{"operation":"document","citation":"CPF 420181002","title":"CHENIERE CORPUS CHRISTI PIPELINE — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-02-05","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.225, 192.227, 192.303.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420181002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420181002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420181002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420181002","body":"Notice of Probable Violation involving CHENIERE CORPUS CHRISTI PIPELINE. PHMSA's enforcement data identifies the cited regulations as 192.225,  192.227,  192.303. The case was opened on 2018-02-05 and is reported as closed as of 2018-09-07. Proposed civil penalty: $185,600. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420181002_Amended NOPV  PCP  PCO_04162018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Amended%20NOPV%20%20PCP%20%20PCO_04162018_text.pdf\n\n420181002_Amended NOPV PCP PCO_04162018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Amended%20NOPV%20PCP%20PCO_04162018.pdf\n\n420181002_NOPV PCP PCO_02052018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_NOPV%20PCP%20PCO_02052018.pdf\n\n420181002_NOPV PCP PCO_02052018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_NOPV%20PCP%20PCO_02052018_text.pdf\n\n420181002_Operator Pre-Hearing Submission_08312018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Operator%20Pre-Hearing%20Submission_08312018.pdf\n\n420181002_Operator Response to Notice and Request for Hearing_04022018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing_04022018.pdf\n\n420181002_PHC Hearing Rescheduled_07102018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_PHC%20Hearing%20Rescheduled_07102018.pdf\n\n420181002_PHC Hearing Rescheduled_07102018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_PHC%20Hearing%20Rescheduled_07102018_text.pdf\n\n420181002_PHC Hearing Scheduled_05112018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_PHC%20Hearing%20Scheduled_05112018_text.pdf\n\n420181002_PHC_Hearing_Scheduled_05112018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_PHC_Hearing_Scheduled_05112018.pdf\n\n420181002_Region Letter on Amended NOPV_04162018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Region%20Letter%20on%20Amended%20NOPV_04162018.pdf\n\n420181002_Region Letter on Amended_04162018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Region%20Letter%20on%20Amended_04162018_text.pdf\n\n420181002_Withdrawal of Notice Letter_09072018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Withdrawal%20of%20Notice%20Letter_09072018.pdf\n\n420181002_Withdrawal of Notice Letter_09072018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420181002/420181002_Withdrawal%20of%20Notice%20Letter_09072018_text.pdf\n\n420181002_Amended NOPV PCP PCO_04162018.pdf\n\nof Transportation\nU.S. Department\n8701 S. Gessner, Suite 630\nHouston, TX 77074\nPipeline and\nHazardous Materials Safety\nAdministration\nAMENDED NOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 16, 2018\nDoug Shanda\nSenior Vice President, Operations\nCheniere Corpus Christi Pipeline\n700 Milam St, Suite 1900\nHouston, TX 77002\nCPF 4-2018-1002\nDear Mr. Shanda:\nOn February 9 and 10, 2017, representatives 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 Cheniere Corpus Christi Pipeline (CCCP) Project in Corpus Christi,\nTexas.\nOn February 5, 2018, PHMSA issued to CCCP a Notice of Probable Violation, Proposed Civil\nPenalty and a Proposed Compliance Order (Original Notice). On February 26, 2018, CCCP\nsubmitted a request for an extension of time to file a response to the Original Notice. On February\n27, 2018, PHMSA granted an extension to CCCP to respond until April 2, 2018. On April 3, 2018,\nPHMSA received a letter from CCCP contesting the violations in the Original Notice and\nrequesting a hearing.\n\n\n\nPursuant to 49 C.F.R. § 190.207(c), PHMSA is issuing this Amended Notice of Probable\nViolation, Proposed Civil Penalty and Proposed Compliance Order (Amended Notice). As a result\nof the inspection in February 2017, it is alleged that you have committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violations are:\n1.\n§192.225 Welding procedures.