{"operation":"document","citation":"CPF 520075010M","title":"MERIT ENERGY COMPANY — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2007-02-16","effective_on":null,"summary":"CLOSED notice of amendment citing 195.408(a), 195.408(b)(2), 195.408(b)(3), 195.408(b)(4), 195.420(a), 195.420(b), 195.420(c), 195.555, 195.567(c), 195.569, 195.571, 195.573(a)(2), 195.573(c), 195.573(e), 195.575, 195.577, 195.579(a), 195.579(c), 195.581, 195.585(a), 195.585(b), 195.587, 195.589.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075010m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075010m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075010m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520075010M","body":"Notice of Amendment involving MERIT ENERGY COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.408(a),  195.408(b)(2),  195.408(b)(3),  195.408(b)(4),  195.420(a),  195.420(b),  195.420(c),  195.555,  195.567(c),  195.569,  195.571,  195.573(a)(2),  195.573(c),  195.573(e),  195.575,  195.577,  195.579(a),  195.579(c),  195.581,  195.585(a),  195.585(b),  195.587,  195.589. The case was opened on 2007-02-16 and is reported as closed as of 2007-08-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520075010M_operator response to notice letter_06072007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075010M/520075010M_operator%20response%20to%20notice%20letter_06072007.pdf\n\nMerit 5-2007-5010M  Extension Granted 4-10-07.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075010M/Merit%205-2007-5010M%20%20Extension%20Granted%204-10-07.pdf\n\nmerit 5-2007-5010m  extension granted 4-10-07_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075010M/merit%205-2007-5010m%20%20extension%20granted%204-10-07_text.pdf\n\nMerit 5-2007-5010M NOA 2-16-07.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075010M/Merit%205-2007-5010M%20NOA%202-16-07.pdf\n\nmerit 5-2007-5010m noa 2-16-07_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075010M/merit%205-2007-5010m%20noa%202-16-07_text.pdf\n\nmerit 5-2007-5010m noa 2-16-07_text.pdf\n\nO\nu. s. Department\nof Transportation\nPipeline and\nHazardous Materials Safety\nAdministration\n12300 W Dakota Ave, Suite 110\nLakewood, CO 80228\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT RE UESTED\nFebruary 16, 2007\nMr. Tod Flott\nVP, Northern Division\nMerit Energy Company\n13727 Noel Road, Suite 500\nDallas, TX 75240-5240\nSENT TO COMPLIANCE REGISTRY\nHardcopy Electronicallv~\n¹ of Copiesl I Date ~tet 7\nCPF 5-2007-5010M\nDear Mr. Flott:\nOn October 10-13, 2006, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your\nprocedures for Bairoil CO2 Pipeline in Bairoil, Wyoming\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nMerit Energy Company's procedures and are described below:\n$195. 402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual 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\ninitial operations of a pipeline commence, and appropriate parts shall be kept\nat locations where operations and maintenance activities are conducted.\n$195. 408 Communications.\n(a) Each operator must have a communication system to provide for the\ntransmission of information needed for the safe operation of its pipeline system.\n\n\n\nAt the time of the inspection, the operator did not have procedures requiring a communication\nsystem to provide for the transmission of information needed for the safe operation of the\npipeline system.\n$195. 408 Communications.\n(b) The communication system required by paragraph (a) of this section must, as\na minimum, include means for:\n(2) Receiving notices from operator personnel, the public, and public authorities\nof abnormal or emergency conditions and sending this information to appropriate\npersonnel or government agencies for corrective action;\nAt the time of the inspection, the operator did not have procedures requiring the operator to\nreceive notices from operator personnel, the public, and public authorities of abnormal or\nemergency conditions and to send this information to appropriate personnel or government\nagencies for corrective action.\n3. )195. 408 Communications.\n(b) The communication system required by paragraph (a) of this section must, as\na minimum, include means for:\n(3) Conducting two-way vocal communication between a control center and the\nscene of abnormal operations and emergencies;\nAt the time of the inspection, the operator did not have procedures requiring the operator to\nhave a communications system that allows conducting two-way vocal communication between\na control center and the scene of abnormal opera1ions and emergencies.\n4. $195. 408 Communications.\n(b) The communication system required by paragraph (a) of this section must, as\na minimum, include means for:\n(4) Providing communication with fire, police, and other public officials during\nemergency conditions, including a natural disaster.