{"operation":"document","citation":"CPF 42021016NOPV","title":"EQUISTAR CHEMICALS, L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-19","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(b)(5), 195.452(f)(1), 195.452(f)(6), 195.452(k).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021016nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021016nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021016nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021016NOPV","body":"Notice of Probable Violation involving EQUISTAR CHEMICALS, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.452(b)(5),  195.452(f)(1),  195.452(f)(6),  195.452(k). The case was opened on 2021-03-19 and is reported as closed as of 2022-06-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021016NOPV_Closure Letter_06032022_(20-172500).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_Closure%20Letter_06032022_(20-172500).pdf\n\n42021016NOPV_Closure Letter_06032022_(20-172500)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_Closure%20Letter_06032022_(20-172500)_text.pdf\n\n42021016NOPV_Final Order_09032021_(20-172500).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_Final%20Order_09032021_(20-172500).pdf\n\n42021016NOPV_Final Order_09032021_(20-172500)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_Final%20Order_09032021_(20-172500)_text.pdf\n\n42021016NOPV_Operator Response to Notice_04082021_(20-172500).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_Operator%20Response%20to%20Notice_04082021_(20-172500).pdf\n\n42021016NOPV_PCO_03192021_(20-172500).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_PCO_03192021_(20-172500).pdf\n\n42021016NOPV_PCO_03192021_(20-172500)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021016NOPV/42021016NOPV_PCO_03192021_(20-172500)_text.pdf\n\n42021016NOPV_Closure Letter_06032022_(20-172500)_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nJune 3, 2022\nMichael VanDerSnick\nSenior Vice President, Americas Manufacturing\nEquistar Chemicals, LP\n16055 Space Center Blvd., Suite 350\nHouston, Texas 77062\nCPF 4-2021-016-NOPV\nDear Mr. VanDerSnick:\nOn September 3, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Equistar Chemicals L.P. a Final Order in the above-referenced case. This Order included\na Compliance Order. Based on our review of the documentation you provided, it has been\ndetermined that you have complied with the terms of this 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\n42021016NOPV_Final Order_09032021_(20-172500)_text.pdf\n\nSeptember 3, 2021\nVIA ELECTRONIC MAIL TO: michael.vandersnick@lyb.com\nMichael VanDerSnick\nSenior Vice President, Americas Manufacturing\nEquistar Chemicals, LP\n16055 Space Center Blvd., Ste. 350\nHouston, Texas 77062\nRe: CPF No. 4-2021-016-NOPV\nDear Mr. VanDerSnick:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Equistar Chemicals, LP, to comply with\nthe pipeline safety regulations. When the terms of the compliance order have been completed, as\ndetermined by the Director, Southwest Region, this enforcement action will be closed. Service\nof the Final Order by electronic mail is effective upon the date of transmission as provided under\n49 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 McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMs. Kimberly H. Lenz, HSE Manager, Equistar Pipeline, kimberly.lenz@lyb.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 )\nEquistar Chemicals, LP, ) CPF No. 4-2021-016-NOPV\na subsidiary of LyondellBasell Industries N.V., )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom March 2, 2020, through October 15, 2020, pursuant to 49 U.S.C. § 60117, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of\nEquistar Chemicals, LP (Equistar or Respondent) in Texas and Louisiana, specifically, its\n35.3-mile propylene pipeline running from Orange, Texas to Lake Charles, Louisiana. Equistar\nis a subsidiary of LyondellBasell Industries N.V. and operates approximately 1,500 miles of gas\nand hazardous liquid pipelines in Texas and Louisiana.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated March 19, 2021, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Equistar had committed two violations of 49 C.F.R. Part 195 and proposed ordering\nRespondent to take certain measures to correct the alleged violations. The Notice also included a\nwarning item pursuant to 49 C.F.R. § 190.205, which required no further action, but warned the\noperator to correct the probable violation or face possible future enforcement action.\nEquistar responded to the Notice by letter dated April 8, 2021 (Response). The company did not\ncontest the allegations of violation and provided information concerning the corrective actions it\nplanned to take with respect to portions of the pipeline at issue. Respondent did not request a\nhearing and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Equistar did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(b)(5), which states:\n\n\n\nCPF No. 4-2021-016-NOPV\nPage 2\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(b) What program and practices must operators use to manage pipeline\nintegrity? Each operator of a pipeline covered by this section must:\n(1) Develop a written integrity management program . . . .\n(5) Implement and follow the program.