{"operation":"document","citation":"CPF 42021048NOPV","title":"ONEOK NGL PIPELINE, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-15","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.402(c)(11), 195.402(c)(13), 195.52(a)(2), 195.52(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021048nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021048nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021048nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021048NOPV","body":"Notice of Probable Violation involving ONEOK NGL PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(11),  195.402(c)(13),  195.52(a)(2),  195.52(b). The case was opened on 2021-11-15 and is reported as closed as of 2022-06-22. Proposed civil penalty: $131,800. Assessed civil penalty: $131,800. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021048NOPV_Closure Letter_06222022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Closure%20Letter_06222022_(20-180919).pdf\n\n42021048NOPV_Closure Letter_06222022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Closure%20Letter_06222022_(20-180919)_text.pdf\n\n42021048NOPV_Final Order_04252022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Final%20Order_04252022_(20-180919).pdf\n\n42021048NOPV_Final Order_04252022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Final%20Order_04252022_(20-180919)_text.pdf\n\n42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 1) _01142022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Statement%20of%20Issues%20(Part%201)%20_01142022_(20-180919).pdf\n\n42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 2) _01142022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing%20and%20Statement%20of%20Issues%20(Part%202)%20_01142022_(20-180919).pdf\n\n42021048NOPV_Operator Response to Notice_04062022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_Operator%20Response%20to%20Notice_04062022_(20-180919).pdf\n\n42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP%20(AMENDED)_03082022_(20-180919).pdf\n\n42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP%20(AMENDED)_03082022_(20-180919)_text.pdf\n\n42021048NOPV_PCO PCP_11152021_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP_11152021_(20-180919).pdf\n\n42021048NOPV_PCO PCP_11152021_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PCO%20PCP_11152021_(20-180919)_text.pdf\n\n42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PHC%20Hearing%20Scheduled_02022022_(20-180919).pdf\n\n42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021048NOPV/42021048NOPV_PHC%20Hearing%20Scheduled_02022022_(20-180919)_text.pdf\n\n42021048NOPV_PHC Hearing Scheduled_02022022_(20-180919)_text.pdf\n\nFebruary 2, 2022\nVIA ELECTRONIC MAIL TO: vince.murchison@pipelinelegal.com and\nmary.mcdaniel@dot.gov\nMr. Vince Murchison\nOutside Counsel for ONEOK\nMurchison Law Firm, PLLC\n325 North St. Paul Street\nSuite 7200\nDallas, Texas 75201\nMs. Mary McDaniel\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner, Suite 630\nHouston, Texas 77074\nRe: Notice of Hearing, ONEOK NGL Pipeline, LLC\nCPF No. 4-2021-048-NOPV\nDear Mr. Murchison and Ms. McDaniel:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Compliance Order, and Proposed Civil Penalty issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on March 29, 2022, beginning at 9:00 a.m. Central Time.\nThe hearing will be held via videoconference. Videoconference details will be provided prior to the\nhearing. At least 10 calendar days prior to the hearing (or by March 19, 2022), both parties must\nsubmit and exchange any additional written materials they intend to present at the hearing and the\nname and email address of each attendee. This information should be provided electronically.\nMaterials not submitted by this date may be excluded.