# WILLIAMS ENERGY SERVICES — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 420045006
- **title:** WILLIAMS ENERGY SERVICES — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2004-03-15
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.452(h)(4).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420045006
**body:**

Notice of Probable Violation involving WILLIAMS ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulation as 195.452(h)(4). The case was opened on 2004-03-15 and is reported as closed as of 2005-09-15. Proposed civil penalty: $105,000. Assessed civil penalty: $105,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420045006_Final Order_08182005.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420045006/420045006_Final%20Order_08182005.pdf

cpf420045006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420045006/cpf420045006.pdf

MAGELLAN PIPELINE COMPANY (420045006).pdf: https://primis.phmsa.dot.gov/enforcement-documents/420045006/MAGELLAN%20PIPELINE%20COMPANY%20(420045006).pdf

420045006_Final Order_08182005.pdf

@
U.5. Deportment
of Tronsportotion
rlpetine ono
Hozordous Moteriols Sofety
Administrotlon AUG 1 I ?005
400 Seventh Street, S.W.
Washington, D.C. 20590
Rick A. Olsen
Vice President, Pipeline Operations
Magellan Pipeline Company
One Williams Center
P.O. Box 22186
Tulsa, OK 74121-2186
Re: CPF No. 4-2004-5006
Dear Mr. Olsen:
Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the
above-refercnced case. Itmakes findings ofviolation and assesses acivilpenaltyof $105,000. The
penaltypayment terms are set forth in the Final Order. This enforcement action closes automatically
upon payment. Your receipt ofthe Final Order constitutes service of that document under 49 C'F.R.
$ 190.s.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline SafetY
Enclosure
ccl
Rod M. Seeley
Director, Southwest Region, OPS
Michael C. Pearson
Manager, Asset Integnty, Magellan Midstream Partners, L'P'



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAI'ETY ADMINISTRATION
OFFICE OF PIPELIM SAFETY
WASHINGTON. DC 20590
In the Matter of
Magellan Pipeline Company
Respondent.
CPF No. 4-20A4-5006
FINAL ORDER
On May 5-9 and May 19-23,2003, pursuant to 49 U.S.C. $ 60117, representatives ofthe Office of
Pipeline Safety (OPS) conducted an on-site pipeline safety inspection ofRespondent's facilities and
records in Tulsa, Oklahoma. As a result of the inspection, the Director, Southwest Region, OPS,
issued to Respondent, by letter dated March 15 ,2004, a Notice of Probable Violation and Proposed
Civil Penalty (Notice). In accordance with 49 C.F.R. S 190.207, the Notice proposed finding that
Respondent had violat ed 49 C.F.R. 5 I95 .452 and proposed assessing a civil penalty of $ 105,000
for the alleged violation.
Respondent responded to the Notice by letter dated April 16, 2004 (Response). In its response,
Respondent indicated that it had additional information that it believed was relevant to the alleged
violation that was not provided to OPS at the time of the inspection and requested a hearing. The
hearing was held in Houston, Texas on September 15,2004.
FINDING OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. $ 195.452(h)(a)(i) bV failing to temporarily
reduce operating pressure or shut down its Tulsa to Shelton #3 l2-inch pipeline immediately
following its identification of numerous anomalies meeting the criteria for "immediate repair
conditions" until repairs of these conditions could be completed. With respect to seven of the
immediate repair conditions, the Notice alleged that Respondent failed to respond until
approximately one month after the integrity assessment in which they were identified was conducted'
At the heaing, Respondent explained that under the policy it had in place at the time, it did not
designate the date of "discovery" of arepair condition as the date that the anomaly was identified
in the inteerity assessment, but rather, it designated the discovery date as the date the identified
anomaly was subsequently excavated (and repaired). Under $ 195.452(h)(2), however, discovery
of a condition occurs "when an operatorhas adequate information about the condition to determine
that the condition represents a potential threat" to the integrity of the pipeline. In this case, the



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integrity assessment was conducted by internal inspection, meaning that information such as the
percentage of metal loss from corrosion and the magnitude of dent-type deformations sufficient to
enable a determination that the potential exists for an integrity threat at the corresponding location
was available to Respondent in the internal inspection results. Therefore, Respondent was not
justified in failing to take remedial measures until subsequent excavations were performed.
Accordingly, I find that Respondent violated $ 195.452(h)(a)(i) by failing to temporarily reduce
operating pressure or shut down its Tulsa to Shelton #3 l2-inchpipeline immediately following its
identification of the seven specified anomalies meeting the criteria for immediate repair conditions.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. S 60122, Respondent is subject to a civil penalty not to exceed $100,000 per
violation for each day of the violation up to a maximum of $1,000,000 for any related series of
violations.
49 U.S.C. S 60122 and 49 C.F.R. S 190.225 require that, in determining the amount of the civil
penalty, I consider the following criteria: nature, circumstances, and gravity of the 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 civil penalty of $105,000 for Respondent's failure to take immediate action
following its identification of certain anomalies on its Tulsa to Shelton #3 t2-inchpipeline meeting
the applicable criteria for immediate repair conditions. At the hearing, Respondent acknowledged
its failure to take immediate action with respect to the seven specified conditions, but explained that
it had now changed its policy in this regard and that as a result, it now designated discovery as the
time of the integrity assessment, not the time a subsequent excavation was conducted.
The integrity management program regulations require pipeline operators to take immediate action
including temporarily reducing operating pressure or shutting down a line until repairs can be made
when anomalies meeting the criteria for immediaterepair conditions are identified in the course of
anintegrityassessment. Underparagraph(I)of$ 195.452(h)(4),immediaterepairconditionsinclude
those in which 80 percent of the pipe wall thickness has been lost due to corrosion, a significant
reduction in remaining pipe wall strength has occurred, or dents greater than 6 percent the pipe
diameter are present. For conditions that are less likely to constitute immediate threats, paragraphs
(ii) and (iii) of the regulation provide operators with additional time for taking appropriate action.
WhileRespondent eventuallychangeditspolicyto bringits discoverypractices into compliancewith
the regulation, taking immediate action when an integrity threatening condition is identified is a
fundamental obligation of all pipeline operators and should never have been compromised in
formulating its company policy to begin with. Respondent has not submitted information that



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would warrant a reduction in the civil penalty amount proposed in the Notice for this violation.
Accordingly, I assess Respondent a civil penalty of $105,000 for the above-described violation of
49 C.F.R. § 195.452(h)(4)(1).
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 89.21(b)(3)) require this payment be made by wire transfer, through the Federal Reserve
Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are
contained in the enclosure. Questions concerning wire transfers should be directed to: Financial
Operations Division (AMZ-120), Federal Aviation Administration, Mike Monroney Aeronautical
Center, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893.
Failure to pay the $105,000 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those
same authorities, a late penalty charge of six percent (6%) per annum will be charged if payment is
not made within 110 days of service. Furthermore, failure to pay the civil penalty may result in
referral of the matter to the Attorney General for appropriate action in a United States District Court.
Under 49 C.F.R. § 190.215, Respondent has a right to submit a petition for reconsideration of this
Final Order. Should Respondent elect to do so, 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 filing
of a petition automatically stays the payment of any civil penalty assessed. However if Respondent
submits payment of the civil penalty, the Final Order becomes the final administrative decision and
the right to petition for reconsideration is waived. The terms and conditions of this Final Order are
effective on receipt.
AUG 18 2005
Stacey Gerard
Date Issued
for Pipeline Safety
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