{"operation":"document","citation":"CPF 520105011M","title":"HILCORP NORTH SLOPE, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2010-04-20","effective_on":null,"summary":"CLOSED notice of amendment citing 195.1(a)(1), 195.228, 195.402(c)(7).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520105011m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520105011m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520105011m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520105011M","body":"Notice of Amendment involving HILCORP NORTH SLOPE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.1(a)(1),  195.228,  195.402(c)(7). The case was opened on 2010-04-20 and is reported as closed as of 2013-08-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520105011M_closure letter_08272013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105011M/520105011M_closure%20letter_08272013.pdf\n\n520105011M_closure letter_08272013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105011M/520105011M_closure%20letter_08272013_text.pdf\n\n520105011M_notice of amendment_04202010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105011M/520105011M_notice%20of%20amendment_04202010.pdf\n\n520105011M_notice of amendment_04202010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105011M/520105011M_notice%20of%20amendment_04202010_text.pdf\n\n520105011M_Order Directing Amendment_11232012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105011M/520105011M_Order%20Directing%20Amendment_11232012.pdf\n\n520105011M_Order Directing Amendment_11232012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105011M/520105011M_Order%20Directing%20Amendment_11232012_text.pdf\n\n520105011M_closure letter_08272013_text.pdf\n\nVIA UPS GROUND: 1ZWR25880394812052\nAugust 27, 2013\nMr. John Minge\nPresident\nBP Exploration (Alaska), Inc.\n900 E. Benson Blvd.\nAnchorage, AK 99508-4254\nRE: CPF 5-2010-5011M\nClosure Letter\nDear Mr. Minge:\nOn July 27-28, 2009, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to chapter 601 of 49 United States Code, inspected BP\nExploration Alaska’s (BPXA) procedures titled “Greater Prudhoe Bay Natural Gas Liquids (NGL)\nPipeline Operation, Maintenance, Emergency Response Manual (OMER) in Anchorage, Alaska. As\na result of the inspection, BPXA was issued a Notice of Amendment on April 20, 2010, which\nproposed amendment of your procedures. On November 23, 2012, BPXA was issued an Order\nDirecting Amendment in which Item 1 of the Notice required BPXA to amend their written\nprocedures for operations, maintenance, and emergencies, Item 2 in the Notice was withdrawn, and\nItem 3 in the Notice was corrected.\nBPXA submitted a statement on July 18, 2013, in which they agree that their NGL pipeline from\nValve FV1206 to Flow Station 1 is subject to 49 C.F.R. Part 195. BPXA also stated that inspection\nintervals and updated requirements will be implemented by year end 2013. My staff reviewed the\nplan for amended procedures, and it appears that the inadequacies outlined in this Notice of\nAmendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for\nyour cooperation.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 (#123933)\n\n520105011M_Order Directing Amendment_11232012_text.pdf\n\nNOVEMBER 23, 2012\nMr. John Minge\nPresident\nBP Exploration (Alaska), Inc.\n900 E. Benson Blvd.\nAnchorage, AK 99508-4254\nRe: CPF No. 5-2010-5011M\nDear Mr. Minge:\nEnclosed please find the Order Directing Amendment issued in the above-referenced case. It\nmakes a finding of inadequate procedures and requires that BP Exploration (Alaska), Inc., amend\ncertain operating and maintenance procedures. When the amendment of procedures has been\ncompleted, as determined by the Deputy Director, Western Region, PHMSA, this enforcement\naction will be closed. Service of the Order Directing Amendment by certified mail is deemed\neffective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. David O. Barnes, P.E., DOT & Integrity Manager, BP Pipelines (North America)\nInc., 28100 Torch Parkway, Warrenville, IL 60555\nMr. Dennis Hinnah, Deputy Director, Western Region, OPS\nMr. Chris Hoidal, Director, Western Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nBP Exploration (Alaska), Inc., ) CPF No. 5-2010-5011M\n)\nRespondent. )\n____________________________________)\nORDER DIRECTING AMENDMENT\nOn July 27-28, 2009, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\ninspected the procedures for operating, maintenance, and emergencies for the Greater Prudhoe\nBay natural gas liquids pipeline system of BP Exploration (Alaska), Inc. (BPXA or Respondent),\nat BPXA’s offices in Anchorage, Alaska.1\nAs a result of the inspection, the Deputy Director, Western Region, OPS (Deputy Director),\nissued to Respondent, by letter dated April 20, 2010, a Notice of Amendment (Notice). The\nNotice alleged inadequacies in Respondent’s written procedures for operations, maintenance and\nemergencies and, in accordance with 49 C.F.R. § 190.237, proposed that Respondent amend its\nprocedures to comply with the requirements of 49 C.F.R. §§ 195.1, 195.228, and 195.402(c)(7).