{"operation":"document","citation":"CPF 420175037","title":"CCPS TRANSPORTATION, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-11-07","effective_on":null,"summary":"CLOSED notice of probable violation citing 190.213.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175037.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175037.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175037","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420175037","body":"Notice of Probable Violation involving CCPS TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulation as 190.213. The case was opened on 2017-11-07 and is reported as closed as of 2018-07-12. Proposed civil penalty: $50,100. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420175037_ NOPV PCP PCO_11072017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_%20NOPV%20PCP%20PCO_11072017_text.pdf\n\n420175037_NOPV PCP PCO_11072017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_NOPV%20PCP%20PCO_11072017.pdf\n\n420175037_Operator Response to Notice and Request for Hearing and Case Files_12082017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Case%20Files_12082017.pdf\n\n420175037_PHC Hearing Scheduled_05302018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_PHC%20Hearing%20Scheduled_05302018.pdf\n\n420175037_PHC Hearing Scheduled_05302018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_PHC%20Hearing%20Scheduled_05302018_text.pdf\n\n420175037_Withdrawal of Notice Letter_07122018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_Withdrawal%20of%20Notice%20Letter_07122018.pdf\n\n420175037_Withdrawal of Notice Letter_07122018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175037/420175037_Withdrawal%20of%20Notice%20Letter_07122018_text.pdf\n\n420175037_Withdrawal of Notice Letter_07122018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 12, 2018\nMr. Terry McGill\nPresident\nCCPS Transportation, LLC\n1100 Louisiana Street Suite 3300\nHouston, TX 77002\nCPF 4-2017-5037\nDear Mr. McGill:\nOn November 7, 2017, CCPS Transportation, LLC (“Enbridge”) was issued a Notice of Probable Violation\nfor the case number referenced above. This Notice cited Enbridge for failure to comply with the terms of\nthe Compliance Order issued on October 8, 2015 in CPF 4-2014-5005.\nUpon further deliberation, PHMSA has decided to provide Enbridge with the opportunity to provide more\ninformation relating to its compliance actions.\nThis letter is to inform you that PHMSA hereby withdraws the Notice without prejudice and that the case\nis now closed. PHMSA retains its authority to review Enbridge’s actions relating to the Compliance Order\nas issued in CPF 4-2014-5005, and reserves its right to seek enforcement if necessary.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\ncc:\nMr. Darren J. Hunter, Rooney Rippie & Ratnaswamy LLP, Kingsbury Center, Ste. 600, 350 W Hubbard\nSt., Chicago, IL 60654\nMr. Mark A. Maki, President, Enbridge Energy Partners LP, 1100 Louisiana St., Ste. 3300, Houston, TX\n77002\n\n420175037_NOPV PCP PCO_11072017.pdf\n\nU.S. Department\n8701 S. Gessner, Suite 630\nof Transportation\nHouston, TX 77074\nPipeline and\nHazardous Materials Safety\nAdministration\nNOTICE OF PROBABLE VIOLATION,\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 7, 2017\nMr. Terry Mc Gill\nPresident, CCPS Transportation, LLC\n1100 Louisiana\nSuite 3300\nHouston, TX 77002\nCPF 4-2017-5037\nDear Mr. McGill:\nOn October 8, 2015, pursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.213, the Associate\nAdministrator for Pipeline Safety, Pipeline and Hazardous Materials Safety Administration\n(PHMSA), issued a Final Order to CCPS Transportation, LLC (CCPS, the Operator, Enbridge), a\nsubsidiary of Enbridge Energy Company, Inc. The Final Order (CPF 4-2014-5005) found that\nCCPS committed violations of the pipeline safety regulations, 49 CFR § 195.202 and ordered\nCCPS perform certain specified actions to ensure compliance with the pipeline safety regulations\napplicable to its' operators. Specifically, the Compliance Order required CCPS to perform the\nfollowing items:\n1.\na. In regard to Item Number one of the Notice pertaining to issuance of waivers modifying\nthe company Specifications or Standards for the manufacture of steel pipe for pipeline\nprojects, Enbridge must provide technical justification for the waivers granted on the\nproject and show that the waivers did not result in the pipeline being constructed with pipe\nthat would pose a integrity threat to the public or the environment.