{"operation":"document","citation":"CPF 420171006","title":"OKTEX PIPELINE COMPANY, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-04-10","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.605(a), 192.605(e), 192.615(a), 192.615(b)(2), 192.709(a), 192.911(l), 192.917(b), 192.937(b), 192.939(a), 192.939(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420171006.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420171006.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420171006","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420171006","body":"Notice of Probable Violation involving OKTEX PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.605(e),  192.615(a),  192.615(b)(2),  192.709(a),  192.911(l),  192.917(b),  192.937(b),  192.939(a),  192.939(b)(1). The case was opened on 2017-04-10 and is reported as closed as of 2018-03-23. Proposed civil penalty: $145,000. Assessed civil penalty: $145,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420171006_Closure  Letter_03232018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_Closure%20%20Letter_03232018.pdf\n\n420171006_Closure Letter_03232018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_Closure%20Letter_03232018_text.pdf\n\n420171006_Final Order_11172017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_Final%20Order_11172017.pdf\n\n420171006_Final Order_11172017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_Final%20Order_11172017_text.pdf\n\n420171006_NOPV PCP PCO_04102017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_NOPV%20PCP%20PCO_04102017.pdf\n\n420171006_NOPV PCP PCO_04102017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_NOPV%20PCP%20PCO_04102017_text.pdf\n\n420171006_Operator Response to Notice_05192017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420171006/420171006_Operator%20Response%20to%20Notice_05192017.pdf\n\n420171006_Closure Letter_03232018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 23, 2018\nWesley Dunbar\nVice President – NGP Operations\nOkTex Pipeline Company, LLC\n100 West Fifth Street\nTulsa, OK 74103\nCPF 4-2017-1006\nDear Mr. Dunbar:\nOn November 17, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to OkTex Pipeline Company, LLC., a Final Order in the above-referenced case. This Final\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation provided and confirmation of payment of the civil penalty, it has been determined\nthat you have complied with the terms of this Order.\nOkTex submitted documentation addressed in the Items in the Final Order on February 14, 2018\nand March 16, 2018. My staff reviewed the documents, and it appears that the required\nassessments have been completed.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary L. McDaniel, P. E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420171006_Final Order_11172017_text.pdf\n\nNovember 17, 2017\nMr. Terry K. Spencer\nPresident and Chief Executive Officer\nONEOK, Inc.\n100 West Fifth Street\nTulsa, OK 74103\nRe: CPF No. 4-2017-1006\nDear Mr. Spencer:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nOkTex Pipeline Company, LLC. It makes findings of violation, assesses a civil penalty of\n$145,000, and specifies actions that need to be taken by OkTex Pipeline to comply with the\npipeline safety regulations. This is to acknowledge receipt of payment of the full penalty\namount, by wire transfer, dated May 19, 2017. When the terms of the compliance order have\nbeen completed, as determined by the Director, Southwest Region, this enforcement action will\nbe closed. Service of the Final Order by certified mail is effective upon the date of mailing as\nprovided 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: Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Wes Dunbar, Vice President Operations, ONEOK, Inc.\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____________________________________\nIn the Matter of )\nOkTex Pipeline Company, LLC, ) CPF No. 4-2017-1006\na subsidiary of ONEOK, Inc., )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom May through October, 2016, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of OkTex\nPipeline Company, LLC (OkTex or Respondent), a subsidiary of ONEOK, Inc. (ONEOK),1\nOkTex operates natural gas pipelines in Oklahoma and Texas, with interconnections to pipelines\nin New Mexico and Mexico.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 10, 2017, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included warnings pursuant to\n49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nOkTex had committed three violations of 49 C.F.R. Part 192 and proposed assessing a civil\npenalty of $145,000 for the alleged violations. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violations. The warning items required no further\naction, but warned the operator to correct the probable violations or face possible future\nenforcement action.\nONEOK, on behalf of OkTex, responded to the Notice by letter dated May 18, 2017 (Response).