\nAt the time of the inspection, the operator did not have procedures requiring the operator to\nprovide communication with fire, police, and other public officials during emergency\nconditions, including natural disasters.\n5. $195. 420 Valve maintenance.\n(a) Each operator shall maintain each valve that is necessary for the safe\noperation of its pipeline systems in good working order at all times.\nAt the time of the inspection, the operator did not have procedures requiring each valve that is\nnecessary for the safe operation of its pipeline systems to be maintained in good working order\nat all times.\n\n\n\n6. $195. 420 Valve maintenance.\n(b) Each operator shall, at intervals not exceeding 7 1/2 months, but at least twice\neach calendar year, inspect each mainline valve to determine that it is functioning\nproperly.\nAt the time of the inspect&on, the operator did not have procedures requiring valve inspection\nintervals not exceeding 7 1/2 months, but at least twice each calendar year, and that each\nmainline valve be inspected to determine that it is functioning properly.\n7. $195. 420 Valve maintenance.\n(b) Each operator shall provide protection for each valve from unauthorized\noperation and from vandalism.\nAt the time of the inspection, the operator did not have procedures requiring protection for\neach valve from unauthorized operation and from vandalism\n8. $195. 555 What are the qualifications fair supervisors?\nYou must require and verify that supervisors maintain a thorough knowledge of\nthat portion of the corrosion control priocedures established under Sec.\n195. 402(c)(3) for which they are responsible for insuring compliance.\nAt the time of the inspection, the operator did not have procedures requiring supervisors to\nmaintain a thorough knowledge of that portion of the corrosion control procedures established\nunder Sec 195. 402(c)(3) for which they are responsible for insuring compliance.\n9. $195. 567 Which pipelines must have test leads and what must I do to install and\nmaintain the leads?\n(c) Maintenance. You must maintain the test lead wires in a condition that\nenables you to obtain electrical measurements to determine whether cathodic\nprotection complies with Sec. 195. 571.\nAt the time of the inspection, the operator did not have procedures requiring the company to\nmaintain the test lead wires\n10. $195. 569 Do I have to examine exposed portions of buried pipelines?\nWhenever you have knowledge that any portion of a buried pipeline is exposed,\nyou must examine the exposed portion for evidence of external corrosion if the\npipe is bare, or if the coating is deteriorated. If you find external corrosion\nrequiring corrective action under Sec. 195. 5S5, you must investigate\ncircumferentially and longitudinally beyond the exposed portion (by visual\nexamination, indirect method, or both') to determine whether additiona] corrosion\nrequiring remedial action exists in the vicinity of the exposed portion.\n\n\n\nAt the time of the inspection, the operator did not have procedures requiring examination of\nexposed portions of a buried pipeline.\n11. $195. 571 What criteria must I use to determine the adequacy of cathodic\nprotection?\nCathodic protection required by this subpart must comply with one or more of\nthe applicable criteria and other considerations for cathodic protection contained\nin paragraphs 6. 2 and 6. 3 of NACK Standard RP0169-96 (incorporated by\nreference, see Sec. 195. 3).\nAt the time of the inspection, the operator did not have procedures requiring the pipeline's\ncathodic protection comply with one or more of the applicable criteria and other considerations\nfor cathodic protection contained in paragraphs 6 2 and 6. 3 of NACE Standard RP0169-96.\n12. $195. 573 What must I do to monitor external corrosion control?\na) Protected pipelines. You must do the following to determine whether cathodic\nprotection required by this subpart complies with Sec. 195. 571:\n(2) Identify before December 29, 2003 or not more than 2 years after cathodic\nprotection is installed, whichever comes later, the circumstances in which a close-\ninterval survey or comparable technology is practicable and necessary to\naccomplish the objectives of paragraph 10. 1. 1. 3 of NACE Standard RP0169-96\n(incorporated by reference, see Sec. 195. 3).\nAt the time of the inspection, the operator did not have procedures requiring assessment of the\ncircumstances in which a close-interval survey or comparable technology is practicable and\nnecessary to accomplish the objectives of paragraph 10, 1. 1. 3 of NACE Standard RP0169-96.\n13. $195. 573 What must I do to monitor external corrosion control?