{"operation":"document","citation":"CPF 420135002","title":"BP PIPELINE (NORTH AMERICA) INC. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-01-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.420(c), 195.9.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420135002","body":"Notice of Probable Violation involving BP PIPELINE (NORTH AMERICA) INC.. PHMSA's enforcement data identifies the cited regulations as 195.420(c),  195.9. The case was opened on 2013-01-11 and is reported as closed as of 2013-07-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420135002_Closure_07182013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Closure_07182013.pdf\n\n420135002_Closure_07182013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Closure_07182013_text.pdf\n\n420135002_Final Order_04222013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Final%20Order_04222013.pdf\n\n420135002_Final Order_04222013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Final%20Order_04222013_text.pdf\n\n420135002_NOPV PCO_01112013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_NOPV%20PCO_01112013.pdf\n\n420135002_NOPV PCO_01112013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_NOPV%20PCO_01112013_text.pdf\n\n420135002_Operator Response to Notice_02192013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Operator%20Response%20to%20Notice_02192013.pdf\n\n420135002_Final Order_04222013_text.pdf\n\nApril 22, 2013\nMr. Steve Pankhurst\nPresident\nBP Pipeline (North America) Inc.\n150 W. Warrenville Rd.\nNaperville, IL 60563\nRe: CPF No. 4-2013-5002\nDear Mr. Pankhurst:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and specifies actions that need to be taken by BP Pipeline (North America) Inc. to\ncomply with the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\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, Director, 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)\nBP Pipeline (North America) Inc., ) CPF No. 4-2013-5002\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom August 6-10, 2012, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the offshore liquid transmission facilities and\nrecords of BP Pipeline (North America) Inc. (BP or Respondent) in Houma, Louisiana. BP\nPipelines transports over 450 million barrel miles of oil, refined products, natural gas liquids,\ncarbon dioxide and chemicals daily throughout the United States. BP is the largest producer of\noil and gas and the largest leaseholder in the deepwater Gulf of Mexico. The company produces\nover 200,000 barrels per day (32,000 m3/d) of oil equivalent in the region. It operates four out\nof the seven largest drilling platforms in the region1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated January 11, 2013, a Notice of Probable Violation and Proposed\nCompliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that BP had violated\n49 C.F.R. § 195.9 and proposed ordering Respondent to take certain measures to correct the\nalleged violation. The warning item required no further action, but warned the operator to\ncorrect the probable violation or face possible enforcement action.\nBP responded to the Notice by letter dated February 19, 2013 (Response). The company did not\ncontest the allegation of violation and stated the company would comply with the proposed\ncompliance order. Respondent did not request a hearing and therefore has waived its right to\none.\nFINDING OF VIOLATION\nIn its Response, BP did not contest the allegation in the Notice that it violated\n1 http://bppipelines.com/ (last visited April 12, 2013).\n\n\n\n2\n49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.9, which states:\n§ 195.9 Outer continental shelf pipelines.\nOperators of transportation pipelines on the Outer Continental Shelf\nmust identify on all their respective pipelines the specific points at which\noperating responsibility transfers to a producing operator. For those\ninstances in which the transfer points are not identifiable by a durable\nmarking, each operator will have until September 15, 1998 to identify the\ntransfer points. If it is not practicable to durably mark a transfer point and\nthe transfer point is located above water, the operator must depict the\ntransfer point on a schematic maintained near the transfer point. If a\ntransfer point is located subsea, the operator must identify the transfer\npoint on a schematic which must be maintained at the nearest upstream\nfacility and provided to PHMSA upon request. For those cases in which\nadjoining operators have not agreed on a transfer point by September 15,\n1998 the Regional Director and the MMS Regional Supervisor will make\na joint determination of the transfer point.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.9 by failing to identify on all its\nrespective pipelines the specific points at which operating responsibility transfers to a producing\noperator. PHMSA audited the schematics for five offshore facilities and found that four of the\ndrawings had inconsistencies. Specifically, BP’s schematics had demarcations for transfer points\nbut the drawings were not consistent throughout and had not been clearly marked to identify\nwhere piping had changed from production to transportation for certain offshore platforms/spars\nfacilities.\n2 The regulation requires all transportation operators to identify on all of their\nrespective pipelines the specific points at which operating responsibility transfers to a producing\noperator.\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. § 195.9 by failing to identify the\ndemarcation point between production and transportation pipeline facilities on the schematics for\nfour offshore platforms/spars facilities.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n2 A review of the record revealed two examples. First, the schematics for Atlantis identified MMS as the\ndemarcation for production and DOT as the demarcation for transportation, rather than a description of the\nproducing operator and the transporting operator. Second, on the corner of the schematics for Thunderhorse and\nHolstein, there was no indication of the transporting operator and producing operator for these subsea facilities.\nViolation Report, Exhibit A.\n\n\n\n3\nCOMPLIANCE ORDER\nThe Notice proposed a Compliance Order with respect to Item 1 in the Notice for violations of\n49 C.F.R. § 195.9, respectively. Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations:\n1. 2. 3. With respect to the violation of § 195.9 (Item 1), Respondent must amend its\nschematics to clearly identify the points at which operating responsibility transfers\nto a producing operator. The identification of the transfer points must be\nconsistent on the schematics for all respective pipelines.\nComplete Item 1 within 30 days of receipt of this Order and provide written\ndocumentation to the Director demonstrating that Item 1 has been completed\nwithin 45 days of receipt of this Order.\nIt is requested (not mandated) that BP maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit\nthe total to the Director. It is requested that these costs be reported in two\ncategories: (1) total cost associated with preparation or revision of plans,\nprocedures, studies, and analyses; and (2) total cost associated with repairs,\nreplacements, additions, and other changes to physical pipeline facilities.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nWARNING ITEM\nWith respect to Item 2, the Notice alleged probable violation of Part 195 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n49 C.F.R. § 195.420(c) (Item 2) ─ Respondent’s alleged failure to protect its\nvalves on the Ship Shoal 332B Platform from unauthorized operation and\nvandalism.\n\n\n\n4\nAccordingly, having considered such information, I find, pursuant to 49 C.F.R. § 190.205, that\nprobable violation of 49 C.F.R. § 195.420(c) (Notice Item 2) has occurred and Respondent is\nhereby advised to correct such conditions. In the event that OPS finds a violation of this\nprovision in a subsequent inspection, Respondent may be subject to future enforcement action.\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\n\n420135002_Closure_07182013_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 18, 2013\nMr. Steve Pankhurst\nPresident\nBP Pipeline (North America) Inc.\n150 W. Warrenville Road\nNaperville, IL 60563\nCPF 4-2013-5002\nDear Mr. Pankhurst:\nOn April 22, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued BP Pipeline (North America) Inc. a Final Order in the above-referenced case. This Order\nincluded a Compliance Order. Based on our review of the documentation you provided, it has\nbeen determined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":11278}