{"operation":"document","citation":"CPF 42022001NOPV","title":"ENTERPRISE CRUDE PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-08-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.579(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022001nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022001nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022001nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022001NOPV","body":"Notice of Probable Violation involving ENTERPRISE CRUDE PIPELINE LLC. PHMSA's enforcement data identifies the cited regulation as 195.579(b). The case was opened on 2022-08-04 and is reported as closed as of 2023-07-28. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022001NOPV_Closure Letter_07282023_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_Closure%20Letter_07282023_(21-210603).pdf\n\n42022001NOPV_Closure Letter_07282023_(21-210603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_Closure%20Letter_07282023_(21-210603)_text.pdf\n\n42022001NOPV_Consent Agreement and Order_04032023_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_Consent%20Agreement%20and%20Order_04032023_(21-210603).pdf\n\n42022001NOPV_Consent Agreement and Order_04032023_(21-210603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_Consent%20Agreement%20and%20Order_04032023_(21-210603)_text.pdf\n\n42022001NOPV_Operator RtN and RfH and Request Case File_10172022_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_Operator%20RtN%20and%20RfH%20and%20Request%20Case%20File_10172022_(21-210603).pdf\n\n42022001NOPV_Operator Withdrawal of Request for Hearing_04032023_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_Operator%20Withdrawal%20of%20Request%20for%20Hearing_04032023_(21-210603).pdf\n\n42022001NOPV_PCO_08042022_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_PCO_08042022_(21-210603).pdf\n\n42022001NOPV_PCO_08042022_(21-210603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_PCO_08042022_(21-210603)_text.pdf\n\n42022001NOPV_PHC Hearing Rescheduled_02162023_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_PHC%20Hearing%20Rescheduled_02162023_(21-210603).pdf\n\n42022001NOPV_PHC Hearing Rescheduled_02162023_(21-210603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_PHC%20Hearing%20Rescheduled_02162023_(21-210603)_text.pdf\n\n42022001NOPV_PHC Hearing Scheduled_11092022_(21-210603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_PHC%20Hearing%20Scheduled_11092022_(21-210603).pdf\n\n42022001NOPV_PHC Hearing Scheduled_11092022_(21-210603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022001NOPV/42022001NOPV_PHC%20Hearing%20Scheduled_11092022_(21-210603)_text.pdf\n\n42022001NOPV_PHC Hearing Scheduled_11092022_(21-210603)_text.pdf\n\nNovember 9, 2022\nVIA ELECTRONIC MAIL TO: zlcraft@eprod.com and bryan.lethcoe@dot.gov\nMr. Zachary L. Craft, Esq.\nCounsel\nEnterprise Crude Pipeline, LLC\n1100 Louisiana Street, Suite 1000\nHouston, TX 77002\nMr. Bryan Lethcoe\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner Road, Suite 630\nHouston, Texas 77074\nRe: Notice of Hearing, Enterprise Crude Pipeline, LLC\nCPF No. 4-2022-001-NOPV\nDear Mr. Craft and Mr. Lethcoe:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation and Proposed Compliance Order issued by the Pipeline and Hazardous Materials\nSafety Administration in the above-referenced case. The hearing will take place on March 1, 2023,\nbeginning at 8:30 a.m. Central Time.\nThe hearing will take place at the PHMSA Southwest Region office, 8701 South Gessner Road,\nSuite 630, Houston, TX 77074. Upon arrival at the building, attendees will be required to present\nphoto identification to security personnel. A contact phone number for the day of the hearing is\n(713) 272-2859.\nAt least 10 calendar days prior to the hearing (or by February 21, 2023), both parties must submit\nand exchange any additional written materials they intend to present at the hearing and the name\nand email address of each attendee. This information should be provided electronically. Materials\nnot submitted by this date may be excluded.\n\n\n\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\ncc: Mr. Graham W. Bacon, Group SVP, Operations & EHS&T, Enterprise Crude Pipeline,\nLLC, gbacon@eprod.com\nMr. Jeff Morton, Senior Director, Transportation Compliance, Enterprise Products\nOperating, LLC, jmorton@eprod.com\nMr. Ian Curry, Esq., Counsel, Southwest Region, Office of Pipeline Safety,\nian.curry@dot.gov\n\n42022001NOPV_PHC Hearing Rescheduled_02162023_(21-210603)_text.pdf\n\nDate: February 16, 2023\nFrom: Larry White\nTo: File\nRe: Continuance of Hearing, Enterprise Crude Pipeline, LLC\nCPF No. 4-2022-001-NOPV\nBy electronic mail dated February 15, 2023, Ian Curry, Counsel for OPS Southwest Region, and\nZachary Craft, Counsel for Enterprise Crude Pipeline, LLC submitted a joint request for a\ncontinuance of the hearing previously scheduled for March 1, 2023. The request explained that the\nparties were moving forward with negotiation of a consent agreement to resolve the case which\nwould make a hearing unnecessary and the additional time was needed to conclude the negotiations.