{"operation":"document","citation":"CPF 420165014S","title":"ONEOK NGL PIPELINE, LLC — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-05-16","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165014s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165014s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165014s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420165014S","body":"Safety Order involving ONEOK NGL PIPELINE, LLC. The dataset does not identify a cited regulation for this case. The case was opened on 2016-05-16 and is reported as closed as of 2022-04-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420165014S_Closure Letter_04122022_(16-153426S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Closure%20Letter_04122022_(16-153426S).pdf\n\n420165014S_Closure Letter_04122022_(16-153426S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Closure%20Letter_04122022_(16-153426S)_text.pdf\n\n420165014S_Consent Agreement and Order_12132019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Consent%20Agreement%20and%20Order_12132019.pdf\n\n420165014S_Consent Agreement and Order_12132019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Consent%20Agreement%20and%20Order_12132019_text.pdf\n\n420165014S_Notice of Proposed Safety Order_05162016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Notice%20of%20Proposed%20Safety%20Order_05162016.pdf\n\n420165014S_Notice of Proposed Safety Order_05162016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Notice%20of%20Proposed%20Safety%20Order_05162016_text.pdf\n\n420165014S_Operator Request for Hearing_05302017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Operator%20Request%20for%20Hearing_05302017.pdf\n\n420165014S_Operator Response to Notice_08242016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165014S/420165014S_Operator%20Response%20to%20Notice_08242016.pdf\n\n420165014S_Consent Agreement and Order_12132019_text.pdf\n\nDecember 13, 2019\nVIA EMAIL AND CERTIFIED MAIL:\nMr. Scott Schingen\nVice President, Natural Gas Liquids Operations\nONEOK NGL Pipeline, L.L.C.\n100 W. Fifth Street\nTulsa, Oklahoma 74103\nRE: In the Matter of ONEOK NGL Pipeline, L.L.C. – CPF No. 4-2016-5014S\nDear Mr. Schingen:\nEnclosed please find the fully executed Consent Agreement and Order that resolves the issues\nunderlying the Notice of Proposed Safety Order issued by PHMSA on May 16, 2016, in the\nabove-referenced proceeding. Your receipt of this Consent Agreement and Order constitutes\nservice, 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: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safey, PHMSA\nMs. Linda Daugherty, Deputy Associate Administrator for Field Operations, Pipeline\nSafety, Office of Pipeline Safety, PHMSA\nMr. Walter Allen, Vice President, Natural Gas Liquids Transportation\nMr. David Keglovits, Vice President and Associate General Counsel\nMr. Vince Murchison, Murchison Law Firm, 325 North St. Paul Street, Suite 2700,\nDallas, Texas 75201\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 )\nONEOK NGL Pipeline, L.L.C. ) CPF No. 4-2016-5014S\n)\n)\n)\nRespondent )\n____________________________________)\nCONSENT AGREEMENT AND ORDER\nOn May 16, 2016, pursuant to 49 C.F.R. § 190.239, the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of\nProposed Safety Order (Notice) to ONEOK NGL Pipeline, L.L.C. (Respondent). The\nNotice alleged that Respondent’s 16-inch hazardous liquid pipeline system designated as\nthe Sterling III Pipeline contains an apparent condition that, without corrective measures,\ncould pose a pipeline integrity risk to public safety, property, or the environment. No\naccident or release from the Sterling III Pipeline was alleged to have occurred.\nSpecifically, the Notice alleged that onsite inspections of the Sterling III Pipeline by\nPHMSA in March 2016 identified a risk condition involving the aboveground station\npiping on the discharge piping of several of the pumping stations. Respondent had taken\nmitigative steps to address mechanical vibration resulting from Variable Frequency Drive\npumping units.\nOn June 13, 2016, Respondent responded to the Notice by submitting a timely written\nresponse and request for an informal consultation. An informal consultation was held\nbetween representatives from Respondent and PHMSA wherein the Parties engaged in\ngood faith negotiations to address the alleged risk condition according to the provisions of\n49 C.F.R. § 190.239(b)(2). PHMSA subsequently provided written notification to\nRespondent on May 9, 2017 of the intent to conclude the informal consultation effective\nMay 19, 2017. On May 30, 2017, Respondent submitted a timely written request for a\nhearing.