\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, or\nAppendix A of API Std 1104 (incorporated by reference, see §192.7) or section IX\nASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see\n§192.7), to produce welds which meet the requirements of this subpart. The quality\nof the test welds used to qualify welding procedures must be determined by\ndestructive testing in accordance with the referenced welding standard(s).\n(b) Each welding procedure must be recorded in detail, including the results of the\nqualifying tests. This record must be retained and followed whenever the procedure\nis used.\nCheniere Corpus Christi Pipeline (CCCP) failed to qualify welding procedures in\naccordance with Section 5 of API Std 1104, 20th edition incorporated by reference §192.7.\nSection 5.4.1 of API Std 1104, 20th edition states:\n\"A welding procedure must be re-established as a new procedure specification and\nmust be completely requalified when any of the essential variables listed in 5.4.2\nare changed\".\nWall thickness group is an essential variable listed in Section 5.4.2. As a result, each wall\nthickness group as specified in API 1104 requires a separate qualification test.\nCCCP welding procedures SMAW -A18A-FLT, SMAW-A28A-FLT, SMAW-A38A-\nFLT, and SMAW-A48A-FLT include the following wall thickness groups for each welding\nprocedure: Under 3/16\" (Under 0.188\"); 3/16 to 3/4\" (0.188 to 750\"); Over 3/4\" (Over\n.750\"). In each of the four fillet welding procedures, all of the wall thickness groups were\nmarked on the procedure as being qualified even though there was only one test record for\none wall thickness group. By only testing one wall thickness group for each fillet weld\nprocedure (SMAW -A18A-FLT, SMAW-A48A-FLT, SMAW-A38A-FLT, and SMAW-\nA28A-FLT), CCCP failed to qualify the welding procedures in accordance with Section 5\nof API Std 1104 incorporated by reference §192.7.\n2\n\n\n\n2.\n§192.227 Qualification of welders and welding operators.\n(a) Except as provided in paragraph (b) of this section, each welder or welding\noperator must be qualified in accordance with section 6, section 12, or Appendix A of\nAPI Std 1104 (incorporated by reference, see §192.7), or section IX of ASME Boiler\nand Pressure Vessel Code (BPVC) (incorporated by reference, see §192.7). However,\na welder or welding operator qualified under an earlier edition than the edition listed\nin §192.7 may weld but may not re-qualify under that earlier edition.\n(b) A welder may qualify to perform welding on pipe to be operated at a pressure that\nproduces a hoop stress of less than 20 percent of SMYS by performing an acceptable\ntest weld, for the process to be used, under the test set forth in section I of Appendix\nC of this part. Each welder who is to make a welded service line connection to a main\nmust first perform an acceptable test weld under section II of Appendix C of this part\nas a requirement of the qualifying test.\nCCCP failed to adequately qualify welders in accordance with Section 6 of API Std 1104,\n20th edition incorporated by reference §192.7.\nPer §192.227, welders must be qualified in accordance with Section 6 of API Std 1104,20th\nedition. Section 6.1 GENERAL: states, \"The purpose of the welder qualification test is to\ndetermine the ability of welders to make sound butt or fillet welds using previously\nqualified procedures\". However, the procedure used to qualify the welders had not been\nproperly qualified.\nCCCP provided a copy of welder's qualification register that demonstrates that welders\nused SMAW -A28A-FLT in the multi-qualification test to qualify welders. The welding\nprocedure, SMAW -A28A-FLT, provided to PHMSA covered wall thickness groups\nranging from: Under 3/16\" (Under 0.188\"'), 3/16 to 3/4\" (0.188 to 750\"), and Over 3/4\"\n(Over .750\"). By only testing one wall thickness group for SMAW-A28A-FLT, you failed\nto qualify the welding procedure in accordance with Section 5 of API Std 1104, 20th edition\nincorporated by reference §192.7.\nBy not qualifying the welders to a previously qualified welding procedure, CCCP failed to\nadequately qualify welders in accordance with Section 6 of API Std 1104, 20th edition\nincorporated by reference §192.7.