{"operation":"document","citation":"CPF 520025030","title":"HECO - HAWAIIAN ELECTRIC COMPANY, INC. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-09-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(c)(12), 195.402(c)(2), 195.404(b)(1), 195.412(a), 195.424(a), 195.428(a), 195.587.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520025030.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520025030.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520025030","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520025030","body":"Notice of Probable Violation involving HECO - HAWAIIAN ELECTRIC COMPANY, INC.. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(12),  195.402(c)(2),  195.404(b)(1),  195.412(a),  195.424(a),  195.428(a),  195.587. The case was opened on 2002-09-04 and is reported as closed as of 2005-03-14. Proposed civil penalty: $2,500. Assessed civil penalty: $2,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520025030_final order_04302003.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520025030/520025030_final%20order_04302003.pdf\n\n520025030_final order_04302003.pdf\n\nU.S. De~artment\nof rans sport at on Research and\nSpeckl Programs\nAdministration\n400 Seventh St.. S W\nWashmgton. D.C 20590\nla3 - 6 :,; 1 10: 5 6\nAPR 3 0 2cs\nMr. Thomas C. Simmons\nVice President\nHawaiian Electric Company\n820 Ward Avenue\nHonolulu, HI 96813\nRE: CPF NO. 5-2002-5030\nDear Mr. Simmons:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes findings of violation and assesses a civil penalty of $2,500. The\nFinal Order also requires certain corrective action and revision of certain operating and maintenance\nprocedures. This enforcement action d l be closed when the civil penalty is paid, your procedures\nare revisedand the terms of the compliance order completed, as determined by the Director, Western\nRegion. The penalty payment terms are set forth in the Final Order. Your receipt of the Final Order\nconstitutes service of that document under 49 C.F.R. 5 190.5.\nSincerely,\n' Gwendolyn M. ~ i l f\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Mr. T. Michael, President HECO\nCERTIFIED MAIL - RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of 1\nHAWAIIAN ELECTRIC COMPANY, 1 CPF No. 5-2002-5030\nRespondent. )\n)\nFINAL ORDER\nDuring April 9-10,2002, pursuant to 49 U.S.C. $601 17, a representative of the Office of Pipeline\nSafety (OPS) conducted an on-site pipeline safety inspection of Respondent's facilities and records\nin Oahu, Hawaii. As a result of the inspection, the Director, Western Region, OPS, issued to\nRespondent, by letter dated September 4, 2002, a Notice of Probable Violation, Proposed Civil\nPenalty, Proposed Compliance Order, and Notice of Amendment (Notice). In accordance with\n49 C.F.R. $ 190.207, the Notice proposed finding that Respondent had violated 49 C.F.R.\n54 195.402, 195.404, 195.41 2 and 195.428, proposed assessing a civil penalty of $2,500 for the\nalleged violations and proposed that Respondent take certain measures to correct the alleged\nviolations. The Notice also proposed, in accordance with 49 C.F.R. 9190.237, that Respondent\namend its procedures for Operations, Maintenance and Emergencies.\nRespondent responded to the Notice by letter dated October 9,2002 (Response). Respondent did\nnot contest the allegations of violation but offered an explanation and provided information in\nmitigation of the proposed civil penalty. Respondent did not request a hearing, consequently\nRespondent waived its right to one.\nFINDINGS OF VIOLATION\nUncontested\nRespondent did not contest the alleged violation of $9 195.402, 195.404, 195.428 in the Notice.\nAccordingly, I find that Respondent violated 49 C.F.R. Part 195, as more fully described in the\nNotice:\n49 C.F.R. $195.404(b)(l) - failure to have and maintain a formal record keeping\nprogram to ensure that high and low pressures are detected and recorded at\nappropriate time intervals during normal and abnormal conditions, as Respondent\nmanually takes readings of pressures in its pipeline during operation every half hour.\n\n\n\n49 C.F.R. 9 195.428(a) - failure to comply with inspection and testing requirements\nfor pressure limiting devices at the Iwilei pump station, exceeding the prescribed 15\nmonth maximum interval. The pressure relief valve was not inspected or tested\nduring the calendar year 2001.