AMERIGAS EAGLE PROPANE LP — Notice of Probable Violation

case documentOfficial PDF520100005_NOPV PCO_02122010.pdf#

case documentOfficial PDF520100005_NOPV PCO_02122010_text.pdf#

party submissionOfficial PDF520100005_operator response_03172011.pdf#

520100005_FinalOrder_05252011_text.pdf, page 1Official PDFMAY 25 2011 Mr. Ron Templeman General Manager Amerigas Eagle Propane, L.P. 91-290 Hanua Street Kapolei, HI 96707-1783 Re: CPF No. 5-2010-0005 Dear Mr. Templeman: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation and specifies actions that need to be taken by Amerigas Eagle Propane, L.P., to comply with the pipeline safety regulations. When the terms of the compliance order have been completed, as determined by the Director, Western Region, this enforcement action will be closed. Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided 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: Mr. Chris Hoidal, Director, Western Region, PHMSA CERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0075 9336]#

520100005_FinalOrder_05252011_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 ) ) Amerigas Eagle Propane, L.P., ) CPF No. 5-2010-0005 ) Respondent. ) ____________________________________) FINAL ORDER On December 8, 2008, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Amerigas Eagle Propane, L.P. (Amerigas or Respondent), in Kapolei, Hawaii. Amerigas operates propane gas distribution systems on several of the Hawaiian Islands, including 12 propane tank systems on the island of Oahu. As a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent, by letter dated February 12, 2010, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Amerigas had committed various violations of 49 C.F.R. Part 192 and proposed ordering Respondent to take certain measures to correct the alleged violations. By letter dated January 6, 2011, the Director reissued the Notice after learning that Amerigas had not received his previous letter.1 Amerigas responded to the Notice by letter dated March, 17, 2011 (Response). The company indicated it was “not contesting the Compliance Order,” provided information concerning the corrective actions it had taken, and submitted copies of its revised procedures. Respondent did not request a hearing and therefore has waived its right to one. FINDINGS OF VIOLATION The Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows: 1 In the February 12, 2010 Notice, the Director alleged that Amerigas had failed to comply with the service line test requirements in 49 C.F.R. § 192.511 in October 1984. The Director did not include that allegation of violation in the January 6, 2011 Notice. See In the Matter of Alon USA, LP, C.P.F. 5-2004-5021, Decision on Petition for Reconsideration (Oct. 22, 2009) (finding that PHMSA enforcement actions under 49 C.F.R. Part 190 are subject to a 5-year statute of limitations).#

520100005_FinalOrder_05252011_text.pdf, page 32 Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.463(a), which states: § 192.463 External corrosion control: Cathodic protection. (a) Each cathodic protection system required by this subpart must provide a level of cathodic protection that complies with one or more of the applicable criteria contained in appendix D of this part. If none of these criteria is applicable, the cathodic protection system must provide a level of cathodic protection at least equal to that provided by compliance with one or more of these criteria. The Notice alleged that Amerigas violated 49 C.F.R. § 192.463(a) by failing to provide the level of cathodic protection required under the applicable criteria. Specifically, the Notice alleged that Respondent did not provide any cathodic protection for two segments of buried, 1-inch steel piping at the Ewa Complex and Maile Center. The Notice further alleged that the total length of those unprotected segments was approximately 200 feet. Amerigas did not contest this allegation in its Response. Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R. 192.463(a) by failing to provide the level of cathodic protection required under the applicable criteria. Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.491, which states: § 192.491 Corrosion control records. (a) Each operator shall maintain records or maps to show the location of cathodically protected piping, cathodic protection facilities, galvanic anodes, and neighboring structures bonded to the cathodic protection system. Records or maps showing a stated number of anodes, installed in a stated manner or spacing, need not show specific distances to each buried anode. (b) Each record or map required by paragraph (a) of this section must be retained for as long as the pipeline remains in service. (c) Each operator shall maintain a record of each test, survey, or inspection required by this subpart in sufficient detail to demonstrate the adequacy of corrosion control measures or that a corrosive condition does not exist. These records must be retained for at least 5 years, except that records related to §§ 192.465 (a) and (e) and 192.475(b) must be retained for as long as the pipeline remains in service. The Notice alleged that Amerigas violated 49 C.F.R. 192.491 by failing to maintain any corrosion control records for a 250-foot, 3-inch line at the Westbridge Complex. Respondent did not contest this allegation in its Response. Accordingly, after considering all of the evidence, I find that Amerigas violated 49 C.F.R. 192.491 by failing to maintain corrosion control records for its pipeline system. Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.225, which states:#