\nb. This action, for item 1, should be completed within 30 days of issuance of the Final\nOrder.\n\n\n\nAs a result of a review of this matter, it appears that Enbridge has committed a probable violation\nof 49 CFR § 190.213 regarding the above-referenced Final Order. Specifically, Enbridge has\nfailed to comply with Item 1 of the Compliance Order issued with the Final Order. The deadline\nfor completion of the items in the Compliance Order was November 7, 2015. To date, PHMSA\nhas not received adequate technical justification for the waivers granted on the project.\nIn the previous enforcement case (CPF 4-2014-5005), Enbridge specified enhanced pipe\nmanufacturing specifications as part of an overall effort to improve the integrity of their pipelines.\nThis came in the wake of two accidents resulting in significant releases, specifically a 24,000 bbl\nof crude oil release into the Kalamazoo River in MI in July 2010 and a 1,200 bbl of crude oil\nrelease in Adams County, Wisconsin in July 2012. Following the Wisconsin release PHMSA\nissued a CAO and Enbridge responded (August 2012) by submitting the \"Lakehead Plan\" which\nincluded actions Enbridge committed to take and included more stringent specifications for the\nmanufacture of steel pipe for pipeline construction projects. However, Enbridge failed to follow\ntheir own pipe manufacturing specifications for the CCPS Flanagan South pipeline. In fact CCPS\nwaived many of their enhanced specifications for the manufacture of the pipe. As a result, PHMSA\nissued a NOPV with a Compliance Order requiring Enbridge to provide engineering justification\nfor the waivers.\nThe Final Order on this case was issued on October 8, 2015 and it found that CCPS failed to\nprovide technical justification for the waivers and required the operator to justify not following\ntheir pipe manufacturing specifications. In the December 1, 2015 CCS response to the Final\nOrder, the operator stated that \"Enbridge believes that the previously submitted technical\njustification is adequate\". However, the Final Order had already determined that the operators'\nprevious responses were inadequate. As a result, CCPS failed to meet the requirements of the\nCompliance Order.\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 violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $ 50,100 as follows:\nItem number\nPENALTY\n1\n$ 50,100\n\n\n\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\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 4-2017-5037 and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nFrank Causey\nFrank Causey\nActing Director, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation\nof 49 CFR § 195.202. Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas 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\nU.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the following actions\nto ensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.202 (Item 1), Respondent must:\na. Provide complete technical justification, required by the Final Order\nfor case CPF-4-2014-5005, for the waivers granted for the\nmanufacture of their pipe used to construct the Flanagan\nSouth pipeline. Submitting the same information that was determined\nto be inadequate by the Final Order in case CPF 4-2014-5005 is not\nacceptable.\nb. Provide all information that was used by the Enbridge Technical\nStandards Deviation Request (TSDR) process including but not limited\nto notes, analysis reports, specifications and standards that were used to\nevaluate each wavier and a complete explanation how the information\nwas used to conclude that it was not necessary, to manufacture the pipe\nto the written Enbridge pipe specifications (Submerged-Arc-Welded\nSteel Pipe Specification Supplementary to API 5L, EE103-(2010)).\nC.\nIf Enbridge cannot provide PHMSA adequate technical justification as\ndetermined by the PHMSA SW Region Director for each wavier, the\noperator must perform integrity assessments on the pipeline every 3\nyears using tools and methods appropriate to detect potential integrity\nissues including but not limited to in-line inspections capable of\ndetecting weld seam defects, cracking in the pipe body and corrosion\ndamage.