{"operation":"document","citation":"CPF 42021064NOA","title":"ENERGY TRANSFER COMPANY — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-09","effective_on":null,"summary":"CLOSED notice of amendment citing 195.401(b)(1), 195.402(a), 195.591.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021064noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021064noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021064noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021064NOA","body":"Notice of Amendment involving ENERGY TRANSFER COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.401(b)(1),  195.402(a),  195.591. The case was opened on 2021-11-09 and is reported as closed as of 2022-02-15. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021064NOA_Closure Letter_02152022_(21-207226).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021064NOA/42021064NOA_Closure%20Letter_02152022_(21-207226).pdf\n\n42021064NOA_Closure Letter_02152022_(21-207226)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021064NOA/42021064NOA_Closure%20Letter_02152022_(21-207226)_text.pdf\n\n42021064NOA_Notice of Amendment_11092021_(21-207226).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021064NOA/42021064NOA_Notice%20of%20Amendment_11092021_(21-207226).pdf\n\n42021064NOA_Notice of Amendment_11092021_(21-207226)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021064NOA/42021064NOA_Notice%20of%20Amendment_11092021_(21-207226)_text.pdf\n\n42021064NOA_Closure Letter_02152022_(21-207226)_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nFebruary 15, 2022\nGreg McIlwain\nSenior Vice President, Operations\nEnergy Transfer Company\n1300 Main Street\nHouston, Texas 77002\nCPF 4-2021-064-NOA\nDear Mr. McIlwain:\nFrom August 16, 2021 through August 20, 2021, representatives from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\nconducted an inspection of Energy Transfer Company’s (ETC) Pipeline Integrity Management\nProgram. As a result of the inspection, Energy Transfer was issued a Notice of Amendment\n(Notice) on November 9, 2021, which proposed amendments to its procedures.\nETC requested an extension to respond to the Notice on December 10, 2021. The extension request\nto December 17, 2021 ETC requested an extension to respond to Item 2 of the Notice. As\nrequested, the extension to January 31, 2022 was granted by PHMSA on December 20, 2021.\nETC submitted its amended procedures on December 17, 2021 and on January 31, 2022. PHMSA\nstaff reviewed the amended procedures, and it appears that the inadequacies outlined in this Notice\nof Amendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n42021064NOA_Notice of Amendment_11092021_(21-207226)_text.pdf\n\nNOTICE OF AMENDMENT\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nNovember 9, 2021\nGreg McIlwain\nSenior Vice President, Operations\nEnergy Transfer Company\n1300 Main Street\nHouston, Texas 77002\nCPF 4-2021-064-NOA\nDear Mr. McIlwain:\nFrom August 16, 2021 through August 20, 2021, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code,\nvirtually inspected Energy Transfer Company’s (ETC) Pipeline Integrity Management Program.\nBased on the inspection, PHMSA has identified the apparent inadequacies found within ETC’s\nplans or procedures, as described below:\n1. § 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 ensure 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§ 195.401 General requirements.\n(a)…\nrequirements:\n(b) An operator must make repairs on its pipeline system according to the following\n\n\n\n2. (1) Non-Integrity management repairs. Whenever an operator discovers any\ncondition that could adversely affect the safe operation of its pipeline system, it\nmust correct the condition within a reasonable time. However, if the condition is of\nsuch a nature that it presents an immediate hazard to persons or property, the\noperator may not operate the affected part of the system until it has corrected the\nunsafe condition.\nETC’s written procedure for non-integrity management (IM) related repairs is inadequate\nbecause it does not include classifications for anomalies to establish repair schedules.\nETC’s Energy Transfer Company and Affiliates DOT Hazardous Liquids Integrity\nManagement Program, Appendix H (Revision Date: April 15, 2020) does not include\nclassifications for the anomalies that require specific time frames for repairs to be carried\nout on the non-IM pipeline segments. The review of repair records and the Integrity\nSegment Summary (ISS) reports show that anomalies in non-HCA areas are being carried\nout and repairs are being scheduled; however, there is no written process guiding the\npractice. Part 195.401(b)(1) requires that non-IM repairs be corrected within a reasonable\ntime and if a condition presents an immediate hazard to persons or property, the affected\npart of the system may not be operated until the unsafe condition is corrected.\nETC’s Integrity Management Program procedures must be amended to provide guidance\nfor classification of anomalies and associated time frames for non-IM repairs.\n§ 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 ensure 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§ 195.591 - In-Line inspection of pipelines.\nWhen conducting in-line inspection of pipelines required by this part, each operator\nmust comply with the requirements and recommendations of API Std 1163, Inline\nInspection Systems Qualification Standard; ANSI/ASNT ILI-PQ, Inline Inspection\nPersonnel Qualification and Certification; and NACE SP0102-2010, Inline Inspection\nof Pipelines (incorporated by reference, see § 195.3). An in-line inspection may also\nbe conducted using tethered or remote control tools provided they generally comply\nwith those sections of NACE SP0102-2010 that are applicable.\n2\n\n\n\nETC’s written procedure for conducting in-line inspection of its pipelines is inadequate.\nETC’s Pipeline Integrity In Line Inspection Specification, Spec. Number: PI-1.3, 4.3\nPerformance Standards (Revision Date: March 15, 2019) fails to comply with § 195.591\nbecause it does not include the requirements regarding “Probability of Identification” as\nper section 6.2.4 of API Standard 1163 (API Standard 1163, “In-Line Inspection Systems\nQualification” Second edition, April 2013, IBR approved for §195.591).\nAdditionally, ETC’s Pipeline Integrity In Line Inspection Specification, Spec. Number: PI-\n1.3 (Revision Date: March 15, 2019) is inadequate because it does not comply with section\n10.3.3 “Calibration and Standardization” of API 1163, which requires an operator to ensure\na consistent and accurate inspection by documenting procedures for the qualification and\ncalibration of an In-Line Inspection system and analysis software. The amended procedure\nmust also comply with Annex C, C.1.7 “Prerun Function Check” of API 1163 to ensure\nthat the tool is in working condition and C.1.10 “Postrun Function Check” to verify the\nfunctional operation of the tool.\nEnergy Transfer must amend it procedures in accordance with § 195.591 and API 1163.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document, you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that Energy Transfer Company maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Mary L. McDaniel, Director, Southwest Region, Pipeline\nand Hazardous Materials Safety Administration.\n3\n\n\n\nIn correspondence concerning this matter, please refer to CPF 4-2021-064-NOA 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\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Todd Nardozzi, Director, Regulatory Compliance, Energy Transfer Company,\ntodd.nardozzi@energytransfer.com\n4","truncated":false,"body_characters":10705}