# COLORADO INTERSTATE GAS CO — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 520081005
- **title:** COLORADO INTERSTATE GAS CO — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2008-03-04
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.605.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-520081005.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520081005.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520081005
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520081005
**body:**

Notice of Probable Violation involving COLORADO INTERSTATE GAS CO. PHMSA's enforcement data identifies the cited regulation as 192.605. The case was opened on 2008-03-04 and is reported as closed as of 2012-06-25. Proposed civil penalty: $3,364,000. Assessed civil penalty: $2,335,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520081005_closure letter_06252012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_closure%20letter_06252012.pdf

520081005_closure letter_06252012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_closure%20letter_06252012_text.pdf

520081005_Final Order_11232009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_Final%20Order_11232009.pdf

520081005_Final Order_11232009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_Final%20Order_11232009_text.pdf

520081005_NOPV PCP PCO letter_03042008.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_NOPV%20PCP%20PCO%20letter_03042008.pdf

520081005_nopv pcp pco letter_03042008_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_nopv%20pcp%20pco%20letter_03042008_text.pdf

520081005_operator request for hearing_04032008.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520081005/520081005_operator%20request%20for%20hearing_04032008.pdf

520081005_closure letter_06252012_text.pdf

CERTIFIED MAIL – RETURN RECEIPT REQUESTED
June 25, 2012
Mr. Dwayne Burton
Vice President, Engineering / Operations
El Paso Corporation
1001 Louisiana Street
Houston, TX 77002
Mr. Kenneth Grubb
Vice President of Operations
El Paso Corporation
1001 Louisiana Street
Houston, TX 77002
Re: CPF 5-2008-1005
Dear Mr. Burton and Mr. Grubb:
On November 23, 2009, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to
Wyoming Interstate Company, Ltd. (WIC) and operated by Colorado Interstate Gas Company (CIG),
both being subsidiaries of El Paso Corporation (together or individually, “Respondents”) a Final Order in
the above-referenced case. This Order included a Compliance Order and Civil Penalty assessment.
Based on our review of the documentation you provided and confirmation of payment of the civil
penalty, it has been determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the matters
involved in this case. Thank you for your cooperation in this matter.
Thank you for your cooperation in this matter.
Sincerely,
Chris Hoidal,
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 P. Katchmar

520081005_nopv pcp pco letter_03042008_text.pdf

U. S. Department
of Transportation
Plpelline and
Hmardous Materlalls Safelly
Administration
12300 W Dakota Ave, Suite 110
Lakewood, CO 80228
' ll
XOTlCK OF PROBABLK VlOLATIOX
PROPOSKB ClV11 PENALTY
886I
PROP()SKO COMPLlAXCK O~KR
March 4, 2008
Mr. Thomas P. Morgan
Vice President of Operations,
Western Pipeline Group
Colorado Interstate Gas
2 North Nevada Avenue
Colorado Springs, CO 80903
Mr. Daniel B. Martin
Senior Vice President of Operations
El Paso Corporation
1001 Louisiana Street
Houston, TX 77002
CPF 5-2008-I005
Gentlemen:
On November 11, 2006, a 36-inch gas transmission pipeline (" Line 124A") owned by Wyoming
Interstate Company, Ltd. ("WIC") and operated by Colorado Interstate Gas Company ("CIG"),
both being subsidiaries of El Paso Corporation (collectively, "El Paso" ), was struck and
ruptured by a bulldozer during the construction of a new pipeline running parallel to Line 124A.
The bulldozer operator, employed by Associated Pipeline, LLC (" Associated" ), was killed in the
ensuing explosion and fire.
The new pipehne was being constructed by Rockies Express Pipeline, LLC ("REX"), as part of
the construction of a new 328-mile interstate gas transmission pipeline running from
Greasewood, Colorado, to the El Paso Cheyenne Hub approximately 15 miles south of



