{"operation":"document","citation":"CPF 420161011","title":"NATURAL GAS PIPELINE CO OF AMERICA (KMI) — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-10-28","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.603(b), 192.605(a), 192.605(b)(1), 192.605(b)(5), 192.615(b)(2), 192.615(b)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161011.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161011.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161011","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420161011","body":"Notice of Probable Violation involving NATURAL GAS PIPELINE CO OF AMERICA (KMI). PHMSA's enforcement data identifies the cited regulations as 192.603(b),  192.605(a),  192.605(b)(1),  192.605(b)(5),  192.615(b)(2),  192.615(b)(3). The case was opened on 2016-10-28 and is reported as closed as of 2019-04-24. Proposed civil penalty: $131,000. Assessed civil penalty: $131,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420161011_Closure Letter_04242019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_Closure%20Letter_04242019.pdf\n\n420161011_Closure Letter_04242019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_Closure%20Letter_04242019_text.pdf\n\n420161011_Final Order_10242017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_Final%20Order_10242017.pdf\n\n420161011_Final Order_10242017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_Final%20Order_10242017_text.pdf\n\n420161011_NOPV PCP PCO_10282016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_NOPV%20PCP%20PCO_10282016.pdf\n\n420161011_NOPV PCP PCO_10282016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_NOPV%20PCP%20PCO_10282016_text.pdf\n\n420161011_Operator Response to Notice and Request for Case File_12072016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161011/420161011_Operator%20Response%20to%20Notice%20and%20Request%20for%20Case%20File_12072016.pdf\n\n420161011_NOPV PCP PCO_10282016_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 28, 2016\nMr. Gary Buchler\nVice President of Gas Operations\nNatural Gas Pipeline Company of America, LLC\n1001 Louisiana Street\nHouston, TX 77002\nCPF 4-2016-1011\nDear Mr. Buchler:\nOn multiple occasions between March 9, 2015 and September 18, 2015, representatives of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), pursuant to Chapter 601 of 49 United States Code were onsite and inspected Natural Gas\nPipeline Company of America’s (NGPL) pipeline assets in Texas, Oklahoma, Arkansas and\nIllinois.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violations are:\n\n\n\n1. 2. §192.605 Procedural manual for operations, maintenance and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operating and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed\nand updated by the operator at intervals not exceeding 15 months, but at least\nonce each calendar year. This manual must be prepared before operations of a\npipeline system commence. Appropriate parts of the manual must be kept at\nlocations where operations and maintenance activities are conducted.\n§ 192.615 Emergency plans.\n(b) Each operator shall:\n(2) Train the appropriate operating personnel to assure that they are\nknowledgeable of the emergency procedures and verify that the training is\neffective.\nNGPL failed to document that training of personnel in the Emergency Procedures is\neffective. Kinder Morgan’s O&M Procedure, O&M 1900, Emergency Response, 4.\nTraining, states that “Area/facility management will ensure that the ERP is reviewed\nannually with each employee to verify emergency training is effective per the Company’s\nTraining Matrix.” “Document the individual employee review and training effectiveness\nverification. Recommended verification methods for training and drills are to conduct\ndiscussions of employees’ emergency response scenarios specific to each area/facility or\nto administer a written evaluation containing questions about emergency response\nprocedures.”\nDuring the inspection, NGPL provided drills that were conducted by NGPL on\nNovember 12, 2013, and April 15, 2014, as documentation of the effectiveness training\nof the emergency procedures. Documentation of drill activities does not include\nverification of personnel’s knowledge of emergency procedures or verification of training\neffectiveness, as per Kinder Morgan procedure O&M 1900 Emergency Response.\n§192.605 Procedural manual for operations, maintenance and emergencies.\n(a) See above.\n§ 192.615 Emergency plans.\n(b) Each operator shall:\n(3) Review employee activities to determine whether the procedures were\neffectively followed in each emergency.2\n\n\n\nNGPL failed to document the review of employee activities to determine whether procedures\nwere effectively followed by employees in response to an emergency. Kinder Morgan’s\nO&M Procedures, O&M 159, Emergency Reporting and Investigation, states: “Include in the\ninvestigation, at a minimum: Evaluation of the response of the employees to determine the\neffectiveness of the procedures and corrective actions taken when deficiencies are found.”\nDuring the inspection, records for incident DOT 20150096-16858 reported on June 18, 2015,\nnear Marshall, Texas, were reviewed. Kinder Morgan’s Form OM100-45 was completed by\nNGPL personnel following the incident to document the incident and summarize the event.\nThe form failed to document a review of employee activities for the purpose of determining\nwhether the Emergency Plan procedures were effectively followed.