{"operation":"document","citation":"CPF 420165007","title":"CRESCENT MIDSTREAM, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-04-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402, 195.413(c)(1), 195.413(c)(3), 195.55(a)(2), 195.57.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165007.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165007.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165007","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420165007","body":"Notice of Probable Violation involving CRESCENT MIDSTREAM, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402,  195.413(c)(1),  195.413(c)(3),  195.55(a)(2),  195.57. The case was opened on 2016-04-04 and is reported as closed as of 2018-06-11. Proposed civil penalty: $49,300. Assessed civil penalty: $49,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420165007_Closure Letter_06112018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Closure%20Letter_06112018.pdf\n\n420165007_Closure letter_06112018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Closure%20letter_06112018_text.pdf\n\n420165007_Final Order_12272016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Final%20Order_12272016.pdf\n\n420165007_Final Order_12272016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Final%20Order_12272016_text.pdf\n\n420165007_NOPV PCP PCO_04042016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_NOPV%20PCP%20PCO_04042016.pdf\n\n420165007_NOPV PCP PCO_04042016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_NOPV%20PCP%20PCO_04042016_text.pdf\n\n420165007_Closure letter_06112018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 11, 2018\nLarry Alexander\nPresident\nCrimson Gulf, LLC\n263 Trinity Lane\nGray, LA 70359\nCPF 4-2016-5007\nDear Mr. Alexander:\nOn December 27, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Crimson Gulf, LLC (Crimson) a Final Order in the above-referenced case. This Final\nOrder included a Compliance Order and Civil Penalty. Based on our review of the documentation\nyou provided and the payment of the Civil Penalty, it has been determined that you have complied\nwith 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,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420165007_Final Order_12272016_text.pdf\n\nDecember 27, 2016\nMr. Larry Alexander\nPresident\nCrimson Gulf, LLC\n263 Trinity Lane\nGray, LA 70359\nRe: CPF No. 4-2016-5007\nDear Mr. Alexander:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolations, assesses a civil penalty of $49,300, and specifies actions that need to be taken by\nCrimson Gulf, LLC to comply with the pipeline safety regulations. The penalty payment terms\nare set forth in the Final Order. When the civil penalty has been paid and the terms of the\ncompliance order completed, as determined by the Director, Southwest Region, this enforcement\naction will be closed. Service of the Final Order by certified mail is deemed effective upon the\ndate of mailing, or as otherwise 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: Mr. R.M. Seeley, Director, Southwest Region, OPS\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)\nCrimson Gulf, LLC, ) CPF No. 4-2016-5007\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom March 2015 through July 2015, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline 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 Crimson\nGulf, LLC (Crimson or Respondent) in Houma, Louisiana and in Crimson’s Delta offshore\npipeline system. Respondent, an affiliate of Crimson Pipeline, LLC, is engaged in the\ntransportation of crude oil through approximately 500 miles of pipeline.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 4, 2016, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Crimson had committed various violations of 49 C.F.R. Part 195\nand proposed assessing a civil penalty of $49,300 for the alleged violations. The Notice also\nproposed ordering Respondent to take certain measures to correct the alleged violations.2\nRespondent failed to respond within 30 days of receipt of service of the Notice. Under 49 C.F.R.\n§ 190.209(c), such failure to respond constitutes a waiver of Crimson’s right to contest the\nallegations in the Notice and authorizes the Associate Administrator, without further notice, to\nfind facts as alleged in the Notice and to issue this Final Order under § 190.213. In this case, the\nNotice was mailed to Respondent by certified mail (USPS Article No.