BETA OFFSHORE — Notice of Amendment

party submissionOfficial PDF520085034M_operator_response_03052009.pdf#

520085034M_notice of amendment_09152008.pdf, page 1Official PDFU.S. Department 12300 W. Dakota Ave., Suite 110 of Transportation Lakewood, CO 80228 Pipeline and Hazardous Materials Safety Administration NOTICE OF AMENDMENT CERTIFIED MAIL - RETURN RECEIPT REQUESTED September 15, 2008 Mr. Robert Pyle Manager, Pipeline and Marine Logistics Pacific Energy Resources LTD 111 West Ocean Blvd., Suite 1240 Long Beach, CA 90802 CPF 5-2008-5034M Dear Mr. Pyle: On August 25-27,2008, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Pacific Energy Resources' procedures for Operations and Maintenance (O&M) Procedural Manuals in Long Beach California. On the basis of the inspection, PHMSA has identified the apparent inadequacies found within Pacific Energy Resources' plans or procedures, as described below: 1. §195.214 Welding procedures (a) Welding must be performed by a qualified welder in accordance with welding procedures qualified under Section 5 of API 1104 or Section IX of the ASME Boiler and Pressure Vessel Code (ibr, see § 195.3) . The quality of the test welds used to qualify the welding procedure shall be determined by destructive testing.#

520085034M_notice of amendment_09152008.pdf, page 2Pacific Energy Resources is not specific in its O&M manuals regarding what section and edition of API 1104 need to be used to qualify its 'Welding Procedures'. 2. §195.222 Welders: Qualification of welders. (a) Each welder must be qualified in accordance with section 6 of API 1104 (ibr, see §195.3 or section IX ofthe ASlVIE Boiler and Pressure Vessel Code, (ibr, see § 195.3) except that a welder qualified under an earlier edition than listed in § 195.3 may weld but may not re-qualify under that earlier edition. Pacific Energy Resources requires its welder to be qualified under Section 3 of API 1104. CFR 49 Part 195.222 requires all welders to be qualified under Section 6 of API 1104. Pacific Energy needs to change its O&M procedural manual to reference Section 6 and specify the correct edition of API 1104. 3. §195.228 Welds and welding inspection: Standards of acceptability. (b) The acceptability of a weld is determined according to the standards in Section 9 of API 1104. However, if a girth weld is unacceptable under those standards for a reason other than a crack, and if Appendix A to API 1104 (ibr, see § 195.3) applies to the weld, the acceptability of the weld may be determined under that appendix. Pacific Energy Resources requires its weld acceptability to be inspected under Section 6 of API 1104. CFR 49 Part 195.288 requires weld inspection to be performed under Section 9 of API 1104. Pacific Energy needs to change its O&M procedural manual to reference Section 9 and specify the correct edition of API 1104. Response to this Notice This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. 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 qualify 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. 2#

520085034M_notice of amendment_09152008.pdf, page 3If, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within 60 days ofreceipt ofthis Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. In correspondence concerning this matter, please refer to CPF 5-2008-5034M and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerel Y >/2/ / Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 H. Monfared (#122435) Enclosure: Response Options for Pipeline Operators in Compliance Proceedings 3#