{"operation":"document","citation":"CPF 42024029NOPSO","title":"PLAINS PIPELINE, L.P. — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-05-17","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42024029nopso.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42024029nopso.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42024029nopso","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42024029NOPSO","body":"Safety Order involving PLAINS PIPELINE, L.P.. The dataset does not identify a cited regulation for this case. The case was opened on 2024-05-17 and is reported as closed as of 2026-01-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42024029NOPSO_Closure Letter_01222026_(24-302881).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024029NOPSO/42024029NOPSO_Closure%20Letter_01222026_(24-302881).pdf\n\n42024029NOPSO_Closure Letter_01222026_(24-302881)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024029NOPSO/42024029NOPSO_Closure%20Letter_01222026_(24-302881)_text.pdf\n\n42024029NOPSO_Consent Agreement and Order_07082025_(24-302881).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024029NOPSO/42024029NOPSO_Consent%20Agreement%20and%20Order_07082025_(24-302881).pdf\n\n42024029NOPSO_Consent Agreement and Order_07082025_(24-302881)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024029NOPSO/42024029NOPSO_Consent%20Agreement%20and%20Order_07082025_(24-302881)_text.pdf\n\n42024029NOPSO_Notice of Proposed Safety Order_05172024_(24-302881).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024029NOPSO/42024029NOPSO_Notice%20of%20Proposed%20Safety%20Order_05172024_(24-302881).pdf\n\n42024029NOPSO_Notice of Proposed Safety Order_05172024_(24-302881)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024029NOPSO/42024029NOPSO_Notice%20of%20Proposed%20Safety%20Order_05172024_(24-302881)_text.pdf\n\n42024029NOPSO_Consent Agreement and Order_07082025_(24-302881)_text.pdf\n\nJuly 8, 2025\nVIA ELECTRONIC MAIL TO: chris.chandler@plains.com\nChris R. Chandler\nExecutive Vice President, and Chief Operating Officer\nPlains All American Pipeline, L.P.\n333 Clay Street, Suite 1900\nHouston, Texas 77002\nCPF No. 4-2024-029-NOPSO\nDear Mr. Chandler:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Plains All American\nPipeline, L.P., which was executed on May 14, 2025. Service of the Consent Order and Consent\nAgreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise provided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure: Consent Order and Consent Agreement\ncc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nAnnie Cook, Counsel for Plains All American Pipeline, L.P., Bracewell LLP,\nannie.cook@bracewell.com\nJoe Perez, Senior Attorney, Plains All American Pipeline, L.P., joe.perez@plains.com\n\n\n\nNgiabi Gicuhi, Director, HSE Regulatory Compliance, Plains All American Pipeline, L.P.,\nNgiabi.Gicuhi@plains.com\nKevin Cunningham, HSE Regulatory Compliance Programs, Plains All American Pipeline,\nL.P., kevin.cunningham@plains.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 )\nPlains Pipeline, L.P., )\na subsidiary of Plains All American )\nPipeline, L.P., ) CPF No. 4-2024-029-NOPSO\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated May 17, 2024, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Proposed Safety Order (Notice) to\nPlains Pipeline, L.P., a subsidiary of Plains All American Pipeline, L.P. (Plains or Respondent).\nIn accordance with 49 CFR § 190.239, the Notice alleged that conditions exist on Plains’ Cotton\nDraw Pipeline that pose an integrity risk to public safety, property, or the environment. The\nNotice also proposed that Respondent take certain corrective measures to remedy the alleged\nconditions and ensure that the public, property, and the environment are protected from the\npotential risk.\nIn response to the Notice, Respondent requested an informal consultation, whereupon the parties\nengaged in good-faith settlement discussions that have resulted in the Consent Agreement\nattached to this Consent Order that settles all of the allegations in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Plains is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms.\nPursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in\nthe assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49 CFR § 190.223, or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 CFR § 190.5.\n______________________ ______________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\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 )\nPlains Pipeline, L.P., )\na subsidiary of Plains All American )\nPipeline, L.P., ) CPF No. 4-2024-029-NOPSO\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom August 7 through 11, 2017 and in March and April of 2023, pursuant to Chapter 601 of\ntitle 49, United States Code, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), investigated the pipeline facilities and records of\nPlains Pipeline, L.P., a subsidiary of Plains All American Pipeline, L.P. (Plains or Respondent).