# CRESCENT MIDSTREAM, LLC — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

420165007_Closure Letter_06112018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Closure%20Letter_06112018.pdf

420165007_Closure letter_06112018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Closure%20letter_06112018_text.pdf

420165007_Final Order_12272016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Final%20Order_12272016.pdf

420165007_Final Order_12272016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_Final%20Order_12272016_text.pdf

420165007_NOPV PCP PCO_04042016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_NOPV%20PCP%20PCO_04042016.pdf

420165007_NOPV PCP PCO_04042016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165007/420165007_NOPV%20PCP%20PCO_04042016_text.pdf

420165007_Closure letter_06112018_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
June 11, 2018
Larry Alexander
President
Crimson Gulf, LLC
263 Trinity Lane
Gray, LA 70359
CPF 4-2016-5007
Dear Mr. Alexander:
On December 27, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Crimson Gulf, LLC (Crimson) a Final Order in the above-referenced case. This Final
Order included a Compliance Order and Civil Penalty. Based on our review of the documentation
you provided and the payment of the Civil Penalty, it has been determined that you have complied
with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration

420165007_Final Order_12272016_text.pdf

December 27, 2016
Mr. Larry Alexander
President
Crimson Gulf, LLC
263 Trinity Lane
Gray, LA 70359
Re: CPF No. 4-2016-5007
Dear Mr. Alexander:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violations, assesses a civil penalty of $49,300, and specifies actions that need to be taken by
Crimson Gulf, LLC to comply with the pipeline safety regulations. The penalty payment terms
are set forth in the Final Order. When the civil penalty has been paid and the terms of the
compliance order completed, as determined by the Director, Southwest Region, this enforcement
action will be closed. Service of the Final Order by certified mail is deemed effective upon the
date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry,
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. R.M. Seeley, Director, Southwest Region, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Crimson Gulf, LLC, ) CPF No. 4-2016-5007
)
Respondent. )
____________________________________)
FINAL ORDER
From March 2015 through July 2015, pursuant to 49 U.S.C. § 60117, a representative of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Crimson
Gulf, LLC (Crimson or Respondent) in Houma, Louisiana and in Crimson’s Delta offshore
pipeline system. Respondent, an affiliate of Crimson Pipeline, LLC, is engaged in the
transportation of crude oil through approximately 500 miles of pipeline.1
As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated April 4, 2016, a Notice of Probable Violation, Proposed Civil
Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the
Notice proposed finding that Crimson had committed various violations of 49 C.F.R. Part 195
and proposed assessing a civil penalty of $49,300 for the alleged violations. The Notice also
proposed ordering Respondent to take certain measures to correct the alleged violations.2
Respondent failed to respond within 30 days of receipt of service of the Notice. Under 49 C.F.R.
§ 190.209(c), such failure to respond constitutes a waiver of Crimson’s right to contest the
allegations in the Notice and authorizes the Associate Administrator, without further notice, to
find facts as alleged in the Notice and to issue this Final Order under § 190.213. In this case, the
Notice was mailed to Respondent by certified mail (USPS Article No.
9590940303045155018023) on April 7, 2016, and was received by Respondent on April 11,
2016, as shown by the return receipt on file with PHMSA. To date, Respondent has not
acknowledged or responded to the Notice. Under such circumstances, I find it reasonable and
1 Crimson Gulf, LLC, website, available at http://www.crimsonpl.com/gulf/index htm# (last accessed September 19,
2016).
2 The Notice was issued in conjunction with a separate Notice of Amendment (CPF No. 4-2016-5008M). An Order
Directing Amendment in that case is being issued separately.



