# SHELL PIPELINE CO., L.P. — Warning Letter

- **operation:** document
- **citation:** CPF 42021036WL
- **title:** SHELL PIPELINE CO., L.P. — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-03-25
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.52(a)(3).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-42021036wl.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-42021036wl.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-42021036wl
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/42021036WL
**body:**

Warning Letter involving SHELL PIPELINE CO., L.P.. PHMSA's enforcement data identifies the cited regulation as 195.52(a)(3). The case was opened on 2021-03-25 and is reported as closed as of 2021-03-25. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

42021036WL_Warning Letter_03252021_(20-198422).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021036WL/42021036WL_Warning%20Letter_03252021_(20-198422).pdf

42021036WL_Warning Letter_03252021_(20-198422)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021036WL/42021036WL_Warning%20Letter_03252021_(20-198422)_text.pdf

42021036WL_Warning Letter_03252021_(20-198422)_text.pdf

WARNING LETTER
ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
March 25, 2021
Greg Smith
President
Shell Pipeline Company, L.P.
777 Walker Street, Two Shell Plaza
Houston, Texas 77002
CPF 4-2021-036-WL
Dear Mr. Smith:
Between December 23, 2020 and March 1, 2021, representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
(U.S.C.) conducted an investigation of a release on Shell Pipeline Company, L.P.’s (Shell) TLDA
Pipeline that occurred on December 21, 2020, in Calcasieu, Louisiana. Representatives reviewed
the written PHMSA F 7000.1 accident report filed by Shell and interviewed a Shell employee as
part of the investigation.
As a result of the investigation, it is alleged that Shell has committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and
the probable violation is:
1. § 195.52 Immediate notice of certain accidents.
(a) Notice requirements. At the earliest practicable moment following discovery,
of a release of the hazardous liquid or carbon dioxide transported resulting in an
event described in §195.50, but no later than one hour after confirmed discovery,
the operator of the system must give notice, in accordance with paragraph (b) of
this section of any failure that:
(3) Caused estimated property damage, including cost of cleanup and recovery,
value of lost product, and damage to the property of the operator or others, or
both, exceeding $50,000;



Shell failed to notify the National Response Center (NRC) at the earliest practicable moment
following discovery, but no later than one hour after confirmed discovery, following a release
of hazardous liquid resulting in an event described in § 195.50 that occurred on December 21,
2020, in Calcasieu, Louisiana.
During the investigation, PHMSA reviewed Form PHMSA F 7000-1 (No. 20210006-34691)
and interviewed the Shell employee that filed the report. In the report, Shell identified the
accident on TLDA Pipeline (TL-PS07 segment) at 15:22 CST on December 21, 2020, and
notified the National Response Center at 18:40 CST on December 22, 2020. The accident met
the criteria of a reportable event as defined in § 195.50(e) because estimated property damage
exceeded $50,000. The notification was made approximately 27 hours after the discovery.
During the interview, Shell personnel admitted that the miscalculation of the operator’s
property damage resulted in failure to comply with § 195.52(a)(3).
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related
series of violations. For violation occurring on or after July 31, 2019 and before January 11, 2021,
the maximum penalty may not 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 a related
series of violations. We have reviewed the circumstances and supporting documents involved in
this case, and have decided not to conduct additional enforcement action or penalty assessment
proceedings at this time. We advise you to correct the item identified in this letter. Failure to do
so will result in Shell Pipeline Company, L.P. being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2021-036-WL. Be advised that all material you submit in response to this enforcement
action is subject to being 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).
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
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