\nPlains operates the Cotton Draw Pipeline, a segment of its Plains Basin System. The Cotton\nDraw Pipeline is comprised of two segments (Section 17 to Cotton Draw 12-inch and Cotton\nDraw to El Mar 12-inch), totaling twelve (12) miles of 12-inch API 5L X-52 Grade pipe\noriginating at an existing field gathering lease in Eddy County, New Mexico, traversing through\nLea County, New Mexico, and terminating at Plains’ Cotton Draw Injection Station in Loving\nCounty, Texas. The Cotton Draw Pipeline expansion was constructed in 2016 and includes a\n40,000-barrel breakout tank located at Cotton Draw Station near El Mar, Texas.\nAs a result of the investigation, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated May 17, 2024, a Notice of Proposed Safety Order (Notice). The\nNotice alleged that conditions exist on Respondent’s pipeline system that pose a pipeline\nintegrity risk to public safety, property, or the environment. The Notice also proposed that Plains\ntake certain corrective measures to remedy the alleged conditions and ensure that the public,\nproperty, and the environment are protected from the alleged integrity risk.\nOn July 15, 2024, after receiving a time extension to respond, Plains responded to the Notice by\nsubmitting a written response and request for an informal consultation under 49 CFR\n§ 190.239(b)(2). PHMSA and Respondent (the Parties) held informal consultation on August 8,\n2024.\n\n\n\nAs a result of the informal consultation, the Parties agree that settlement of this proceeding and\nresolution of the Item 1 compliance order associated with the Final Order (CPF 4-2019-5004)1\nby entry into this Consent Agreement (Agreement) is the most appropriate means of resolving\nthe issues raised in the Notice, will avoid further administrative proceedings or litigation, and is\nin the public interest. Therefore, pursuant to 49 CFR § 190.239(b)(2), without adjudication of\nany issue of law or fact, and upon consent and agreement, the Parties agree to the following\nterms and conditions.\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it\nreceived proper notice of PHMSA’s action in this proceeding and that the Notice states claims\nupon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and\norders issued thereunder.\n2. Respondent neither admits nor denies any allegations or conclusions in the Notice\nor this Agreement, but agrees, for purposes of this Agreement, to complete the actions specified in\nSection II of this Agreement (Corrective Measures) and to abide by the terms of this Agreement.\n3. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein.\n5. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n6. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n1 The Director agrees to close CPF 4-2019-5004 after the Consent Order and Agreement is executed.\n\n\n\n7. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n8. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA’s right of access, entry, inspection, and information gathering or PHMSA’s authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n9. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n10. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n11. This Agreement does not constitute a finding of violation of any Federal law or\nregulation and may not be used in any civil or administrative proceeding of any kind as evidence\nor proof of any fact, fault, or liability, or as evidence of the violation of any law, rule, regulation,\nor requirement, except in a proceeding to enforce the provisions of this Agreement.\nII. Corrective Measures:\n12. Upon issuance of the Consent Order, Respondent agrees to perform the\nCorrective Measures set forth below.\n13. Plains must perform a review of its Operator Qualification (OQ) program required\nby 49 CFR Part 195, Subpart G, and identify any covered tasks for inclusion in its OQ program,\nincluding but not limited to tasks associated with:\na) b) c) d) Ensuring adequate pipeline support during excavation;\nWelding and welding inspection on an existing in-service pipeline;\nVisual inspection of pipe and components prior to installation;\nVisual inspection for internal corrosion;\ne) Measuring internal corrosion; and\n\n\n\nf) Installation of steel pipe in a ditch.\nA report detailing the evaluation, including covered tasks that were identified during the review\nfor inclusion in Plains’ OQ Plan, must be submitted to the Director, Southwest Region, PHMSA\n(Director) within 90 days of issuance of the Order. Plains must submit its OQ Plan and Covered\nTask List revised in accordance with Corrective Measure 13 (a) – (f) within 90 days of submission\nof the report to the Director.