CPF No. 4-2016-5007
Page 2
appropriate to enter this Final Order without further proceedings.3
FINDINGS OF VIOLATION
Crimson did not contest the allegations in the Notice that it violated 49 C.F.R. Part 195, as
follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.55(a)(2), which states:
§ 195.55 Reporting safety-related conditions.
(a) Except as provided in paragraph (b) of this section, each operator
shall report in accordance with §195.56 the existence of any of the
following safety-related conditions involving pipelines in service:
. . . .
(2) Unintended movement or abnormal loading of a pipeline by
environmental causes, such as an earthquake, landslide, or flood, that
impairs its serviceability.
The Notice alleged that Respondent violated 49 C.F.R. § 195.55(a)(2) by failing to report the
existence of a safety-related condition due to unintended movement of Crimson’s 12-inch
offshore Pompano Pipeline (Pompano Pipeline). Specifically, the Notice alleged that Crimson
failed to report the safety-related condition that occurred after erosion caused the Pompano
Pipeline to sink. As a result of the erosion, a portion of the Pompano Pipeline was suspended
without adequate support. On January 24, 2013, Respondent performed an underwater
inspection of the Pompano Pipeline, which indicated that the pipeline was at a water depth of ten
feet. On May 23, 2014, Respondent performed another underwater inspection, which indicated
that the pipeline was at a depth of 15 feet and, accordingly, had been subject to unintended
movement. Respondent did not report the safety-related condition. Respondent did not contest
this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that
Respondent violated 49 C.F.R. § 195.55(a)(2) by failing to report a safety-related condition: the
sinking of the Pompano Pipeline.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.57 (2015),4 which states in
relevant part:
§ 195.57 Filing offshore pipeline condition reports.
(a) Each operator shall, within 60 days after completion of the
3 In the Matter of Tampa Pipeline Corp., Final Order (CPF No. 2-2008-6002) (Apr. 26, 2010), 2010 WL 6531627,
(D.O.T.); see also, In the Matter of Tampa Bay Pipeline Corp., Final Order (CPF No. 2-2005-6012 (Dec. 1, 2006),
2008 WL 902910) (D.O.T.). PHMSA final orders are generally accessible on the agency’s website, available at
http://primis.phmsa.dot.gov/comm/reports/enforce/Actions.
4 49 C.F.R. § 195.57 was in effect at the time Respondent completed its underwater pipeline inspections and during
PHMSA’s inspection. Part 195 was subsequently amended, effective October 1, 2015, removing § 195.57. 80 Fed.
Reg. 12762, 12780 (March 11, 2015).



CPF No. 4-2016-5007
Page 3
inspection of all its underwater pipelines subject to § 195.413(a), report
the following information:
(1) Name and principal address of operator.
(2) Date of report.
(3) Name, job title, and business telephone number of person
submitting the report.
(4) Total number of miles (kilometers) of pipeline inspected.
(5) Length and date of installation of each exposed pipeline segment,
and location; including, if available, the location according to the Minerals
Management Service or state offshore area and block number tract.
(6) Length and date of installation of each pipeline segment, if
different from a pipeline segment identified under paragraph (a)(5) of this
section, that is a hazard to navigation, and the location; including, if
available, the location according to the Minerals Management Service or
state offshore area and block number tract.
The Notice alleged that Respondent violated 49 C.F.R. § 195.57 (2015) by failing to file offshore
pipeline condition reports within 60 days after completion of the pipeline inspections.
Specifically, the Notice alleged that Crimson performed three underwater inspections of its
Pompano Pipeline on January 24, 2013, May 23, 2014, and June 5, 2014. Crimson failed to file
offshore condition reports to PHMSA within 60 days of completing the three inspections.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.57 (2015) by failing to file
offshore pipeline condition reports within 60 days after completion of three pipeline inspections.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.402, which states in
relevant part:
§ 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline
system a manual of written procedures for conducting normal operations
and maintenance activities and handling abnormal operations and
emergencies. . . .
. . . .
(c) Maintenance and normal operations. The manual required by
paragraph (a) of this section must include procedures for the following to
provide safety during maintenance and normal operations:
. . . .
(13) Periodically reviewing the work done by operator personnel to
determine the effectiveness of the procedures used in normal operation
and maintenance and taking corrective action where deficiencies are
found.
The Notice alleged that Respondent violated 49 C.F.R. § 195.402 by failing to prepare and
follow written procedures for periodically reviewing the work done by Crimson’s personnel to
determine the effectiveness of the procedures used in normal operation and maintenance and



