BAYOU CITY PIPELINE INC — Notice of Probable Violation

case documentOfficial PDFCPF_NO_4-2006-5004.pdf#

420065004_Final Order_06212006.pdf, page 1Official PDFo rt rd U.S. Deportment of Tronsporlotion Plpeline ond Hozordous moterlo|s Sofety Aclminislrollon ',100 Seventh Street, S.W. Washinglon, D.C. 20590 JUN 2 I m06 Mr. Richard Smiley Engineer Bois d'Arc Energy 600 Travis Sfite 6275 Houston, Texas77002 Re: CPFNo.4-2006-5004 DearMr. Smiley: Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in. the above-referenced case. It makes findings ofviolation and assesses a civil penalty of $20,000. I acknowledge receip of and accept your wire transfer for $20,000 as payment in full of the civil penalty assessed in the Final Order. The Final Order also acknowledges your completion of the proposed compliance order items to comply with the pipeline safety regulations. This case is now closed. Your receipt of the Final Order constitutes service of that document under 49 C.F.R. $ 190.5. Sincerely, S""" n"-- James Reynolds Pipeline Compliance Registry Office of Pipeline Safety Enclosure cc: R. M. Seeley Director, Southwest Region, PHP-400 CERTIF'IED MAIL - RETURN RECEIPT REOUESTED#

420065004_Final Order_06212006.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFF'ICE OF PIPELINE SAF'ETY wASrrrNcToN, D.c. 20590 In the Matter of Bois d'Arc Energy, Respondent CPF No.4-2006-5004 ) I'INAL ORDER on November 3,2005, pursuant to 49 u.s.c. $ 60117, representatives of the pipeline and Hazardous Materials Safety Administration (PHMSA), OfIice of Pipeline Safety conducted an on-site pipeline safety inspection of Respondent's facilities and records in Houston, Texas. Asa result of the inspection, the Director, Southwest Region, PHMSA, issued to Respondent, by letter dated February 7, 2006, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed compliance order (Notice). In accordance with 49 c.F.R. S 190-207,the Notice proposed finding that Respondent had committed violations of 49 c.F.R. part 195 and proposed assessing a civil penalty of $20,000 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violations. Respondent responded to the Notice on February 28,2006by hansferring.filnds in the amount of $20,000 as payment of the proposed civil penalty. FINDINGS OF VIOLATION In its Response, Respondent did not contest the alleged violations in the Notice. Accordingly, I find that Respondent violated the following sections of 49 C.F.R. Part 195, as more fully described in the Notice: 49 c.F.R. $ 195.452(b)(l) Q'{otice Item 1) - failing to establish a written integrity management program for the Bayou city Pipeline for the period of February 18, 2003 through October 7, 2005; 49 C.F'R' S 195.452 (Notice ltem 2) -- failing to identify all pipeline segments for the Bayou City Pipeline that could affect HCAs by November 18,2002; and#

420065004_Final Order_06212006.pdf, page 349 c.F.R. $$ 195.452(d)(l) (lrtrotice Item 3) - failing to complete 50 percent of the baseline assessment of line pipe by August 16,2005. These findings ofviolation will be considered prior offenses in any subsequenr enforcement action taken against Respondent. Having reviewed the record and considered the applicable penalty assessment criteria, I assess Respondent a civil penalty of$20,000, already paid by Respondent. COMPLIANCE ORDER The Notice proposed a Compliance Order with respect to Item 3 of the Notice. Under 49 U.S.C. $ 60118(a), each person who engages in the transportation ofhazardous liquids or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. The Director, central Region, PHMSA has indicated that Respondent has taken the following actions specified in the Proposed Compliance Order: In regard to Notice Item 3, Respondent completed at least 50 percent of the baseline assessment of the line pipe and sent documentation veriffing the assessment to the Director, Southwest Region. Accordingly, since compliance has been achieved with respect to this violation, the compliance terms are not included in this Order. The terms and conditions of this Final Order are effective on receipt. o JUN 2 1 m06 Date Issued 5-" Administrator Pipeline Safety#