{"operation":"document","citation":"CPF 420175035","title":"ENTERPRISE PRODUCTS OPERATING LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-11-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.452(b)(1), 195.452(b)(4)(ii), 195.452(b)(5), 195.507(a)(3), 195.507(b), 195.575(e), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175035.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175035.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175035","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420175035","body":"Notice of Probable Violation involving ENTERPRISE PRODUCTS OPERATING LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.452(b)(1),  195.452(b)(4)(ii),  195.452(b)(5),  195.507(a)(3),  195.507(b),  195.575(e),  195.589(c). The case was opened on 2017-11-02 and is reported as closed as of 2019-04-02. Proposed civil penalty: $69,700. Assessed civil penalty: $33,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420175035_Closure Letter_04022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_Closure%20Letter_04022019.pdf\n\n420175035_Closure Letter_04022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_Closure%20Letter_04022019_text.pdf\n\n420175035_Final Order_12202018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_Final%20Order_12202018.pdf\n\n420175035_Final Order_12202018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_Final%20Order_12202018_text.pdf\n\n420175035_NOPV PCP PCO_11022017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_NOPV%20PCP%20PCO_11022017.pdf\n\n420175035_NOPV PCP PCO_11022017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_NOPV%20PCP%20PCO_11022017_text.pdf\n\n420175035_Operator Request for Hearing_02282018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_Operator%20Request%20for%20Hearing_02282018.pdf\n\n420175035_Operator Response to Notice_02282018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175035/420175035_Operator%20Response%20to%20Notice_02282018.pdf\n\n420175035_NOPV PCP PCO_11022017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 2, 2017\nBacon Graham\nExecutive Vice President\nEnterprise Products Operating\n1100 Louisiana Street\nHouston Texas 77002\nCPF 4-2017-5035\nDear Mr. Graham:\nOn January 9 2017 through May 24 2017, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) inspected Enterprise Products Operating LLC (Enterprise) procedures\nfor Operations and maintenance were inspected in Houston, Texas.\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 (CFR). The items inspected\nand the probable violations are:\n\n\n\n1. §195.507– Record Keeping\nEach operator shall maintain records that demonstrate compliance with this subpart.\n(a) Qualification records shall include:\n(3) Dates of current qualification;\n(b) Records supporting an individual’s current qualification shall be maintained while\nThe individual is performing the covered task. Records of prior qualification and\nrecords of individuals no longer performing covered tasks shall be retained for a\nperiod of five years.\nA review of Appendix H of Enterprise’s Operator Qualification plan(OQ) revealed that\nthree of the OQ reports listed there do show that current qualification records for\nindividuals performing those covered tasks under the mutual assistance requirements of the\nplan were not on record. The affected OQ records are for Koch Pipeline (last reviewed on\n06/27/2011), Conoco Phillips (last reviewed on 05/10/2011) and Energy Transfer (Lone\nStar NGL last reviewed on 7/28/2011). Section 4 of the OQ plan under the subtitle of\n“Covered Tasks” states that at a minimum the established reevaluation frequency will not\nexceed 5 years. Hence the listed OQ records above all expired in 2016 (Koch- 06/27/2016,\nConoco Phillips- 05/10/2016, Energy Transfer – 07/28/2016) and no requalification\n69,records had been obtained at the time of this inspection.\n2. §195.575-Which facilities must I electrically isolate and what inspection tests, and\nSafeguards are required?\n(e) If a pipeline is in close proximity to electrical transmission power footings, ground\ncables, or counterpoise or in other areas where it is reasonable to foresee fault\ncurrents or an unusual risk of lightning, you must protect the pipeline against damage\nfrom fault currents or lightning and take protective measures at insulating devices.\nEnterprise’s Chaparral Line is in close proximity to electrical transmission power lines for\na considerable length of miles between Mont Belvieu and Bryan TX, but is not protected\nfrom the risk of damage from the effects of fault currents or lightning even when\nEnterprise’s Standard 7006 in section 1.2 references NACE SP0177 (Mitigation of\nAlternating Current and Lightning Effects on Metallic Structures and Corrosion Control\nSystems) as the primary reference to be utilized in determining the protective measure to\nbe taken and implemented.\nEnterprise did not provide any record that showed the line was protected from the effects\nof the usual risk of fault currents or lightning.