{"operation":"document","citation":"CPF 42022046NOPV","title":"PERMIAN EXPRESS PARTNERS LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2022-08-05","effective_on":null,"summary":"OPEN notice of probable violation citing 195.202, 195.228(b), 195.230(a), 195.234(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022046nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022046nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022046nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022046NOPV","body":"Notice of Probable Violation involving PERMIAN EXPRESS PARTNERS LLC. PHMSA's enforcement data identifies the cited regulations as 195.202,  195.228(b),  195.230(a),  195.234(b)(1). The case was opened on 2022-08-05 and is reported as open. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022046NOPV_Final Order_12142022_(22-250946).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_Final%20Order_12142022_(22-250946).pdf\n\n42022046NOPV_Final Order_12142022_(22-250946)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_Final%20Order_12142022_(22-250946)_text.pdf\n\n42022046NOPV_Operator Response to Notice_10042022_(22-250946).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_Operator%20Response%20to%20Notice_10042022_(22-250946).pdf\n\n42022046NOPV_PCO_08052022_(22-250946).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_PCO_08052022_(22-250946).pdf\n\n42022046NOPV_PCO_08052022_(22-250946)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_PCO_08052022_(22-250946)_text.pdf\n\n42022046NOPV_Final Order_12142022_(22-250946)_text.pdf\n\nDecember 14, 2022\nVIA ELECTRONIC MAIL: todd.stamm@energytransfer.com\nMr. Todd Stamm\nSenior Vice President of Operations\nPermian Express Partners LLC\n1300 Main Street\nHouston, Texas 77002\nRe: CPF No. 4-2022-046-NOPV\nDear Mr. Stamm:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Permian Express Partners LLC to comply\nwith the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Service of the Final Order by e-mail is effective upon the date of transmission and\nacknowledgement 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\ncc: Mr. Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Todd Nardozzi, Director, Regulatory Compliance, Permian Express Partners LLC,\ntodd.nardozzi@energytransfer.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 )\nPermian Express Partners LLC, ) CPF No. 4-2022-046-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom December 2021 through May 2022, pursuant to 49 U.S.C. § 60117, representatives of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), inspected Permian Express Partners LLC’s (PEP or Respondent) performance of\ndestructive testing on its 24-inch crude oil Permian Express 2 Pipeline (PEX II) in Houston,\nTexas. On November 15, 2019, a Final Order was issued to PEP, which contained a Compliance\nOrder requiring the performance of destructive tests on “a statistically significant number of girth\nwelds on Spread 24-3 to show that the welds have the required strength and mechanical\nproperties for the application” for the PEX II construction project. Beginning March 20, 2020,\nPEP developed and implemented an incremental weld assessment plan, which PHMSA accepted\nas a Phase I approach. On June 9, 2021, PEP submitted reports from RSI Pipeline Solutions and\nDNV-GL documenting the results to demonstrate the strength and mechanical properties of the\nPhase I samples selected for testing. As a result of the testing, PHMSA discovered issues\nregarding the quality of the welds and initiated an investigation and inspection to further review\nthe welding real time radiography.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated August 5, 2022, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that PEP had committed two violations of 49 C.F.R. part 195 and proposed ordering\nRespondent to take certain measures to correct the alleged violations. PHMSA and PEP\nrepresentatives met on August 25 and September 16, 2022, via teleconference to discuss\nproposed modifications to the Proposed Compliance Order (PCO).\nAfter requesting and receiving an extension of time to respond, PEP responded to the Notice by\nletter dated October 4, 2022 (Response). Respondent did not contest the allegations of violation\nbut requested modification of the PCO. Respondent did not request a hearing and therefore has\nwaived its right to one.\nFINDINGS OF VIOLATION\n\n\n\nIn its Response, PEP did not contest the allegations in the Notice that it violated 49 C.F.R. part\n195, as follows:\nItem 1: The Notice alleged that Respondent violated §§ 195.202 which states:\n§ 195.202 Compliance with specifications or standards\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent with\nthe requirements of this part.\nThe Notice alleged that Respondent violated § 195.202 by failing to follow its nondestructive\ntesting (NDT) procedures during construction of the PEX II pipeline.1 Specifically, the Notice\nalleged that 3,432 radiographs of the PEX II pipeline did not meet Respondent’s duplex image\nquality indicator requirements and that after applying the compensation principle as detailed in\nISO 17636-2, 194 radiographs were unacceptable.