\nI granted the request for a continuance until April 5, 2023 which will be the new hearing date if\nresolution by consent agreement is not completed by that time.\n\n42022001NOPV_Consent Agreement and Order_04032023_(21-210603)_text.pdf\n\nApril 3, 2023\nVIA ELECTRONIC MAIL TO: gbacon@eprod.com; compliance regulatory@eprod.com\nGraham Bacon\nExecutive Vice President and Chief Operating Officer\nEnterprise Crude Pipeline, LLC\n1100 Louisiana Street, Suite 1000\nHouston, Texas 77002\nRe: CPF No. 4-2022-001-NOPV\nDear Mr. Bacon:\nEnclosed please find the Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Enterprise Crude\nPipeline, LLC, which was executed on March 30, 2023. Service of the Consent Order and Consent\nAgreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgment of receipt, or as otherwise 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: Consent Order and Consent Agreement\ncc: Mr. Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Jeff Morton, Senior Director, Transportation Compliance, Enterprise Crude Pipeline,\nLLC, jmorton@eprod.com\nMr. Zachary L. Craft, Counsel for Enterprise Crude Pipeline, LLC, zlcraft@eprod.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 )\n)\nEnterprise Crude Pipeline, LLC, ) CPF No. 4-2022-001-NOPV\n)\nRespondent. )\n)\nCONSENT ORDER\nBy letter dated August 4, 2022, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation and Proposed\nCompliance Order (Notice) to Enterprise Crude Pipeline, LLC (Enterprise or Respondent).\nIn response to the Notice, Respondent requested a hearing on Item 1, contesting the underlying\nviolation and the proposed compliance order. Enterprise also asked for the opportunity to meet\ninformally with PHMSA to discuss Item 1 in the Notice. Respondent and PHMSA (the Parties)\nsubsequently met to discuss the issues raised in the Response. As a result of those discussions, as\nexplained in more detail below, the Parties have agreed to a Consent Agreement by which Item 1\nis reduced to a warning item, and the associated compliance order is amended.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Enterprise is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49\nC.F.R. § 190.223.\nThe terms and conditions of this Order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nApril 3, 2023\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\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 )\n)\nEnterprise Crude Pipeline, LLC, ) CPF No. 4-2022-001-NOPV\n)\nRespondent. )\n)\nCONSENT AGREEMENT\nOn August 4, 2022, pursuant to 49 C.F.R. § 190.207, the Pipeline and Hazardous Materials Safety\nAdministration (“PHMSA”), Office of Pipeline Safety (“OPS” or “Agency”), issued a Notice of\nProbable Violation and Proposed Compliance Order (“Notice”) to Enterprise Crude Pipeline, LLC\n(“Enterprise” or “Respondent”) to initiate this proceeding. The claims in the Notice relate to a\nrelease of crude oil from a 24-inch pipeline at Enterprise’s Texas City Pump Station in Galveston\nCounty, Texas on April 20, 2021.\nOn October 17, 2022, after receiving a time extension, Enterprise responded to the Notice by\ntimely submitting a Request for Settlement Conference and Hearing pursuant to 49 C.F.R.\n§ 190.208(a)(4). PHMSA and Enterprise (collectively, the “Parties”) conducted settlement\ndiscussions on November 28, 2022, and virtually on January 17, 2023.\nAs a result of the settlement discussions, the Parties agreed that settlement of this Proceeding will\navoid further administrative proceedings or litigation and will serve the public interest by\npromoting safety and protection of the environment. Pursuant to 49 C.F.R. Part 190, and upon\nconsent and agreement of Enterprise and PHMSA, the Parties hereby agree as follows:\nI. General Provisions\n1. Respondent acknowledges that it is the operator of the Texas City Pump Station\nin Galveston County, Texas that is subject to the jurisdiction of the federal pipeline safety laws,\n49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For\npurposes of this Consent Agreement (“Agreement”), Respondent acknowledges that it received\nproper notice of PHMSA’s action in this proceeding and that the Notice states claims upon which\nrelief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued\nthereunder.\n2. After Enterprise returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\n\n\n\norder (“Consent Order” or “Order”) incorporating the terms of this Agreement. The terms of this\nAgreement constitute an offer of settlement until a Consent Order is issued by the Associate\nAdministrator.