{"operation":"document","citation":"CPF 420055005","title":"NOBLE MIDSTREAM SERVICES, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2005-01-06","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(b), 195.452(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420055005.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420055005.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420055005","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420055005","body":"Notice of Probable Violation involving NOBLE MIDSTREAM SERVICES, LLC. PHMSA's enforcement data identifies the cited regulations as 195.452(b),  195.452(b)(2). The case was opened on 2005-01-06 and is reported as closed as of 2005-09-15. Proposed civil penalty: $55,000. Assessed civil penalty: $55,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420055005_Final Order_09012005.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420055005/420055005_Final%20Order_09012005.pdf\n\n420055005_Final Order_09012005.pdf\n\n@\nU.S. Deportment\nof Tronsporlotion\nPlpellne ond\nHozordous moteriols sotety\nloministrqtion\n400 Seventh Street, S.W.\nWashington, D.C.20590\nEEP . 1 2CC5\nMr. Richard Peneguy, Jr.\nVice President and General Manager, Offshore Division\nNoble Energy, Inc.\n100 Glenborough Drive, Suite 100\nHouston, TX 77067-3618\nRe: CPF No. 4-2005-5005\nDear Mr. Peneguy:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in\nthe above-referenced case. It makes findings of violation and assesses a civil penalty of $55,000.\nThe penalty payment terms are set forth in the Final Order. This enforcement action closes\nautomatically upon payment. Your receipt of the Final Order constitutes service of that\ndocument under 49 C.F.R. $ 190.5.\nSincerely,\nt \\ N , J-\"^\niames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline SafetY\nEnclosure\ncc: Robert H. Bemis, Manager Domestic EH&S, Noble Energy, lnc'\nR.M. Seeley, Director, Southwest Region, OPS\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON. DC 20590\nIn the Matter of\nNoble Energy, Inc.,\nRespondent\nCPF No. 4-2005-5005\nFINAL ORDER\nOn August 9-12,2004, pursuant to 49 U.S.C. $ 60117, representatives of the Office of Pipeline\nSafety (OPS) conducted an on-site pipeline safety inspection of Respondent's integrity\nmanagement program in Houston, Texas. As a result of the inspection, the Director, Southwest\nRegion, OPS, issued to Respondent, by letter dated January 6, 2005, a Notice of Probable\nViolation and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. $ 190.207, the\nNotice proposed finding that Respondent had committed violations of 49 C.F.R. $ 195.452 and\nproposed assessing a civil penalty of $55,000 for the alleged violations.\nRespondent responded to the Notice by letter dated February 9,2005 (Response). Respondent\ndid not contest the allegations of violation, but offered an explanation and requested that the\nproposed civil penalty be reduced. Respondent did not request a heaing, and therefore has\nwaived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the violations alleged in the Notice. Accordingly, I\nfind that Respondent violated the following sections of 49 C.F.R. Part 195, as more fully\ndescribed in the Notice:\n49 C.F.R. $ 195.452(bX1) - failing to develop a written integrity management program to\naddress the risks on each segment of Category 2 pipehne not later than February 18,\n2003. Respondent's initial integrity management program was dated May 7 ,2004'\n49 C.F.R. $ 195.452(b)(2) - failing to identify each Category 2 pipeline or pipeline\nsegment not later than lr]o.rember 18, 2002. Respondent's initial segment identifieation\nwas included in its integrity management program dated May 7,2004.\n\n\n\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. 5 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 total civil penalty of $55,000 for the violations.\n49 U.S.C. 5 60122 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation,\ndegree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability\nto pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on\nRespondent's ability to continue in business, and such other matters as justice may require.\nItem 1 proposed a civil penalty of $50,000 for failing to timely develop a written integrity\nmanagement program for Category 2 pipelines. Failing to develop an integrity management\nprogram for each Category 2 pipeline segment delayed the comprehensive analysis and\ndetermination of integrity for each segment that, in the event of a leak or failure, could affect a\nhigh consequence area. In its Response, Respondent explained that it had misinterpreted the\nregulatory requirement applicable to operators with less than 500 miles of pipeline. Respondent\nbrought its program into compliance upon leaming of this effor.\nAlthough Respondent may not have intentionally committed this vioiation, Respondent is\naccountable for its conduct that does not comply with federal pipeline safety standards. OPS has\nissued guidance beyond the text of the regulation to assist operators in determining the\napplicability of this rule. This guidance is available to all operators on OPS's website\n(http://ops.dot.gov) and by contacting OPS directly. Accordingly, I find the misinterpretation\ndoes not justify reducing the civil penalty.\nItem 2 proposed a civil penalty of $5,000 for falling to timely identify each pipeline or pipeline\nsegment in Category 2. In its Response, Respondent explained that it has a good history of\ncompliance as demonstrated through many OPS inspections. Respondent also explained that it\nhas contracted with a consultant to assure future compliance with the pipeline safety regulations.\nRespondent's good compliance history and subsequent corrective action are recognized.\nHowever, the identification of pipeline segments that could affect a high consequence area is a\nfundamental element of Respondent's integrity management program and failure to identify\nthose pipeline segments necessarily hinders compliance with the remaining integrity\nmanagement requirements designed to protect high consequence areas. Accordingly, I do not\nfind justification for reducing this civil penalty.\nHaving reviewed the record and considered the assessment criteria, I assess Respondent a tota!\ncivil penalty of $55,000. Respondent has the ability to pay this penalty without adversely\naffecting its ability to continue in business.\n\n\n\n3\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F,R. $ 89.21(b)(3)) require this payment be made by wire transfer through the Federal\nReserve Communications System (Fedwire) to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions conceming wire transfers should be\ndirected to: Financial Operations Division (AMZ-120), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 25082, Oklahoma City, Oklahoma 73125; @Ofl 95a-\n8893.\nFailure to pay the $55,000 civil penalty will result in accrual of interest at the current annual rate\ninaccordancewith3l u.s.c. s3717,31 c.F.R. $ 901.9 and49 C.F.R. $ 89.23. Pursuantto\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a United\nStates District Court.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be received within 20 days of Respondent's receipt of this\nFinal Order and must contain a brief statement of the issue(s). The filing of the petition\nautomatically stays the payment of any civil penalty assessed. However if Respondent submits\npayment for the civil penalty, the Final Order becomes the final administrative action and the\nright to petition for reconsideration is waived. The terms and conditions of this Final Order are\neffective on receipt.\nSFP - 1 Z()O:\nDate Issued\nAdministrator\nfor Pipeline Safety","truncated":false,"body_characters":8226}