\n2\n\n\n\n3. Enterprise representatives stated during a meeting with PHMSA on August 16, 2017 that\nthere was no protection for this line from lightning or fault currents and as such did not\nhave any records to provide. They also stated that no engineering analysis had been\ncarried out to determine the effects of the fault currents or lightning on the pipeline at the\nlocation.\n§195.402-Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall\nbe reviewed at intervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a pipeline\nsystem commence, and appropriate parts shall be kept at locations where\noperations and maintenance activities are conducted.\nEnterprise Products Operating, LLC failed to update its procedure for “close interval\npotential survey specification” – CP 05 to ensure it was effective for all close interval\npotential surveys even after realizing from survey records in 2015 that the procedure\nwas the source of errors in measurements taken while carrying out a close interval\nsurvey on the Chaparral pipeline system.\nEnterprise representatives stated during a meeting on August 16, 2017 with PHMSA\nthat results from a close interval survey on the portion of the Chaparral pipeline\nbetween Mont Belvieu and Bryan Texas carried out in February through march of 2015\nincluded errors and resulted in elevated AC measurements which could be attributed to\nthe #32-gauge wire which was run underneath high voltage power lines. A follow up\nsurvey conducted on July 30, 2015 showed some of the readings being much lower\nthan initially taken at those locations. Enterprise’s personnel stated that this error could\nbe directly attributed to the procedure and proffered to make the required changes to\nthe procedure to avoid any such errors to the survey readings in the future. A copy of\nthe corrected procedure was submitted to PHMSA on September 12, 2017 and reflected\nthe changes made on August 24, 2017.\nEnterprise products operating, LLC failed to make the required update to its procedure\nfor over 2 years even when they were aware of needed update and carried out other\nsurveys using the same procedure.\n3\n\n\n\n4. §195.452 – Pipeline Integrity Management in high consequence areas\n(b) Each operator of a pipeline covered by this section must:\n(1) Develop a written integrity management program that addresses the risks on each\nsegment of pipeline in the first column of the following table not later than the date\nin the second column:\n(4) Include in the program a framework that-\n(ii) Initially indicates how decisions will be made to implement each element.\n(5) Implement and follow the program\nEnterprise Products Operating LLC failed to follow its Line Pipe Risk Analysis procedure (IM\nProcedure 2-01L) developed as part of its Integrity Management Program to address risks on its\nPipeline systems and in this particular case the Maljamar to Maljamar Launcher segment. Records\nfor the Information Analysis carried out on December 4,2014 includes information from the risk\nassessment completed for this line segment and incorporated as part of the information analyzed\nin the report which shows a high probability risk score of 10 out of a total score of 10 for the threat\nof Stress Corrosion Cracking(SCC). The report attributed the excessively high score to the lack of\navailable information on the coating type on the line segment thereby allowing for a misguided\nreview from the reviewing personnel. However, a review of records for Coating and CP source\nprovided by Enterprise during the screening exercise showed that the information on the coating\ntype for this Line segment was available and showed it to be Coal Tar Enamel which if properly\nentered in the risk assessment would have allowed for the analyst to consider the score and be\nproperly guided in evaluating the condition of the line at the time.\nThe IM procedure 2-01L in section 2-01.2.2 requires the Pipeline Integrity Engineer to be\nresponsible for the collection of this data from about 12 sources and provides for the validation of\nthe Risk analysis results and data inputted to ensure that the process works well.\nInformation Analysis carried out on December 4,2014 for the Maljamar to Maljamar Launcher\nsegment includes the record of the risk assessment for the threat of Stress Corrosion Cracking with\na probability score of 10 out of a total of 10 and the note stating the coating type was unknown\nallowing for a misguided review from the analyst reviewing the information\n5. §195.589 – What corrosion control information do I have to maintain\n(C) You must maintain a record of each analysis, check, demonstration, examination,\ninspection, investigation, review, survey, and test required by this subpart in sufficient detail\nto demonstrate the adequacy of corrosion control measures or that corrosion requiring\ncontrol measures does not exist. You must retain these records for at least 5 years, except\nthat records related to 195.569, 195.573(a) and (b) and 195.579(b)(3) and (c) must be retained\nfor as long as the pipeline remains in service.