{"operation":"document","citation":"CPF 520085008","title":"ALYESKA PIPELINE SERVICE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2008-04-01","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.571, 195.573(a)(1), 195.573(e), 195.579(a), 195.583.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520085008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520085008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520085008","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520085008","body":"Notice of Probable Violation involving ALYESKA PIPELINE SERVICE CO. PHMSA's enforcement data identifies the cited regulations as 195.571,  195.573(a)(1),  195.573(e),  195.579(a),  195.583. The case was opened on 2008-04-01 and is reported as closed as of 2014-01-07. Proposed civil penalty: $170,000. Assessed civil penalty: $97,745. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520085008_closure letter_01072014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520085008/520085008_closure%20letter_01072014.pdf\n\n520085008_closure letter_01072014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520085008/520085008_closure%20letter_01072014_text.pdf\n\n520085008_Compromise Agreement and Order_11162011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520085008/520085008_Compromise%20Agreement%20and%20Order_11162011.pdf\n\n520085008_Compromise Agreement and Order_11162011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520085008/520085008_Compromise%20Agreement%20and%20Order_11162011_text.pdf\n\n520085008_NOPV PCP PCO_04012008.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520085008/520085008_NOPV%20PCP%20PCO_04012008.pdf\n\n520085008_nopv pcp pco_04012008_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520085008/520085008_nopv%20pcp%20pco_04012008_text.pdf\n\n520085008_Compromise Agreement and Order_11162011_text.pdf\n\nNOV 16 2011\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matters of )\n) CPF No. 5-2006-5018\nAlyeska Pipeline Service Company, ) CPF No. 5-2007-5041\n) CPF No. 5-2008-5008\nRespondent. ) CPF No. 5-2009-5019\n____________________________________)\nCOMPROMISE AGREEMENT AND ORDER\nThe U.S. Department of Transportation, Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) and Alyeska Pipeline Service Company (Alyeska or\nRespondent) have engaged in settlement discussions regarding the resolution of the four\nenforcement actions listed above. Having concluded those discussions, PHMSA and\nAlyeska (collectively, Parties) agree that a settlement of these matters is in the best\ninterests of the Parties and the public and will avoid further administrative proceedings or\nlitigation. The Parties further agree that the entry of this Compromise Agreement and\nOrder is the most appropriate means of accomplishing that objective.\nI. Procedural History.\nA. CPF No. 5-2006-5018\nOn April 19, 2006, PHMSA issued to Alyeska a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice). Item 1 of the Notice alleged\nthat Alyeska had violated 49 C.F.R. § 195.452(h)(2) and proposed assessing the company\na civil penalty of $260,000 for that violation. Item 2 of the Notice alleged that Alyeska\nhad violated 49 C.F.R. §§ 195.452(h)(3) and (h)(4)(i)(C) and proposed assessing the\ncompany a civil penalty of $90,000 for that violation. The Notice also proposed ordering\nAlyeska to complete certain corrective actions to address both violations.\nOn April 27, 2006, Alyeska submitted a written response to the Notice and requested an\ninformal hearing. That hearing was held on January 18, 2007, with an Attorney Advisor\nfrom the Office of Chief Counsel, PHMSA, presiding.\n\n\n\nOn January 13, 2010, the Associate Administrator for Pipeline Safety, PHMSA, issued a\nFinal Order in the case. The Final Order found that Alyeska had violated 49 C.F.R.\n§ 195.452(h)(2) as alleged in Item 1 of the Notice and assessed a civil penalty of\n$173,000. The Final Order further found that Alyeska had violated 49 C.F.R.\n§§ 195.452(h)(3) and (h)(4)(i)(C) as alleged in Item 2 of the Notice and assessed a civil\npenalty of $90,000. The Final Order also ordered Alyeska to complete certain corrective\nmeasures.\nOn February 8, 2010, Alyeska submitted a Petition for Reconsideration (Petition) of the\nFinal Order. The Petition sought, among other things, reconsideration of the civil penalty\nassessed against Alyeska for Item 1. On March 1, 2010, the Associate Administrator\ndenied that part of the Petition in a Decision on Reconsideration (Decision).