\nThe company did not contest the allegations of violation, paid the proposed civil penalty of\n$145,000, and agreed to complete the proposed compliance actions. In accordance with\n49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate Administrator to make\n1 OkTex is owned by ONEOK Partners, LP. See OkTex Pipeline Company, LLC, website, available at\nhttp://okt.oneokpartners.com/About (last accessed August 9, 2017). However, as of June 30, 2017, ONEOK\nPartners, LP, was acquired by ONEOK, Inc. See ONEOK, Inc. website, available at http://ir.oneok.com/news-and-\nevents/press-releases/2017/06-30-2017-211557242 (last accessed August 9, 2017).\n2 See OkTex Pipeline, LLC, website, available at http://okt.oneokpartners.com/About and\nhttp://okt.oneokpartners.com/~/media/NGP/OKT/SystemMap/OKTSystemMap.ashx (last accessed August 9, 2017).\n\n\n\nCPF No. 4-2017-1006\nPage 2\nfindings of violation and to issue this final order. Respondent did not request a hearing and\ntherefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the allegations in the Notice that it violated\n49 C.F.R. Part 192, as follows:\nItem 6: The Notice alleged that Respondent violated 49 C.F.R. § 192.937(b), which states:\n§ 192.937 What is a continual process of evaluation and assessment to\nmaintain a pipeline's integrity?\n(a) General. After completing the baseline integrity assessment of a\ncovered segment, an operator must continue to assess the line pipe of that\nsegment at the intervals specified in § 192.939 and periodically evaluate the\nintegrity of each covered pipeline segment as provided in paragraph (b) of\nthis section . . . .\n(b) Evaluation. An operator must conduct a periodic evaluation as\nfrequently as needed to assure the integrity of each covered segment. The\nperiodic evaluation must be based on a data integration and risk assessment\nof the entire pipeline as specified in § 192.917. For plastic transmission\npipelines, the periodic evaluation is based on the threat analysis specified in\n[§] 192.917(d). For all other transmission pipelines, the evaluation must\nconsider the past and present integrity assessment results, data integration\nand risk assessment information (§ 192.917), and decisions about\nremediation (§ 192.933) and additional preventive and mitigative actions\n(§ 192.935). An operator must use the results from this evaluation to\nidentify the threats specific to each covered segment and the risk\nrepresented by these threats.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.937(b) by failing to perform a\nperiodic evaluation on its Norteno 1, Norteno 4, and Norteno 5 pipelines as frequently as needed\nto assure the integrity of each covered segment. OkTex performed baseline assessments of the\nthree lines on July 19, November 6, and November 5, 2007, respectively. However, OkTex was\nunable to provide any documentation demonstrating that the company subsequently performed\nperiodic evaluations of the three lines, as required under § 192.937(b).\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.937(b) by failing to perform\nperiodic evaluations on three of its pipelines.\nItem 7: The Notice alleged that Respondent violated 49 C.F.R. § 192.939(a), which states:\n§ 192.939 What are the required reassessment intervals?\nAn operator must comply with the following requirements in\n\n\n\nCPF No. 4-2017-1006\nPage 3\nestablishing the reassessment interval for the operator's covered pipeline\nsegments.\n(a) Pipelines operating at or above 30% SMYS. An operator must\nestablish a reassessment interval for each covered segment operating at or\nabove 30% SMYS in accordance with the requirements of this section. The\nmaximum reassessment interval by an allowable reassessment method is\nseven years. . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.939(a) by failing to reassess a\ncovered pipeline segment operating above 30 percent SMYS within the required reassessment\ninterval of seven years. Specifically, the Notice alleged that OkTex failed to reassess the\nNorteno 1 pipeline, a covered pipeline system in OkTex’s El Paso Unit operating above 30\npercent SMYS. The Norteno 1 pipeline had previously been assessed on July 19, 2007, but not\nreassessed again until November 4, 2015. The reassessment should have been performed by July\n2014. ONEOK’s NGP IMP procedures require that, after completion of the baseline assessment\non a covered segment, OkTex must continually monitor and reassess covered segments within\nseven years.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.939(a) by failing to reassess a\npipeline segment within the required reassessment interval.\nItem 8: The Notice alleged that Respondent violated 49 C.F.R. § 192.939(b), which states:\n§ 192.939 What are the required reassessment intervals?\nAn operator must comply with the following requirements in\nestablishing the reassessment interval for the operator's covered pipeline\nsegments.\n(a) . . . .\n(b) Pipelines Operating Below 30% SMYS. An operator must establish\na reassessment interval for each covered segment operating below 30%\nSMYS in accordance with the requirements of this section. The maximum\nreassessment interval by an allowable reassessment method is seven\nyears . . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.939(b) by failing to reassess two\ncovered pipeline segments operating below 30 percent SMYS within the required reassessment\ninterval of seven years. Specifically, the Notice alleged that OkTex failed to reassess the\nNorteno 4 and Norteno 5 pipelines, covered pipeline systems in OkTex’s El Paso Unit operating\nbelow 30 percent SMYS. The two pipelines had previously been assessed on November 6 and\nNovember 5, 2007, respectively. The reassessments of both the Norteno 4 and Norteno 5\npipelines should have been performed by November 2014. Neither pipeline had been reassessed\nas of the date of PHMSA’s 2016 inspection.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.939(b) by failing to reassess two\n\n\n\nCPF No. 4-2017-1006\nPage 4\npipeline segments within the required reassessment interval.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken 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.3 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 $145,000 for the violations cited above.\nItem 6: The Notice proposed a civil penalty of $53,500 for Respondent’s violation of 49 C.F.R.\n§ 192.937(b), for failing to perform periodic evaluations on three of its pipelines. OkTex neither\ncontested the allegation nor presented any evidence or argument justifying a reduction in the\nproposed penalty. Accordingly, having reviewed the record and considered the assessment\ncriteria, I assess Respondent a civil penalty of $53,500 for violation of 49 C.F.R. § 192.937(b).\nItem 7: The Notice proposed a civil penalty of $43,200 for Respondent’s violation of 49 C.F.R.\n§ 192.939(a), for failing to reassess a pipeline segment within the required reassessment interval.\nOkTex neither contested the allegation nor presented any evidence or argument justifying a\nreduction in the proposed penalty. Accordingly, having reviewed the record and considered the\nassessment criteria, I assess Respondent a civil penalty of $43,200 for violation of 49 C.F.R.\n§ 192.939(a).\nItem 8: The Notice proposed a civil penalty of $48,300 for Respondent’s violation of 49 C.F.R.\n§ 192.939(b), for failing to reassess two pipeline segments within the required reassessment\ninterval. OkTex neither contested the allegation nor presented any evidence or argument\njustifying a reduction in the proposed penalty. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $48,300 for violation of\n49 C.F.R. § 192.939(b).\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 $145,000. Payment of this penalty\nwas received by PHMSA on May 19, 2017.\n3 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum\nCivil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\n\n\n\nCPF No. 4-2017-1006\nPage 5\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 6 and 8 in the Notice for\nviolations of 49 C.F.R. §§ 192.937(b) and 192.939(b), respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of gas or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 192.937(b) (Item 6), Respondent must conduct\nevaluations and assessments of its facilities, as required by 49 C.F.R. § 192.937,\nwithin 90 days of receipt of this Order. Respondent must provide a copy of the\nevaluation results to PHMSA.\n2. With respect to the violation of § 192.939(b) (Item 8), Respondent must conduct\nreassessments of its facilities as required by 49 C.F.R. § 192.939, within 90 days of\nreceipt of this Order. Respondent must provide a copy of the reassessment results to\nPHMSA.\nIt is requested that OkTex maintain documentation of the safety improvement costs associated\nwith fulfilling this Compliance Order and submit the total to the Director, Southwest Region,\nPipeline and 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, additions and\nother changes to pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nWARNING ITEMS\nWith respect to Items 1, 2, 3, 4, and 5, the Notice alleged probable violations of Part 192 but did\nnot propose a civil penalty or compliance order for these items. Therefore, these are considered\nto be warning items. The warnings were for:\n\n\n\nCPF No. 4-2017-1006\nPage 6\n49 C.F.R. § 192.605(a) (Item 1) ─ Respondent’s alleged failure to follow\nONEOK procedures for documenting the annual review of OkTex’s Emergency\nPlan;\n49 C.F.R. § 192.615(b)(2) (Item 2) ─ Respondent’s alleged failure to follow\nONEOK procedures for documenting emergency response training;\n49 C.F.R. § 192.709 (Item 3) ─ Respondent’s alleged failure to maintain records\nof a repair by accurately completing the Pipeline Inspection Program and\nEvaluation form in accordance with ONEOK procedures;\n49 C.F.R. § 192.911(l) (Item 4) ─ Respondent’s alleged failure to have and\nfollow a quality assurance process for its integrity management program (IMP) by\nconducting an annual IMP audit in accordance with ONEOK procedures; and\n49 C.F.R. § 192.917(b) (Item 5) ─ Respondent’s alleged failure to demonstrate\nthat data was gathered and evaluated to identify potential threats to a covered\npipeline segment, in accordance with ASME B31.8S, Section 4.