{"operation":"document","citation":"CPF 420201010","title":"ANR PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-11-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.616(a), 192.727(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420201010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420201010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420201010","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420201010","body":"Notice of Probable Violation involving ANR PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.616(a),  192.727(b). The case was opened on 2020-11-16 and is reported as closed as of 2021-10-07. Proposed civil penalty: $36,200. Assessed civil penalty: $36,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420201010_ NOPV PCP PCO_11162020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201010/420201010_%20NOPV%20PCP%20PCO_11162020.pdf\n\n420201010_ NOPV PCP PCO_11162020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201010/420201010_%20NOPV%20PCP%20PCO_11162020_text.pdf\n\n420201010_Closure Letter_10072021_(18-163745S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201010/420201010_Closure%20Letter_10072021_(18-163745S).pdf\n\n420201010_Closure Letter_10072021_(18-163745S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201010/420201010_Closure%20Letter_10072021_(18-163745S)_text.pdf\n\n420201010_Final Order_01282021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201010/420201010_Final%20Order_01282021.pdf\n\n420201010_Final Order_01282021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420201010/420201010_Final%20Order_01282021_text.pdf\n\n420201010_Final Order_01282021_text.pdf\n\nJanuary 28, 2021\nVIA ELECTRONIC MAIL TO: stanley chapman iii@tcenergy.com\nMr. Stanley G. Chapman III\nExecutive NP & President U.S. Pipelines\nANR Pipeline Company\n700 Louisiana Street, Suite 700\nHouston, Texas 77002\nRe: CPF No. 4-2020-1010\nDear Mr. Chapman:\nEnclosed please find the Final Order issued in the above-referenced case to TC Energy’s\nsubsidiary, ANR Pipeline Company. It makes one finding of violation, assesses a civil penalty\nof $36,200, and specifies actions that need to be taken to comply with the pipeline safety\nregulations. When the civil penalty has been paid and the terms of the compliance order\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Service of the Final Order by electronic mail is effective upon the date of transmission as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Lee Romack, Director, U.S. Regulatory Compliance, TC Energy Corporation,\nlee_romack@tcenergy.com\nMr. Francois Poirier, President, TC Energy Corporation, francois_poirier@tcenergy.com\nCONFIRMATION OF 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 )\nANR Pipeline Company, ) CPF No. 4-2020-1010\na subsidiary of TC Energy Corporation, )\n)\n)\n)\nRespondent. )\n_____________________________________)\nFINAL ORDER\nOn November 16, 2020, pursuant to 49 C.F.R. § 190.207, the Director, Southwest Region, Office\nof Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to ANR Pipeline\nCompany (Respondent), a subsidiary of TC Energy Corporation. The Notice proposed finding\nthat Respondent had violated the pipeline safety regulations in 49 C.F.R. Part 192. The Notice\nalso proposed certain measures to correct the violation. Respondent did not contest the\nallegations of violation, the proposed civil penalty, or the corrective measures.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find that Respondent\nviolated the pipeline safety regulation listed below, as more fully described in the enclosed\nNotice, which is incorporated by reference:\n49 C.F.R. § 192.616 (Item 1) ─ Respondent failed to implement the American\nPetroleum Institute’s (API) Recommended Practice (RP) 1162 in the company’s\nPublic Awareness Program (PAP): specifically, with respect to the\nimplementation of two recommendations regarding the company’s System Wide\nRisk Assessment data plan, and an internal audit process for communication\nrelated to the company’s PAP effectiveness reviews and communication best\npractices. In addition, the company failed to complete a timely PAP effectiveness\nreview, and conducted a 2018 PAP effectiveness study that contained numerous\nerrors and mistakes.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a total\ncivil penalty of $36,200.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\n\n\n\nCPF No. 4-2020-1010\nPage 2\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $36,200 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violation. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof ordered actions, Respondent may request that the Director close the case. Failure to comply\nwith this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nWARNING ITEM\nWith respect to Item 2, the Notice alleged probable violations of 49 C.F.R. § 192.727, but did not\npropose a civil penalty or compliance order for this item. Therefore, this is considered to be a\nwarning item. If OPS finds a violation of this provision in a subsequent inspection, Respondent\nmay be subject to future enforcement action.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nJanuary 28, 2021\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420201010_Closure Letter_10072021_(18-163745S)_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nOctober 7, 2021\nStanley G. Chapman, III\nExecutive NP & President U.S. Pipelines\nANR Pipeline Company\n700 Louisiana Street, Suite 700\nHouston, Texas 77002\nCPF 4-2020-1010\nDear Mr. Chapman:\nOn January 28, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to ANR Pipeline Company a Final Order in the above-referenced case. This Order included\na Compliance Order requirement, a Civil Penalty, and a Warning Item. Based on PHMSA’s review\nof the documentation provided by ANR and confirmation of payment of the civil penalty, it has\nbeen determined that ANR has complied with the terms of the Final Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420201010_ NOPV PCP PCO_11162020_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nNovember 16, 2020\nStanley Chapman III\nExecutive VP & President U.S. Pipelines\nANR Pipeline Company\n700 Louisiana Street\nHouston, Texas 77002\nCPF 4-2020-1010\nDear Mr. Chapman:\nFrom March 8, 2019 through January 8, 2020, 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 (U.S.C.) inspected your natural gas pipeline and associated facilities\nfor ANR Pipeline Company’s Southwest North (Mid America Region - Southeast Mainline)\nPipelines, Loop Lines 501, 1-501, and 2-501, and System 1168 in Louisiana, Mississippi,\nArkansas, Tennessee, and Kentucky.