Cheyenne, Wyoming ("REX Project" ). The accident took place on Spread 4 of phase two of the
prospect, approximately ten (10) miles south of Cheyenne, Wyoming, and five (5) miles west of
I-25. A representative of the Pipehne and Hazardous Materials Safety Administration
("PHMSA"), pursuant to Chapter 601 of 49 United States Code, conducted an investigation into
the cause of the accident During the course of the investigation, appropriate El Paso manuals
and records were reviewed in detail to determine whether all applicable operation and
maintenance procedures were in place, whether they were adequate under 49 C. F. R. Part 192 to
ensure safety, whether they were being followed at the time of the November 11, 2006 accident.
As a result of the investigation, it appears that you have committed the following probable
violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items
inspected and the probable violations are:
$192. 605 Procedural manual for operations, maintenance, and emergencies
Each operator shall include the following in its operating and maintenance plan:
(a) General. Each operator shall prepare and follow for each pipeline, a manual
of written procedures for conducting operations and maintenance activities and
for emergency response. For transmission lines, the manual must also include
procedures for handling abnormal operations. This manual must be reviewed
and updated by the operator at intervals not exceeding 15 months, but at least
one each calendar year. This manual must be prepared before operations of a
pipeline system commence. Appropriate parts of the manual must be kept at
locations where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.
(3) Making construction records, maps, and operating history available to
appropriate operating personnel.
El Paso failed to establish and follow an adequate written program for making construction
records, maps and operating history available to appropriate operating personnel on Spread 4 of
the REX Project as required by $192 605(b)(3).
During the accident investigation, the PHMSA representative confirmed the following
information during interviews with the contract line locator and the El Paso Area Manager, An
information meeting concerning the upcoming REX construction prospect between the El Paso
Area Manager, two (2) El Paso technicians and the PSI contract line locator was held at El
Paso's Cheyenne Compressor Station on August 1, 2006. At that meeting, El Paso failed to
provide the contract line locator responsible for the temporary marking of its lines with accurate
"as-built" drawings of El Paso's underground facilities. According to PHMSA's investigation
and confirmed by El Paso's Internal Investigation, the alignment sheets produced by REX and
used by PSI at the time of the accident did not show the point of inflection (PI6) where the line
was struck. Accurate drawings, both m hard copy and electronic format, had been produced by
Page 2 of 13



El Paso and were available at the CIG Cheyenne Compressor Station but had not been provided
to PSI
The line locator was given a copy of the REX construction ahgnment sheets on which the
general location of El Paso's lines were depicted. However, the REX alignment sheets also
included a disclaimer as follows
"Mll EPOSTS ARE FOR GRAPHIC PURPOSES AND REFERENCED ENVIRONMENTAL MITIGATION/
RECLAMATION BAND 0 VL Y MILEPOSTS HAVE NO CORRELATION TO ACTUAL SURVEY STATION NUMBERS
DISCLAIMER
UNIVERSAl. ENSCO, INC MAKES NO GUARANTEE THAT THIS SURVEY OR MAP CONTAINS COMPLETE OR
CONCLUSIVE SUBSURFACE INFORMATION CONTRACTOR SHALL CONTACT THESTATE "ONE CALL" SYSTEM
PRIOR TOANYEXCAVATION"
The line locator utilized these alignment sheets to make his personal field notes so he would
know where he had already completed his locating duties. Some of the larger inflection points
of the El Paso hnes are shown on these drawings but all of them are not.
The line locator was not provided with El Paso's maps or other construction documentation that
he needed in order to accurately locate and mark the company's facilities, as required by El
Paso's own procedures. Also, the contract line locator did not request the "as-built" drawings,
maps or other construction documentation. In fact, he made the point to the PHMSA
investigator that had El Paso given him the drawings, he would not have utilized them for
locating their pipelines inasmuch as he had no faith that the El Paso as-builts would accurately
depict the location of pipelines installed so long ago.
$192. 605 Procedural manual for operations, maintenance, and emergencies
Each operator shaB. include the following in its operating and maintenance plan:
(a) General. Each operator shall prepare and foBow for each pipeBne, a manual
of written procedures for conducting operations and maintenance activities and for
emergency response. For transmission Bnes, the manual must also include
procedures for handling abnormal operations. This manual must be reviewed and
updated by the operator at intervals not exceeding 15 months, but at least one each
calendar year. This manual must be prepared before operations of a pipeline
system commence. Appropriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.
(1) Operating, maintaining, and repairing the pipeline in accordance with each of
the requirements of this subpart and Subpart M of this part.
Page 3 of 13