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except as set forth herein. Respondent\nagrees to withdraw its request for an administrative hearing regarding the Notice.\n4. This Agreement shall apply to and be binding upon PHMSA and Enterprise, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated compliance orders and schedules to all of Enterprise’s officers, employees, and\nagents whose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement. The\nParties acknowledge that there are no representations, agreements, or understandings relating to\nsettlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the federal pipeline safety laws, 49 U.S.C. § 60101, et\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA’s\nright of access, entry, inspection, and information gathering or PHMSA’s authority to bring\nenforcement actions against Enterprise pursuant to the federal pipeline safety laws, the regulations\nand orders issued thereunder, or any other provision of federal or state law except as otherwise\nresolved through this Consent Order.\n7. For all transfers of ownership or operating responsibility of Enterprise’s Texas City\nPump Station in Galveston County, Texas which occur while this Agreement is in effect,\nEnterprise will provide a copy of this Agreement to the prospective transferee at least 30 days prior\nto such transfer. Enterprise will provide written notice of the transfer to the Director, Southwest\nRegion (“Director”) no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any federal, state, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,\nor a modification of any permit, under any federal, state, or local laws or regulations. Enterprise\nremains responsible for achieving and maintaining compliance with all applicable federal, state,\nand local laws, regulations, and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty that is not a party to this Agreement. The U.S. Department of Transportation is not liable for\nany injuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Enterprise agrees\nto hold harmless the U.S. Department of Transportation, its officers, employees, agents, and\n\n\n\nrepresentatives from any and all causes of action arising from any acts or omissions of Respondent\nor its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of violation\nof any federal law or regulation and may not be used in any civil proceeding of any kind as\nevidence or proof of any fact, fault or liability, or as evidence of a violation of any law, rule,\nregulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or\nin future PHMSA enforcement actions. Respondent agrees, for purposes of this Agreement and\nOrder, to address the alleged risk conditions by completing the terms of this Agreement.\n11. Upon issuance of the Consent Order, the Parties agree to the terms in Sections II &\nIII.\nII. Warning Item\n12. Item 1 of the Notice: With respect to Item 1, the Notice alleged a violation of 49\nC.F.R. § 195.579(b), which Enterprise contested. In consideration of Enterprise’s agreement to\nthe compliance requirements of this Agreement and Enterprise’s commitment to follow its updated\ndeadleg or bypass procedures throughout all of its facilities, PHMSA finds it appropriate to instead\nissue a warning to Enterprise for its failure to mitigate internal corrosion by ensuring the\neffectiveness of its internal corrosion control monitoring program in accordance with 49 C.F.R.\n§ 195.579(b).\nIII. Compliance Requirement\nEnterprise agrees to take the following corrective measures to address the alleged risk conditions\nas set forth in the Proposed Compliance Order (“PCO”) of the Notice, as follows:\n13. With regard to Item 1, Enterprise agrees to update its procedures to require\ncompletion of a Facility Integrity Information Analysis at a maximum of five (5) year intervals to\nprovide for preventative and mitigative measures at all hazardous liquid facilities that meet all of\nthe following criteria:\ni. The facility is a hazardous liquid facility in crude oil service;\nii. While in crude oil service, the facility has had a reportable accident due to\ninternal corrosion, whether in the 10-year period preceding the Effective Date or on or after\nthe Effective Date; and\niii. At the time of the reportable accident due to internal corrosion, the facility\nwas included in the Enterprise Integrity Management Program because it was determined\nthat the facility could affect a High Consequence Area.\n14. Enterprise agrees to provide the updated procedures and schedule for conducting\nthe above-referenced facilities’ Facility Integrity Information Analysis to Bryan Lethcoe, Director,\nSouthwest Region within 45 days of the Effective Date of this Agreement.