{"operation":"document","citation":"CPF 42023044NOPV","title":"TARGA DOWNSTREAM LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-05-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(c)(13), 195.452(j)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023044nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023044nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023044nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42023044NOPV","body":"Notice of Probable Violation involving TARGA DOWNSTREAM LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(13),  195.452(j)(1). The case was opened on 2023-05-04 and is reported as closed as of 2024-08-26. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42023044NOPV_Closure Letter_08262024_(22-234487).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_Closure%20Letter_08262024_(22-234487).pdf\n\n42023044NOPV_Closure Letter_08262024_(22-234487)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_Closure%20Letter_08262024_(22-234487)_text.pdf\n\n42023044NOPV_Final Order_01292024_(22-234487).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_Final%20Order_01292024_(22-234487).pdf\n\n42023044NOPV_Final Order_01292024_(22-234487)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_Final%20Order_01292024_(22-234487)_text.pdf\n\n42023044NOPV_Operator Response to Notice_06022023_(22-234487).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_Operator%20Response%20to%20Notice_06022023_(22-234487).pdf\n\n42023044NOPV_PCO_05042023_(22-234487).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_PCO_05042023_(22-234487).pdf\n\n42023044NOPV_PCO_05042023_(22-234487)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023044NOPV/42023044NOPV_PCO_05042023_(22-234487)_text.pdf\n\n42023044NOPV_Final Order_01292024_(22-234487)_text.pdf\n\nJanuary 29, 2024\nVIA ELECTRONIC MAIL TO: cwhite@targaresources.com\nG. Clark White\nExecutive Vice President, Operations\nTarga Downstream LLC\n811 Louisiana Street, Suite 2100\nHouston Texas, 77002\nRe: CPF 4-2023-044-NOPV\nDear Mr. White:\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 to comply with the pipeline safety\nregulations. When the terms of the compliance order are completed, as determined by the\nDirector, Southwest Region, this enforcement action will be closed. Service of the Final Order\nby e-mail is effective upon the date of transmission and acknowledgement of receipt as provided\nunder 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. Bill Grantham, Vice President of Operations, Targa Downstream LLC,\nbgrantham@targaresources.com\nMr. Bryan MacKenzie, Senior Manager of Pipeline Integrity, Targa Downstream LLC,\nbmackenzie@targaresources.com\n\n\n\nMr. Gregg Johnson, Director of Pipeline Compliance, Targa Downstream LLC,\ngjohnson@targaresources.com\nMs. Julie Pabon, Senior Counsel, Targa Downstream LLC, jpabon@targaresources.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 )\nTarga Downstream LLC, ) CPF No. 4-2023-044-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom February 22 through October 17, 2022, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an inspection of the Grand Prix and Orange NGL pipeline systems of Targa\nDownstream LLC (Targa or Respondent) in Houston, Texas.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated May 4, 2023, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding\nthat Targa had committed two violations of 49 C.F.R. Part 195 and proposed ordering Respondent\nto take certain measures to correct the alleged violations.\nTarga responded to the Notice by letter dated June 2, 2023 (Response). In its Response, Targa\ncontested the allegations of violation but agreed to comply with the terms of the Proposed\nCompliance Order (PCO). Targa did not request a hearing and therefore has waived its right to\none.\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195 as follows:\nItem 1: The Notice Alleged that Respondent violated § 195.402(a) and (c)(13), which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies.\nThis manual shall be reviewed at intervals not exceeding 15 months, but at\nleast once each calendar year, and appropriate changes made as necessary to\ninsure that the manual is effective. This manual shall be prepared before\n\n\n\ninitial operations of a pipeline system commence, and appropriate parts shall\nbe kept at locations where operations and maintenance activities are\nconducted.\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following to\nprovide safety during maintenance and normal operations:\n(1) . . . .\n(13) Periodically reviewing the work done by operator personnel to\ndetermine the effectiveness of the procedures used in normal operation and\nmaintenance and taking corrective action where deficiencies are found.\nThe Notice alleged that Targa violated 49 C.F.R. § 195.402(a) and (c)(13) by failing to prepare\nand follow a manual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies, including procedures for\nperiodically reviewing the work done by operator personnel and taking corrective action.