# ENERGY XXI PIPELINE, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 420179002
- **title:** ENERGY XXI PIPELINE, LLC — Notice of Probable Violation
- **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 probable violation citing 192.605(a), 192.605(b)(8), 192.616, 195.402(a), 195.402(c)(13), 195.413(c), 195.440(c).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420179002
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420179002
**body:**

Notice of Probable Violation involving ENERGY XXI PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.605(b)(8),  192.616,  195.402(a),  195.402(c)(13),  195.413(c),  195.440(c). The case was opened on 2017-05-16 and is reported as closed as of 2018-05-14. Proposed civil penalty: $30,200. Assessed civil penalty: $30,200. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420179002_Final Order_05142018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420179002/420179002_Final%20Order_05142018.pdf

420179002_Final Order_05142018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420179002/420179002_Final%20Order_05142018_text.pdf

420179002_NOPV PCP_05162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420179002/420179002_NOPV%20PCP_05162017.pdf

420179002_NOPV PCP_05162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420179002/420179002_NOPV%20PCP_05162017_text.pdf

420179002_Operator Reponse to Notice_06092017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420179002/420179002_Operator%20Reponse%20to%20Notice_06092017.pdf

420179002_Operator Reponse to Notice_06092017.pdf

(energyxx
1021 Main (One City Centre
Energy XXI
Houston, TX 77002
Suite 2626
Page 1 of 3
June 9, 2017
RECEIVED
U.S. Department of Transportation
Terri J. Binns
JUN 1 4 201/
Acting Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
BY:
8701 South Gessner, Suite 630
Houston, Texas 77074
Subject: RE: Notice Of Probable Violation and Proposed Civil Penalty - CPF 4-2017-9002
Dear Ms. Binns,
A representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA)
conducted an onsite pipeline safety inspection of Energy XXI Pipeline, LLC (Energy XXI)
procedures from February 23, 2016 through April 14, 2016 for its crude oil and gas pipeline
operations in the Gulf of Mexico and Grand Isle, Louisiana areas.
Pursuant to the PHMSA referenced Notice of Probable Violation (NOPV) and Proposed Civil
Penalty listed above, dated May 16, 2017, this letter serves as Energy XXI's formal response.
Energy XXI does not contest the allegation of violation and the Civil Penalty assessed ($30,200),
but would like to provide you information on how Energy XXI plans to address and mitigate any
future concerns associated with Items 3 and 4 identified within said letter.
3. §195.413 Underwater inspection and reburial of pipelines in the Gulf of Mexico and
its inlets.
c. If an operator discovers that its pipeline is an exposed underwater pipeline or poses a
hazard to navigation, the operator shall-
(1) Promptly, but not later than 24 hours after discovery, notify the National
Response Center, telephone: 1-800-424-8802, of the location and, if available,
the geographic coordinates of that pipeline.
(2) Promptly, but not later than 7 days after discovery, mark the location of the
pipeline in accordance with 33 CFR Part 64 at the ends of the pipeline segment
and at intervals of not over 500 yards (457 meters) long, except that a pipeline
segment less than 200 yards (183 meters) long need only be marked at the
center; and
(3) Within 6 months after discovery, or not later than November 1 of the following
year if the 6 month period is later than November I of the year of discovery,
bury the pipeline so that the top of the pipe is 36 inches (914 millimeters) below
the underwater natural bottom (as determined by recognized and generally
accepted practices) for normal excavation or 18 inches (457 millimeters) for
rock excavation.



