{"operation":"document","citation":"CPF 420145005","title":"CCPS TRANSPORTATION, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-04-21","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.202.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145005.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145005.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145005","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420145005","body":"Notice of Probable Violation involving CCPS TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulation as 195.202. The case was opened on 2014-04-21 and is reported as closed as of 2019-07-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420145005_Closure Letter_07122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_Closure%20Letter_07122019.pdf\n\n420145005_Closure Letter_07122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_Closure%20Letter_07122019_text.pdf\n\n420145005_Final Order_10082015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_Final%20Order_10082015.pdf\n\n420145005_Final Order_10082015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_Final%20Order_10082015_text.pdf\n\n420145005_NOPV PCO_04212014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_NOPV%20PCO_04212014.pdf\n\n420145005_NOPV PCO_04212014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_NOPV%20PCO_04212014_text.pdf\n\n420145005_Operator Response to Notice_05092014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145005/420145005_Operator%20Response%20to%20Notice_05092014.pdf\n\n420145005_Closure Letter_07122019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 12, 2019\nMr. Terry McGill\nPresident, CCPS Transportation, LLC\n1100 Louisiana St.\nSuite 3300\nHouston, TX 77002\nCPF 4-2014-5005\nDear Mr. McGill:\nOn October 8, 2015, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to CCPS Transportation, LLC, the primary operator of the pipeline and a subsidiary of\nEnbridge Energy Company, a Final Order in the above-referenced case. This Order included a\nCompliance Order. Documents were provided to PHMSA on December 1, 2015 and September\n10, 2018 to show compliance with the terms of the Compliance Order. PHMSA emphasizes the\nimportance of the operator complying with all procedures, as well as relying on fully developed\ntechnical justifications when waiving pipe specifications. Although PHMSA does not believe\nthat all of the justifications that the operator provided are technical in nature, given the\ncircumstances of this particular case, this case is now closed and no further action is\ncontemplated with respect to the matters involved in this case. Thank you for your cooperation\nin this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\ncc: Mr. Darren J. Hunter, Hunter Masalski LLC, 150 N. Michigan Ave., Ste 800, Chicago, IL\n60601\nMr. Mark A. Maki, President, Enbridge Energy Partners LP, 1100 Louisiana St., Ste. 3300,\nHouston, TX 77002\n\n420145005_Final Order_10082015_text.pdf\n\nOctober 8, 2015\nMr. Terrance McGill\nPresident\nCCPS Transportation, LLC\n1100 Louisiana, Suite 3300\nHouston, TX 77002\nRe: CPF No. 4-2014-5005\nDear Mr. McGill:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by CCPS Transportation, LLC, to comply\nwith 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. Rodrick M. Seeley, Southwest Region Director, OPS\nMr. Michael D. Goman, P.E., Senior Manager, U.S. Pipeline Compliance, Enbridge\nPipelines (Lakehead), LLC\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)\nCCPS Transportation, LLC, ) CPF No. 4-2014-5005\na subsidiary of Enbridge Energy Company, Inc., )\n)\nRespondent. )\n___________________________________________ )\nFINAL ORDER\nOn multiple occasions between March 25, 2013, and December 13, 2013, pursuant to 49 U.S.C.\n§ 60117, a representative of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of\nthe construction plans, procedures, specifications and records for construction of the Flanagan\nSouth Pipeline, a 36-inch diameter interstate crude-oil pipeline that originates in Pontiac, Illinois,\nand terminates in Cushing, Oklahoma.1 The written plans and procedures of the pipeline\nincluded those of CCPS Transportation, LLC (CCPS or Respondent), the primary operator of the\npipeline and a subsidiary of Enbridge Energy Company (Enbridge).\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 21, 2014, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that CCPS had violated 49 C.F.R. Part 195 and proposed ordering the company to take\ncertain measures to correct the alleged violation.\nEnbridge responded to the Notice on behalf of CCPS by letter dated May 9, 2014 (Response),\nand May 16, 2014 (Supplemental Response). The company contested the allegation and offered\nadditional information in response to the Notice. Respondent did not request a hearing and\ntherefore has waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\n1 http://www.enbridge.com/FlanaganSouthPipeline.aspx (last visited March 6, 2015). CCPS is the parent of\nEnbridge Pipelines (FSP), LLC, the current owner of the Flanagan South Pipeline.\n\n\n\nCPF No. 4-2014-5005\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.202, which states:\n§ 195.202 Compliance with specifications or standards\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent\nwith the requirements of this part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.202 by failing to construct the\nFlanagan South Pipeline (Project) in accordance with comprehensive written specifications or\nstandards that were consistent with the requirements of Part 195. Specifically, the Notice alleged\nthat CCPS did not follow its own specifications for manufacture of the pipe used to construct the\nProject.\nDuring a construction inspection of the Project, PHMSA became aware that CCPS had waived\nseveral of its written specifications for the manufacture of the pipe used in the construction. The\nNotice alleged that PHMSA had requested justification for the waivers and issued a Request for\nSpecific Information (RSI) to Respondent, seeking additional information. According to the\nNotice, CCPS provided a copy of the company’s Enbridge Engineering Standard (EES-103),\ncreated as the standard for the manufacture of pipe for the company’s pipeline construction\nprojects, along with a document that summarized the specification, the requested waivers and an\nexplanation for each waiver. PHMSA alleged, however, that the documents failed to include any\nwritten specifications describing how waiver requests were handled or decided. Furthermore,\nPHMSA alleged that the company’s response to the RSI did not include technical justification\nfor the waivers that had been granted on the Project. As an example, PHMSA alleged that\nEVRAZ, the pipe manufacturer, had provided an “Inspection and Test Checklist” for each step of\nthe manufacturing process, indicating that EVRAZ had manufactured the pipe using certain\nrequested waivers.