\nOn March 22, 2010, Alyeska made a payment of $90,000 in full satisfaction of the civil\npenalty assessed for Item 2. On April 20, 2010, Alyeska submitted, to the Director,\nPHMSA Western Region (Director), information documenting full compliance with the\ncorrective actions in the Final Order and the Decision. On July 29, 2010, Alyeska made\nanother payment of $173,000, under protest and with full reservation of rights, in full\nsatisfaction of the civil penalty assessed for Item 1.\nOn August 3, 2010, Alyeska filed a complaint in the United States District Court for the\nDistrict of Alaska, Case No. 3:10-CV-00177-JWS (Complaint). The Complaint alleged\nthat the Associate Administrator (1) had assessed Alyeska an excessive civil penalty for\nItem 1; (2) had failed to comply with the procedural requirements in 49 C.F.R.\n§ 190.213(e) in issuing his Final Order; and (3) had found Alyeska in violation of 49\nC.F.R. § 195.452(h)(2) without substantial evidence. The Complaint sought, among\nother things, the return of the $173,000 that Alyeska had paid to PHMSA for Item 1.\nOn October 20, 2011, PHMSA filed an answer (Answer) to the Complaint. The Answer\ndenied all of Alyeska’s allegations and asserted that the company had already admitted\nall of the facts necessary to affirm the Final Order.\nB. CPF 5-2007-5041\nOn November 27, 2007, PHMSA issued to Alyeska a Notice of Probable Violation,\nProposed Civil Penalty, and Proposed Compliance Order (Notice). The Notice alleged\nthat Alyeska had committed several violations of 49 C.F.R. Part 195 and proposed\nassessing the company a total civil penalty of $817,000 for those violations. The Notice\nalso proposed ordering Alyeska to complete certain corrective actions and issuing a\nwarning that the company take appropriate action to address several other probable\nviolations.\nAlyeska responded to the Notice on February 26, 2008, requesting an informal hearing.\nThat hearing was held on October 28, 2008, with an attorney from the Office of Chief\nCounsel, PHMSA, presiding.\n2\n\n\n\nC. CPF 5-2008-5008\nOn April 1, 2008, PHMSA issued to Alyeska a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice). The Notice alleged that\nAlyeska had committed several violations of 49 C.F.R. Part 195 and proposed a total civil\npenalty of $170,000 for those violations. The Notice also proposed ordering Alyeska to\ncomplete certain corrective actions to address several of those violations.\nOn May 22, 2008, Alyeska responded to the Notice and requested an informal hearing.\nThat hearing was held on October 30, 2008, with an attorney from the Office of Chief\nCounsel, PHMSA, presiding.\nD. CPF 5-2009-5019\nOn April 21, 2009, PHMSA issued to Alyeska a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice). The Notice alleged that\nAlyeska had committed two violations of 49 C.F.R. Part 195 and proposed a civil penalty\nof $43,800 for one of those violations. The Notice also proposed issuing a warning that\nthe company take appropriate corrective action to address the other probable violation.\nOn May 21, 2009, Alyeska responded to the Notice, requesting an informal hearing. That\nhearing was held on October 21, 2009, with an attorney from the Office of Chief\nCounsel, PHMSA, presiding.\nII. General Provisions.\n1. Alyeska acknowledges that the company and its pipeline system, known generally\nas the Trans-Alaska Pipeline System (TAPS), are subject to the jurisdiction of the Federal\npipeline safety laws, 49 U.S.C. 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Compromise Agreement and Order,\nAlyeska acknowledges that it received proper notice of PHMSA’s actions in CPF 5-2006-\n5018, CPF 5-2007-5041, CPF 5-2008-5008, and CPF 5-2009-5019 (collectively,\nEnforcement Actions) and that the Notices, Final Orders, and Decisions issued in the\nEnforcement Actions all state claims upon which relief may be granted pursuant to 49\nU.S.C. 60101, et seq., and the regulations and orders issued thereunder.\n2. By entry of this Compromise Agreement and Order, PHMSA neither vacates nor\nwithdraws the Final Order and Decision issued in CPF 5-2006-5018. All provisions of\nthe Final Order and Decision in CPF 5-2006-5018 shall remain in full force and effect,\nexcept as expressly modified by this Compromise Agreement and Order. Nothing in this\nCompromise Agreement and Order shall bar consideration of the findings of violation set\nforth in the Final Order and Decision in CPF 5-2006-5018 as prior offenses in any future\nPHMSA enforcement action.