# ENERGY XXI USA, INC — Notice of Amendment

- **operation:** document
- **citation:** CPF 420177002M
- **title:** ENERGY XXI USA, INC — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2017-05-16
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.234(a), 195.234(b), 195.402(c)(10), 195.402(c)(3), 195.569, 195.573(e), 195.59(a).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420177002m.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420177002m
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420177002M
**body:**

Notice of Amendment involving ENERGY XXI USA, INC. PHMSA's enforcement data identifies the cited regulations as 195.234(a),  195.234(b),  195.402(c)(10),  195.402(c)(3),  195.569,  195.573(e),  195.59(a). The case was opened on 2017-05-16 and is reported as closed as of 2018-02-14. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420177002M_Closure Letter_02142018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420177002M/420177002M_Closure%20Letter_02142018.pdf

420177002M_Closure Letter_02142018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420177002M/420177002M_Closure%20Letter_02142018_text.pdf

420177002M_Notice of Amendment_05162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420177002M/420177002M_Notice%20of%20Amendment_05162017.pdf

420177002M_Notice of Amendment_05162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420177002M/420177002M_Notice%20of%20Amendment_05162017_text.pdf

420177002M_Operator Response to Notice and Request for Time Extension_06092017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420177002M/420177002M_Operator%20Response%20to%20Notice%20and%20Request%20for%20Time%20Extension_06092017.pdf

420177002M_Notice of Amendment_05162017_text.pdf

NOTICE OF AMENDMENT
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
May 16, 2017
Mr. Keith Acker, Sr. Vice President
Energy XXI USA, Inc.
1021 Main Street, Suite 2626
Houston, TX 77002
CPF 4-2017-7002M
Dear Mr. Acker:
From February 23, through April 14, 2016, representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
inspected Energy XXI USA, Inc.’s (EXXI USA) procedures for your crude oil pipeline operations
in the Gulf of Mexico and Grande Isle, Louisiana areas.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
EXXI USA’s plans or procedures, as described below:
1. §195.402 Procedural manual for operations, maintenance, and emergencies.
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the following to provide safety during
maintenance and normal operations:
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
§195.234 Welds: Nondestructive testing.
(a) A weld may be nondestructively tested by any process that will clearly indicate



any defects that may affect the integrity of the weld.
(b) Any nondestructive testing of welds must be performed—
(1) In accordance with a written set of procedures for nondestructive testing; and
(2) With personnel that have been trained in the established procedures and in the
use of the equipment employed in the testing.
EXXI USA procedure P-195.214: Welding did not specify that a weld may be nondestructively
tested by any process that will clearly indicate any defects that may affect the integrity of the weld
and nondestructive testing of welds must be performed in accordance with a written set of
procedures for nondestructive testing; and with personnel that have been trained in the established
procedures and in the use of the equipment employed in the testing.
2. §195.402 Procedural manual for operations, maintenance, and emergencies.
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the following to provide safety during
maintenance and normal operations:
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
§195.569 Do I have to examine exposed portions of buried pipelines?
Whenever you have knowledge that any portion of a buried pipeline is exposed, you
must examine the exposed portion for evidence of external corrosion if the pipe is
bare, or if the coating is deteriorated. If you find external corrosion requiring
corrective action under §195.585, you must investigate circumferentially and
longitudinally beyond the exposed portion (by visual examination, indirect method,
or both) to determine whether additional corrosion requiring remedial action exists
in the vicinity of the exposed portion.
EXXI USA procedure P-195.422: Pipeline Repair Procedures did not specify that if external
corrosion is found on exposed pipe that there must be further investigation circumferentially and
longitudinally beyond the exposed portion by visual examination, indirect method, or both to
determine whether additional corrosion exists and to determine whether additional corrosion
requires remedial action.
3. §195.402 Procedural manual for operations, maintenance, and emergencies.
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the following to provide safety during
maintenance and normal operations:
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
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§195.573 What must I do to monitor external corrosion control?
(e) Corrective action. You must correct any identified deficiency in corrosion control
as required by §195.401(b). However, if the deficiency involves a pipeline in an
integrity management program under §195.452, you must correct the deficiency as
required by §195.452(h).
EXXI USA procedure P-195.561: External Corrosion Remediation did not specify that
remediation for corrosion control deficiencies indicated by monitoring will be completed before
the next required inspection. EXXI USA procedures stated that remediation should be completed
within 15 months but does not account for any monitoring inspections completed toward the end
of the calendar year.
4. §195.402 Procedural manual for operations, maintenance, and emergencies.
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the following to provide safety during
maintenance and normal operations:
(10) Abandoning pipeline facilities, including safe disconnection from an operating
pipeline system, purging of combustibles, and sealing abandoned facilities left in place
to minimize safety and environmental hazards. For each abandoned offshore pipeline
facility or each abandoned onshore pipeline facility that crosses over, under or
through commercially navigable waterways the last operator of that facility must file
a report upon abandonment of that facility in accordance with §195.59 of this part.
§195.59 Abandonment or deactivation of facilities.
For each abandoned offshore pipeline facility or each abandoned onshore pipeline
facility that crosses over, under or through a commercially navigable waterway, the
last operator of that facility must file a report upon abandonment of that facility.
(a) The preferred method to submit data on pipeline facilities abandoned after
October 10, 2000 is to the National Pipeline Mapping System (NPMS) in accordance
with the NPMS “Standards for Pipeline and Liquefied Natural Gas Operator
Submissions.” To obtain a copy of the NPMS Standards, please refer to the NPMS
homepage at http://www.npms.phmsa.dot.gov or contact the NPMS National
Repository at 703-317-3073. A digital data format is preferred, but hard copy
submissions are acceptable if they comply with the NPMS Standards. In addition to
the NPMS-required attributes, operators must submit the date of abandonment,
diameter, method of abandonment, and certification that, to the best of the operator's
knowledge, all of the reasonably available information requested was provided and,
to the best of the operator's knowledge, the abandonment was completed in
accordance with applicable laws. Refer to the NPMS Standards for details in
3