\n9590940303045155018023) on April 7, 2016, and was received by Respondent on April 11,\n2016, as shown by the return receipt on file with PHMSA. To date, Respondent has not\nacknowledged or responded to the Notice. Under such circumstances, I find it reasonable and\n1 Crimson Gulf, LLC, website, available at http://www.crimsonpl.com/gulf/index htm# (last accessed September 19,\n2016).\n2 The Notice was issued in conjunction with a separate Notice of Amendment (CPF No. 4-2016-5008M). An Order\nDirecting Amendment in that case is being issued separately.\n\n\n\nCPF No. 4-2016-5007\nPage 2\nappropriate to enter this Final Order without further proceedings.3\nFINDINGS OF VIOLATION\nCrimson did not contest the allegations in the Notice that it violated 49 C.F.R. Part 195, as\nfollows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.55(a)(2), which states:\n§ 195.55 Reporting safety-related conditions.\n(a) Except as provided in paragraph (b) of this section, each operator\nshall report in accordance with §195.56 the existence of any of the\nfollowing safety-related conditions involving pipelines in service:\n. . . .\n(2) Unintended movement or abnormal loading of a pipeline by\nenvironmental causes, such as an earthquake, landslide, or flood, that\nimpairs its serviceability.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.55(a)(2) by failing to report the\nexistence of a safety-related condition due to unintended movement of Crimson’s 12-inch\noffshore Pompano Pipeline (Pompano Pipeline). Specifically, the Notice alleged that Crimson\nfailed to report the safety-related condition that occurred after erosion caused the Pompano\nPipeline to sink. As a result of the erosion, a portion of the Pompano Pipeline was suspended\nwithout adequate support. On January 24, 2013, Respondent performed an underwater\ninspection of the Pompano Pipeline, which indicated that the pipeline was at a water depth of ten\nfeet. On May 23, 2014, Respondent performed another underwater inspection, which indicated\nthat the pipeline was at a depth of 15 feet and, accordingly, had been subject to unintended\nmovement. Respondent did not report the safety-related condition. Respondent did not contest\nthis allegation of violation. Accordingly, based upon a review of all of the evidence, I find that\nRespondent violated 49 C.F.R. § 195.55(a)(2) by failing to report a safety-related condition: the\nsinking of the Pompano Pipeline.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.57 (2015),4 which states in\nrelevant part:\n§ 195.57 Filing offshore pipeline condition reports.\n(a) Each operator shall, within 60 days after completion of the\n3 In the Matter of Tampa Pipeline Corp., Final Order (CPF No. 2-2008-6002) (Apr. 26, 2010), 2010 WL 6531627,\n(D.O.T.); see also, In the Matter of Tampa Bay Pipeline Corp., Final Order (CPF No. 2-2005-6012 (Dec. 1, 2006),\n2008 WL 902910) (D.O.T.). PHMSA final orders are generally accessible on the agency’s website, available at\nhttp://primis.phmsa.dot.gov/comm/reports/enforce/Actions.\n4 49 C.F.R. § 195.57 was in effect at the time Respondent completed its underwater pipeline inspections and during\nPHMSA’s inspection. Part 195 was subsequently amended, effective October 1, 2015, removing § 195.57. 80 Fed.\nReg. 12762, 12780 (March 11, 2015).\n\n\n\nCPF No. 4-2016-5007\nPage 3\ninspection of all its underwater pipelines subject to § 195.413(a), report\nthe following information:\n(1) Name and principal address of operator.\n(2) Date of report.\n(3) Name, job title, and business telephone number of person\nsubmitting the report.\n(4) Total number of miles (kilometers) of pipeline inspected.\n(5) Length and date of installation of each exposed pipeline segment,\nand location; including, if available, the location according to the Minerals\nManagement Service or state offshore area and block number tract.\n(6) Length and date of installation of each pipeline segment, if\ndifferent from a pipeline segment identified under paragraph (a)(5) of this\nsection, that is a hazard to navigation, and the location; including, if\navailable, the location according to the Minerals Management Service or\nstate offshore area and block number tract.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.57 (2015) by failing to file offshore\npipeline condition reports within 60 days after completion of the pipeline inspections.\nSpecifically, the Notice alleged that Crimson performed three underwater inspections of its\nPompano Pipeline on January 24, 2013, May 23, 2014, and June 5, 2014. Crimson failed to file\noffshore condition reports to PHMSA within 60 days of completing the three inspections.\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. § 195.57 (2015) by failing to file\noffshore pipeline condition reports within 60 days after completion of three pipeline inspections.