\n3\n\n\n\n3. Alyeska agrees to the issuance of this Compromise Agreement and Order and\nhereby waives any further procedural requirements with respect to its issuance. Alyeska\nwaives all rights to contest the adequacy of the Notices, Final Orders, and Decisions\nissued in the Enforcement Actions and the validity of this Compromise Agreement and\nOrder, including all rights to administrative or judicial hearings or appeals.\n4. This Compromise Agreement and Order constitutes the final, complete, and\nexclusive agreement and understanding between the Parties with respect to the\nEnforcement Actions and the issues embodied in this agreement. The Parties\nacknowledge that there are no representations, agreements, or understandings relating to\nthe amount or collection of any civil penalties other than those expressly contained in this\nagreement, except that the terms of this agreement may be construed by reference to any\nNotices, Final Orders, and Decisions issued in the Enforcement Actions.\n5. Nothing in this Compromise Agreement and Order affects or relieves Alyeska of\nits responsibility to comply with all applicable requirements of the Federal pipeline safety\nlaws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder.\nNothing in this agreement alters PHMSA’s right of access, entry, inspection, and\ninformation gathering, or its authority to bring any enforcement action against Alyeska\npursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder,\nor any other provision of Federal or State law.\n6. This Compromise Agreement and Order does not waive or modify any Federal,\nstate, or local laws or regulations that are applicable to Alyeska’s pipeline system. This\nagreement is not a permit or a modification of a permit under any Federal, State, or local\nlaws or regulations. Alyeska remains responsible for achieving and maintaining\ncompliance with all applicable Federal, State, and local laws, regulations and permits.\n7. This Compromise Agreement and Order does not create rights in, or grant any\ncause of action to, any person not a party to this agreement. PHMSA is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Alyeska or\nits officers, employees, or agents carrying out the work required by this agreement.\nPHMSA, its officers, employees, agents, and representatives are not liable for any cause\nof action arising from any acts or omissions of Alyeska or its contractors in carrying out\nany work required by this agreement.\n8. This Compromise Agreement and Order shall apply to and be binding on\nAlyeska, its officers, directors, employees, successors and assigns, including, but not\nlimited to, subsequent purchasers.\nIII. Finding of Violations.\n9. With respect to CPF 5-2007-5041, the Parties mutually agree, and PHMSA hereby\nfinds, that Alyeska committed the violations alleged in Items 1, 2, 3, 4, 6, 8, and 9 of the\nNotice. The Parties mutually agree, and PHMSA hereby finds that Alyeska had\ninadequate procedures as alleged in Items 5, 7, 16a, and 16b of the Notice.4\n\n\n\n10. With respect to CPF 5-2008-5008, the Parties mutually agree, and PHMSA\nhereby finds, that Alyeska committed the violations alleged in Items 1, 2, 3, 5, 6, and 7 of\nthe Notice, but that the allegation in Item 4 of the Notice should be, and hereby is,\nwithdrawn.\n11. With respect to CPF 5-2009-5019, PHMSA hereby finds that the allegation in\nItem 1 of the Notice should be, and hereby is, withdrawn.\n12. The findings of violation in Paragraphs 9, 10, and 11 will be considered prior\noffenses in any subsequent enforcement actions taken against Alyeska.\nIV. Civil Penalty.\n13. The Parties mutually agree, and PHMSA hereby orders, that the total civil\npenalty assessed for Items 1 to 9 and 16a to 16b of the Notice in CPF 5-2007-5041 and\nItems 1 to 3 and 5 to 7 of the Notice for CPF 5-2008-5008 is Six-Hundred-Thousand\nDollars ($600,000).\n14. Alyeska will pay the civil penalty amount in Paragraph 13 within 30 days of\nsigning of this Compromise Order and Agreement. Payment may be made by sending a\ncertified check or money order, made payable to “U.S. Department of Transportation,” to\nthe Federal Aviation Administration, Mike Monroney Aeronautical Center, Financial\nOperations Division (AMZ-341), P.O. Box 269039, Oklahoma City, Oklahoma 73125.\nPayment may also be made by wire transfer through the Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury.\n15. The Parties agree that the civil penalty assessed and collected in this proceeding\nwill not be deductible for purposes of Federal taxes.\n16. The Parties agree that the civil penalty assessed and collected in this proceeding\nwill not be used in determining the amount of any civil penalty for any future\nenforcement action.