ONEOK NGL PIPELINE, LLC — Notice of Probable Violation

case documentOfficial PDF420195017_NOPV PCP_09162019.pdf#

case documentOfficial PDF420195017_NOPV PCP_09162019_text.pdf#

party submissionOfficial PDF420195017_Operator Response to Notice_10182019.pdf#

420195017_Final Order_01142019_text.pdf, page 1Official PDFJanuary 14, 2020 Mr. Terry K. Spencer President and Chief Executive Officer ONEOK, Inc. 100 West Fifth Street Tulsa, Oklahoma 74103 Re: CPF No. 4-2019-5017 Dear Mr. Spencer: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation against your subsidiary, ONEOK NGL Pipeline, LLC, and finds that the civil penalty amount of $63,900 has been paid in full. This case 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 Enclosures (Final Order and NOPV) cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA Mr. Scott Schingen, Vice President - NGL Operations, ONEOK, Inc. CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

420195017_Final Order_01142019_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) ONEOK NGL Pipeline, LLC, ) CPF No. 4-2019-5017 a subsidiary of ONEOK, Inc., ) ) ) ) Respondent. ) ____________________________________) FINAL ORDER On September 16, 2019, pursuant to 49 C.F.R. § 190.207, the Director, Southwest Region, Office of Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to ONEOK NGL Pipeline, LLC (Respondent), a subsidiary of ONEOK, Inc.1 The Notice proposed finding that Respondent had violated the pipeline safety regulations in 49 C.F.R. Part 195 and proposed a civil penalty of $63,900. Respondent did not contest the allegation of violation and paid the proposed civil penalty by wire transfer on October 15, 2019. In accordance with § 190.208(a)(1), such payment authorizes the entry of this final order. Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the pipeline safety regulations listed below, as more fully described in the enclosed Notice: 49 C.F.R. § 195.452(h)(4)(ii)(B) (Item 1) ─ Respondent failed to remediate a dent with metal loss on the bottom of the Lufkin to Mont Belvieu Loop Index 21084 10-inch pipeline segment within 60 days of discovery. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is assessed the proposed civil penalty amount of $63,900, which Respondent has already paid in full. The terms and conditions of this order are effective upon service in accordance with 49 C.F.R. § 190.5. January 14, 2020 ___________________________________ _________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety 1 ONEOK, Inc.’s website, available at https://www.oneok.com/customers/ngl (last accessed on December 23, 2019).#

420195017_Final Order_01142020.pdf, page 1Official PDFU.S. Department JAN 1 4 2020 1200 New Jersey Ave., SE of Transportation Washington, DC 20590 Pipeline and Hazardous Materials Safety Administratior Mr. Terry K. Spencer President and Chief Executive Officer ONEOK, Inc. 100 West Fifth Street Tulsa, Oklahoma 74103 Re: CPF No. 4-2019-5017 Dear Mr. Spencer: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation against your subsidiary, ONEOK NGL Pipeline, LLC, and finds that the civil penalty amount of $63,900 has been paid in full. This case 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, Associate Administrator for Pipeline Safety Enclosures (Final Order and NOPV) CC: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA Mr. Scott Schingen, Vice President - NGL Operations, ONEOK, Inc. CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

420195017_Final Order_01142020.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 In the Matter of ONEOK NGL Pipeline, LLC, CPF No. 4-2019-5017 a subsidiary of ONEOK, Inc., Respondent. FINAL ORDER On September 16, 2019, pursuant to 49 C.F.R. § 190.207, the Director, Southwest Region, Uttice ot Pipeline Satety (OPS), issued a Notice of Probable Violation (Notice) to ONEOK NGL Pipeline, LLC (Respondent), a subsidiary of ONEOK, Inc.' The Notice proposed finding that ivil penalty of $63,900. Respondent did not contest the allegation of violation and paid th espondent had violated the pipeline safety regulations in 49 C.F.R. Part 195 and proposed proposed civil penalty by wire transfer on October 15, 2019. In accordance with § 190.208(a)(1), such payment authorizes the entry of this final order. Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the pipeline safety regulations listed below, as more fully described in the enclosed Notice: 49 C.F.R. § 195.452(h)(4)(ii)(B) (Item 1) - Respondent failed to remediate a dent with metal loss on the bottom of the Lufkin to Mont Belvieu Loop Index 21084 10-inch pipeline segment within 60 days of discovery. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is assessed the proposed civil penalty amount of $63,900, which Respondent has already paid in full. The terms and conditions of this order are effective upon service in accordance with 49 C.F.R. § 190.5. Plant Wan JAN 1 4 2020 Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety 'ONEOK, Inc.'s website, available at https://www.oneok.com/customers/ngl (last accessed on December 23, 2019).#