\n§192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent with this part.\n$192.225 Welding procedures.\nз\n\n\n\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, or\nAppendix A of API Std 1104 (incorporated by reference, see §192.7) or section\nIX ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by\nreference, see §192.7), to produce welds which meet the requirements of this\nsubpart. The quality of the test welds used to qualify welding procedures must\nbe determined by destructive testing in accordance with the referenced\nwelding standard(s).\n(b) Each welding procedure must be recorded in detail, including the results\nof the qualifying tests. This record must be retained and followed whenever\nthe procedure is used.\nCCCP failed to construct a pipeline facility in accordance with written specifications by\nusing an unqualified welding procedure and unqualified welders per Welding Manual: Doc\nNumber ES-PPL-7712-CU-0400, Section 2.1 and 2.2, Section 2.1 states, \"All welding,\nincluding temporary welds, utility piping welds, and structural welds shall be performed\nusing qualified welding procedures\". Section 2.2 states.\n\"All welding, including\ntemporary welds, shall be performed by welders who are qualified for welding procedure\nto be used\".\nThe welding procedure used to weld the pipe indicated it had been qualified for a wall\nthickness group of Under 3/16\" (Under 0.188\"). However, destructive testing results for\ncoupons for each welding procedure only show wall thickness group 3/16 to 3/4\" (0.188 to\n750\"').\nSection 5.4.1 of API Std 1104 states,\n\"A welding procedure must be re-established as a new procedure specification and\nmust be completely requalified when any of the essential variables listed in 5.4.2\nare changed\".\nWall thickness is an essential variable requiring separate qualified tests for each wall\nthickness group specified in API Std 1104.\nWelders must be qualified in accordance with Section 6 of API Std 1104,20th edition.\nSection 6.1 GENERAL: states, \"The purpose of the welder qualification test is to determine\nthe ability of welders to make sound butt or fillet welds using previously qualified\nprocedures\". However, the procedure used to qualify the welders had not been properly\nqualified.\nFrom February 9th to February 10th\n3, 2017, PHMSA inspectors discovered that CCCP used\nwelding procedure SMAW-A28A-FLT to make 51 welds during the construction of the\nSinton Compressor station. The wall thickness of the pipe, in the compressor station, was\nin the Under 3/16\" (Under 0.188\") group. The Under 3/16\" (Under 0.188\") wall thickness\ngroup was not destructively tested when qualifying procedure SMAW-A28A-FLT.\n4\n\n\n\nTherefore, CCCP failed to construct a pipeline facility in accordance with written\nspecifications by using an unqualified welding procedure and unqualified welders per\nWelding Manual: Doc Number ES-PPL-7712-CU-0400, Section 2.1 and 2.2.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $209,002\nper violation per day the violation persists up to a maximum of $2,090,022 for a related series of\nviolations. For violations occurring prior to November 2, 2015, the maximum penalty may not\nexceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a\nrelated series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violation(s) and has recommended that\nyou be preliminarily assessed a civil penalty of $185,600 as follows:\nItem number\nPENALTY\n1\n$24,100\n2\n$53,500\n3\n$108,000\nProposed Compliance Order\nWith respect to items 1, 2, and 3 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Cheniere\nCorpus Christi Pipeline. Please refer to the Proposed Compliance Order, which is enclosed and\nmade a part of this Notice.\nResponse to this Amended Notice\nPursuant to 49 C.F.R. § 190.207(c), PHMSA may amend a notice of probable violation at any time\nprior to the issuance of final order. Following PHMSA's amendment of a notice, the respondent\nwill have another opportunity to respond under 49 C.F.R. § 190.208.\nEnclosed as part of this Amended Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the response\noptions. All material you submit in response to this enforcement action may be made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5. U.S.C. 552(b). 