{"operation":"document","citation":"CPF 420145014","title":"BLACK ELK ENERGY LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-06-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.404(a)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145014.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145014.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145014","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420145014","body":"Notice of Probable Violation involving BLACK ELK ENERGY LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.404(a)(4). The case was opened on 2014-06-16 and is reported as closed as of 2019-03-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420145014_Final Order_12292014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_Final%20Order_12292014.pdf\n\n420145014_Final Order_12292014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_Final%20Order_12292014_text.pdf\n\n420145014_HQ Suspension Letter_11032016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_HQ%20Suspension%20Letter_11032016.pdf\n\n420145014_HQ Suspension Letter_11032016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_HQ%20Suspension%20Letter_11032016_text.pdf\n\n420145014_NOPV PCO_06162014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_NOPV%20PCO_06162014.pdf\n\n420145014_NOPV PCO_06162014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_NOPV%20PCO_06162014_text.pdf\n\n420145014_Operator Response to Notice_07012014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_Operator%20Response%20to%20Notice_07012014.pdf\n\n420145014_Operator_Response to Notice_07012014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145014/420145014_Operator_Response%20to%20Notice_07012014.pdf\n\n420145014_Final Order_12292014_text.pdf\n\nDECEMBER 29, 2014\nMr. Jeffrey Shulse\nPresident & CEO\nBlack Elk Energy, LLC\n11451 Katy Freeway\nHouston, Texas 77079\nRe: CPF No. 4-2014-5014\nDear Mr. Shulse:\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 Black Elk Energy, LLC, to comply with\nthe pipeline safety regulations. When the terms of the compliance order have been completed, as\ndetermined by the Director, Southwest Region, Office of Pipeline Safety, this enforcement action\nwill be closed. Service of the Final Order by certified mail is deemed effective upon the date of\nmailing, 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\nMs. Karen Vanacor, Environmental, Health, & Safety Supervisor, Black Elk Energy,\nLLC\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)\nBlack Elk Energy, LLC, ) CPF No. 4-2014-5014\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn multiple occasions between July and November, 2013, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Black Elk Energy, LLC (Black Elk or Respondent), in Conroe, Texas. Black Elk is an\nindependent oil and gas company with aggregate interests in 675 wells on 176 platforms over\n250,000 gross acres offshore in Louisiana and Texas state and federal waters.\n1 Black Elk\noperates three offshore crude-oil pipelines totaling approximately 40 miles.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated June 16, 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 Black Elk had violated 49 C.F.R. §§ 195.402(a), and 195.404(a)(4) and proposed\nordering Respondent to take certain measures to correct the alleged violations.\nBlack Elk responded to the Notice by letter dated July 1, 2014 (Response). The company did not\ncontest the allegations of violation, but provided information on remedial steps it had taken to\ncomply with the regulations cited in the Notice. Black Elk did not request a hearing and\ntherefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Black Elk did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Black Elk Energy, LLC website, available at http://www.blackelkenergy.com/about-us/properties (last accessed\nOctober 25, 2014).\n2 Pipeline Safety Violation Report (Violation Report) (June 16, 2014) (on file with PHMSA) at 1.\n\n\n\nCPF No: 4-2014-5014\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and\nemergencies. This manual shall be reviewed at intervals not exceeding 15\nmonths, but at least once each calendar year, and appropriate changes made\nas necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline system commence, and\nappropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its own\nmanual of written procedures for conducting normal operations and maintenance activities.\nSpecifically, the Notice alleged that Black Elk failed to follow its own procedures for conducting\ntwo different activities. First, it alleged that during the PHMSA field inspection, Black Elk’s\ncontractor responsible for monitoring rectifiers was asked to demonstrate how he inspected the\nrectifier at Tank 45. The contractor allegedly performed the inspection by reading the amps and\nvolts gauge, even though Black Elk’s written procedures stated that rectifier output voltage and\ncurrent readings must be measured by the use of a multimeter.3 When the contractor was asked\nif he used a multimeter to obtain these measurements, he responded, “Not all the time.”