\nRespondent proceeded with non-destructive examination (NDE) of three of the most\nfrequently operated stations on the Sterling III Pipeline and in August 2017, commenced\nthe testing. The Presiding Official made a determination to delay scheduling of a hearing\nto allow the Parties an opportunity to reach agreement on the scope of future NDE.\n\n\n\nCPF No. 4-2016-5014S\nPage 2\nHaving agreed that settlement of this proceeding will avoid further administrative\nproceedings or litigation and that entry of this Consent Agreement and Order (Agreement\nand Order) is the most appropriate means of resolving the Notice, pursuant to 49 C.F.R.\nPart 190, without adjudication of any issue of fact or law, and upon consent and agreement\nof Respondent and PHMSA (the Parties), the Parties agree as follows:\nI. General Provisions\n1. Respondent acknowledges that the Sterling III Pipeline is regulated by\nPHMSA, and, therefore, as the operator, Respondent is subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. 60101, et seq., and the regulations and\nadministrative orders issued thereunder. For purposes of this Agreement and Order,\nRespondent further acknowledges that it received proper notice of PHMSA’s action in this\nproceeding and that the Notice states claims upon which relief may be granted pursuant to\n49 U.S.C. 60101, et seq., and the regulations and administrative orders issued thereunder.\n2. Respondent neither admits nor denies any allegation or conclusion in the\nNotice but agrees, for the purposes of this Agreement and Order, to address the alleged risk\ncondition on the Sterling III Pipeline by completing the actions specified in Article II of\nthis Agreement and Order (Corrective Measures), as well as to abide by the terms of this\nAgreement and Order. This Agreement and Order does not constitute a finding of violation\nof any Federal law or regulation and may not be used in any civil or administrative\nproceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of\nthe violation of any law, rule, regulation or requirement, except in a proceeding to enforce\nthe provisions of this Agreement and Order.\n3. Respondent consents to the issuance of this Agreement and Order, and\nhereby waives any further procedural requirements with respect to its issuance. Subject to\nthe rights granted by Section 20 hereof, Respondent waives all rights to contest the\nadequacy of notice, or the validity of this Agreement and Order, including all rights to\nadministrative or judicial hearings, reviews, or appeals.\n4. This Agreement and Order shall apply to, and be binding upon, PHMSA\nand Respondent, its officers, directors, and employees, and its successors, assigns, or other\nentities or persons otherwise bound by law. Respondent agrees to provide a copy of this\nAgreement and Order and any incorporated work plans and schedules to such of\nRespondent’s officers, employees, and agents whose duties might reasonably include\ncompliance with this Agreement and Order.\n5. For any transfer of ownership or operating responsibility of Respondent’s\nSterling III Pipeline occurring during the term of this Agreement and Order, Respondent\nwill provide a copy of this document to the prospective transferee at least 30 days prior to\nsuch transfer. Respondent shall provide written notice of the actual transfer to the Director,\n\n\n\nCPF No. 4-2016-5014S\nPage 3\nPHMSA Southwest Region (Director) not later than 60 days following the consummation\nof any such transfer.\n6. This Agreement and Order constitutes the final, complete and exclusive\nagreement and understanding between the Parties with respect to the settlement embodied\nherein. The Parties acknowledge that no representations, agreements, or understandings\nrelate to this settlement other than those expressly contained in this Agreement and Order,\nexcept that the terms of this Agreement and Order may be construed by reference to the\nNotice.\n7. Nothing in this Agreement and Order affects or relieves Respondent of its\nresponsibility to comply with all applicable requirements of the Federal pipeline safety\nlaws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued\nthereunder. Nothing in this Agreement and Order alters PHMSA’s right of access, entry,\ninspection, and information gathering, or PHMSA’s authority to bring enforcement\naction(s) against Respondent pursuant to the Federal pipeline safety laws, the regulations\nand orders issued thereunder, or any other provision of Federal law, including future\nenforcement action relating to Respondent’s Sterling III Pipeline.\n8. This Agreement and Order does not waive or modify any law or regulation\napplicable to Respondent’s Sterling III Pipeline. This Agreement and Order is not a permit,\nor a modification of any permit, under any laws or regulations. Respondent remains\nresponsible for maintaining compliance with all applicable laws, regulations and permits.