparent inadequacies found within\nLEG’s procedures. The items inspected and the inadequacies are described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nLEG did not have adequate procedures addressing the requirement to protect against ignitions\narising out of static electricity, lightning, and stray currents during operation and maintenance\nactivities involving aboveground breakout tanks in accordance with API RP 2003, as required by\n\n\n\n49 C.F.R. § 195.405(a). Specifically, the information provided in section 7.0 of LEG’s O&ME\nManual for protecting aboveground breakout tanks against static electric hazards during\noperation and maintenance activities was general and broad in nature, and did not elaborate on\nthe activities or practices for controlling and minimizing the static electric hazards. Furthermore,\nthere was no safety process developed or guidance provided in section 7.0 of the O&ME Manual\nfor the protection of aboveground breakout tanks against ignitions arising out of lightning and\nstray currents.\nLEG must therefore review and amend its procedures to address these deficiencies by applying\nthe provisions of the code-referenced edition of API RP 2003, specifically the control measures\nin sections 4.5, 5.0, and 6.0 for controlling and reducing the ignition hazards associated with\nstatic electricity, lightning strikes, and stray currents.\nFollowing the PHMSA inspection, LEG revised section 7.0 of the O&ME Manual and\nincorporated the applicable recommended practices found under the aforementioned sections of\nAPI RP 2003. The outlined inadequacies appear to have been corrected with no further action\nnecessary for Item 1.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nLEG procedures did not address the requirement for maintaining adequate firefighting equipment\nat breakout tank areas, as required by 49 C.F.R. § 195.430. Specifically, no process was defined\nin section 7.0 of LEG’s O&ME Manual that addresses the requirement for maintaining adequate\nfirefighting equipment at breakout tank areas as well as the requirements outlined under (a), (b),\nand (c) of 49 C.F.R. § 195.430. Therefore, LEG must review and amend its procedures to address\nfirefighting equipment maintenance, inspection and location at breakout tank areas.\nFollowing the PHMSA inspection, LEG modified its procedures under the O&ME Manual by\nproviding adequate and consistent guidance on firefighting equipment requirements at breakout\ntank areas and pumps stations, and identifying the appropriate OSHA regulations for the\nplacement, maintenance, and testing of portable fire extinguishers. Thus, no further action is\nnecessary for Item 2.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement\nProceedings.\nPlease refer to this document and note the response options. Be advised that all material you\n\n\n\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, amended\nprocedures, or a request for a hearing under § 190.211. As mentioned above, LEG has already\nsubmitted amended procedures to PHMSA which reflect the amendments required by this Notice.\nThese amended procedures were reviewed and found to be adequate by PHMSA, therefore, no\nfurther action or response is required. If no additional response is received within 30 days of\nreceipt of this Notice, this enforcement will be automatically closed.\nIt is requested that LEG maintain documentation of the safety improvement costs associated with\nfulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit the\ntotal to Gregory A. Ochs, Director, Central, Pipeline and Hazardous Materials Safety\nAdministration. In correspondence concerning this matter, please refer to CPF 3-2023-024-NOA\nand, for each document you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: James McGrath, Michigan Plant and Pipeline Manager, jmcgrath@lamdaenergyllc.com\nJohn Stalmack, Regulatory Compliance Manager, jstalmack@lambdaenergyllc.com\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n\n32023024NOA_Closure Letter_01162024_(23-264767)_text.pdf\n\nVIA ELECTRONIC MAIL TO: hfaulkner@lambdaoil.com;\njmcgrath@lambdaenergyllc.com; jstalmack@lambdaenergyllc.com\nJanuary 16, 2024\nHarry Faulkner\nPresident/CEO\nLambda Energy Gathering LLC\n12012 Wickchester LN Suite 300\nHouston, Texas 77079\nRE: CPF No. 3-2023-024-NOA\nDear Mr. Faulkner:\nFrom July 25, 2023 through July 27, 2023, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected Lambda Energy Gathering LLC’s (LEG) Operations, Maintenance and\nEmergencies (O&ME) Manual of procedures in Kalkaska, Michigan. As a result of the\ninspection, LEG was issued a Notice of Amendment on December 27, 2023, which proposed\namendment of LEG’s Procedures.\nLEG submitted its response to the Notice on January 2, 2024. In its response, LEG stated that the\namended procedures had been previously submitted to PHMSA. My staff has confirmed that the\namended procedures were received, and it appears that the inadequacies outlined in this Notice\nof Amendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: James McGrath, Michigan Plant and Pipeline Manager, jmcgrath@lamdaenergyllc.com\n\n\n\nJohn Stalmack, Regulatory Compliance Manager, jstalmack@lambdaenergyllc.com\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings","truncated":false,"body_characters":9257}