\n3. §192.603 General provisions.\n(b) Each operator shall keep records necessary to administer the procedures\nestablished under § 192.605.\n§192.605 Procedural manual for operations, maintenance, and emergencies.\n(b) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following, if applicable, to provide\nsafety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance with each of\nthe requirements of this subpart and subpart M of this part.\nNGPL’s records do not document that valves necessary during an emergency were\npartially operated during NGPL’s inspections of emergency valves as required under\n§192.745. NGPL inspection forms included check boxes for their inspectors to indicate\nwhether valves were lubricated and operated. Kinder Morgan’s O&M Procedure, O&M\n301, Inspecting and Servicing Emergency Valves, states “Operate valves fully whenever\npossible; otherwise, partial operation is acceptable.” During the inspection it was noted\nfrom the valve inspection records that there were 21 emergency valves that were not\npartially operated in 2013 and 12 emergency valves that were not partially operated in\n2012. There were 2 locations that did not indicate any operation of the valves in both\n2012 and 2013.\n4. §192.603 General provisions.\n(b) Each operator shall keep records necessary to administer the procedures\nestablished under § 192.605.\n§192.605 Procedural manual for operations, maintenance, and emergencies.\n3\n\n\n\n(b) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following, if applicable, to provide\nsafety during maintenance and operations.\n(5) Starting up and shutting down any part of the pipeline in a manner designed\nto assure operations within the MAOP limits prescribed by this part, plus the\nbuild-up allowed for operation of pressure limiting and control devices.\nNGPL failed to document set points of pressure limiting and control devices designed to\nassure operating pressures are within the MAOP limits prescribed by Part 192, plus the\nbuildup allowed for operation of pressure limiting and control devices. At NGPL Station\n300, an inspection of overpressure protection devices was conducted on October 1, 2014,\nbut the MAXIMO work order records did not include documentation of device set points.\n5. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed and\nupdated by the operator at intervals not exceeding 15 months, but at least once each\ncalendar year. This manual must be prepared before operations of a pipeline system\ncommence. Appropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\n(b) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following, if applicable, to provide\nsafety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance with\neach of the requirements of this subpart and subpart M of this part.\nNGPL personnel failed to follow their manual for operations and maintenance activities. Kinder\nMorgan’s O&M Procedure O&M 301 Inspecting and Servicing Emergency Valves states that\nthey are to “Inspect and service pipeline valves at least once each calendar year, at intervals not\nto exceed 15 months.” Section 5 Documentation, states “Keep records indicating the servicing\ndates, and valve and components condition on O&M Form OM300-01 – Automatic Valve\nService Report, O&M Form OM300-02-Appurtenance Inspection Service Report, O&M Form\n300-03-Valve Inspection Report, or capture the same data in the I&M Program database as your\ndocumentation.”\nA review of the MAXIMO work orders for the Kinder Morgan’s Valve –Natural Gas Service did\nnot include valve and components conditions on the form. It was identified that there were 553\nvalves records that did not have the valve and components condition noted on the form, as\nrequired by Kinder Morgan’s procedures.\n4\n\n\n\nThe evidence demonstrates that the operator violated § 192.605(a) by failing to perform the\nvalve inspections as described in their procedures. In the event that such inspections were, in\nfact, performed, the evidence demonstrates the operator violated §192.709(c) by failing to\nmaintain a record of each inspection and test required by subpart L and M.\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 $131,000 as follows:\nItem number PENALTY\n3 $27,900\n5 $103,100\nWarning Items\nWith respect to items 1 and 2, we have reviewed the circumstances and supporting documents\ninvolved in this case and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to promptly correct these items. Failure to\ndo so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to items 4 and 5 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Natural Gas\nPipeline Company of America. Please refer to the Proposed Compliance Order, which is\nenclosed and 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 submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice, this\n5\n\n\n\nconstitutes 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 4-2016-1011 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\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n6\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 Natural Gas Pipeline Company of America\n(NGPL) a Compliance Order incorporating the following remedial requirements to ensure the\ncompliance of Natural Gas Pipeline Company of America with the pipeline safety regulations:\n1. In regard to Item Number 4 of the Notice pertaining to the failure to document the\nset points of pressure-limiting and control devices during inspections of\noverpressure protection devices to assure operating pressures are maintained\nwithin the MAOP limits:\na. NGPL must provide training to field personnel to ensure inspections are\nproperly and completely documented in accordance with procedures and the\nusage of the work management system (MAXIMO).