\nIn its Response, Enbridge contested the allegation of violation, stating that the pipe used in the\nProject had indeed been manufactured in accordance with the company’s own specification,\nEES-103, Submerged Arc Welded Steel Pipeline Specification, with approved deviations.\nAccording to the company, it used EES-103 to specify the requirements for the manufacture of\nsteel line pipe and that the standard augmented [American Petroleum Institute (API)]\nSpecification 5L, “Specification for Line Pipe,” the industry specification incorporated by\nreference in PHMSA’s regulation.2\nEnbridge explained that when a difference existed between the company’s requirements for the\nProject and the level of rigor prescribed in the EES, a Technical Standards Deviation Request\n(TSDR) process was utilized to resolve the difference. According to CCPS,\nThat process utilizes subject matter expert review to rationalize a\nrequest to change the specification, and requests were either approved\nor declined based upon technical justification. The TSDR process\n2 Response, at 2.\n\n\n\nCPF No. 4-2014-5005\nPage 3\ncould be used on a one-off basis for a specific project or could result\nin a wholesale change to the EES.3\nEnbridge asserted that in the case of the Flanagan South Project, the company’s TSDR process\nwas followed and resulted in the amended specifications used to manufacture the pipe. In its\nSupplemental Response, Enbridge asserted that it was providing the requested justification\nsupplemental to the information provided in the RFSI and that it had demonstrated the pipe used\non the Flanagan South Project was “fit for service and does not pose an integrity threat to the\npublic or the environment.”4\nDespite the submissions by Enbridge related to the deviations, the crux of the issue is not\nwhether technical justifications requested by PHMSA were or were not adequate but whether\nCCPS had and followed a written process for waiving its own specifications. According to\nSection 1 of the company’s own procedure, EES-103: “Any and all deviations from this\nSpecification shall be brought to the attention of the Company in writing for resolution prior to\nfinal acceptance.”5 Such statement, however, does not itself constitute a written standard or\nprocess for granting deviations or waivers from EES-103 or any other Enbridge construction\nrequirement. Though it may be true that CCPS did in fact have a process for approving\ndeviations from its written construction specifications, there was no reference to it in the EES-\n103, Submerged Arc Welded Steel Pipeline Specification nor did CCPS have a written set of\ncriteria by which to evaluate or justify any deviation from the company’s own specifications.\nUnder 49 C.F.R. § 195.202, every pipeline operator constructing a hazardous liquid pipeline\nmust build it in accordance with comprehensive written specifications or standards that are\nconsistent with Part 195. This means that operators have the flexibility to develop their own\nconstruction specifications and standards that meet their own peculiar needs for individual\nconstruction projects such as the Flanagan South Pipeline, so long as they are consistent with\nPart 195. However, the written standards and specifications used must be “comprehensive,”\nmeaning that they need to generally cover all aspects of construction, including those situations\nwhere an operator issues change orders or waivers from its own written specifications. This\nmeans that the process the operator uses for approving waivers must also be properly\ndocumented and justified in some fashion so that it is clear to company personnel and PHMSA,\nboth at the time of construction and later during operation, that the changes were technically\nsound and consistent with Part 195. In this case, by not having a rigorous, written waiver\nprocess that shows how and why each waiver was granted, CCPS suffered a major gap in its\nconstruction specifications and standards that allowed the company to potentially circumvent or\nignore the requirements of Part 195.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.202 by failing to construct the Project in accordance with comprehensive written\nspecifications or standards that are consistent with the requirements of Part 195.\n3 Id.\n4 Supplemental Response, at 1.\n5 PHMSA Pipeline Safety Violation Report (April 9, 2014) (Violation Report), Exhibit A, at 1.\n\n\n\nCPF No. 4-2014-5005\nPage 4\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1in the Notice for violation of\n49 C.F.R. § 195.202. Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.202 (Item 1), Respondent must:\na. Provide technical justification for the waivers granted on the Project and\nshow that the waivers did not result in the pipeline being constructed with\npipe that would pose an integrity threat to the public or the environment.\nAlso, if CCPS wants to allow waivers from its specifications, the company\nmust modify its procedure or specification to define a process for waivers\nor variances from its specifications.\nb. This action for Item 1 should be completed within 30 days of issuance of\nthe Final Order.\nc. It is requested (not mandated) that CCPS maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order\nand submit the total to R.M. Seeley, Director, Southwest, Pipeline and\nHazardous Materials Safety Administration. It is requested that these\ncosts be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and 2)\ntotal cost associated with replacements, additions and other changes to\npipeline 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. § 190.243, 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\n\n\n\nCPF No. 4-2014-5005\nPage 5\nrequirements of 49 C.F.R. § 190.243.\nUnless the Associate Administrator, upon request, grants a stay, the terms and conditions of this\nFinal Order are effective upon service in accordance with 49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":15556}