\nSecond, the Notice alleged that Respondent failed to follow its own written corrosion-control\nprocedures. Specifically, it alleged that on September 8, 2012, October 5, 2012, and\nAugust 10, 2013, the weight loss for three corrosion-control coupons was greater than 1.0 mils\nper year (mpy). Respondent’s written procedures for corrosion control state that any corrosion\nrate higher than 1.0 mpy requires additional investigation to determine whether action is needed\nto reduce the rate of corrosion.4 Respondent was unable to demonstrate that it had taken any\naction either to investigate or ameliorate corrosive conditions in the pipeline.\nIn its Response, Black Elk did not contest this allegation of violation. Accordingly, based upon a\nreview of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.402(a) by failing to\nfollow its own written procedures for rectifier inspections and corrosion control.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(4), which states:\n§ 195.404 Maps and records.\n(a) Each operator shall maintain current maps and records of its\npipeline systems that include at least the following information:\n(1) . . .\n3 Id., at Exhibit A, Black Elk Energy, Liquid Pipeline Operations, Maintenance & Emergency Manual, Survey Step\nFour, Page 10-7 (June 21, 2013).\n4 Id.\n\n\n\nCPF No: 4-2014-5014\nPage 3\n(4) The diameter, grade, type and nominal wall thickness of all pipe.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(4) by failing to maintain\ncurrent maps and records of the diameter, grade, type and nominal wall thickness of all pipe in\nits pipeline system. Specifically, during the PHMSA inspection, Respondent provided the\ninspector with transcribed records for its Sabine Pass 13 (SP 13) 8-inch pipeline specifications\nbut they could not be verified through original records, pipe mill records, purchase requisitions,\nor manufacturer specification records.\nIn its Response, Black Elk did not contest the allegation and stated that it was unable to obtain\nthese records from the previous owner at the time of the acquisition. Instead, Black Elk\nexplained that it had pulled “information from the BSEE5 permit to include in the pipeline\nrecords” and stated that “this information was supplied during the records review.”\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\n49 C.F.R. § 195.404(a)(4) by failing to maintain current records of the diameter, grade, type and\nnominal wall thickness of all pipe in its pipeline system.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction brought against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 2 in the Notice, for\nviolations of 49 C.F.R. §§ 195.402(a) and 195.404(a)(4), respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of gas or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.402(a) (Item 1), relating to Black Elk’s\nfailure to conduct proper rectifier inspections, Respondent must review its current\nprocedures, make any amendments as necessary, and then review the final\nprocedures with all personnel who perform such inspections.\n2. With respect to the violation of § 195.402(a) (Item 1), relating to conducting\nfurther investigation of corrosion control coupons showing excessive weight loss,\nBlack Elk must review its current procedures, make any amendments as\nnecessary, and then review the final procedures with all personnel who are\nresponsible for coupon monitoring.\n3. With respect to the violation of § 195.404(a)(4) (Item 2), for failing to maintain\n5 BSEE is an acronym for the Bureau of Safety and Environmental Enforcement, U.S. Department of the Interior.\n\n\n\nCPF No: 4-2014-5014\nPage 4\ncurrent maps and records of the SA 13 pipeline system, Black Elk must:\na. Verify flange and pipe fittings on its pipeline system at the platform and\nonshore facilities to be commensurate with the maximum operating pressure;\nb. Verify pipe-wall thickness of the piping on the platform and at the onshore\nfacility by measuring the thickness at quarter points around the pipe;\nc. Degrade pipeline yield strength to 24,000 psi or verify pipeline yield strength\nby performing all of the tensile tests of [American Petroleum Institute (API)]\nSpecification 5L on randomly specimens at every 100 feet of pipeline; and\nd. Degrade pipe seam joint factor to .8 or verify type of seam by testing portions\nof the seam at various locations.\n4. Black Elk must provide documentation of compliance with this Order to the\nDirector, Southwest Region, OPS, within 30 days after receipt of the Final Order.\n5. It is requested that Black Elk maintain documentation of the safety improvement\ncosts associated with fulfilling this Final Order and submit the total to R.M.\nSeeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1)\ntotal cost associated with preparation/revision of plans, procedures, studies and\nanalyses; and 2) total cost associated with replacements, additions and other\nchanges 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.\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":12587}