{"operation":"document","citation":"CPF 42022030WL","title":"AMERICAN MIDSTREAM (SEACREST), LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-01-27","effective_on":null,"summary":"CLOSED warning letter citing 192.465(a), 192.481(a), 192.491(c), 192.605(a), 192.745(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022030wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022030wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022030wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022030WL","body":"Warning Letter involving AMERICAN MIDSTREAM (SEACREST), LP. PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.481(a),  192.491(c),  192.605(a),  192.745(a). The case was opened on 2022-01-27 and is reported as closed as of 2022-01-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022030WL_Warning Letter_01272022_(20-171915).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022030WL/42022030WL_Warning%20Letter_01272022_(20-171915).pdf\n\n42022030WL_Warning Letter_01272022_(20-171915)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022030WL/42022030WL_Warning%20Letter_01272022_(20-171915)_text.pdf\n\n42022030WL_Warning Letter_01272022_(20-171915)_text.pdf\n\nWARNING LETTER\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nJanuary 27, 2022\nMatthew Rowland\nChief Executive Officer\nAmerican Midstream (Seacrest), LP\nThird Coast Midstream, LLC\n1501 McKinney Street, Suite 800\nHouston, Texas 77010\nCPF 4-2022-030-WL\nDear Mr. Rowland:\nFrom June 29, 2020 through September 24, 2020, 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 American Midstream (Seacrest) LP’s (AMID) offshore gas gathering pipeline\nlocated near St. Mary Parish, Louisiana. AMID is a subsidiary of Third Coast Midstream, LLC\n(3CM).\nBased on the inspection, it is alleged that AMID has committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the\nprobable violations are:\n1. § 192.465 External corrosion control: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at least once each\ncalendar year, but with intervals not exceeding 15 months, to determine whether\nthe cathodic protection meets the requirements of § 192.463. However, if tests at\nthose intervals are impractical for separately protected short sections of mains or\ntransmission lines, not in excess of 100 feet (30 meters), or separately protected\nservice lines, these pipelines may be surveyed on a sampling basis. At least 10\npercent of these protected structures, distributed over the entire system must be\nsurveyed each calendar year, with a different 10 percent checked each subsequent\nyear, so that the entire system is tested in each 10-year period.\nAMID failed to test its offshore pipeline system to determine the adequacy of cathodic\nprotection at least once each calendar year, but at intervals not exceeding 15 months, for\ncalendar year 2018, as required by §192.465(a) and AMID’s own written procedures.\n\n\n\n2. AMID’s written procedure, External Corrosion, #14.3, OM-192 – 14.0 Corrosion Control\n(Revision #3) Section 6, states:\nEach pipeline that is under cathodic protection must be tested at least\nonce each calendar year, but with intervals not exceeding 15 months\n(1x/yr NTE 15 mos), to determine whether the cathodic protection\nmeets the requirements of §192.463 (See (5) above). However, if\ntests at those intervals are impractical for separately protected short\nsections of mains or transmission lines, not in excess of 100 feet (30\nmeters), or separately protected service lines, these pipelines may be\nsurveyed on a sampling basis. At least 10 percent of these protected\nstructures, distributed over the entire system must be surveyed each\ncalendar year, with a different 10 percent checked each subsequent\nyear, so that the entire system is tested in each 10-year period.\nAnd AMID’s written procedure, Records, #14.8, OM-192 – 14.0 Corrosion Control\n(Revision #3) Section 14.8.0 (3), states:\n3CM personnel must maintain a record of each analysis, check,\ndemonstration, examination, inspection, investigation, review,\nsurvey, and test required 49 CFR 192 Subpart I in sufficient detail\nto demonstrate the adequacy of corrosion control measures or that\ncorrosion requiring control measures does not exist. You must retain\nthese records for at least 5 years, except that records related to 49\nCFR Part 192.465(a) and (e) and 192.475(b) must be retained for as\nlong as the pipeline remains in service.\nDuring PHMSA’s inspection, AMID was unable to provide documentation to show that\nannual cathodic protection surveys were conducted or recorded for calendar year 2018, as\nrequired by §192.465(a).\n§ 192.491 - Corrosion control records.\n(a) . . .\n(c) Each operator shall maintain a record of each test, survey, or inspection required\nby this subpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that a corrosive condition does not exist. These records must be retained\nfor at least 5 years, except that records related to §§ 192.465 (a) and (e) and 192.475(b)\nmust be retained for as long as the pipeline remains in service.\n§ 192.481 - Atmospheric corrosion control: Monitoring.\n(a) Each operator must inspect each pipeline or portion of pipeline that is exposed to\nthe atmosphere for evidence of atmospheric corrosion, as follows:\n2\n\n\n\nIf the pipeline is\nlocated: Then the frequency of inspection is:\nOnshore At least once every 3 calendar years, but with intervals not\nexceeding 39 months\nOffshore At least once each calendar year, but with intervals not\nexceeding 15 months\nAMID failed to inspect, or maintain records of any inspection, of its offshore pipelines\nexposed to the atmosphere for evidence of atmospheric corrosion at least once each\ncalendar year, but with intervals not exceeding 15 months, for calendar years 2018 and\n2019 as required by §§ 192.481(a) and 192.491(c), and AMID’s written procedures.