(a) Except for pipehnes hsted in paragraphs (d) and (e) of this section, each
operator of a buried pipeline shall carry out in accordance with this section a
written program to prevent damage to that pipehne by excavation activities. For
the purpose of this section, "excavation activities" include excavation, blasting,
boring, tunnehng, bacMIhng, the removal of above ground structures by either
explosive or mechanical means, and other earth moving operations. An operator
may perform any of the duties r equired by paragraph (b) of this section through
participation in a pubhc service program, such as a "one-calp' system, but such
participation does not relieve the operator of responsibility for compliance with this
section. . .
(c) The damage prevention program required by paragraph (a) of this section must,
at a minimum. . .
(4) If the operator has buried pipehnes in the area of excavation activity, provide
for actual notification of persons who give notice of their intent to excavate of the
type of temporary marking to be provided and how to identify the markings.
El Paso failed to follow its procedures for informing REX and Associated of "the requirements
of the encroachment and crossing policies and procedures. " These procedures are described in
El Paso Corporation, Pipeline Operating Procedures Manual, Revision Date: 9/24/2006, Section
502 Safety and Accident Prevention — Encroachment and Crossings. Specifically, subsection
4(b) of Section 502 of the El Paso manual sets forth procedures for ensuring that excavators are
informed of El Paso's excavation policies. It states:
"b Company Information to Excavators Excavators who give notice of the intent to
excavate, when Company facilities are in the area of excavation activity, shall be
advised, as follows
i Excavations shall not be made on Company's right-of-way except in the presence of a
designated Company field representative The excavator shall be advised as to how and
when the facilities will be marked. ,
ii The designated Company field representative shall inform the excavator of this
procedure "
El Paso failed to follow its procedures for communicating with the excavator as to how and
when El Paso's facilities would be marked, and failed to ensure that all excavation within El
Paso's right-of-way would take place only in the presence of a designated El Paso
representative The contract line locator stated that he was working approximately one and one
half miles to the east of the accident location locating incumbent pipelines at the time of the
rupture.
During the investigation, the PHMSA representative interviewed associated personnel as well as
the REX inspectors overseeing Associated's work. From these interviews, it is apparent that the
REX and Associated personnel interviewed understood that El Paso's lines would be marked
per the modified procedures developed by the contract line locator and not in accordance with
El Paso's written procedures.
Page 4 of 13



(a) General. Each operator shaH prepare and follow for each pipehne, a manual
of written procedures for conducting operations and maintenance activities and for
emergency I esponse. For transmission hnes, the manual must also include
procedures for handling abnormal operations. Yhis manual must be reviewed and
updated by the operator at intervals not exceeding 15 months, but at least one each
calendar year. Yhis manual must be prepared before operations of a pipeline
system commence. Appr opriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. Yhe manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.
(1) Operating, maintaining, and repairing the pipeHne in accordance with each of
the requirements of this subpart and Subpart M of this part.
$192. 614 Bamage prevention program.
(a) Except for pipehnes hsted in paragraphs (d) and (e) of this section, each
operator of a buried pipehne shaH ca~ry out in accordance with this section a
written program to prevent damage to that pipehne by excavation activities. For
the purpose of this section, "excavation activities" include excavation, blasting,
boring, tunnehng, backfiHing, the removal of above ground structures by either
explosive or mechanical means, and other earth moving operations. An operator
may perform any of the duties required by paragraph (b) of this section through
participation in a pubHc service program, such as a "one-call" system, but such
participation does not relieve the operator of responsibiHty for compliance with this
section. . .
(c) Yhe damage prevention p~ogram required by paragraph (a) of this section must,
at a mmHHum. . .
(4) If the operator has buried pipelines in the area of excavation activity, provide
for actual notification of persons who give notice of their intent to excavate of the
type of temporary marking to be provided and how to identify the markings.
El Paso's written procedure, "Pipeline Operating Procedures Manual, Revision Date: 9/24/2006,
Section 502 Safety and Accident Prevention — Encroachment and Crossings, Subsection 6—
Excavation Requirements, subsection f — Crossing and Encroachment Inspection, " sets forth the
company's requirement that each company location develop critena and processes for
inspecting and evaluating the locating and marking of its hnes by El Paso personnel and require
close contact with excavators. Subsection 6 states:
Page 5 of 13