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.402, which states in\nrelevant part:\n§ 195.402 Procedural manual for operations, maintenance, and emergencies.\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. . . .\n. . . .\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following to\nprovide safety during maintenance and normal operations:\n. . . .\n(13) Periodically reviewing the work done by operator personnel to\ndetermine the effectiveness of the procedures used in normal operation\nand maintenance and taking corrective action where deficiencies are\nfound.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402 by failing to prepare and\nfollow written procedures for periodically reviewing the work done by Crimson’s personnel to\ndetermine the effectiveness of the procedures used in normal operation and maintenance and\n\n\n\nCPF No. 4-2016-5007\nPage 4\ntaking corrective action where deficiencies are found. Specifically, the Notice alleged that,\nduring its inspection of Crimson, PHMSA requested a copy of the procedure that Crimson was\nrequired to maintain under 49 C.F.R. § 195.402(c)(13). Crimson informed PHMSA that no such\nprocedure existed. Respondent did not contest this allegation of violation. Accordingly, based\nupon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.402 by\nfailing to prepare and follow written procedures for periodically reviewing the work done by\nCrimson’s personnel to determine the effectiveness of the procedures used in normal operation\nand maintenance and taking corrective action where deficiencies are found.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. § 195.413(c)(3), which states:\n§ 195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico\nand its inlets.\n(a) . . . .\n(c) If an operator discovers that its pipeline is an exposed underwater\npipeline or poses a hazard to navigation, the operator shall—\n(3) Within 6 months after discovery, or not later than November 1 of\nthe following year if the 6 month period is later than November 1 of the\nyear of discovery, bury the pipeline so that the top of the pipe is 36 inches\n(914 millimeters) below the underwater natural bottom (as determined by\nrecognized and generally accepted practices) for normal excavation or 18\ninches (457 millimeters) for rock excavation.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.413(c)(3) on two separate\noccasions by failing to place its Pompano Pipeline so that the top of the pipeline is 36 inches\nbelow the underwater natural bottom within six months of discovering that the Pompano Pipeline\nwas exposed underwater. Specifically, the Notice alleged that Crimson performed an underwater\ninspection of the Pompano Pipeline on January 24, 2013. The inspection indicated that the\npipeline was exposed underwater at less than 15 feet in depth at four points. On May 23, 2014,\nand June 5, 2014, Crimson performed further underwater inspections of the Pompano Pipeline.\nThe later inspections also indicated that the pipeline was exposed and suspended without\nadequate support, and indicated that the pipeline had undergone unintended movement that could\nadversely affect safe operation. PHMSA requested, and Crimson failed to provide,\ndocumentation indicating that the underwater exposures, unsupported suspension, and\nunintended movement were corrected pursuant to 49 C.F.R. § 195.413. Respondent did not\ncontest this allegation of violation. Accordingly, based upon a review of all of the evidence, I\nfind that Respondent violated 49 C.F.R. § 195.413(c)(3) on two separate occasions by failing to\nplace its Pompano Pipeline so that the top of the pipeline is 36 inches below the underwater\nnatural bottom within six months of discovering that the Pompano Pipeline was exposed\nunderwater.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n\n\n\nCPF No. 4-2016-5007\nPage 5\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. In determining the amount of a civil penalty under\n49 U.S.C. § 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 $49,300 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $30,400 for Respondent’s violation of\n49 C.F.R. § 195.55(a)(2), for failing to report the existence of a safety-related condition due to\nunintended movement of Crimson’s Pompano Pipeline. Crimson neither contested the allegation\nnor presented any evidence or argument justifying a reduction in the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $30,400 for violation of 49 C.F.R. § 195.55(a)(2).