{"operation":"document","citation":"CPF 420165009","title":"ENERGY TRANSFER COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-04-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(c)(13), 195.404(c)(3), 195.505(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165009","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420165009","body":"Notice of Probable Violation involving ENERGY TRANSFER COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(13),  195.404(c)(3),  195.505(b). The case was opened on 2016-04-11 and is reported as closed as of 2016-12-07. Proposed civil penalty: $24,400. Assessed civil penalty: $24,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420165009_Final Order_12072016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165009/420165009_Final%20Order_12072016.pdf\n\n420165009_Final Order_12072016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165009/420165009_Final%20Order_12072016_text.pdf\n\n420165009_NOPV PCO_04112016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165009/420165009_NOPV%20PCO_04112016_text.pdf\n\n420165009_NOPV PCP_04112016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165009/420165009_NOPV%20PCP_04112016.pdf\n\n420165009_Operator Response to Notice_04292016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165009/420165009_Operator%20Response%20to%20Notice_04292016.pdf\n\n420165009_Final Order_12072016_text.pdf\n\nDecember 7, 2016\nMr. Kelcy L. Warren\nChief Executive Officer\nEnergy Transfer Partners, L.P.\n8111 Westchester Drive\nDallas, Texas 75225\nRe: CPF No. 4-2016-5009\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a civil penalty of $24,400. This is to acknowledge receipt of payment of\nthe full penalty amount, by wire transfer, dated May 6, 2016. This enforcement action is now\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Rodrick M. Seeley, Director, Southwest Region, OPS\nMr. Nathan Hlavaty, Director, Interstate Regulatory Compliance, Energy Transfer Co.,\n1300 Main Street, Houston, TX 77002\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)\nEnergy Transfer Partners, L.P. ) CPF No. 4-2016-5009\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn August 4 - 6, 2015, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Energy Transfer\nPartners, L.P. (ETP or Respondent) in Jal, New Mexico. ETP’s unit ID 2444 has 34 miles of 6-\ninch hazardous liquids pipeline from New Mexico to Texas. There are 8 miles of pipelines\nlocated in New Mexico and 26 miles of pipeline in Texas.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 11, 2016, a Notice of Probable Violation and Proposed Civil\nPenalty (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance\nwith 49 C.F.R. § 190.207, the Notice proposed finding that ETP had violated 49 C.F.R.\n§ 195.505 and proposed assessing a civil penalty of $24,400 for the alleged violations. The\nwarning item required no further action, but warned the operator to correct the probable\nviolation.\nETP responded to the Notice by letter dated April 29, 2016 (Response). The company did not\ncontest the allegations of violation and paid the proposed civil penalty of $24,400, as provided in\n49 C.F.R. § 190.227. Payment of the penalty has been received and serves to close the case with\nprejudice to Respondent.\nFINDING OF VIOLATION\nIn its Response, ETP did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (Apr. 11, 2016) (on file with PHMSA), at 1.\n\n\n\nCPF No. 4-2016-5009\nPage 2\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.505, which states in\nrelevant part:\n§ 195.505 Qualification program.\n(a)…\n(b) Ensure through evaluation that individuals performing covered\ntasks are qualified…\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.505 by failing to ensure through\nevaluation that individuals performing aerial patrols are qualified. Specifically, the Notice\nalleged that ETP did not provide records to demonstrate that their patrol pilot was qualified at the\ntime when he conducted, as pilot and observer 13 aerial patrols on pipeline right-of-way from\nDecember 20, 2014 to May 17, 2015. Respondent did not contest this allegation of violation.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 195.505 by failing to ensure through evaluation that individuals performing aerial\npatrols are qualified.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken 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. 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 $24,400 for the violations cited above.\nItem 2: The Notice proposed a civil penalty of $24,400 for Respondent’s violation of 49 C.F.R.\n§ 195.505, for failing to ensure through evaluation that individuals performing aerial patrols are\nqualified. ETP did not contest the proposed penalty. With respect to the nature, circumstances,\nand gravity of this violation, failure to evaluate individuals performing aerial patrols may lead to\nunqualified individuals piloting flight crafts, and has the potential to impact safety. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $24,400 for violation of 49 C.F.R. § 195.505.\n\n\n\nCPF No. 4-2016-5009\nPage 3\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 $24,400. ETP has paid the\nproposed civil penalty.\nWARNING ITEM\nWith respect to Item 1, the Notice alleged probable violations of § 195.404 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n49 C.F.R. §§ 195.404 and 195.402 (Item 1) ─ Respondent’s failure to provide records for 2012\nto 2015 demonstrating that it reviewed the work done by its personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance, and had taken\ncorrective action where deficiencies were found. At the time of the inspection, ETP did not have\nany indication on its inspection form that procedures performed during inspection activities were\nreviewed by the person who did the inspection or by any designated person and that changes to\nprocedures were made, as per its procedures.\nETP presented information in its Response showing that it had taken certain actions to address\nthe cited item. If OPS finds a violation of this provision in a subsequent inspection, Respondent\nmay 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.\nDecember 7, 2016\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nActing Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":8374}