"6 Excavation Requirements . .
f Crossing and Encroachment Inspection
Each location shall develop criteria to establish inspections required to maintain the
integrity of the pipeline .
Items to consider during an inspection shall include
Crossing Agreements/Approved Drawings
ii Type and duration of excavation involved
iii Proximity to pipeline facilities
iv Type of excavating equipment involved
"
vii Past experience with the excavator involved .
Field contact with the excavator shall be maintained during the excavation to avoid
potential problems and to promptly correct any problems that arise "
El Paso failed to develop appropriate criteria for surveillance inspections required to maintain
the integrity of its pipeline for Spread 4 of the REX Project. Specifically, El Paso failed to
develop project — specific criteria appropriate for the conditions involved in the REX Project,
considering the factors listed in Subsection 6(f) of Section 502.
$192. 605 Procedural manual for operations, maintenance, and emergencies
Each operator shall include the following in its operating and maintenance plan:
(a) General. Each operator shall prepare and follow for each pipeline, a manual
of written procedures for conducting operations and maintenance activities and for
emergency response. Fox transmission hnes, the manual must also include
procedures for handhng abnormal operations. This manual must be reviewed and
updated by the operator at intervals not exceeding 15 months, but at least one each
calendar year. This manual must be prepared before operations of a pipeline
system commence. Appropriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.
(1) Operating, maintaining, and repairing the pipeline in accordance with each of
the requirements of this subpart and Subpart M of thiis part.
$192. 613 Continuing Surveillance.
(a) Each operator shall have a procedure for continuing surveillance of its facilities
to determine and take appropriate action concerning changes in class location,
failures, leakage history, corrosion, substantial changes in cathodic protection
requirements, and other unusual operating and maintenance conditions.
El Paso's written procedure, "Pipeline Operating Procedures Manual, Revision Date: 9/24/2006,
Section 502 Safety and Accident Prevention — Encroachment and Crossings, Subsection 4—
Page 6 of 13