\nb. Provide documentation of the training personnel received. Also provide the\nnames and dates of when the training was completed for the individuals who\nwould be performing and documenting the inspections of pressure-limiting\nand control device set points.\n2. In regard to Item Number 5 of the Notice pertaining to the failure to follow the\nmanual for operations and maintenance, specifically inspecting emergency valves.\na. NGPL must provide training to field personnel to ensure emergency valve\ninspections are properly conducted and documented, as per Kinder Morgan’s\nO&M Procedure, O&M 301Inspection and Servicing Emergency Valves.\nb. Provide documentation of the training personnel received. Also provide the\nnames and dates of when the training was completed for the individuals who\nwould be performing and documenting the inspection of emergency valves,\nand more specifically to document valve and component’s conditions and\nwhether the valve was partially or fully operated successfully.\n3. NGPL shall complete Items 1 and 2 above with 60 days after receipt of the Final\n4. Order.\nIt is requested (not mandated) that Natural Gas Pipeline Company of America\nmaintain documentation of the safety improvement costs associated with fulfilling\nthis Compliance Order and submit the total to 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\ninfrastructure.\n7\n\n420161011_Closure Letter_04242019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 24, 2019\nSteven J. Kean\nPresident and Chief Executive Officer\nKinder Morgan, Inc.\n1001 Louisiana Street\nHouston, Texas 77002\nCPF 4-2016-1011\nDear Mr. Kean:\nOn October 24, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Natural Gas Pipeline Company of America, LLC a Final Order in the above-referenced\ncase. This Order included a Compliance Order and Civil Penalty assessment.\nBased on our review of the documentation you provided and confirmation of payment of the civil\npenalty on December 14, 2016, it has been determined that you have complied with the terms of\nthis Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420161011_Final Order_10242017_text.pdf\n\nOctober 24, 2017\nMr. Steven J. Kean\nPresident and Chief Executive Officer\nKinder Morgan, Inc.\n1001 Louisiana Street\nHouston, TX 77002\nRe: CPF No. 4-2016-1011\nDear Mr. Kean:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $131,000, and specifies actions that need to be taken by\nNatural Gas Pipeline Company of America, LLC, which is jointly owned by Kinder Morgan, Inc.\nand Brookfield Infrastructure Partners, LP, to comply with the pipeline safety regulations. This is\nto acknowledge receipt of payment of the full penalty amount, by wire transfer, dated December\n14, 2016. When the terms of the compliance order have been completed, as determined by the\nDirector, Southwest Region, this enforcement action will be closed. Service of the Final Order\nby certified mail is effective as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Tom Martin, President, Natural Gas Pipeline Group, Kinder Morgan, Inc.\nMr. Kenneth W. Grubb, Chief Operating Officer, Natural Gas Pipeline Group, Kinder\nMorgan, Inc.\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 )\nNatural Gas Pipeline Company of ) CPF No. 4-2016-1011\nAmerica, LLC, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn multiple occasions between March 9 and September 18, 2015, pursuant to 49 U.S.C.\n§ 60117, representatives of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of\nthe facilities and records of Natural Gas Pipeline Company of America, LLC (NGPL or\nRespondent), in Texas, Oklahoma, Arkansas, and Illinois. NGPL’s East System transports\nnatural gas and extends from south Texas to northern Illinois.1 The system consists of\napproximately 4,312 miles with 24 compressor stations, 4 storage fields, and 12 navigable water\ncrossings. NGPL is jointly owned by Kinder Morgan, Inc. (Kinder Morgan), and Brookfield\nInfrastructure Partners LP, and is operated by Kinder Morgan, Inc.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated October 28, 2016, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to\n49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nNGPL had committed three violations of 49 C.F.R. Part 192 and proposed assessing a civil\npenalty of $131,000 for the alleged violations. The Notice also proposed ordering Respondent to\ntake certain measures to correct two of the alleged violations. The warning items required no\nfurther action, but warned the operator to correct the probable violations or face future potential\nenforcement action.\nNGPL responded to the Notice by letter dated December 7, 2016 (Response). The company did\nnot contest the allegations of violation and paid the proposed civil penalty of $131,000 via wire\n1 Pipeline Safety Violation Report (Violation Report), (October 27, 2016) (on file with PHMSA), at 1.\n2 NGPL website, available at\nhttps://www.kindermorgan.com/pages/business/gas pipelines/central/NGPL/default.aspx (last accessed August 31,\n2017).