{"operation":"document","citation":"CPF 420161012","title":"OZARK GAS TRANSMISSION, L.L.C — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-11-03","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.605(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420161012","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420161012","body":"Notice of Probable Violation involving OZARK GAS TRANSMISSION, L.L.C. PHMSA's enforcement data identifies the cited regulation as 192.605(a). The case was opened on 2016-11-03 and is reported as closed as of 2018-01-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420161012_Closure Letter_01082018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_Closure%20Letter_01082018.pdf\n\n420161012_Closure Letter_01082018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_Closure%20Letter_01082018_text.pdf\n\n420161012_Final Order_06272017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_Final%20Order_06272017.pdf\n\n420161012_Final Order_06272017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_Final%20Order_06272017_text.pdf\n\n420161012_NOPV PCO_11032016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_NOPV%20PCO_11032016.pdf\n\n420161012_NOPV PCO_11032016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_NOPV%20PCO_11032016_text.pdf\n\n420161012_Operator Response to Notice_12162016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420161012/420161012_Operator%20Response%20to%20Notice_12162016.pdf\n\n420161012_Closure Letter_01082018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 8, 2018\nMichelle Harradence\nVice President Gas Transmission & Midstream Operations\nOZARK Gas Transmission, LLC\n5400 Westheimer Court\nHouston, Texas 77056\nCPF 4-2016-1012\nDear Ms. Harradence:\nOn June 27, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Ozark Gas Transmission, LLC a Final Order in the above-referenced case. This Order included\na Compliance Order with the requirement to amend your procedures. Based on our review of the\ndocumentation you provided on December 27, 2017, it has been determined that you have\ncomplied with the terms of this 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,\nTerri. J. Binns\nActing Director, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420161012_Final Order_06272017_text.pdf\n\nJune 27, 2017\nMr. William T. Yardley\nPresident and CEO\nSpectra Energy Partners, LP\n5400 Westheimer Court\nHouston, Texas 77056\nRe: CPF No. 4-2016-1012\nDear Mr. Yardley:\nEnclosed please find the Final Order issued in the above-referenced case. It makes one finding\nof violation and specifies actions that need to be taken by your subsidiary, Ozark Gas\nTransmission, LLC, to comply with the pipeline safety regulations. When the terms of the\ncompliance order have been completed, as determined by the Director, Southwest Region, this\nenforcement action will be closed. Service of the Final Order by certified mail is effective as\nprovided 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. Rick Kivela, Ozark Gas Transmission, LLC, Director of Operational Compliance,\nSpectra Energy Partners, LP, 5400 Westheimer Court, Houston, Texas 77056\nMr. Al Monaco, Enbridge Inc., President and CEO, 200 Fifth Avenue Place, 425-1st\nStreet SW, Calgary, Alberta, Canada T2P 3L8\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 )\n)\n)\nOzark Gas Transmission, LLC, )\na subsidiary of Spectra Energy Partners, LP, )\nRespondent. )\n__________________________________________)\n) CPF No. 4-2016-1012\nFINAL ORDER\nFrom April 11, 2016, to September 8, 2016, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Ozark Gas\nTransmission, LLC (Ozark or Respondent), in Oklahoma and Arkansas. Ozark, a subsidiary of\nSpectra Energy Partners, LP, operates a 366-mile gas pipeline system that extends from\nsoutheastern Oklahoma through Arkansas to southeastern Missouri.\n1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated November 3, 2016, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Ozark had violated 49 C.F.R. § 192.605(a) and ordering Respondent to take certain\nmeasures to correct the alleged violation.\nOn November 28, 2016, Ozark requested an extension of the 30-day response time to January 3,\n2017. PHMSA granted the request by letter dated December 6, 2016, and on December 16,\n2016, Spectra responded to the Notice on behalf of Respondent (Response). Ozark did not\ncontest the allegation of violation but provided information concerning the corrective actions it\nhad taken in response to the Notice. The company did not request a hearing and therefore has\nwaived its right to one.\n1 Ozark Gas Transmission, LLC website, available at http://www.spectraenergy.com/Operations/US-Natural-Gas-\nOperations/US-Pipelines/Ozark-Gas-Transmission/ (last accessed March 10, 2017). Effective February 27, 2017,\npursuant to a merger between Enbridge, Inc. (Enbridge), and Spectra Energy Corp., Spectra Energy Partners, LP,\nbecame a subsidiary of Enbridge Inc. Enbridge owns and operates an extensive network of crude oil, liquids and\nnatural gas pipelines, regulated natural gas distribution utilities, and renewable power generation. See Enbridge\nwebsite, available at, http://www.enbridge.com/enbridge-and-spectra (last accessed March 9, 2017).\n\n\n\nCPF No. 4-2016-1012\nPage 2\nFINDING OF VIOLATION\nIn its Response, Ozark did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states, in\nrelevant part:\n§ 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual\nof written procedures for conducting operations and maintenance activities and for\nemergency response…\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its own\nmanual of written procedures for conducting operations and maintenance activities. Specifically,\nit alleged that Ozark failed to follow its Procedure AP-CD3.0, Maximum Allowable Operating\nPressure Calculation (AP-CD 3.0), for calculating and recording the maximum allowable\noperating pressure (MAOP) on its pipeline. According to the Notice, Ozark allegedly failed to\nrecord the MAOP calculated at the time Ozark acquired the facilities in 2010 on the company’s\nMAOP Establishment Report, TS-064 (TS-064), a form required under AP-CD3.0 for all MAOP\ncalculations. The Notice also alleged that Respondent failed to follow AP-CD 3.0, Section 4,\nSupporting Documentation, which required all supporting documentation to be attached to TS-\n064 so that future users would be able to trace the origin of the MAOP and determine if changes\nwere needed.\nIn its Response, Ozark did not contest the allegation of violation and acknowledged that TS-064\nwas not completed in 2010. But Ozark contended that it did verify the MAOP at the time of\nacquisition. The company stated that it now utilizes a MAOP software application for\nperforming MAOP calculations in lieu of using TS-064 and noted that revisions to AP-CD3.0\nwere needed.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\n49 C.F.R. § 192.605(a) by failing to following its own manual of written procedures for\nconducting operations and maintenance activities.\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 1 in the Notice for the violation of\n49 C.F.R. § 192.605(a). 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\n\n\nCPF No. 4-2016-1012\nPage 3\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 § 192.605(a) (Item 1), Respondent must modify its\nmanual of written procedures to reflect the use of MAOP software in performing\nMAOP calculations and must retain the MAOP calculations and all supporting\ndocuments for the Ozark natural gas transmission system, as stated in the\nRespondent’s revised written procedures.\n2. With respect to Item 1, Respondent must provide PHMSA with confirmation and\ndocumentation of the MAOP calculation performed by the MAOP software no later\nthan 30 days from the issuance of the Final Order in this case.\n3. It is requested (not mandated) that Ozark maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to Director, Southwest Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1) total\ncost associated with preparation/revision of plans, procedures, studies, and analyses,\nand 2) total 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.\nThe terms and conditions of this Final Order are effective upon receipt of service in accordance\nwith 49 C.F.R. § 190.5.\nJune 27, 2017\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":10621}