\nThese findings of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. 9 60122, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations. The Notice proposed a $2,500 civil penalty for violation of 49 C.F.R. 9 195.428.\n49 U.S.C. 9 60122 and 49 C.F.R. 9 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other matters as justice may require.\nTheNotice proposed a civil penalty of $2,500 for violation of 49 C.F.R. 9 195.428(a), as Respondent\nfailed to timely test and maintain its pressure relief valve at the Iwilei pump station. In response to\nItem 7, the Respondent provided information concerning the corrective actions it has taken and\nrequested elimination or mitigation of the proposed $2,500 civil penalty. Respondent advised that,\nin addition to the hard copy, an electronic log is now generated which automatically calculates the\ntime interval between inspections.\nRespondent argued that the civil penalty should be waived because its additional operational and\nmaintenance practices are consistent with the testing interval requirement. Respondent explained\nthat its pressure relief valve is only needed for fifteen minutes, during initial diesel heating of the\npipeline and final diesel displacement of the black oil pipeline. As a back up, an operator is\nphysically stationed at the pump with instructions to shut down the pipeline if the pressure exceeds\n220 psig. The MOP, 220 psig, and the relief valve setting, 205 psig, are much lower than the design\npressure of the pipeline psig. Respondent fiuther explained that it has a practice of installing new\nrelief valves in lieu of testing the existing relief valve. Respondent argued that this practice means\nthat the installed relief valve was never more than 20 months old, resulting in a much lower\nlikelihood that the valve would operate improperly due to component wear or degradation from the\nenvironment.\nRegardless of the pressure that the device is exposed to Federal regulations require all overpressure\nsafety devices undergo inspection and testing at prescribed intervals. Respondent acknowledged that\nthe testing interval for the pressure relief valve exceeded the required interval. Inspection and testing\nofthese devices provide the operator with the information necessary to determine whether the device\nfunctions properly and serves as an alert to possible safety-related conditions. Respondent's practice\nof installing a new relief valve at 20 months would still exceed the maximum interval by 5 months.\n\n\n\nThe fact that the pressure relief valve is new does not provide any greater level of safety than a valve\nthat is properly inspected, tested and maintained in good mechanical condition. There is no\nguarantee that a new valve is functioning properly and free of defect without inspection and testing.\nThe primary objective of the Federal pipeline safety standards is public safety. Failure to timely\ninspect and test pressure relief valves to correct deficiencies could adversely affect public safety,\ncreating the risk that the value may not operate properly in the event of an emergency. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $2,500, for violation of 49 C.F.R. 5 195.428.\nPayment of the civil penalty must be made within 20 days of service. Payment may be made by\nsending a certified check or money order (containing the CPF Number for this case) payable to\n\"U.S. Department of Transportation\" to the Federal Aviation Administration, Mike Monroney\nAeronautical Center, Financial Operations Division (AMZ-120), P.O. Box 25770, Oklahoma City,\nOK 73125.\nFederal regulations (49 C.F.R. 4 89.2 1 (b)(3)) also permit this payment to be made by wire transfer,\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S. Treasury.\nDetailed instructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-120), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 25770, Oklahoma City, OK 73 125; (405) 954-47 19.\nFailure to pay the $2,500 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 3 1 U.S.C. 5 371 7,3 1 C.F.R. 5 901.9 and 49 C.F.R. 5 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not\nmade within 1 10 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attorney General for appropriate action in an United States District Court.