\nBPXA responded to the Notice by letter dated May 20, 2010 (Response). The company\ncontested two of the allegations of inadequacy and submitted copies of its revised procedures\nwith respect to the third allegation. Respondent did not request a hearing and therefore has\nwaived its right to one.\nItem 1 in the Notice alleged that Respondent’s procedures failed to indicate that a 6-inch\ndiameter pipeline transporting highly volatile liquids (HVLs) from Valve FV1206 to Flow\nStation 1 is DOT jurisdictional and thus subject to the Part 195 regulations. In its Response,\nBPXA disagreed that the pipeline was subject to Part 195 regulations. Respondent explained\nthat it had reviewed the regulatory history and function of the pipeline and although the former\noperator included the line as part of the regulated NGL pipeline system, it had removed the line\nfrom regulated status under its procedures in 1996, upon consultation with a PHMSA inspector.\n1 BPXA, a wholly-owned subsidiary of BP Pipelines (North America), Inc., conducts oil and gas exploration,\nproduction, and transportation in Alaska, including transporting natural gas liquids.\nhttp://www.bp.com/subsection.do?categoryId=3050048&contentId=3050166 (last visited October 4, 2012).\n\n\n\n2\nRespondent contended that the pipeline was a “production flow line” because the HVLs it carried\nwere subject to additional processing through separation facilities prior to being sent to the\nTrans-Alaska Pipeline System.\nRespondent’s argument, however, is not persuasive. Under 49 C.F.R. § 195.2, an HVL means “a\nhazardous liquid which will form a vapor cloud when released to the atmosphere and which has a\nvapor pressure exceeding 276 kPa (40 psia) at 37.8°C (100°F).” The fact that the liquids being\ntransported in this pipeline are subject to additional processing does not mean they are not HVLs\nand thus hazardous liquids. Moreover, this pipeline originates at a pipeline that Respondent\nacknowledges is a regulated transmission pipeline. Therefore, this pipeline cannot be a\nproduction pipeline because the product it transports has already entered the transportation\nsystem. Accordingly, I find that Respondent’s procedures for classifying the 6-inch diameter\npipeline transporting HVLs from Valve FV1206 to Flow Station 1 are inadequate to ensure the\nsafe operation of its pipeline system.\nPursuant to 49 C.F.R. § 190.237, Respondent is ordered to amend its written procedures for\noperations, maintenance, and emergencies to classify the 6-inch diameter pipeline transporting\nHVLs from Valve FV1206 to Flow Station 1 as a transportation pipeline subject to\n49 C.F.R. Part 195.\nItem 2 in the Notice alleged that Respondent’s procedure for visual weld inspections designated\nas SPC-AK-43-331 was inadequate because it did not require that visual inspection be conducted\nin accordance with the American Petroleum Institute (API) 1104 welding standard and instead\nallowed its non-destructive examination (NDE) contractor to follow the ASME B31.3 standard.2\nIn its Response, BPXA explained that under section 7.16 of its procedures, the requirement to\nfollow the ASME International (ASME) B31.3 standard was in addition to following the API\n1104 standard, not instead of API 1104, and that as a result the API 1104 standard was met and\neven exceeded. I agree. Accordingly, I find that Respondent’s procedure for visual weld\ninspections designated as SPC-AK-43-331 was adequate and this allegation is withdrawn.\nItem 3 in the Notice alleged that Respondent did not have an adequate procedure for starting up\nits pipeline after purging. In its Response, BPXA explained that it added Procedure 2.2b,\nentitled Slack Pipeline Start Up, to the Normal Operations section of its procedural manual to\naddress the inadequacy cited in the Notice. BPXA submitted a copy of its amended procedures\nwith its Response, which the Deputy Director has reviewed. Based on the results of such review,\nI find that Respondent’s original procedures for line start up after purging, as described in the\nNotice, were inadequate to ensure safe operation of its pipeline system, but that Respondent has\ncorrected the identified inadequacy. Accordingly, it is unnecessary to direct any further\namendment of this procedure in this Order.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a petition for reconsideration of\nthis Order Directing Amendment. Should Respondent elect to do so, the petition must be sent to:\nAssociate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East\nBuilding, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel,\nPHMSA, at the same address. PHMSA will accept petitions received no later than 20 days after\n2 API 1104 is incorporated by reference into Part 195. See 49 C.F.R. § 195.3.