{"operation":"document","citation":"CPF 42022036NOPV","title":"ENLINK PROCESSING SERVICES, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-12-14","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.467(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022036nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022036nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022036nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022036NOPV","body":"Notice of Probable Violation involving ENLINK PROCESSING SERVICES, LLC. PHMSA's enforcement data identifies the cited regulation as 192.467(c). The case was opened on 2022-12-14 and is reported as closed as of 2024-03-22. Proposed civil penalty: $71,500. Assessed civil penalty: $57,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022036NOPV_Closure Letter_03222024_(21-219815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_Closure%20Letter_03222024_(21-219815).pdf\n\n42022036NOPV_Closure Letter_03222024_(21-219815)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_Closure%20Letter_03222024_(21-219815)_text.pdf\n\n42022036NOPV_Final Order_09122023_(21-219815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_Final%20Order_09122023_(21-219815).pdf\n\n42022036NOPV_Final Order_09122023_(21-219815)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_Final%20Order_09122023_(21-219815)_text.pdf\n\n42022036NOPV_Operator Response to Notice_01102023_(21-219815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_Operator%20Response%20to%20Notice_01102023_(21-219815).pdf\n\n42022036NOPV_PCO PCP_12142022_(21-219815).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_PCO%20PCP_12142022_(21-219815).pdf\n\n42022036NOPV_PCO PCP_12142022_(21-219815)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022036NOPV/42022036NOPV_PCO%20PCP_12142022_(21-219815)_text.pdf\n\n42022036NOPV_Closure Letter_03222024_(21-219815)_text.pdf\n\nVIA ELECTRONIC MAIL TO: walter.pinto@enlink.com\nMarch 22, 2024\nWalter Pinto\nExecutive Vice President and Chief Operating Officer\nEnLink Processing Services, LLC\n1722 Routh Street, Suite 1300\nDallas, Texas 75201\nCPF 4-2022-036-NOPV\nDear Mr. Pinto:\nFrom August 9, 2021, through January 17, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.), inspected EnLink Processing Services, LLC’s (EnLink)\nSabine natural gas pipeline system in Louisiana and Texas. As a result of the inspection, EnLink\nwas issued a Final Order (Order) in the above-referenced case on September 12, 2023. The Order\nassessed a $57,000 civil penalty and included a Compliance Order.\nBased on PHMSA’s review of the documentation EnLink provided and the payment of the civil\npenalty, it has been determined that EnLink has complied with the terms of the Order.\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: Mr. Michael LeBlanc, Senior Vice President, Operations, Enlink Midstream,\nmichael.leblanc@enlink.com\nMr. Cordell Theriot, Senior DOT Compliance Specialist, Enlink Midstream,\ncordell.theriot@enlink.com\n\n42022036NOPV_Final Order_09122023_(21-219815)_text.pdf\n\nSeptember 12, 2023\nVIA ELECTRONIC MAIL TO: walter.pinto@enlink.com\nWalter Pinto\nExecutive Vice President & Chief Operating Officer\nEnlink Processing Services, LLC\n1722 Routh Street, Suite 1300\nDallas, Texas 75201\nRe: CPF No. 4-2022-036-NOPV\nDear Mr. Pinto:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation, assesses a civil penalty of $57,000, and specifies actions that need to be taken to\ncomply with the pipeline safety regulations. When the civil penalty has been paid and the terms\nof the compliance order are completed, as determined by the Director, Southwest Region, this\nenforcement action will be closed. Service of the Final Order by e-mail is effective upon the\ndate of transmission and acknowledgement of receipt as 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\nEnclosure (Final Order)\ncc: Mr. Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Michael LeBlanc, Senior Vice President, Operations, Enlink Midstream,\nmichael.leblanc@enlink.com\nMr. Cordell Theriot, Senior DOT Compliance Specialist, Enlink Midstream,\ncordell.theriot@enlink.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 )\nEnlink Processing Services, LLC, ) CPF No. 4-2022-036-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom August 9, 2021 through January 17, 2022, pursuant to 49 U.S.C. § 60117, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), conducted an inspection of Enlink Processing Services, LLC’s (Enlink or\nRespondent) Sabine natural gas pipeline system in Louisiana and Texas.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated December 14, 2022, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Enlink committed a violation of 49 C.F.R. Part 192, proposed a\ncivil penalty of $71,500, and proposed ordering Respondent to take certain measures to correct\nthe alleged violation.\nEnlink responded to the Notice by letter dated January 10, 2023 (Response). Enlink contested\nthe item in the Notice, including by stating the number of instances of non-compliance was less\nthan alleged, and also providing information regarding corrective actions taken and describing\nprocedural updates. Enlink did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.467(c), which states:\n§ 192.467 External corrosion control: Electrical isolation.\n(a) …\n(c) Except for unprotected copper inserted in a ferrous pipe, each\npipeline must be electrically isolated from metallic casings that are a part of\nthe underground system. However, if isolation is not achieved because it is\nimpractical, other measures must be taken to minimize corrosion of the\npipeline inside the casing.\n\n\n\nThe Notice alleged that Enlink failed to ensure its pipeline system was electrically isolated from\nmetallic casings at 17 locations. Specifically, the Notice alleged that Enlink provided a cathodic\nprotection Survey Report for calendar years 2016 through 2020. The report identified 44 unique\ncased crossings with a metallic short. At the time of the inspection, the Notice alleged Enlink\nhad not initiated action on 17 of the 44 locations to clear the shorted casings or to minimize\ncorrosion on the carrier pipeline inside the casing in accordance with § 192.467(c). In addition,\nthe Notice alleged that Enlink had failed to enter these shorted locations into its work\nmanagement system within two weeks of discovery as required by its procedures. Finally, the\nNotice alleged that since the inspection, Enlink has updated its procedures to eliminate the\nrequirement to report deficiencies within two weeks, but that the revised procedure fails to\nspecify how and at what intervals Enlink will monitor and correct shorted casings to comply with\n§ 192.467(c).