{"operation":"document","citation":"CPF 42021067WL","title":"DENBURY GREEN PIPELINE-NORTH DAKOTA, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-12-16","effective_on":null,"summary":"CLOSED warning letter citing 195.202.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021067wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021067wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021067wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021067WL","body":"Warning Letter involving DENBURY GREEN PIPELINE-NORTH DAKOTA, LLC. PHMSA's enforcement data identifies the cited regulation as 195.202. The case was opened on 2021-12-16 and is reported as closed as of 2021-12-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021067WL_Operator Response to Notice_01252022_(21-214479).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021067WL/42021067WL_Operator%20Response%20to%20Notice_01252022_(21-214479).pdf\n\n42021067WL_Warning Letter_12162021_(21-214479).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021067WL/42021067WL_Warning%20Letter_12162021_(21-214479).pdf\n\n42021067WL_Warning Letter_12162021_(21-214479)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021067WL/42021067WL_Warning%20Letter_12162021_(21-214479)_text.pdf\n\n42021067WL_Warning Letter_12162021_(21-214479)_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 16, 2021\nDavid Sheppard\nSenior Vice President - Operations\nDenbury Green Pipeline-North Dakota LLC\n5851 Legacy Circle, Suite 1200\nPlano, Texas 75024\nCPF # 4-2021-067-WL\nDear Mr. Sheppard:\nOn July 6 and 7, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nthe Denbury Green Pipeline-North Dakota LLC’s (Denbury) pipe storage facilities for its Cedar\nCreek Anticline (CCA) CO2 pipeline construction project in Alzada and Baker, Montana.\nAs a result of the inspection, it is alleged that Denbury has committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. §195.202 Compliance with specifications or standards\nEach pipeline system must be constructed in accordance with comprehensive\nwritten specifications or standards that are consistent with the requirements of this\npart.\nDenbury failed to construct its pipeline system in accordance with written comprehensive\nspecifications or standards consistent with Part 195. Specifically, Denbury failed to follow\nits Construction Standards, Below Grade Pipe Coatings, C1080 (Revised 2013-08-01),\nduring the construction of its CCA Project.\nThe procedures contain requirements to protect pipeline coating material during\ntransportation, handling, and storage of pipe. Specifically, Section 2.4 states, “To prevent\ndamage and loss of product, coating materials shall be transported, handled, and stored per\nManufacturer’s recommendations. All coating material shall be stored in a clean, dry\nlocation and in a manner to protect them from contact with the ground and moisture. All\ncoating material will be shielded from direct sunlight when not in use.”\n\n\n\n2\nDuring PHMSA’s inspection, pipes stored at the Alzada and Baker storage yards were\nheavily oxidized due to ultraviolet exposure. PHMSA’s review of the Material Test reports\nand Logistics Inspection reports indicated that the pipes were manufactured in 2019 and\ntransported to the pipe storage yards by April 2020. The pipes at the storage yards were\nexposed to direct sunlight and moisture from April 2020 until the start of the project in July\n2021.\nAs a result of the inspection, PHMSA’s representative requested Denbury perform tests to\nensure that the performance of the coating due to the failure to protect the pipe from\nexposure to direct sunlight as required by their specifications.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, Denbury Green Pipeline-Montana, LLC is\nsubject to a civil penalty not to exceed $225,134 per violation per day the violation persists, up to\na maximum of $2,251,334 for a related series of violations. For violations occurring on or after\nJanuary 11, 2021, and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violations occurring on or after July 31, 2019, and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violations occurring on or after\nNovember 27, 2018, and before July 31, 2019, the maximum penalty may not exceed $213,268\nper violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring\non or after November 2, 2015, and before November 27, 2018, the maximum penalty may not\nexceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022.\nWe have 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. We advise you to correct the item identified in this letter. Failure to do so will result in\nDenbury Green Pipeline-Montana LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF # 4-2021-056-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, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":5781}