\nc) Rectifiers and other devices. You must electrically check for proper\nperformance each device in the first column at the frequency stated in the second\ncolumn.\nDevice\nRectifier. . . . . . . . . . .\nReverse current switch\nDiode\nInterference bond whose failure would\njeopardize structural protection\nCheck frequency\nAt least six times each calendar\nyear, but with intervals not\nexceeding 2 /i months\nOther interference bond . . . . . . . . . . . . . . . . . . . At least once each calendar year,\nbut with intervals not exceeding\n15 months.\n\n\n\nAt the time of the inspection, the operator did not have procedures requiring interference bond\nwhose failure would jeopardize structural protection (critical bonds) be inspected six times\neach calendar year, but at intervals not exceeding 2 '/2 months.\n14. $195. 573 What must I do to monitor external corrosion control?\n(e) Corrective action. You must correct any identified deficiency in corrosion\ncontrol as required by Sec. 195. 401(b). However, if the deficiency involves a\npipeline in an integrity management program under Sec. 195. 452, you must\ncorrect the deficiency as required by Sec. 195. 452(h).\nAt the time of the inspection, the operator did not have procedures requiring the operator to\ncorrect any identified deficiency in corrosion control\n15. $195. 575 Which facilities must I electrically isolate and what inspections, tests,\nand safeguards are required?\n(a) You must electrically isolate each buried or submerged pipeline from other\nmetallic structures, unless you electrically interconnect and cathodically protect\nthe pipeline and the other structures as a single unit.\n(b) You must install one or more insulating devices where electrical isolation of a\nportion of a pipeline is necessary to facilitate the application of corrosion control.\n(c) You must inspect and electrically test each electrical isolation to assure the\nisolation is adequate.\n(d) If you install an insulating device in an area where a combustible atmosphere\nis reasonable to foresee, you must take precautions to prevent arcing.\n(e) If a pipeline is in close proximity to electrical transmission tower footings,\nground cables, or counterpoise, or in other areas where it is reasonable to foresee\nfault currents or an unusual risk of lightning, you must protect the pipeline\nagainst damage from fault currents or lightning and take protective measures at\ninsulating devices.\nAt the time of the inspection, the operator did not have procedures requiring electrical isolation\nof applicable pipeline facilities and the inspections, tests, and safeguards required to insure\nelectrical isolation of the pipeline.\n16. $195. 577 What must I do to alleviate interference currents'?\n(a) For pipelines exposed to stray currents, you must have a program to identify,\ntest for, and minimize the detrimental effects of such currents.\n(b) You must design and install each impressed current or galvanic anode system\nto minimize any adverse effects on existing adjacent metallic structures.\nAt the time of the inspection, the operator did not have procedures for alleviating interference\ncurrents.\n17. $195. 579 What must I do to mitigate internal corrosion?\n\n\n\n(a) General. If you transport any hazardous liquid or carbon dioxide that would\ncorrode the pipeline, you must investigate the corrosive effect of the hazardous\nliquid or carbon dioxide on the pipeline and take adequate steps to mitigate\ninternal corrosion.\nAt the time of the inspection, the operator did not have procedures to investigate the corrosive\neffect of carbon dioxide on the pipeline and to take adequate steps to mitigate any internal\ncorrosion discovered.\n1S. $195. 579 What must I do to mitigate internal corrosion?\nc) Removing pipe. Whenever you remove pipe from a pipeline, you must inspect\nthe internal surface of the pipe for evidence of corrosion. If you find internal\ncorrosion requiring corrective action under Sec. 195. 5S5, you must investigate\ncircumferentially and longitudinally beyond the removed pipe (by visual\nexamination, indirect method, or both) to determine whether additional corrosion\nrequiring remedial action exists in the vicinity of the removed pipe.\nAt the time of the inspection, the operator did not have procedures requiring the inspection of\nthe internal surface for evidence of corrosion whenever pipe is removed from a pipeline.\n19. $195. 5S1 Which pipelines must I protect against atmospheric corrosion and what\ncoating material may I use?\n(a) You must clean and coat each pipeline or portion of pipeline that is exposed to\nthe atmosphere, except pipelines under paragraph (c) of this section.\n(b) Coating material must be suitable for the prevention of atmospheric\ncorrosion.