\nCOMPLIANCE ORDER\nThe Notice proposed a Compliance Order with regards to Item 5, violation of 49 C.F.R.\nij 195.404(b)(l).\nUnder 49 U.S.C. $601 18(a), each person who engages in the transportation of hazardous liquids or\nwho owns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. Pursuant to the authority of 49 U.S.C. 5 601 18(b) and 49 C.F.R.\n5 190.21 7, Respondent is hereby ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to Respondent's operations:\n1. Implement program and procedures to monitor and record high and low\ndischarge pressures, including the recording of periodic readings of constant\npressure.\n\n\n\n2. Submit documentation of the costs associated with the implementation of\nItem 1. I\n3. Within 30 days of receipt of this Order, submit confirmation and evidence\nof completion of these actions to the Director, Office of Pipeline Safety, Western\nRegion, 12600 West Colfax Avenue, Golden Hills Center, Suite A-250, Lakewood,\nCO 802 15-3736.\nAMENDMENT OF PROCEDURES\nItems 1-4 of the Notice alleged inadequacies in Respondent's Operations, Maintenance and\nEmergencies Manual and proposed to require amendment of Respondent's procedures to comply\nwith the requirements of 49 C.F.R. $ 5 195.402(~)(12), 195.402(~)(3), and 195.402 (c)(2).\nRespondent did not contest the proposed Notice of Amendment. Accordingly, I find that\nRespondent's procedures are inadequate to ensure safe operation of its pipeline system. Pursuant to\n49 U.S.C. $ 60108(a) and 49 C.F.R. $ 190.237, Respondent is ordered to make the following\nrevisions to its procedures. Respondent must:\n1. Amend its procedural manual for operations, maintenance and emergencies to ensure\ndocumentation of all liaison activities.\n2. Amend its procedural manual for operations, maintenance and emergencies manual\nto ensure that corrosion control procedures include methods for determining the\nremaining strength of corroded pipe.\n3. Amend its procedural manual for operations, maintenance and emergencies manual\nto require that when the line pipe is moved the operating pressure shall be reduced\nto no more than 50% of the Maximum Operating Pressure (MOP).\n4. Amend its procedure manual for operations, maintenance and emergencies to require\nan accident report for each failure in which there is a release of 5 gallons (1 9 liters)\nor more of hazardous liquid or carbon dioxide, except that no report is required for\na release of less than 5 barrels (0.8 cubic meters) resulting from a pipeline\nmaintenance activity if the release is:\n(I) Not otherwise reportable under this section;\n(2) Not one described in Sec. 195,52(a)(4); (descriptions must be speczfic)\n(3) Confined to company property or pipeline right-of-way; and\n(4) Cleaned up promptly.\n5. Submit the amended procedures within 30 days following receipt of this Order to\nDirector, Ofice of Pipeline Safety Western Region, 12600 West Colfax Avenue,\nSuite A-250, Lakewood, CO 802 15.\n\n\n\nWARNING ITEM\nThe Notice did not propose a civil penalty or corrective action for Item 6 but warned Respondent that\nit should take appropriate corrective action to correct the item. Respondent presented information\nin its response showing that it has addressed the cited item. Respondent is again warned that if OPS\nfinds a violation in a subsequent inspection, enforcement action will be taken.\nItem 6 of the Notice alleges violation of 49 C.F.R. 9 195.4.12, failure maintain records to show\ninspection of the surface condition on or adjacent to each right-of-way and crossing under navigable\nwaters at least 26 times each calendar year.\nUnder 49 C.F.R. 9 190.215, Respondent has a right to petition for reconsideration of this Final\nOrder. The petition must be received within 20 days of Respondent's receipt of this Final Order and\nmust contain a brief statement of the issue(s). The filing of the petition automatically stays the\npayment of any civil penalty assessed. All other terms of the order, including any required corrective\naction, shall remain in full effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon receipt.\nFailure to comply with this Final Order may result in the assessment of civil penalties of up to\n$100,000 per violation per day, or in the referral of the case for judicial enforcement.\nAPR 3 0 2Lst\nDate Issued\n& ~ssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":13749}