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.\n\n\n\nIn your correspondence on this matter, please refer to CPF 4-2018-1002 and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: 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 Cheniere Corpus Christi Pipeline a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance with the\npipeline safety regulations:\nIn regard to Item Number 1 of the Notice pertaining to failing to quality welding\nprocedures in accordance with Section 5 of API Sta 1104, 20th edition incorporated\nby reference §192.7, Cheniere Corpus Christi Pipeline must requalify the following\nwelding procedures in accordance with standards set in Section 5 of API Std 1104.\n20th edition: SMAW -A18A-FLT, SMAW-A28A-FLT, SMAW-A38A-FLT, and\nSMAW-A48A-FLT. The procedures cannot be used on any other construction\nproject or Part 192 regulated piping until all corrections are made and accepted by\nthe PHMSA Southwest Region Director.\n2.\nIn regard to Item Number 2 of the Notice pertaining to failing to adequately qualify\nwelders in accordance with Section 6 of API Std 1104, 20th edition incorporated\nby reference §192.7, Cheniere Corpus Christi Pipeline must requalify all welders\nthat were qualified with the following procedures: SMAW -A18A-FLT, SMAW-\nA28A-FLT, SMAW-A38A-FLT, and SMAW-A48A-FLT.\nIn regard to Item Number 3 of the Notice pertaining to failing to weld on a §192\npipeline facility with a qualified welding procedure qualified under section 5 of API\nStd 1104 (incorporated by reference in §192.7), Cheniere Corpus Christi Pipeline\nmust perform destructive tests on a statistically significant number of welds made\nwith SMAW -A18A-FLT, SMAW-A28A-FLT, SMAW-A38A-FLT, and SMAW-\nA48A-FLT welding procedures to show that the welds have the required strength\nand mechanical properties for the application. The proposed testing plan must\ninclude specific designation of the welds to be tested, an analysis showing that the\nnumber of welds to be tested is statistically significant based on the total number\nof welds made, the procedures that Cheniere Corpus Christi Pipeline proposes to\nbe used to cut out and test the welds, and the qualified welding procedure that will\nbe used to re-weld the pipeline facility. The proposed testing plan must be\nsubmitted to the PHMSA Southwest Region Director for approval prior to initiating\nthe plan. If any of these welds fail destructive testing, the number of welds tested\nmust be expanded as specified by the Southwest Region Acting Director to include\nan additional number of welds made with any of SMAW -A18A-FLT, SMAW-\nA28A-FLT, SMAW-A38A-FLT, and SMAW-A48A-FLT welding procedures.\nProvide PHMSA with documentation that verifies completion of:\n• Item 1 within 30 days following the date of the Final Order.\n• Item 2 must be completed within 30 days of completion of item 1 or prior\nto the welders welding to the newly qualified procedures.\n7\n\n\n\n• Submit the testing plan described in Item 3 for approval by the Southwest\nRegion Director within 30 days following the date of the Final Order and\ndocumentation showing completion of the testing an additional 30 days\nfollowing approval of the plan by the Southwest Region Acting Director.\nIt is requested (not mandated) that Cheniere Corpus Christi maintain documentation\nof the safety improvement costs associated with fulfilling this Compliance Order\nand submit the total to Mary McDaniel, Director, Southwest Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n\n420181002_NOPV PCP PCO_02052018_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nFebruary 5, 2018\nMr. Doug Shanda\nSenior Vice President, Operations\nCheniere Corpus Christi Pipeline\n700 Milam St, Suite 1900\nHouston, TX 77002\nCPF 4-2018-1002\nDear Mr. Shanda:\nOn February 9 and 10, 2017, representatives 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 Corpus Christi Pipeline Project in Corpus Christi, TX.\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. §192.225 Welding procedures.