\nOkTex presented information in its Response showing that it is taking certain actions to address\nthe cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nNovember 17, 2017\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420171006_NOPV PCP PCO_04102017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 10, 2017\nWesley Dunbar\nVice President – NGP Operations\nOkTex Pipeline Company, LLC\n100 West Fifth Street\nTulsa, OK 74103\nCPF 4-2017-1006\nDear Mr. Dunbar:\nFrom May 2016 to October 2016, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code inspected your OkTex Pipeline Company, LLC (OkTex) pipeline and facilities in El\nPaso and Oklahoma.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violations are:\n1. §192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\n\n\n\nemergency response. For transmission lines, the manual must also include procedures\nfor handling abnormal operations. This manual must be reviewed and updated by the\noperator at intervals not exceeding 15 months, but at least once each calendar year.\nThis manual must be prepared before operations of a pipeline system commence.\nAppropriate parts of the manual must be kept at locations where operations and\nmaintenance activities are conducted.\n(e) Surveillance, emergency response, and accident investigation. The procedures\nrequired by §§192.613(a), 192.615, and 192.617 must be included in the manual\nrequired by paragraph (a) of this section.\nOkTex Pipeline failed to follow ONEOK procedures for documenting the annual review\nof the Emergency Plan as listed in the ONEOK Partners O&M plan. ONEOK Partners\nO&M plan; OKSops3.080.403 (date issued: 12/31/2009; date revised: 9/13/2013 Rev14);\nSection 6-Recordkeeping requirements, states that Form 80.403A should be used to\ndocument the review of the Emergency Plan. No record was available to document the\nannual review as required.\n2. §192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n(b) Each operator shall:\n(2) Train the appropriate operating personnel to assure that they are knowledgeable\nof the emergency procedures and verify that the training is effective.\nOkTex Pipeline failed to follow ONEOK Partners procedures in documenting emergency\nresponse training in accordance with the ONEOK Partners O&M plan. ONEOK Partners\nO&M plan; OKSops3.080.403 – Emergency Plan (date issued: 12/31/2009; date revised:\n9/13/2013 Rev14); Section 6-Recordkeeping requirements. Section 6.2 states that Form\n80.403B- Simulated Emergency Training should be used to document dates, attendance\nand subject matter of the training.\nAccording to ONEOK representatives, OkTex Pipeline personnel also operate other assets\nowned by ONEOK Partners and attend emergency response training that is conducted on\nthose assets. Mock Drills were conducted in Enid, Oklahoma for the El Reno teams in\n2014 and 2015. This training was not documented on the form as referenced in the\nONEOK Partners procedure that has an area to list team members who are present. There\nwere references to teams being present but no evidence of what employees attended these\ndrills (sign-in sheets, list of attendees, etc).\n2\n\n\n\n3. §192.709 Transmission lines: Recordkeeping.\nEach operator shall maintain the following records for transmission lines for the\nperiods specified:\n(a) The date, location, and description of each repair made to pipe (including pipe-to-\npipe connections) must be retained for as long as the pipe remains in service.\nOkTex failed to accurately complete the Pipeline Inspection Program and Evaluation\n(PIPE) form as outlined in the ONEOK Procedure OKSops 3.040.102. On January 15,\n2016, a leak was found on the Norteno 4 pipeline system (251 LaMesa, El Paso, TX).\nOkTex failed to complete Section 3-External Corrosion Details on the PIPE form when the\ncause of the leak was listed as external corrosion in Section 6 of the form. The form\nindicated that neither an external Corrosion Inspection was performed, nor was there any\nsign of external corrosion. OkTex indicated the cause was determined by visual\nexamination.\n4. §192.911 What are the elements of an integrity management program?\nAn operator's initial integrity management program begins with a framework\n(see §192.907) and evolves into a more detailed and comprehensive integrity\nmanagement program, as information is gained and incorporated into the program.\nAn operator must make continual improvements to its program. The initial program\nframework and subsequent program must, at minimum, contain the following\nelements. (When indicated, refer to ASME/ANSI B31.8S (incorporated by\nreference, see§192.7) for more detailed information on the listed element.)\n(l) A quality assurance process as outlined in ASME/ANSI B31.8S, section 12.\nOkTex Pipeline failed to conduct an Annual IMP Audit as required by the ONEOK NGP\nIMP written integrity management program. ONEOK’s written IMP, Chapter 14; Section\n14.3.3 states that “Each year, Pipeline Integrity members (IMPC) will conduct an Annual\nIMP Audit that will review and verify HCAs, risk assessments, compliance and other\nvarious documents necessary to maintain compliance with the regulations. The audit will\nbe led by the Supervisor Prevention and Mitigation and will be completed in the first\nquarter of every year. The computer based maintenance management system will be used\nto schedule this review. The review forms are found at the end of this chapter.”