{"operation":"document","citation":"CPF 420182001","title":"WILLIAMS FIELD SERVICES - GULF COAST COMPANY, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-11-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.477, 192.605(a), 192.613(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420182001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420182001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420182001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420182001","body":"Notice of Probable Violation involving WILLIAMS FIELD SERVICES - GULF COAST COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 192.477,  192.605(a),  192.613(a). The case was opened on 2018-11-16 and is reported as closed as of 2019-06-27. Proposed civil penalty: $60,800. Assessed civil penalty: $60,800. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420182001_Final Order_06272019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420182001/420182001_Final%20Order_06272019.pdf\n\n420182001_Final Order_06272019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420182001/420182001_Final%20Order_06272019_text.pdf\n\n420182001_NOPV PCP PCO_11162018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420182001/420182001_NOPV%20PCP%20PCO_11162018.pdf\n\n420182001_NOPV PCP PCO_11162018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420182001/420182001_NOPV%20PCP%20PCO_11162018_text.pdf\n\n420182001_Operator Response to Notice_12142018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420182001/420182001_Operator%20Response%20to%20Notice_12142018.pdf\n\n420182001_NOPV PCP PCO_11162018_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 16, 2018\nRobert Cronk\nVice President, Technical Services\nWilliams Field Services-Gulf Coast Company, LP\nOne Williams Center\nTulsa, Oklahoma 74101\nCPF 4-2018-2001\nDear Mr. Cronk:\nFrom January 24, 2017 through July 10, 2017, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code inspected Williams Field Services-Gulf Coast Company, LP’s\nplans and records for operations and maintenance in Houston, Texas, and conducted field\nevaluation of its offshore Seahawk Gas Gathering System West Gulf Coast assets.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolations are:\n1. 192.613 Continuing Surveillance.\n(a) Each operator shall have a procedure for continuing surveillance of its facilities\nto determine and take appropriate action concerning changes in class location,\nfailures, leakage history, corrosion, substantial changes in cathodic protection\nrequirements, and other unusual operating and maintenance conditions.\n\n\n\n192.605 Procedural manual for operations, maintenance, and emergencies.\n(e) Surveillance, emergency response, and accident investigation. The procedures\nrequired by §192.613(a), §192.615, and §192.617 must be included in the manual\nrequired by paragraph (a) of this section.\nWilliams failed to have a procedure to address continuing surveillance of its pipeline facilities as\nrequired by § 192.613 (a).\nDuring the audit, Williams was not able to provide a procedure for Continuing Surveillance as per\n192.613(a). The Operator informed PHMSA they are in the process of drafting a Continuing\nSurveillance procedure to be added to the manuals during the 2017 annual review.\n2. §192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include procedures\nfor handling abnormal operations. This manual must be reviewed and updated by\nthe operator at intervals not exceeding 15 months, but at least once each calendar\nyear. This manual must be prepared before operations of a pipeline system\ncommence. Appropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\nWilliams did not have a procedure to address the steps needed to minimize the danger of accidental\nignition of gas in any structure or area where the presence of gas constitutes a hazard of fire or\nexplosion as per §192.751(a).\nDuring the inspection, Williams provided their written Hot Work procedure 5.05-ADM-021 and\nForm WES-96 Permit to Work to the PHMSA inspector for review. The procedure and form\nprovided by the operator only address the precautions after issuing a hot permit. Williams did not\nhave procedures to address minimizing danger of accidental ignition as required.\n3. §192.477 Internal corrosion control: Monitoring.\nIf corrosive gas is being transported, coupons or other suitable means must be used\nto determine the effectiveness of the steps taken to minimize internal corrosion. Each\ncoupon or other means of monitoring internal corrosion must be checked two times\neach calendar year, but with interval not exceeding 7 1/2 months.\nThe operator failed to inspect coupons two times each calendar year, but with intervals not\nexceeding 7 ½ months, as required per the Internal Corrosion Control Program 7.05-ADM-008,\nRev. 8 Section 2.3.3.\n2\n\n\n\nDuring the audit, the PHMSA inspector reviewed William's current procedure, Internal Corrosion\nControl Program 7.05-ADM-008 Rev. 8, Section 2.3.3 and the associated coupon reports. On\nmultiple occasions, the Operator failed to inspect coupons on the segments listed below two times\neach calendar year, but with interval not exceeding 7 1/2 months.\n Perdido Oil Sales Line Coupon CC-9010-03. Inspections recorded for 7/2013, 6/2014, 2/2015,\n11/2015, and 05/2016.\n Perdido Sales Gas to Pig Launcher CC-8020-13. Inspections recorded for 6/2013, 2/2015,\n11/2015, and 05/2016.\n Perdido Sales Gas to Pig Launcher CC-8020-14. Inspections recorded for 6/2013, 2/2015,\n11/2015, and 05/2016.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$209,002 per violation per day the violation persists up to a maximum of $2,090,022 for a related\nseries of violations. For violations occurring prior to November 2, 2015, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000\nfor a related series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violations and has recommended that\nyou be preliminarily assessed a civil penalty of $60,800 as follows:\nItem number PENALTY\n3 $60,800\nProposed Compliance Order\nWith respect to items 1, and 2 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Williams\nField Services-Gulf Coast Company, L.P. Please refer to the Proposed Compliance Order, which\nis enclosed and made 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.