{"operation":"document","citation":"CPF 520105027W","title":"MERIT ENERGY COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2010-10-20","effective_on":null,"summary":"CLOSED warning letter citing 195.402(c)(8), 195.412(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520105027w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520105027w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520105027w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520105027W","body":"Warning Letter involving MERIT ENERGY COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(8),  195.412(a). The case was opened on 2010-10-20 and is reported as closed as of 2010-10-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520105027W_warning letter_10202010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105027W/520105027W_warning%20letter_10202010.pdf\n\n520105027W_warning letter_10202010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105027W/520105027W_warning%20letter_10202010_text.pdf\n\n520105027W_warning letter_10202010_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 20, 2010\nMr. Jay Prudhomme\nVice President\nMerit Energy Company\n1327 Noel Road, Suite 500\nDallas, TX 75240\nCPF 5-2010-5027W\nDear Mr. Prudhomme:\nOn May 3 and May 4, and on August 12, 2010, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected your Sage Creek NGL pipeline in eastern Wyoming.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violations are:\n1. §195.412 Inspection of rights-of-way and crossings under navigable waters.\na) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times\neach calendar year, inspect the surface conditions on or adjacent to each pipeline\nright-of-way. Methods of inspection include walking, driving, flying or other\nappropriate mean of traversing the right-of-way.\n\n\n\nMerit failed to perform 26 right-of-way (ROW) inspections of their Sage Creek NGL pipeline\nat the required intervals in 2008. During our records review of Merit’s ROW inspection\nprogram, our inspector noted that Merit only completed 24 ROW inspections of the Sage\nCreek NGL Pipeline in calendar year 2008. These ROW inspections consisted of 23 aerial\npatrols and one ground patrol. Three of these ROW patrols exceeded the three-week\nrequirements by one day; those late patrols occurred between 3/28 and 4/19, 5/30 and 6/21,\nand 8/7 and 8/29, respectively. Furthermore, one ROW patrol exceeded the three-week\nrequirements by two days; that patrol occurred between 9/24 and 10/17. Lastly, one 24 ROW\npatrol exceeded the three-week requirements by five days; that patrol occurred between 8/29\nand 9/24. Discussions with Merit personnel revealed that their ROW contract only required\ntheir contract pilot to fly twice per month which would result in only 24 ROW inspections\nbeing done each year. However, Merit did inform PHMSA that this deficiency had been\ncorrected.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a)\nof this section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(8) In the case of pipeline that is not equipped to fail safe, monitoring from an\nattended location pipeline pressure during startup until steady state pressure and\nflow conditions are reached and during shut-in to assure operation within limits\nprescribed by §195.406.\nMerit failed to monitor pressures during startup and shut-in operations on their Sage Creek\nNGL between June 10, 2010 and August 11, 2010. The Sage Creek NGL pipeline operations\npersonnel stated that Merit had lost the ability to monitor and record pressures continuously at\ntheir Sage Creek NGL pipeline meter station. The pipeline is designed to ship product in\nbatches and the pump is designed to cycle frequently during the day. Merit did check and\nrecord the pressures at their Sage Creek Gas Processing Plant pump station between each shift\nbut they did not monitor pipeline pressures continuously. After correcting the problem, Merit\nwas able to obtain the pressure records during this time period from ConocoPhillips in order to\nensure they did not exceed their operational limits. Regardless, an operator is required to\nmonitor pressure during startup until steady state pressure and flow conditions are reached,\nand during shut-in to assure operation within limits prescribed by §195.406.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000\nfor any related series of violations. We have reviewed the circumstances and supporting\ndocuments involved in this case and have decided not to conduct additional enforcement\naction or penalty assessment proceedings at this time. We advise you to promptly correct\nthese items. Be advised that failure to do so may result in Merit being subject to additional\nenforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2010-5027W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any portion\nof your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along\nwith the complete original document you must provide a second copy of the document with\nthe portions you believe qualify for confidential treatment redacted and an explanation of why\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 G. Davis (#128461)\n3","truncated":false,"body_characters":5684}