{"operation":"document","citation":"CPF 420111006","title":"WEST TEXAS GAS INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2011-05-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 190.213.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420111006.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420111006.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420111006","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420111006","body":"Notice of Probable Violation involving WEST TEXAS GAS INC. PHMSA's enforcement data identifies the cited regulation as 190.213. The case was opened on 2011-05-24 and is reported as closed as of 2011-11-22. Proposed civil penalty: $108,700. Assessed civil penalty: $108,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420111006_Final Order_11222011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420111006/420111006_Final%20Order_11222011.pdf\n\n420111006_Final Order_11222011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420111006/420111006_Final%20Order_11222011_text.pdf\n\n420111006_NOPV PCP_05242011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420111006/420111006_NOPV%20PCP_05242011.pdf\n\n420111006_NOPV PCP_05242011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420111006/420111006_NOPV%20PCP_05242011_text.pdf\n\n420111006_Final Order_11222011_text.pdf\n\nNOV 22 2011\nMr. J. L. Davis\nPresident and CEO\nWest Texas Gas, Inc.\n211 North Colorado Street\nMidland, TX 79701\nRe: CPF No. 4-2011-1006\nDear Mr. Davis:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a civil penalty of $108,700. This letter acknowledges receipt of payment\nof the full penalty amount, by wire transfer, dated June 13, 2011. This enforcement action is\nnow closed. Service of the Final Order by certified mail is deemed effective upon the date of\nmailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, Pipeline Safety\nMr. Rod M. Seeley, Director, Southwest Region, PHMSA\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [71791000164202897532]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nWest Texas Gas, Inc., ) CPF No. 4-2011-1006\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn September 13, 2006, pursuant to 49 U.S.C. § 60118(b), the Associate Administrator, Office\nof Pipeline Safety (OPS), Pipeline and Hazardous Materials Safety Administration (PHMSA),\nissued a Final Order to West Texas Gas, Inc. (WTG), finding that WTG committed violations of\nthe pipeline safety regulations, including 49 C.F.R. §§ 192.553(b), 192.555(b)(1), and\n192.603(b), for failing to follow uprating requirements to increase the Maximum Allowable\nOperating Pressure (MAOP) of WTG’s Dalhart District pipeline system, an interstate natural gas\npipeline in Dalhart, Texas (Final Order).\n1 WTG operates natural gas distribution systems,\nnatural gas transmission lines, oil & gas production, gas gathering and processing, and refined\nproducts distribution facilities in Texas and Oklahoma.2\nPHMSA assessed a civil penalty of $60,000 in the Final Order and directed WTG to take specific\nactions to comply with the cited regulations. Specifically, the Final Order required WTG to\ndetermine the MAOP of the Dalhart District pipeline system in accordance with\n49 C.F.R. § 192.619 and to submit the results and supporting documentation to the Director,\nSouthwest Region, OPS (Director). WTG was also required to reduce the operating pressure of\nthe line, if necessary, to ensure that the system operated within the MAOP established in\naccordance with 49 C.F.R. § 192.619 (Compliance Item #3).\n3\nOn June 22, 2010, OPS conducted a follow-up inspection to determine compliance with the Final\nOrder. As a result of the inspection, the Director issued to Respondent, by letter dated\nMay 24, 2011, a Notice of Probable Violation and Proposed Civil Penalty (Notice) alleging non-\ncompliance with Item #3 of the Compliance Order issued in CPF No. 4-2004-1007. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that WTG had violated the\nFinal Order and assessing a civil penalty of $108,700 pursuant to 49 U.S.C. § 60122.4\n1 See, In the Matter of West Texas Gas, Inc., CPF No. 4-2004-1007 (September 13, 2006).\n2 See http://www.westtexasgas.com/profile_history.htm (last accessed October 31, 2011).\n3 Final Order, at 8.