\n9. This Agreement and Order does not create rights in, or grant any cause of\naction to, any third party not party to this Agreement and Order. U.S. Department of\nTransportation and PHMSA are not liable for any injuries or damages to persons or\nproperty arising from acts or omissions of Respondent or its officers, employees, or agents\ncarrying out the work required by this Agreement and Order. Respondent agrees to\nindemnify and hold harmless the U.S. Department of Transportation, its officers,\nemployees, agents, and representatives from any and all causes of action arising from any\nacts or omissions of Respondent or its contractors in carrying out the work required by this\nAgreement and Order.\n10. This Agreement and Order resolves the underlying issues in the Notice.\nThis Agreement and Order makes no findings of violation. The terms of this Agreement\nand Order constitute an offer of settlement until executed by the Associate Administrator\nfor Pipeline Safety. Upon execution of this Agreement and Order by both Parties, any\nrequest for a hearing submitted by Respondent shall be automatically withdrawn.\n11. Upon the issuance of this Agreement and Order, Respondent agrees to\nperform the Corrective Measures set forth in Article II below. These actions, including\nany work plans and schedules, are automatically incorporated into this Agreement and\nOrder. Any work plans and schedules will be revised, as mutually determined to be\nnecessary, to incorporate new information obtained during the activities performed.\n\n\n\nCPF No. 4-2016-5014S\nPage 4\nRespondent will submit any such plan revisions to the Director for prior approval in\naccordance with Section 18.\nII. Corrective Measures\n12. Item 1. Vibration Study. Respondent will perform a comprehensive\nstudy to determine the specific circumstances and conditions in which potentially\ndamaging vibrational effects may occur during the operation of the Sterling III pipeline\nsystem. This will include, but is not limited to, the determination of the specific locations\nmost susceptible to damage, data collection at locations most susceptible to vibrational\ndamage, and identification of welds, piping and piping components most susceptible to\ndamage. This study will be completed and submitted to the Director within 60 days from\nthe Effective Date of this Agreement.\n13. Item 2. Remedial Work Plan. Upon completing the vibration study under\nItem 1, Respondent will develop and submit to the Director for review and approval a\nremedial work plan (RWP) to mitigate the effects of damaging vibration to its pipeline.\nThe RWP may include, but is not limited to, piping reconfigurations, limits on operating\nranges, vibration dampeners, inline vibrational dampening devices, or a combination of\nsuch mitigative measures. For the proposed mitigative measures, ONEOK must\ndemonstrate, in the form of vibration test data, the effectiveness in preventing damaging\nvibration. The RWP will be submitted to the Director within 60 days of completion of\nthe vibration study. Respondent will perform the actions in the RWP, as approved by the\nDirector within 180 days of approval.\n14. Item 3. Engineering Solutions. Within 90 days of the Effective Date of\nthis Agreement, ONEOK must prepare and submit to the Director written procedures for\ndesigning any new or modified pump stations to mitigate the risk of damage due to\nvibration. The written procedures, upon approval by the Director, must be incorporated\ninto ONEOK’s manual of written procedures for Operations and Maintenance (O&M)\nand must be followed for each new or modified pump station to mitigate the risk of\ndamage from vibration. The design procedures must be tested and validated in the same\nmanner as provided in Item 2.\n15. Documentation. Respondent shall retain on file documentation of\ncompliance with the provisions of Sections 12, 13, and 14 hereof. Respondent shall\nprovide copies of such documentation to the Director upon written request.\n16. Quarterly Reporting. Until termination pursuant to the provisions of\nSection 26 hereof, Respondent must submit quarterly reports to the Director, due not more\nthan 30 days following the end of each calendar quarter, describing the progress of the\nCorrective Measures being undertaken pursuant to Sections 12, 13, and 14 hereof.