BLACK MARLIN PIPELINE CO — Notice of Probable Violation

420022001_Final Order_12032002.pdf, page 1Official PDFt t o US.Deoofirnent of fronsDonofion ReseorEh(nrd Speclol Prognorrs Admlniitrqtion 400 Seventh Slreet, S,W. Washington. o.C. 20590 DEC - 3 n02 Mr. Robert T. Cronk Vice President of Technical Services Williams Energy Services Williams South One Building 1800 South Baltimore Avenue Tulsa, OK 74 | 19 Re: CPFNo.4-2002-2001 Dear Mr. Cronk: Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes a finding of violation and assesses a civil penalty of $30,000. The penalty payment terns are set forth in the Final Order. This enforcement action closes automatically upon payment. Your receipt of the Final Order constitutes service of that document under 49 C.F.R. $ 190.5. Sincerely, GwendolynM. Pipeline Compliance Registry Office of Pipeline Safety Enclosure cc: Joe Freisberg Senior Compliance Coordinator Williams Energy Services P.O.Box21628 Tulsa. OK7412l CERTIFIED MAIL - RETURN RECEIPT REOUESTED#

420022001_Final Order_12032002.pdf, page 2' ( DEPARTMENT OF TRANSPORTATION RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON. DC 20590 In the Matter of Mlliams Field Services, Respondent. CPF No. 4-2002-2001 FINAL ORDER On September 17 and 18, 2001, pursuant to 49 U.S.C. $ 60117, a representative of the Office of Pipeline Safety (OPS) conducted an on-site pipeline safety inspection of Respondent's Black Marlin pipeline system facilities and records in Galveston County, Texas and the Gulf of Mexico. As a result of the inspection, the Director, Southwest Region, OPS, issued to Respondent, by letter dated AprillS,2002,aNoticeofProbableViolationandProposedCivilPenalty(Notice). Inaccordance with 49 C.F.R. $ 190.207, the Notice proposed finding that Respondent violated 49 C.F.R. g 192.201(a)(2)(i) and proposed assessing a civil penalty of $30,000 for the alleged violation. Respondent responded to the Notice by letter dated May 17,2002 (Response). Respondent did not contest the allegation of violation, provided information conceming the corrective actions it has taken, and stated that it intended to pay the proposed civil penalty. Respondent did not request a hearing, consequently Respondent has waived its right to one. FINDING OF VIOLATION In its Response, Respondent did not contest the alleged violation in the Notice. Accordingly, I find that Respondent violated the following section of 49 C.F.R. Part 192, as more fully described in the Notice: 49 C.F.R. g 192.201(a)(2)(i) - fallingto set pressure limiting devices properly to ensure that Respondent's Black Madin pipeline pressure could not exceed its maximum allowable operating pressure ("MAOP") plus l0 percent. This finding ofviolationwill be considered aprior offense in any subsequent enforcement action taken against Respondent.#

420022001_Final Order_12032002.pdf, page 3ASSESSMENT OF PENALTY Under 49 U.S.C. $ 60122, Respondent is subject to a civil penalty not to exceed $25,000 per violation for each d'ay of the violation up to a maximum of $500,000 for any related series of violations. 49 U.S.C. $ 60122 and 49 C.F.R. $ 190.225 require that, in determining the amount of the civil penalty, I consider the following criteria: nature, circumstances, and gravity ofthe violation, degree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's ability to continue in business, and such other matters as justice may require. The Notice proposed a total civil penalty of $30,000 for Respondent's violation of $ 192.201(a)(2)(i), failure to properly set its emergency shut-down devices at three separate locations. Excessive presswe can cause pipeline failures and the subsequent release of natural gas into the environment. This is ofparticular concern because the subject pipeline is situated in a Class 3 location, making the release of natural gas a serious hazard to the public. In its Response, Respondent described the prompt corrective action it has taken and agreed to pay the proposed civil penalty. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a total civil penalty of $30,000. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. $ 89.21OX3) require this payment be made bywiretransfer, throughthe Federal Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are contained in the enclosure. Questions conceming wire transfers should be directed to: Financial Operations Division (AMZ-120), Federal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 25770, Oklahoma City, OK 73125; (405)9544?19. Failure to pay the $30,000 civil penalty will result in accrual ofinterest at the current annual rate in accordancewith3l U.S.C. 53717,31C.F.R. $90l.9and49C.F.R. $ 89.23. Pursuanttothosesame authorities, a late penalty charge of six percent (6%) per anmrm will be charged if payment is not made within I l0 days of service. Furthermore, failure to pay the civil penalty may result in refenal of the matter to lhe Attorney General for appropriate action in a United States District Court. Under 49 C.F.R. $ 190.215, Respondent has the right to petition for reconsideration of this Final Order. However, ifthe civil penalty is paid, the case closes automatically and Respondent waives the right to petition for reconsideration. The filing of the petition automatically stays the payment#

420022001_Final Order_12032002.pdf, page 4of any civil penalfy assessed. The petition must be received within 20 days of Respondent's receipt of this Final Order and must contain a brief statement of the issue(s). The terms and conditions of this Final Order are effective on receipt. t)Ec - 3 2002 Date Issued Associate Administrator for Pipeline Safety#