# PERMIAN EXPRESS PARTNERS LLC — Notice of Probable Violation

- **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:** Not available
- **summary:** OPEN notice of probable violation citing 195.202, 195.228(b), 195.230(a), 195.234(b)(1).
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- **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.

Official case documents:

42022046NOPV_Final Order_12142022_(22-250946).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_Final%20Order_12142022_(22-250946).pdf

42022046NOPV_Final Order_12142022_(22-250946)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_Final%20Order_12142022_(22-250946)_text.pdf

42022046NOPV_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

42022046NOPV_PCO_08052022_(22-250946).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_PCO_08052022_(22-250946).pdf

42022046NOPV_PCO_08052022_(22-250946)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022046NOPV/42022046NOPV_PCO_08052022_(22-250946)_text.pdf

42022046NOPV_Final Order_12142022_(22-250946)_text.pdf

December 14, 2022
VIA ELECTRONIC MAIL: todd.stamm@energytransfer.com
Mr. Todd Stamm
Senior Vice President of Operations
Permian Express Partners LLC
1300 Main Street
Houston, Texas 77002
Re: CPF No. 4-2022-046-NOPV
Dear Mr. Stamm:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by Permian Express Partners LLC to comply
with the pipeline safety regulations. When the terms of the compliance order have been
completed, as determined by the Director, Southwest Region, this enforcement action will be
closed. Service of the Final Order by e-mail is effective upon the date of transmission and
acknowledgement of receipt as provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. Todd Nardozzi, Director, Regulatory Compliance, Permian Express Partners LLC,
todd.nardozzi@energytransfer.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Permian Express Partners LLC, ) CPF No. 4-2022-046-NOPV
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
From December 2021 through May 2022, pursuant to 49 U.S.C. § 60117, representatives of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), inspected Permian Express Partners LLC’s (PEP or Respondent) performance of
destructive testing on its 24-inch crude oil Permian Express 2 Pipeline (PEX II) in Houston,
Texas. On November 15, 2019, a Final Order was issued to PEP, which contained a Compliance
Order requiring the performance of destructive tests on “a statistically significant number of girth
welds on Spread 24-3 to show that the welds have the required strength and mechanical
properties for the application” for the PEX II construction project. Beginning March 20, 2020,
PEP developed and implemented an incremental weld assessment plan, which PHMSA accepted
as a Phase I approach. On June 9, 2021, PEP submitted reports from RSI Pipeline Solutions and
DNV-GL documenting the results to demonstrate the strength and mechanical properties of the
Phase I samples selected for testing. As a result of the testing, PHMSA discovered issues
regarding the quality of the welds and initiated an investigation and inspection to further review
the welding real time radiography.
As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated August 5, 2022, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that PEP had committed two violations of 49 C.F.R. part 195 and proposed ordering
Respondent to take certain measures to correct the alleged violations. PHMSA and PEP
representatives met on August 25 and September 16, 2022, via teleconference to discuss
proposed modifications to the Proposed Compliance Order (PCO).
After requesting and receiving an extension of time to respond, PEP responded to the Notice by
letter dated October 4, 2022 (Response). Respondent did not contest the allegations of violation
but requested modification of the PCO. Respondent did not request a hearing and therefore has
waived its right to one.
FINDINGS OF VIOLATION



