# BP PIPELINE (NORTH AMERICA) INC. — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

420135002_Closure_07182013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Closure_07182013.pdf

420135002_Closure_07182013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Closure_07182013_text.pdf

420135002_Final Order_04222013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Final%20Order_04222013.pdf

420135002_Final Order_04222013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Final%20Order_04222013_text.pdf

420135002_NOPV PCO_01112013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_NOPV%20PCO_01112013.pdf

420135002_NOPV PCO_01112013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_NOPV%20PCO_01112013_text.pdf

420135002_Operator Response to Notice_02192013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135002/420135002_Operator%20Response%20to%20Notice_02192013.pdf

420135002_Final Order_04222013_text.pdf

April 22, 2013
Mr. Steve Pankhurst
President
BP Pipeline (North America) Inc.
150 W. Warrenville Rd.
Naperville, IL 60563
Re: CPF No. 4-2013-5002
Dear Mr. Pankhurst:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and specifies actions that need to be taken by BP Pipeline (North America) Inc. to
comply with the pipeline safety regulations. When the terms of the compliance order have been
completed, as determined by the Director, Southwest Region, this enforcement action will be
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. R.M. Seeley, Director, Southwest Region, OPS
Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, 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 )
)
BP Pipeline (North America) Inc., ) CPF No. 4-2013-5002
)
Respondent. )
____________________________________)
FINAL ORDER
From August 6-10, 2012, 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 the offshore liquid transmission facilities and
records of BP Pipeline (North America) Inc. (BP or Respondent) in Houma, Louisiana. BP
Pipelines transports over 450 million barrel miles of oil, refined products, natural gas liquids,
carbon dioxide and chemicals daily throughout the United States. BP is the largest producer of
oil and gas and the largest leaseholder in the deepwater Gulf of Mexico. The company produces
over 200,000 barrels per day (32,000 m3/d) of oil equivalent in the region. It operates four out
of the seven largest drilling platforms in the region1
As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated January 11, 2013, a Notice of Probable Violation and Proposed
Compliance Order (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 BP had violated
49 C.F.R. § 195.9 and proposed ordering Respondent to take certain measures to correct the
alleged violation. The warning item required no further action, but warned the operator to
correct the probable violation or face possible enforcement action.
BP responded to the Notice by letter dated February 19, 2013 (Response). The company did not
contest the allegation of violation and stated the company would comply with the proposed
compliance order. Respondent did not request a hearing and therefore has waived its right to
one.
FINDING OF VIOLATION
In its Response, BP did not contest the allegation in the Notice that it violated
1 http://bppipelines.com/ (last visited April 12, 2013).



2
49 C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.9, which states:
§ 195.9 Outer continental shelf pipelines.
Operators of transportation pipelines on the Outer Continental Shelf
must identify on all their respective pipelines the specific points at which
operating responsibility transfers to a producing operator. For those
instances in which the transfer points are not identifiable by a durable
marking, each operator will have until September 15, 1998 to identify the
transfer points. If it is not practicable to durably mark a transfer point and
the transfer point is located above water, the operator must depict the
transfer point on a schematic maintained near the transfer point. If a
transfer point is located subsea, the operator must identify the transfer
point on a schematic which must be maintained at the nearest upstream
facility and provided to PHMSA upon request. For those cases in which
adjoining operators have not agreed on a transfer point by September 15,
1998 the Regional Director and the MMS Regional Supervisor will make
a joint determination of the transfer point.
The Notice alleged that Respondent violated 49 C.F.R. § 195.9 by failing to identify on all its
respective pipelines the specific points at which operating responsibility transfers to a producing
operator. PHMSA audited the schematics for five offshore facilities and found that four of the
drawings had inconsistencies. Specifically, BP’s schematics had demarcations for transfer points
but the drawings were not consistent throughout and had not been clearly marked to identify
where piping had changed from production to transportation for certain offshore platforms/spars
facilities.
2 The regulation requires all transportation operators to identify on all of their
respective pipelines the specific points at which operating responsibility transfers to a producing
operator.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.9 by failing to identify the
demarcation point between production and transportation pipeline facilities on the schematics for
four offshore platforms/spars facilities.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
2 A review of the record revealed two examples. First, the schematics for Atlantis identified MMS as the
demarcation for production and DOT as the demarcation for transportation, rather than a description of the
producing operator and the transporting operator. Second, on the corner of the schematics for Thunderhorse and
Holstein, there was no indication of the transporting operator and producing operator for these subsea facilities.
Violation Report, Exhibit A.



3
COMPLIANCE ORDER
The Notice proposed a Compliance Order with respect to Item 1 in the Notice for violations of
49 C.F.R. § 195.9, respectively. Under 49 U.S.C. § 60118(a), each person who engages in the
transportation of hazardous liquids or who owns or operates a pipeline facility is required to
comply with the applicable safety standards established under chapter 601. Pursuant to the
authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the
following actions to ensure compliance with the pipeline safety regulations applicable to its
operations:
1. 2. 3. With respect to the violation of § 195.9 (Item 1), Respondent must amend its
schematics to clearly identify the points at which operating responsibility transfers
to a producing operator. The identification of the transfer points must be
consistent on the schematics for all respective pipelines.
Complete Item 1 within 30 days of receipt of this Order and provide written
documentation to the Director demonstrating that Item 1 has been completed
within 45 days of receipt of this Order.
It is requested (not mandated) that BP maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit
the total to the Director. It is requested that these costs be reported in two
categories: (1) total cost associated with preparation or revision of plans,
procedures, studies, and analyses; and (2) total cost associated with repairs,
replacements, additions, and other changes to physical pipeline facilities.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
WARNING ITEM
With respect to Item 2, the Notice alleged probable violation of Part 195 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. § 195.420(c) (Item 2) ─ Respondent’s alleged failure to protect its
valves on the Ship Shoal 332B Platform from unauthorized operation and
vandalism.



4
Accordingly, having considered such information, I find, pursuant to 49 C.F.R. § 190.205, that
probable violation of 49 C.F.R. § 195.420(c) (Notice Item 2) has occurred and Respondent is
hereby advised to correct such conditions. In the event that 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

420135002_Closure_07182013_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
July 18, 2013
Mr. Steve Pankhurst
President
BP Pipeline (North America) Inc.
150 W. Warrenville Road
Naperville, IL 60563
CPF 4-2013-5002
Dear Mr. Pankhurst:
On April 22, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued BP Pipeline (North America) Inc. a Final Order in the above-referenced case. This Order
included a Compliance Order. Based on our review of the documentation you provided, it has
been determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
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