\n\n\n\n3\nreceipt of service of this Order Directing Amendment by the Respondent, provided they contain\na brief statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.215. Unless\nthe Associate Administrator, upon request, grants a stay, all terms and conditions of this Order\nDirecting Amendment are effective upon service in accordance with 49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n520105011M_notice of amendment_04202010_text.pdf\n\nNOTICE OF AMENDMENT\nVIA FEDERAL EXPRESS (FEDEX) – 8726-2779-5632\nApril 20, 2010\nMr. Anthony Brock\nVP HSSE & Engineering\nBP Exploration Alaska\nP.O. Box 196612\n900 E. Benson Blvd.\nAnchorage, Alaska 99519\nCPF 5-2010-5011M\nDear Mr. Brock:\nOn July 27-28, 2009, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected BP\nExploration Alaska’s (BPXA) procedures titled “Greater Prudhoe Bay Natural Gas Liquids\nPipeline Operation, Maintenance, Emergency Response Manual (OMER)” in Anchorage,\nAlaska.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nBPXA’s procedures, as described below:\n1. §195.1 Which pipelines are covered by this part?\n(a) Covered. Except for the pipelines listed in paragraph (b) of this section, this\npart applies to pipeline facilities and the transportation of hazardous liquids or\ncarbon dioxide associated with those facilities in or affecting interstate or foreign\ncommerce, including pipeline facilities on the Outer Continental Shelf (OCS).\nThis includes:\n\n\n\n(1) Any pipeline that transports a highly volatile liquid (HVL);\nThe operator’s procedures do not indicate that the 6” line running from Valve FV1206 to\nFlow Station 1 is DOT jurisdictional.\n2. §195.228 Welds and welding inspection: Standards of acceptability.\n(a) Each weld and welding must be inspected to insure compliance with the\nrequirements of this subpart. Visual inspection must be supplemented by\nnondestructive testing.\n(b) The acceptability of a weld is determined according to the standards in\nSection 9 of API 1104. However, if a girth weld is unacceptable under those\nstandards for a reason other than a crack, and if Appendix A to API 1104 (ibr,\nsee § 195.3) applies to the weld, the acceptability of the weld may be determined\nunder that appendix.\nBPXA’s procedure SPC-AK-43-331 (visual inspection of welding) is inadequate, because the\nprocedure did not require that visual inspection be conducted in accordance with API 1104.\nThe SPC-AK-43-331 procedure states that “all critical welds receive In Process visual weld\nexamination in accordance with ASME B31.3, paragraph 344.7. The operator’s NDE\ncontactor’s records indicated that the procedure for visual examination was performed to\nASME B31.3. BPXA’s Tier 2 DOT “Operations Maintenance and Emergency Manual\n(OMER), page 12 requires that all visual inspection be done to API 1104, section 4.4.6.b.\nCFR 195.228 requires the welds to be inspected to API 1104. The operator needs to revise\nSPC-AK-43-331 or write a procedure in accordance with CFR 195.228 and OMER Tier 2.\n3. §195.402(c)(7) Procedural manual for operations, maintenance, and\nemergencies.\n(7) Starting up and shutting down any part of the pipeline in a manner designed\nto assure operation within the limits prescribed by paragraph §195.406, consider\nthe hazardous liquid or carbon dioxide in transportation, variations in altitude\nalong the pipeline, and pressure monitoring and control devices.\nBPXA’s “DOT Operations, Maintenance, and Emergency Response (OMER) Manual” does\nnot include startup procedures for starting the line up after purging. The startup procedure in\nthe OMER assumed that the line is in the liquid state.\n\n\n\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance 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\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond\nwithin 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to\nfind facts as alleged in this Notice without further notice to you and to issue a Final Order.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged\nin this Notice, you may be ordered to amend your plans or procedures to correct the\ninadequacies (49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that\nyou submit your amended procedures to my office within 60 days of receipt of this Notice.\nThis period may be extended by written request for good cause. Once the inadequacies\nidentified herein have been addressed in your amended procedures, this enforcement action\nwill be closed.\nIn correspondence concerning this matter, please refer to CPF 5-2010-5011M and send all\nresponses to 188 W. Northern Lights Blvd. Suite 520, Anchorage, Alaska 99503. For each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nDennis Hinnah\nDeputy Director, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 B. Flanders (#123933)","truncated":false,"body_characters":16270}