CPF No. 4-2016-5007
Page 4
taking corrective action where deficiencies are found. Specifically, the Notice alleged that,
during its inspection of Crimson, PHMSA requested a copy of the procedure that Crimson was
required to maintain under 49 C.F.R. § 195.402(c)(13). Crimson informed PHMSA that no such
procedure existed. Respondent did not contest this allegation of violation. Accordingly, based
upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.402 by
failing to prepare and follow written procedures for periodically reviewing the work done by
Crimson’s personnel to determine the effectiveness of the procedures used in normal operation
and maintenance and taking corrective action where deficiencies are found.
Item 5: The Notice alleged that Respondent violated 49 C.F.R. § 195.413(c)(3), which states:
§ 195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico
and its inlets.
(a) . . . .
(c) If an operator discovers that its pipeline is an exposed underwater
pipeline or poses a hazard to navigation, the operator shall—
(3) Within 6 months after discovery, or not later than November 1 of
the following year if the 6 month period is later than November 1 of the
year of discovery, bury the pipeline so that the top of the pipe is 36 inches
(914 millimeters) below the underwater natural bottom (as determined by
recognized and generally accepted practices) for normal excavation or 18
inches (457 millimeters) for rock excavation.
The Notice alleged that Respondent violated 49 C.F.R. § 195.413(c)(3) on two separate
occasions by failing to place its Pompano Pipeline so that the top of the pipeline is 36 inches
below the underwater natural bottom within six months of discovering that the Pompano Pipeline
was exposed underwater. Specifically, the Notice alleged that Crimson performed an underwater
inspection of the Pompano Pipeline on January 24, 2013. The inspection indicated that the
pipeline was exposed underwater at less than 15 feet in depth at four points. On May 23, 2014,
and June 5, 2014, Crimson performed further underwater inspections of the Pompano Pipeline.
The later inspections also indicated that the pipeline was exposed and suspended without
adequate support, and indicated that the pipeline had undergone unintended movement that could
adversely affect safe operation. PHMSA requested, and Crimson failed to provide,
documentation indicating that the underwater exposures, unsupported suspension, and
unintended movement were corrected pursuant to 49 C.F.R. § 195.413. Respondent did not
contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I
find that Respondent violated 49 C.F.R. § 195.413(c)(3) on two separate occasions by failing to
place its Pompano Pipeline so that the top of the pipeline is 36 inches below the underwater
natural bottom within six months of discovering that the Pompano Pipeline was exposed
underwater.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.



CPF No. 4-2016-5007
Page 5
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations. In determining the amount of a civil penalty under
49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect
that the penalty may have on its ability to continue doing business; and the good faith of
Respondent in attempting to comply with the pipeline safety regulations. In addition, I may
consider the economic benefit gained from the violation without any reduction because of
subsequent damages, and such other matters as justice may require. The Notice proposed a total
civil penalty of $49,300 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $30,400 for Respondent’s violation of
49 C.F.R. § 195.55(a)(2), for failing to report the existence of a safety-related condition due to
unintended movement of Crimson’s Pompano Pipeline. Crimson neither contested the allegation
nor presented any evidence or argument justifying a reduction in the proposed penalty.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $30,400 for violation of 49 C.F.R. § 195.55(a)(2).
Item 2: The Notice proposed a civil penalty of $18,900 for Respondent’s violation of
49 C.F.R. § 195.57 (2015), for failing to file offshore pipeline condition reports within 60 days
after completion of pipeline inspections on the Pompano Pipeline. Crimson neither contested the
allegation nor presented any evidence or argument justifying a reduction in the proposed penalty.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $18,900 for violation of 49 C.F.R. § 195.57 (2015).
In summary, having reviewed the record and considered the assessment criteria for each of the
Items cited above, I assess Respondent a total civil penalty of $49,300.
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike
Monroney Aeronautical Center, 6500 S Macarthur Blvd, Oklahoma City, OK 79169. The
Financial Operations Division telephone number is (405) 954-8845.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, 3, and 5 in the Notice for
violations of 49 C.F.R. §§ 195.55, 195.57 (2015), 195.402, and 195.413(c)(3), respectively.
Pursuant to the removal of 49 C.F.R. § 195.57, effective October 1, 2015, the compliance order
addressing Item 2 is hereby withdrawn. Under 49 U.S.C. § 60118(a), each person who engages



CPF No. 4-2016-5007
Page 6
in the transportation of hazardous liquids or who owns or operates a pipeline facility is required
to comply with the applicable safety standards established under chapter 601. Pursuant to the
authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the
following actions to ensure compliance with the pipeline safety regulations applicable to its
operations:
1. 2. 3. 4. With respect to the violation of 49 C.F.R. § 195.55(a)(2) (Item 1), Respondent
must file a report with PHMSA documenting the existence of a safety-related
condition due to unintended movement of Crimson’s Pompano Pipeline, must
correct the unsafe conditions created by the suspension of a portion of the pipeline
without support, and must perform an underwater inspection of the Pompano
Pipeline to ensure the continued safe operation of the pipeline. Respondent must
provide documentation to PHMSA demonstrating completion of the corrective
actions and a report detailing the results of the underwater inspection.
With respect to the violation of 49 C.F.R. § 195.402 (Item 3), Respondent must
develop and implement written procedures for periodically reviewing the work
done by Crimson’s personnel to determine the effectiveness of the procedures
used in normal operation and maintenance and taking corrective action where
deficiencies are found.
With respect to the violation of 49 C.F.R. § 195.413(c)(3) (Item 5), Respondent
must file documentation with PHMSA indicating that the underwater exposures,
unsupported suspension, and unintended movement of the Pompano Pipeline were
corrected pursuant to 49 C.F.R. § 195.413. Respondent must correct the unsafe
conditions created by the underwater exposures, unsupported suspension, and
unintended movement, and must perform an underwater inspection of the
Pompano Pipeline to ensure the continued safe operation of the pipeline.
Respondent must provide documentation to PHMSA demonstrating completion of
the corrective actions and a report detailing the results of the underwater
inspection.
Respondent must complete the required actions within 30 days of this Final
Order.
It is requested (not mandated) that Crimson Gulf maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the total to R.M.
Seeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. It
is requested that these costs be reported in two categories: 1) total cost associated with
preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.



