FREEPORT-MCMORAN OIL & GAS — Notice of Probable Violation

case documentOfficial PDF520110002_NOPV PCO_01132011.pdf#

case documentOfficial PDF520110002_NOPV PCO_01132011_text.pdf#

party submissionOfficial PDF520110002_operator response_02072011.pdf#

520110002_Final Order_07272012_text.pdf, page 1Official PDFJULY 27, 2012 Mr. James C. Flores Chairman, President & Chief Executive Officer Plains Exploration & Production Company 700 Milam, Suite 3100 Houston, TX 77002 Re: CPF No. 5-2011-0002 Dear Mr. Flores: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation and finds that Plains Exploration & Production Company has completed the actions specified in the Notice to comply with the pipeline safety regulations. Therefore, this case is now 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. Steven P. Rusch, Vice President, Environmental, Health & Safety and Government Affairs – Plains Exploration & Production Company – 5640 S. Fairfax Ave., Los Angeles, CA 90056 Mr. Chris Hoidal, Director, Western Region, OPS Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

520110002_Final Order_07272012_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 ) ) Plains Exploration & Production Co., ) CPF No. 5-2011-0002 ) Respondent. ) ____________________________________) FINAL ORDER On October 12, 2010, 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 records of Plains Exploration & Production Company (Plains or Respondent) in Los Angeles, CA. Respondent’s Stocker gas gathering system is composed of 3.6 miles of natural gas gathering and transmission lines located in a high consequence area.1 As a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent, by letter dated January 13, 2011, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Plains violated 49 C.F.R. § 192.463 and proposed ordering Respondent to take certain measures to correct the alleged violation. Plains responded to the Notice by letter dated February 7, 2011 (Response). The company did not contest the allegations of violation but provided information concerning its corrective action. Respondent did not request a hearing and therefore has waived its right to one. FINDING OF VIOLATION In its Response, Plains did not contest the allegation in the Notice that it violated 49 C.F.R. Part 192, as follows: Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.463, which states: § 192.463 External corrosion control: Cathodic protection. (a) Each cathodic protection system required by this subpart must 1 Class 3, light population area. See 49 C.F.R. § 192.5.#

520110002_Final Order_07272012_text.pdf, page 32 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. (b) If amphoteric metals are included in a buried or submerged pipeline containing a metal of different anodic potential− (1) The amphoteric metals must be electrically isolated from the remainder of the pipeline and cathodically protected; or (2) The entire buried or submerged pipeline must be cathodically protected at a cathodic potential that meets the requirements of appendix D of this part for amphoteric metals. (c) The amount of cathodic protection must be controlled so as not to damage the protective coating or the pipe. The Notice alleged that Respondent violated 49 C.F.R. § 192.463 by failing to provide a level of cathodic protection that complies with one or more of the applicable criteria contained in appendix D or that is at least equal to one or more of the criteria outlined in § 192.463(b)-(c). 2 Specifically, the Notice alleged that the segment of pipeline from Plains’ Packard drill site to its Inglewood processing plant had insufficient levels of cathodic protection according to the pipe- to-soil potential monitoring conducted by Farwest Corrosion Control Company3 in August 2010. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.463 by failing to have a level of cathodic protection that complies with one or more of the applicable criteria contained in appendix D of Part 192. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 192.463. 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 indicates that Respondent has taken the following actions specified in the proposed compliance order: 1. With respect to the violation of § 192.463 (Item 1), Respondent has established a cathodic protection level that meets the criteria contained in Appendix D of Part 192. 2 The criteria contained in Appendix D of Part 192 apply in this case. 3 Respondent also contracted with Farwest to perform the November 2010 depolarization survey that established compliance with § 192.463.#

520110002_Final Order_07272012_text.pdf, page 43 Accordingly, I find that compliance has been achieved with respect to this violation. Therefore, the compliance terms proposed in the Notice are not included in this Order. 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#