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nKristin Baldwin\nPresiding Official\ncc: Mr. David Keglovits, Vice President and Associate General Counsel, ONEOK,\ndavid.keglovits@oneok.com\nMs. Roina Baker, Outside Counsel for ONEOK, Murchison Law Firm,\nroina.baker@pipelinelegal.com\nMs. Elizabeth Nugent, Counsel, Southwest Region, Office of Pipeline Safety, PHMSA,\n\n\n\nCPF No. 4-2021-048-NOPV\nPage 2\nelizabeth.nugent@dot.gov\nMs. Melanie Lampton, Counsel, Southwest Region, Office of Pipeline Safety, PHMSA,\nmelanie.lampton@dot.gov\n\n42021048NOPV_Final Order_04252022_(20-180919)_text.pdf\n\nApril 25, 2022\nVIA ELECTRONIC MAIL TO: scott.schingen@oneok.com\nMr. Scott Schingen\nSenior Vice President, Operations\nONEOK NGL Pipeline, LLC\n100 West Fifth Street\nTulsa, Oklahoma 74103\nRe: CPF No. 4-2021-048-NOPV\nDear Mr. Schingen:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, finds that the civil penalty amount of $131,800 has been paid in full, and specifies\nactions that need to be taken to comply with the pipeline safety regulations. When the terms of\nthe compliance order are completed, as determined by the Director, Southwest Region, this\nenforcement action will be closed. Service of the Final Order by e-mail is effective upon the\ndate of mailing and acknowledgement of receipt as provided 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. Gary Numedahl, Director, DOT Compliance, ONEOK NGL Pipeline, LLC,\ngary.numedahl@oneok.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 )\nONEOK NGL Pipeline, LLC, ) CPF No. 4-2021-048-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn March 8, 2022, pursuant to 49 C.F.R. § 190.207(c), the Director, Southwest Region, Office\nof Pipeline Safety (OPS), issued an Amended Notice of Probable Violation (Amended Notice) to\nONEOK NGL Pipeline, LLC (ONEOK) (Respondent). The Amended Notice proposed finding\nthat Respondent violated the pipeline safety regulations in 49 C.F.R. part 195 and proposed a\ncivil penalty of $131,800. The Amended Notice also proposed certain measures to correct the\nviolations. Respondent did not contest the allegations of violation or corrective measures and\npaid the proposed civil penalty on April 7, 2022. In accordance with § 190.208(a)(1), such\npayment authorizes the entry of this final order.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Amended\nNotice, which is incorporated by reference:\n49 C.F.R. § 195.52(a)(2) (Item 1) ─ Respondent failed to notify the National\nResponse Center at the earliest practicable moment following discovery of a\nrelease of hazardous liquid resulting in a fire or explosion not intentionally set by\nthe operator, but no later than one hour after confirmed discovery of a reportable\naccident.\n49 C.F.R. § 195.402(c)(11) (Item 2) ─ Respondent failed to have procedures for\nutilizing and installing mud plugs as vapor barriers to minimize the likelihood of\naccidental ignition of vapors; and failed to prepare and follow written procedures\nfor monitoring the lower explosive limit of flammable vapors to minimize the\nlikelihood of accidental ignition in areas near facilities.\n49 C.F.R. § 195.402(c)(13) (Item 3) ─ Respondent failed to periodically review\nthe work done by its personnel to determine the effectiveness of its procedures for\n\n\n\nCPF No. 4-2021-048-NOPV\nPage 2\nminimizing the potential for hazards where the potential exists for the presence of\nflammable liquids or gases.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is\nassessed the proposed civil penalty amount of $131,800, which Respondent has already paid in\nfull.\nCompliance Actions\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 violations. 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.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nApril 25, 2022\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 2) _01142022_(20-180919).pdf\n\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nWASHINGTON, DC 20590\n__________________________________________\n§\nIn the matter of: §\n§\nONEOK NGL Pipeline, L.L.C. § CPF No. 4-2021-048-NOPV\n§\nRespondent §\n§\nSTATEMENT OF ISSUES\nOF\nONEOK NGL PIPELINE, L.L.C.\nTO\nNOTICE OF PROBABLE VIOLATION,\nPROPOSED CIVIL PENALTY,\nAND\nPROPOSED COMPLIANCE ORDER\nONEOK NGL Pipeline, L.L.C. (“Respondent”) submits this Statement of Issues pursuant to 49\nC.F.R. § 190.211(b) in connection with its request for a hearing pursuant to 49 C.F.R. §\n190.208(a)(4) and (b)(4).\nBy letter dated November 15, 2021, the Pipeline and Hazardous Materials Safety Administration\n(“PHMSA”) issued to Respondent a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (collectively, the “NOPV”), CPF No. 4-2021-048-NOPV, which\nwas received by Respondent via email on the same date. By letter dated December 1, 2021, the\nDirector, PHMSA Southwest Region, granted an extension of time to respond to the NOPV for\nan additional 30 days, until January 14, 2022. By letter of even date herewith, Respondent has\nrequested a hearing in this matter, and this Statement of Issues is served therewith.\nBACKGROUND\nThe subject NOPV relates to the investigation related to an accident which occurred on April 28,\n2020, at Respondent’s Eastlake II Pump Station in Eastland County, Texas.\nIn the NOPV, PHMSA alleges three violations of the pipeline safety regulations promulgated at\n49 C.F.R. Part 195, proposes to assess civil penalties in connection with all three of the said\nalleged violations, and proposes to issue a compliance order in connection with two of the said\nalleged violations, all pursuant to the procedural and enforcement regulations promulgated at 49\nC.F.R. Part 190, Subparts A and B. As to such alleged violations, proposed civil penalties and\nproposed compliance orders, Respondent herein states its issues.\nRespondent’s Statement of Issues\nCPF 4-2021-048-NOPV\nPage 1\n\n\n\nTHE ALLEGED VIOLATIONS\nRespondent states below its factual, legal and/or regulatory issues that relate to the alleged\nviolations of the NOPV. The numbered paragraphs below correspond with the numbered Items\nof the NOPV. Each numbered paragraph begins with a citation to the subject regulation and a\nsummary of the agency’s allegations.\n1. 49 C.F.R. § 195.52 (b) – Immediate notice of certain accidents.\nPHMSA alleges that Respondent failed to notify the National Response Center (NRC) at the\nearliest practicable moment, following discovery of a release of hazardous liquid resulting in a\nfire or explosion not intentionally set by the operator, but no later than one hour of “a reportable\naccidence as defined in § 195.50.” PHMSA further alleges that Response experienced an\nunintentional release of hazardous liquid which resulted in a flash fire as its Eastland II Pump\nStation in Eastland County, Texas, on April 28, 2020 at 5:00 p.m. CST. PHMSA finally alleges\nthat Respondent did not report the accident to the NRC until May 1, 2020, at 11:22 p.m. CDT.\nRespondent does not dispute the allegations stated in the NOPV.\n2. 49 C.F.R. § 195.402(c)(11) – Procedural manual for operations, maintenance, and\nemergencies.\nPHMSA alleges that Respondent “failed to develop and follow written procedures for tie-in work\non its pipeline facilities to include the use of mud plugs and monitoring for the lower explosive\nlimit (LEL),\n” which PHMSA claims “are both necessary to maintain safety during normal\noperation and maintenance activities.” PHMSA specifically alleges that Respondent failed to\nhave procedures “for utilizing and installing mud plugs as vapor barriers to minimize the\nlikelihood of accidental ignition of vapors as required by § 195.402(c)(11).” PHMSA further\nalleges that, on April 28, 2020, Respondent’s contractor personnel performed tie-in work using a\nmud plug as a vapor barrier and further alleges that Respondent has no written procedures in its\noperations and maintenance manual “reflecting the use of mud plugs as a vapor barrier during\ntie-in work.”\nPHMSA further alleges that Respondent “failed to prepare and follow written procedures for\nmonitoring LEL of flammable vapors to minimize the likelihood of accidental ignition in areas\nnear facilities identified under paragraph § 195.402(c)(11).” PHMSA specifically alleges that\nRespondent did not establish procedures for monitoring LEL which PHMSA alleges is an action\nnecessary to minimize the likelihood of accidental ignition of vapors.\nPHMSA finally alleges that the lack of written procedures, regarding the use of mud plugs and\nthe monitoring of the LEL for operator personnel to follow during tie-in work, resulted in the\naccident.\nRespondent disputes and objects to the allegations stated in the NOPV, on the following\ngrounds:\nRespondent’s Statement of Issues\nCPF 4-2021-048-NOPV\nPage 2\n\n\n\na. PHMSA has failed to meet its burden of proof that a violation occurred.\nb. The alleged violation is not supported by the evidence in the case file.\nc. The alleged violation is not supported by the relevant facts.\nd. The NOPV fails to adequately make factual findings or to explain, discuss, or\nanalyze the conclusion that Respondent is in violation of the subject regulation in\nthe manner alleged.\ne. The NOPV fails to explain its conclusions in a manner that is sufficient to allow\nRespondent a reasonable opportunity to prepare an adequate defense.\nf. Given the manner in which the cited regulation is being applied in this alleged\nviolation, PHMSA has failed to provide Respondent, or the regulated community\nas a whole, fair notice of the agency’s interpretation of the subject regulation.\ng. PHMSA has failed to provide a rational connection between the facts alleged and\nthe conclusions reached, and, as such, the agency is acting in an arbitrary and\ncapricious manner.\nh. The content of the PHMSA case file provided to Respondent fails to fulfill the\nrequirements of Section 108 of the Protecting Our Infrastructure of Pipelines and\nEnhancing Safety Act of 2020; as a result, Respondent is precluded from access to\nall relevant facts in the agency’s possession and thus is denied a full and fair\nopportunity to respond to the agency’s allegations.\n3. 49 C.F.R. § 195.402(c)(13) – Procedural manual for operations, maintenance, and\nemergencies.\nPHMSA alleges that Respondent failed to periodically review the work of operator personnel to\ndetermine the effectiveness of its procedures and alleges that Respondent did not take\nappropriate corrective actions for found deficiencies. Specifically, PHMSA alleges that\nRespondent failed to periodically review the work of its personnel “to determine the\neffectiveness of its procedures for minimizing the potential for hazards where the potential exists\nfor the presence of flammable liquids or gases.”\nPHMSA alleges that Respondent stated, during the investigation, that it had performed the\nperiodic review of its procedures to determine their effectiveness and no deficiencies were\nidentified. PHMSA further alleges that it identified a history of reportable accidents prior to the\nApril 28, 2020 accident which involved accidental ignition of vapors, and, thus, that\nRespondent’s procedure was deficient.\nPHMSA finally alleges that, following PHMSA’s investigation, Respondent revised its\nprocedure to address certain deficiencies.\nRespondent disputes and objects to the allegations stated in the NOPV, on the following\ngrounds:\na. PHMSA has failed to meet its burden of proof that a violation occurred.\nb. The alleged violation is not supported by the evidence in the case file.\nRespondent’s Statement of Issues\nCPF 4-2021-048-NOPV\nPage 3\n\n\n\nc. The alleged violation is not supported by the relevant facts.\nd. The NOPV fails to adequately make factual findings or to explain, discuss, or\nanalyze the conclusion that Respondent is in violation of the subject regulation in\nthe manner alleged.\ne. The NOPV fails to explain its conclusions in a manner that is sufficient to allow\nRespondent a reasonable opportunity to prepare an adequate defense.\nf. Given the manner in which the cited regulation is being applied in this alleged\nviolation, PHMSA has failed to provide Respondent, or the regulated community\nas a whole, fair notice of the agency’s interpretation of the subject regulation.\ng. PHMSA has failed to provide a rational connection between the facts alleged and\nthe conclusions reached, and, as such, the agency is acting in an arbitrary and\ncapricious manner.\nh. PHMSA erroneously supports its allegations with evidence of subsequent\nremedial measures taken by Respondent.\ni. The content of the PHMSA case file provided to Respondent fails to fulfill the\nrequirements of Section 108 of the Protecting Our Infrastructure of Pipelines and\nEnhancing Safety Act of 2020; as a result, Respondent is precluded from access to\nall relevant facts in the agency’s possession and thus is denied a full and fair\nopportunity to respond to the agency’s allegations.\nTHE PROPOSED CIVIL PENALTIES\nPHMSA proposes a total of $495,047 in civil penalties in connection with alleged violations\nItem 2 and Item 3, as to each of which Respondent states the following issues:\n1. PHMSA has failed to make available to Respondent or to the public, as required by the\nAdministrative Procedure Act, fair notice of the methods and procedures by which PHMSA\ndetermines the amount of proposed civil penalties and the amounts eventually assessed.\n2. The NOPV and the underlying Pipeline Safety Violation Report fail to establish a sufficient\nevidentiary basis for, or adequate discussion, explanation, or analysis of, the penalty\nassessment considerations of 49 C.F.R. § 190.225 in support of the proposed civil penalties,\nand thus Respondent has no reasonable opportunity to prepare an adequate defense to contest\nthe proposed civil penalties.\n3. Respondent objects to the magnitude of the proposed penalties as: unreasonable;\ndisproportional to any of the penalty assessment considerations of 49 C.F.R. § 190.225;\nunsupported by sufficient evidence or any analysis that applies the penalty assessment\nconsiderations; arbitrary, capricious, or otherwise not in accordance with law; and an abuse\nof discretion.\n4. To the extent that the related alleged violation is not supported by substantial evidence, a\nrational connection between facts found and conclusions drawn, regulation, or law, such\nproposed civil penalty may not be imposed.\nRespondent’s Statement of Issues\nCPF 4-2021-048-NOPV\nPage 4\n\n\n\nTHE PROPOSED COMPLIANCE ORDER\nPHMSA proposes to order Respondent to perform the following actions, as to which Respondent\nstates the following issues:\n1. Regarding the alleged violation in Item 2 of the NOPV, develop detailed procedures for (1)\nthe use of mud plugs “for the prevention and mitigation of vapors igniting while performing\nhot work/tie-ins on its pipeline facilities,\n” and (2) “LEL monitoring while performing normal\noperation and maintenance for the prevention of accident vapor ignition.\n”\na. The record reflects that Respondent had procedures addressing LEL monitoring\non the date of the accident, April 28, 2020.\nb. To the extent PHMSA is unable ultimately to prove a violation, or any instance of\nalleged violation, this proposed compliance order cannot be imposed and,\ntherefore, must be withdrawn.\nc. PHMSA has neither proffered any evidence, made any factual finding, nor\nprovided any explanation, discussion or analysis of the manner in which either the\nnature of the alleged violations or the public interest warrant issuance of the\nproposed compliance order; see 49 C.F.R. § 190.217. On those grounds, the\nproposed compliance order must be withdrawn in its entirety for failure to fulfill a\nregulatory requirement.\n2. Regarding the alleged violation in Item 3 of the NOPV, PHMSA proposes that Respondent\nconduct a review of certain portions of its Natural Gas Liquids Operations and Maintenance\nManual to determine whether “further revisions” are required.\na. The proposed compliance order is vague and ambiguous, in that the scope and\nextent of directed actions are not discernable. As such, PHMSA is acting in an\narbitrary and capricious manner, and thus the proposed compliance order cannot\nbe imposed and, therefore, must be withdrawn.\nb. To the extent PHMSA is unable ultimately to prove a violation, the proposed\ncompliance order cannot be imposed and, therefore, must be withdrawn.\nc. PHMSA has neither proffered any evidence, made any factual finding, nor\nprovided any explanation, discussion or analysis of the manner in which the\nalleged violations or the public interest warrant issuance of the proposed\ncompliance order; see 49 C.F.R. § 190.217. On those grounds, this proposed\ncompliance order must be withdrawn in its entirety for failure to fulfill a\nregulatory requirement.\nCONCLUSION\nAt the hearing in this matter, Respondent intends to bring forth evidence in the form of\ndocuments and/or testimony, as well as to examine the evidence, documents and any testimony\nRespondent’s Statement of Issues\nCPF 4-2021-048-NOPV\nPage 5\n\n\n\npresented or introduced by PHMSA. Respondent also will present its arguments in support of\nthe issues stated heretofore. Respondent reserves the right to amend and\nsupplement this Statement of Issues at or before the hearing.\nCOUNSEL FOR RESPONDENT ONEOK NGL PIPELINE, L.L.C.\nJanuary 14, 2022\nWilliam V. Murchison\nRoina Rivera Baker\nTexas Bar No. 14682500\nTexas Bar No. 24108006\nMurchison Law Firm, PLLC\nMurchison Law Firm, PLLC\n325 N. St. Paul Street, Suite 2700\n325 N. St. Paul Street, Suite 2700\nDallas, Texas 75201\nDallas, Texas 75201\n(214) 716-1923 - Telephone\n(214) 716-1923 - Telephone\n(844) 930-0089 - Facsimile\n(844) 930-0089 - Facsimile\nVince.Murchison@PipelineLegal.com\nRoina.Baker@PipelineLegal.com\nCPF 4-2021-048-NOPV\nRespondent's Statement of Issues\nPage 6\n\n42021048NOPV_Op Resp to Notice and Req for Hearing and Statement of Issues (Part 1) _01142022_(20-180919).pdf\n\nMURCHISON\n325 North St. Paul Street\nLAW FIRM, PLLC\nDallas, Texas 75201\nSulte 2700\nPH: 214-716-1923\nPIPELINELEGAL.COM\nJanuary 14, 2022\nMs. Mary L. McDaniel\nVia Email: Mary. McDaniel@ DOT.gov\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety\nAdministration\nOffice of Pipeline Safety\n8701 S. Gessner Road, Suite 630\nHouston, Texas 77074\nRe:\nONEOK NGL Pipeline, LLC (\"Respondent\")\nRequest for Hearing\nStatement of Issues\nCPF No. 4-2021-048-NOPV\nDear Ms. McDaniel:\nThis letter serves as a request by Respondent for a hearing in response to the referenced Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order dated November 15,\n2021 (\"NOPV\"), which was received by Respondent via email on the same date. Respondent\nrequested an extension of time to respond to the NOPV via email dated November 30, 2021. By\nletter dated December 1, 2021, the Director, PHMSA Southwest Region (\"Director\") granted an\nextension of time to respond to the NOPV until January 14, 2022. As such, this response is timely.\nAs an initial matter, Respondent does not contest Item 1. Pursuant to 49 C.F.R. §§ 190.208(a)(4)\nand 190.211, Respondent hereby requests a hearing on Item 2 and Item 3 of the NOPV.\nRespondent has great respect for the work done by the Southwest Region and has worked\ncollaboratively with your office in particular. However, Respondent believes requesting a hearing\nis necessary at this time.\nEnclosed herewith please find Respondent's Statement of Issues which it submits pursuant to 49\nC.F.R. § 190.211(b). Respondent reserves the right to supplement and/or amend its Statement of\nIssues at or before the hearing.\nRespondent requests that the requested hearing be held in-person at the Southwest Region office\nHouston, Texas.\n811\nKnow what's below.\nCall before you dig.\nThe Pipeline & Energy Authority\n\n\n\nMURCHISON\nMs. Mary L. McDaniel\nLAW FIRM, PLLC\nJanuary 14, 2022\nPage 2\nPlease be advised that Respondent intends to be represented by in-house counsel and outside\ncounsel in connection with the requested hearing. Respondent intends, pursuant to 49 C.F.R. §\n190.211(t), to have a court reporter prepare a transcript of the hearing. Respondent will bear all\ncosts of same and will submit a copy of the transcript of same to the case file.\nRespondent respectfully requests that the Presiding Official assigned to this case forbear the setting\nof the hearing, for at least 90 days, to allow the parties a reasonable opportunity to commence\ndiscussions toward settlement and/or narrowing the issues. Respondent intends to contact your\noffice promptly, and Respondent will work with PHMSA Region counsel to apprise the Presiding\nOfficial of progress in said discussions.\nThank you for your attention to this matter.\nSincerely,\nVince Murchison\nCounsel for Respondent\nCC:\nElizabeth Nugent (Via Email: Elizabeth.Nugent@dot.gov)\nDavid E. Keglovits (Via Email: David.Keglovits@oneok.com)\nRoina Baker (Via Email: Roina. Baker@ Pipelinelegal.com)\n811.\nKnow what's below.\nCall before you dig.\nThe Pipeline & Energy Authority\n\n42021048NOPV_PCO PCP (AMENDED)_03082022_(20-180919)_text.pdf\n\nAMENDED NOTICE OF PROBABLE VIOLATION,\nPROPOSED CIVIL PENALTY,\nand\nPROPOSED COMPLIANCE ORDER\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nMarch 8, 2022\nScott Schingen\nSenior Vice President, Operations\nONEOK NGL Pipeline, LLC\n100 West Fifth Street\nTulsa, Oklahoma 74103\nCPF 4-2021-048-NOPV\nDear Mr. Schingen:\nFrom May 1, 2020 through December 2, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety, pursuant to Chapter 601 of\n49 United States Code (U.S.C.), investigated a reportable accident that occurred on April 28, 2020,\nat ONEOK NGL Pipeline, LLC’s (ONEOK) Eastland II Pump Station in Eastland County, Texas.\nAt approximately 5:00 pm Central Standard Time (CST), an incipient fire occurred while\ncontractor personnel for ONEOK was performing and completing a tie-in weld at the Eastland II\nPump Station. The fire self-extinguished with no reported injuries or hospitalizations. An\nestimated .10 barrels of natural gas liquid was unintentionally released. ONEOK submitted\nNational Response Center (NRC) Report #1276472 on May 1, 2020, as the initial notification of\nthe accident.\nAs a result of the investigation, it is alleged that ONEOK has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items investigated\nand the probable violations are:\n\n\n\n2\n1. § 195.52 Immediate notice of certain accidents.\n(a) Notice requirements. At the earliest practicable moment following discovery, of a\nrelease of the hazardous liquid or carbon dioxide transported resulting in an event\ndescribed in § 195.50, but no later than one hour after confirmed discovery, the\noperator of the system must give notice, in accordance with paragraph (b) of this\nsection of any failure that:\n(1)…\n(2) Resulted in either a fire or explosion not intentionally set by the operator;...\n(b) Information required. Each notice required by paragraph (a) of this section must\nbe made to the National Response Center either by telephone to 800-424-8802 (in\nWashington, DC, 202-267-2675) or electronically at http://www.nrc.uscg.mil and must\ninclude the following information: …\nONEOK failed to notify the NRC at the earliest practicable moment following discovery of a\nrelease of hazardous liquid resulting a fire or explosion not intentionally set by the operator,\nbut no later than one hour of a reportable accident as defined in § 195.50. On April 28, 2020,\nat approximately 5:00 pm CST, ONEOK experienced an unintentional release of hazardous\nliquid which resulted in a flash fire at its Eastland II Pump Station in Eastland County, Texas.\nHowever, ONEOK did not report the accident to the NRC (#1276472) until May 1, 2020, at\n11:22 pm CST, over 67 hours after the accident occurred.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be reviewed\nat intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence,\nand appropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n(b) …\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1)…\n(11) Minimizing the likelihood of accidental ignition of vapors in areas near facilities\nidentified under paragraph (c)(4) of this section where the potential exists for the\npresence of flammable liquids or gases.\n\n\n\n3\nONEOK failed to develop and follow written procedures for tie-in work on its pipeline\nfacilities to include the use of mud plugs and monitoring for the lower explosive limit (LEL),\nwhich are both necessary to maintain safety during normal operation and maintenance\nactivities. Specifically, ONEOK failed to have procedures for utilizing and installing mud\nplugs as vapor barriers to minimize the likelihood of accidental ignition of vapors as required\nby § 195.402(c)(11). On April 28, 2020, ONEOK’s contractor personnel performed tie-in\nwork utilizing a mud plug as a vapor barrier; however, there were no written procedures in\nONEOK’s operations and maintenance manual reflecting the use of mud plugs as a vapor\nbarrier during tie-in work.\nAdditionally, ONEOK failed to prepare and follow written procedures for monitoring LEL of\nflammable vapors to minimize the likelihood of accidental ignition in areas near facilities\nidentified under paragraph § 195.402(c)(11). ONEOK did not establish monitoring procedures\nof the LEL as a necessary action to minimize the likelihood of accidental ignition of vapors.\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\n(b)…\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1)…\n(13) Periodically reviewing the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance and taking\ncorrective action where deficiencies are found.