\n(c) Except portions of pipelines in offshore splash zones or soil-to-air interfaces,\nyou need not protect against atmospheric corrosion any pipeline for which you\ndemonstrate by test, investigation, or experience appropriate to the environment\nof the pipeline that corrosion will-\n(1) Only be a light surface oxide; or\n(2) Not affect the safe operation of the pipeline before the next scheduled\ninspection.\nAt the time of the inspection, the operator did not have procedures stating the criteria to\nidentify which pipelines will be protected against atmospheric corrosion and the coating\nmaterial to be used.\n20. $195. 5S5 What must I do to correct corroded pipe?\n(a) General corrosion. If you find pipe so generally corroded that the remaining\nwall thickness is less than that required for the maximum operating pressure of the\npipeline, you must replace the pipe. However, you need not replace the pipe if you-\n(1) Reduce the maximum operating pressure commensurate with the strength of\nthe pipe needed for serviceability based on actual remaining wall thickness; or\n\n\n\n(2) Repair the pipe by a method that reliable engineering tests and analyses show\ncan permanently restore the serviceability of the pipe.\nAt the time of the inspection, the operator did not have procedures outhning the action to be\ntaken to correct generally corroded pipe\n21. $195. 585 What must I do to correct corroded pipe?\n(b) Localized corrosion pitting. If you find pipe that has localized corrosion\npitting to a degree that leakage might result, you must replace or repair the pipe,\nunless you reduce the maximum operating pressure commensurate with the\nstrength of the pipe based on actual remaining wall thickness in the pits.\nAt the time of the inspection, the operator dhd not have procedures outlining the action to be\ntaken to correct pipe with localized corrosion.\n22. $195. 587 What methods are available to determine the strength of corroded pipe?\nUnder Sec. 195. 585, you may use the procedure in ASME B31G, \"Manual for\nDetermining the Remaining Strength of Corroded Pipelines, \" or the procedure\ndeveloped by AGA/Battelle, \"A Modified Criterion for Evaluating the Remaining\nStrength of Corroded Pipe (with RSTRENG disk), \" to determine the strength of\ncorroded pipe based on actual remaining wall thickness. These procedures apply\nto corroded regions that do not penetrate the pipe wall, subject to the limitations\nset out in the respective procedures.\nAt the time of the inspection, the operator did not have procedures to determine the strength of\ncorroded pipe.\n24. $195. 589 What corrosion control information do I have to maintain?\n(a) You must maintain current records or maps to show the location of—\n(1) Cathodically protected pipelines;\n(2) Cathodic protection facilities, including galvanic anodes, installed after\nJanuary 28, 2002; and\n(3) Neighboring structures bonded to cathodic protection systems.\n(b) Records or maps showing a stated number of anodes, installed in a stated\nmanner or spacing, need not show specific distances to each buried anode.\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by this\nsubpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that corrosion requiring control measures does not exist. You must\nretain these records for at least 5 years, except that records related to Secs.\n195. 569, 195. 573(a) and (b), and 195. 579(b)(3) and (c) must be retained for as long\nas the pipeline remains in service.\nAt the time of the inspection, the operator did not have procedures outlining the retention of\ncorrosion control information and records.\n\n\n\nRes onse to this Notice\nThis Notice is provided pursuant to 49 C. F. R. $ 190. 237 Enclosed as part of this Notice is a\ndocument entitled Response Options for Pipeline Operators in Compliance ProceeCkngs\nPlease refer to the Notice of Amendment portion of this document and note the response\noptions. Failure to respond within 30 days of receipt of this Notice will be deemed a waiver of\nyour right to contest the allegations set forth above and will authorize the Associate\nAdministrator for Pipeline Safety, without further notice, to find facts as alleged in this Notice\nand to issue an Order Directing Amendment.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the inadequacies\n(49 C. F. R. $ 190. 237). If you are not contesting this Notice, we propose that you submit your\namended procedures to my office within 30 days of receipt of this Notice. This period may be\nextended by written request for good cause. Once the inadequacies identified herein have been\naddressed in your amended procedures, this enforcement action will be closed.\nIn correspondence concerning this matter, please refer to CPF 5-2007-5010M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure' Response Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 B. Brown (4 116814)","truncated":false,"body_characters":19399}