Operator Responsibilities, " sets forth the company's procedures for determining the proper level
of surveillance and monitoring of construction activity and marking of lines. It states:
"4 Operator Responsibilities The Area Manager shall ensure that persons vvho are
engaged in excavation activities near Company pipeline facilities are informed of the
requirements of the encroachment and crossing policies and procedures Field
Supervision shall be responsible and manage locating the pipeline(s) as necessary and
shall determine the level of monitoring for the protect~on and safety of the pipeline
El Paso's Area Manager failed to determine the proper level of monitoring that was needed to
protect the company's pipeline and excavation personnel. During the PHMSA investigator's
interview, the Area Manager stated that he instructed the PSI contract line locator, who had been
through El Paso's own operator qualification program, to rely upon his own personal
knowledge, experience, and visual indications on the ground to determine when he needed to
use his electronic pipeline locator to actually locate the pipeline and how frequently to mark the
line. Even though El Paso personnel stated that they qualified the contract line locator to
perform the covered task of locating El Paso's incumbent pipelines, the locator failed to locate
and mark three points of inflection (PI5, PI6, and PI7) where Line 124A deviated from its
normally straight course. It was at one of these points of inflection (PI6) where the accident
occurred and the bull dozer operator was killed.
Further, during the interview with the El Paso Area Manager, it became apparent that he was not
aware that the contract locator had taken it upon himself to create his own procedures for
locating and marking El Paso's incumbent pipelines. These procedures were inconsistent with
El Paso's detailed procedures.
$192. 605 Procedural manual for operations, maintenance, and emergencies
Each operator shall include the foBowing in its operating and maintenance plan:
(a) General. Each operator shall prepare and follow for each pipeline, a manual
of written procedures for conducting operations and maintenance activities and for
emergency response. For transmission lines, the manual must also include
procedures for handling abnormal operations. This manual must be reviewed and
updated by the operato~ at intervals not exceeding 15 months, but at least one each
calendar year. This manual must be prepared before operations of a pipeline
system commence. Appropriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.
(1) Operating, maintaining, and repairing the pipeline in accordance with each of
the requirements of this subpart and Subpart M of this part.
Page 7 of 13



(a) Except for pipehnes hsted in paragraphs (d) and (e) of this section, each
operator of a buried pipeline shall carry out in accordance wltll tllls sectioii a
written program to prevent damage to that pipehne by excavation activities. For
the purpose of this sectjion, "excavation activities" include excavation, blasting,
boring, tunnehng, backfilhng, the removal of above ground structures by either
explosive or mechanical means, and othe~ earth moving operations. An operator
may perform any of the duties required by paragraph (b) of this section through
participation in a pubhc service program, such as a "one-caH" system, but such
participation does not reheve the operator of responsibihty for comphance with this
section. . .
(c) The damage prevention program required by paragraph (a) of this section must,
at a minimum. . .
(5) Provide for temporary marking of buried pipelines in the area of excavation
activity before, as far as practical, the activity begins.
El Paso failed to follow the procedures in Section 304, Subsection 7, of its written damage
prevention program during the construction activity associated with Spread 4 of the REX
Project by (1) failing to use an electronic hne locator to identify the actual location of Line
124A, (2) faihng to verify the exact lengths and segments of pipeline to be marked, (3) failing to
deteiTnine where to place proper signs or stakes, (4) failing to place new temporary markers
over the line, and, most importantly, (5) failing to place markers at intervals "wherever
necessary to identify the location of the pipeline to reduce the possibility of damage or
interference. "
El Paso's written procedure, "Pipeline Operating Procedures Manual, Revision Date. 9/24/2006,
Section 304, Pipeline, Locating and Marking; Subsection 7, " states:
"b Subsection 7 "PROCEDURE
71 Upon arriving at the work site, verify the exact length and segment of pipeline to be
marked
7 2 Determine where to place signs, flags or stakes. .
7 4 Use the pipe locator to locate the underground pipeline(s)
7. 5 Use a post driver or hammer to place wooden stakes, steel posts or fiberglass
markers directly above the pipeline(s) at an appropriate depth (so as not to hit the
pipe)
78 Marking Buried Pipelines Except as provided in the 'Exceptions for buried
pzpelines' in this sectzon, a pipelzne warnz'ng marker must be placed and maintazned as
close as practical over each buried pzpeline
7 8 2 wherever necessary to identify the location of the pipeline to reduce the possibility
of damage or interference "
The PHMSA investigator arrived at the rupture location just after the natural gas fire from the
release went out. No temporary pipeline markers were visible in the area between the
Page 8 of 13