(energyxx
Energy XXI
Suite 2626
1021 Main (One City Centre)
Houston, TX 77002
Page 2 of 3
i.
An operator may employ engineered alternatives to burial that meet or
exceed the level of protection provided by burial.
ii. If an operator cannot obtain required state or Federal permits in time to
comply with this section, it must notify OPS; specify whether the required
permit is State or Federal; and, justify the delay.
EXXI did not promptly, but not later than 7 days after discovery mark the location of ST21H-
East Timbalier Island Facility 10-inch pipeline in accordance with 33 CFR Part 64. Also EXXI
did not bury the pipeline so that the top of the pipe is 36 inches below the underwater natural
bottom within 6 months after discovery.
During the records inspection, PHMSA inspectors reviewed EXXI's 2015 Underwater Inspection
Procedure (UIP). EXXI performed the survey and found that ST21H-East Timbalier Island
Facility 10-inch pipeline was exposed/hazard to navigation on March 19, 2013. The location
marking for the exposure/hazard to navigation of this pipeline was not performed until May 15,
2013 according to the UIP. Also, the UIP showed that ST21H Oil-East Timbalier Island Facility
10-inch pipeline was not reburied until September 2014 which is 18 months past the date of
discovery
Energy XXI's Response:
Energy XXI has enhanced its process flowchart within the Underwater Inspection Manual to
incorporate what needs to be done if and when a pipeline is exposed/hazard to navigation is
discovered. (See attachment (A)).
4. §195.440 and §192.616 Public Awareness.
c. The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why compliance
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
API RP 1162 - MEASURING PROGRAM EFFECTIVENESS
Operators should assess progress on the following measures to assess whether the
actions undertaken in implementation of this RP are achieving the intended goals
and objectives:
• Whether the information is reaching the intended stakeholder audiences
• If the recipient audiences are understanding the messages delivered
• Whether the recipients are motivated to respond appropriately in alignment
with the information provided
• If the implementation of the Public Awareness Program is impacting bottom-
line results (such as reduction in the number of incidents caused by third-
party damage).
EXXI did not perform a review of their Public Awareness Plan to measure effectiveness of the



(energy*
1021 Main (One City Centre)
Energy XXI
Suite 2626
Houston, TX 77002
Page 3 of 3
program every 4 years as required by API RP 1162 Sections 8.4, 8.5 and their written Public
Awareness Plan.
During records and procedures review, PHMSA inspectors inspected EXXI's Public Awareness
Plan (Plan). EXXI' s Plan Section 13 - Perform Program Evaluation states that the effectiveness
review must be completed every four years. While inspecting the Plan, the Review and Revision
Log noted that Version 1 of the Plan was revised and updated on November 24, 2011. Also, the
Plan's Review and Revision Log Version 3 stated in August 2014 that the due date for the
Effectiveness Evaluation required in Section 13.3 was changed from April 1, 2015 to
November 1, 2017. EXXI could not provide an explanation or justification to the PHMSA
Inspectors as to why the Plan's Effectiveness Evaluation date was changed to well past 4
years to complete the review.
EXXI did complete their Plan's Effectiveness Evaluation on March 3, 2016 and it was
reviewed by PHMSA inspectors.
Energy XIl's Response:
Energy XXI has added this Effectiveness Evaluation review to TaskOp (EXXI's
Computerized Compliance Maintenance System) to help alleviate human error associated
with task assignments and dates.
Please be assured that Energy XXI Pipeline, LLC shares with PHMSA a commitment to safely
operate our pipeline assets. Energy XXI believes that the existing manuals, procedures and
processes complied with the applicable regulations, but it is our desire that both parties work
cooperatively to assure this common objective; we have made these revisions to clarify the above
matters in our manuals.
Sincerely,
Wesley Stout
Wishy Star
Vice President Production
713-396-3066 (office)
713-594-7859 (cell)
wstout@energyxxi.com