\nd. This action for Item 1 should be completed within 30 days of issuance\nof the Final Order. The integrity assessments must begin no later than\n6 months after the Final Order is issued.\ne. Itisrequested (not mandated) that CCPS maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance\nOrder and submit the total to Terri Binns, Acting Director, Southwest,\nPipeline and Hazardous Materials Safety Administration. Itis requested\nthat these costs be reported in two categories: 1) total cost associated\nwith preparation/revision ofplans, procedures, studies and analyses; and\n2) total cost associated with replacements, additions and other changes\nto pipeline infrastructure.\n\n420175037_PHC Hearing Scheduled_05302018_text.pdf\n\nMay 30, 2018\nVIA CERTIFIED MAIL AND EMAIL TO: darren.hunter@r3law@.com and\nmary.mcdaniel@dot.gov\nMr. Darren J. Hunter, Esq.\nCounsel for CCPS Transportation, LLC\nRooney, Rippie & Ratnaswamy LLP\nKingsbury Center, Suite 600\n350 W. Hubbard Street\nChicago, IL 60554\nMs. Mary McDaniel\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner, Suite 630\nHouston, TX 77074\nRe: Notice of Hearing, CCPS Transportation, LLC\nCPF No. 4-2017-5037\nDear Mr. Hunter and Ms. McDaniel:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued to CCPS\nTransportation, LLC by the Office of Pipeline Safety in the above-referenced case. The hearing\nwill take place on August 8, 2018, beginning at 8:30 a.m. Central Time.\nThe hearing will be at the PHMSA Southwest Region office, 8701 South Gessner, Suite 630,\nHouston, TX 77074. Upon arrival at the building, attendees will be required to present photo\nidentification to security personnel. A contact phone number for the day of the hearing is (713)\n272-2859.\nAt least 10 calendar days prior to the hearing (or by July 30, 2018), both parties must submit and\nexchange any additional written materials they intend to present at the hearing and a list of\nattendees. This information should be provided electronically. Materials not submitted by this date\nmay be excluded. If you have any questions, please do not hesitate to call me at (202) 366-9093.\n\n\n\nCPF No. 4-2017-5037\nPage 2\nSincerely,\nLarry White\nPresiding Official\ncc: Mr. Terry McGill, President, CCPS Transportation, LLC, 1100 Louisiana,\nSuite 3300, Houston, TX 77002\nMr. Adam Phillips, Counsel, Southwest Region, OPS\nMs. Lauren Clegg, Counsel, Southwest Region, OPS\n\n420175037_ NOPV PCP PCO_11072017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION,\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL ‐ RETURN RECEIPT REQUESTED\nNovember 7, 2017\nMr. Terry Mc Gill\nPresident, CCPS Transportation, LLC\n1100 Louisiana\nSuite 3300\nHouston, TX 77002\nCPF 4-2017-5037\nDear Mr. McGill:\nOn October 8, 2015, pursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.213, the Associate\nAdministrator for Pipeline Safety, Pipeline and Hazardous Materials Safety Administration\n(PHMSA), issued a Final Order to CCPS Transportation, LLC (CCPS, the Operator, Enbridge), a\nsubsidiary of Enbridge Energy Company, Inc. The Final Order (CPF 4-2014-5005) found that\nCCPS committed violations of the pipeline safety regulations, 49 CFR § 195.202 and ordered\nCCPS perform certain specified actions to ensure compliance with the pipeline safety regulations\napplicable to its’ operators. Specifically, the Compliance Order required CCPS to perform the\nfollowing items:\n1. a. In regard to Item Number one of the Notice pertaining to issuance of waivers modifying\nthe company Specifications or Standards for the manufacture of steel pipe for pipeline\nprojects, Enbridge must provide technical justification for the waivers granted on the\nproject and show that the waivers did not result in the pipeline being constructed with pipe\nthat would pose a integrity threat to the public or the environment.\nb. This action, for item 1, should be completed within 30 days of issuance of the Final\nOrder.\n\n\n\nAs a result of a review of this matter, it appears that Enbridge has committed a probable violation\nof 49 CFR § 190.213 regarding the above-referenced Final Order. Specifically, Enbridge has\nfailed to comply with Item 1 of the Compliance Order issued with the Final Order. The deadline\nfor completion of the items in the Compliance Order was November 7, 2015. To date, PHMSA\nhas not received adequate technical justification for the waivers granted on the project.