{"operation":"document","citation":"CPF 42023024WL","title":"VENTURE GLOBAL GATOR EXPRESS, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-01-11","effective_on":null,"summary":"CLOSED warning letter citing 192.241(a)(1), 192.241(a)(2), 192.303, 192.461(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023024wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023024wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023024wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42023024WL","body":"Warning Letter involving VENTURE GLOBAL GATOR EXPRESS, LLC. PHMSA's enforcement data identifies the cited regulations as 192.241(a)(1),  192.241(a)(2),  192.303,  192.461(c). The case was opened on 2023-01-11 and is reported as closed as of 2023-01-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42023024WL_Operator Response to Notice_02092023_(22-233690).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023024WL/42023024WL_Operator%20Response%20to%20Notice_02092023_(22-233690).pdf\n\n42023024WL_Warning Letter_01112023_(22-233690).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023024WL/42023024WL_Warning%20Letter_01112023_(22-233690).pdf\n\n42023024WL_Warning Letter_01112023_(22-233690)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023024WL/42023024WL_Warning%20Letter_01112023_(22-233690)_text.pdf\n\n42023024WL_Warning Letter_01112023_(22-233690)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL\nJanuary 11, 2023\nMichael Perkins\nSenior Vice President\nVenture Global Gator Express, LLC\n1001 19th Street North, Ste 1500\nArlington, VA 2209\nCPF 4-2023-024-WL\nDear Mr. Perkins:\nFrom August 22 to October 6, 2022, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Venture Global Gator Express, LLC’s (Venture Global or the Operator) Gator Express\npipeline construction project near Port Sulphur, Louisiana.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in accordance\nwith comprehensive written specifications or standards that are\nconsistent with this part.\nVenture Global failed to construct its pipeline system in accordance with written comprehensive\nspecifications or standards consistent with Part 192. Specifically, Venture Global failed to follow\nits written procedure, Construction Inspection Plan, GX-500600-CNS-PLN-GIE-00003 (Section\n8.8.8.2) which specifies that manufacturer’s recommendation and procedures must be followed\nduring surface preparation and application of the coating system. The manufacturer’s\nspecification, Protal 7200 Brush application, contains coating system application requirements.\nSection 4.1 of this specification states that “[a]ll contaminants shall be removed from the steel\nsurface to be coated. Oil and grease should be removed in accordance with SSPC SP-1 using non-\n\n\n\noily solvent cleaner (i.e., xylene, MEK, ethanol, etc.).” And section 6.1 states that “[t]he finished\ncoating shall be smooth and free of runs, sags, and or holidays.”\nPHMSA, on August 25, 2022, observed coated field joints with embedded grit, rough edges, and\nweld porosity. After PHMSA identified these issues, the Operator performed an investigation to\nlocate these joints and subsequently attempted repairs. Venture Global then submitted repair\nrecords on these identified joints. However, PHMSA was unable to verify the repairs as the pipe\nhad already been buried. Venture Global offered to excavate a field joint to inspect the coating,\nbut PHMSA was uncertain that this would confirm repair of the previously observed defective\nfield joints. Photographs presented by Venture Global seem to show that additional epoxy was\napplied to the defective field joint coating, but this was not consistent with the repair procedure\nspecified by the manufacturer. This procedure required the defective coating be removed by\nabrasive blasting and recoated according to the manufacturer’s specifications (Denso Protal 7200\nBrush Application Specification, Section 7.0).\nTherefore, Venture Global failed to construct its Gator Express pipeline project in accordance with\ncomprehensive written specifications or standards that are consistent with the requirements of Part\n192 in accordance with § 192.303.\n2. § 192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in accordance\nwith comprehensive written specifications or standards that are\nconsistent with this part.\nVenture Global failed to construct its Gator Express pipeline in accordance with its written\nspecifications as required by § 192.303. Specifically, Venture Global failed to maintain a weld\nrejection rate of three percent or less. Section 7.0 of Venture Global’s NDE Procedures and\nPersonnel Certification requirements states that the “[c]ontractor shall maintain a reject rate of\nthree percent or less. Owner has the right to require contractor to submit a mitigation plan to\naddress the conformance of the required weld rejection rate provided the rejection rate is greater\nthan the 3%.”\nVenture Global’s construction records indicated that the weld rejection rate for the project was\n8.96%. At the time of inspection (August 25, 2022), Venture Global had not yet investigated the\ncause and required the contractor to submit a mitigation plan.\nOn September 30, 2022, Venture Global provided the results of an investigation into the high weld\nrejection rate. The investigation failed to identify a specific cause. However, a technical welding\nrepresentative employed by the contractor recommended that welders “pay attention to the basic\nwelding techniques of preheat, grinding, buffing, and protecting the weld from inclement\nweather.” Since the investigation, the weld rejection on the project has trended downward but is\nstill greater than 3%.\n\n\n\nTherefore, Venture Global failed to construct its Gator Express pipeline project in accordance with\ncomprehensive written specifications or standards that are consistent with the requirements of Part\n192 in accordance with § 192.303.\n3. § 192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in accordance\nwith comprehensive written specifications or standards that are\nconsistent with this part.\nVenture Global failed to construct its pipeline system in accordance with written comprehensive\nspecifications or standards consistent with Part 192. Specifically, Venture Global failed to follow\nits written procedure, Welding and Fabrication Specification, VG-000000-PPL-SPC-VGL-00009\n(Section 12.2.1) which states that the “NDT Contractor shall assign consecutive weld numbers\neach day for the given project to determine numbering sequence, and prior to welding on Company\nfacilities.