# GENESIS OFFSHORE HOLDINGS, LLC — Warning Letter

- **operation:** document
- **citation:** CPF 420155027W
- **title:** GENESIS OFFSHORE HOLDINGS, LLC — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2015-11-05
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.64(c)(2)(iv).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420155027W
**body:**

Warning Letter involving GENESIS OFFSHORE HOLDINGS, LLC. PHMSA's enforcement data identifies the cited regulation as 195.64(c)(2)(iv). The case was opened on 2015-11-05 and is reported as closed as of 2015-11-05. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420155027W_Warning_11052015-text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420155027W/420155027W_Warning_11052015-text.pdf

420155027W_Warning_11052015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420155027W/420155027W_Warning_11052015.pdf

420155027W_Warning_11052015.pdf

f Transportatic
S. Departme
Houston, TX 77074
8701 South Gessner, Suite 1110
Pipeline and
Administration
Hazardous Materials Safety
WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 05, 2015
Mr. Grant E. Sims
Director and Chief Executive Officer
Genesis Energy, Genesis Offshore Holdings, LLC
919 Milam Street, Suite 2100
Houston, TX 77002
CPF 4-2015-5027W
Dear Mr. Sims:
Representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA)
pursuant to Chapter 601 of 49 United States Code have been reviewing your reports and
have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of
notifications that have been submitted to PHMSA. As a result of this review, it appears that you
Federal Regulations. The items reviewed and the probable violation is:
1.
§195.64 National Registry of Pipeline and LNG Operators.
(c) Changes.
Each operator must notify PHMSA electronically through the
National Registry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov.
of certain events.
(2) An operator must notify PHMSA of any following event not later than 60
days after the event occurs:
(iv) The acquisition or divestiture of 50 more miles of pipeline or
pipeline system subject to this part;



Genesis Offshore Holdings, LLC failed to notify PHMSA of its intent to acquire 50 more miles
of pipeline or pipeline system no later than 60 days beginning July 24, 2015, which in this case
was the date of acquisition. This notification was required on September 22, 2015.
Genesis Offshore Holdings submitted an Operator Registry Notification, PHMSA F 1000.2, on
October 19, 2015, for the acquisition of 1,975 miles of gas gathering, gas transmission, and
hazardous liquids pipelines that were formerly owned and operated by Enterprise Products
Operating, LLC.
The acquired pipelines consists of 874 miles of offshore gas gathering pipelines in the Outer
Continental Shelf (OCS) Gulf of Mexico, 4.31 miles of interstate gas transmission pipeline in the
counties of Matagorda and Calhoun in the state of Texas, 1.52 miles of offshore gas transmission
pipeline in the OCS Gulf of Mexico, 0.52 miles of interstate hazardous liquid pipeline in the
county of Galveston in the state of Texas, and 1,095 miles of hazardous liquid pipeline in the
OCS Gulf of Mexico.
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000
per violation per day the violation persists up to a maximum of $2,000,000 for a related series of
violations. For violations occurring prior to January 4, 2012, the maximum penalty may not
exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a
related series of violations. We have reviewed the circumstances and supporting documents
involved in this case, and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2015-5027W. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe
the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
2

420155027W_Warning_11052015-text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 05, 2015
Mr. Grant E. Sims
Director and Chief Executive Officer
Genesis Energy, Genesis Offshore Holdings, LLC
919 Milam Street, Suite 2100
Houston, TX 77002
CPF 4-2015-5027W
Dear Mr. Sims:
Representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA)
pursuant to Chapter 601 of 49 United States Code have been reviewing your reports and
notifications that have been submitted to PHMSA. As a result of this review, it appears that you
have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of
Federal Regulations. The items reviewed and the probable violation is:
1. §195.64 National Registry of Pipeline and LNG Operators.
(c) Changes. Each operator must notify PHMSA electronically through the
National Registry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov,
of certain events.
(2) An operator must notify PHMSA of any following event not later than 60
days after the event occurs:
(iv) The acquisition or divestiture of 50 more miles of pipeline or
pipeline system subject to this part;



Genesis Offshore Holdings, LLC failed to notify PHMSA of its intent to acquire 50 more miles
of pipeline or pipeline system no later than 60 days beginning July 24, 2015, which in this case
was the date of acquisition. This notification was required on September 22, 2015.
Genesis Offshore Holdings submitted an Operator Registry Notification, PHMSA F 1000.2, on
October 19, 2015, for the acquisition of 1,975 miles of gas gathering, gas transmission, and
hazardous liquids pipelines that were formerly owned and operated by Enterprise Products
Operating, LLC.
The acquired pipelines consists of 874 miles of offshore gas gathering pipelines in the Outer
Continental Shelf (OCS) Gulf of Mexico, 4.31 miles of interstate gas transmission pipeline in the
counties of Matagorda and Calhoun in the state of Texas, 1.52 miles of offshore gas transmission
pipeline in the OCS Gulf of Mexico, 0.52 miles of interstate hazardous liquid pipeline in the
county of Galveston in the state of Texas, and 1,095 miles of hazardous liquid pipeline in the
OCS Gulf of Mexico.
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000
per violation per day the violation persists up to a maximum of $2,000,000 for a related series of
violations. For violations occurring prior to January 4, 2012, the maximum penalty may not
exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a
related series of violations. We have reviewed the circumstances and supporting documents
involved in this case, and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2015-5027W. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe
the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
2
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