{"operation":"document","citation":"CPF 42022022WL","title":"VENICE GATHERING SYSTEM, L.L.C. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-02-18","effective_on":null,"summary":"CLOSED warning letter citing 192.605(a), 192.612(a), 192.612(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022022wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022022wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022022wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022022WL","body":"Warning Letter involving VENICE GATHERING SYSTEM, L.L.C.. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.612(a),  192.612(b). The case was opened on 2022-02-18 and is reported as closed as of 2022-02-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022022WL_Warning Letter_02182022_(21-203090).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022022WL/42022022WL_Warning%20Letter_02182022_(21-203090).pdf\n\n42022022WL_Warning Letter_02182022_(21-203090)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022022WL/42022022WL_Warning%20Letter_02182022_(21-203090)_text.pdf\n\n42022022WL_Warning Letter_02182022_(21-203090)_text.pdf\n\nWARNING LETTER\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nFebruary18, 2022\nMichael McCauley\nOperations General Manager\nVenice Gathering System, LLC\n2103 Research Forest Drive, Suite 300\nThe Woodlands, Texas 77380\nCPF 4-2022-022-WL\nDear Mr. McCauley:\nFrom March 9, 2021, through June 23, 2021, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected Venice Gathering System, LLC’s (VGS) gas gathering pipeline system in and\naround Plaquemines Parish, Louisiana and the Gulf of Mexico.\nAs a result of the inspection, it is alleged that VGS 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. § 192.605 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include procedures\nfor handling abnormal operations. This manual must be reviewed and updated by the\noperator at intervals not exceeding 15 months, but at least once each calendar year.\nThis manual must be prepared before operations of a pipeline system commence.\nAppropriate parts of the manual must be kept at locations where operations and\nmaintenance activities are conducted.\n\n\n\n§ 192.612 Underwater inspection and reburial of pipelines in the Gulf of Mexico and\nits inlets.\n(a) Each operator shall prepare and follow a procedure to identify its pipelines in the\nGulf of Mexico and its inlets in water less than 15 feet (4.6 meters) deep as measured\nfrom mean low water that are at risk of being an exposed underwater pipeline or a\nhazard to navigation. The procedures must be in effect August 10, 2005.\n(b) Each operator shall conduct appropriate periodic underwater inspections of its\npipelines in the Gulf of Mexico and its inlets in waters less than 15 feet (4.6 meters)\ndeep as measured from mean low water based on the identified risk.\nVGS failed to prepare and follow a written procedure to identify its pipelines in the Gulf of\nMexico that were at risk of being exposed or a hazard to navigation. VGS Operations and\nMaintenance Manual, Section 2.12 Underwater Inspections (Revision Date: 06/01/2020),\nstated, “the operator will inspect these pipelines periodically based on the appropriate risk;”\nhowever, it did not provide a sufficient description of the metrics used to determine\n“appropriate risk,” nor did it describe how often or what events trigger a risk assessment, which\nis the proposed basis for determining a “periodic” inspection. VGS acquired the subject 152-\nmile-long pipeline system from Panther Operating Company, LLC on June 23, 2020, and was\nunable to produce records showing that the subject potentially at-risk pipeline had ever been\nidentified and inspected per § 192.612 by Panther during their operation.\nFollowing PHMSA’s 2021inspection, VGS conducted an underwater inspection of the Gulf of\nMexico Pipeline, on December 7, 2021. In addition, VGS revised its O&M Procedure, Section\n2.12 (revised 01/12/2022), and submitted it to PHMSA for review. The revised procedure was\nreviewed by PHMSA Southwest Region and found to provide the procedural specificity\nrequired.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, Venice Gathering System, LLC is subject\nto a civil penalty not to exceed $225,134 per violation per day the violation persists, up to a\nmaximum 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\nper violation per day the violation persists, up to a maximum of $2,225,034 for a related series\nof violations. For violations occurring on or after July 31, 2019, and before January 11, 2021,\nthe maximum penalty may not exceed $218,647 per violation per day the violation persists,\nup to a maximum of $2,186,465 for a related series of violations. For violations occurring on\nor after November 27, 2018, and before July 31, 2019, the maximum penalty may not exceed\n$213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For\nviolations occurring on or after November 2, 2015, and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty\nnot to exceed $2,090,022.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 4-2022-022-WL. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any portion\nof your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along\nwith the complete original document, you must provide a second copy of the document with\nthe portions you believe qualify for confidential treatment redacted and an explanation of why\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":6042}