# TRANSWESTERN PIPELINE COMPANY LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 420131002
- **title:** TRANSWESTERN PIPELINE COMPANY LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2013-01-23
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.465(b), 192.605(a), 192.745(a).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420131002
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420131002
**body:**

Notice of Probable Violation involving TRANSWESTERN PIPELINE COMPANY LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(b),  192.605(a),  192.745(a). The case was opened on 2013-01-23 and is reported as closed as of 2013-08-22. Proposed civil penalty: $53,200. Assessed civil penalty: $53,200. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420131002_Final Order_08222013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131002/420131002_Final%20Order_08222013.pdf

420131002_Final Order_08222013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131002/420131002_Final%20Order_08222013_text.pdf

420131002_NOPV PCP_01232013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131002/420131002_NOPV%20PCP_01232013.pdf

420131002_NOPV PCP_01232013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131002/420131002_NOPV%20PCP_01232013_text.pdf

420131002_Operator Response_02262013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131002/420131002_Operator%20Response_02262013.pdf

420131002_Final Order_08222013_text.pdf

AUGUST 22, 2013
Mr. Ryan Coffey
Executive VP Operations
Transwestern Pipeline Company, LLC
800 E. Sonterra Blvd, Suite 400
San Antonio, TX 78258
Mr. Kelcy L. Warren
Chairman and Chief Executive Officer
Energy Transfer Partners, L.P.
3738 Oak Lawn Avenue
Dallas, TX 75219
Re: CPF No. 4-2013-1002
Gentlemen:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and assesses a civil penalty of $53,200. This is to acknowledge receipt of payment of
the full penalty amount, by wire transfer, dated February 27, 2013. This case is now closed.
Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as
otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Nathan Hlavaty, Director, Interstate Regulatory Compliance, Energy Transfer –
Transwestern Pipeline Company, LLC, 711 Louisiana Street, Suite 900, Houston, TX
Mr. R. M. Seeley, Director, Southwest Region, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Transwestern Pipeline Company, LLC, ) a subsidiary of Energy Transfer )
Partners, L.P. )
)
)
)
Respondent. )
____________________________________)
CPF No. 4-2013-1002
FINAL ORDER
Between May 25 and December 2, 2011, pursuant to 49 U.S.C. § 60117, a representative of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), conducted an on-site pipeline safety inspection of multiple units of Transwestern Pipeline
Company, LLC’s (Transwestern or Respondent) facilities in Arizona, New Mexico, and Texas.
Transwestern is a subsidiary of Energy Transfer Partners, L.P.1 Transwestern operates
approximately 2,700 miles of natural gas transmission pipelines from the San Juan, Anadarko,
and Permian Basins to markets in the Midwest, Texas, Arizona, New Mexico, Nevada, and
California.
2
As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated January 23, 2013, a Notice of Probable Violation and Proposed Civil
Penalty (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance
with 49 C.F.R. § 190.207, the Notice proposed finding that Transwestern violated 49 C.F.R.
§§ 192.745(a) and 192.465(b) and proposed assessing a civil penalty of $53,200 for the alleged
violations. The warning item required no further action, but warned the operator to correct the
probable violation.
Transwestern responded to the Notice by letter dated February 26, 2013 (Response). The
company acknowledged the violations, provided information concerning the corrective actions it
1 On December 1, 2006, Transwestern Pipeline Company, LLC became a new operating subsidiary of Energy
Transfer Partners, L.P. See http://www.energytransfer.com/company_history.aspx.
2 See http://www.energytransfer.com/ops_interstate_tw.aspx (last assessed July 6, 2013).



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had taken and paid the proposed civil penalty of $53,200, as provided in 49 C.F.R. § 190.227.3
Payment of the penalty serves to close the case with prejudice to Respondent.
FINDINGS OF VIOLATION
In its response, Transwestern did not contest the allegations in the Notice that it violated
49 C.F.R. Part 192, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a), which states:
§ 192.745 Valve maintenance: Transmission lines.
(a) Each transmission line valve that might be required during any
emergency must be inspected and partially operated at intervals not
exceeding 15 months, but at least once each calendar year.
The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a) by failing to inspect nine
transmission line valves that might be required during any emergency at intervals not exceeding
15 months, but at least once each calendar year during the 2009-2010 period. Specifically, the
Notice alleged that Transwestern’s records demonstrated that the company had exceeded the
required interval for inspection by 45 days for one valve, 32 days for three valves and 27 days
for five valves, as more fully described in the Notice.4 Respondent acknowledged that it had not
inspected the specified valves within the required interval. Accordingly, based upon a review of
all of the evidence, I find that Respondent violated 49 C.F.R. § 192.745(a) by failing to inspect
nine transmission line valves that might be required during an emergency at intervals not
exceeding 15 months, but at least once each calendar year.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a), which states:
§ 192.745 Valve maintenance: Transmission lines.
(a) Each transmission line valve that might be required during any
emergency must be inspected and partially operated at intervals not
exceeding 15 months, but at least once each calendar year.
The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a) by failing to partially
operate three specified transmission line valves that might be required during any emergency at
intervals not exceeding 15 months, but at least once each calendar year. Specifically, the Notice
alleged that Transwestern did not partially operate valves #1101, #1108, and #1109, while
performing its annual inspections for three consecutive years, 2009, 2010, and 2011. 5 In its
Response, Transwestern acknowledged its non-compliance.6 Accordingly, based upon a review
3 Response at 1.
4 Violation Report at Exhibit A.
5 Violation Report at Exhibits B and C.
6 Response at 2.