520100005_FinalOrder_05252011_text.pdf, page 43 § 192.225 Welding procedures. (a) Welding must be performed by a qualified welder in accordance with welding procedures qualified under section 5 of API 1104 (incorporated by reference, see § 192.7) or section IX of the ASME Boiler and Pressure Vessel Code “ Welding and Brazing Qualifications” (incorporated by reference, see § 192.7) to produce welds meeting the requirements of this subpart. The quality of the test welds used to qualify welding procedures shall be determined by destructive testing in accordance with the applicable welding standard(s). (b) Each welding procedure must be recorded in detail, including the results of the qualifying tests. This record must be retained and followed whenever the procedure is used. The Notice alleged that Respondent violated 49 C.F.R. 192.225 by failing to have any welding procedures for its steel pipelines. In its Response, Amerigas did not contest the allegation but submitted a copy of section 5.5a of its Operations and Maintenance Manual, Welding of Steel in Pipelines. section as being applicable to 10 different Code provisions. It consists of a two-paragraph written procedure but does not include detailed requirements for welder qualifications or re- qualifications, weld suitability or testing, or recordkeeping. Therefore, this procedure does not satisfy the requirements of § 192.225. 2 Amerigas identified that Accordingly, after considering all of the evidence, I find that Amerigas violated 49 C.F.R. § 192.225 by failing to have each welding procedure recorded in detail for its steel pipelines. Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.245, which states: § 192.245 Repair or removal of defects. (a) Each weld that is unacceptable under §192.241(c) must be removed or repaired. Except for welds on an offshore pipeline being installed from a pipeline vessel, a weld must be removed if it has a crack that is more than 8 percent of the weld length. (b) Each weld that is repaired must have the defect removed down to sound metal and the segment to be repaired must be preheated if conditions exist which would adversely affect the quality of the weld repair. After repair, the segment of the weld that was repaired must be inspected to ensure its acceptability. (c) Repair of a crack, or of any defect in a previously repaired area must be in accordance with written weld repair procedures that have been qualified under § 192.225. Repair procedures must provide that the minimum mechanical properties specified for the welding procedure used to make the original weld are met upon completion of the final weld repair. 2 The written procedures submitted by Amerigas with its Response bear an effective date of February 2, 2010; these procedures replaced the previous version which had an effective date of November 1, 2008. Because the procedures which were submitted are inadequate for purposes of § 192.225, there is no need to decide the factual question of whether such procedures were in effect at the time of the December 2008 OPS inspection.#

520100005_FinalOrder_05252011_text.pdf, page 54 The Notice alleged that Respondent violated 49 C.F.R. 192.245 by failing to have any written procedures for the repair or removal of weld defects. In its Response, Amerigas did not contest the allegation but submitted a copy of section 5.5a of its Operations and Maintenance Manual, Welding of Steel in Pipelines. Amerigas identified that section as being applicable to 10 different Code provisions. It consists of a two-paragraph written procedure, but does not include any detailed requirements for the repair or removal of weld defects.3 Accordingly, after considering all of the evidence, I find that Amerigas violated 49 C.F.R. 192.245 by failing to have adequate written procedures for the repair or removal of weld defects. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Items 1, 2, 3, and 4 in the Notice for violations of 49 C.F.R. §§ 192.463(a), 192.491, 192.225, and 192.245, respectively. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. The Director has indicated that Respondent has taken the following actions to address some of the cited violations: With respect to the violation of 49 C.F.R. § 192.463(a) (Item 1), Amerigas is no longer providing regulated gas propane service to the customers at Ewa Complex or Maile Center. Therefore, the cathodic protection requirements no longer apply to the buried, 1-inch steel piping at those locations. With respect to the violation of 49 C.F.R. § 192.491 (Item 2), Amerigas has replaced the 3-inch steel pipe at the Westbridge Complex with a 2-inch polyethylene pipe, which does not require cathodic protection or the maintenance of corrosion control records. Accordingly, I find that compliance has been achieved with respect to these violations. Therefore, the compliance terms proposed in the Notice for Items 1 and 2 are not included in this Order. As for the remaining compliance terms, pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 192.225 (Item 3), Respondent must establish adequate written welding procedures for its steel pipelines. 3 See 49 C.F.R. § 192.225 (b) (stating that “[e]ach welding procedure must be recorded in detail, including the results of the qualifying tests,” and that “[t]his record must be retained and followed whenever the procedure is used.”).#

