{"operation":"document","citation":"CPF 420135018","title":"ENTERPRISE PRODUCTS OPERATING LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-09-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135018.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135018.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135018","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420135018","body":"Notice of Probable Violation involving ENTERPRISE PRODUCTS OPERATING LLC. PHMSA's enforcement data identifies the cited regulation as 195.402(a). The case was opened on 2013-09-20 and is reported as closed as of 2014-07-09. Proposed civil penalty: $100,000. Assessed civil penalty: $100,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420135018_Final Order_06252014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135018/420135018_Final%20Order_06252014.pdf\n\n420135018_Final Order_06252014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135018/420135018_Final%20Order_06252014_text.pdf\n\n420135018_NOPV PCP_09202013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135018/420135018_NOPV%20PCP_09202013.pdf\n\n420135018_NOPV PCP_09202013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135018/420135018_NOPV%20PCP_09202013_text.pdf\n\n420135018_Operator Response to Notice_12032013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135018/420135018_Operator%20Response%20to%20Notice_12032013.pdf\n\n420135018_Final Order_06252014_text.pdf\n\nJUNE 25, 2014\nMr. Michael A. Creel\nChief Executive Officer\nEnterprise Products Partners, LP\n1100 Louisiana Street\nHouston, TX 77002\nRe: CPF No. 4-2013-5018\nDear Mr. Creel:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nEnterprise Products Operating, LLC. It makes a finding of violation and assesses a civil penalty\nof $100,000. The penalty payment terms are set forth in the Final Order. This enforcement\naction closes automatically upon receipt of payment. Service of the Final Order by certified mail\nis deemed effective upon the date of mailing, 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. Rodrick M. Seeley, Director, Southwest Region, OPS\nMr. Terry Hurlburt, Enterprise, Group Sr. Vice President, Operations & Environmental,\nHealth, Safety & Training, 1100 Louisiana Street, Houston, Texas 77002\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)\nEnterprise Products Operating, LLC, ) CPF No. 4-2013-5018\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom December 28, 2011 – December 17, 2012, pursuant to 49 U.S.C. § 60117, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), conducted an investigation of an accident involving the pipeline system operated\nby Enterprise Products Operating, LLC (Enterprise or Respondent), in Loving County, Texas.\nEnterprise is a wholly-owned subsidiary of Enterprise Products Partners, LP, which operates\nroughly 50,000 miles of natural gas, natural gas liquid, crude oil, refined products and\npetrochemical pipelines throughout the United States.1\nThe investigation arose out of an accident that occurred when Enterprise personnel, attempting to\nrepair a failed weld, were injured in a flash fire. As a result of the investigation, the Director,\nSouthwest Region, OPS (Director), issued to Respondent, by letter dated September 20, 2013, a\nNotice of Probable Violation and Proposed Civil Penalty (Notice). In accordance with\n49 C.F.R. § 190.207, the Notice proposed finding that Enterprise had violated 49 C.F.R.\n§ 195.402 and proposed assessing a civil penalty of $100,000 for the alleged violation.\nOn October 21, 2013, Enterprise requested an extension of the response filing deadline. The\nDirector granted this request. Enterprise subsequently submitted a timely response to the Notice\nby letter dated December 3, 2013 (Response). The company did not contest the allegation of\nviolation but provided an explanation of its actions and requested that the proposed civil penalty\nbe reduced. Respondent did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:\n1 http://www.enterpriseproducts.com/corpProfile/businessProfile.shtm (last accessed May 6, 2014).\n\n\n\n2\n§ 195.402 Procedural manual for operations, maintenance, and\noperations.