\nV. Compliance Order.\n17. The Parties mutually agree, and PHMSA hereby finds, that Alyeska has satisfied\nthe terms of all of the proposed compliance orders for the Enforcement Actions, except\nfor the following:\nA. CPF 5-2008-5008\ni. With respect to the violation of § 195.583 (Item 7), Alyeska must develop\nand implement a risk-based atmospheric corrosion control program for\nTAPS, as required under that regulation. Alyeska must submit, for\n5\n\n\n\napproval by the Director, documentation of the program within 180 days\nof the Effective Date of this Compromise Order and Agreement.\nVI. Warning Items.\n18. The Parties mutually agree, and PHMSA hereby orders, that Alyeska has\nreceived a warning for committing the probable violations in Items 10, 13, and 14 of the\nNotice in CPF 5-2007-5041 and Item 2 of the Notice in CPF 5-2009-5019, and that the\ncompany must take appropriate corrective actions or be subject to future enforcement\naction. PHMSA hereby finds that the warnings in Items 11, 12 and 15 of the Notice in\nCPF 5-2007-5041 should be, and hereby are, withdrawn.\nVII. Dismissal of Complaint.\n19. The Parties agree to sign, and that Alyeska will file, a voluntary \"Stipulation for\nDismissal of Action,\" in a form substantially similar to the document attached to this\norder as Exhibit A, in the United States District Court for the District of Alaska within\nthirty (30) days of Alyeska’s payment of the civil penalty amount referenced in paragraph\n13 of this Compromise Order and Agreement. Said dismissal will be with prejudice and\nwithout costs or fees for either of the Parties.\nVIII. Dispute Resolution\n20. PHMSA and Alyeska will attempt to resolve any disputes arising under this\nCompromise Agreement and Order on an informal basis. If Alyeska and PHMSA are\nunable to informally resolve the dispute within 15 days, Alyeska may request in writing,\nwithin 10 days, a written determination resolving the dispute from the Associate\nAdministrator for Pipeline Safety. Such a request must include all of the information that\nAlyeska believes is relevant to the dispute. If the request is submitted as provided herein,\nthe Associate Administrator will issue a final determination in writing. The existence of\na dispute and PHMSA’s consideration of matters placed in dispute will not excuse, toll,\nor suspend any term or timeframe for completion of any work to be performed under this\nagreement during the pendency of the dispute resolution process, except as agreed by the\nDirector or the Associate Administrator in writing.\nIX. Enforcement\n21. This Compromise Agreement and Order are subject to all enforcement authorities\navailable to PHMSA under 49 U.S.C. § 60101 et seq. and 49 C.F.R. Part 190, including\nthe assessment of civil penalties as determined in accordance with the requirements of 49\nU.S.C. § 60122 and 49 C.F.R. §§ 190.223 to 190.225, if PHMSA determines that\nAlyeska is not complying with the terms of this agreement, any determinations made by\nthe Director, or, if appealed, with any decisions of the Associate Administrator. Failure\nto comply with the terms of this agreement may also result in referral to the Attorney\nGeneral for appropriate relief in a United States District Court pursuant to 49 U.S.C.\n§ 60120.\n6\n\n\n\nX. Effective Date.\n22. The “Effective Date” is the date on which this Compromise Agreement and\nOrder has been signed by both Alyeska and PHMSA.\nXI. Modification.\n23. The terms of this Compromise Agreement and Order may be modified by mutual\nagreement of the parties. Such modifications must be in writing and signed by both\nparties.\nXII. Termination.\n24. This Compromise Agreement and Order will terminate upon Alyeska’s payment\nof the civil penalty referenced in Paragraphs 13 and 14 and upon its completion of the\nterms set forth in Paragraph 17 of Section V, as determined, in writing, by the Director.\nNothing in this agreement prevents Alyeska or PHMSA from completing any of the\nobligations earlier than the deadlines provided for in this agreement.\nXIII. Ratification.\n25. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Compromise Agreement and Order and to\nexecute and legally bind such party to this document.