\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, or\nAppendix A of API Std 1104 (incorporated by reference, see §192.7) or section IX\nASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see\n§192.7), to produce welds which meet the requirements of this subpart. The quality\n\n\n\nof the test welds used to qualify welding procedures must be determined by\ndestructive testing in accordance with the referenced welding standard(s).\n(b) Each welding procedure must be recorded in detail, including the results of the\nqualifying tests. This record must be retained and followed whenever the procedure\nis used.\nCheniere Corpus Christi Pipeline (CCCP) failed to qualify welding procedures in\naccordance with Section 5 of API Std 1104, 20th edition incorporated by reference §192.7.\nSection 5.4.1 of API Std 1104, 20th edition states:\n“A welding procedure must be re-established as a new procedure specification and\nmust be completely requalified when any of the essential variables listed in 5.4.2\nare changed”.\nWall thickness group is an essential variable listed in Section 5.4.2. As a result, each wall\nthickness group as specified in API 1104 requires a separate qualification test.\nCCCP welding procedures SMAW -A18A-FLT, SMAW-A28A-FLT, SMAW-A38A-\nFLT, and SMAW-A48A-FLT include the following wall thickness groups for each welding\nprocedure: Under 3/16” (Under 0.188”); 3/16 to 3/4\" (0.188 to .750”); Over 3/4\" (Over\n.750”). In each of the four fillet welding procedures, all of the wall thickness groups were\nmarked on the procedure as being qualified even though there was only one test record for\none wall thickness group. By only testing one wall thickness group for each fillet weld\nprocedure (SMAW -A18A-FLT, SMAW-A48A-FLT, SMAW-A38A-FLT, and SMAW-\nA28A-FLT), CCCP failed to qualify the welding procedures in accordance with Section 5\nof API Std 1104 incorporated by reference §192.7.\n2. §192.227 Qualification of welders and welding operators.\n(a) Except as provided in paragraph (b) of this section, each welder or welding\noperator must be qualified in accordance with section 6, section 12, or Appendix A of\nAPI Std 1104 (incorporated by reference, see §192.7), or section IX of ASME Boiler\nand Pressure Vessel Code (BPVC) (incorporated by reference, see §192.7). However,\na welder or welding operator qualified under an earlier edition than the edition listed\nin §192.7 may weld but may not re-qualify under that earlier edition.\n(b) A welder may qualify to perform welding on pipe to be operated at a pressure that\nproduces a hoop stress of less than 20 percent of SMYS by performing an acceptable\ntest weld, for the process to be used, under the test set forth in section I of Appendix\nC of this part. Each welder who is to make a welded service line connection to a main\nmust first perform an acceptable test weld under section II of Appendix C of this part\nas a requirement of the qualifying test.\n2\n\n\n\nCCCP failed to adequately qualify welders in accordance with Section 6 of API Std 1104,\n20th edition incorporated by reference §192.7.\nPer §192.227, welders must be qualified in accordance with Section 6 of API Std 1104,20th\nedition. Section 6.1 GENERAL: states, “The purpose of the welder qualification test is to\ndetermine the ability of welders to make sound butt or fillet welds using previously\nqualified procedures”. However, the procedure used to qualify the welders had not been\nproperly qualified.\nCCCP provided a copy of welder’s qualification register that demonstrates that welders\nused SMAW -A28A-FLT in the multi-qualification test to qualify welders. The welding\nprocedure, SMAW -A28A-FLT, provided to PHMSA covered wall thickness groups\nranging from: Under 3/16” (Under 0.188”), 3/16 to 3/4\" (0.188 to .750”), and Over 3/4\"\n(Over .750”). By only testing one wall thickness group for SMAW-A28A-FLT, you failed\nto qualify the welding procedure in accordance with Section 5 of API Std 1104, 20th edition\nincorporated by reference §192.7.\nBy not qualifying the welders to a previously qualified welding procedure, CCCP failed to\nadequately qualify welders in accordance with Section 6 of API Std 1104, 20th edition\nincorporated by reference §192.7.\n3. §192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent with this part.\n§192.225 Welding procedures.