permanent marker at the dirt road to the west of the rupture and the permanent line marker in the
fence line to the east of the rupture. The temporary markers normally utilized by the contract
line locator were standard yellow flags on metal wires. Even after the fire, the metal wires
would have remained had the temporary markers been installed.
During the initial interview with the contract line locator that occurred on the evening of the day
of the rupture, the contract line locator stated that he had been through the area where the
rupture occurred on 11/7/2006. He stated that he remembered that he had located the line twice
between the two permanent markers but he could not remember exactly where. Because of the
statements made by the contract locator and because there was no evidence that temporary
markers were installed in the area between the permanent markers, the PHMSA investigator
deduced that the contract line locator thought the WIC line was parallel to the new construction
right-of-way. Per the contract locator's modified line locating procedures, he apparently
believed that he didn't need to use his electronic locator to continuously locate the line between
the two permanent line markers.
$192. 605 Procedural manual for operations, maintenance, and emergencies
Each operator shall include the following in its operating and maintenance plan:
(a) General. Each operator shall prepare and follow for each pipeline, a manual
of written procedures for conducting operations and maintenance activities and for
emergency response. For transmission lines, the manual must also include
procedures for handhng abnormal operations. This manual must be reviewed and
updated by the operato~ at intervals not exceeding 15 months, but at least one each
calenda~ year. This manual must be prepared before operations of a pipeline
system commence. Appropriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.
(1) Operating, maintaining, and repainng the pipehne in accordance with each of
the requirements of this subpart and Subpart M of this part.
(a) Each operator shall have a procedure for continuing surveillance of its facilities
to determine and take appropriate action concerning changes in class location,
failures, leakage history, corrosion, substantial changes in cathodic protection
requirements, and other unusual operating and maintenance conditions.
El Paso's written procedure, "Pipeline Operating Procedures Manual, Revision Date: 9/24/2006,
Section 502 Safety and Accident Prevention — Encroachment and Crossings, " sets forth
procedures to require all marking jobs to be evaluated based upon the criteria set forth above.
Subsection 6(f) states:
Page 9 of 13



"Based on criteria developed, each markinggob shall be evaluated, and where appropriate,
an inspection schedule shall be established for an excavation project . A record of the
inspections shaII be maintained "
El Paso failed to evaluate each marking job performed by PSI in accordance with the
company's inspection criteria and to maintain records of all such inspections. PHMSA's
investigation did not reveal any documentation of evaluations of "marking jobs" by the
contract line locator for the duration of the REX construction on Spread 4.
(a) General. Each operator shall prepare and follow for each pipeline, a manual
of written procedures for conducting operations and maintenance activities and for
emergency response. For transmission lines, the manual must also include
procedures for handling abnormal operations. This manual must be reviewed and
updated by the operator at intervals not exceeding 15 months, but at least one each
calendar year. This manual must be prepared before operations of a pipeline
system commence. Appropriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(b) Maintenance and normal operations. The manu. al required by paragraph (a)
of this section must include pxocedures for the foHowing, if apphcable, to provide
safety during maintenance and operations.
(1) Operating, maintaining, and repairing the pipeHne in accordance with each of
the requirements of this subpart and Subpart M of this part.
(a) Each operator shaH have a procedure for continuing surveHlance of its facihties
to determine and take appropriate action concermng changes in class location,
failures, leakage history, corrosion, substantial changes in cathodic protection
requirements, and other unusual operating and maintenance conditions.
El Paso failed to take "appropriate action" as required by (192. 613, to deal with unusual
operating conditions involving construction of the REX Project. Beginning as early as
August 3, 2006 and continuing until the rupture on November 11, 2006, there were recurring
encroachments of El Paso's right-of-way by REX's construction crew. According to the line
locator's weekly reports there were at least 12 incidents between August 3, 2006, and the date
of the failure where the contract line locator had identified unauthorized encroachments by
Associated onto El Paso's right-of-way. In each instance, the contract line locator had required
the contractor to stay off the right-of-way or stop work until the hne could be marked. The El
Paso Area Manager stated that he received the contract line locator's daily reports in a weekly
Page 10 of 13