3
of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.745(a) by failing to
inspect and partially operate three transmission line valves for three consecutive years, at
intervals not exceeding 15 months, but at least once each calendar year.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.465(b), which states, in
relevant part:
§ 192.465 External corrosion control: Monitoring.
(a) . . .
(b) Each cathodic protection rectifier or other impressed current
power source must be inspected six times each calendar year, but with
intervals not exceeding 2½ months, to insure that it is operating.
The Notice alleged that Respondent violated 49 C.F.R. § 192.465(b) by failing to inspect three
specified rectifier facilities, six times each calendar year, but with intervals not exceeding 2½
months, to insure that they were operating during 2011. Specifically, the Notice alleged that
Transwestern failed to inspect three rectifier facilities within the required interval and exceeded
the required interval by 66 days, as fully described in the Notice.7 In its response, Transwestern
acknowledged its non-compliance. Accordingly, based upon a review of all of the evidence, I
find that Respondent violated 49 C.F.R. § 192.465(b) by failing to inspect three rectifier facilities
six times each calendar year, with intervals not exceeding 2½ months.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
Under 49 U.S.C. § 60122, Respondent is subject to an administrative 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. In determining the amount of a civil penalty under
49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s
ability to pay the penalty and any effect that the penalty may have on its ability to continue doing
business; and the good faith of Respondent in attempting to comply with the pipeline safety
regulations. In addition, I may consider the economic benefit gained from the violation without
any reduction because of subsequent damages, and such other matters as justice may require.
The Notice proposed a total civil penalty of $53,200 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $15,200 for Respondent’s violation of
49 C.F.R. § 192.745(a), for failing to inspect nine transmission valves that might be required
during an emergency at intervals not exceeding 15 months and for exceeding the required
intervals between 27 and 45 days. In its Response, Transwestern acknowledged its failure to
inspect the nine transmission valves and stated that the company had revised its procedures to
ASSESSMENT OF PENALTY
7 Violation Report at Exhibit D.



4
prevent future occurrences. Respondent was cognizant of the requirement for the inspection and
testing of valves but failed to do so. Performing annual valve inspections is a fundamental
requirement for safely operating a pipeline. The purpose of performing periodic maintenance
inspections is to ensure that all valves will be operational if the need to close them arises, such as
during a spill, failure, or emergency. Transwestern paid the proposed penalty for the alleged
violation, which serves to close the case with prejudice.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $15,200 for violation of 49 C.F.R. § 192.745(a), which has already
been paid by Respondent.
Item 2: The Notice proposed a civil penalty of $27,700 for Respondent’s violation of
49 C.F.R. § 192.745(a), for failing to inspect and partially operate three transmission valves that
might be used in an emergency, for three consecutive years, exceeding the requirement to inspect
at intervals not exceeding 15 months, but at least once each calendar year.
In its response, Transwestern stated that the company is implementing smart forms that require
personnel to populate required fields on the form during annual inspections, and prevent the
closure or acceptance of a record as completed without populating the required fields to fully
document valve inspections.
While maintaining complete and accurate records is very important to an operator’s ability to
make operating decisions, the violation in this case went beyond a paperwork deficiency.
Performing annual valve inspections is a fundamental requirement for safely operating a
pipeline. The purpose of performing periodic maintenance inspections is to ensure that all valves
will be operational if the need to close them arises, such as during a spill or failure. Failing to
inspect transmission line valves that might be required during an emergency at the required
intervals increases the risk that a valve may not function to contain or mitigate a pipeline
emergency. The company is fully culpable and acknowledged that it was unable to demonstrate
compliance. Transwestern paid the proposed penalty for the alleged violation, which serves to
close the case with prejudice.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $27,700 for violation of 49 C.F.R. § 192.745(a), which has already
been paid by Respondent.
Item 3: The Notice proposed a civil penalty of $10,300 for Respondent’s violation of
49 C.F.R. § 192.465(b), for failing to inspect three cathodic protection rectifiers six times each
calendar year, with intervals not exceeding 2½ months, to insure that they were operating.
In its Response, Transwestern stated that the valves had been examined prior to the OPS
inspection, but acknowledged that the company was unable to demonstrate compliance and that
its records provided to PHMSA did not show that it had conducted cathodic protection testing on
the three rectifier facilities. The company also reiterated its plans to implement smart forms to
prevent future reoccurrences.



5
The company acknowledged that it was unable to demonstrate compliance. Transwestern paid
the proposed penalty for the alleged violation, which serves to close the case with prejudice.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $10,300 for violation of 49 C.F.R. § 192.465(b), which has already
been paid by Respondent.
WARNING ITEM
With respect to Item 4, the Notice alleged a probable violation of Part 192 but did not propose a
civil penalty or compliance order for this item. Therefore, this is considered to be a warning
item. The warning was for:
49 C.F.R. § 192.605(a) (Item 4) ─ Respondent’s alleged failure to follow its own
manual of written procedures for conducting operations and maintenance (O&M)
activities. Specifically, the Notice alleged that Transwestern failed to follow its
Operating and Maintenance Procedures, No. D.35-Buried Pipe Inspection,
Section 7.1 Data Collection, which required the technicians to document each
inspection in the Pipe Inspection Database.8 PHMSA’s inspection revealed
inconsistent and incomplete pipe inspection reports.9 Transwestern also failed to
follow its Valve Inspection and Maintenance Standard Operating Procedures,
Section 8.0 Documentation Requirements, which required personnel to record on
the inspection form the valve position “As Found” and “As Left”.
10 Respondent’s
inspection forms had twenty (20) separate instances where the company had not
followed its own procedures, as more fully described in the Notice.11
Transwestern presented information in its Response showing that it has taken certain actions to
address the cited item. If OPS finds a violation of this provision in a subsequent inspection,
Respondent may be subject to future enforcement action.
The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
8 Violation Report at Exhibit E.
9 Violation Report at Exhibit F.
10 Violation Report at Exhibit G.
11 Violation Report at Exhibit H.
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