\n26. The Parties hereby agree to all conditions and terms of this Compromise\nAgreement and Order:\nFor PHMSA: For Alyeska:\n___________________________ ____________________________\nJeffrey D. Wiese Michael W. Joynor\nAssociate Administrator Senior Vice President of Operations\nfor Pipeline Safety Alyeska Pipeline Service Company\n_____________________ _____________________\nDate Date\n7\n\n520085008_closure letter_01072014_text.pdf\n\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED\nJanuary 7, 2014\nMr. Tom Barrett\nPresident and CEO\nAlyeska Pipeline Service Company\n3700 Centerpoint Drive\nAnchorage, AK 99503\nCPF 5-2008-5008\nClosure Letter\nDear Mr. Barrett:\nOn May 16, 2011, PHMSA entered into a Compromise Agreement and Order (CA&O), whereby\nthe parties mutually agreed that Alyeska had satisfied the terms of four (4) previously proposed\ncompliance orders except for Item 7 of CPF 5-2008-5008. With respect to Item 7 (Item 17 of the\nCA&O), Alyeska was required to develop and implement a risk-based atmospheric corrosion\ncontrol monitoring program for the Trans-Alaska Pipeline System (TAPS), as required under\nregulation §195.583.\nOn May 14, 2012, Alyeska submitted procedures as required by the CA&O. The procedures\ndescribed Alyeska’s method for conducting risk-based atmospheric corrosion control monitoring\nfor the mainline TAPS and other facility piping. PHMSA responded to Alyeska on May 20, 2013\nto inform them that their risk based atmospheric corrosion control procedures were still\ninadequate.\nAlyeska submitted revised procedures on June 20, 2013, August 1, 2013, and January 3, 2014.\nMy staff reviewed the amended procedures (MP-166-3.03-02, Revision 6, effective date\n12/24/13), and it appears that the inadequacies have been corrected. PHMSA will confirm during\nfuture inspections that Alyeska’s corrosion control plan is properly implemented and the pipelines\nare protected against atmospheric corrosion.\nThis letter is to inform you this case is now closed. Thank you for your cooperation.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Strawn (#118838)\n\n520085008_nopv pcp pco_04012008_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 PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT RE UESTED\nApril 1, 2008\nMr, Jim Johnson\nPipeline Vice President\nAlyeska Pipeline Service Company\n900 East Benson Blvd\nP. O. Box 196606\nAnchorage, AK 99519\nCPF 5-2008-500S\nDear Mr. Johnson:\nBetween June 18 and 21, 2007, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Alyeska\nPipeline Service Company's (Alyeska) facihties and records for the Trans Alaska Pipeline\nSystem (TAPS) between Mile Posts 367 and 469. Operational reviews of Pump Stations 7 and\n8 were also included in this inspection.\nAs a result of the above referenced inspection, and an additional inspection that took place on\nAlyeska facilities between Pump Station 1 and Mile Post 126 on July 8-13, 2007, it appears that\nyou have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of\nFederal Regulations. The items mspected and the probable violations are:\n\n\n\n$195. 573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine whether cathodic\nprotection required by this subpart complies with Sec. 195. 571:\n(1) Conduct tests on the protected pipeline at least once each calendar year, but\nwith intervals not exceeding 15 months.\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 correct\nthe deficiency as required by Sec. 195. 452(h).\nAlyeska failed to conduct pipe-to-soil tests on the mainline i e at several road crossin s\non TAPS at least once each calendar year, but with intervals not exceeding 15 months, as\nrequired by $195. 573(a)(1), to determine whether cathodic protection (CP) complied\nwith $195. 571. Further, Alyeska failed to correct CP deficiencies as required by\n)195. 573(e) after eventually conducting tests at some road crossings and discovering CP\ndeficiencies. It is inappropriate for more than one (1) year to pass before areas of low\nCP are remediated. However, in instances of aggressive corrosion, remediation must\noccur in less than one (1) year. The records indicate that Alyeska failed to conduct pipe-\nto-soil tests and failed to remediate inadequate CP at the locations listed below:\n~ Pipe-to-soil tests on the mainline pipe at road casings at Mile Posts 18. 69, 177. 29,\n300. 31, 308. 01, 340. 46 and 367. 06 were not conducted for the years 2004 and 2005.\n~ Pipe-to-soil tests of the mainline pipe at the road crossing at Mile Post 579. 48 were\nnot conducted in years 2003 and 2004. The mainline pipe at this location did not\nmeet NACE criteria for the years 2005 and 2006.\n~ Pipe-to-soil tests of the mainline pipe at the road crossing at Mile Post 246, 18 were\nnot conducted for 2004. The mainline pipe at this location did not meet NACE\n' criteria for the years 2003, 2005 and 2006,\n~ Pipe-to-soil tests of the mainline pipe at the road crossing at Mile Post 765. 