CPF No. 4-2016-5007
Page 7
Failure to comply with this Compliance Order may result in the administrative assessment of
civil penalties not to exceed $200,000 for each violation for each day the violation continues or
in referral to the Attorney General for appropriate relief in a district court of the United States.
WARNING ITEM
With respect to Item 4, the Notice alleged probable violations of 49 C.F.R. § 195.413(c)(1), but
did not propose a civil penalty or compliance order for this item. Therefore, this is considered to
be a warning item. The warning was for:
49 C.F.R. § 195.413(c)(1) (Item 4) ─ Respondent’s failure to notify the National
Response Center within 24 hours of discovering that Crimson’s Pompano Pipeline
was exposed underwater.
If OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject
to future enforcement action.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States. Under
49 C.F.R. § 190.243, Respondent has a right to submit a Petition for Reconsideration of this
Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline Safety,
PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a
copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA will accept
petitions received no later than 20 days after receipt of service of this Final Order by the
Respondent, provided they contain a brief statement of the issue(s) and meet all other
requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays the payment of
any civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all
other terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
December 27, 2016
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

420165007_NOPV PCP PCO_04042016_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
AND
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
April 4, 2016
Mr. Larry Alexander
President
Crimson Gulf, LLC
263 Trinity Lane
Gray, LA 70359
CPF 4-2016-5007
Dear Mr. Alexander:
On March 2015 to July 2015, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49
United States Code inspected your procedures, records and offshore pipeline facilities.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the
probable violations are:



1. §195.55 Reporting Safety-related conditions.
(a) Except as provided in paragraph (b) of this section, each operator shall report in
accordance with §195.56 the existence of any of the following safety-related conditions
involving pipelines in service:
(2) Unintended movement or abnormal loading of a pipeline by environmental causes,
such as an earthquake, landslide, or flood that impairs its serviceability.
Crimson Gulf failed to report in accordance with §195.56 the existence of a safety related
condition due to unintended movement that involved their offshore, 12-inch Pompano Pipeline.
Specifically, Crimson Gulf failed to report a safety related condition that occurred when erosion
caused their 12-inch Pompano Pipeline to sink, and leaving a portion of the line suspended
without adequate support.
Crimson performed an underwater inspection of their 12-inch Pompano Pipeline on January 24,
2013, as shown on their Depth of Cover Survey map. Crimson Gulf’s survey indicated the
pipeline was at a water depth of ten feet. In May 23, 2014, Crimson Gulf performed another
underwater inspection. The survey indicated the pipeline had unintended movement and sank to
15 feet.
2. §195.57 Filing offshore pipeline condition reports.
(a) Each operator shall, within 60 days after completion of the inspection of all its
underwater pipelines subject to § 195.413(a), report the following information:
(1) Name and principal address of operator.
(2) Date of report.
(3) Name, job title, and business telephone number of person submitting the report.
(4) Total number of miles (kilometers) of pipeline inspected.
(5) Length and date of installation of each exposed pipeline segment, and location;
including, if available, the location according to the Minerals Management Service or
state offshore area and block number tract.
(6) Length and date of installation of each pipeline segment, if different from a pipeline
segment identified under paragraph (a)(5) of this section, that is a hazard to navigation,
and the location; including, if available, the location according to the Minerals
Management Service or state offshore area and block number tract.
Crimson Gulf failed to file an offshore pipeline condition report within 60 days after they
completed inspection of their underwater 12-inch Pompano Pipeline.
Crimson Gulf performed an underwater inspection of their 12-inch Pompano Pipeline on January
24, 2013 as shown on their Depth of Cover Survey map. Crimson then performed another
underwater inspection of their Pompano Pipeline in May 23, 2014 and June 5, 2014. Crimson
failed to file their offshore condition reports to PHMSA within 60 days of completing their
underwater condition inspection reports on both instances.
2