\n14. Plains must identify all personnel involved in each of the dig sites where cutouts\nwere performed as detailed in the Notice, OQ records for the identified personnel, and the tasks\nperformed, and provide this information to the Director within 30 days of issuance of the Order.\n15. Plains must: evaluate the work performed associated with the cutouts and repair\nwork identified to Plains by the PHMSA inspectors and detailed in the Notice based on the\nconsiderations below and repair records maintained pursuant to applicable Plains procedures;\nreview procedures for any deficiencies and identify revisions needed in operating and maintenance\nprocedures; and submit a report to the Director within 90 days of issuance of the Order, detailing\nthe findings and proposed revisions to the procedures and training needed to remedy any identified\ndeficiencies. Plains may rely on previous evaluations and/or procedural revisions provided they\nwere undertaken after the cutouts and repair work and were based on one or more of the\nconsiderations below.\nThe evaluation and report submitted to the Director must consider whether Plains\ncompleted the following:\na) b) c) d) e) f) g) h) i) Properly purge and isolate the pipeline;\nEnsure pipeline repairs were made in a safe manner;\nEnsure welding was completed according to the requirements of the qualified\nwelding procedure and Plains’ operating and maintenance procedures;\nMeasure residual magnetism and take the appropriate measures to degauss the\npipeline prior to welding;\nReceive written approval or generate design drawings prior to installing temporary\nvents on the pipeline;\nInspect the inside surface of the pipeline for internal corrosion;\nMeasure and document the internal corrosion as required by Plains’ procedures;\nDocument the repair work as required by Plains’ procedures; and\nProperly document the destructive testing results for Plains’ recordkeeping\npurposes.\n16. Plains must develop and implement an internal weld inspection program, including\nwritten procedures, for the Cotton Draw Pipeline to inspect the integrity of the girth welds and\nidentify action thresholds requiring mitigative measures. The program must use an inline\ninspection tool capable of:\na) b) Detecting and sizing cracks and crack growth;\nIdentifying and sizing any other integrity-threatening defects in the girth welds; and\n\n\n\nc) Identifying increases in strain that may threaten the integrity of the girth welds.\nPlains must submit its internal weld inspection program and procedures developed in accordance\nwith the above for approval to the Director within 90 days of issuance of the Order. Plains must\nperform the first assessment within 3 years from the date Plains receives approval for its internal\nweld inspection program and procedures from Director, perform one reassessment with an inline\ninspection tool at an interval determined based on the results of the first assessment, and provide\nthe final results of both assessments to the Director for approval within 60 days of completing each\nof the assessments. This Corrective Measure shall be deemed satisfied upon the completion of the\ninitial assessment (as specified in the weld inspection program and procedures approved by\nPHMSA) and one reassessment with an inline inspection tool at an interval determined based on\nthe results of the first assessment under the terms of this Corrective Measure. Any further\nreassessment is outside of this Agreement and will be conducted in accordance with the intervals\nprescribed by Plains’ Integrity Management Plan.\n17. Plains must:\na) b) c) d) Perform an effectiveness review of its internal corrosion control program for the\nCotton Draw Pipeline;\nDetermine the severity and extent of the existing internal corrosion;\nPerform testing to determine the specific cause of the internal corrosion; and\nImplement the appropriate monitoring, testing, and mitigative measures to ensure\nthe integrity of the pipeline.\nPlains may use previous tests, inspections, assessments, evaluations, monitoring, and/or\nmitigative measures provided that they were related to addressing, monitoring, testing, and/or\nmitigating internal corrosion on the Cotton Draw Pipeline. Plains must submit a report to the\nDirector within 60 days of issuance of the Order, providing details of the internal corrosion control\nprogram effectiveness review, the specific cause(s) of the internal corrosion, the procedures that\nPlains will implement to test and monitor the effectiveness of the internal corrosion control\nprogram, and the preventative and mitigative measures that will be implemented.