\nSpecifically, the Notice alleged that Targa failed to conduct periodic reviews of work done by\noperator personnel to determine the effectiveness of the procedures used in normal operation and\nmaintenance and failed to take corrective action where deficiencies were found in accordance with\n§ 195.402(c)(13). The Notice alleged that during the inspection, PHMSA requested records\nassociated with periodic reviews of the work done by operator personnel for calendar years 2020\nand 2021, which Targa failed to produce.\nIn addition, the Notice alleged that Targa’s Hazardous Liquid OM&E – Operations &\nMaintenance Manual (Aug. 13, 2010) (Liquid O&M manual) failed to include procedures for\nperiodically reviewing the work done by personnel to determine the effectiveness of procedures in\naccordance with § 195.402(c)(13). The Notice asserted that Targa’s procedure failed to include\ndetails on how the work done by operator personnel is reviewed to determine effectiveness of\nprocedures, and how the results of the reviews is documented.\nIn its Response, Targa stated that it disagreed with this allegation and explained that it has an\nexisting procedure within the Liquid O&M manual related to the requirements of\n§ 195.402(c)(13), which was made available to PHMSA’s inspection team. Targa conceded that\nthe records necessary to demonstrate compliance were not available, as they historically have been\nassociated with personnel performance records, which are subject to the company’s employee\nprivacy requirements. Targa stated that going forward it will maintain the records of periodic\neffectiveness reviews in a location that is accessible for regulatory audits. Respondent also\nasserted that it took necessary measures to update the Effectiveness of Procedures section of the\nLiquid O&M manual to amend roles and responsibilities, the process to address changes to\nprocedures used in normal operation and maintenance, and subsequent training. Targa also agreed\nto comply with the PCO and would provide the revised procedures within 30 days of receipt of the\nFinal Order.\nA review of the Notice, Targa’s Response, and the documentation in the record indicates that\nTarga’s Liquid O&M manual, which was provided to the PHMSA inspector, states:\n“Annually, the work of operating personnel will be reviewed through performance\nreviews. If any deficiencies in the normal operating and maintenance procedures are\ndiscovered during the performance reviews, the procedures will be updated and/or changed\n\n\n\nto address the deficiencies. The performance reviews will also be used to review with\npersonnel any deficiencies in their performance in meeting the objectives of the emergency\nresponse training.” 1\nWhile Targa’s procedure includes language referring to the requirement at § 195.402(c)(13), the\nprocedure essentially restates the regulation without including details that are necessary for\nimplementation. For example, the procedure does not contain details regarding the specifics of\nhow the work done by personnel would be reviewed to determine effectiveness, including\nstandards for reviewing and determining when deficiencies exist that require changes. The\nprocedures are also silent regarding how the results would be documented.\nTarga also acknowledged that it failed to make available the required records of the periodic\neffectiveness reviews.2 Targa’s justification that the records were not available due to privacy\nconcerns is not a permissible reason for non-compliance under PHMSA’s regulations. PHMSA\nguidance expressly states that the documentation requirements of § 195.402(c)(13) are required in\norder to evaluate procedures.3 Targa did not contest the PCO and agreed to take the proposed\nactions going forward.4\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 195.402(a) and (c)(13) by failing to prepare and follow a manual of written procedures\nfor conducting normal operations and maintenance activities and handling abnormal operations\nand emergencies, including procedures for periodically reviewing the work done by operator\npersonnel and taking corrective action.\nItem 2: The Notice Alleged that Respondent violated § 195.452(j)(1), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(j) What is a continual process of evaluation and assessment to maintain\na pipeline's integrity?\n(1) General. After completing the baseline integrity assessment, an\noperator must continue to assess the line pipe at specified intervals and\nperiodically evaluate the integrity of each pipeline segment that could affect\na high consequence area.\nThe Notice alleged that Targa violated 49 C.F.R. § 195.452(j)(1) by failing to periodically\nevaluate the integrity of each pipeline segment that could affect a high consequence area (HCA).\nSpecifically, the Notice alleged that Targa failed to conduct a periodic evaluation for the Davis\npump station in Murray County, Oklahoma and failed to provide a process in its integrity\n1 See, Exhibit A1.