# MERIT ENERGY COMPANY — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 520025026
- **title:** MERIT ENERGY COMPANY — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2002-07-12
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.402(c)(10), 195.402(c)(3), 195.403(c), 195.404(c)(3), 195.412(a), 195.589(c).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520025026
**body:**

Notice of Probable Violation involving MERIT ENERGY COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(10),  195.402(c)(3),  195.403(c),  195.404(c)(3),  195.412(a),  195.589(c). The case was opened on 2002-07-12 and is reported as closed as of 2005-03-14. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520025026_final order_12312002.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520025026/520025026_final%20order_12312002.pdf

520025026_final order_12312002.pdf

U.S Department
of Trnsportatii
Research and
Special Program Administration
400 Seventh St.. S W
Washmgton. D.C 20590
DEC 3 1 2232
Mr. Robert Matejek
Vice President - Operations
Merit Energy Company
12222 Merit Drive
Suite 1500
Dallas, TX 7525 1
Re: CPF No. 5-2002-5026
Dear Mr. Matejek:
Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the
above-referenced case. It makes findings of violation and requires certain corrective action. When
the terns of the compliance order are completed, as determined by the Director, Western Region,
OPS, this enforcement action will be closed. Your receipt of this Final Order constitutes service of
that document under 49 C.F.R. 5 190.5.
Sincerely,
&xendolyn M. Hill
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



DEPARTMENT OF TRANSPORTATION
RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
In the Matter of 1
Merit Energy Company, 1
1
)
Respondent. )
CPF NO. 5-2002-5026
FINAL ORDER
On June 26-28, 2002, pursuant to 49 U.S.C. 601 17, a rep~sentative of the Office of Pipeline
Safety (OPS) conducted an on-site pipeline safety inspection of Respondent's facilities and records
in Bairoil, Wyoming. As a result of the inspection, the Director, WesternsRegion, OPS, issued to
Respondent, by letter dated July 12,2002, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. 9 190.207, the Notice proposed finding that
Respondent violated 49 C.F.R. $9 195.402(~)(3), 195.403, ,'195.404, 195389, 195.4 12, and
195.402(~)(10) (Items 1-6 respectively), and proposed that Respondent ;take oertain measures to
correct the alleged violations. . 3
Respondent did not respond to the Notice within 30 days after it received the Notice. Respondent's
failure to respond waives its right to contest the Notice and authorizes me to find the facts as alleged
in the Notice and issue a Final Order under 49 C.F.R. 9 190.213. Respondent did not request a
hearing, consequently, Respondent waived its right to one.
Respondent did not contest the alleged violations in the Notice. Accordingly, I find that Respondent
violated the following sections of 49 C.F.R. Part 195, as more fully described in the Notice:
49 C.F.R. 5 195.402(~)(3) -- failure to adequately prepare and follow a site-specific
operations, maintenance, and emergencies procedural manual for Respondent's carbon
dioxide pipeline that includes descriptive procedures for operating, maintaining, and
repairing the subject pipeline in accordance with the requirements of Part 195;
49 C.F.R. § 195.403 -- failure to adequately establish and conduct a continuing personnel
training program for its personnel that operate and maintain the carbon dioxide pipeline;
I,,



49 C.F.R. tj 195.404 -- failure to adequately maintain maps and records, including records
of the date, location, and description of repairs and inspections performed on the subject
pipeline;
49 C.F.R. 5 195.589 -- failure to maintain records demonstrating the adequacy of the
corrosion control measures required for Respondent's carbon dioxide pipeline that show,
among other things, the location of cathodically protected pipeline, cathodic protection
facilities, and neighboring structures bonded to cathodic protection systems;
49 C.F.R. 5 195.402(~)(10) -- failure to establish procedures for abandoning pipeline
facilities in Respondent's operations, maintenance, and emergencies procedural manual that
include, among other things, procedures for safe disconnection from an operating pipeline
system, purging of combustibles, and sealing abandoned facilities left in place.
These findings of violation will be considered prior offenses in any subsequent enforcement action
taken against Respondent. , . ,
COMPLIANCE ORDER
Under 49 U.S.C..,4 60 1 18(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 unde~chapter 601. Pursuant to the authority of 48 U.S.C. 601 18(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. Prepare and follow a site-specific operations, maintenance, and emergencies procedural
manual for the carbon dioxide pipeline in accordance with Section 195.402 that includes
sufficiently detailed written procedures to enable Respondent's personnel to recognize
and respond to safety-related conditions and to operate, maintain and repair the subject
pipeline in a safe and reliable manner.
2. Establish and conduct a continuing personnel training program in accordance with
Section 195.403, including, among other things, periodic performance reviews
evaluating whether the objectives of the training program set forth in paragraph (a) of
this section are being met. The training program must also provide for periodic
modifications to ensure the program's continuing effectiveness.
3. Establish and maintain a record keeping system for the subject pipeline in accordance
with Section 195.404, including, among other things, records of the date, location, and
description of pipeline repairs and inspections. The record keeping system must also
ensure that any records created by maintenance contractors are regularly reviewed by
Respondent to ensure that the pipeline is being operated in compliance with the pipeline
safety regulations applicable to its operations.



4. Determine the extent of the carbon dioxide pipeline system's cathodic protection
facilities by performing the necessary electrical field tests in coordination with the
owners and operators of the other underground metallic structures in the vicinity of the
pipeline. After Respondent's cathodic protection facilities are identified, a
determination is made as to their adequacy, and any necessary remedial measures are
taken, Respondent must establish operations and maintenance procedures for the
ongoing monitoring and maintaining of cathodic protection against corrosion in
accordance with Part 195, Subpart H.
5 . Establish and maintain arecord keeping system in accordance with Section 195.589 that
shows, among other things, the location of Respondent's cathodically protected pipeline,
cathodic protection facilities, and neighboring structures bonded to its cathodic
protection systems, and demonstrates the adequacy of the corrosion control measures
required for the subject pipeline under Part 195, Subpart H.
6. Establish comprehensive procedures for abandoning pipeline facilities in accordance with Section 195.402(~)(10) that include, among other things, a detailed purging process
to ensure the integrity of any pipeline being abandoned.
7. Respondent must accomplish the above iteiils within 60 days following receipt of this
Final Order. All documents, procedures, action glans, schedules, and evaluations
demonstrati~ng,compliance with this Order should be submitted to the Director, Western
Region, Office of Pipeline Safety, Golden Hills Centre, Suite A-250, 12600 West
Colfax Avenue, Lakewood, CO 802 15-3736.
The Director, Western Region, OPS, may grant an extension of time to comply with any of the
required items upon a request by the Respondent demonstrating good cause for an extension.
- ,
WARNING ITEM I
The Notice did not propose a civil penalty or corrective action for Item 5 in the Notice, failure to
inspect a pipeline right-of-way within the required interval; therefore, Respondent is warned that if
it does not take appropriate corrective action to address the item and OPS finds a violation in a
subsequent inspection, enforcement action will be taken.
Under 49 C.F.R. 9 190.21 5, Respondent has a right to petition for reconsideration of this Final
Order. The petition must be received within 20 days of Respondent's receipt of this Order and must
contain a brief statement of the issue(s). All terms of the Order, including any required corrective
action, shall remain in full effect unless the Associate Administrator, upon request, grants a stay.



Failure to comply with this Order may result in the assessment of civil penalties of up to $25,000 per
violation per day, or in the referral of the case for judicial enforcement. The terms and conditions
of this Order are effective on receipt.
DEC 3 1 2C02
Date Issued
Stacey Gerard
Associate Administrator
for Pipeline Safety
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