\n18. Extensions of Time. The Director may grant an extension of time for compliance\nwith any of the terms of the Agreement upon a written request timely submitted demonstrating\ngood cause for the extension. The Director shall respond in writing to any such request.\nIII. Review and Approval Process:\n19. With respect to any submission under Section II (Corrective Measures) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures, including but not limited to any conditions the Director identifies. If the\nDirector disapproves all or any portion of the submission, the Director will provide Respondent a\nwritten notice of the deficiencies and a reasonable period of time to correct them. Respondent\n\n\n\nwill correct all deficiencies within the time specified by the Director and resubmit it for approval.\nIf the Director does not act on a submission or any document or plan submitted under this\nparagraph within 60 days of submission, it will be deemed to be approved unless the Director\nprovides written notice during the 60-day period which includes an estimated date of completion\nof its review.\nIV. Dispute Resolution:\n20. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including but not limited to any decision of the Director under the\nterms of Sections II (Corrective Measures) and III (Review and Approval Process) . If\nRespondent and the Director are unable to informally resolve the dispute within 15 calendar days\nafter Respondent invokes the dispute resolution provision in writing, to the Director, Respondent\nmay submit a written request for a determination resolving the dispute from the Associate\nAdministrator for Pipeline Safety. Such request must be made in writing and provided to the\nDirector, counsel for the Southwest Region, and to the Associate Administrator, no later than 10\ncalendar days from the 15-day deadline for informal resolution referenced in this paragraph.\nAlong with its request, Respondent must provide the Associate Administrator with all\ninformation Respondent believes is relevant to the dispute. If the request is submitted as\nprovided herein, the Associate Administrator will issue a final determination in writing.\nDecisions of the Associate Administrator under this paragraph will constitute final agency\naction. The existence of a dispute and PHMSA’s consideration of matters placed in dispute will\nnot excuse, toll, or suspend any term or timeframe for completion of any work to be performed\nunder this Agreement during the pendency of the dispute resolution process except as agreed by\nthe Director or Associate Administrator in writing.\nV. Enforcement:\n21. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $266,015 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 CFR § 190.223. All work plans and\nassociated schedules set forth or referenced in Section II are automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVI. Effective Date:\n22. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator incorporating the terms of this Agreement. Respondent\nshall be furnished with a copy of the Consent Order within two (2) business days of the Effective\nDate.\nVII. Recordkeeping and Information Disclosure:\n\n\n\n23. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed, unless a longer period of\ntime is required pursuant to 49 CFR Parts 190-199. For any reports, plans, or other deliverables\nrequired to be submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim\nof business confidentiality or other protections applicable to the release of information by\nPHMSA, covering part or all of the information required to be submitted to PHMSA pursuant to\nthis Agreement in accordance with 49 CFR Part 7. Respondent must mark the claim of\nconfidentiality in writing on each page, and include a statement specifying the grounds for each\nclaim of confidentially. PHMSA determines release of any information submitted pursuant to\nthis Agreement in accordance with 49 CFR Part 7, the Freedom of Information Act, 5 U.S.C. §\n552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.\nVIII. Modification:\n24. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nIX. Termination:\n25. This Agreement will remain in effect until the Corrective Measures in Section II\nare satisfied, as determined by the Director. The Agreement shall not terminate until the\nDirector confirms, in writing, that the Agreement is terminated in accordance with this\nparagraph. Respondent may request written confirmation from PHMSA when this Consent\nAgreement is terminated, and the Director will provide such confirmation. Nothing in this\nAgreement prevents Respondent from completing any of the obligations earlier than the\ndeadlines provided for in this Agreement.\nX. Ratification:\n26. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n27. The Parties hereby agree to all conditions and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor Plains All American Pipeline, L.P.:\n___________________________________\nPat Hodgins, Vice President, Health, Safety and Environmental\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Southwest Region, Office of Pipeline Safety\n________________________\nDate\n\n42024029NOPSO_Closure Letter_01222026_(24-302881)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nVIA ELECTRONIC MAIL TO: ceo@Plains.com\n12300 W. Dakota Ave., Suite 340\nLakewood, CO 80228\nJanuary 22, 2026\nMr. Willie Chiang\nChief Executive Officer\nPlains All American Pipeline, L.P.\n333 Clay St. Suite 1600\nHouston, TX 77002\nCPF 4-2024-029-NOPSO\nClosure Letter\nDear Mr. Chang:\nOn July 8, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Plains All American Pipeline, L.P., a Consent Agreement and Order in the above-referenced\ncase. This Order included a requirement to take corrective actions on your pipeline. Based on\nour review of the documentation you provided, it has been determined that you have complied\nwith 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,\nFor Dustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Mulligan (#24-302881)\n\n42024029NOPSO_Notice of Proposed Safety Order_05172024_(24-302881)_text.pdf\n\nVIA ELECTRONIC MAIL TO: hpefanis@paalp.com\nMay 17, 2024\nHarry Pefanis\nPresident\nPlains All American Pipeline, LP\n333 Clay Street, Suite 1900\nHouston, Texas 77002\nCPF 4-2024-029-NOPSO\nDear Mr. Pefanis:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued by the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), in the above-\nreferenced case. The Notice proposes that Plains Pipeline, LP1 (Plains), take certain measures to\nensure facility safety with respect to the Plains Basin System Cotton Draw Pipeline that includes\nover 800 miles of crude oil pipeline originating in Jal, New Mexico, and terminating in Cushing,\nOklahoma. Your options for responding are set forth in the Notice. Service of this Notice by\nelectronic mail is deemed effective upon the date of transmission, or as otherwise provided under\n49 C.F.R. § 190.5.\nWe look forward to a successful resolution to ensure the safety and integrity of the Cotton Draw\nPipeline system. Please direct any questions on this matter to me at (713) 773-7215.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Notice of Proposed Safety Order\ncc: Alan K. Mayberry, Associate Administrator for Pipeline Safety, OPS, PHMSA\nLinda Daugherty, Deputy Associate Administrator for Field Operations, OPS, PHMSA\n1 Plains Pipeline, LP, is a subsidiary of Plains All American Pipeline, LP.\n\n\n\nDustin Hubbard, Director, Western Region, OPS, PHMSA\nPatrick Hodgins, Vice President, Health, Safety, and Environment, NA, Plains Pipeline\nL.P., pdhodgins@paalp.com\nNgiabi Gicuhi, Director, Environmental & Regulatory Compliance, Plains Pipeline L.P.,\nngicuhi@paalp.com\nKevin Cunningham, HSE Regulatory Compliance Programs, Plains Pipeline L.P.,\nkhcunningham@paalp.com\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nSOUTHWEST REGION\nHOUSTON, TX 77074\n____________________________________\n)\nIn the Matter of )\n)\nPlains Pipeline, LP ) CPF No. 4-2024-029-NOPSO\na subsidiary of Plains All American )\nPipeline, LP, )\n)\nRespondent. )\n____________________________________)\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose\nThis Notice of Proposed Safety Order (NOPSO or Notice) is being issued by the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), under the\nauthority of 49 U.S.C. § 60117. Pursuant to § 60117, PHMSA performed inspections of the work\nrequired by the Compliance Order in CPF No. 4-2019-5004 on the Cotton Draw Pipeline, operated\nby Plains Pipeline, LP (Plains). The Final Order in CPF No. 4-2019-5004 determined that Plains\nhad failed to properly qualify the welding procedure used to construct the pipeline. The Final\nOrder included a Compliance Order that required, among other actions, ten girth welds be cut out\nand destructively tested to determine whether they possessed the required strength and mechanical\nproperties consistent with the design of the pipeline. The Compliance Order also required the\npipeline be properly repaired according to the requirements of 49 C.F.R. Part 195 and Plains’\noperating and maintenance procedures. Below is a timeline of relevant events:\n• On June 7, 2016, Plains began operating the Cotton Draw Pipeline.\n• From August 7 through 11, 2017, representatives of PHMSA conducted an on-site pipeline\nsafety inspection of the facilities and records of Plains in Midland, Texas.