{"operation":"document","citation":"CPF 420191001W","title":"GULF SOUTH PIPELINE COMPANY, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-01-29","effective_on":null,"summary":"CLOSED warning letter citing 191.22(c)(1)(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420191001w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420191001w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420191001w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420191001W","body":"Warning Letter involving GULF SOUTH PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulation as 191.22(c)(1)(i). The case was opened on 2019-01-29 and is reported as closed as of 2019-01-29. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420191001W_Warning Letter_01292019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420191001W/420191001W_Warning%20Letter_01292019.pdf\n\n420191001W_Warning Letter_01292019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420191001W/420191001W_Warning%20Letter_01292019_text.pdf\n\n420191001W_Warning Letter_01292019_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 29, 2019\nRichard Keyser\nSenior Vice President of Operations\nGulf South Pipeline Company, LP\n9 Greenway Plaza, Suite 2800\nHouston, Texas 77046\nCPF 4-2019-1001W\nDear Mr. Keyser:\nOn June 27, 2017 through June 29, 2017, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) inspected Gulf South Pipeline Company, LP (Gulf South) Coastal\nBend Header Project in West Columbia, Texas Field Office.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violation is:\n1. §191.22 National Registry of Pipeline and LNG operators\n(c) Changes. Each operator of a gas pipeline, gas pipeline facility, underground\nnatural gas storage facility, LNG plant or LNG facility must notify PHMSA\nelectronically through the National Registry of Pipeline, Underground Natural Gas\nStorage Facility, and LNG Operators at http://opsweb.phmsa.dot.gov of certain events.\n\n\n\n(1) An operator must notify PHMSA of any of the following events not later than 60 days\nbefore the event occurs:\n(i) Construction or any planned rehabilitation, replacement, modification, upgrade,\nuprate, or update of a facility, other than a section of line pipe that costs $10 million\nor more. If 60-day notice is not feasible because of an emergency, an operator must\nnotify PHMSA as soon as practicable;\nGulf South failed to notify PHMSA of new construction activities for the Katy Lateral pipeline\nproject as required by 191.22 (c)(1)(i). During a field inspection on June 27, 2017, hydrostatic\npressure testing records and drawings of the existing Index 129 pipeline were reviewed along with\nthe Coast Bend Header (CBH) pipeline project. At that time, PHMSA became aware that\nconstruction of a new pipeline called Katy Lateral would commence in September 2017 at an\ninterconnection with Index 129 and terminate in the Enstor’s natural gas storage facility.\nAfter review of the Katy Lateral project information, PHMSA learned that construction was\nalready in progress. During the project, Gulf South made revisions that caused horizontal\ndirectional drilling (HDD) modifications to surpass the $10 million cost threshold. The cost\nrevisions were made in April of 2017 and Gulf South failed to provide notification as soon as\npracticable or at least 60 days prior to the start of construction as required by 191.22 (c)(1)(i).\nOn June 30, 2017, Gulf South filed an operator registry notification with PHMSA for the Katy\nLateral pipeline project. Gulf South confirmed that the construction began prior to the date of the\noperator notification and did not provide timely notification to PHMSA of the project even after\nproject was revised and the operator became aware that the $10 million threshold was exceeded.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related\nseries of violations. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to\nexceed $2,000,000 for a related series of violations. We have reviewed the circumstances and\nsupporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct the\nitems identified in this letter. Failure to do so will result in Gulf South Pipeline Company, LP\nbeing subject to additional enforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2019-1001W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n3","truncated":false,"body_characters":5427}