preparing your data for submission. The NPMS Standards also include details of how
to submit data. Alternatively, operators may submit reports by mail, fax or e-mail to
the Office of Pipeline Safety, Pipeline and Hazardous Materials Safety
Administration, U.S. Department of Transportation, Information Resources
Manager, PHP-10, 1200 New Jersey Avenue, SE., Washington, DC 20590-0001; fax
(202) 366-4566; e-mail, “InformationResourcesManager@phmsa.
dot.gov. The information in the report must contain all reasonably available
information related to the facility, including information in the possession of a third
party. The report must contain the location, size, date, method of abandonment, and
a certification that the facility has been abandoned in accordance with all applicable
laws.
EXXI USA procedure P-195.402(c)(10) Abandonment Or Deactivation of Facilities did not
specify that reports will be submitted to NPMS or alternatively PHMSA when offshore pipeline
facilities are abandoned.
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed as
part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance
Proceedings. Please refer to this document and note the response options. Be advised that all
material you submit in response to this enforcement action is subject to being made publicly
available. If you believe that any portion of your responsive material qualifies for confidential
treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a
second copy of the document with the portions you believe qualify for confidential treatment
redacted and an explanation of why you believe the redacted information qualifies for confidential
treatment under 5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice,
this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the
Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further
notice to you and to issue a Final Order.
If, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in this
Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49
C.F.R. § 190.237). If you are not contesting this Notice, we propose that you submit your amended
procedures to my office within 30 days of receipt of this Notice. This period may be extended by
written request for good cause. Once the inadequacies identified herein have been addressed in
your amended procedures, this enforcement action will be closed.
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It is requested (not mandated) that Energy XXI USA, Inc. maintain documentation of the safety
improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of
plans, procedures) and submit the total to R. M. Seeley, Director, Southwest Region, Pipeline
and Hazardous Materials Safety Administration. In correspondence concerning this matter,
please refer to CPF 4-2017-7002M and, for each document you submit, please provide a copy in
electronic format whenever possible.
Sincerely,
Terri J. Binns
Acting Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings
5

420177002M_Closure Letter_02142018_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
February 14, 2018
Mr. Wesley Stout
Vice President, Production
Energy XXI USA, LLC
1021 Main Street, Suite 2626
Houston, TX 77002
CPF 4-2017-7002M
Dear Mr. Wesley Stout:
From February 23, 2016 through April 14, 2016, representatives from the Pipeline and Hazardous
Materials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,
conducted an on-site pipeline safety inspection of Energy XXI USA, LLC (EXXI) procedures in
Houston, TX. As a result of the inspection EXXI was issued a Notice of Amendment on May 16,
2017, which proposed amendment of your procedures.
EXXI submitted its amended procedures on September 5, 2017. My staff reviewed the amended
procedure, and it appears that the inadequacies outlined in this Notice of Amendment have been
corrected.
This letter is to inform you no further action is necessary and this case is now closed. Thank you
for your cooperation.
Sincerely,
Frank Causey
Acting Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
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