420195017_Final Order_01142020.pdf, page 3U.S. Department 8701 S. Gessner, Suite 630 of Transportation Houston, TX 77074 Pipeline and Administration Hazardous Materials Safety NOTICE OF PROBABLE VIOLATION and PROPOSED CIVIL PENALTY CERTIFIED MAIL - RETURN RECEIPT REQUESTED September 16, 2019 Scott Schingen Vice President NGL Operations Oneok NGL Pipeline, LLC 100 West Fifth Street Tulsa, Oklahoma 74103 CPF 4-2019-5017 Dear Mr. Schingen: From October 15, 2018 to March 20, 2019, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Oneok NGL Pipeline, LLC's (Oneok) West Texas LPG System Pipelines in New Mexico and Texas. As a result of the inspection, it is alleged that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable violation is:#

420195017_Final Order_01142020.pdf, page 41. $195.452 Pipeline integrity management in high consequence areas. (a) Which pipelines are covered by this section? This section applies to each hazardous liquid pipeline and carbon dioxide pipeline that could affect a high consequence area, including any pipeline located in a high consequence area unless the operator effectively demonstrates by risk assessment that the pipeline could not affect the area. (b) What actions must an operator take to address integrity issues? (4) Special requirements for scheduling remediation (ii) 60-day conditions. Except for conditions listed in paragraph (h)(4)(i) of this section, an operator must schedule evaluation and remediation of the following conditions within 60 days of discovery of condition. (B) A dent located on the bottom of the pipeline that has any indication of metal loss, cracking or a stress riser. Oneok failed to remediate a dent with metal loss on the bottom of the Lufkin to Mont Belvieu Loop Index 21084 10-inch pipeline segment within 60 days of discovery on the as required by § 195.452(h) (4)(ii)(B). Oneok performed an in-line inspection of the Lufkin to Mont Belvieu Loop Index 21084 10-inch pipeline segment on January 24, 2017, using a T.D. Williamson (TDW) combination Magnetic. Flux Leakage and Deformation inspection tool. TDW issued to Oneok a Final Pipeline Inspection Report on June 27, 2017. The Final Report indicated a 1 percent dent with 10 percent external metal loss at the same orientation on the bottom of the pipe. The bottom side dent with indication of metal loss was located in a High Consequence Area; therefore, Oneok was required to remediate the dent with metal loss within 60 days of discovery in accordance with § 195.452(h) (4)(ii)(B). On November 15, 2017, Oneok remediated the dent with metal loss by welding a Type-B sleeve over the anomaly. With the discovery date for the conditions being June 27, 2017, Oneok exceeded the 60-day remediation schedule by 81 days. Proposed Civil Penalty Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved for the above probable violation and has recommended that you be preliminarily assessed a civil penalty of $63,900. 2#

420195017_Final Order_01142020.pdf, page 5Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All material submit in response to this enforcement action may be made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). Following the receipt of this Notice, you have 30 days to submit written comments, or request a hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. If you are responding to this Notice, we propose that you submit your correspondence to my office within 30 days from the receipt of this Notice. This period may be extended by written request for good cause. In your correspondence on this matter, please refer to CPF 4-2019-5017 and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Mary L. McDaniel, P.E. Director, Southwest Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings#