{"operation":"document","citation":"CPF 42021052WL","title":"SHELL PIPELINE CO., L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-08-12","effective_on":null,"summary":"CLOSED warning letter citing 195.452(j)(4)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021052wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021052wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021052wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021052WL","body":"Warning Letter involving SHELL PIPELINE CO., L.P.. PHMSA's enforcement data identifies the cited regulation as 195.452(j)(4)(ii). The case was opened on 2021-08-12 and is reported as closed as of 2021-08-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021052WL_WarningLetter_08122021_(20-197524).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021052WL/42021052WL_WarningLetter_08122021_(20-197524).pdf\n\n42021052WL_WarningLetter_08122021_(20-197524)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021052WL/42021052WL_WarningLetter_08122021_(20-197524)_text.pdf\n\n42021052WL_WarningLetter_08122021_(20-197524)_text.pdf\n\nWARNING LETTER\nELECTRONIC MAIL – RETURN RECEIPT REQUESTED\nAugust 12, 2021\nGreg Smith\nPresident\nShell Pipeline Company, L.P.\n777 Walker Street, Two Shell Plaza\nHouston, Texas 77002\nCPF 4-2021-052-WL\nDear Mr. Smith:\nFrom December 3, 2020 to July 2, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.),\nreviewed the Integrity Assurance notification submitted by Shell Pipeline Company, L.P.’s (Shell)\nfor its Sorrento-Convent Ethylene Pipeline on December 3, 2020.\nAs a result of the review, it is alleged that Shell has committed a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the\nprobable violation is:\n1. § 195.452 Pipeline integrity management in high consequence areas.\n(a)…\nintegrity?\n(j) What is a continual process of evaluation and assessment to maintain a pipeline’s\n(1)…\n(4) Variamce from the 5-year intervals in limited situations-\n(i)…\n(ii) Unavailable technology. An operator may require a longer assessment\nperiod for a segment of line pipe (for example, because sophisticated internal\ninspection technology is not available). An operator must justify the reasons\nwhy it cannot comply with the required assessment period and mjust also\n\n\n\ndemonstrate the actions it is taking to evaluate the integrity of the pipeline\nsegment in the interim.\nAn operator must notify OPS 180 days before the end of the five-year (or less)\ninterval that the operator may require a longer assessment interval, and\nprovide and estimate of when the assessment can be completed. An operator\nmust send notice to the address specified in paragraph (m) of this section.\nShell failed to notify OPS of its variance from the five-year inspection interval on its\nSorrento-Covent Ethylene Pipeline as required 180 days before the end of the five-year (or\nless) interval as required by § 195.452(j)(4)(ii). Shell submitted its Reassessment Delay\nnotification on December 3, 2020, which was 171 days after the end of the five-year\ninterval required for reassessment (June 16, 2015) rather than the required 180 before the\nend of the five-year assessment interval.\nShell’s notification stated, \"The purpose of this notification is to inform PHMSA of a\nreassessment that may be delayed past the 68-month mark. The assessment was delayed as\n[the] downstream plant is not receiving product\" and that \"The assessment will be done by\nthe 5-year 8-month mark depending on [the] recommencement of plant operation.\"\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, Shell Pipeline Company, L.P. is subject to a civil\npenalty not to exceed $225,134 per violation per day the violation persists, up to a maximum of\n$2,251,334 for a related series of violations. For violations occurring on or after January 11, 2021,\nand before May 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the\nviolation persists, up to a maximum of $2,225,034 for a related series of violations. For violations\noccurring on or after July 31, 2019, and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violations occurring on or after November 27, 2018, and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violations occurring on or after November 2,\n2015, and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022.\nPHMSA has reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. PHMSA advises you to review your process for IM notifications and the associated\ndeadlines. Failure to do so will result in Shell Pipeline Company, L.P. being subject to additional\nenforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply in your correspondence, please refer to\nCPF 4-2021-052-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document, you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\ncc: Sonia Islam, Pipeline Ops Support Engineer – IM & Regulatory, Shell Pipeline\nCompany, LP, Sonia.Islam@shell.com\nEric Schwartz, Pipeline Integrity Program Lead, Shell Pipeline Company, LP,\nEric.Schwartz@shell.com\n3","truncated":false,"body_characters":5772}