24 were\nnot conducted for the years 2003 and 2004. The mainline pipe at this location did\nnot meet NACE criteria for the years 2005 and 2006.\nEvidence:\n1. TAPS mainline road crossing surveys, '06, '05, '04, and '03.\n2. MP-166-3, 22, Rev 1, Section 5, 2. 5. 1, dated 7/27/06.\n\n\n\n2. $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 the\napplicable criteria and other considerations for cathodic protection contained in\nparagraphs 6. 2 and 6. 3 of NACE Standard RP 0169 (incorporated by reference, see\ng 195. 3).\n$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 correct\nthe deficiency as required by Sec. 195. 452(h).\nAlyeska's pipe-to-soil potentials at certain CP cou on test stations on TAPS failed to\nmeet the criteria in NACE Standard RP 0169 as required by $195. 571. Records show\nthat CP coupons failed to meet the NACE Standard at Mile Posts 449. 26, 474. 03, and\n477. 48 on TAPS for the years 2004, 2005 and 2006.\nFurther, Alyeska failed to correct those deficiencies in corrosion control at those\nlocations as required by $195. 401(b). It is inappropriate for more than one (1) year to\npass before areas of low CP are remediated. However, in some instances remediation\nmust occur in less than one (1) year.\nEvidence:\nTAPS Mainline CP Coupon Surveys, '04, '05, '06.\n$195. 571 What criteria must I use to determine the adequacy of cathodic\nprotection?\nCathodik protection required by this subpart must comply with one or more of the\napplicable criteria and other considerations for cathodic protection contained in\nparagraphs 6. 2 and 6. 3 of NACE Standard RP 0169 (incorporated by reference, see\ng 195. 3).\n$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 correct\nthe deficiency as required by Sec. 195. 452(h).\n\n\n\nAlyeska's pipe-to-soil potentials based on recurring Close Interval Surve s failed to\nmeet the criteria in NACE Standard RP 0169 as required by $195. 571. Records show\nClose Interval surveys failed to meet the NACE Standard at Mile Posts 449. 22 to 449. 27,\nMile Posts 468. 28 to 468. 37, Mile Posts 477. 15 to 477. 62 and Mile Post 477. 41 on\nTAPS for the years 2004, 2005, 2006.\nFurther, Alyeska failed to correct those deficiencies in corrosion control at those\nlocations as required by $195. 401(b). It is inappropriate for more than one (1) year to\npass before areas of low CP are remediated. However, in some instances remediation\nmust occur in less than one (1) year.\nEvidence:\nTAPS mainline Close Interval Survey data, '04, '05, '06.\n$195. 573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine whether cathodic\nprotection required by this subpart complies with Sec. 195. 571:\n(1) Conduct tests on the protected pipeline at least once each calendar year, but\nwith intervals not exceeding 15 months.\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 correct\nthe deficiency as required by Sec. 195. 452(h).\nAlyeska failed to provide cathodic protection records that would indicate whether it had\nconducted the tests required by $195. 573(a)(1) on the 16\" crude incoming line and 14\"\nresidual line at the North Pole metering facility on TAPS for the years 2004 and 2005.\nThis lateral piping was installed in 1997 and 1998.\n$195. 579 What must I do to mitigate internal corrosion?\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.\nAlyeska failed to provide any records to show that it investigates the corrosive effects of\nthe hazardous liquid transported in TAPS. Alyeska as required by $195, 579 (a) to\ninvestigate the corrosive effects of the hazardous liquid in the TAPS pipeline. Alyeska's\n2004 In-line Inspection (ILI) records indicate that internal corrosion exists on the TAPS\n\n\n\nmainline. Corrosive effects investigation is critical for determining the corrosive nature\nof the crude oil transported by TAPS and how the pipeline is affected. The hazardous\nliquids delivered to TAPS contain materials that are known to be potentially corrosive.\nEvidence:\nInternal corrosion pig calls from the 2001 UT pig and the 2004 MFL pig.\n6. $195. 579 What must I do to mitigate internal corrosion?\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.\nAlyeska failed to provide any records that indicate it takes adequate steps to mitigate\ninternal corrosion on the TAPS mainline, Alyeska's 2004 In-line Inspection (ILI)\nrecords indicate that internal corrosion exists on the TAPS mainline. Alyeska is required\nby $195. 579 (b) to take adequate steps to mitigate internal corrosion.\nEvidence:\nInternal corrosion pig calls from the 2001 UT pig and the 2004 MFL pig.