\nIn the previous enforcement case (CPF 4-2014-5005), Enbridge specified enhanced pipe\nmanufacturing specifications as part of an overall effort to improve the integrity of their pipelines.\nThis came in the wake of two accidents resulting in significant releases, specifically a 24,000 bbl\nof crude oil release into the Kalamazoo River in MI in July 2010 and a 1,200 bbl of crude oil\nrelease in Adams County, Wisconsin in July 2012. Following the Wisconsin release PHMSA\nissued a CAO and Enbridge responded (August 2012) by submitting the “Lakehead Plan” which\nincluded actions Enbridge committed to take and included more stringent specifications for the\nmanufacture of steel pipe for pipeline construction projects. However, Enbridge failed to follow\ntheir own pipe manufacturing specifications for the CCPS Flanagan South pipeline. In fact CCPS\nwaived many of their enhanced specifications for the manufacture of the pipe. As a result, PHMSA\nissued a NOPV with a Compliance Order requiring Enbridge to provide engineering justification\nfor the waivers.\nThe Final Order on this case was issued on October 8, 2015 and it found that CCPS failed to\nprovide technical justification for the waivers and required the operator to justify not following\ntheir pipe manufacturing specifications. In the December 1, 2015 CCPS response to the Final\nOrder, the operator stated that “Enbridge believes that the previously submitted technical\njustification is adequate”. However, the Final Order had already determined that the operators’\nprevious responses were inadequate. As a result, CCPS failed to meet the requirements of the\nCompliance Order.\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 violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $ 50,100 as follows:\nItem number PENALTY\n1 $ 50,100\n\n\n\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\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 4-2017-5037 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\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item l in the Notice for violation\nof 49 CFR § 195.202. Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas 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\nU.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the following actions\nto ensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.202 (Item 1), Respondent must:\na. Provide complete technical justification, required by the Final Order\nfor case CPF-4-2014-5005, for the waivers granted for the\nmanufacture of their pipe used to construct the Flanagan\nSouth pipeline. Submitting the same information that was determined\nto be inadequate by the Final Order in case CPF 4-2014-5005 is not\nacceptable.\nb. Provide all information that was used by the Enbridge Technical\nStandards Deviation Request (TSDR) process including but not limited\nto notes, analysis reports, specifications and standards that were used to\nevaluate each wavier and a complete explanation how the information\nwas used to conclude that it was not necessary, to manufacture the pipe\nto the written Enbridge pipe specifications (Submerged-Arc-Welded\nSteel Pipe Specification Supplementary to API 5L, EE103-(2010)).\nc. If Enbridge cannot provide PHMSA adequate technical justification as\ndetermined by the PHMSA SW Region Director for each wavier, the\noperator must perform integrity assessments on the pipeline every 3\nyears using tools and methods appropriate to detect potential integrity\nissues including but not limited to in-line inspections capable of\ndetecting weld seam defects, cracking in the pipe body and corrosion\ndamage.\nd. This action for Item 1 should be completed within 30 days of issuance\nof the Final Order. The integrity assessments must begin no later than\n6 months after the Final Order is issued.\ne. It is requested (not mandated) that CCPS maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance\nOrder and submit the total to Terri Binns, Acting Director, Southwest,\nPipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated\nwith preparation/revision of plans,procedures, studies and analyses; and\n2) total cost associated with replacements, additions and other changes\nto pipeline infrastructure.","truncated":false,"body_characters":20907}