520100005_FinalOrder_05252011_text.pdf, page 65 2. With respect to the violation of § 192.245 (Item 4), Respondent must establish adequate written procedures for the repair or removal of weld defects. 3. Within 90 days of receipt of this Final Order, Respondent must complete the actions specified in Items 1 and 2 above. 4. It is requested that Respondent maintain documentation of the safety improvement costs associated with fulfilling the terms of this Compliance Order and that the total be submitted to Mr. Chris Hoidal, Director, Western Region, PHMSA. It is further requested that those costs be reported in two categories: 1) total costs associated with the preparation/revision of plans, procedures, studies, and analyses and 2) total costs associated with replacements, additions, and other changes to pipeline infrastructure. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Failure to comply with this Order may result in administrative assessment of civil penalties not to exceed $100,000 for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. Under 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA will accept petitions received no later than 20 days after receipt of service of this Final Order by the Respondent, provided they contain a brief statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.215. Unless the Associate Administrator, upon request, grants a stay, the terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#

520100005_Re-issued NOPV PCO_01062011_text.pdf, page 1Official PDFNOTICE OF PROBABLE VIOLATION and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT REQUESTED January 6, 2011 Mr. Ron Templeman General Manager Amerigas Eagle Propane, L.P. 91-290 Hanua Street Kapolei, HI 96707-1783 CPF 5-2010-0005 Dear Mr. Templeman: This Notice of Probable Violation and Proposed Compliance Order was originally sent on February 12, 2010, but we did not receive the certified mail return receipt. Subsequent contact with Amerigas Eagle Propane, L.P. confirmed your company did not receive this Notice. As a result, we are re-issuing this Notice. On December 8, 2008, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Amerigas Eagle Propane, L.P. (Amerigas) facilities in Kapolei, Hawaii. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are:#

520100005_Re-issued NOPV PCO_01062011_text.pdf, page 21. § 192.463 External corrosion controls: Cathodic Protection. a) Each cathodic protection system required by this subpart must provide a level of cathodic protection that complies with one or more of the applicable criteria contained in Appendix D of this part. If none of these criteria is applicable, the cathodic protection system must provide a level of cathodic protection at least equal to that provided by compliance with one or more of these criteria. Amerigas is not providing any cathodic protection (CP) for the one-inch buried steel piping at the Ewa Complex and Maile Center. The total length of inadequate protected piping for both locations is approximately 200 feet. Amerigas must provide adequate cathodic protection for the buried steel piping. 2. §192.491 Corrosion control records. (a) Each operator shall maintain records or maps to show the location of cathodically protected piping, cathodic protection facilities, galvanic anodes, and neighboring structures bonded to the cathodic protection system. Records or maps showing a stated number of anodes, installed in a stated manner or spacing, need not show specific distances to each buried anode. (b) Each record or map required by paragraph (a) of this section must be retained for as long as the pipeline remains in service. (c) Each operator shall maintain a record of each test, survey, or inspection required by this subpart in sufficient detail to demonstrate the adequacy of corrosion control measures or that a corrosive condition does not exist. These records must be retained for at least 5 years, except that records related to §§192.465(a) and (e) and 192.475 (b) must be retained for as long as the pipeline remains in service. Amerigas did not maintain corrosion control records for the 250-foot long, 3-inch diameter line at the Westridge Complex. No pipe-to-soil readings or other cathodic protection records to demonstrate adequate corrosion control for this line were available. 3. §192.225 Welding procedures. (a) Welding must be performed by a qualified welder in accordance with welding procedures qualified under section 5 of API 1104 (incorporated by reference, see §192.7) or section IX of the ASME Boiler and Pressure Vessel Code " Welding and Brazing Qualifications" (incorporated by reference, see §192.7) to produce welds meeting the requirements of this subpart. The quality of the test welds used to qualify welding procedures shall be determined by destructive testing in accordance with the applicable welding standard(s).#