\n7. $195. 583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is located: Then the frequency of inspection is:\nOnshore At least once every 3 calendar years, but with intervals\nnot exceeding 39 months\n(b) During inspections you must give particular attention to pipe at soil-to-air\ninterfaces, under thermal insulation, under disbonded coatings, and at pipe\nsupports.\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 correct\nthe deficiency as required by Sec. 195. 452(h).\n\n\n\nAlyeska failed to provide atmospheric corrosion control records for TAPS to PHMSA\npersonnel. Alyeska is required by §195.583 (a) to monitor atmospheric corrosion at\nleast every three (3) years and give particular attention to pipe at soil-to-air interfaces,\nunder thermal insulation, under disbonded coatings, and at pipe supports.\nFor example, Alyeska has belowground check valves in vaults, belowground mainline\nfittings in vaults, belowground mainline piping corridors, and belowground header\npiping. All of these were found to contain water during a recent inspection of PS 1\nthrough Milepost 126 of TAPS. Alyeska failed to produce records for required\natmospheric corrosion inspections at these locations.\nEvidence:\n1. Photographs of check valves 8, 10, 11, 12, 13, 15, 16, Manual Gate Valve 10A, split\ntee, DRA injection ring.\n2. OM-1 section 12.12, Atmospheric Corrosion.\n3. Letter for specific information and Alyeska's response.\n4. Alyeska as built database, indicating that a sleeve was placed over corrosion at the\nsoil/air interface on a transition.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000\nfor each violation for each day the violation persists up to a maximum of $1,000,000 for any\nrelated series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violation(s) and has recommended\nthat you be preliminarily assessed a civil penalty of $ 170,000 as follows:\nItem number\nPENALTY\n$ 37,000\n2\n$ 37,000\n3\n$ 24,000\n•\n4\n$ 11,000\n5\n$ 11,000\n6\n$ 39,000\n7\n$ 11,000\nTotal\n$170,000\nProposed Compliance Order\nWith respect to Items 1, 2, 3, 4, 5, 6, and 7, pursuant to 49 United States Code § 60118, the\nPo Alies and paine service Come Sange ease releration Propel see Corder Ordere\n6\n\n\n\nRes onse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Compliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U. S. C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U, S. C. 552(b), If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 5-2008-5008 and for each document\nyou submit, please provide a copy in electronic format whenever possible,\nSincerely,\nChris oidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Strawn (¹118838)\nEncl: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code $ 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Alyeska Pipeline Service Company a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Alyeska\nPipeline Service Company with the pipeline safety regulations:\nIn regard to Item 1 of the Notice pertaining to Alyeska's failure to conduct pipe-to-soil tests\nof the mainline pipe on road crossings on TAPS, Alyeska must meet the requirements of\n$195. 573 (a) (1) by conducting tests of the mainline pipe at road crossings on TAPS once\neach calendar year, but with intervals not exceeding 15 months to determine whether\ncathodic protection required by this subpart complies with $ 195. 571 Alyeska must\nconduct pipe-to-soil tests at the locations indicated in the Notice and provide\ndocumentation of such tests within 60 days of receipt of the Final Order. Alyeska shall\ntake such corrective actions as are necessary to raise cathodic protection levels at the\nspecified locations to meet one or more of the criteria within 1 year of receipt of the Final\nOrder, and in the case of newly discovered inadequate cathodic protection, within 1 year of\ndiscovery of such inadequacy.\nIn regard to Item 2 of the Notice pertaining to Alyeska's failure to meet the criteria in\nNACE Standard RPO-169, based on cathodic protection coupon test data taken at the\nlocations specified in the Notice on TAPS, for the years 2004, 2005 and 2006, Alyeska\nshall evaluate the cathodic protection levels at the locations specified in the Notice and take\nappropriate action to bring the cathodic protection into compliance with one or more of the\napplicable criteria and other considerations for cathodic protection contained in paragraphs\n6. 2 and 6. 3 of NACE Standard RP0169-96 (incorporated by reference, see Sec. 195, 3).