\n• On January 31, 2019, PHMSA issued a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (NOPV), associated with the 2017 PHMSA\ninspection (CPF No. 4-2019-5004). Item 1 of the NOPV alleged that Plains violated 49\nC.F.R. § 195.214(a) by failing to perform welding in accordance with welding procedures\nqualified under section 5, section 12, or Appendix A or B of API Std 1104. Item 2 of the\nNOPV alleged that Plains violated 49 C.F.R. § 195.222(a) by failing to use qualified\n\n\n\nwelders during welding activities. The NOPV included a Proposed Compliance Order for\nItem 1 and a Proposed Civil Penalty of $75,600 for Item 2.2\n• On October 6, 2020, the Associate Administrator for Pipeline Safety issued the Final Order,\nwhich found that Plains failed to construct the Cotton Draw Pipeline in accordance with 49\nC.F.R. § 195.214(a) by using an unqualified welding procedure (Item 1). The Final Order\nalso found that Plains failed to ensure that production welds made on the Cotton Draw\nPipeline were made by welders who were not properly qualified in accordance with 49\nC.F.R. § 195.222(a) (Item 2). The Final Order included the Compliance Order and assessed\na $75,600 civil penalty.\n• The Final Order included a Compliance Order that required Plains to replicate the welding\nused to construct the Cotton Draw Pipeline in the laboratory and destructively test the\nwelds according to API Std 1104 requirements to determine if the welds had the required\nstrength and mechanical properties for the application. The Final Order provided Plains\nthe opportunity to demonstrate that the welds have the required strength and mechanical\nproperties for the application without having to perform cutouts of production welds. The\nCompliance Order stated that if any of the welding procedure tests could not be\ndestructively qualified in a laboratory setting per API Std 1104 Plains must then perform\ndestructive testing on 10 girth welds on the Cotton Draw Pipeline at locations where\nexternal forces may occur (e.g. slopes, road crossings) to show that the welds have the\nrequired strength and mechanical properties for the application.\n• On November 17, 2020, Plains submitted the proposed weld procedure qualification plan\nand paid the civil penalty of $75,600.\n• On February 19, 2021, PHMSA sent a letter to Plains that identified additional\nrequirements, clarifications, and information needed for the weld procedure qualification\nplan.\n• On April 15, 2021, Plains submitted a revised weld procedure qualification plan.\n• From July 12 through 23, 2021, Plains prepared weld procedure qualification test sample\nrings that were the same standard and had the same characteristics as the pipe used to\nconstruct the Cotton Draw Pipeline. Plains stated that it completed qualification of three\nwelders designated to weld the test samples, then completed welding the three test samples,\nand transferred the three test samples to the laboratory for weld procedure qualification.\n• From August 2 through 4, 2021, the three test samples were tested in a laboratory at Team\nIndustrial Services, Inc. in Pasadena, Texas. One PHMSA inspector witnessed the testing.\n• On August 11, 2021, Plains provided the API 1104 Weld Procedure Qualification Test\nReport, in addition to other information requested by PHMSA while observing the testing.\n2 The NOPV included four total items, but Items 3 and 4 are unrelated to the integrity risks identified in this\nNOPSO.\n\n\n\n• On October 6, 2021, in summarizing the above events (July through August 2021), Plains\nrequested closure of the Compliance Order.\n• On March 24, 2022, PHMSA issued a letter to Plains stating that the Compliance Order\nwas not completed because Plains was unable to complete welds in the laboratory using\nthe same written procedure in use at the time of construction, leaving the adequacy of the\nactual construction welds uncertain. PHMSA noted that during the July 2021 welding\nqualification, welders were unable complete the weld using the travel speed specified in\nthe procedure used to construct the pipeline (CS-G4265M211). PHMSA clarified that the\nCompliance Order required destructive testing on 10 girth welds on the Cotton Draw\nPipeline at locations where external forces may occur (e.g., slopes, road crossings) to show\nthat the welds have the required strength and mechanical properties for the application if\nany of the welding procedure tests cannot be destructively qualified in a laboratory setting\nper API Std 1104.\n• On May 18, 2022, Plains submitted its girth weld cutout and test plan.\n• On August 2, 2022, PHMSA requested additional requirements and clarifications to the\nproposed girth weld cutout and test plan.\n• On August 15, 2022, Plains submitted a revised girth weld cutout and test plan. On the\nsame day, PHMSA indicated it was satisfied with the revised plan.\n• On February 2, 2023, Plains submitted its dig plan.