\n4\n\n\n\nEnterprise Products Operating LLC’s corrosion control records for the section of the Chaparral\nline between Conroe and Mont Belvieu in Texas lacks sufficient details to demonstrate the\nadequacy of the corrosion control measures in place. A comparison of the close interval survey\nrecords conducted on March 12, 2015,with records of AC readings on the remedial action form\nfrom July 23, 2015 and the survey report from May 26, 2017(specifically intended to capture\nreadings from locations with high readings on the CIS survey but still no readings were taken at\nthe required locations) in addition to previous annual survey records from 2015 through\n2017(scarcely has any AC readings even at the locations with the high readings from the 2015 CIS\nsurvey) does present a number of questions concerning the adequacy of the corrosion control\nmeasures in place.\nDuring a meeting with Enterprise personnel on August 16, 2017 representatives from Enterprise\ntried to clarify some of questions posed in these records. Sufficient detail in the records would\nexplain how high AC readings (attributed to errors from the #32-gauge wire and the procedure\nutilized for the survey) dropped so low without any remediation to the readings recorded on July\n23, 201. Also there were no other readings from 3 years of survey at same locations to compare\nand make a determination of adequacy of the corrosion control measures in place for the protection\nof the pipeline and safety of personnel carrying out the surveys / testing’s.\nWithout the meeting with Enterprise’s personnel for clarification, the records independently raise\nquestions on the adequacy of the corrosion control measures in place.\nProposed Civil Penalty\nAs of April 27, 2017, under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil\npenalty not to exceed $209,002 per violation per day the violation persists up to a maximum of\n$2,090,022 for a related series of violations. The Compliance Officer has reviewed the\ncircumstances and supporting documentation involved in the above probable violations and has\nrecommended that you be preliminarily assessed a civil penalty of $69,700 as follows:\nItem number PENALTY\n1 $33,500\n2 $36,200\nWarning Items\nWith respect to items 3,4 and 5, we have reviewed the circumstances and supporting documents\ninvolved in this case and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to promptly correct these items. Failure to\ndo so may result in additional enforcement action.\n5\n\n\n\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Enterprise Products\nOperating, LLC. Please refer to the Proposed Compliance Order, which is enclosed and made a\npart of this Notice.\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 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\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from the receipt of this Notice. This\nperiod may be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 4-2017-5035 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nFrank Causey\nActing Director, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n6\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 Enterprise Products Operating, LLC a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Enterprise\nProducts Operating, LLC with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number 1 of the Notice pertaining to the mutual assistance\nprogram and the requirements for reviewing and maintaining qualification records\nand program reviews contained within, Enterprise Products Operating, LLC shall\nrevise the process to ensure that all personnel carrying out covered tasks under the\nmutual assistance program are qualified and records showing current qualifications\nare maintained.\nItem 1 shall be submitted to PHMSA no later than 30 days from the issuance of the\nFinal Order in this case.\nIt is requested (not mandated) that Enterprise Products Operating, LLC maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Terri Binns, Acting Director, Southwest\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n7\n\n420175035_Final Order_12202018_text.pdf\n\nDecember 20, 2018\nMr. A. J. Teague\nDirector and Chief Executive Officer\nEnterprise Products Partners, LP\n1100 Louisiana Street, 10th Floor\nHouston, TX 77002\nRe: CPF No. 4-2017-5035\nDear Mr. Teague:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nEnterprise Products Operating LLC. It withdraws one alleged violation and associated civil\npenalty, makes a finding of violation for another, assesses a civil penalty of $33,500, and\nspecifies actions that need to be taken by Enterprise to comply with the pipeline safety\nregulations. The penalty payment terms are set forth in the Final Order. When the civil penalty\nhas been paid and the terms of the compliance order completed, as determined by the Director,\nSouthwest Region, this enforcement action will be closed. Service of the Final Order by\ncertified mail is effective upon the date of mailing 