\n17. Documentation of Costs. It is requested (not mandated) that Respondent\nmaintain documentation of the safety improvement costs associated with fulfilling this\n\n\n\nCPF No. 4-2016-5014S\nPage 5\nAgreement and Order and submit the total to the Director, Southwest Region, Pipeline\nand Hazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: (1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and (2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\nIII. Approvals\n18. With respect to the submissions under this Agreement and Order requiring\nthe approval of the Director, the Director shall act promptly to: (a) approve, in whole or\npart, the submission; (b) approve the submission on specific conditions; (c) disapprove,\nin whole or in part, the submission, directing that Respondent modify the submission; or\n(d) any combination of the above. In the event of approval, approval in part, or approval\nupon conditions, Respondent will proceed to take all action required by the submission,\nas approved or conditioned by the Director, subject to Respondent’s right to invoke the\ndispute resolution procedures in Section 20 with respect to any conditions specified by\nthe Director. If the Director conditions or disapproves all or any portion of a submission,\nthe Director will in writing state with specificity the basis for the decision and Respondent\nwill resubmit it to address the stated issues. If a resubmitted item is disapproved in whole\nor in part, the Director may again require Respondent to address the stated issues in\naccordance with the foregoing procedure, or Respondent may proceed to dispute\nresolution pursuant to Section 20 below.\nIV. Extensions of Time\n19. The Director may grant an extension of time for compliance with any of\nthe terms of this Agreement and Order upon a written request submitted at least 15\ncalendar days prior to a stated deadline, demonstrating good cause for an extension. The\nDirector shall respond within a reasonable time to any such request for extension of time.\nV. Dispute Resolution\n20. The Director and Respondent will attempt to resolve informally any\ndisputes arising under this Agreement and Order, including but not limited to any decision\nof the Director. The Director and Respondent will first confer in an effort to resolve any\ndispute. If the Director and Respondent are unable to resolve informally the dispute\nwithin 15 business days of notice by Respondent, Respondent may request in writing,\nwithin 10 business days of the end of said 15-day period, a written determination resolving\nthe dispute by the PHMSA Associate Administrator for Pipeline Safety. Along with its\nrequest, Respondent will provide the Associate Administrator with all information\nRespondent believes is relevant to the dispute. If the request is submitted as provided\nherein, the Associate Administrator will promptly issue a written determination that will\nconstitute final agency action, and be subject to judicial appeal. The existence of a dispute\nand PHMSA’s consideration of matters placed in dispute shall not excuse, toll, or suspend\nany term or timeframe for completion of any Corrective Measures to be performed under\n\n\n\nCPF No. 4-2016-5014S\nPage 6\nthis Agreement and Order during the pendency of the dispute resolution process, except\nas agreed by the Director or the Associate Administrator in writing.\nVI. Enforcement\n21. Respondent’s obligations pursuant to this Agreement and Order may be\nenforced by PHMSA pursuant to enforcement authorities available to PHMSA under 49\nU.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All deadlines set forth or referenced in\nthis Agreement and Order will be automatically incorporated into this Agreement and\nOrder and, subject to Respondent’s right to request an extension of time under Section 19\nand modify this Agreement under Section 25, are enforceable in the same manner.\nVII. Recordkeeping and Information Disclosure\n22. Except as otherwise provided herein, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement and Order for\na period of five years following notice by Respondent of the completion of all work to be\nperformed.\n23. For any reports, plans, or other deliverables required to be submitted to\nPHMSA pursuant to this Agreement and Order, Respondent may assert a claim of\nbusiness confidentiality or other protections applicable to the release of information by\nPHMSA, covering part or all of the information required to be submitted to PHMSA\npursuant to this Agreement and Order in accordance with 49 C.F.R. Part 7 and 49 C.F.R.\n§ 190.343. Respondent must mark the claim of confidentiality in writing on each page,\nand include a statement specifying the grounds for each claim of confidentially. PHMSA\nwill determine the release of any information submitted pursuant to this Agreement and\nOrder in accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. §\n552, DOT and PHMSA policies, and other applicable statutes, regulations and Executive\nOrders.