\n2 See, Targa’s Response, at 2 (June 2, 2023).\n3 See, PHMSA, Operations & Maintenance Enforcement Guidance Part 195 Subpart F, at 19 (July 21, 2017),\nhttps://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/regulatory-compliance/pipeline/enforcement/5781/o-m-\nenforcement-guidance-part-195-7-21-2017.pdf.\n4 See, Targa’s Response, at 2 (June 2, 2023).\n\n\n\nmanagement plan (IMP) to periodically evaluate the integrity of each pipeline segment that could\naffect an HCA as required by §§ 195.452(j)(1) and 195.402(c)(3).\nThe Notice also alleged that Targa’s Integrity Management Plan for Liquids Transmission Pipelines\nSection 7.1 (Apr. 1, 2020) failed to include provisions for periodic evaluations of each pipeline\nsegment that could affect an HCA. Instead, this section only included the assessment process for\nline pipe at specified intervals but overall, failed to provide details on how the periodic evaluation\nwould be conducted for pump station facilities.\nIn its response, Targa stated that it disagreed with this allegation, claiming that the spreadsheet\nprovided for the Akoma to Velma segment included a risk assessment of the Davis pump station\nfacility. It also stated that its IMP provides that facilities are included within the overall pipeline\nevaluation as Targa views the threats as “common” to the pipeline segment. Targa agreed to\ncomply with the PCO and stated that it is revising the IMP to separate the process of evaluating\nline pipe and facilities based on relevant threat factors and adapting the risk assessment\ndocumentation to capture it separately. Targa did not submit additional records or documentation\nwith its Response.\nI have reviewed the Notice, Targa’s Response, and the documentation in the record, which\nconsists of the Arkomato-Velma segment risk analysis, performance evaluation, and Section 7.1 of\nRespondent’s IMP.5 In particular, I note Section 7.1 of the IMP lists approximately 32 “attributes\nabout the pipeline” that Respondent must integrate with available information when conducting a\nperiodic evaluation to assure pipeline integrity. While the listed attributes reflect relevant\ninformation about line pipe, they do not contain attributes specific to pump station facilities that\ncould affect an HCA. In addition, the risk analysis and performance evaluation records do not\notherwise indicate a periodic evaluation was performed of the Davis pump station.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 195.452(j)(1) by failing to periodically evaluate the integrity of each pipeline segment that\ncould affect an HCA.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\nactions against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 2 in the Notice for violations\nof 49 C.F.R. §§ 195.402(a) and (c)(13) and 195.452(j)(1), respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of hazardous liquids or who owns or\noperates a pipeline facility is required to comply with the applicable safety standards established\nunder chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.402(a) and (c)(13), (Item 1), Respondent\n5 Exhibits B1, B2, and B3, respectively.\n\n\n\nmust amend its procedures to include provisions for periodically reviewing the work\ndone by operator personnel to determine the effectiveness of the procedures used in\nnormal operation and maintenance and taking corrective action where deficiencies are\nfound within 30 days of issuance of the Final Order.\n2. With respect to the violation of § 195.452(j)(1), (Item 2), Respondent must\ndevelop a procedure in its IMP to periodically evaluate the integrity of each pipeline\nsegment that could affect an HCA within 30 days of issuance of the Final Order. Targa\nmust perform the periodic evaluation of Davis pump station facility and submit the\nevaluation to the Director, Southwest Region within 60 days of issuance of the Final\nOrder.\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.\nJanuary 29, 2024\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n42023044NOPV_Closure Letter_08262024_(22-234487)_text.pdf\n\nVIA ELECTRONIC MAIL TO: cwhite@targaresources.com\nAugust 26, 2024\nMr. Clark White\nExecutive Vice President Operations\nTarga Downstream LLC\n811 Louisiana Street Suite 2100\nHouston, Texas 77002\nCPF 4-2023-044-NOPV\nDear Mr. White:\nOn January 29, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Targa Downstream LLC (Targa) a Final Order in the above-referenced case. This\nOrder included a Compliance Order. Based on our review of the documentation you provided, it\nhas been determined that you have complied with the terms of this 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\nPipeline and Hazardous Materials Safety Administration\ncc: Bryan J. MacKenzie, Sr. Manager Pipeline Integrity, bmackenzie@targaresources.com\nGregg Johnson, Director of Pipeline Compliance, gjohnson@targaresources.com","truncated":false,"body_characters":18259}