\n3\n\n\n\n5. §192.917 How does an operator identify potential threats to pipeline integrity\nand use the threat identification in its integrity program?\n(b) Data gathering and integration. To identify and evaluate the potential threats to a\ncovered pipeline segment, an operator must gather and integrate existing data and\ninformation on the entire pipeline that could be relevant to the covered segment. In\nperforming this data gathering and integration, an operator must follow the\nrequirements in ASME/ANSI B31.8S, section 4. At a minimum, an operator must\ngather and evaluate the set of data specified in Appendix A to ASME/ANSI B31.8S,\nand consider both on the covered segment and similar non-covered segments, past\nincident history, corrosion control records, continuing surveillance records,\npatrolling records, maintenance history, internal inspection records and all other\nconditions specific to each pipeline.\nOkTex failed to provide documentation to demonstrate that data was gathered and\nevaluated as specified in ASME B31.8S, section 4 for the Norteno 1 pipeline system.\nRecords show that Norteno 1 was reassessed by hydro testing the segment on November\n4, 2015. During the records inspection, documentation of the data gathering process was\nrequested and the operator provided records on the hydro-test and a “NGL Integrity\nManagement Program 6.01: Data Integration form”. This form appeared to be for a liquid\nsystem and the information on the form was inaccurate and was not data from the Norteno\n1 pipeline segment.\n6. §192.937 What is a continual process of evaluation and assessment to maintain a\npipeline’s integrity?\n(b) Evaluation. An operator must conduct a periodic evaluation as frequently as\nneeded to assure the integrity of each covered segment. The periodic evaluation must\nbe based on a data integration and risk assessment of the entire pipeline as specified\nin §192.917. For plastic transmission pipelines, the periodic evaluation is based on\nthe threat analysis specified in §192.917(d). For all other transmission pipelines, the\nevaluation must consider the past and present integrity assessment results, data\nintegration and risk assessment information (§192.917), and decisions about\nremediation (§192.933) and additional preventive and mitigative actions (§192.935).\nAn operator must use the results from this evaluation to identify the threats specific\nto each covered segment and the risk represented by these threats.\nOkTex Pipeline failed to perform a periodic evaluation on the Norteno 1, Norteno 4 and the\nNorteno 5 to assure pipeline integrity. OkTex performed a baseline assessment of Norteno\n1 on July 19, 2007, Norteno 4 on November 6, 2007, and Norteno 5 on November 5, 2007.\nDuring the inspection, OkTex was not able to provide documentation to demonstrate that\n4\n\n\n\nthe company has ever performed a periodic evaluation as required by §192.937 on the\ncovered segments as required.\n7. §192.939 What are the required reassessment intervals?\n(a) Pipelines operating at or above 30% SMYS. An operator must establish a\nreassessment interval for each covered segment operating at or above 30% SMYS in\naccordance with the requirements of this section. The maximum reassessment\ninterval by an allowable reassessment method is seven years. If an operator\nestablishes a reassessment interval that is greater than seven years, the operator must,\nwithin the seven-year period, conduct a confirmatory direct assessment on the\ncovered segment, and then conduct the follow-up reassessment at the interval the\noperator has established. A reassessment carried out using confirmatory direct\nassessment must be done in accordance with §192.931. The table that follows this\nsection sets forth the maximum allowed reassessment intervals.\nOkTex Pipeline failed to reassess a pipeline system operating above 30% SMYS in the El\nPaso Unit within the required reassessment interval of seven years. The Norteno 1 was\npreviously assessed on July 19, 2007 via pressure test. The reassessment of Norteno 1 did\nnot occur until November 4, 2015. Norteno 1 operates above 30% SMYS and this\nreassessment should have been performed in July of 2014. ONEOK NGP IMP procedures\nstate that after completing the baseline assessment of a covered segment, the segment is\ncontinually monitored and reassessed within seven years of the initial assessment. This\nsystem has not had a reassessment within the required reassessment interval of seven years.\n8. §192.939 What are the required reassessment intervals?