DCP MIDSTREAM — Notice of Probable Violation

case documentOfficial PDF520075029_NOPV letter_08032007.pdf#

case documentOfficial PDF520075029_nopv letter_08032007_text.pdf#

520075029_final order_09082008_text.pdf, page 1Official PDFo U S Department of Transportation Pipeline and Hazardous Materials Satety Administration 1200 New Jersey Ave S E Washington DC 20590 SEP -8 2008 Mr. Brent Backes General Counsel and Vice President DCP Midstream, LLC 370 17' St. Suite 2500 , Denver, CO 80202 Re: CPF No. 5-2007-5029 Dear Mr. Backes: Enclosed is the Final Order issued to DCP Midstream LP m the above-referenced case. It makes a finding of violation and assesses a civil penalty of $23, 800 I acknowledge receipt of your wire transfers totaling $23, 800 and accept them as payment in full of the civil penalty proposed in the Notice of Probable Violation and Proposed Civil Penalty. This case is now closed. Your receipt of the Final Order constitutes service of that document under 49 C F. R. ) 190. 5. Thank you for your cooperation in this matter and prompt payment of the penalty. Sincerely, g!g/ Jeffrey D. Wiese Associate Admmistrator for Pipeline Safety Enclosure cc: Mr. Chris Hoidal, Director, Western Region, OPS CERTIFIED MAIL — RETURN RECEIPT RE UESTED#

520075029_final order_09082008_text.pdf, page 2U. S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D. C. 20590 In the Matter of DCP Midstream LP, Respondent. CPF No. 5-2007-5029 FINAL ORDER On August 8 — 11, 2005, pursuant to 49 U. S. C, ) 60117, representatives of the Pipelme and Hazardous Materials Safety Administration, Office of Pipeline Safety (OPS) conducted an on-site pipeline safety inspection of the facilities and records of DCP Midstream LP (Midstream or Respondent)' in Cheyenne Wells, Colorado. Respondent operates approximately 36 miles of 4-inch Highly Volatile Liquid (HVL) pipeline, running from the Ladder Creek helium plant southwest of Cheyenne Wells, Colorado, to the injection point at BP's HVL line at Kanarando Station, near Burlington, Colorado. As a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent, by letter dated August 3, 2007, a Notice of Probable Violation and Proposed Civil Penalty (Notice), In accordance with 49 C. F R. $ 190. 207, the Notice proposed finding that Respondent had violated 49 C. F R ) 195. 412 and assessing a civil penalty of $23, 800 for the alleged violation. Respondent did not respond to the Notice but submitted wire transfers in the amount of the proposed civil penalty, thereby waiving any further right to respond and authorizing the entry of this Final Order. FINDING OF VIOLATION Pursuant to 49 C. F. R. $ 190. 213 and 49 U. S. C. $ 60122, I hereby find that Respondent violated 49 C. F. R. Part 195, as follows: ' As of the August, 2005 PHMSA inspection, the pipehne facilities that are the subject of this Final Order were operated by Duke Energy Field Services, an entity owned by Duke Energy Corporation As of the date of this Fmal Order, such pipelme facilities are operated by DCP Midstream LP DCP Midstream LP is owned and operated by DCP Midstream LLC, an equally owned 3oint venture between Spectra Energy and ConocoPhilhps ' Respondent transferred $23, 000 by wire on September 5, 2007, and $800 on March 26, 2008#

520075029_final order_09082008_text.pdf, page 3Item 1: The Notice alleged that Respondent violated 49 C. F. R. ) 195. 412(a), which states: g 195. 412 Inspection of rights-of-way and crossings under navigable waters. (a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way. Methods of inspection include walking, driving, flying or other appropriate means of traversing the right-of-way. The Notice alleged that Respondent violated 49 C. F. R. ) 195. 412(a) by its repeated failure to comply with the three-week right-of-way mspection intervals. Specifically, the Notice alleged that at the time of the inspection, Respondent's line patrol records for the HVL line indicated that the three-week interval was exceeded three (3) times in 2003, twelve (12) times in 2004, and four (4) times in 2005. Midstream's records also indicated that the line was flown only a total of 24 times in 2003 and 12 times in 2004. Accordingly, I find that Respondent violated 49 C. F. R. $ 195. 412(a) in 2003, 2004, and 2005 by failing to inspect the said HVL line right-of-way at intervals not exceeding three weeks, but at least 26 times each calendar year. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. Having reviewed the record and considered the assessment criteria in 49 U. S. C. ) 60122, I hereby assess Respondent a civil penalty of $23, 800, which amount has already been paid in full by Respondent. The terms and conditions of this Final Order shall be effective upon receipt. SEP -8 2008 Date Issued Jeffrey D. Wiese Associate Administrator for Pipeline Safety#