\n(a) General. Each operator shall prepare and follow for each\npipeline system a manual of written procedures for conducting normal\noperations and maintenance activities and handling abnormal operations\nand emergencies. This manual shall be reviewed at intervals not\nexceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at\nlocations where operations and maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to prepare and\nfollow for each pipeline system a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and emergencies. Specifically, the\nNotice alleged that Enterprise failed to establish a job plan and obtain a safe work permit, as\nrequired by its own written procedures,\n2 when repairing a failed weld. On December 28, 2011,\nEnterprise confirmed a complete weld seam failure on an 8-inch butane/propane pipeline. Two\nEnterprise personnel and four contractors began repairing the weld failure on the same day, but\nwithout first establishing a job plan. At approximately 5:00 p.m., a hydrocarbon mixture\nexceeding the Lower Flammability Limit concentrated in the trench where the workers were\nstationed, resulting in a flash fire. The flash fire burned three workers, one of whom required\ninpatient hospitalization.3\nRespondent did not contest this allegation of violation but requested that PHMSA reconsider the\ncompany’s culpability for the accident and reduce the proposed penalty. Since this argument\nrelates to the penalty amount, it will be addressed in the “Assessment of Penalty” section below.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\n49 C.F.R. § 195.402(a) by failing to prepare and follow for each pipeline system a manual of\nwritten procedures for conducting normal operations and maintenance activities and handling\nabnormal operations and emergencies.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n2 Pipeline Safety Violation Report (Violation Report), (September 20, 2013), (on file with PHMSA). Enterprise\nSafety Policies Manual, 6.2 Job Planning Process.\n3 Violation Report, Enterprise Incident Investigation Report, 1.\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$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.\nThe Notice proposed a total civil penalty of $100,000 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $100,000 for Respondent’s violation of\n49 C.F.R. § 195.402(a), for failing to prepare and follow for each pipeline system a manual of\nwritten procedures for conducting normal operations and maintenance activities and handling\nabnormal operations and emergencies. As noted above, Enterprise did not contest this allegation\nof violation but requested a penalty reduction.\nIn its December 3, 2013 letter, Enterprise argued that the Violation Report, in the “Culpability”\nsection, incorrectly stated that “[t]he operator failed to take appropriate action to comply with a\nrequirement that was clearly applicable.” Enterprise argues that its culpability for the accident is\ndiminished by the fact that it used its best efforts to promulgate and promote the procedures\nrequired by § 195.402(a), but that its personnel simply failed to follow through. Enterprise\nargues that it took “significant steps” through the implementation of policies, procedures, and\ntraining, to ensure that the company achieved compliance. In addition, Enterprise contends that\nfollowing the accident, it has conducted additional employee training and instituted safety action\nplans to improve its safety culture. Accordingly, Enterprise requests that PHMSA reconsider the\nproposed penalty.\nI have reviewed the case file and considered Respondent’s arguments for a penalty reduction, but\nreject the notion that an operator may separate its own conduct from that of its employees, and\nthereby diminish its culpability for an accident such as the one that occurred here. Enterprise\npersonnel were well aware that a job plan and safety permit were required, but failed to take any\nsteps to secure them. The failure of Enterprise’s employees to follow procedures was a causal\nfactor in this accident, which weighs in favor of the proposed penalty. In addition, there was a\nserious injury resulting from this accident, one that required inpatient hospitalization.4\nWithout employee compliance and proper supervision, Respondent’s past efforts at training and\nthe institution of new safety controls cannot offset the seriousness of the accident or the overall\nresponsibility of the company to ensure safety. While Enterprise’s post-accident remedial\nactions are commendable, they only occurred after the accident and therefore do not impact the\npenalty assessment in this case.\n4 Violation Report at 3.\n\n\n\n4\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $100,000.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $100,000 civil penalty will result in accrual of interest at the current annual\nrate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nUnder 49 C.F.R. § 190.215, Respondent has the right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of the Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of\nany civil penalty assessed but does not stay any other provisions of the Final Order, including\nany required corrective actions. If Respondent submits payment of the civil penalty, the Final\nOrder becomes the final administrative decision and the right to petition for reconsideration is\nwaived.\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":12960}