{"operation":"document","citation":"CPF 420135019","title":"BOARDWALK PETROCHEMICAL PIPELINE, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-09-25","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(e)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135019.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135019.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420135019","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420135019","body":"Notice of Probable Violation involving BOARDWALK PETROCHEMICAL PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulation as 195.452(e)(1). The case was opened on 2013-09-25 and is reported as closed as of 2015-09-18. Proposed civil penalty: $33,100. Assessed civil penalty: $33,100. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420135019_Closure_09182015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_Closure_09182015.pdf\n\n420135019_Closure_09182015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_Closure_09182015_text.pdf\n\n420135019_Final Order_10232014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_Final%20Order_10232014.pdf\n\n420135019_Final Order_10232014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_Final%20Order_10232014_text.pdf\n\n420135019_NOPV PCP PCO_09252013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_NOPV%20PCP%20PCO_09252013.pdf\n\n420135019_NOPV PCP PCO_09252013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_NOPV%20PCP%20PCO_09252013_text.pdf\n\n420135019_Operator Response to Notice_10292013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135019/420135019_Operator%20Response%20to%20Notice_10292013.pdf\n\n420135019_Final Order_10232014_text.pdf\n\nOCTOBER 23, 2014\nMr. Al Williams\nPresident\nChevron Pipe Line Company, LLC\n4800 Fournace Place\nBellaire, TX 77401\nRe: CPF No. 4-2013-5019\nDear Mr. Williams:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $33,100, and specifies actions that need to be taken by\nChevron Pipe Line Company, LLC, to comply with the pipeline safety regulations. This is to\nacknowledge receipt of payment of the full penalty amount, by wire transfer, dated\nMarch 25, 2014. When the terms of the compliance order have been completed, as determined\nby the Director, Southwest Region, this enforcement action will be closed. Service of the Final\nOrder by certified mail is deemed effective upon the date of mailing, or as otherwise provided\nunder 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. James M. Barnum, General Manager, Operations-Transition, Chevron Pipe Line\nCompany, LLC, 4800 Fournace Place, Bellaire, Texas 77401\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__________________________________________\nIn the Matter of )\nChevron Pipe Line Company, LLC, ) CPF No. 4-2013-5019\n)\n)\n)\nRespondent. )\n_________________________________________ )\nFINAL ORDER\nBetween April 16 and June 14, 2013, 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 on-site pipeline safety inspection of the facilities and records of Chevron\nPipe Line Company, LLC (Chevron or Respondent), at the company’s Evangeline Ethylene\nPipeline (Evangeline Pipeline) facilities in Houston, Texas. Chevron is an indirect, wholly-\nowned subsidiary of Chevron Corporation. Chevron operates pipeline assets that transport crude\noil, refined petroleum products, liquefied petroleum gas, natural gas and chemicals throughout\nthe United States.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated September 25, 2013, a Notice of Probable Violation, Proposed Civil\nPenalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Chevron had violated 49 C.F.R. § 195.452(e)(1), and proposed\nassessing a civil penalty of $33,100 for the alleged violation. The Notice also proposed that\nRespondent be required to take certain measures to correct the alleged violation.\nChevron responded to the Notice, by letter dated October 29, 2013 (Response). Respondent did\nnot contest the allegations of violation, but provided information concerning the corrective\nactions it has taken to comply with the Proposed Compliance Order and paid proposed civil\npenalty of $33,100, as provided in 49 C.F.R. § 190.227. Payment of the penalty will serve to\nclose the case with prejudice to Respondent.\nFINDING OF VIOLATION\nIn its Response, Chevron, did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 See http://www.chevronpipeline.com/about/ (current as of June 10, 2014).\n\n\n\n2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(e)(1), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(e) What are the risk factors for establishing an assessment schedule\n(for both the baseline and continual integrity assessments)? (1) An\noperator must establish an integrity assessment schedule that prioritizes\npipeline segments for assessment (see paragraphs (d)(1) and (j)(3) of this\nsection). An operator must base the assessment schedule on all risk factors\nthat reflect the risk conditions on the pipeline segment. The factors an\noperator must consider include, but are not limited to:\n(i) Results of the previous integrity assessment, defect type and size\nthat the assessment method can detect, and defect growth rate;\n(ii) Pipe size, material, manufacturing information, coating type and\ncondition, and seam type;\n(iii) Leak history, repair history and cathodic protection history;\n(iv) Product transported;\n(v) Operating stress level;\n(vi) Existing or projected activities in the area;\n(vii) Local environmental factors that could affect the pipeline (e.g.,\ncorrosivity of soil, subsidence, climatic);\n(viii) Geo-technical hazards; and\n(ix) Physical support of the segment such as by a cable suspension\nbridge.