\n3\n\n\n\nIn your correspondence on this matter, please refer to CPF 4-2018-2001 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\n4\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 Williams Field Services-Gulf Coast Company, L.P.\na Compliance Order incorporating the following remedial requirements to ensure the compliance\nof Williams Field Services-Gulf Coast Company, L.P. with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number 1 of the Notice pertaining to the failure to provide procedures\naddressing continuing surveillance of pipeline facilities, Williams Field Services must\ninclude the procedures in their manual to fulfill 192.613 (a). This must be completed\nwithin 30 days of after receipt of the Final Order.\nIn regard to Item Number 2 of the Notice pertaining to the failure to provide procedures\naddressing the steps to minimize the danger of accidental ignition of gas in any\nstructure, Williams Field Services must include the procedures in their manual to fulfill\n192.751 (a). This must be completed within 30 days of after receipt of the Final Order.\nIt is requested (not mandated) that Williams Field Services-Gulf Coast Company, L.P.\nmaintain documentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Mary L. McDaniel, P.E., Director, Southwest\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested that\nthese costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline infrastructure.\n5\n\n420182001_Final Order_06272019_text.pdf\n\nJune 27, 2019\nMr. Alan S. Armstrong\nPresident and Chief Executive Officer\nThe Williams Companies, Inc.\nOne Williams Center\nTulsa, Oklahoma 74172\nRe: CPF No. 4-2018-2001\nDear Mr. Armstrong:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nWilliams Field Services – Gulf Coast Company, LP. It withdraws one of the allegations of\nviolation, makes other findings of violation and assesses a civil penalty of $60,800. This is to\nacknowledge receipt of payment of the full penalty amount, by wire transfer, dated December\n31, 2018. This enforcement action is now closed. Service of the Final Order by certified mail is\neffective upon the date of mailing, as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Ms. Mary L. McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Mark Cluff, Vice President, Safety & Operational Discipline, Williams Field\nServices – Gulf Coast Company, LP\nMr. Clint Ratke, Manager – Pipeline Safety, Williams Field Services – Gulf Coast\nCompany, LP, Clint.Ratke@Williams.com\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n________________________________________________\nIn the Matter of )\n)\n)\nWilliams Field Services – Gulf Coast Company, LP, a subsidiary of The Williams Companies, Inc. )\n)\nRespondent. )\n________________________________________________)\n) CPF No. 4-2018-2001\nFINAL ORDER\nFrom January 24, 2017 through July 10, 2017, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Williams\nField Services – Gulf Coast Company, LP (Williams or Respondent) in Houston and Bay City,\nTexas, and the Seahawk Gas Gathering System West Gulf Coast offshore assets located in the\nGulf of Mexico. Williams, a subsidiary of The Williams Companies, Inc., operates the Seahawk\nGas Gathering System West Gulf Coast, which consists of five main segments with a total\nmileage of 222.66 miles.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated November 16, 2018, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Williams had committed three violations of 49 C.F.R. Part 192 and\nproposed assessing a civil penalty of $60,800 for the alleged violations. The Notice also\nproposed ordering Respondent to take certain measures to correct the alleged violations.\nWilliams responded to the Notice by letter dated December 14, 2018 (Response). The company\ndid not contest two of the allegations of violation, paid the proposed civil penalty of $60,800\nassociated with one of the alleged violations, and provided information concerning the corrective\nactions it had taken in response to the other allegation of violation that it did not contest. In\naccordance with 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate\nAdministrator to make a finding of violation and to issue this final order without further\nproceedings. The company also contested one allegation of violation, offered additional\ninformation in response to the Notice, and requested that the alleged violation be withdrawn.\nRespondent did not request a hearing and therefore has waived its right to one.\n\n\n\nCPF No. 4-2018-2001\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.613(a), which states:\n§ 192.613 Continuing surveillance.\n(a) Each operator shall have a procedure for continuing surveillance of\nits facilities to determine and take appropriate action concerning changes in\nclass location, failures, leakage history, corrosion, substantial changes in\ncathodic protection requirements, and other unusual operating and\nmaintenance conditions.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.613(a) by failing to have\nprocedures for continuing surveillance of its pipeline facilities as required by the regulation.\nSpecifically, the Notice alleged that Williams did not have procedures for continuing\nsurveillance included in its manual for operations, maintenance, and emergencies as required by\n§ 192.605(e). During the inspection, Williams personnel stated that they were in the process of\ndrafting a procedure for continuing surveillance and would include the procedure in its\noperations manual upon completion.\nRespondent did not contest the allegation of violation, but did provide a copy of its procedure for\ncontinuing surveillance, which was created subsequent to the inspection. The procedure\nsubmitted by Williams addressed the concerns raised in the Notice.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.613(a) by failing to have a procedure for continuing surveillance of its facilities.