\nONEOK failed to periodically review the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance, and to take\nappropriate corrective actions for found deficiencies. Specifically, ONEOK failed to\nperiodically review the work done by its personnel to determine the effectiveness of its\nprocedures for minimizing the potential for hazards where the potential exists for the presence\nof flammable liquids or gases.\n\n\n\n4\nONEOK's Natural Gas Liquids Operations and Maintenance Manual, PRC1400.000, Section\n3, REV 17, Accidental Ignition, 195.402(c)(11) page 35 states,\n\"In areas near pipeline facilities\nwhere the potential exists for the presence of flammable liquids or gases, ONEOK will take\nsteps to minimize the likelihood of accidental ignition of vapors.\" Although ONEOK stated\nduring the investigation that it had performed the periodic review of its procedure to determine\nits effectiveness and did not identify any deficiencies, PHMSA identified a history of\nreportable accidents prior to the April 28, 2020 accident that involved accidental ignition of\nvapors prior, which indicated that the procedure was deficient. A review of ONEOK's\npreviously submitted Form PHMSA F7000.1 Accident Reports identified four previous\naccidents that involved an accidental ignition of vapors. These include No. 20150445 at Mt.\nBelvieu, Texas on November 5, 2015; No. 20170376 at Chapman Trap Station, Kansas on\nOctober 20, 2017; No. 20180207 at ONEOK Groveton Pump Station, Texas on June 22, 2018;\nand No. 20180256 at ONEOK Fairfield Pump Station (Site 541), Texas on June 25, 2018.\nFollowing PHMSA's investigation, ONEOK made revisions to this procedure to address\ndeficiencies.\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$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related\nseries of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,\nthe maximum penalty may not exceed $222,504 per violation per day the violation persists, up to\na maximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. 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.\nWe have reviewed the circumstances and supporting documentation involved for the above\nprobable violations and recommend that you be preliminarily assessed a civil penalty $131,800 as\nItem number\nPENALTY\n1\n$ 36,200\n2\n$ 49,000\n3\n$ 46,600\n\n\n\n5\nProposed Compliance Order\nWith respect to Items 2 and 3, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to ONEOK NGL Pipeline, LLC.\nPlease refer to the 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 submitted 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 4-2021-048-NOPV and, for each\ndocument you 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\n\n\n\n6\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to ONEOK NGL Pipeline, LLC (ONEOK) a\nCompliance Order incorporating the following remedial requirements to ensure compliance with\nthe pipeline safety regulations:\nA. In regards to Item 2 of the Notice pertaining to ONEOK’s failure to develop\nprocedures for (1) the use of mud plugs as an approved company method for the\nprevention and mitigation of vapors igniting while performing hot work/tie-ins on\nits pipeline facilities and (2) LEL monitoring while performing normal operation\nand maintenance for the prevention of accidental vapor ignition, ONEOK must\ndevelop detailed procedures for these two areas and submit to the Director,\nSouthwest Region, PHMSA for review within 30 days of receipt of the Final Order.\nIt is requested (not mandated) that ONEOK maintain documentation of the safety improvement\ncosts associated with fulfilling this Compliance Order and submit the total to Mary L. McDaniel\nP.E., Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration. 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\n42021048NOPV_Closure Letter_06222022_(20-180919)_text.pdf\n\nELECTRONIC MAIL\nJune 22, 2022\nScott Schingen\nSenior Vice President, Operations\nONEOK NGL Pipeline, LLC\n100 West Fifth Street\nTulsa, Oklahoma 74103\nCPF 4-2021-048-NOPV\nDear Mr. Schingen:\nOn April 25, 022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a\nFinal Order to ONEOK NGL Pipeline, L.L.C (ONEOK) in the above-referenced case. This Final\nOrder included a Compliance Order and a Civil Penalty assessment. Based on our review of t","truncated":true,"body_characters":40450}