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: Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. James B. Curry, Esq., and Brianne K. Kurdock, Esq., Babst, Calland, Clements and\nZomnir, PC, 505 9th Street, N.W., Suite 700, Washington, D.C. 20004, Counsel for\nEnterprise Products Operating, LLC\nMr. Graham W. Bacon, Executive Vice President, Operations and Engineering,\nEnterprise Products Partners, LP\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 )\nEnterprise Products Operating, LLC, ) CPF No. 4-2017-5035\na subsidiary of Enterprise Products Partners, LP, )\n)\n)\n)\nRespondent. )\n________________________________________________)\nFINAL ORDER\nFrom January 9 through May 24, 2017, 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 Enterprise\nProducts Operating, LLC (EPO or Respondent), in Houston, Texas. EPO is a wholly-owned\nsubsidiary of Enterprise Partners, LP (Enterprise).1 Enterprise conducts substantially all of its\noperations through EPO, including more than 50,000 miles of pipeline and approximately 260\nmillion barrels of hazardous-liquid storage capacity.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated November 2, 2017, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included warnings pursuant to 49\nC.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nEnterprise had violated 49 C.F.R. §§ 195.507 and 195.575(e) and proposed assessing a civil\npenalty of $69,700 for the alleged violations.3 The Notice also proposed ordering Respondent to\ntake certain measures to correct one of the alleged violations. The warning items required no\nfurther action but warned the operator to correct the probable violations or face possible future\nenforcement action.\n1 Enterprise Products Partners, LP, Form 10-Q submitted to U.S. Securities and Exchange Commission, available at\nhttp://services.corporate-\nir.net/SEC/Document.Service?id=P3VybD1hSFIwY0RvdkwyRndhUzUwWlc1cmQybDZZWEprTG1OdmJTOWti\nM2R1Ykc5aFpDNXdhSEEvWVdOMGFXOXVQVkJFUmlacGNHRm5aVDB4TWpNNU5UYzJOaVp6ZFdKemF\nXUTlOVGM9JnR5cGU9MiZmbj1FbnRlcnByaXNlUHJvZHVjdHNQYXJ0bmVyc0wucGRm (last accessed\nNovember 8, 2018).\n2 Enterprise Products Partners, LP, website, available at https://www.enterpriseproducts.com/about-us/business-\nprofile (last accessed November 8, 2018).\n3 The Notice was issued in conjunction with a separate Notice of Amendment (CPF No. 4-2017-5036M). An Order\nDirecting Amendment in that case will be issued separately.\n\n\n\nCPF No. 4-2017-5035\nPage 2\nAfter requesting and receiving an extension of time to respond, Enterprise responded to the\nNotice by letter dated February 28, 2018 (Response). Respondent contested one of the\nallegations and requested a hearing on that item. By email dated May 4, 2018, Respondent\nwithdrew its request for a hearing and thereby authorized the entry of this Final Order without\nfurther notice.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.507, which states, in\nrelevant part:\n§ 195.507 Recordkeeping.\nEach operator shall maintain records that demonstrate compliance with\nthis subpart.\n(a) Qualification records shall include:\n(1) . . .\n(3) Date(s) of current qualification; and . . . .\n(b) Records supporting an individual's current qualification shall be\nmaintained while the individual is performing the covered task. Records of\nprior qualification and records of individuals no longer performing covered\ntasks shall be retained for a period of five years.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.507 by failing to maintain operator\nqualification (OQ) records for individuals performing covered tasks on three pipelines.\nSpecifically, the Notice alleged that Enterprise did not maintain current qualification records for\nindividuals performing covered tasks under the mutual-assistance requirements of Enterprise’s\nOQ plan. The three pipelines at issue were the Koch Pipeline, Conoco Phillips, and Energy\nTransfer (Lone Star NGL) pipelines. Section 4 of Enterprise’s OQ plan required Enterprise to\nmaintain records for each individual’s current qualification by reevaluating such individuals at\nleast once every five years. The OQ records for all three of the pipelines at issue were last\nevaluated in 2011; accordingly, the OQ records should have been reevaluated in 2016.\nIn its Response, Enterprise did not contest the allegations of Item 1 and provided information\nabout updates it had made to its OQ plan. Accordingly, after considering all of the evidence, I\nfind that Respondent violated 49 C.F.R. § 195.507 by failing to maintain OQ records for\nindividuals performing covered tasks on three pipelines.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.575(e), which states:\n§ 195.575 Which facilities must I electrically isolate and what\ninspections, tests, and safeguards are required?\n\n\n\nCPF No. 4-2017-5035\nPage 3\n(a) . . . .\n(e) If a pipeline is in close proximity to electrical transmission tower\nfootings, ground cables, or counterpoise, or in other areas where it is\nreasonable to foresee fault currents or an unusual risk of lightning, you must\nprotect the pipeline against damage from fault currents or lightning and take\nprotective measures at insulating devices.