\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, or\nAppendix A of API Std 1104 (incorporated by reference, see §192.7) or section\nIX ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by\nreference, see §192.7), to produce welds which meet the requirements of this\nsubpart. The quality of the test welds used to qualify welding procedures must\nbe determined by destructive testing in accordance with the referenced\nwelding standard(s).\n(b) Each welding procedure must be recorded in detail, including the results\nof the qualifying tests. This record must be retained and followed whenever\nthe procedure is used.\nCCCP failed to construct a pipeline facility in accordance with written specifications by\nusing an unqualified welding procedure and unqualified welders per Welding Manual: Doc\nNumber ES-PPL-7712-CU-0400, Section 2.1 and 2.2. Section 2.1 states, “All welding,\n3\n\n\n\nincluding temporary welds, utility piping welds, and structural welds shall be performed\nusing qualified welding procedures”. Section 2.2 states. “All welding, including\ntemporary welds, shall be performed by welders who are qualified for welding procedure\nto be used”.\nThe welding procedure used to weld the pipe indicated it had been qualified for a wall\nthickness group of Under 3/16” (Under 0.188”). However, destructive testing results for\ncoupons for each welding procedure only show wall thickness group 3/16 to 3/4\" (0.188 to\n.750”).\nSection 5.4.1 of API Std 1104 states,\n“A welding procedure must be re-established as a new procedure specification and\nmust be completely requalified when any of the essential variables listed in 5.4.2\nare changed”.\nWall thickness is an essential variable requiring separate qualified tests for each wall\nthickness group specified in API Std 1104.\nWelders must be qualified in accordance with Section 6 of API Std 1104,20th edition.\nSection 6.1 GENERAL: states, “The purpose of the welder qualification test is to determine\nthe ability of welders to make sound butt or fillet welds using previously qualified\nprocedures”. However, the procedure used to qualify the welders had not been properly\nqualified.\nFrom February 9th to February 10th, 2017, PHMSA inspectors discovered that CCCP used\nwelding procedure SMAW-A28A-FLT to make 51 welds during the construction of the\nSinton Compressor station. The wall thickness of the pipe, in the compressor station, was\nin the Under 3/16” (Under 0.188”) group. The Under 3/16” (Under 0.188”) wall thickness\ngroup was not destructively tested when qualifying procedure SMAW-A28A-FLT.\nTherefore, CCCP failed to construct a pipeline facility in accordance with written\nspecifications by using an unqualified welding procedure and unqualified welders per\nWelding Manual: Doc Number ES-PPL-7712-CU-0400, Section 2.1 and 2.2.\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 $207,800 as follows:\n4\n\n\n\nItem number PENALTY\n1 $46,300\n2 $53,500\n3 $108,000\nProposed Compliance Order\nWith respect to item(s) 1, 2, and 3 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Cheniere\nCorpus Christi Pipeline. Please refer to the Proposed Compliance Order, which is enclosed and\nmade a part 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 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 4-2018-1002 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\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n5\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 Cheniere Corpus Christi Pipeline a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Cheniere\nCorpus Christi Pipeline with the pipeline safety regulations:\n1. 2. 3. 4. In regard to Item Number 1 of the Notice pertaining to failing to qualify welding\nprocedures in accordance with Section 5 of API Std 1104, 20th edition incorporated\nby reference §192.7, Cheniere Corpus Christi Pipeline must requalify the following\nwelding procedures in accordance with standards set in Section 5 of API Std 1104,\n20th edition: SMAW -A18A-FLT, SMAW-A28A-FLT, SMAW-A38A-FLT, and\nSMAW-A48A-FLT. The procedures cannot be used on any other construction\nproject or Part 192 regulated piping until all corrections are made and accepted by\nthe PHMSA Southwest Region Director.