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(b)(5) by failing to follow its\nIntegrity Management Program (IMP) for identifying which pipeline segments could affect a\nhigh consequence area (HCA) as required by § 195.452(f)(1).1 Specifically, the Notice alleged\nthat Equistar’s IMP required separately classifying non-pipe-like facilities as distinct assessable\nsegments to be assessed using the facility assessment process. During the inspection, Equistar\nwas unable to provide any documentation showing that non-pipe-like facilities were separately\nconsidered from the segments with line pipe and pipe-like facilities.\nIn its Response, Respondent did not contest this allegation of violation. Accordingly, based\nupon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.452(b)(5)\nby failing to follow its IMP for identifying which pipeline segments could affect an HCA.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(b)(5), as quoted\nabove.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(b)(5) by failing to follow its\nIMP to determine the need for preventative and mitigative measures as required by\n§ 195.452(f)(6).2 Specifically, the Notice alleged that Equistar’s IMP required the identification\nof potential preventive and mitigative measures, but Equistar was unable to provide any evidence\nto demonstrate the operator’s actions to determine the need for potential preventative and\nmitigative measures in accordance with its IMP.\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. § 195.452(b)(5) by failing to\ndetermine the need for preventative and mitigative measures on its pipeline.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\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. § 195.452(b)(5).\n1 Section 195.452(f)(1) requires, among other things, that operators include in their IMP a process for identifying\nwhich pipeline segments could affect an HCA.\n2 Section 195.452(f)(6) requires, among other things, that operators include in their IMP the identification of\npreventive and mitigative measures to protect the HCA. See also § 195.452(i).\n\n\n\nCPF No. 4-2021-016-NOPV\nPage 3\nIn its Response, Equistar stated that when PHMSA conducted its inspection, Equistar was the\noperator of the 8-inch, 6-inch, and 4-inch sections of the 35.3-mile propylene pipeline running\nfrom Orange, Texas to Lake Charles, Louisiana. Since the inspection, however, Equistar only\noperates the 6-inch and 4-inch sections. Therefore, Respondent stated that it would take the\ncorrective actions proposed in the Notice with respect to only the 6-inch and 4-inch sections.\nHaving reviewed the evidence in the record, I find that on February 1, 2021, Respondent\nsubmitted a National Registry Notification on Form PHMSA F 1000.2 notifying PHMSA that it\nhad ceased operatorship of the 8-inch propylene pipeline between Cameron County, Louisiana,\nand Orange, Texas, with operatorship having transferred to Enterprise Products Operating, LLC.\nEquistar noted further that it retained a 50 percent ownership of the line.\nUnder 49 U.S.C. § 60118(a), each person “owning or operating a pipeline facility” is required to\ncomply with the applicable safety standards established under chapter 601. In addition, 49\nC.F.R. § 195.2 specifies the term “operator” in the hazardous liquid pipeline safety regulations\nmeans “a person who owns or operates pipeline facilities.” Since Respondent continues to own\nthe 8-inch pipeline at issue in this matter, Respondent continues to have an obligation to ensure\ncompliance of that pipeline with the applicable safety regulations. Accordingly, Equistar must\ndemonstrate to the Director compliance of the 8-inch, 6-inch, and 4-inch sections in a manner\nthat satisfies the terms of the Compliance Order.\nPursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is\nordered to take the following actions to ensure compliance with the pipeline safety regulations:\n1. With respect to the violation of § 195.452(b)(5) (Item 1), Respondent must\nreclassify the pipeline segments on the Orange, Texas to Lake Charles, Louisiana\npipeline adhering to IMPL-003 or the current company procedure. Equistar must\nprovide documentation to the Director demonstrating completion of this\ncorrective action within 90 days of receipt of the Final Order.\n2. With respect to the violation of § 195.452(b)(5) (Item 2), Respondent must follow\nIMPL-007 or the current company procedure to determine the need for preventive\nand mitigative measures on the Orange, Texas to Lake Charles, Louisiana\npipeline. Equistar must provide documentation to the Director demonstrating\ncompletion of this corrective action within 90 days of receipt of the Final Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent demonstrating good cause for an extension.\nPHMSA requests that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n\n\n\nCPF No. 4-2021-016-NOPV\nPage 4\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (see 49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nWARNING ITEM\nWith respect to Item 3, the Notice alleged a probable violation of Part 195, but identified it as a\nwarning item pursuant to § 190.205. The warning was for:\n49 C.F.R. § 195.452(k) (Item 3) ─ Respondent’s alleged failure to measure the\neffectiveness of its IMP by conducting an evaluation of the program in 2019.\nIf OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject\nto future enforcement action.\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 this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nSeptember 3, 2021\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":13607}