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(e)(1) by failing (1) to properly\nconsider and evaluate all the risks associated with the Evangeline Pipeline, and (2) to factor-in\nthe leak history of the Evangeline Pipeline when performing an integrity assessment for the\npipeline. Integrity Management is an important part of the safety protocol for operators of\npipelines, and provides assurance that operators are properly assessing the risks along particular\nsegments of pipeline and taking steps to mitigate those risks. Specifically, the Notice alleged\nthat Chevron did not properly consider all of the relevant risk factors in determining the\nassessment schedule for the Evangeline Pipeline because it did not consider the line’s leak\nhistory. As a result, Chevron did not select an internal inspection method capable of assessing\nseam-integrity issues stemming from known risk factors.\nThe Notice further alleged that the Evangeline Pipeline is a 16-inch, .312/.314 wt.(wall\nthickness), X52 LF (low frequency) electric-resistance welded pipe manufactured in 1953 at the\nYoungstown Sheet and Tube Company, NY. On May 10, 2012, in preparation for its 2012\nreassessment, Chevron completed a review of: (1) its 2007 reassessment findings; and (2)\nmultiple reports of leaks on the Evangeline Pipeline from 2007 to 2012. Based on the review,\nChevron allegedly selected a geometry and magnetic flux leakage tool for its 2012 reassessment\nmethod. However, the Evangeline Pipeline had two documented seam leaks in 2011, but those\nleaks were not considered during the company’s assessment process. According to the Notice,\nChevron was aware that the Evangeline Pipeline had been manufactured before 1962 and was\nsusceptible to longitudinal seam failure but still failed to select an assessment tool or method\ncapable of assessing the long seam.\n\n\n\n3\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. § 195.452(e)(1) by (1) failing to\nproperly consider and evaluate all the risks associated with the Evangeline Pipeline, and (2)\nfailing to factor-in the leak history when performing an integrity assessment for the Evangeline\nPipeline.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\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 $33,100 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $33,100 for Respondent’s violation of 49 C.F.R.\n§ 195.452(e)(1), for failing (1) to properly consider and evaluate all the risks associated with the\nEvangeline Pipeline, and (2) failing to factor-in the leak history of the Evangeline Pipeline when\nperforming an integrity assessment of the line. Chevron neither contested the allegation nor\npresented any evidence or argument justifying elimination or reduction of the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $33,100 for violation of 49 C.F.R. § 195.452(e)(1).\nIn summary, having reviewed the record and considered the assessment criteria for the Item cited\nabove, I assess Respondent a total civil penalty of $33,100 for violation of 49 C.F.R.\n§ 195.452(e)(1), which has been paid in full.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 195.452(e)(1). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of [gas] [hazardous liquids] or who owns or operates a pipeline facility is required\nto comply 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:\n\n\n\n4\n1. With respect to the violation of § 195.452(e)(1) (Item 1):\na. In regard to Item Number 1 of the Notice, pertaining to Chevron’s failure to\nproperly consider risks for the Evangeline Pipeline, Chevron must assess the\nEvangeline Pipeline by a method prescribed in Appendix G of its Pipeline Integrity\nManagement Program Manual.\nb. Chevron shall complete the assessment of the Evangeline Pipeline within 30 days of\nreceiving this Final Order.\nc. It is requested (not mandated) that Chevron Pipe Line Company, LLC maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Mr. R.M. Seeley, Director, Southwest\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and 2) total cost\nassociated with replacements, additions and other changes to pipeline infrastructure.\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.\nUnder 49 C.F.R. § 190.215, Respondent has a 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 this 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. Unless the Associate Administrator, upon request, grants a stay, all\nother 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\n420135019_Closure_09182015_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 18, 2015\nMr. Randall Curry\nPresident\nChevron Petrochemical Pipeline LLC\n4800 Fournace Place\nBellaire, TX 77401\nCPF 4-2013-5019\nDear Mr. Curry:\nBetween April 16 and June 14, 2013, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the\nChevron Petrochemical Pipeline LLC (Chevron) maintenance and integrity management records\nfor the Evangeline Ethylene Pipeline system in Houston, TX. As a result of the inspection,\nChevron was issued a Notice of Probable Violation (NOPV), Civil Penalty (CP), and Proposed\nCompliance Order (PCO) on September 25, 2015.\nChevron submitted its response to the NOPV and PCO on October 29, 2013, but did not request\na hearing. The submittal was received in my office on October 31, 2014. On September 22 and\n24, 2014, PHMSA Southwest Region visited Chevron’s office in Bellaire, TX to review hydro-\ntest records for the Evangeline. Based on PHMSA’s review of the of the hydro-test records, the\ntests were not determined to be valid due to indications of unaccounted for pressure loss during\nthe test. Since Boardwalk’s acquisition of the Evangeline, a CAO (CPF 4-2014-5027H) was\nissued requiring an Integrity Verification and Remediation Plan be developed.\nThis letter is to inform you no further action is necessary and this case is now closed.