\nIn regard to Item Number 2 of the Notice pertaining to failing to adequately qualify\nwelders in accordance with Section 6 of API Std 1104, 20th edition incorporated\nby reference §192.7, Cheniere Corpus Christi Pipeline must requalify all welders\nthat were qualified with the following procedures: SMAW -A18A-FLT, SMAW-\nA28A-FLT, SMAW-A38A-FLT, and SMAW-A48A-FLT.\nIn regard to Item Number 3 of the Notice pertaining to failing to weld on a §192\npipeline facility with a qualified welding procedure qualified under section 5 of API\nStd 1104 (incorporated by reference in §192.7), Cheniere Corpus Christi Pipeline\nmust perform destructive tests on a statistically significant number of welds made\nwith SMAW -A18A-FLT, SMAW-A28A-FLT, SMAW-A38A-FLT, and SMAW-\nA48A-FLT welding procedures to show that the welds have the required strength\nand mechanical properties for the application. The proposed testing plan must\ninclude specific designation of the welds to be tested, an analysis showing that the\nnumber of welds to be tested is statistically significant based on the total number\nof welds made, the procedures that Cheniere Corpus Christi Pipeline proposes to\nbe used to cut out and test the welds, and the qualified welding procedure that will\nbe used to re-weld the pipeline facility. The proposed testing plan must be\nsubmitted to the PHMSA Southwest Region Director for approval prior to initiating\nthe plan. If any of these welds fail destructive testing, the number of welds tested\nmust be expanded as specified by the Southwest Region Acting Director to include\nan additional number of welds made with any of SMAW -A18A-FLT, SMAW-\nA28A-FLT, SMAW-A38A-FLT, and SMAW-A48A-FLT welding procedures.\nProvide PHMSA with documentation that verifies completion of:\n Item 1 within 30 days following the date of the Final Order.\n Item 2 must be completed within 30 days of completion of item 1 or prior\nto the welders welding to the newly qualified procedures.\n6\n\n\n\n5.  Submit the testing plan described in Item 3 for approval by the Southwest\nRegion Director within 30 days following the date of the Final Order and\ndocumentation showing completion of the testing an additional 30 days\nfollowing approval of the plan by the Southwest Region Acting Director.\nIt is requested (not mandated) that Cheniere Corpus Christi maintain documentation\nof the safety improvement costs associated with fulfilling this Compliance Order\nand submit the total to Jon Manning, Acting Director, Southwest, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n7\n\n420181002_PHC Hearing Scheduled_05112018_text.pdf\n\nMay 11, 2018\nVIA CERTIFIED MAIL AND EMAIL TO: sam@vnf.com and Mary.McDaniel@dot.gov\nMs. Susan Olenchuk\nCounsel for Cheniere Corpus Christi\nVan Ness Feldman, LLP\n1050 Thomas Jefferson Street, NW\nWashington, DC 20007\nMs. Mary McDaniel\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner, Suite 630\nHouston, TX 77074\nRe: Notice of Hearing, Cheniere Corpus Christi Pipeline\nCPF No. 4-2018-1002\nDear Ms. Olenchuk 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 by the Office\nof Pipeline Safety in the above-referenced case. The hearing will take place on June 28, 2018,\nbeginning at 9:00 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\n(713) 272-2859.\nBoth parties must submit and exchange any additional written materials they intend to present at\nleast 10 calendar days prior to the hearing (June 18, 2018), along with a list of attendees, and the\nnames of any witnesses who may testify. You may provide this information electronically. If you\nhave any questions, please contact me at (202) 366-6139 or at kristin.baldwin@dot.gov.