{"operation":"document","citation":"CPF 420041003","title":"PANHANDLE EASTERN PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2004-02-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.605.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420041003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420041003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420041003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420041003","body":"Notice of Probable Violation involving PANHANDLE EASTERN PIPELINE CO. PHMSA's enforcement data identifies the cited regulation as 192.605. The case was opened on 2004-02-11 and is reported as closed as of 2005-08-12. Proposed civil penalty: $4,000. Assessed civil penalty: $4,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420041003_Final Order_08242004.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420041003/420041003_Final%20Order_08242004.pdf\n\n420041003_Final Order_08242004.pdf\n\n?}\nU.S.Deporlment of Tro nsoortotion\nReseorch ond\nSpeciol Progromt Administrotion\n400 Seventh Sl.. S W\nWashrnglon. D.C 205S0\nAUC 2 4 2004\nMr. Rob Martinovich\nSenior Vice President of Operations\nDuke Energy Field Services\n6120 S. Yale. Suite 1100\nTulsa, OK 74136\nRE: CPFNo.4-2004-1003\nDear Mr. Martinovich:\nEnclosed is the Final Order issued bythe Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes a finding ofviolation and assesses a civil penalty of$4,000. The\npenaltypayrnenttemsaresetforthintheFinalOrder. Thisenforcementactionclosesautomatically\nupon pa)ment. Your receipt of the Final Order constitutes service ofthat document under 49 C.F.R.\n$ 190.5.\nSincerely,\n*:- {u\"-\n$u(- Cwendolyn M. Hill\nPipeline Compliance Registry\nOffice of PiPeline SafetY\nEnclosure\ncc: Mr. R. M. Seeley, Director, OPS Southwest Region\nCERTIFIED MAIL. RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF' PIPELINE SAF'ETY\nWASHINGTON. DC 20590\nIn the Matter of\nDuke Energy Field Services,\nRespondent.\n)\n)\n)\n)\n) CPF No. 4-2004-1003\nFINAL ORDER\nOn April 21-25,2003, pursuant to 49 U.S.C. $ 60117, a representative of the Office of Pipeline\nSafety (OPS) conducted an on-site pipeline safety inspection of Panhandle Eastem Pipeline\nCompany's (PEPL's) onshore pipeline facilities and records in the Guyrnon-Hansford area ofTexas\nand Oklahoma, which are operated by Duke Energy Field Services (Respondent). As a result of the\ninspection, the Director, Southwest Region, OPS, issued to Respondent, by letter dated February I l,\n2004, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In accordance with\n49 C.F.R. $ 1 90.207, the Notice proposed frnding that Respondent had violated 49 C.F,R. $ 192.605\nand proposed assessing a civil penalty of$4,000 for the alleged violation.\nRespondent responded to the Notice by letter dated March 4, 2004 (Response). Respondurt\ncontested the allegation, offered information in explanation of the allegation and requested\nreconsideration. Respondent did not request a hearing, and therefore has waived the right to one.\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. $192.605 (a) by failing to have an updated\nO&M Manual and Standard Operating Procedures (SOP) available to appropriately maintain its\nfacilities. Respondent has ax agreement with Panhandle Eastem Pipeline (PEPL) to operate certain\nPEPL pipelines located in Texas, Kansas and Oklahoma. At time of the inspection, the O & M\nManual and SOP in use by Respondent had not been updated for the years 2001 Nrd2002.\nIn its Response, Respondent explained that it entered into an agreement in 1998 with PEPL to\noperate cerlain PEPL pipelines and to dc sc in accorCance rvith PEPL's 1998 O & M Manual and\nSOP. A facility-specific O & M Manual and SOP were created for the Gu1'rnon-Hansford area PEPL\npipelines operated by Respondent. Respondent further explained that the agreement only allowed\nfacility-specific updates that would be necessary to comply with changes in applicable laws or\n\n\n\n2\nregulations. Respondent contends that it reviewed the facility-specific O&M manual and SOP in\n2001 and 2002 andno required changes were identified.\nAfter the OPS inspection, Respondent submitted documentation to the OPS regional office\nindicating that updated O&M manual and SOP was provided to Respondent by PEPL, Respondent\nalso explained that based upon changes in the terms of its operating agreement with PEPL, the\nupdates and the O&M manual and SOP will now be provided by PEPL.