\n\n\n\nCPF No. 4-2016-1011\nPage 2\ntransfer and agreed to complete the proposed compliance actions.3 In accordance with 49 C.F.R.\n§ 190.208(a)(1), such payment authorizes the Associate Administrator to make findings of\nviolation and to issue this final order. Respondent did not request a hearing and therefore has\nwaived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, NGPL did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n192, as follows:\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b), which states:\n§ 192.603 General provisions.\n(a) . . .\n(b) Each operator shall keep records necessary to administer the\nprocedures established under § 192.605.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records\nnecessary to administer the procedures established under § 192.605. Section 192.605(b)(1)\nrequires that an operator’s written manual include applicable procedures for “[o]perating,\nmaintaining, and repairing the pipeline in accordance with each of the requirements of [subpart\nL] and subpart M of [Part 192].” Specifically, the Notice alleged that NGPL failed to document\nthat valves necessary during an emergency were partially operated during NGPL’s inspections of\nemergency valves.4 NGPL inspection forms include check boxes for inspectors to indicate\nwhether valves were lubricated and operated. The Notice further alleged that Kinder Morgan’s\nOperations and Maintenance (O&M) Procedure, O&M 301, Inspecting and Servicing Emergency\nValves, directed personnel to “operate valves fully whenever possible; otherwise, partial\noperation is acceptable.” In reviewing the valve inspection records, the PHMSA inspector noted\nthere were 21 emergency valves that were not partially operated in 2013 and 12 emergency\nvalves that were not partially operated in 2012. Additionally, there were two locations that did\nnot indicate any operation of the valves in both 2012 and 2013.\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. § 192.603(b) by failing to keep\nrecords necessary to administer the procedures established under § 192.605.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b), which states:\n§ 192.603 General provisions.\n(a) . . .\n(b) Each operator shall keep records necessary to administer the\nprocedures established under § 192.605.\n3 NGPL requested Item 2 be withdrawn from the Final Order. “An adjudication . . . to determine whether a\nviolation occurred is not conducted for warnings.” 49 C.F.R. § 190.205. Therefore, Item 2 is a Warning Item that\nrequires no further action.\n4 Operators are required to inspect emergency valves in accordance with 49 C.F.R. § 192.745.\n\n\n\nCPF No. 4-2016-1011\nPage 3\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records\nnecessary to administer the procedures established under § 192.605. Section 192.605(b)(5)\nrequires that an operator’s written manual include applicable procedures for “[s]tarting up and\nshutting down any part of the pipeline in a manner designed to assure operations within the\n[Maximum Allowable Operating Pressure (MAOP)] limits prescribed by [Part 192, subpart L],\nplus the build-up allowed for operation of pressure-limiting and control devices.” Specifically,\nthe Notice alleged that NGPL failed to document set points of pressure-limiting and control\ndevices designed to assure operating pressures were within the MAOP limits prescribed in Part\n192, plus the build-up allowed for operation of pressure-limiting and control devices. An\ninspection of overpressure protection devices was conducted on October 1, 2014, at NGPL\nStation 300. However, NGPL’s work management system (MAXIMO) work order records did\nnot include documentation of device set points.\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. § 192.603(b) by failing to keep\nrecords necessary to administer the procedures established under § 192.605.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline,\na manual of written procedures for conducting operations and maintenance\nactivities and for emergency response. For transmission lines, the manual\nmust also include procedures for handling abnormal operations. This\nmanual must be reviewed and updated by the operator at intervals not\nexceeding 15 months, but at least once each calendar year. This manual\nmust be prepared before operations of a pipeline system commence.\nAppropriate parts of the manual must be kept at locations where operations\nand maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to prepare and\nfollow for each pipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response. Specifically, the Notice alleged that NGPL\nfailed to perform the valve inspections in accordance with its own procedures. Kinder Morgan’s\nO&M Procedure, O&M 301, Inspecting and Servicing Emergency Valves, states that personnel\nare to “inspect and service pipeline valves at least once each calendar year, at intervals not to\nexceed 15 months.” Section 5, Documentation, of the same procedure directs personnel to “keep\nrecords indicating the servicing dates, and valve and components condition on O&M Form\nOM300-01 – Automatic Valve Service Report, O&M Form OM300-02 – Appurtenance\nInspection Service Report, O&M Form 300-03 – Valve Inspection Report, or capture the same\ndata in the I&M Program database as your documentation.”