\n”\nDuring PHMSA’s inspection on August 24, 2022, PHMSA determined that Venture Global failed\nto assign weld numbers prior to welding, as required by its procedures. Since weld identification\nnumbers are used to associate records for non-destructive examination inspections, visual\ninspections of welds, weld repair records, and inspections of field joint coatings, improper weld\nnumbering impedes PHMSA’s ability to review these records. Assigning weld numbers after\nwelding is difficult and reduces the reliability of the records. After PHMSA identified this issue,\nVenture Global committed to modifying its practices to be consistent with its procedures.\n4. § 192.241 Inspection and test of welds.\n(a) Visual inspection of welding must be conducted by an individual\nqualified by appropriate training and experience to ensure that:\n(1) The welding is performed in accordance with the welding\nprocedure; and\n(2) The weld is acceptable under paragraph (c) of this section.\n§ 192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in\naccordance with comprehensive written specifications or standards\nthat are consistent with this part.\nVenture Global’s welding inspectors failed to perform visual inspections of production welds as\nrequired by its procedures and § 192.241. Venture Global’s written specification, Welding and\nFabrication Specification, VG-000000-PPL-SPC-VGL-00009 (Section 8.3) states:\nA qualified welding inspector shall examine and accept welds in\nconformance with the applicable code. All API 1104 code welds shall be\n100% visually inspected by the welding inspector prior to NDE and meet\nthe following visual inspection requirements:\n\n\n\n8.4. Girth arc welds shall be examined for:\n8.4.1. Cracks: Any weld with a crack shall be removed.\n8.4.2. Grinder marks: Excessive grinder marks (as judged by the welding\ninspector) are not allowed.\n8.4.3. External undercut exceeding API 1104 acceptance criteria and\npinholes in the final cap shall be repaired by grinding and recapping the\naffected portion of the weld. Spot welding to cover a pinhole in the final\ncap is not permitted. Welding a stripper bead outside the weld cap to cover\nundercut is not permitted.\n8.4.4. Weld defects greater than 25% of the weld length shall not be repaired\nand must be cut out.\n8.4.5. Weld metal: At no point shall crown surface be below outside surface of\nthe pipe nor shall it be raised above parent metal by more than the height\nqualified in the WPS. Two beads shall not be started in the same location. Face\nof the completed weld shall be approximately 1/8-inch wider than\nand centered along the original groove.\nDuring PHMSA’s inspection of the Gator Express pipeline construction project on August 25,\n2022, Venture Global failed to perform visual inspections and the acceptability of the visually\ninspected welds were not performed according to Section 9 of API 1104. Several weld joints with\ndefects were observed as accepted by the welding inspectors. Venture Global’s construction\nrecords confirmed that it accepted weld joints with defects. After PHMSA identified these issues,\nthe Operator performed an investigation to locate these joints and subsequently attempted repairs.\nVenture Global then submitted repair records on these identified joints. However, these records\ndid not indicate any weld repairs. Photographs presented by Venture Global seem to show that\nadditional epoxy was applied to the defective weld joints. Additional PHMSA inspections did not\nobserve other weld joints with similar issues.\nTherefore, Venture Global failed to perform visual inspections in accordance with its procedures\nand § 192.241.\n5. § 192.461 External corrosion control: Protective coating\n(a) . . . .\n(c) Each external protective coating must be inspected just prior to\nlowering the pipe into the ditch and backfilling, and any damage\ndetrimental to effective corrosion control must be repaired.\n§ 192.303 Compliance with specifications or standards.\nEach transmission line or main must be constructed in\naccordance with comprehensive written specifications or standards\nthat are consistent with this part.\n\n\n\nVenture Global failed to backfill the pipe immediately after the protective coating was inspected\nas required by its procedures and § 192.461(c). Venture Global’s written specification, Pipeline\nConstruction Specification, VG-000000-CNS-SPC-VGL-00003 (Section 22) states that “[a]ll pipe\ncoating must be inspected just prior to lowering the pipe into the ditch or pulling the pipe into the\nhole and any damage discovered must be repaired.\n” Section 27.2 states that “[b]ackfilling shall\nstart as soon as possible after the lowering-in operation has been completed to prevent floating of\nthe pipe in case water enters the trench, and to prevent damage to the coating by movement of the\npipe caused by temperature changes. Extreme care shall be taken so as not to damage the pipe or\npipe coating.”\nOn October 5, 2022, a PHMSA inspection of construction records indicated that pipe was\nbackfilled three (3) days after the external coating was inspected. The pipeline span from Station\n616+00 to Station 616+80 was jeeped on September 12, 2022, inspected on September 14,\nlowered-in on September 15, and backfilled on September 17. Failure to backfill the pipe\nimmediately after inspecting and lowering could cause damage to pipe coating.\nTherefore, Venture Global failed to backfill the pipe immediately after the protective coating was\ninspected as required by its procedures and § 192.461(c).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related\nseries of violations. For a violation occurring on or after May 3, 2021 and before March 21, 2022,\nthe maximum penalty may not exceed $225,134 per violation per day the violation persists, up to\na maximum of $2,251,334 for a related series of violations. For a violation occurring on or after\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For a violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For a violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679. For a violation occurring\non or after November 2, 2015 and before November 27, 2018, the maximum penalty may not\nexceed $209,002 per violation per day, with a maximum penalty 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. We advise you to correct the items identified in this letter. Failure to do so may result in\nadditional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2023-024-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,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Michael Perkins, Senior Vice President- Project Director, mperkins@vglng.com\nGreg Coppola, Vice President- Pipeline, gcoppola@venturegloballng.com\nCassie Harrison, Director Regulatory Compliance, cassie.harrison@venturegloballng.com\nRuben Altamirano, Manager- Pipeline Compliance, raltamirano@venturegloballng.com","truncated":false,"body_characters":14890}