\n• From March 13, 2023, through April 21, 2023, Plains performed cutouts and repairs of the\nCotton Draw Pipeline. During this time, PHMSA was unable to conclude that the\nrequirements of the Compliance Order had been met and identified significant safety\nconcerns regarding Plains’ welding practices and procedures.\n• On April 7, 2023, PHMSA issued a letter to Plains clarifying the remaining requirements\nin the Compliance Order after PHMSA inspectors observed activities the week of March\n13.\n• On May 22, 2023, Plains requested that CPF 4-2019-5004 be closed. For the reasons\ndescribed below, the case remains open.\nIn March and April of 2023, PHMSA conducted multiple inspections of Plains’ corrective actions\ntaken pursuant to the Compliance Order issued in CPF No. 4-2019-5004, including the cutout of\ntest welds, pipe repairs, and reviewing welding procedures and welder qualifications. As a result\nof numerous safety concerns identified during those inspections, existing integrity concerns related\nto the issues identified in CPF No. 4-2019-5004, and PHMSA’s preliminary investigation, it\nappears that conditions exist on the Cotton Draw Pipeline that pose a pipeline integrity risk to\npublic safety, property, or the environment. Pursuant to 49 U.S.C. § 60117(m), PHMSA issues\nthis Notice of Proposed Safety Order, notifying you of the preliminary findings of the\n\n\n\ninvestigation, and proposing that you take measures to ensure that the public, property, and the\nenvironment are protected from the potential risks.\nPreliminary Findings\nThe preliminary findings of PHMSA’s ongoing investigation are as follows:\n• Cotton Draw Pipeline is a segment of the Plains Basin System. The Cotton Draw segment\nincludes twelve (12) miles of 12-inch API SL X-52 Grade pipe originating at an existing\nfield gathering lease in Eddy County, New Mexico, traversing through Lea County, New\nMexico, and terminating at Plains, Cotton Draw Injection Station in Loving County, Texas.\nThe Cotton Draw Pipeline expansion was constructed in 2016 and includes a 40,000-barrel\nbreakout tank located at Cotton Draw Station near El Mar, Texas.\n• From March 13, 2023, through April 21, 2023, Plains employed a contractor, Dean\nServices, to perform cutouts and repairs of the Cotton Draw Pipeline. Inspections of this\nwork identified additional issues including: (1) failure to follow the qualified welding\nprocedures according to the requirements of 49 C.F.R. § 195.214; (2) failure to follow\noperating and maintenance repair procedures required by 49 C.F.R. §195.402; (3) failure\nto properly identify covered tasks and perform the work using personnel qualified under\n49 C.F.R. Part 195, Subpart G; (4) failure to inspect the internal surface of the pipeline for\ncorrosion as required by 49 C.F.R. § 195.579(c); and (5) failure to properly complete\ndestructive testing of the welds as required by the Compliance Order and 49 C.F.R. §\n195.214.\n• (1) - The Compliance Order in CPF No. 4-2019-5004 required Plains to cut out and\ndestructively test production welds on the Cotton Draw Pipeline. It also required that\nrepairs to the pipeline resulting from the cutouts be completed according to Part 195 and\nPlains’ operating and maintenance procedures. During PHMSA’s inspection on March 13,\n2023, a review of the welding inspectors daily log discovered that welders making repairs\nto the Cotton Draw Pipeline welded outside of the parameters specified on the welding\nprocedure (CS-G60M224 - Rev. 6) after cutting out the pipe spools containing the girth\nwelds to be tested. The welders were outside the specified range for amperage and voltage\nfor all passes on the tie-in segment at dig site #4. Additionally, the welding inspector failed\nto document the travel speed to confirm that the welders were following the welding\nprocedure as required by 49 C.F.R. § 195.214. Therefore, it could not be determined if\nPlains followed the welding procedure (CS-G60M224 - Rev. 6) used to weld the\nreplacement pipe segments for repair of the Cotton Draw Pipeline. After PHMSA\nidentified this issue to Plains, the welds were cut out and re-welded. Given that this\nwelding was being performed pursuant to corrective actions related to a prior welding\nviolation, Plains’ failure to follow the qualified welding procedure indicates the continued\npresence of significant issues with the welding performed by Plains.\n• (2) - On April 11, 2023, at dig site #5, a PHMSA inspector observed that Plains welded an\nassembly of fittings onto a pre-tested segment of pipeline that was used to repair the Cotton\nDraw Pipeline after a girth weld cutout. The assembly consisted of a thread-o-let, a pipe\n\n\n\nnipple, and threaded cap. While the segment of replacement pipe was pre-tested, 49 C.F.R.\n§ 195.305(a) requires all pipe and attac","truncated":true,"body_characters":60772}