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nKristin Baldwin\nPresiding Official\n\n\n\ncc (email): CPF No. 4-2018-1002\nPage 2\nMr. Adam Phillips, Counsel, Southwest Region, OPS\nMs. Lauren Clegg, Counsel, Southwest Region, OPS\n\n420181002_Withdrawal of Notice Letter_09072018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 7, 2018\nDoug Shanda\nSenior Vice President, Operations\nCheniere Corpus Christi Pipeline\n700 Milam St, Suite 1900\nHouston, TX 77002\nCPF 4-2018-1002\nDear Mr. Shanda:\nOn April 16, 2018, Cheniere Corpus Christi Pipeline (CCCP) was issued an Amended Notice of\nProbable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice) for the case\nnumber referenced above. This Notice cited CCCP for failing to qualify welding procedures in\naccordance with 49 CFR § 192.225 and Section 5 of API Standard 1104, 20th edition (API 1104\nor Standard), (incorporated by reference, see § 192.7); failing to adequately qualify welders in\naccordance with 49 CFR § 192.227 and Section 6 of API 1104; and failing to construct a pipeline\nfacility according to written specifications by using an unqualified welding procedure and\nunqualified welders per your Welding Manual in accordance with 49 CFR § 192.303.\nThis letter is to inform you that PHMSA, Southwest Region is hereby withdrawing the Notice.\nPHMSA is not pursuing the Notice further because CCCP has fully complied with the Proposed\nCompliance Order in the Notice and there is no further safety concern regarding the welds on the\nCorpus Christi Pipeline. This case is now closed.\nAfter extensive discussions with CCCP, PHMSA remains concerned about the company’s\napplication of Section 5 of API 1104 in this case. PHMSA intends to raise this issue with the API\n1104 Committee and is considering taking other action to ensure that operators apply Section 5 of\nthe Standard in a manner that PHMSA believes is consistent with the intent of API 1104 as well\nas sound engineering practices and pipeline safety.\n\n\n\nIf you have any questions, please contact me at (713) 272-2859.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\ncc: Michael Weller, Senior Counsel, Cheniere Energy, Inc. (by e-mail)\nSusan Olenchuk, Counsel, Van Ness Feldman, LLP (by e-mail)\n2\n\n420181002_PHC Hearing Rescheduled_07102018_text.pdf\n\nJuly 10, 2018\nVIA CERTIFIED MAIL AND EMAIL TO: sam@vnf.com and Mary.McDaniel@dot.gov\nMs. Susan Olenchuk\nCounsel for Cheniere Corpus Christi\nVan Ness Feldman, LLP\n1050 Thomas Jefferson Street, NW\nWashington, DC 20007\nMs. Mary McDaniel\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner, Suite 630\nHouston, TX 77074\nRe: Notice of Hearing, Cheniere Corpus Christi Pipeline\nCPF No. 4-2018-1002\nDear Ms. Olenchuk 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 by the Office\nof Pipeline Safety in the above-referenced case. The hearing has been rescheduled and will take\nplace on September 12, 2018, beginning at 9:00 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\n(713) 272-2859.\nBoth parties must submit and exchange any additional written materials they intend to present at\nleast 10 calendar days prior to the hearing (September 2, 2018), along with a list of attendees, and\nthe names of any witnesses who may testify. You may provide this information electronically. If\nyou have any questions, please contact me at (202) 366-6139 or at kristin.baldwin@dot.gov.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nKristin Baldwin\nPresiding Official\n\n\n\ncc (email): CPF No. 4-2018-1002\nPage 2\nMr. Adam Phillips, Counsel, Southwest Region, OPS\nMs. Lauren Clegg, Counsel, Southwest Region, OPS\n\n420181002_Amended NOPV  PCP  PCO_04162018_text.pdf\n\nAMENDED NOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 16, 2018\nDoug Shanda\nSenior Vice President, Operations\nCheniere Corpus Christi Pipeline\n700 Milam St, Suite 1900\nHouston, TX 77002\nCPF 4-2018-1002\nDear Mr. Shanda:\nOn February 9 and 10, 2017, representatives 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 Cheniere Corpus Christi Pipeline (CCCP) Project in Corpus Christi,\nTexas.\nOn February 5, 2018, PHMSA issued to CCCP a Notice of Probable Violation, Proposed Civil\nPenalty and a Proposed Compliance Order (Original Notice). On February 26, 2018, CCCP\nsubmitted a request for an extension of time to file a response to the Original Notice. On February\n27, 2018, PHMSA granted an extension to CCCP to respond until April 2, 2018. On April 3, 2018,\nPHMSA received a letter from CCCP contesting the violations in the Original Notice and\nrequesting a hearing.\n\n\n\nPursuant to 49 C.F.R. § 190.207(c), PHMSA is issuing this Amended Notice of Probable\nViolation, Proposed Civil Penalty and Proposed Compliance Order (Amended Notice). As a result\nof the inspection","truncated":true,"body_characters":54113}