\nRespondent stated that the O & M Manual and SOP were not updated as the terms of the agreement\nbetween Respondent and PEPL did not provide for sufficient flexibility with respect to voluntary\nmodifications or revisions. All gas and hazardous liquid pipeline operators must prepare and follow\nfor each pipeline, a manual of written procedures for conducting operations and maintenance\nacti.,'ities and for emergency response to safely and effectively maintain its facilities. This manual\nmust be reviewed and updated by the operator at intervals not exceeding 1 5 months, but at least once\neachcalendaryear. Thelanguagein4gc.F.R.$l92.605ismandatory,asitusestheword\"must\"and\ncreates an obligation for all gas operators to update their O&M manuals. Compliance with federal\nregulations is not optional. The O & M Manual and SOP in use by Respondent at time of the\ninspection had not been updated for the years 2001 arrd2002. Accordingly, I find that Respondent\nviolated 49 C.F.R. 9192.605(a) by failing to updated its O & M Manual and SOP at intervals not\nexceeding 15 months, but at least once each calendar year.\nThis finding ofviolation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. Q 60122, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations. The Notice proposed a $4,000 civil penalty for violation of 49 C.F'R. $ 195.605(a).\n49 U.S.C. g 60122 and 49 C.F.R. $ 1g0.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity ofthe violation, degree\nof Responaent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other matters as justice may require.\nThe Notice proposed a civil penalty of $4,000, as Respondent failed to updated its o & M Manual\nand SOp at intervals not exceeding 15 months, but at least once each calendar year. Procedures are\nessential to an operator's employees being able to perform their duties. An operatorneeds to have\nwritten proceCures instructing personnel to recognize those safety-related conditions that can affect\n\n\n\n1\n3\na pipeline's operation so that issues can be appropriately addressed and reported. Respondent does\nnot deny that the O & M Manual and SOP were not updated as required by 49 C.F.R. $ 195.605(a).\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na civil penalty of $4,000.\nPayrnent of the civil penalty must be made within 20 days of service. Pa)rrnent may be made by\nsending a certified check or money order (containing the CPF Number for this case) payable to\n'U.S. Department of Transportation\" to the Federal Aviation Adminishation, Mike Monroney\nAeronautical Center, Financial Operations Division (ANIZ-120), P.O. Box 25770, OklahomaCity,\noK 73125.\nFederal regulations (49 C.F.R. $ 89.21(bX3) also permit this paynent to be made bywire transfer,\nthroughtheFederalReserve Communications System(Fedwire), tothe aecountoftheU.S. Trea,sury.\nDetailed instructions are contained in the enclosure. Questions conceming wire transfers should be\ndirected to: Financial Operations Division ( NIZ-I}}), Federal Aviation Administration, Mike\nMonroneyAeronautical Center, P.O. Box 25082, Oklahoma City, OK '13125; (405) 954-8893.\nFailure to pay the $4,000 civil penalty will result in accrual of interest at the curent annual rate in\naccordancewith3l U.S.C. 53717,31 C.F.R. $ 901.9and49C.F.R. $ 89.23. Pursuanttothosesame\nauthorities, a late penalty charge of six percent (6%) per arurum will be charged if paynent is not\nmade within 1 10 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attorney General for appropriate acfion in an United States District Court.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to petition for reconsideration of this Final\nOrder. The petition must be received within 20 days ofRespondent's receipt of this Final Ordsr and\nmust contain abief statement of the issue(s). The filing of a petition automatically stays the\npaynent of any civil penalty assessed. All other terms ofthe order, including any required corrective\naction, shall remain in full effect unless the Associate Administrator, upon written request, grants\na stay. The terms and conditions of this Final Order are effective upon receipt.\nFailure to comply with this Final Order may result in the assessment of civil penalties of up to\n$100,000 per violation per day, or in the refenal ofthe case forjudicial enforcement.\nAU0 2 4 2004\nDate Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":9055}