\nIn its Response, Enlink stated it disagreed with the allegation in the Notice and explained that\nonly 11 of the 17 casings identified during the inspection are shorted casings. Enlink provided\nadditional documentation with its Response indicating that five of the 17 identified shorted\ncasings had been remediated with wax, and also that an additional one of the shorted casings had\ntested “clear” in 2020. Therefore, Enlink argued that there were only 11 shorted casings.\nEnlink acknowledged that it had updated its procedures to eliminate the requirement to report\ndeficiencies within two weeks and to make attempts to correct deficiencies within six months.\nThe Response further explained Enlink inherited the shorted casings from the previous operator\nof this pipeline, and that it was not practical to enter the shorted casings into Enlink’s systems\nwithin only two weeks. However, Enlink stated it entered the shorted casings into its system\nonce discovered, and has updated its corrosion manual to indicate that 27 cleared casings were\nmetallic. The Response also explained Enlink monitors shorted casings with a gas detector at an\ninterval consistent with its patrolling and leak survey procedures, and has updated its procedures\nto specify such interval.\nA review of the Notice, Enlink’s Response, and the additional documentation provided indicates\nEnlink admits that 11 of the shorted crossings that OPS alleged in the Notice existed at the time\nof the inspection, and that it “is diligently working on addressing” those remaining shorted\ncasings. With respect to Enlink’s position as to inputting the shorted casings inherited from a\nprevious operator into its system within two weeks, this was required by Enlink’s own\nprocedures, as described in the Notice. While the Response generally states that Enlink\n“disagrees with PHMSA’s findings,” it does not provide additional evidence showing\ncompliance with § 192.467(c) regarding actions taken to address the 11 shorted casing locations.\nRather, the Response discussions explain the procedural updates Enlink has made since the\nNotice was issued and address the number of instances of shorted casings that exist. Respondent\nalso admitted that its revised procedures removed the time period to correct deficiencies.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 192.467(c) by failing to ensure its Sabine pipeline system was electrically isolated from\nmetallic casings at 11 locations.\nThis finding of violation will be considered a prior offense in any subsequent enforcement\nactions against Respondent.\n\n\n\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.1\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a civil penalty of $71,500 for Respondent’s violation of 49 C.F.R.\n§ 192.467(c), for failing to ensure its Sabine pipeline system was electrically isolated from\nmetallic casings at 17 locations. The Response did not address or contest the specific factors\nlisted above as considered in PHMSA’s civil penalty assessment in this case. However, Enlink’s\nResponse did address the number of shorted casings that existed at the time of OPS’ inspection.\nEnlink provided additional documentation with its response explaining that there were only 11\nshorted casings on its Sabine natural gas pipeline system, versus the 17 alleged in the Notice. As\nsuch, PHMSA understands Enlink’s Response to address the gravity of the alleged violation, as\napplicable to the number of instances of the alleged violation of § 192.467(c). Enlink has\nprovided sufficient records indicating only 11 shorted casings existed on its Sabine natural gas\npipeline system.\nIn lieu of the 17 instances of shorted casings reflected in the calculation of the proposed civil\npenalty in the Notice, I have adjusted the gravity of the civil penalty to reflect only 11 such\ninstances. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a revised civil penalty of $57,000 for violation of 49 C.F.R. § 192.467(c).\nPayment of the civil penalty must be made within 20 days after receipt of this Final Order.\nFederal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S.\nTreasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,\nOklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the civil penalty will result in accrual of interest at the current annual rate in\naccordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those\nsame authorities, a late penalty charge of six percent (6%) per annum will be charged if payment\nis not made within 110 days of service. Furthermore, failure to pay the civil penalty may result\nin referral of the matter to the Attorney General for appropriate action in a district court of the\nUnited States.\n1 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223 for adjusted amounts.\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order for violation of 49 C.F.R. § 192.467(c). Under 49\nU.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or\noperates a pipeline facility is required to comply with the applicable safety standards established\nunder chapter 601.\nPursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is\nordered to take the following actions to ensure compliance with the pipeline safety regulations\napplicable to its operations:\n1. With respect to the violation of § 192.467(c), Respondent must develop and\nimplement procedures for performing inspections and tests, implementing\nremedial measures, and documenting the findings in accordance with\n§ 192.467(c) and (d) to determine the adequacy of electrical isolation and take\naction to address any remaining shorted casings within 60 days of receipt of the\nFinal Order;\n2. Provide the Director, Southwest Region with a record of Enlink’s remediation\nactivities for all shorted casing locations on the Sabine pipeline within 120 days\nof receipt of the Final Order;\n3. Train employees responsible for completing tasks on Enlink’s updated procedures\nand submit documentation of such training to the Director within 120 days of receipt\nof the Final Order; and,\n4. Retrain employees responsible for completing cathodic protection survey tasks\non how to identify, document, and report concerns with shorted casings and\nsubmit documentation of such retraining to the Director within 120 days of\nreceipt of the Final Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nPHMSA requests that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (see 49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\n\n\n\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address. The written petition must be received no later than\n20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a\nstatement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing of a\npetition automatically stays the payment of any civil penalty assessed. The other terms of the\norder, including any corrective actions, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nSeptember 12, 2023\n_________________________________ ________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":17430}