520100005_Re-issued NOPV PCO_01062011_text.pdf, page 3(b) Each welding procedure must be recorded in detail, including the results of the qualifying tests. This record must be retained and followed whenever the procedure is used. Amerigas does not have any welding procedures for its steel pipelines. Amerigas must have qualified welding procedures for any repair work requiring welding. 4. §192.245 Repair or removal of defects. (a) Each weld that is unacceptable under §192.241(c) must be removed or repaired. Except for welds on an offshore pipeline being installed from a pipeline vessel, a weld must be removed if it has a crack that is more than 8 percent of the weld length. (b) Each weld that is repaired must have the defect removed down to sound metal and the segment to be repaired must be preheated if conditions exist which would adversely affect the quality of the weld repair. After repair, the segment of the weld that was repaired must be inspected to ensure its acceptability. (c) Repair of a crack, or of any defect in a previously repaired area must be in accordance with written weld repair procedures that have been qualified under §192.225. Repair procedures must provide that the minimum mechanical properties specified for the welding procedure used to make the original weld are met upon completion of the final weld repair. Amerigas does not have any weld repair procedures for its steel pipelines. Amerigas must follow welding procedures on any repairs requiring welding. Proposed Compliance Order With respect to items 1 to 5, pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Amerigas. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response 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 qualify for confidential treatment redacted and an explanation of why you believe the redacted information#

520100005_Re-issued NOPV PCO_01062011_text.pdf, page 4qualifies 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 CPF 5-2010-0005 and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings cc: PHP-60 Compliance Registry PHP-500 P. Nguyen (#122343)#

520100005_Re-issued NOPV PCO_01062011_text.pdf, page 5PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Amerigas a Compliance Order incorporating the following remedial requirements to ensure the compliance of Amerigas with the pipeline safety regulations: 1. In regard to Item Number 1 of the Notice pertinent to the buried pipe at the Ewa Complex and Maile Center, Amerigas must provide adequate cathodic protection in accordance with § 192.463(a) External corrosion controls: Cathodic Protection. 2. In regard to Item Number 2 of the Notice pertaining to the 3-inch diameter pipe at the Westridge Complex, Amerigas must maintain records of each corrosion control test, survey and inspection in accordance with §192.491 (a), (b) and (c) - Corrosion control records. 3. In regard to Item Number 4 of the Notice pertaining to welding procedures, Amerigas must establish written welding procedures for its steel pipelines in accordance with §192.225 (a) and (b) – Welding procedures. 4. In regard to Item Number 5 of the Notice pertaining to weld repairs, Amerigas must establish weld repair procedures for its steel pipelines §192.245 – Repair or removal of defects. 5. Within 90 days from the receipt of the Final Order, Amerigas must complete all items contained in this proposed compliance order. 6. Amerigas shall maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Chris Hoidal, 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.#

520100005_closure letter_08022012_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED August 2, 2012 Mr. Ron Templeman General Manager Amerigas Eagle Propane, L.P. 91-290 Hanua Street Kapolei, HI 96707-1783 RE: CPF 5-2010-0005 Closure Letter Dear Mr. Templeman: On May 25, 2011, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Amerigas Eagle Propane, L.P. a Final Order in the above-referenced case. This Order included requirements to establish adequate procedures for welding, and the repair or removal of weld defects. Based on our review of the documentation you provided on August 4, 2011, 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. Sincerely, Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 P. Nguyen (#122343)#