e-mail Therefore, he was aware of the repeated unauthorized encroachments over El Paso's
pipelines but failed to take appropriate action to reduce confusion, improve coordination, and
protect persons working in the vicinity of such unusual operating conditions,
Each operator shaH include the following in its operating and maintenance plan:
(a) General. Each operator shaH prepare and follow for each pipeline, a manual of
written procedures for conducting operations and maintenance activities and for
emergency response. For transmission hnes, the manual must also include
procedures for handling abnormal operations. This manual must be reviewed and
updated by the operator at intervals not exceeding 15 months, but at least one each
calendar year. This manual must be prepared before operations of a pipeHne
system commence. Appropriate parts of the manual must be kept at locations
where operations and maintenance activities are conducted.
(c) Abnormal operation. For transmission lines, the manual required by
paragraph (a) of this section must include procedures for the following to provide
safety when operating design limits have been exceeded:
(I) Responding to, investigating, and cojrrecting the cause of:
(v) Any other fojreseeable malfunction of a component, deviation from normal
operation, or personnel error which may result in a hazard to persons or property.
El Paso failed to establish and follow procedures for internal compliance to ensure that its
personnel were adhering to the company's policies and procedures to respond to abnormal
operations, specifically deviation from normal operation and personnel error to prevent
excavation damage to the company's facilities El Paso's Area Manager had knowledge of
repeated encroachments onto their facihties by REX contractors on Spread 4 of the project.
However, at no time did the Area Manager respond to, investigate, or correct the cause of the
repeated encroachments.
Pro osed Civil Penalt
Under 49 United States Code, $ 60122, you are subject to a civil penalty not to exceed $100, 000
for each violation for each day the violations persists up to a maximum of $1, 000, 000 for any
related series of violations. The Compliance Officer has reviewed the circumstances and
supporting documentation involved in the above probable violation(s) and has recommended
that you be preliminarily assessed a civil penalty of $3, 364, 000 as follows;
Item number ~Penalt
$100, 000 $35, 000
$100, 000
$1, 000, 000
Page 11 of 13



Item number ~Penalt
$100, 000
$1, 000, 000
$1, 000, 000
S 29, 000
Pro osed Cpm hance Order
With respect to items 1, 2, 3, 4, 5, 6, 7, and 8 pursuant to 49 United States Code ) 60118, the
Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order
to El Paso Corporation. Please refer to the Proposed Comphance Order, which is enclosed and
made a part of this Notice.
Res onse to this Notice
Enclosed as part of this Notice is a document entitled, "Response Options for Pipeline
Operators in Compliance Proceedings " Please refer to this document and note the response
options. Be advised that all material you submit in response to this enforcement action is
subject to being made publicly available. If you believe that any portion of your responsive
material qualifies for confidential treatment under 5 U S. C. 552(b), along with the complete
original document you must provide a second copy of the document with the portions you
believe quahfy for confidential treatment redacted and an explanation of why you believe the
redacted information qualifies for confidential treatment under 5 U. S. C. 552(b). If you do not
respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest
the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety-to
find facts as alleged in this Notice without further notice to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPP 5-2008-l005 and for each document
you submit, please provide a copy in electronic format whenever possible.
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosure Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Comphance Registry
PHP-500 P, Katchmar (0118311)
Page 12 of 13



