{"operation":"document","citation":"CPF 420131011","title":"GULF SOUTH PIPELINE COMPANY, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-05-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.933(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420131011.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420131011.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420131011","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420131011","body":"Notice of Probable Violation involving GULF SOUTH PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulation as 192.933(d). The case was opened on 2013-05-20 and is reported as closed as of 2013-07-26. Proposed civil penalty: $16,200. Assessed civil penalty: $16,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420131011_Final Order_07262013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131011/420131011_Final%20Order_07262013.pdf\n\n420131011_Final Order_07262013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131011/420131011_Final%20Order_07262013_text.pdf\n\n420131011_NOPV  PCP_05202013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131011/420131011_NOPV%20%20PCP_05202013.pdf\n\n420131011_NOPV  PCP_05202013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131011/420131011_NOPV%20%20PCP_05202013_text.pdf\n\n420131011_Operator_Response_Notice_06102013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420131011/420131011_Operator_Response_Notice_06102013.pdf\n\n420131011_Final Order_07262013_text.pdf\n\nJULY 26, 2013\nMr. Stanley C. Horton\nPresident, Chief Executive Officer and Director\nGulf South Pipeline Company, LP\n9 Greenway Plaza, Suite 2800\nHouston TX 77046\nRe: CPF No. 4-2013-1011\nDear Mr. Horton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a civil penalty of $16,200. This is to acknowledge receipt of payment of\nthe full penalty amount, by wire transfer, dated June 7, 2013. This enforcement action is now\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor 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. R.M. Seeley, Regional Director for Southwest Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nGulf South Pipeline Company, LP ) CPF No. 4-2013-1011\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nDuring the dates of October 15-27, 2012, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an inspection of the Integrity Management Program for Gulf South Pipeline\nCompany, LP (Gulf South or Respondent) in Owensboro, Kentucky. Gulf South is an interstate\nnatural gas transmission company which owns and operates an integrated natural gas pipeline\nand storage system located along the Gulf Coast in the states of Texas, Louisiana, Mississippi,\nAlabama and Florida.1 As of December 31, 2012, its pipeline transmission system had a peak\nday delivery capacity of approximately 6.8 billion cubic feet (Bcf) per day and consisted of\napproximately 7,240 miles of pipeline and two natural gas storage facilities.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated May 20, 2013, a Notice of Probable Violation and Proposed Civil\nPenalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Gulf\nSouth had violated 49 C.F.R. § 192.933(d) and proposed assessing a civil penalty of $16,200 for\nthe alleged violation.\nGulf South responded to the Notice by letter dated June 10, 2013 (Response). The company did\nnot contest the allegations of violation and paid the proposed civil penalty of $16,200, as\nprovided in 49 C.F.R. § 190.227. Payment of the penalty serves to close the case with prejudice\nto Respondent.\nFINDING OF VIOLATION\nIn its Response, Gulf South did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 192.933, as follows:\n1 See http://www.gulfsouthpl.com/AboutUsGS.aspx, (last accessed on July 18, 2013).\n2 Id.\n\n\n\n2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.933(d), which states in\nrelevant part:\n§ 192.933(d) What actions must be taken to address integrity issues.\n(d) Special requirements for scheduling remediation –\n(1) Immediate repair conditions. An operator’s evaluation and\nremediation schedule must follow ASME/ANSI B31.8S, section 7 in\nproviding for immediate repair conditions. To maintain safety, an\noperator must temporarily reduce operating pressure in accordance with\nparagraph (a) of this section or shut down the pipeline until the operator\ncompletes the repair of these conditions. An operator must treat the\nfollowing conditions as immediate repair conditions:\n(i) A calculation of the remaining strength of the pipe shows a\npredicted failure pressure less than or equal to 1.1 times the maximum\nallowable operating pressure at the location of the anomaly. Suitable\nremaining strength calculation methods include, ASME/ANSI B31G;\nRSTRENG; or an alternative equivalent method of remaining strength\ncalculation. These documents are incorporated by reference and available\nat the addresses listed in appendix A to part 192.\n(ii) A dent that has any indication of metal loss, cracking or a stress\nriser.\n(iii) An indication or anomaly that in the judgment of the person\ndesignated by the operator to evaluate the assessment results requires\nimmediate action.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.933(d) by failing to immediately\nrepair two anomalies having an indication of metal loss. Specifically, the Notice alleges that\nGulf South conducted two In Line Inspections assessments of its pipeline, located at HCA 600\nand HCA 1082. Reports from the assessments were provided to Gulf South on July 8, 2009, and\nJune 27, 2011, respectively. Each report identified an anomaly described as a “deformation… w/\nPossible Metal Loss,” which meets the definition of an immediate repair condition per\n§192.933(d)(1)(ii). Gulf South’s integrity manager improperly reclassified both anomalies as\n“not immediate repair conditions.” Ultimately, the repairs for the HCA 600 anomaly were\ncompleted March 3, 2010, and the HCA 1082 anomaly was repaired on July 21, 2011. Again,\npursuant to §192.933(d), the repairs should have been made immediately after they were\nidentified.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.933(d) by failing to immediately\nrepair two anomalies identified to have metal loss.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n\n\n\n3\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 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; and any effect\nthat the penalty may have on its ability to continue doing business; and the good faith of\nRespondent in attempting to comply with the pipeline safety regulations. In addition, I may\nconsider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a total\ncivil penalty of $16,200 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $16,200 for Respondent’s violation of 49 C.F.R.\n§ 192.933(d), for failing to immediately repair two anomalies with an indication of metal loss.\nGulf South paid the proposed penalty, which serves to close this Item with prejudice and\nauthorizes PHMSA to make a finding of violation. Accordingly, I assess Respondent a civil\npenalty of $16,200 for violation of 49 C.F.R. § 192.933(d).\nIn summary, having reviewed the record and considered the assessment criteria for the Item cited\nabove, I assess Respondent a total civil penalty of $16,200, which has been paid in full.\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":8723}