\nItem 2: The Notice proposed a civil penalty of $18,900 for Respondent’s violation of\n49 C.F.R. § 195.57 (2015), for failing to file offshore pipeline condition reports within 60 days\nafter completion of pipeline inspections on the Pompano Pipeline. Crimson neither contested the\nallegation nor presented any evidence or argument justifying a reduction in the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $18,900 for violation of 49 C.F.R. § 195.57 (2015).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $49,300.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S Macarthur Blvd, Oklahoma City, OK 79169. The\nFinancial Operations Division telephone number is (405) 954-8845.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, 3, and 5 in the Notice for\nviolations of 49 C.F.R. §§ 195.55, 195.57 (2015), 195.402, and 195.413(c)(3), respectively.\nPursuant to the removal of 49 C.F.R. § 195.57, effective October 1, 2015, the compliance order\naddressing Item 2 is hereby withdrawn. Under 49 U.S.C. § 60118(a), each person who engages\n\n\n\nCPF No. 4-2016-5007\nPage 6\nin the transportation of hazardous liquids or who owns or operates a pipeline facility is required\nto comply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations:\n1. 2. 3. 4. With respect to the violation of 49 C.F.R. § 195.55(a)(2) (Item 1), Respondent\nmust file a report with PHMSA documenting the existence of a safety-related\ncondition due to unintended movement of Crimson’s Pompano Pipeline, must\ncorrect the unsafe conditions created by the suspension of a portion of the pipeline\nwithout support, and must perform an underwater inspection of the Pompano\nPipeline to ensure the continued safe operation of the pipeline. Respondent must\nprovide documentation to PHMSA demonstrating completion of the corrective\nactions and a report detailing the results of the underwater inspection.\nWith respect to the violation of 49 C.F.R. § 195.402 (Item 3), Respondent must\ndevelop and implement written procedures for periodically reviewing the work\ndone by Crimson’s personnel to determine the effectiveness of the procedures\nused in normal operation and maintenance and taking corrective action where\ndeficiencies are found.\nWith respect to the violation of 49 C.F.R. § 195.413(c)(3) (Item 5), Respondent\nmust file documentation with PHMSA indicating that the underwater exposures,\nunsupported suspension, and unintended movement of the Pompano Pipeline were\ncorrected pursuant to 49 C.F.R. § 195.413. Respondent must correct the unsafe\nconditions created by the underwater exposures, unsupported suspension, and\nunintended movement, and must perform an underwater inspection of the\nPompano Pipeline to ensure the continued safe operation of the pipeline.\nRespondent must provide documentation to PHMSA demonstrating completion of\nthe corrective actions and a report detailing the results of the underwater\ninspection.\nRespondent must complete the required actions within 30 days of this Final\nOrder.\nIt is requested (not mandated) that Crimson Gulf maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to R.M.\nSeeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. It\nis requested that these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes 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.\n\n\n\nCPF No. 4-2016-5007\nPage 7\nFailure to comply with this Compliance Order may result in the administrative assessment of\ncivil penalties not to exceed $200,000 for each violation for each day the violation continues or\nin referral to the Attorney General for appropriate relief in a district court of the United States.\nWARNING ITEM\nWith respect to Item 4, the Notice alleged probable violations of 49 C.F.R. § 195.413(c)(1), but\ndid not propose a civil penalty or compliance order for this item. Therefore, this is considered to\nbe a warning item. The warning was for:\n49 C.F.R. § 195.413(c)(1) (Item 4) ─ Respondent’s failure to notify the National\nResponse Center within 24 hours of discovering that Crimson’s Pompano Pipeline\nwas exposed underwater.\nIf OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject\nto future enforcement action.