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline,\na manual of written procedures for conducting operations and maintenance\nactivities and for emergency response. For transmission lines, the manual\nmust also include procedures for handling abnormal operations. This\nmanual must be reviewed and updated by the operator at intervals not\nexceeding 15 months, but at least once each calendar year. This manual\nmust be prepared before operations of a pipeline system commence.\nAppropriate parts of the manual must be kept at locations where, operations\nand maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to have a\nprocedure to address the steps needed to minimize the danger of accidental ignition of gas in any\nstructure or area where the presence of gas constitutes a hazard of fire or explosion. Specifically,\n\n\n\nCPF No. 4-2018-2001\nPage 3\nthe Notice alleged that Williams’ written Hot Work procedure 5.05-ADM-021 and Form WFS-\n96 Permit to Work only addressed precautions after issuing a hot permit, but did not address\nminimizing danger of accidental ignition as required by the regulation.\nIn its Response Williams contested the allegation of violation and stated that it had a procedure\nin place at the time of the inspection that addressed minimizing danger of accidental ignition as\nrequired by the regulation. Williams stated that it was never specifically asked for this\nprocedure, and therefore did not provide a copy for review during the inspection. Williams\nprovided a copy of its procedure “02.10.70.23-Midstream Fire Prevention” with its Response and\nnoted that the procedure has been in place since August 2005, as evidenced by a revision log also\nprovided by Williams. Based on the procedure provided, Williams requested that the Item be\nwithdrawn.\nAccordingly, after considering all of the evidence, I find that Williams’s procedure “02.10.70.23-\nMidstream Fire Prevention” satisfies the requirements of the regulation and was in place at the\ntime of the inspection. Based upon the foregoing, I hereby order that Item 2 be withdrawn.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.477, which states:\n§ 192.477 Internal corrosion control: Monitoring.\nIf corrosive gas is being transported, coupons or other suitable means\nmust be used to determine the effectiveness of the steps taken to minimize\ninternal corrosion. Each coupon or other means of monitoring internal\ncorrosion must be checked two times each calendar year, but with intervals\nnot exceeding 7½ months.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.477 by failing to inspect coupons\ntwo times each calendar year, but with intervals not exceeding 7½ months. Specifically, the\nNotice alleged that Williams “Internal Corrosion Control Program 7.05-ADM-008 Rev. 8,\nSection 2.3.3” procedure and the associated coupon reports revealed that Williams failed to\ninspect coupons on the segments listed below two times each calendar year, but with intervals\nnot exceeding 7½ months:\n Perdido Oil Sales Line Coupon CC-9010-03. Inspections recorded for 7/2013, 6/2014,\n2/2015, 11/2015, and 05/2016;\n Perdido Sales Gas to Pig Launcher CC-8020-13. Inspections recorded for 6/2013, 2/2015,\n11/2015, and 05/2016; and\n Perdido Sales Gas to Pig Launcher CC-8020--14. Inspections recorded for 6/2013,\n2/2015, 11/2015, and 05/2016.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.477 by failing to inspect\ncoupons two times each calendar year, but with intervals not exceeding 7½ months.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n\n\n\nCPF No. 4-2018-2001\nPage 4\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.1 In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $60,800 for the violations cited above.\nItem 3: The Notice proposed a civil penalty of $60,800 for Respondent’s violation of 49 C.F.R.\n§ 192.477, for failing to inspect coupons two times each calendar year, but with intervals not\nexceeding 7½ months. Williams neither contested the allegation nor presented any evidence or\nargument justifying a reduction in or elimination of the proposed penalty. Accordingly, having\nreviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of\n$60,800 for violation of 49 C.F.R. § 192.477.\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $60,800, which amount was paid\nin full by wire transfer on December 31, 2018.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 2 in the Notice for\nviolations of 49 C.F.R. §§ 192.613(a) and 192.605(a), respectively. Under 49 U.S.C. § 60118(a),\neach person who engages in the transportation of gas or who owns or operates a pipeline facility\nis required to comply with the applicable safety standards established under chapter 601. The\nDirector indicates that Respondent has taken the following actions specified in the proposed\ncompliance order:\n1. With respect to the violation of § 192.613(a) (Item 1), Respondent has complied\nwith the proposed compliance order by submitting procedures that comply with the\nregulation.\n2. With respect to the violation of § 192.605(a) (Item 2), for the reasons stated\nabove, this allegation of violation is withdrawn. Therefore, the terms of the proposed\ncompliance order associated with this Item are not included.\n1 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,\n83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).\n\n\n\nCPF No. 4-2018-2001\nPage 5\nAccordingly, I find that compliance has been achieved. Therefore, the compliance terms\nproposed in the Notice are not included in this Order.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of the\nFinal Order by Respondent. Any petition submitted must contain a brief statement of the issue(s)\nand meet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically\nstays the payment of any civil penalty assessed. The other terms of the order, including any\ncorrective action, remain in effect unless the Associate Administrator, upon request, grants a\nstay. If Respondent submits payment of the civil penalty, the Final Order becomes the final\nadministrative decision and the right to petition for reconsideration is waived.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nJune 27, 2019\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":23334}