\nAMID’s procedure, Atmospheric Corrosion, #14.5, OM-192 – 14.0 Corrosion Control\n(Revision #3), Section 2, states:\n2. Monitoring for Atmospheric Corrosion\na. 3CM personnel must inspect each pipeline or portion of\npipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion, as follows:\ni. Pipelines located onshore – At least once every 3\ncalendar years, but with intervals not exceeding 39\nmonths (1/3yrs. NTE 39 mos.).\nii. Pipelines located offshore - At least once each\ncalendar year, but with intervals not exceeding 15\nmonths (1/yr. NTE 15 mos.).\nb. During inspections 3CM personnel must give particular\nattention to pipe at soil-to-air interfaces, under thermal\ninsulation, under disbonded coatings, at pipe supports, in\nsplash zones, at deck penetrations, and in spans over water.\nc. If atmospheric corrosion is found during an inspection,\nprotection must be provided as described in 14.5.0.\nd. 3CM personnel must record atmospheric corrosion\ninspections on Form OM-19x- 14.5a Atmospheric Corrosion\nInspection Report.\nDuring the PHMSA inspection, AMID was unable to provide any records to demonstrate\nthat atmospheric corrosion inspections had been conducted on its offshore pipelines for\ncalendar years 2018 and 2019 as required by § 192.481(a).\nAlternatively, if atmospheric inspections were conducted, AMID failed to follow §\n192.491(c) and its written procedures to provide evidence of its annual atmospheric\ncorrosion surveys for calendar years 2018 and 2019 on Form OM-19x-14.5a Atmospheric\nCorrosion Inspection Report.\n3\n\n\n\n3. § 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.\nAMID failed to conduct an annual review of its operations, maintenance, and emergency\nmanual for calendar years 2015 and 2016 as required by § 192.605(a) and AMID’s written\nprocedures.\nAMID’s procedure, Manual Review, #8.1, OM-192 – 8.0 Normal Operation (Revision #3),\nSection 8.1.0, states:\n8.1.0 Operations and Maintenance Manual Preparation and Review\n1. 3CM shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and\nemergencies.\n2. This manual shall be reviewed by the 3CM Natural Gas O&M\nReview Team at intervals not exceeding 15 months, but at least\nonce each calendar year, and appropriate changes made as\nnecessary to ensure that the manual is effective.\n3. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept\nat locations where operations and maintenance activities are\nconducted.\n. . .\nDOCUMENTATION\n1. All records indicating review of the O&M Manual by pertinent personnel and\nassociated changes are retained by the Regulatory Compliance Department and\nmade available to Company personnel in a number of electronic locations\nand/or by hard copy.\nDuring PHMSA’s inspection, AMID was unable to provide documentation that it\nconducted annual reviews of its operations, maintenance, and emergency manual for\ncalendar years 2015 and 2016 as required by § 192.605(a).\n4\n\n\n\n4. §192.745 Valve maintenance: Transmission lines.\n(a) Each transmission line valve that might be required during any emergency must\nbe inspected and partially operated at intervals not exceeding 15 months, but at\nleast once each calendar year.\nAMID failed to inspect and partially operate its transmission line valves at intervals not\nexceeding 15 months, but at least once each calendar year for calendar year 2018 as\nrequired by § 192.745(a) and AMID’s written procedures.\nAMID’s written procedure, Valve Inspection and Maintenance, #12.5, OM-192 – 12.0\nMaintenance (Revision #3), Section 12.5.0 states:\n12.5.0 Valve Inspection and Maintenance\n1. 3CM Operations will maintain each valve that is necessary for the safe\noperation of its pipeline systems in good working order at all times.\n2. 3CM Operations shall provide protection for each valve from unauthorized\noperation and from vandalism by either locking the valve or locating it within\na locked perimeter fence or secured facility.\n3. DOT Emergency Valves – Inspect and partially operate each DOT Emergency\nValve once annually not to exceed 15 months (1x/1yr, NTE 15 mos), to\ndetermine that it is functioning properly (indicated in red in the examples shown\nin 12.5.4).\n4. DOT Non-Emergency Valves – Inspect DOT Non-Emergency Valves at least\none time every two years, not to exceed 30 months (1x/2yrs, NTE 30 mos) to\nensure that all valves necessary for the safe operation of the pipeline are\nmaintained in good working order (indicated in green in the examples shown in\nSection 12.5.4).\n5. Business Critical (non-DOT) Valves – Inspect Business Critical valves at a\nfrequency determined by Operations based on criticality and site-specific risk\nassessment for valves needed for safe, reliable operations (indicated in yellow\nin the examples shown in Section 12.5.4).\n. . .\nDOCUMENTATION\n1. Valve inspections shall be recorded on Form OM-19x-12.5a and retained for 5\nyears (DOT Valves) and the prior inspection for non-DOT and business critical\nvalves.\n2. The valve inspection requirements of this Procedure and any maintenance of\nvalves shall be documented and dated by the person(s) performing the tasks.\nDuring PHMSA’s inspection, AMID was unable to provide documentation that\ntransmission line valve inspections were conducted for calendar year 2018. Alternatively,\n5\n\n\n\nif AMID did perform transmission valve inspections for calendar year 2018, it failed to\nfollow its own procedures that require it to provide documentation of the annual inspection\nand partial operation of its transmission line valves.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related\nseries of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,\nthe maximum penalty may not exceed $222,504 per violation per day the violation persists, up to\na maximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty 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.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2022-030-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: Todd Rivera, Senior Manager, Third Coast Midstream, LLC,\nTRivera@3CMidstream.com\n6","truncated":false,"body_characters":14035}