\nVIII. Effective Date\n24. The term “Effective Date,” as used herein, is the later date on which this\nAgreement and Order is fully executed by each of the Parties. Unless specified to the\ncontrary, all deadlines for actions required by this Agreement and Order run from the\nEffective Date.\nIX. Modification\n25. The terms of this Agreement and Order may be modified by mutual\nagreement of the Parties. Such modifications must be in writing and signed by both\nParties.\n\n\n\nCPF No. 4-2016-5014S\nPage 7\nX. Termination\n26. This Agreement and Order terminates upon completion of all actions set\nforth in Article II, as determined by the Director. Respondent may request written\nconfirmation from PHMSA when this Agreement and Order is terminated, in which case\nthe Director will provide such written confirmation within a reasonable time. Nothing in\nthis Agreement and Order prevents Respondent from completing any of the obligations\nearlier than the deadlines provided for in this Agreement and Order.\nXI. Ratification\n27. The Parties’ undersigned representatives certify that they are fully\nauthorized to enter into the terms and conditions of this Agreement and Order and to\nexecute and legally bind such party to this document.\n28. The Parties hereby agree to all conditions and terms of this Agreement and\nOrder.\nFor Respondent:\n___________________________________\nScott Schingen\nVice President, Natural Gas Liquids Operations\nONEOK NGL Pipeline, L.L.C.\nDecember 10, 2019\n________________________\nDate\nFor PHMSA:\n___________________________________\nAlan K. Mayberry\nAssociate Administrator for Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\nDecember 12, 2019\n________________________\nDate\n\n420165014S_Notice of Proposed Safety Order_05162016_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 16, 2016\nMr. Wes Christensen\nVice President NGL Operations\nONEOK NGL Pipeline, LLC\n100 West Fifth Street\nTulsa, OK 74102\nCPF 4-2016-5014S\nDear Mr. Christensen:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case.\nThe Notice proposes that you take certain measures with respect to your Sterling III Pipeline in\nOklahoma and Texas to ensure pipeline safety. Your options for responding are set forth in the\nNotice. Your receipt of the Notice constitutes service of that document under 49 C.F.R. §190.5.\nWe look forward to a successful resolution to ensure pipeline safety. Please direct any questions\non this matter to me at (713) 272-2852.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Notice of Proposed Safety Order and Copy of 49 CFR §190.239\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nSouthwest Region\nHouston, TX 77074\n___________________________________\n)\nIn the Matter of )\n)\nONEOK NGL Pipeline, LLC ) CPF 4-2016-5014S\n)\nRespondent )\n___________________________________ )\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose\nBeginning on May 18, 2015, pursuant to 49 U.S.C. § 60117, the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) initiated an on-site Initial Operating Inspection\n(IOI) of the safety of the Sterling III Pipeline (Sterling III) facilities located in Oklahoma and\nTexas operated by ONEOK NGL Pipeline, LLC (ONEOK, the Operator).\nAs a result of the ongoing inspection, it appears that conditions exist on the Sterling III facilities\nthat pose a pipeline integrity risk to public safety, property or the environment. Pursuant to\n49 U.S.C. §60117(l), PHMSA issues this Notice of Proposed Safety Order (Notice), notifying\nyou of the preliminary findings of the inspection, and proposing that you take measures to\nensure that the public, property, and the environment are protected from the potential risk.\nPreliminary Findings\n• ONEOK has owned and operated Sterling III since completing construction and\ncommissioning it in 2013. The Sterling III is consists 550 miles of 16-inch pipeline and 15\npump stations from Medford, OK to Mont Belvieu, TX. The pipeline is designed to\ntransport a HVL (propane mix). The pump stations are Medford III, Lucien, Luther,\nTecumseh, Latta, Blue River, Bells, Caddo Mills, Van Zandt, Poyner III, Salmon III,\nGroveton III, Goodrich, Cleveland III, and OMBS III.\n• During PHMSA’s field inspection of the ONEOK Sterling III Pipeline, makeshift\nappurtenances were observed by inspectors attached to the aboveground station piping on\nthe discharge piping of several of the pumping stations. The makeshift appurtenances were\nplaced in numerous locations on aboveground piping, downstream of the pumping\nequipment. The appurtenances consisted of a short section of structural steel balanced\nacross the top of a branch pipe with attached fabric straps going underneath the piping.\n\n\n\n2\n• Upon PHMSA’s observation of the makeshift appurtenances, Operator personnel\naccompanying the field inspection were asked to explain the nature and purpose of the\nmakeshift appurtenances. The following information was acquired from the Operator:\no The Variable Frequency Drive (VFD) pumps generated and conducted severe\nmechanical vibration into the station piping during some operating conditions.\no The vibrations from the VFD pumps are suspected by the Operator to have\ncaused cracks in welds on pump discharge piping on other ONEOK pipeline\nsystems. Some of these cracks resulted in failures of the welds and release of\ncommodity in other systems.\no The makeshift appurtenances were temporary devices installed in attempt to\nreduce the vibration of the piping and prevent failures on the Sterling III pipeline\ndue to weld cracking, which had been experienced on other ONEOK pipelines.\n• The Sterling III Pipeline pump stations and station piping affected by the vibration issue\ninclude thirteen locations. The locations and number of pump units include the following:\nMedford III (three pumps), Lucien (two pumps), Tecumseh (two pumps), Latta (one pump),\nBlue River (one pump), Bells (one pump), Caddo Mills (one pump), Van Zandt (one pump),\nPoyner III (one pump), Salmon III (one pump), Groveton III (one pump), Goodrich (two\npumps), and OMBS III (two pumps).\n• At the time of the Sterling III inspection, ONEOK could not provide procedures for the\ninstallation of the makeshift appurtenances that PHMSA had requested. ONEOK was also\nnot able to produce Operator Qualification procedures for installing the devices on a Part\n195 regulated pipeline, or definitive engineering analyses that showed the makeshift\nappurtenances, or a more permanent version of the appurtenances, reduced the threat of\nfailure. Subsequent to the field inspection where PHMSA requested an installation\nprocedure, ONEOK sent PHMSA a document they represented as a procedure for installing\nthe makeshift appurtenances. The document did not adequately cover the installation\nrequirements, had no identification showing it was a ONEOK procedure, no revision date,\nand there was no indication that it had been incorporated into ONEOK’s procedures using\ntheir Management of Change process.\n• At the time of the PHMSA Sterling III inspection, the Operator could not confirm that\noperating restrictions had been implemented to reduce the threat of failure until the risk\ncaused by the vibrations had been mitigated. ONEOK had not made any pressure\nreductions or filed any safety-related condition reports pertaining to this issue. The\nseriousness of the threat and urgency of implementing preventative measures is not reflected\nin the actions being taken by ONEOK.\n• The only information provided by ONEOK based on PHMSA’s request for analyses\nshowing the effectiveness of the makeshift appurtenances or recommendations for a\npermanent solution were in the form of PowerPoint presentations or very brief reports\nauthored by IVC Technologies of Houston, TX. The IVC documents confirm the severity\nof the vibration issue but offer no confirmation that the makeshift appurtenances or more\npermanent bracing will fully mitigate the threat. The solution that IVC indicates will\nremove 99% of the vibration is not being implemented by ONEOK. These analyses did not\ninclude any nondestructive examination of the welds to determine if the vibration had\n\n\n\n3\nalready caused cracking in the welds. These documents also show that ONEOK knew about\nthis vibration issue on other parts of their pipeline system as far back as August 2015 on the\nONEOK Arbuckle Pipeline.\nGiven the integrity threat posed by the vibration issue on the ONEOK Sterling III Pipeline,\nPHMSA requested all engineering analyses pertaining to this issue, the failure investigations or\nroot cause analyses performed, a complete explanation of the preventative and mitigative\nmeasures being taken by ONEOK, and how the threat had been incorporated into their Integrity\nManagement Plan. The Operator did not provide an adequate response to this request.\nProposed Issuance of Safety Order\nSection 60117(l) of Title 49, United States Code, provides for the issuance of a safety order,\nafter reasonable notice and the opportunity for a hearing, requiring corrective measures, which\nmay include physical inspection, testing, repair, or other action, as appropriate. The basis for\nmaking the determination that a pipeline facility has a condition or conditions that pose a\npipeline integrity risk to public safety, property, or the environment is set forth both in the\nabove-referenced statute and 49 CFR §190.239, a copy of which is enclosed.\nAfter evaluating the foregoing preliminary findings of fact and considering the hazardous nature\nof the product transported, the pressure required for transporting such product, the\ncharacteristics of the geographical areas where the pipeline facility is located, the absence of a\nconclusive determination that the dampening methods used by ONEOK are sufficient to\nmaintain the integrity of the pipeline, instances of cracking failures resulting in unplanned\nreleases of products in pipeline systems operated by ONEOK with similar vibrational issues,\nand the potential that conditions could worsen or develop on other areas of the pipeline and\npotentially impact its serviceability, it appears that continued operation of the affected pipeline,\nwithout corrective measures, would pose a pipeline integrity risk to public safety, property, or\nthe environment.\nAccordingly, PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the\nproposed issuance of a safety order and to propose that Respondent take the measures specified\nherein to address the potential risk.\nResponse to this Notice\nIn accordance with §190.239, you have 30 days following receipt of this Notice to submit a\nwritten response to the official who issued the Notice. If you do not respond within 30 days,\nthis constitutes a waiver of your right to contest this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice\nto you and to issue a safety order. In your response, you may notify that official that you intend\nto comply with the terms of the Notice as proposed, or you may request that an informal\nconsultation be scheduled (you will also have the opportunity to request an administrative\nhearing before a safety order is issued). Informal consultation provides you with the\nopportunity to explain the circumstances associated with the risk condition(s) alleged in the\nNotice and, as appropriate, to present a proposal for a work plan or other remedial measures,\nwithout prejudice to your position in any subsequent hearing. If you and PHMSA agree within\n30 days of informal consultation on a plan and schedule for you to address each identified risk\ncondition, we may enter into a written consent agreement (PHMSA would then issue an\nadministrative consent order incorporating the terms of the agreement). If a consent agreement\n\n\n\n4\nis not reached, or if you have elected not to request informal consultation, you may request an\nadministrative hearing in writing within 30 days following receipt of this Notice or within 10\ndays following the conclusion of an informal consultation that did not result in a consent\nagreement, as applicable. Following a hearing, if the Associate Administrator finds the facility\nto have a condition that poses a pipeline integrity risk to the public, property, or the environment\nin accordance with §190.239, the Associate Administrator may issue a safety order.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\nIn your correspondence on this matter, please refer to CPF 4-2016-5014S for each document\nyou submit, please provide a copy in electronic format whenever possible.\nProposed Corrective Measures\nPursuant to 49 U.S.C. §60117(l) and 49 C.F.R. §190.239, PHMSA proposes to issue to ONEOK\nNGL Pipeline, LLC a Safety Order (Order) incorporating the following remedial requirements\nwith respect to its Sterling III Pipeline located in Oklahoma and Texas:\n1. ONEOK must make, at a minimum, an immediate 20% pressure reduction on their\nSterling III Pipeline as required by §195.55 and implement operational constraints on\nthe pump units to reduce the vibration and threat of failure. The pressure reduction and\noperational constraints must remain in place until approval to resume normal operations\nis given by the PHMSA Southwest Region Director.\n2. Within 30 days of receipt of the Order, ONEOK must submit to the PHMSA Southwest\nRegion Director, a complete plan of inspection to determine the full extent of damage\ncaused by the vibration. The plan must be submitted to the Southwest Region Director\nfor approval prior to initiation. The plan, at a minimum, must include nondestructive\nexamination of all piping and welds at the pumps stations by an independent third party\nusing technology adequate to detect any defects and integrity threats resulting from the\nvibrations. These inspections would begin immediately following the Director’s\napproval with a weekly written report of findings submitted to the Southwest Region\nDirector at the same time the report is submitted to ONEOK. The Operator’s proposed\nchoice of the independent third party must also be submitted to the PHMSA Southwest\nRegion Director for approval prior to the commencement of work.