\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. Under\n49 C.F.R. § 190.243, Respondent has a right to submit a Petition for Reconsideration of this\nFinal Order. The petition must be sent to: Associate Administrator, Office of Pipeline Safety,\nPHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a\ncopy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA will accept\npetitions received no later than 20 days after receipt of service of this Final Order by the\nRespondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays the payment of\nany civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all\nother terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nDecember 27, 2016\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420165007_NOPV PCP PCO_04042016_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nAND\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 4, 2016\nMr. Larry Alexander\nPresident\nCrimson Gulf, LLC\n263 Trinity Lane\nGray, LA 70359\nCPF 4-2016-5007\nDear Mr. Alexander:\nOn March 2015 to July 2015, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code inspected your procedures, records and offshore pipeline facilities.\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. §195.55 Reporting Safety-related conditions.\n(a) Except as provided in paragraph (b) of this section, each operator shall report in\naccordance with §195.56 the existence of any of the following safety-related conditions\ninvolving pipelines in service:\n(2) Unintended movement or abnormal loading of a pipeline by environmental causes,\nsuch as an earthquake, landslide, or flood that impairs its serviceability.\nCrimson Gulf failed to report in accordance with §195.56 the existence of a safety related\ncondition due to unintended movement that involved their offshore, 12-inch Pompano Pipeline.\nSpecifically, Crimson Gulf failed to report a safety related condition that occurred when erosion\ncaused their 12-inch Pompano Pipeline to sink, and leaving a portion of the line suspended\nwithout adequate support.\nCrimson performed an underwater inspection of their 12-inch Pompano Pipeline on January 24,\n2013, as shown on their Depth of Cover Survey map. Crimson Gulf’s survey indicated the\npipeline was at a water depth of ten feet. In May 23, 2014, Crimson Gulf performed another\nunderwater inspection. The survey indicated the pipeline had unintended movement and sank to\n15 feet.\n2. §195.57 Filing offshore pipeline condition reports.\n(a) Each operator shall, within 60 days after completion of the inspection of all its\nunderwater pipelines subject to § 195.413(a), report the following information:\n(1) Name and principal address of operator.\n(2) Date of report.\n(3) Name, job title, and business telephone number of person submitting the report.\n(4) Total number of miles (kilometers) of pipeline inspected.\n(5) Length and date of installation of each exposed pipeline segment, and location;\nincluding, if available, the location according to the Minerals Management Service or\nstate offshore area and block number tract.\n(6) Length and date of installation of each pipeline segment, if different from a pipeline\nsegment identified under paragraph (a)(5) of this section, that is a hazard to navigation,\nand the location; including, if available, the location according to the Minerals\nManagement Service or state offshore area and block number tract.\nCrimson Gulf failed to file an offshore pipeline condition report within 60 days after they\ncompleted inspection of their underwater 12-inch Pompano Pipeline.\nCrimson Gulf performed an underwater inspection of their 12-inch Pompano Pipeline on January\n24, 2013 as shown on their Depth of Cover Survey map. Crimson then performed another\nunderwater inspection of their Pompano Pipeline in May 23, 2014 and June 5, 2014. Crimson\nfailed to file their offshore condition reports to PHMSA within 60 days of completing their\nunderwater condition inspection reports on both instances.\n2\n\n\n\n3. §195.402 Procedural Manual for Operations, Maintenance, and Emergencies\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(13) Periodically reviewing the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance and taking\ncorrective action where deficiencies are found.\nCrimson Gulf did not have procedures for periodically reviewing the work done by the operator's\npersonnel to determine the effectiveness of the procedures used in normal operation and\nmaintenance, and taking corrective action where deficiencies are found.\nWhen the PHMSA representative requested to review the procedure, Crimson Gulf\nrepresentative stated there was no procedure.\n4. §195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico and its\ninlets.\n(c) If an operator discovers that its pipeline is an exposed underwater pipeline or poses\na hazard to navigation, the operator shall—\n(1) Promptly, but not later than 24 hours after discovery, notify the National Response\nCenter, telephone: 1-800-424-8802, of the location and, if available, the geographic\ncoordinates of that pipeline.