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420135019_NOPV PCP PCO_09252013_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 25, 2013\nMr. Randall Curry\nPresident\nChevron Petrochemical Pipeline LLC\n4800 Fournace Place\nBellaire, TX 77401\nCPF 4-2013-5019\nDear Mr. Curry:\nBetween April 16 and June 14, 2013, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code inspected your maintenance and integrity management records for the\nEvangeline Ethylene Pipeline system in Houston, TX.\nAs a result of the inspection, it appears that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected and the\nprobable violation is:\n1. § 195.452(e)(1) - Pipeline integrity management in high consequence areas.\n(e) What are the risk factors for establishing an assessment schedule (for both the\nbaseline and continual integrity assessments)? (1) An operator must establish an\nintegrity assessment schedule that prioritizes pipeline segments for assessment (see\nparagraphs (d)(1) and (j)(3) of this section). An operator must base the assessment\n\n\n\nschedule on all risk factors that reflect the risk conditions on the pipeline segment. The\nfactors an operator must consider include, but are not limited to:\n(i) Results of the previous integrity assessment, defect type and size that the\nassessment method can detect, and defect growth rate;\n(ii) Pipe size, material, manufacturing information, coating type and condition,\nand seam type;\n(iii) Leak history, repair history and cathodic protection history;\n(iv) Product transported;\n(v) Operating stress level;\n(vi) Existing or projected activities in the area;\n(vii) Local environmental factors that could affect the pipeline (e.g., corrosivity\nof soil, subsidence, climatic),\n(viii) geo-technical hazards; and\n(ix) Physical support of the segment such as by a cable suspension bridge.\nChevron did not properly consider and evaluate all the risks in order to properly establish an\nassessment schedule using an acceptable assessment method and did not use its leak history\nwhen performing the evaluation. Chevron did not select an internal inspection tool capable of\nassessing seam integrity issues based on known risk factors associated with the Evangeline\nEthylene Pipeline (Evangeline). The Evangeline is a 16”, .312/.314 wt., X52 LF (low frequency)\nERW (electric resistance welded) pipe manufactured in 1953 at the Youngstown Sheet and Tube\nCompany, NY.\nOn May 10, 2012, Chevron completed its review of the 2007 reassessment findings as well as\nleaks found from 2007 through 2012. Based on their risk analysis, Chevron selected a geometry\nand MFL tool for its 2012 reassessment method. The Evangeline had two seam related leaks in\n2011; however Chevron failed to include that data in its risk analysis for the 2012 reassessment\nmethod determination.\nChevron’s Pipeline Integrity Management Program Manual procedure for continual evaluation\nand assessment, Section 3.3.1 – “Reassessment Intervals and Methods”, makes reference to\nAppendix G, Integrity Assessment Process for Gas or Hazardous Liquids – Flowchart F1 and\nSheet F1.1. Appendix G contains numerous flowcharts which outline the process for\ndetermining which ILI tool should be used for LF ERW pipe manufactured before 1962.\nKnowing that the Evangeline was manufactured before 1962, and is susceptible to longitudinal\nseam failure, the Evangeline should have been assessed in June 2012 by a tool capable of\nassessing the long seam. If those tools were not available, then a hydro-test should have been\nperformed. This tool selection process is contained in Chevron’s assessment method\ndetermination flowcharts A2, A3, A3.1, and A3.2.\n2\n\n\n\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000\nper violation per day the violation persists up to a maximum of $2,000,000 for a related series of\nviolations. For violations occurring prior to January 4, 2012, the maximum penalty may not\nexceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a\nrelated series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violation(s) and has recommended that\nyou be preliminarily assessed a civil penalty of $33,100.\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Chevron\nPetrochemical Pipeline LLC. Please refer to the Proposed Compliance Order, which is enclosed\nand made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Compliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If\nyou believe that any portion of your responsive material qualifies for confidential treatment\nunder 5 U.S.C. 552(b), along with the complete original document you must provide a second\ncopy of the document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 4-2013-5019 and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n3\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Chevron Petrochemical Pipeline LLC a\nCompliance Order incorporating the following remedial requirements to ensure the compliance\nof Chevron Petrochemical Pipeline LLC with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number 1 of the Notice pertaining to Chevron’s failure to\nproperly consider risks for the Evangeline Ethylene Pipeline. Chevron must\nassess the Evangeline Pipeline by a method prescribed in Appendix G of its\nPipeline Integrity Management Program Manual.\nChevron shall complete the assessment of the Evangeline Pipeline within 30 days\nof receiving the final order.\nIt is requested (not mandated) that Chevron Petrochemical Pipeline LLC\nmaintain documentation of the safety improvement costs associated with fulfilling\nthis Compliance Order and submit the total to Mr. R. M. Seeley, Director,\nSouthwest Region, Pipeline and Hazardous Materials Safety Administration. It is\nrequested that these costs be reported in two categories: 1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses, and 2) total\ncost associated with replacements, additions and other changes to pipeline\ninfrastructure.\n4","truncated":false,"body_characters":22544}