\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 (CFR). The items inspected\nand the probable violations are:\n1. §192.616 Public Awareness\n(a) Except for an operator of a master meter or petroleum gas system covered under\nparagraph (j) of this section, each pipeline operator must develop and implement\na written continuing public education program that follows the guidance\nprovided in the American Petroleum Institute's (API) Recommended Practice\n(RP) 1162 (incorporated by reference, see § 192.7).\n\n\n\n2\nANR Pipeline Company’s (ANR) Public Awareness Program (PAP), dated September 13, 2019,\nfailed to follow the guidance provided in the American Petroleum Institute’s (API) Recommended\nPractice (RP) 1162 as required by §192.616(a). Specifically, ANR failed to follow general\nprogram recommendations in Section 8 of API RP 1162 in implementing its PAP.\nFirst, ANR failed to implement Sections 11 and 12 of its PAP, which follows the guidance in API\nRP 1162, Section 8.3, Measuring Program Implementation. ANR failed to implement two\nrecommendations from the 2015 Management Review for improvements into their 2016 PAP. In\nresponse to a request for information regarding ANR’s incorporation of recommendations into its\n2016 PAP, ANR was unable to provide any documentation that it had implemented the following\ntwo recommendations into its 2016 PAP: Recommendation One – ANR’s System Wide Risk\nAssessment data plan; and Recommendation Two - An internal audit process for all\ncommunication related to the execution of recommendations from the effectiveness studies and\nimplementation of communication best practices.\nSecond, ANR failed to assess the effectiveness of its PAP every four years, in accordance with\nSection 8.4, Measuring Program Effectiveness, and Table 8-1, Summary of Baseline Evaluation\nProgram, of API RP 1162 and Sections 6, 11, and 12 of its PAP. ANR conducted an effectiveness\nreview in 2014 and did not conduct a subsequent effectiveness review until 2019. Therefore, ANR\nexceeded the four-year interval requirement prescribed in API RP 1162 and its own procedures by\none year.\nAdditionally, prior to performing an effectiveness review, ANR contracted a third-party vendor to\nprepare an effectiveness study to be utilized for and incorporated into ANR’s effectiveness review.\nHowever, this 2018 effectiveness study contained numerous inaccuracies, errors, and erroneous\ndata, such as references to non-ANR assets and data from outside the required four-year interval.\nThe effectiveness review of the PAP, which ANR eventually completed in 2019, relied upon the\ninaccuracies and erroneous data from the 2018 effectiveness study. The effectiveness review also\nfailed to incorporate certain information required by Section 12 of ANR’s PAP, such as the\noperator’s monthly and quarterly Employee Health and Safety Management – Incident Tracking\nTool (EHSM) reports.\n2. §192.727 Abandonment or deactivation of facilities.\n(a) . . .\n(b) Each pipeline abandoned in place must be disconnected from all sources and\nsupplies of gas; purged of gas; in the case of offshore pipelines, filled with water\nor inert materials; and sealed at the ends. However, the pipeline need not be\npurged when the volume of gas is so small that there is no potential hazard.\n2\n\n\n\n3\nANR failed to abandon its pipeline in accordance with §192.727(b) and its operation and\nmaintenance (O&M) Procedure 003864117 Section 4.4 titled, Deactivation or Abandonment.\nSpecifically, ANR failed to properly abandon its VGR pipeline at the Madisonville Kentucky\nCompressor Station by disconnecting the pipeline from all gas sources, purging, filling the pipeline\nwith an inert material, and sealing the ends of the pipeline.\nAt the time of inspection, ANR’s Madisonville Kentucky Compressor Station site plan/maps\nshowed a 2”-3” VGR pipeline as having been abandoned in-place on August 26, 2019. Upon\nfurther investigation, PHMSA learned the operator had only closed a valve with the line still under\npressure even though the pipeline was marked on ANR’s site plan/station maps as abandoned.\nPHMSA reviewed the regulatory requirements and the O&M Procedure with ANR, who agreed\nthat the requirements for abandonment had not been followed and corrected the pipeline\ndesignation on September 11, 2019, from abandoned to active on the site plan/maps.\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$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31,\n2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum\npenalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015,\nthe maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. We have reviewed the circumstances\nand supporting documentation involved for the above probable violation(s) and recommend that\nyou be preliminarily assessed a civil penalty of $36,200 as follows:\nItem number PENALTY\n1 $36,200\nWarning Item\nWith respect to item 2, we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct this item. Failure to do so may result\nin additional enforcement action.\n3\n\n\n\n4\nProposed Compliance Order\nWith respect to item 1, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to ANR Pipeline Company. Please refer to\nthe Proposed Compliance Order, which is 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\nEnforcement 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).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. 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. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 4-2020-1010 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 Enforcement Proceedings\n4\n\n\n\n5\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to ANR Pipeline Company (ANR) a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of ANR with\nthe pipeline safety regulations:\n1. 2. 3. In regard to Item 1 of the Notice pertaining to the ANR’s 2018 Four-year\nEffectiveness Study and Review, ANR must provide PHMSA with documentation\nthat they have corrected and validated their 2018 Effectiveness Review and Study\nto ensure it accurately reflects the requirements of API RP 1162. If ANR is unable\nto make corrections to its 2018 Effectiveness Review and Study to meet the\nrequirements of API RP 1162, ANR must conduct and complete a new\nEffectiveness Review and Study of its PAP.\nANR must submit documentation to Mary McDaniel, Director, Southwest Region,\nPipeline and Hazardous Materials Safety Administration to demonstrate\ncompliance with the requirements of Item 1 within 180 days of receipt of the Final\nOrder.\nIt is requested (not mandated) that ANR maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to Mary McDaniel, Director, Southwest Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in two\ncategories: 1) total cost associated with preparation/revision of plans, procedures,\nstudies and analyses, and 2) total cost associated with replacements, additions and\nother changes to pipeline infrastructure.\n5","truncated":false,"body_characters":18381}