\n3. The operator must immediately inform the PHMSA Southwest Region Director of any\nintegrity threatening defects found by the inspection in Item 2. The Operator must also\ninform the PHMSA Southwest Region Director of the repair plans and justify the\nmethod of repair and timing based on the specific defect(s) in writing. The information\nprovided to PHMSA must include details about the type, size, and location of the defect,\nthe proposed repair method, and the timing of the repair.\n\n\n\n5\n4. Within 30 days of receipt of the Order, ONEOK must submit a plan to the PHMSA\nSouthwest Region Director for approval, to perform a complete, systematic analysis of\nthe vibration problem, determine the specific operational conditions where the vibration\noccurs, and propose mitigation measures to prevent damage to the pipeline from the\nvibrations. The proposed plan must be performed by an independent third party,\nincluding a means to verify the effectiveness of the mitigation measures, and perform\nperiodic monitoring of the effectiveness after the mitigation measures are implemented.\nThe independent third party must also be approved by the PHMSA Southwest Region\nDirector prior to the commencement of work.\n5. Based on the results of Item 4, ONEOK must submit to the PHMSA Southwest Region\nDirector a written plan and schedule to implement the specific measures selected by the\nOperator to mitigate the integrity threat caused by the vibration. The plan must be\napproved by the PHMSA Southwest Region Director prior to the commencement of\nwork. The plan may propose a limited implementation followed by monitoring and\ntesting to ensure the effectiveness of the measures. However, ONEOK must complete\ntesting and implementation of the selected mitigative measures at all affected locations\nwithin one year of the Order. If a limited implementation is first proposed to confirm\nthe effectiveness, subsequent required implementation plans must be submitted to the\nSouthwest Region for approval within 30 days after the confirmation period.\n6. The Director may grant an extension of time for compliance with any of the terms of\nthe Safety Order upon a written request timely submitted demonstrating good cause\nfor an extension.\n7. ONEOK may appeal any decision of the Director to the Associate Administrator for\nPipeline Safety. Decisions of the Associate Administrator shall be final.\nThe actions proposed by this Notice of Proposed Safety Order are in addition to and do not\nwaive any requirements that apply to Respondent’s pipeline system under 49 C.F.R. Parts 190\nthrough 199, under any other order issued to Respondent under authority of 49 U.S.C. § 60101\net seq., or under any other provision of Federal or state law.\nAfter receiving and analyzing additional data in the course of this proceeding and\nimplementation of the work plan, PHMSA may identify other safety measures that need to be\ntaken. In that event, Respondent will be notified of any proposed additional measures and, if\nnecessary, amendments to the work plan or Safety Order.\n________________________________ __________________\nR. M. Seeley Date issued\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420165014S_Closure Letter_04122022_(16-153426S)_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nApril 12, 2022\nWalter L. Allen\nVice President, Natural Gas Liquids Operations\nONEOK NGL Pipeline, L.L.C.\n100 West Fifth Street\nTulsa, Oklahoma 74103\nCPF 4-2016-5014S\nDear Mr. Allen:\nOn May 16, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\npursuant to Chapter 601 of 49 United States Code (U.S.C.), issued a Notice of Proposed Safety\nOrder (Notice) to ONEOK NGL Pipeline, L.L.C (ONEOK). The Notice alleged that PHMSA’s\nonsite inspetions of the Sterling III Pipeline identified a risk condition with the aboveground\npumping stations involving the discharge piping subject to mechanical vibration resulting from\nVariable Frequency Drive Units.\nOn December 13, 2019, PHMSA and ONEOK entered into a Consent Agreement and Order to\nresolve the issues underlying the Notice. Over the past two years, PHMSA and ONEOK\nrepresentatives have met to discuss the actions taken to comply with the provisions of the Consent\nAgreement and have reached consensus on the substantial resolution of the three items contained\nin the Consent Agreement. On February 16, 2022, ONEOK submitted a request for closure in\naccordance with Section 26 of the Consent Agreement.\nPHMSA staff reviewed the responses provided to demonstrate compliance with the Consent\nAgreement and determined that ONEOK has substantially complied with the terms of the\nAgreement.\nThis letter is to inform you no further responses in this case are required, and this case is now\nclosed. Thank you for your cooperation.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":38969}