\nAlyeska shall conduct cathodic protection coupon testing at the locations indicated in the\nNotice and provide documentation of the testing within 60 days of receipt of the Final\nOrder. Alyeska shall take such corrective actions as are necessary to raise cathodic\nprotection levels at the specified locations to meet one or more of the criteria within 1 year\nof testing.\nIn regard to Item 3 of the Notice pertaining to Alyeska's failure to meet the criteria in\nNACE Standard RPO-169, based on close interval survey data taken at the locations\nspecified in the Notice on TAPS, for the years 2004, 2005 and 2006, Alyeska shall evaluate\nthe cathodic protection levels at the locations specified in the Notice and take appropriate\naction to bring the level of cathodic protection at the specified locations into compliance\nwith one or more of the applicable criteria and other considerations for cathodic protection\ncontained in paragraphs 6. 2 and 6. 3 of NACE Standard RP0169-96 (incorporated by\nreference, see Sec. 195. 3).\nAlyeska shall evaluate the cathodic protection at the locations indicated in the Notice and\nprovide documentation of the testing within 60 days of receipt of the Final Order. Alyeska\nshall take such corrective actions as are necessary to raise cathodic protection levels at the\nspecified locations to meet one or more of the criteria within 1 year of testing.\n8\n\n\n\nIn regard to Item 4 of the Notice pertaining to Alyeska's failure to provide cathodic\nprotection records for the incoming and residual lines at the North Pole metering facility,\nAlyeska shall provide cathodic protection records, or shall conduct testing of the cathodic\nprotection at this location and provide documentation of the testing within 60 days of\nreceipt of the Final Order. Within 1 year of testing, Alyeska shall take such corrective\nactions as are necessary to raise cathodic protection levels at the specified location to\nachieve compliance with one or more of the applicable criteria and other considerations for\ncathodic protection contained in paragraphs 6. 2 and 6. 3 of NACE Standard RP0169-96\n(incorporated by reference, see Sec. 195. 3).\nIn regard to Item 5 of the Notice pertaining to Alyeska's failure to provide corrosion effects\nrecords for TAPS, Alyeska shall develop and implement a program to investigate the\ncorrosive effect of the hazardous liquids transported in TAPS according to the requirements\nof )195. 579. This program shall include a chemical analysis of the hazardous liquid being\ntransported on TAPS. Such analysis shall include, at a minimum, an analysis of the water,\norganic/inorganic, calcium carbonate and iron sulfide composition. Alyeska shall conduct\nany additional analyses of the corrosive effects of the hazardous liquids transported in\nTAPS, as are necessary to characterize and understand such corrosive effects. Alyeska\nshall develop and implement the program, conduct the analyses, and provide\ndocumentation of these activities within 180 days of receipt of the Final order.\nIn regard to Item 6 if the Notice pertaining to Alyeska's failure to provide records to show\nthat it has taken adequate steps to mitigate internal corrosion on the TAPS mainline,\nAlyeska shall develop and implement an internal corrosion mitigation program The\nprogram shall include a provision for testing to demonstrate the effectiveness of all\nmitigative actions. Alyeska shall develop and submit the program for review within 180\ndays of receipt of the Final Order. Alyeska shall implement the program, and provide\ndocumentation of implementation, within 180 days of approval or modification by the\nDirector, Western Region.\nIn regard to Item 7 of the Notice pertaining to Alyeska's failure to provide atmospheric\ncorrosion control records for TAPS to PHMSA personnel, Alyeska shall develop and\nimplement a program to monitor atmospheric corrosion on TAPS according to the\nrequirements of $195. 583. Alyeska shall develop and implement the program and submit\ndocumentation of this activity within 180 days of receipt of the Final Order.\nAPSC must maintain documentation of the safety improvement costs associated with\nfulfilling this Proposed Compliance Order and submit the total to Chris Hoidal, Director,\nWestern Region, Pipeline and Hazardous Materials Safety Administration. Alyeska shall\nreport costs in two general categories: 1) total cost associated with preparation of studies,\nanalyses, plans and procedures, and 2) total cost associated with replacements, additions\nand other changes to pipeline infrastructure","truncated":false,"body_characters":39729}