420179002_Final Order_05142018_text.pdf

May 14, 2018
Mr. Douglas E. Brooks
President and CEO
Energy XXI Pipeline, LLC
1021 Main Street, Suite 2626
Houston, TX 77002
Re: CPF No. 4-2017-9002
Dear Mr. Brooks:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and assesses a civil penalty of $30,200. This is to acknowledge receipt of payment of
the full penalty amount, by wire transfer, dated June 13, 2017. This enforcement action is now
closed. Service of the Final Order by certified mail is effective upon the date of mailing as
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. Wesley Stout, Vice President Production, Energy XXI Pipeline, LLC, 1021 Main
Street, Suite 2626, Houston, TX 77002
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Energy XXI Pipeline, LLC, ) CPF No. 4-2017-9002
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
From February 23 through April 14, 2016, pursuant to 49 U.S.C. § 60117, representatives of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Energy
XXI Pipeline, LLC (EXXI or Respondent) in the South Timbalier, Grand Isle, West Delta, West
Delta-South Addition, and South Pass areas in the Gulf of Mexico and Grand Isle, Louisiana.
EXXI is an oil and natural gas development and production company with assets located in the
U.S. Gulf of Mexico waters and the Gulf Coast onshore.1
As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated May 16, 2017, a Notice of Probable Violation and Proposed Civil
Penalty (Notice), which also included warnings pursuant to 49 C.F.R. § 190.205. In accordance
with 49 C.F.R. § 190.207, the Notice proposed finding that EXXI had committed four violations
of 49 C.F.R. Parts 192 and 195 and proposed assessing a civil penalty of $30,200 for the alleged
violations. The warning items required no further action, but warned the operator to correct the
probable violations or face possible future enforcement action.
EXXI responded to the Notice by letter dated June 9, 2017 (Response). The company did not
contest the allegations of violation and paid the proposed civil penalty of $30,200. In accordance
with 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate Administrator to make
findings of violation and to issue this final order without further proceedings.
FINDINGS OF VIOLATION
In its Response, EXXI did not contest the allegations in the Notice that it violated 49 C.F.R.
Parts 192 and 195, as follows:
1 Energy XXI Pipeline, LLC’s website, available at http://www.energyxxi.com/ (last accessed February 26, 2018).



CPF No. 4-2017-9002
Page 2
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.413(c)(2) and (3), which
state:
§ 195.413. Underwater inspection and reburial of pipelines in the Gulf
of Mexico and its inlets.
(a) . . . .
(c) If an operator discovers that its pipeline is an exposed underwater
pipeline or poses a hazard to navigation, the operator shall –
(1) . . . .
(2) Promptly, but not later than 7 days after discovery, mark the
location of the pipeline in accordance with 33 CFR Part 64 at the ends
of the pipeline segment and at intervals of not over 500 yards (457
meters) long, except that a pipeline segment less than 200 yards (183
meters) long need only be marked at the center; and
(3) Within 6 months of discovery, or not later than November 1 of the
following year if the 6 month period is later than November 1 of the year of
discovery, bury the pipeline so that the top of the pipe is 36 inches (914
millimeters) below the underwater natural bottom (as determined by
recognized and generally accepted practices) for normal excavation or 18
inches (457 millimeters) for rock excavation.
The Notice alleged that Respondent violated 49 C.F.R. § 195.413(c)(2) and (3) by failing to
promptly, but not later than seven days after discovery, that its pipeline was exposed underwater
or posed a hazard to navigation, mark the location of its pipeline in accordance with 33 C.F.R.
Part 64 and to bury its pipeline so that the top of the pipe was 36 inches below the underwater
natural bottom, within six months of discovery. Specifically, the Notice alleged that EXXI did
not mark the location of its ST21H-E Timbalier Island Facility 10-inch diameter pipeline in
accordance with 33 C.F.R. Part 64, and failed to bury it so that the top of the pipe was 36 inches
below the underwater natural bottom, within the regulatory timeframes.2
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.413(c)(2) and (3) by failing to
promptly, but not later than seven days after discovery, that its pipeline was exposed underwater
or posed a hazard to navigation, mark the location of its pipeline in accordance with 33 C.F.R.
Part 64 and to bury it so that the top of the pipe was 36 inches below the underwater natural
bottom, within six months of discovery.
Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.616(c) and 49 C.F.R.
§ 195.440(c), which state:
2 PHMSA’s review of EXXI’s records revealed that EXXI discovered on March 19, 2013, that its ST21H-E Timbalier
Island Facility 10-inch diameter pipeline was exposed underwater or posed a hazard to navigation. The location was
not marked pursuant to 33 C.F.R. Part 64 until May 15, 2013 (past the seven-day requirement), and the pipe was not
reburied until September 2014 (past the six-month requirement). Pipeline Safety Violation Report (May 15, 2017)
(on file with PHMSA) at 18-19.