In its Response, PEP did not contest the allegations in the Notice that it violated 49 C.F.R. part
195, as follows:
Item 1: The Notice alleged that Respondent violated §§ 195.202 which states:
§ 195.202 Compliance with specifications or standards
Each pipeline system must be constructed in accordance with
comprehensive written specifications or standards that are consistent with
the requirements of this part.
The Notice alleged that Respondent violated § 195.202 by failing to follow its nondestructive
testing (NDT) procedures during construction of the PEX II pipeline.1 Specifically, the Notice
alleged that 3,432 radiographs of the PEX II pipeline did not meet Respondent’s duplex image
quality indicator requirements and that after applying the compensation principle as detailed in
ISO 17636-2, 194 radiographs were unacceptable.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated § 195.202 by failing to follow its NDT
procedures.
Item 2: The Notice alleged that Respondent violated § 195.230(a) which states:
§ 195.230 Welds: Repair or removal of defects.
(a) Each weld that is unacceptable under § 195.228 must be removed or
repaired. Except for welds on an offshore pipeline being installed from a
pipelay vessel, a weld must be removed if it has a crack that is more than 8
percent of the weld length.
The Notice alleged that Respondent violated § 195.230(a) by failing to remove or repair all
unacceptable welds.
2 Specifically, the Notice alleged that PEP did not remove or repair 429
unacceptable welds.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated § 195.230(a) by failing to remove or repair all
unacceptable welds.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
1 The Notice included reference to an additional regulatory requirement that governs the nondestructive testing of
welds. 49 C.F.R. § 195.234(b)(1) mandates that “any nondestructive testing of welds must be performed in
accordance with a written set of procedures for nondestructive testing.” These procedures are also subject to the
general regulatory requirement of § 195.202.
2 The Notice also referenced the regulatory requirement, § 195.228(b), which governs the standards for determining
the acceptability of welds, which is specifically referenced in § 195.230(a).



COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1 and 2 for violations of 49 C.F.R.
§§ 195.202 and 195.230(a), respectively. Under 49 U.S.C. § 60118(a), each person who
engages in the transportation of hazardous liquids or who owns or operates a pipeline facility is
required to comply with the applicable safety standards established under chapter 601.
With regard to the violation of § 195.202 (Item 1), Respondent requested the compliance terms
should be modified to allow for completion of the work plan proposed to address the 194
unacceptable radiographs within one year of issuance of the Final Order for welds located in
high consequence areas (HCAs) or “could affect” areas, and up to four years for the remining
welds.
With regard to the violation of § 195.230(a) (Item 2), Respondent requested the compliance
terms should be modified to allow for completion of the work plan proposed to address the 429
unacceptable welds within one year of issuance of the Final Order for welds located in HCAs or
“could affect” areas, and up to four years for the remaining welds.
PEP also asked for the ability to request an extension of time from the Director on a case-by-case
basis should the need arise.
In a recommendation for final action submitted pursuant to § 190.209(b)(7), the Director
recommended the compliance order be amended as requested by PEP. I agree with this
recommendation.
For the above reasons, the Compliance Order is modified as set forth below.
Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is
ordered to take the following actions to ensure compliance with the pipeline safety regulations
applicable to its operations:
1. With respect to the violation of § 195.202 (Item 1), Respondent must prepare a
work plan for the Director’s approval containing a prioritized schedule for addressing
the 194 unacceptable radiographs that did not meet the compensation principle of ISO
17636-2 within 45 days of the issuance of the Final Order.
2. With regard to Item 1, PEP must complete the proposed plan to address the 194
unacceptable radiographs that did not meet the compensation principle within one
year of issuance of the Final Order for welds located in HCAs or “could affect” areas,
and up to four years for the remaining welds.
3. With respect to the violation of § 195.230(a) (Item 2), Respondent must prepare a
work plan for the Director’s approval containing a prioritized schedule for removing
or repairing the 429 unacceptable welds that did not confirm with Section 9 or
Appendix A of API Standard 1104 within 45 days of the issuance of the Final Order.



4. With regard to Item 2, PEP must complete the work plan proposed to remove or
repair the 429 unacceptable welds that did not confirm with Section 9 or Appendix A
of API Standard 1104 within one year of issuance of the Final Order for welds
located in HCAs or “could affect areas, and up to four years for remaining welds.
5. Respondent must report to the Director through the implementation of the work
plan, on a quarterly basis, regarding the weld removal/repair program status,
including reportable incidents or safety-related condition reports, pursuant to 49
C.F.R part 195 and PEP’s procedures that are associated with applicable girth welds.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
PHMSA requests that Respondent maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to the Director. It is
requested that these costs be reported in two categories: (1) total cost associated with
preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000, as adjusted for inflation (see 49 C.F.R. § 190.223), for each violation for
each day the violation continues or in referral to the Attorney General for appropriate relief in a
district court of the United States.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address. The written petition must be received no later than
20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a
statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The terms of
the order, including corrective action, remain in effect unless the Associate Administrator, upon
request, grants a stay.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
December 14, 2022
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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