\n(b) Pipelines Operating Below 30% SMYS. An operator must establish a reassessment\ninterval for each covered segment operating below 30% SMYS in accordance with\nthe requirements of this section. The maximum reassessment interval by an\nallowable reassessment method is seven years. An operator must establish\nreassessment by at least one of the following—\n(1) Reassessment by pressure test, internal inspection or other equivalent\ntechnology following the requirements in paragraph (a)(1) of this section\nexcept that the stress level referenced in paragraph (a)(1)(ii) of this section\nwould be adjusted to reflect the lower operating stress level. If an established\ninterval is more than seven years, the operator must conduct by the seventh\nyear of the interval either a confirmatory direct assessment in accordance with\n§192.931, or a low stress reassessment in accordance with §192.941.\nOkTex Pipeline failed to reassess two pipeline systems operating below 30% SMYS in the\nEl Paso Unit within the required reassessment interval of seven years. The Norteno 4 and\nNorteno 5 pipelines were previously assessed on November 6, 2007 and November 5,\n5\n\n\n\n2007, respectively. Both pipelines operate below 30% SMYS and the reassessment of\nthese two lines should have been performed by November 2014. ONEOK NGP IMP\nprocedures state that after completing the baseline assessment of a covered segment, the\nsegment is continually monitored and reassessed within seven years of the initial\nassessment. These systems have not had a reassessment within the required reassessment\ninterval of seven years.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $205,638\nper violation per day the violation persists up to a maximum of $2,056,380 for a related series of\nviolations. For violations occurring between January 4, 2012 to August 1, 2016, the maximum\npenalty may not exceed $200.000 per violation per day, with a maximum penalty not to exceed\n$2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the\nmaximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to\nexceed $1,000,000 for related series of violations. The Compliance Officer has reviewed the\ncircumstances and supporting documentation involved in the above probable violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $145,000 as follows:\nItem number PENALTY\nItem 6 $53,500\nItem 7 $43,200\nItem 8 $48,300\nWarning Items\nWith respect to items 1, 2, 3, 4 and 5, PHMSA has reviewed the circumstances and supporting\ndocuments involved in this case and have decided not to conduct additional enforcement action or\npenalty assessment proceedings at this time. We advise you to promptly correct these item(s).\nFailure to do so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to items 6 and 8, pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to OkTex.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\n6\n\n\n\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice, this constitutes a\nwaiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 4-2017-1006 and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Response Options for Pipeline Operators in Compliance Proceedings\n7\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to OkTex a Compliance Order incorporating the\nfollowing remedial requirements to ensure the compliance of OkTex with the pipeline safety\nregulations:\n1. 2. 3. 4. In regard to Item Number 6 of the Notice pertaining to the failure to conduct\nperiodic evaluation and assessment to assure the integrity of covered segments,\nOkTex must conduct evaluations and assessments of their facility as required by\n§192.937.\nIn regard to Item Number 8 of the Notice pertaining to the failure to conduct the\nreassessments to assure the integrity of covered segments, OkTex must conduct the\nreassessments as required by §192.939.\nPertaining to items above of the Proposed Compliance Order, OkTex must\ncomplete the required reassessments and evaluations within 90 days of the date of\nthe of the issuance of a Compliance Order and provide a copy of the results to\nPHMSA.\nIt is requested (not mandated) that OkTex maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to R.M. Seeley, Director, Southwest Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in two\ncategories: 1) total cost associated with preparation/revision of plans, procedures,\nstudies and analyses, and 2) total cost associated with replacements, additions and\nother changes to pipeline infrastructure.\n8\n\n420171006_Closure  Letter_03232018.pdf\n\nof Transportation\nU.S. Department\n8701 S. Gessner, Suite 630\nHouston, TX 77074\nPipeline and\nHazardous Materials Safety\nAdministration\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 23, 2018\nWesley Dunbar\nVice President - NGP Operations\nOkTex Pipeline Company, LLC\n100 West Fifth Street\nTulsa, OK 74103\nCPF 4-2017-1006\nDear Mr. Dunbar:\nOn November 17, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to OkTex Pipeline Company, LLC., a Final Order in the above-referenced case. This Final\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation provided and confirmation of payment of the civil penalty, it has been determined\nthat you have complied with the terms of this Order.\nOkTex submitted documentation addressed in the Items in the Final Order on February 14, 2018\nand March 16, 2018. My staff reviewed the documents, and it appears that the required\nassessments have been completed.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary ly. McDaniel, P. E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":36584}