{"operation":"document","citation":"CPF 420161007M","title":"KINETICA ENERGY EXPRESS LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-07-18","effective_on":null,"summary":"CLOSED notice of amendment citing 192.617.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161007m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161007m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161007m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420161007M","body":"Notice of Amendment involving KINETICA ENERGY EXPRESS LLC. PHMSA's enforcement data identifies the cited regulation as 192.617. The case was opened on 2016-07-18 and is reported as closed as of 2016-08-31. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420161007M_Closure Letter_08312016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161007M/420161007M_Closure%20Letter_08312016.pdf\n\n420161007M_Closure Letter_08312016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161007M/420161007M_Closure%20Letter_08312016_text.pdf\n\n420161007M_Notice of Amendment_07182016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161007M/420161007M_Notice%20of%20Amendment_07182016.pdf\n\n420161007M_Notice of Amendment_07182016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161007M/420161007M_Notice%20of%20Amendment_07182016_text.pdf\n\n420161007M_Operator Response to Notice_08012016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161007M/420161007M_Operator%20Response%20to%20Notice_08012016.pdf\n\n420161007M_Closure Letter_08312016_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 31, 2016\nMs. Diane Dundee\nChief Operations Officer\nKinetica Energy Express LLC\n1001 McKinney St., Suite 900\nHouston, TX 77002\nCPF 4-2016-1007M\nDear Ms. Dundee:\nBetween February 1, 2016 and March 18, 2016, a representative from the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United\nStates Code, conducted an on-site pipeline safety inspection of Kinetica Energy Express LLC\n(Kinetica) procedures in Lake Charles, LA. As a result of the inspection, Kinetica was issued a\nNotice of Amendment on July 18, 2016, which proposed amendment of your procedures.\nKinetica submitted its amended procedures on August 5 & 17, 2016. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420161007M_Notice of Amendment_07182016_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 18, 2016\nMs. Diane Dundee\nChief Operations Officer\nKinetica Energy Express LLC\n1001 McKinney St., Suite 900\nHouston, TX 77002\nCPF 4-2016-1007M\nDear Ms. Dundee:\nBetween February 1, 2016 and March 18, 2016, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the written\noperating and maintenance procedures and other pipeline records for Kinetica Energy Express, LLC\n(Kinetica) in Lake Charles, LA .\nOn the basis of the inspection, PHMSA has identified the apparent inadequacy found within Kinetica’s\nplans or procedures, as described below:\n1. §192.617 Investigation of failures.\nEach operator shall establish procedures for analyzing accidents and failures, including the\nselection of samples of the failed facility or equipment for laboratory examination, where\nappropriate, for the purpose of determining the causes of the failure and minimizing the\npossibility of a recurrence.\nKinetica failed to complete the investigation of each failure to determine the cause and minimize the\npossibility of recurrence in accordance with 192.617. Section 603 of their Operations & Maintenance\nplan fails to provide an adequate procedure to complete the required investigations in a timely manner.\nKinetica first experienced a failure on 10/10/2013 and since then have reported nine failures in the next\nyears, all attributed to internal corrosion.\n\n\n\nWith 10 failures over the course of 2 ½ years , it appears Kinetica’s offshore assets are at an elevated\nrisk of failure due to internal corrosion emphasizing the importance of completing the failure analysis\nand lessons learned to minimize the possibility of recurrence, following each incident.\nKinetica should revise its procedure Section 603(Item 9) in their Operations & Maintenance Manual\npertaining to incident investigations, to ensure failures and/or incident investigations are completed in a\ntimely manner. The revisions must include provisions for conducting investigations following each\nfailure, and must include direction to determine the cause of the failure and recommendations to\nminimize the possibility of a recurrence.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed as part of\nthis Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all material\nyou submit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C.\n552(b), along with the complete original document you must provide a second copy of the document\nwith the portions you believe qualify for confidential treatment redacted and an explanation of why you\nbelieve the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). If you do\nnot respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as\nalleged in this Notice without further notice to you and to issue a Final Order.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in this Notice,\nyou may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.237).\nIf you are not contesting this Notice, we propose that you submit your amended procedures to my office\nwithin 30 days of receipt of this Notice. This period may be extended by written request for good cause.\nOnce the inadequacies identified herein have been addressed in your amended procedures, this\nenforcement action will be closed.\nIt is requested (not mandated) that Kinetica maintain documentation of the safety improvement costs\nassociated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and\nsubmit the total to R. M. Seeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety\nAdministration. In correspondence concerning this matter, please refer to CPF 4-2016-1007M and, for\neach document you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n2","truncated":false,"body_characters":6883}