\nA review of the MAXIMO work orders for NGPL’s Valve-Natural Gas Service did not show\nvalve and components conditions on the form. The PHMSA inspector identified 553 valves\nrecords that did not have the valve and components condition noted on the form, as required by\nKinder Morgan’s own procedures.\n\n\n\nCPF No. 4-2016-1011\nPage 4\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. § 192.605(a) by failing to prepare and\nfollow for each pipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken 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.5 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 $131,000 for the violations cited above.\nItem 3: The Notice proposed a civil penalty of $27,900 for Respondent’s violation of 49 C.F.R.\n§ 192.603(b), for failing to keep records necessary to administer the procedures established\nunder § 192.605. NGPL neither contested the allegation nor presented any evidence or argument\njustifying elimination or reduction of the proposed penalty. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $27,900 for\nviolation of 49 C.F.R. § 192.603(b). Payment for this Item was received by wire transfer on\nDecember 14, 2016.\nItem 5: The Notice proposed a civil penalty of $103,100 for Respondent’s violation of\n49 C.F.R. § 192.605(a), for failing to prepare and follow for each pipeline, a manual of written\nprocedures for conducting operations and maintenance activities and for emergency response.\nNGPL neither contested the allegation nor presented any evidence or argument justifying\nelimination or reduction of the proposed penalty. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $103,100 for violation\nof 49 C.F.R. § 192.605(a). Payment for this Item was also received by wire transfer on\nDecember 14, 2016.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 4 and 5 in the Notice for\n5 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum\nCivil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\n\n\n\nCPF No. 4-2016-1011\nPage 5\nviolations of 49 C.F.R. §§ 192.603(b) and 192.605(a), 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 § 192.603(b) (Item 4), Respondent must provide\ntraining to field personnel to ensure inspections are properly and completely\ndocumented in accordance with procedures and the usage of the work\nmanagement system (MAXIMO);\n2. With respect to the violation of § 192.603(b) (Item 4), Respondent must provide\ndocumentation of the training personnel received. Respondent must also provide\nthe dates of when the training was completed and the names of the individuals\nwho would be performing and documenting the inspections of pressure-limited\nand control device set points;\n3. With respect to the violation of § 192.605(a) (Item 5), Respondent must provide\ntraining to field personnel to ensure emergency valve inspections are properly\nconducted and documented, as per Kinder Morgan’s O&M Procedure, O&M 301\nInspection and Servicing Emergency Valves;\n4. With respect to the violation of § 192.605(a) (Item 5), Respondent must provide\ndocumentation of the training personnel received. Respondent must also provide\nthe dates of when the training was completed and the names of the individuals\nwho would be performing and documenting the inspections of emergency valves,\nand more specifically document valve and component conditions and whether the\nvalve was partially or fully successfully operated; and\n5. Complete Compliance Order Items 1 through 4 within 60 days following receipt\nof the Final Order.\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.\nIn addition, pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is requested (not mandated) to take the following action:\nNGPL should maintain documentation of the safety improvement costs associated\nwith fulfilling this Compliance Order and submit the total to Director, Southwest\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested that\nthese 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.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\n\n\n\nCPF No. 4-2016-1011\nPage 6\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nWARNING ITEMS\nWith respect to Items 1 and 2, the Notice alleged probable violations of Part 192 but did not\npropose a civil penalty or compliance order for these items. Therefore, these are considered to\nbe warning items. The warnings were for:\n49 C.F.R. § 192.605(a) (Item 1) ─ Respondent’s alleged failure to follow its own\nmanual of written procedures for conducting operating and maintenance activities\nand for emergency response. NGPL failed to follow Kinder Morgan’s O&M\nProcedure, O&M 1900, Emergency Response, 4. Training, in that NGPL failed to\ndocument verification of personnel’s knowledge of emergency procedures or\nverification of training effectiveness as required by the procedure; and\n49 C.F.R. § 192.605(a) (Item 2) ─ Respondent’s alleged failure to follow a\nmanual of written procedures for conducting operating and maintenance activities\nand for emergency response. NGPL failed to follow Kinder Morgan’s O&M\nProcedure, O&M 159, Emergency Reporting and Investigation, in that NGPL\nfailed to document a review of employee activities for the purpose of determining\nwhether the Emergency Plan procedures were effectively followed.\nNGPL presented information in its Response showing that it will take certain actions to address\nthe cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nOctober 24, 2017\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":34295}