\n\n\n\n15. Enterprise agrees to maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to Bryan Lethcoe, Director,\nSouthwest Region, Pipeline and Hazardous Materials Safety Administration. It is requested that\nthese costs be reported in two categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies, and analyses, and 2) the total cost associated with replacements, additions,\nand other changes to pipeline infrastructure.\nIV. Enforcement\n16. This Agreement, including the compliance requirement, is subject to all\nenforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part\n190, including administrative civil penalties under 49 U.S.C. § 60122, of up to $200,000 (as\nadjusted) per violation for each day the violation continues and referral of the case to the Attorney\nGeneral for judicial enforcement, if PHMSA determines that Respondent is not complying with\nthe terms of this Agreement in accordance with determinations made by the Director, or if\nappealed, in accordance with decisions of the Associate Administrator. The maximum civil penalty\namounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\nV. Dispute Resolution\n17. The Director and Enterprise will informally attempt to resolve any disputes arising\nunder this Agreement, including, but not limited to, any decision of the Director. If Enterprise and\nthe Director are unable to informally resolve the dispute within 15 calendar days after the dispute\nis first raised, in writing, Enterprise may submit a written request for a determination resolving the\ndispute from the Associate Administrator for Pipeline Safety. The written request for a\ndetermination must be provided to the Director, counsel for the Southwest Region, and to the\nAssociate Administrator no later than 10 calendar days after the 15-day deadline for informal\nresolution referenced in this paragraph. Along with its request, Enterprise must provide the\nAssociate Administrator with all information Enterprise believes is relevant to the dispute.\nDeterminations of the Associate Administrator under this paragraph constitute final Agency\naction. The existence of a dispute and PHMSA’s consideration of matters placed in dispute, will\nnot excuse, toll, or suspend any term or timeframe for completion of any work to be performed\nunder this Agreement during the pendency of the dispute resolution process, except as agreed upon\nby the Director or Associate Administrator in writing, or ordered by a court of competent\njurisdiction.\nVI. Effective Date\n18. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nVII. Modification\n19. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\n\n\n\nVIII. Termination\n20. This Agreement will remain in effect until the Compliance Requirement in Section\nIII. is satisfied, as reasonably and timely determined by the Director. The Consent Agreement\nshall not terminate until the Director confirms, in writing, that the Consent Agreement is\nterminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement\nor seeking dispute resolution regarding the question of whether the Compliance Requirements\nhave been satisfied.\nIX. Ratification\n21. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n22. The Parties hereby agree to all conditions and terms of this Agreement.\nFor Enterprise Crude Pipeline, LLC,\nBy its Manager, Enterprise Crude GP LLC:\n____________________________________\nGraham Bacon\nExecutive Vice President and Chief Operating Officer\n____________________________________\nDate\nFor PHMSA:\n____________________________________\nBryan Lethcoe\nDirector, Southwest Region\n____________________________________\nDate\n\n42022001NOPV_Closure Letter_07282023_(21-210603)_text.pdf\n\nVIA ELECTRONIC MAIL\nJuly 28, 2023\nGraham W. Bacon\nExecutive Vice President and Chief Operating Officer\nEnterprise Crude Pipeline, LLC\n1100 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF 4-2022-001-NOPV\nDear Mr. Bacon:\nOn May 15, 2023, Enterprise Crude Pipeline LLC (Enterprise) submitted via email its Request to\nConfirm Termination of Proceedings under Part VIII of the Consent Agreement in the above\nreferenced case. Based on PHMSA’s review of the documentation provided, it has been\ndetermined that Enterprise has complied with the terms of the Consent Agreement.\nAccordingly, this case is now closed, and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nCc: Jeff Morton, Senior Director, Transportation Compliance, Enterprise Products Operating,\nLLC, jmorton@eprod.com\nSuzie Davis, Pipeline Compliance Manger, Enterprise Products Operating, LLC,\nsmdavis@eprod.com\nRyan Tschannen, Pipeline Compliance Engineer, Enterprise Products Operating, LLC,\nrtschannen@eprod.com","truncated":false,"body_characters":22438}