# SFPP, LP — Warning Letter

- **operation:** document
- **citation:** CPF 42022054WL
- **title:** SFPP, LP — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2022-07-13
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 199.1.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-42022054wl.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-42022054wl.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-42022054wl
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/42022054WL
**body:**

Warning Letter involving SFPP, LP. PHMSA's enforcement data identifies the cited regulation as 199.1. The case was opened on 2022-07-13 and is reported as closed as of 2022-07-13. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

42022054WL_Warning Letter_07132022_(22-237852).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022054WL/42022054WL_Warning%20Letter_07132022_(22-237852).pdf

42022054WL_Warning Letter_07132022_(22-237852)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022054WL/42022054WL_Warning%20Letter_07132022_(22-237852)_text.pdf

42022054WL_Warning Letter_07132022_(22-237852)_text.pdf

WARNING LETTER
ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
July 13, 2022
Steven Kean
President
SFPP, LP
1001 Louisiana Street, Suite 100
Houston, Texas 77002
CPF 4-2022-054-WL
Dear Mr. Kean:
From March 3, 2022, to May 5, 2022, representatives of the Pipeline and Hazardous Materials
Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)
inspected SFPP, LP’s PHMSA drug and alcohol (D&A) program in Houston, Texas.
As a result of the inspection, it is alleged that SFPP, LP has committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and
the probable violation is as follows:
1. § 199.1 Scope.
This part requires operators of pipeline facilities subject to part 192, 193, or 195 of
this chapter to test covered employees for the presence of prohibited drugs and
alcohol.
SFPP, LP, an operator of pipeline facilities subject to part 192, 193, or 195 of this chapter1
tested employees not covered by the PHMSA drug and alcohol (D&A) regulations for the presence
of prohibited drugs and alcohol as specified in 49 CFR part 40.
Section 199.3 defines a covered employee to mean a person who performs a covered function,
including persons employed by operators, contractors engaged by operators, and persons employed
by such contractors. In addition, §199.3 defines a covered function to mean an operations,
maintenance, or emergency-response function regulated by part 192, 193, or 195 that is performed
on a pipeline or on an LNG facility.
In accordance with §199.115 and §199.245, SFPP, LP allows its contractors to carry out the
PHMSA D&A testing program required by Part 199. NDT Global, a contractor for SFPP, LP,
performed D&A testing on its employees in calendar years 2019, 2020, and 2021 that did not
perform covered functions on PHMSA regulated pipelines in those calendar years and who were
not PHMSA covered employees.
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, SFPP, LP is subject to a civil penalty not to
1 Title 49, Subtitle, Chapter I, Subchapter D



exceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for
a related series of violations. For violations occurring on or after May 3, 2021, and before March
21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation
persists, up to a maximum of $2,251,334 for a related series of violations. For violations occurring
on or after January 11, 2021, and before May 3, 2021, the maximum penalty may not exceed
$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related
series of violations. For violations occurring on or after July 31, 2019, and before January 11,
2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists,
up to a maximum of $2,186,465 for a related series of violations. For violations occurring on or
after November 27, 2018, and before July 31, 2019, the maximum penalty may not exceed
$213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violations
occurring on or after November 2, 2015, and before November 27, 2018, the maximum penalty
may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022.
We have reviewed the circumstances and supporting documents involved in this case and have
decided not to conduct additional enforcement action or penalty assessment proceedings at this
time. We advise you to correct the items identified in this letter. Failure to do so will result in
SFPP, LP being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2022-054-WL. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualities for contidential treatment under 5 U.S.C. 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe the
redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
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