\n\n\n\n2\nWTG responded to the Notice by letter dated June 13, 2011 (Response). WTG did not contest\nthe probable violation and paid the proposed civil penalty of $108,700, as provided in 49 C.F.R.\n§ 190.227. Payment of the penalty serves to close the case with prejudice to Respondent.\nFINDING OF VIOLATION\nIn its Response, WTG did not contest the allegation in the Notice that it violated Compliance\nItem 3 of the Final Order, which required Respondent to:\nDetermine the MAOP of the Dalhart District pipeline system in\naccordance with 49 C.F.R. § 192.619 and submit the results and\nsupporting documentation to the Director, Southwest Region. If necessary,\nreduce operating pressure of the pipeline system to ensure that the pipeline\nsystem is operated within MAOP in accordance with 49 C.F.R. § 192.619.\nComplete this item within 30 days of receipt of this Order.\nThe Dalhart 22\" mainline system had a documented MAOP of 150 psig that WTG established by\npressure testing in accordance with §192.619(a)(2)(ii). WTG was required by Compliance Item\n#3 to maintain the pressure on the pipeline at or below 150 psig until WTG could establish or\nconfirm a higher MAOP in accordance with applicable uprating regulations.\nOn May 1, 2007, PHMSA received a letter from WTG addressing the uprating of a portion of the\nDalhart line and clarifying that the 20-mile Northern Segment of the Dalhart 22\" mainline\n(Northern Segment), which was not included in this uprating process, would continue to operate\nat the lower pressure of 150 psig.5\nOn July 2, 2008, PHMSA received another letter from WTG stating that the 84 miles of the 22\"\nmainline system was now configured in three segments and further confirming that the Northern\nSegment would remain in service at an MAOP of 150 psig. 6\nAs mentioned above, in June 2010, OPS conducted a follow-up inspection to review pressure\nrecords dated between September 13, 2006 (date of the Final Order) and June 2010, for the\nBrewster and the Valley Farmer's Check Station. OPS discovered that WTG had exceeded the\n150 psig MAOP for the Northern Segment for 159 days between October 13, 2006, and\nJune 22, 2010, in direct violation of the Final Order. During the inspection, WTG personnel\nstated that the pressure had been increased on this portion of the line by manually adjusting\nregulator set-points to increase line flow during periods of high demand.7\n4 49 U.S.C. § 60122 authorizes PHMSA to issue a civil penalty for a violation of the statute, a regulation, or an\norder.\n5 OPS Pipeline Safety Violation Report (May 24, 2011), Exhibit B.\n6 Violation Report, Exhibit C.\n7 Violation Report, at 3.\n\n\n\n3\nThe Final Order required WTG to maintain a pressure of 150 psig for the Northern Segment until\nit could establish a higher MAOP pursuant to the uprating regulations. By operating this section\nof the line above the MAOP of 150 psig, WTG violated the Final Order.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nCompliance Item 3: The Notice proposed a civil penalty of $108,700 for failing to comply with\nthe Final Order issued on September 13, 2006. WTG did not contest the amount of the civil\npenalty and paid the full amount on June 13, 2011.\nThe proposed civil penalty of $108,700 is based on the civil penalty assessment factors listed in\n49 C.F.R. § 190.225, including but not limited to, gravity, circumstances, culpability, duration of\nthe violation, and prior compliance history. WTG’s failure to comply with the Final Order posed\na significant threat to pipeline integrity by raising the operating pressure of the line above the\nrequired MAOP. In terms of culpability, the evidence in the record provides no plausible\nexplanation as to why WTG disregarded the requirements of the Final Order. For this reason, I\nfind Respondent fully culpable for its repeat violations, which extended over a period of 159\ndays. Finally, PHMSA considered WTG’s prior enforcement history in calculating the proposed\ncivil penalty. Having reviewed the penalty factors and the facts of this case, I find that the\nproposed civil penalty of $108,700 is justified. Accordingly, I assess Respondent a civil penalty\nof $108,700, which has already been remitted.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":9671}