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated § 195.202 by failing to follow its NDT\nprocedures.\nItem 2: The Notice alleged that Respondent violated § 195.230(a) which states:\n§ 195.230 Welds: Repair or removal of defects.\n(a) Each weld that is unacceptable under § 195.228 must be removed or\nrepaired. Except for welds on an offshore pipeline being installed from a\npipelay vessel, a weld must be removed if it has a crack that is more than 8\npercent of the weld length.\nThe Notice alleged that Respondent violated § 195.230(a) by failing to remove or repair all\nunacceptable welds.\n2 Specifically, the Notice alleged that PEP did not remove or repair 429\nunacceptable welds.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated § 195.230(a) by failing to remove or repair all\nunacceptable welds.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n1 The Notice included reference to an additional regulatory requirement that governs the nondestructive testing of\nwelds. 49 C.F.R. § 195.234(b)(1) mandates that “any nondestructive testing of welds must be performed in\naccordance with a written set of procedures for nondestructive testing.” These procedures are also subject to the\ngeneral regulatory requirement of § 195.202.\n2 The Notice also referenced the regulatory requirement, § 195.228(b), which governs the standards for determining\nthe acceptability of welds, which is specifically referenced in § 195.230(a).\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 2 for violations of 49 C.F.R.\n§§ 195.202 and 195.230(a), respectively. Under 49 U.S.C. § 60118(a), each person who\nengages in the transportation of hazardous liquids or who owns or operates a pipeline facility is\nrequired to comply with the applicable safety standards established under chapter 601.\nWith regard to the violation of § 195.202 (Item 1), Respondent requested the compliance terms\nshould be modified to allow for completion of the work plan proposed to address the 194\nunacceptable radiographs within one year of issuance of the Final Order for welds located in\nhigh consequence areas (HCAs) or “could affect” areas, and up to four years for the remining\nwelds.\nWith regard to the violation of § 195.230(a) (Item 2), Respondent requested the compliance\nterms should be modified to allow for completion of the work plan proposed to address the 429\nunacceptable welds within one year of issuance of the Final Order for welds located in HCAs or\n“could affect” areas, and up to four years for the remaining welds.\nPEP also asked for the ability to request an extension of time from the Director on a case-by-case\nbasis should the need arise.\nIn a recommendation for final action submitted pursuant to § 190.209(b)(7), the Director\nrecommended the compliance order be amended as requested by PEP. I agree with this\nrecommendation.\nFor the above reasons, the Compliance Order is modified as set forth below.\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 § 195.202 (Item 1), Respondent must prepare a\nwork plan for the Director’s approval containing a prioritized schedule for addressing\nthe 194 unacceptable radiographs that did not meet the compensation principle of ISO\n17636-2 within 45 days of the issuance of the Final Order.\n2. With regard to Item 1, PEP must complete the proposed plan to address the 194\nunacceptable radiographs that did not meet the compensation principle within one\nyear of issuance of the Final Order for welds located in HCAs or “could affect” areas,\nand up to four years for the remaining welds.\n3. With respect to the violation of § 195.230(a) (Item 2), Respondent must prepare a\nwork plan for the Director’s approval containing a prioritized schedule for removing\nor repairing the 429 unacceptable welds that did not confirm with Section 9 or\nAppendix A of API Standard 1104 within 45 days of the issuance of the Final Order.\n\n\n\n4. With regard to Item 2, PEP must complete the work plan proposed to remove or\nrepair the 429 unacceptable welds that did not confirm with Section 9 or Appendix A\nof API Standard 1104 within one year of issuance of the Final Order for welds\nlocated in HCAs or “could affect areas, and up to four years for remaining welds.\n5. Respondent must report to the Director through the implementation of the work\nplan, on a quarterly basis, regarding the weld removal/repair program status,\nincluding reportable incidents or safety-related condition reports, pursuant to 49\nC.F.R part 195 and PEP’s procedures that are associated with applicable girth welds.\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.\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 terms of\nthe order, including corrective action, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 14, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":12609}