Pursuant to 49 United States Code $ 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to El Paso a Compliance Order incorporating the
following remedial requirements to ensure the compliance of El Paso with the pipeline safety
regulations:
1. In regard to Item Number 1 of the Notice pertaining to El Paso's procedures for making
construction records, maps, and operating history available to appropriate operating
personnel, El Paso must revise their current procedures to specify that every person
required to locate any buried or otherwise not visible structure owned and/or operated by
any El Paso company must be provided the most up — to — date copy of the "as-built"
drawing of each structure that is in the vicinity of the proposed excavation. These
revised procedures must specify the person responsible for compliance with each
revision to the procedures.
2. In regard to items 2, 3, 4, 5, and 6 of the Notice, El Paso must establish and follow
written procedures for Area Managers or any other responsible manager or supervisor to
periodically review the work done by every person required to locate any buried or
otherwise not visible structure owned and/or operated by any El Paso company to ensure
applicable procedures are understood, are being followed, and are effective. For short
term projects of less than one (1) week duration or in the case of a discreet project, such
as a project confined to one or two city lots, the interval established can be one time per
year not to exceed 15 months for each person. The interval for this periodic review must
be established before each project begins and shall be conducted at the established
interval throughout each project to ensure compliance. The interval shall be selected
based on the life of the prospect but El Paso must ensure the interval estabhshed does not
portend a review of less than three (3) times per project. Each review must be
specifically and severally documented and kept for review by internal as well as external
inspectors.
If, during a periodic review, it is determined that a person is not following a procedure,
immediate written notification to PHMSA will be made detailing the specific
circumstances surrounding the particular mstance as well as El Paso's response to the
instance.
3, In regard to item 7 of the Notice, El Paso shall establish an internal procedural review
for all managers and supervisors so they will better understand El Paso's Continuing
Surveillance procedures. The procedures established shall be designed so all managers
and supervisors will better understand and be able to intervene and thereby stop
impendmg situations which may result in a hazard to persons or property.
4. In regard to item 8 of the Notice, El Paso shall establish and document a training and
evaluation program for their managerial and supervisory staff that includes possible and
actual scenarios where an emergency situation could have been avoided if someone had
stopped recurring abnormal behavior with respect to normal pipeline conditions.
El Paso shall maintain documentation of the safety improvement costs associated with fulfilling
this Compliance Order and submit the total to Director, Western Region, Pipeline and
Hazardous Materials Safety Administration. Costs shall be reported in two categories: 1) total
cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total
cost associated with replacements, additions and other changes to pipeline infrastructure.
Page 13 of 13

520081005_Final Order_11232009_text.pdf

NOV 23 2009
Mr. Thomas P. Morgan
Vice President of Operations, Western Pipeline Group
Colorado Interstate Gas Company
2 North Nevada Avenue
Colorado Springs, CO 80903
Mr. Daniel B. Martin
Senior Vice President of Operations
El Paso Corporation
1001 Louisiana Street
Houston, TX 77002
Re: CPF No. 5-2008-1005
Dear Sirs:
Enclosed is the Final Order issued in the above-referenced case. It withdraws two allegations
of violation, makes findings of violation, assesses a civil penalty of $2,335,000, and specifies
actions that need to be taken by Colorado Interstate Gas Company to comply with the Federal
pipeline safety regulations. The penalty payment terms are set forth in the Final Order. When
the civil penalty has been paid and the terms of the Compliance Order completed, as determined
by the Director, Western Region, this enforcement action will be 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.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Patrick F. Carey, P.E., Director, D.O.T. Compliance Services
El Paso Corporation, 1001 Louisiana Street, Houston, TX 77002
Elizabeth B. Herdes, Esq., Managing Senior Counsel
El Paso Western Pipelines, 2 North Nevada Avenue, Colorado Springs, CO 80903
Mr. Chris Hoidal
Director, Western Region, PHMSA
CERTIFIED MAIL – RETURN RECEIPT REQUESTED [7005 0390 0005 6162 5067]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Colorado Interstate Gas Company ) CPF No. 5-2008-1005
And El Paso Corporation, )
)
)
)
Respondents. )
____________________________________)
FINAL ORDER
On November 11, 2006, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS) initiated
an investigation of the November 11, 2006 accident in Laramie County, Wyoming involving a
36-inch gas pipeline owned by Wyoming Interstate Company, Ltd. (WIC) and operated by
Colorado Interstate Gas Company (CIG), both being subsidiaries of El Paso Corporation
(together or individually,
“Respondents”). The WIC pipeline system consists of approximately
600 miles of pipeline extending from Western Wyoming to various pipeline interconnections
near Cheyenne, Wyoming. The WIC pipelin
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