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.575(e) by failing to protect a\npipeline against damage from fault currents or lightning and take protective measures at\ninsulating devices. Specifically, the Notice alleged that Enterprise failed to protect the\ncompany’s Chaparral Line, which runs in close proximity to electrical transmission power lines\nbetween Mont Belvieu and Bryan, Texas.\nIn its Response, Enterprise contested this allegation of violation. Following Enterprise’s\nresponse, pursuant to § 190.209(b)(7), the Director has recommended withdrawal of this item,\nand simultaneously, on May 3, 2018, the Director issued a separate Notice of Probable Violation\nand Proposed Compliance Order addressing this alleged violation.\n4 Accordingly, Item 2 and its\nassociated proposed penalty are withdrawn without prejudice.\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.5 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; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $69,700 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $33,500 for Respondent’s violation of 49 C.F.R.\n§ 195.507, for failing to maintain OQ records for individuals performing covered tasks on three\npipelines. Respondent did not contest this violation or the proposed civil penalty. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $33,500 for violation of 49 C.F.R. § 195.507.\nItem 2: The Notice proposed a civil penalty of $36,200 for Respondent’s violation of 49 C.F.R.\n§ 195.575(e), for failing to protect a pipeline against damage from fault currents or lightning and\n4 The May 3, 2018 Notice was issued under case number CPF No. 4-2018-5009. Enterprise responded to that case\nby letter dated June 7, 2018. That case is being adjudicated separately under 49 C.F.R. § 190.213.\n5 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. 4-2017-5035\nPage 4\ntake protective measures at insulating devices. For the reasons stated above, Item 2 is withdrawn\nand, therefore, the proposed penalty for the alleged violation of 49 C.F.R. § 195.575(e) is not\nassessed.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $33,500 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for a violation of 49\nC.F.R. § 195.507. Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof hazardous liquids or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.507 (Item 1), Respondent must revise its\nprocedures to ensure that all persons carrying out qualified tasks under its mutual\nassistance program are qualified, and must maintain records showing current\nqualifications. Respondent must submit the revised procedures and other records\nnecessary for compliance with this item within 30 days after receipt of this Order.\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.\nIt is requested that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\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\n\n\n\nCPF No. 4-2017-5035\nPage 5\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 3, 4, and 5, the Notice alleged probable violations of Part 195 but did not\npropose a civil penalty or compliance order for these items. Therefore, these are considered to\nbe warning items. The warnings were for:\n49 C.F.R. § 195.402(a) (Item 3) ─ Respondent’s alleged failure to update its\nprocedures for conducting close interval surveys;\n49 C.F.R. § 195.452(b) (Item 4) ─ Respondent’s alleged failure to follow its\nIntegrity Management Program by not incorporating all available information into\nthe risk analysis; and\n49 C.F.R. § 195.589(c) (Item 5) ─ Respondent’s alleged failure to maintain\nrecords containing sufficient detail about corrosion-control measures in place on a\nsegment of pipe.\nEnterprise requested withdrawal of Items 3, 4, and 5, alleging that the facts did not support\nfindings of probable violation. Under § 190.205, PHMSA does not adjudicate warning items to\ndetermine whether a probable violation occurred or not. If OPS finds a violation of any of these\nitems in a subsequent inspection, Respondent may be subject to future enforcement action.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The other terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 20, 2018\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420175035_Closure Letter_04022019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 2, 2019\nA.J. Teague\nDirector and Chief Executive Officer\nEnterprise Products Partners\n1100 Louisiana Street, 10th Floor\nHouston, Texas 77002\nCPF 4-2017-5035\nDear Mr. Teague:\nOn December 20, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Enterprise Products Operating LLC a Final Order in the above-referenced case. This\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation you provided and confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nMary. L. McDaniel, P.E\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":32855}