3. §195.402 Procedural Manual for Operations, Maintenance, and Emergencies
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the following to provide safety during maintenance
and normal operations:
(13) Periodically reviewing the work done by operator personnel to determine the
effectiveness of the procedures used in normal operation and maintenance and taking
corrective action where deficiencies are found.
Crimson Gulf did not have procedures for periodically reviewing the work done by the operator's
personnel to determine the effectiveness of the procedures used in normal operation and
maintenance, and taking corrective action where deficiencies are found.
When the PHMSA representative requested to review the procedure, Crimson Gulf
representative stated there was no procedure.
4. §195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico and its
inlets.
(c) If an operator discovers that its pipeline is an exposed underwater pipeline or poses
a hazard to navigation, the operator shall—
(1) Promptly, but not later than 24 hours after discovery, notify the National Response
Center, telephone: 1-800-424-8802, of the location and, if available, the geographic
coordinates of that pipeline.
Crimson Gulf failed to notify the National Response Center within 24 hours, after they
discovered its pipeline was exposed underwater.
Crimson Gulf performed an underwater inspection of their 12-inch Pompano Pipeline on January
24, 2013 as shown on their Depth of Cover Survey map. Crimson Gulf’s survey indicated the
pipeline was exposed underwater in less than 15 feet in depth. The exposed section of pipeline
was reported to the National Response Center on May 19, 2014 (NRC report 1083239) when
Crimson discovered another exposure nearby. Crimson needed to notify the National Response
Center by January 25, 2013, of their discovery of exposed pipeline found during the 2013
underwater inspection.
5. §195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico and its
inlets.
(c) If an operator discovers that its pipeline is an exposed underwater pipeline or poses
a hazard to navigation, the operator shall—
(3) Within 6 months after discovery, or not later than November 1 of the year that the
discovery is made, place the pipeline so that the top of the pipe is 36 inches (914
millimeters) below the underwater natural bottom (as determined by recognized and
generally accepted practices) for normal excavation or 18 inches (457 millimeters) for
rock excavation
3



Crimson Gulf failed to place their 12 inch Pompano Pipeline so that the top of the pipe is 36
inches below the underwater natural bottom, within 6 months after they discovered portion of the
Pompano Pipeline was exposed underwater on two separate occasions.
Crimson Gulf performed an underwater inspection of their 12-inch Pompano Pipeline on January
24, 2013 as shown on their Depth of Cover Survey map. Crimson Gulf’s survey indicated the
pipeline was exposed underwater in less than 15 feet in depth at point numbers 36, 37, 38, and
42. Crimson then performed another underwater inspection of their Pompano Pipeline in May
23, 2014 and June 5, 2014 and indicated exposed and suspended pipe without adequate support.
The 2014 survey also indicated unintended movement that could adversely affect the safe
operation of the pipeline, occurred at point numbers 108, 120, 121, and 122.
Crimson Gulf did not provide to PHMSA, documentation showing the exposures, suspended
portion and unintended movement of the pipeline had been rectified.
Proposed Civil Penalty
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. The Compliance Officer has reviewed the circumstances and
supporting documentation involved in the above probable violation(s) and has recommended that
you be preliminarily assessed a civil penalty of $49,300 as follows:
Item number PENALTY
1 $30,400
2 $18,900
Warning Items
With respect to item 4, 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. We advise you to promptly correct these item(s). Failure to do so may
result in additional enforcement action.
Proposed Compliance Order
With respect to items 1, 2, 3, and 5, pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to Crimson
Gulf LLC. Please refer to the Proposed Compliance Order, which is enclosed and made a part
of this Notice.
4



Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Compliance Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be 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). If you do not respond within 30 days of receipt of this Notice,
this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the
Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further
notice to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPF 4-2016-5007 and for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
R.M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
5



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Crimson Gulf, LLC a Compliance Order
incorporating the following remedial requirements to ensure the compliance of Crimson Gulf,
LLC with the pipeline safety regulations:
1. 2. 3. 4. In regard to Item Numbers 1, 2, and 5 of the Notice pertaining to the safety related
condition and exposed pipeline, Crimson Gulf must file the DOT/PHMSA
required reports; correct the unsafe conditions and provide documentation to
demonstrate completion; and perform an underwater inspection of the pipeline to
ensure the continued safe operation of the pipeline.
In regard to Item Number 3 of the Notice pertaining to not having procedures for
periodically reviewing the work done by the operator’s personnel to determine the
effectiveness of the procedure used, Crimson Gulf must develop and implement a
procedure.
Pertaining to items above of the Proposed Compliance Order, Crimson Gulf must
complete the required orders within 30 days of the Compliance Order.
It is requested (not mandated) that Crimson Gulf maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and
submit the total to R.M. Seeley, Director, Southwest Region, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: 1) total cost associated with preparation/revision of
plans, procedures, studies and analyses, and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
6
- **truncated:** false
- **body characters:** 34106