{"operation":"document","citation":"CPF 420165019W","title":"ENERGY TRANSFER COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-05-13","effective_on":null,"summary":"CLOSED warning letter citing 195.64(c)(1)(i), 195.64(c)(1)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165019w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165019w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420165019w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420165019W","body":"Warning Letter involving ENERGY TRANSFER COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.64(c)(1)(i),  195.64(c)(1)(ii). The case was opened on 2016-05-13 and is reported as closed as of 2016-05-13. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420165019W_Warning Letter_ 05132016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165019W/420165019W_Warning%20Letter_%2005132016_text.pdf\n\n420165019W_Warning Letter_05132016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420165019W/420165019W_Warning%20Letter_05132016.pdf\n\n420165019W_Warning Letter_ 05132016_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 13, 2016\nMr. Ryan Coffey\nExecutive Vice President,\nEnergy Transfer Company\n800 E. Sonterra Blvd, #400\nSan Antonio, TX 78258\nCPF 4-2016-5019W\nDear Mr. Coffey:\nOn February 5, 2016, a representative of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your West Texas Natural Gas\nLiquids (NGL) Expansion construction project in Houston, TX.\nAs a result of the inspection, it appears that you have committed a probable violation of the Pipeline Safety\nRegulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation(s)\nare:\n1. §195.64 National Registry of Pipeline and LNG Operators.\n(c) Changes. Each operator must notify PHMSA electronically through the National Registry\nof Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov, of certain events.\n(1) An operator must notify PHMSA of any of the following events not later than 60\ndays before the event occurs:\n(i) Construction or any planned rehabilitation, replacement, modification,\nupgrade, uprate, or update of a facility, other than a section of line pipe, that\ncosts $10 million or more. If 60 day notice is not feasible because of an\nemergency, an operator must notify PHMSA as soon as practicable;\n(ii) Construction of 10 or more miles of a new hazardous liquid pipeline;\n\n\n\nEnergy Transfer Company (ETC) failed to accurately notify PHMSA of the construction of 10 or more\nmiles of a new hazardous liquid pipeline. On September 30, 2015, Energy Transfer Company submitted\ntwo (2) incorrect Operator Registry Notifications to PHMSA stating that the West Texas NGL expansion\nproject encompassed 14 miles of 24-inch diameter and 54 miles of 24-inch diameter carbon steel Intrastate\nNGL pipelines in Ector, Winkler and Midland County.\nAfter discussion with ETC’s representatives and review of the expansion project detailed drawings by a\nPHMSA representative on February 5, 2016, it was determined that the West Texas NGL Expansion\nproject involved replacing two (2) 12-inch segments of an existing interstate pipeline system (Lone-Star\nNGL) and not intrastate as reported on ETC’s Registry Notification to PHMSA. However, after this issue\nwas identified to Energy Transfer by PHMSA, two (2) new Operator Registry Notifications were\nsubmitted with the correct information on February 10, 2016.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of violations.\nFor violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per\nviolation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations.\nWe have reviewed the circumstances and supporting documents involved in this case, and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time. We advise\nyou to correct the item(s) identified in this letter. Failure to do so will result in Energy Transfer Company\nbeing subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 4-\n2016-5019W. Be advised that all material you submit in response to this enforcement action is subject to\nbeing made publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you must\nprovide a second copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n2\n\n420165019W_Warning Letter_05132016.pdf\n\nU.S. Department\n8701 S. Gessner, Suite 630\nof Transportation\nHouston, TX 77074\nPipeline and\nHazardous Materials Safety\nAdministration\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 13, 2016\nMr. Ryan Coffey\nExecutive Vice President,\nEnergy Transfer Company\n800 E. Sonterra Blvd, #400\nSan Antonio, TX 78258\nCPF 4-2016-5019W\nDear Mr. Coffey:\nOn February 5, 2016, a representative of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your West Texas Natural Gas\nLiquids (NGL) Expansion construction project in Houston, TX\nAs a result of the inspection, it appears that you have committed a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolation(s) are:\n1.\n§195.64 National Registry of Pipeline and LNG Operators.\n(c) Changes. Each operator must notify PHMSA electronically through the National\nRegistry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov, of certain events.\n(1) An operator must notify PHMSA of any of the following events not later than 60\ndays before the event occurs:\n(i) Construction or any planned rehabilitation, replacement, modification,\nupgrade, uprate, or update of a facility, other than a section of line pipe, that\ncosts $10 million or more. If 60 day notice is not feasible because of an\nemergency, an operator must notify PHMSA as soon as practicable;\n(i) Construction of 10 or more miles of a new hazardous liquid pipeline;\n\n\n\nEnergy Transfer Company (ETC) failed to accurately notify PHMSA of the construction of 10 or more\nmiles of a new hazardous liquid pipeline. On September 30, 2015, Energy Transfer Company submitted\ntwo (2) incorrect Operator Registry Notifications to PHMSA stating that the West Texas NGL\nexpansion project encompassed 14 miles of 24-inch diameter and 54 miles of 24-inch diameter carbon\nsteel Intrastate NGL pipelines in Ector, Winkler and Midland County.\nAfter discussion with ETC's representatives and review of the expansion project detailed drawings by a\nPHMSA representative on February 5, 2016, it was determined that the West Texas NGL Expansion\nproject involved replacing two (2) 12-inch segments of an existing interstate pipeline system (Lone-Star\nNGL) and not intrastate as reported on ETC's Registry Notification to PHMSA. However, after this\nissue was identified to Energy Transfer by PHMSA, two (2) new Operator Registry Notifications were\nsubmitted with the correct information on February 10, 2016.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of violations.\nFor violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per\nviolation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations.\nWe have reviewed the circumstances and supporting documents involved in this case, and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time. We advise\nyou to correct the items) identified in this letter. Failure to do so will result in Energy Transfer\nCompany being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 4-\n2016-5019W. Be advised that all material you submit in response to this enforcement action is subject\nto being made 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 you must\nprovide a second copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n2","truncated":false,"body_characters":8758}