\nCrimson Gulf failed to notify the National Response Center within 24 hours, after they\ndiscovered its pipeline was exposed underwater.\nCrimson Gulf performed an underwater inspection of their 12-inch Pompano Pipeline on January\n24, 2013 as shown on their Depth of Cover Survey map. Crimson Gulf’s survey indicated the\npipeline was exposed underwater in less than 15 feet in depth. The exposed section of pipeline\nwas reported to the National Response Center on May 19, 2014 (NRC report 1083239) when\nCrimson discovered another exposure nearby. Crimson needed to notify the National Response\nCenter by January 25, 2013, of their discovery of exposed pipeline found during the 2013\nunderwater inspection.\n5. §195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico and its\ninlets.\n(c) If an operator discovers that its pipeline is an exposed underwater pipeline or poses\na hazard to navigation, the operator shall—\n(3) Within 6 months after discovery, or not later than November 1 of the year that the\ndiscovery is made, place the pipeline so that the top of the pipe is 36 inches (914\nmillimeters) below the underwater natural bottom (as determined by recognized and\ngenerally accepted practices) for normal excavation or 18 inches (457 millimeters) for\nrock excavation\n3\n\n\n\nCrimson Gulf failed to place their 12 inch Pompano Pipeline so that the top of the pipe is 36\ninches below the underwater natural bottom, within 6 months after they discovered portion of the\nPompano Pipeline was exposed underwater on two separate occasions.\nCrimson Gulf performed an underwater inspection of their 12-inch Pompano Pipeline on January\n24, 2013 as shown on their Depth of Cover Survey map. Crimson Gulf’s survey indicated the\npipeline was exposed underwater in less than 15 feet in depth at point numbers 36, 37, 38, and\n42. Crimson then performed another underwater inspection of their Pompano Pipeline in May\n23, 2014 and June 5, 2014 and indicated exposed and suspended pipe without adequate support.\nThe 2014 survey also indicated unintended movement that could adversely affect the safe\noperation of the pipeline, occurred at point numbers 108, 120, 121, and 122.\nCrimson Gulf did not provide to PHMSA, documentation showing the exposures, suspended\nportion and unintended movement of the pipeline had been rectified.\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 $49,300 as follows:\nItem number PENALTY\n1 $30,400\n2 $18,900\nWarning Items\nWith respect to item 4, we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct these item(s). Failure to do so may\nresult in additional enforcement action.\nProposed Compliance Order\nWith respect to items 1, 2, 3, and 5, pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Crimson\nGulf LLC. Please refer to the Proposed Compliance Order, which is enclosed and made a part\nof this Notice.\n4\n\n\n\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 you submit in response to this enforcement action may be made publicly available. If\nyou believe that any portion of your responsive material qualifies for confidential treatment\nunder 5 U.S.C. 552(b), along with the complete original document you must provide a second\ncopy of the document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice,\nthis constitutes 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 4-2016-5007 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\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n5\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 Crimson Gulf, LLC a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of Crimson Gulf,\nLLC with the pipeline safety regulations:\n1. 2. 3. 4. In regard to Item Numbers 1, 2, and 5 of the Notice pertaining to the safety related\ncondition and exposed pipeline, Crimson Gulf must file the DOT/PHMSA\nrequired reports; correct the unsafe conditions and provide documentation to\ndemonstrate completion; and perform an underwater inspection of the pipeline to\nensure the continued safe operation of the pipeline.\nIn regard to Item Number 3 of the Notice pertaining to not having procedures for\nperiodically reviewing the work done by the operator’s personnel to determine the\neffectiveness of the procedure used, Crimson Gulf must develop and implement a\nprocedure.\nPertaining to items above of the Proposed Compliance Order, Crimson Gulf must\ncomplete the required orders within 30 days of the Compliance Order.\nIt is requested (not mandated) that Crimson Gulf maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to R.M. Seeley, Director, Southwest Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n6","truncated":false,"body_characters":34106}