CPF No. 4-2017-9002
Page 3
§ 192.616 Public awareness.
(a) . . . .
(c) The operator must follow the general program recommendations,
including baseline and supplemental requirements of [American Petroleum
Institute (API)] RP 1162, unless the operator provides justification in its
program or procedural manual as to why compliance with all or certain
provisions of the recommended practice is not practicable and not necessary
for safety.
and
§ 195.440 Public awareness.
(a) . . . .
(c) The operator must follow the general program recommendations,
including baseline and supplemental requirements of API RP 1162, unless
the operator provides justification in its program or procedural manual as to
why compliance with all or certain provisions of the recommended practice
is not practicable and not necessary for safety.
The Notice alleged that Respondent violated 49 C.F.R. § 192.616(c) and § 195.440(c) by failing
to follow the general program recommendations, including baseline and supplemental
requirements, of API RP 1162, or providing justification in its program or procedural manual as
to why compliance with all or certain provisions of the recommended practice was not
practicable and not necessary for safety.3 Specifically, the Notice alleged that EXXI failed to
review its Public Awareness Plan to measure program effectiveness, in accordance with API RP
1162 Sections 8.4 and 8.5, and failed to complete this review within four years, as required by
Section 13 of EXXI’s own written plan.4
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 192.616(c) and § 195.440(c) by
failing to follow the general program recommendations, including baseline and supplemental
requirements, of API RP 1162.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
3 API RP 1162 Section 8.4 states that operators should measure program effectiveness to assess whether the actions
undertaken in implementation of the RP are achieving the intended goals and objectives. Further, Section 8.5 provides
guidance on how results of this evaluation need to be considered and revisions/updates made accordingly in the
operator’s public awareness program plan, implementation, materials, frequency and/or messages.
4 During the PHMSA inspection, EXXI could not provide an explanation or justification as to why the Effectiveness
Evaluation date was changed to November 1, 2017, well past the four-year frequency listed in the Plan. Notice at 5-
6.



CPF No. 4-2017-9002
Page 4
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.5 In determining the amount of a civil penalty under 49 U.S.C.
§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect
that the penalty may have on its ability to continue doing business; and the good faith of
Respondent in attempting to comply with the pipeline safety regulations. In addition, I may
consider the economic benefit gained from the violation without any reduction because of
subsequent damages, and such other matters as justice may require. The Notice proposed a total
civil penalty of $30,200 for the violations cited above.
Having reviewed the record and considered the assessment criteria for each of the Items cited
above, I assess Respondent a total civil penalty of $30,200. Respondent paid the total civil
penalty amount of $30,200 by wire transfer on June 13, 2017.
WARNING ITEMS
With respect to Items 1 and 2, the Notice alleged probable violations of Parts 192 and 195 but
did not propose a civil penalty or compliance order for these items. Therefore, these are
considered to be warning items. The warnings were for:
49 C.F.R. § 195.402(c) (Item 1) ─ Respondent’s alleged failure to follow its own
manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies for hazardous liquid
pipelines. Specifically, it alleged that EXXI failed to periodically review the work
done by operator personnel to determine the effectiveness of the procedures used
in normal operation and maintenance, and to take corrective action where
deficiencies were found; and
49 C.F.R. § 192.605(b)(8) (Item 2) ─ Respondent’s alleged failure to follow its
own manual of written procedures for conducting operations and maintenance
activities and for emergency response for gas pipelines. Specifically, it alleged
that EXXI failed to periodically review the work done by operator personnel to
determine the effectiveness and adequacy of the procedures used in normal
operation and maintenance and to modify the procedures when deficiencies were
found.
If OPS finds a violation of any of these items in a subsequent inspection, Respondent may be
subject to future enforcement action.
5 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum
Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).



CPF No. 4-2017-9002
Page 5
The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
May 14, 2018
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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