{"operation":"document","citation":"CPF 520151009W","title":"PARAMOUNT PETROLEUM CORP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-07-01","effective_on":null,"summary":"CLOSED warning letter citing 192.616(a), 192.616(b), 192.616(c), 192.616(d), 192.616(g), 192.616(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520151009w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520151009w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520151009w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520151009W","body":"Warning Letter involving PARAMOUNT PETROLEUM CORP. PHMSA's enforcement data identifies the cited regulations as 192.616(a),  192.616(b),  192.616(c),  192.616(d),  192.616(g),  192.616(i). The case was opened on 2015-07-01 and is reported as closed as of 2015-07-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520151009W_warning letter_07012015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520151009W/520151009W_warning%20letter_07012015.pdf\n\n520151009W_warning letter_07012015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520151009W/520151009W_warning%20letter_07012015_text.pdf\n\n520151009W_warning letter_07012015_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 1, 2015\nMr. Stephen Peyton\nParamount Petroleum Corporation (PPC)\n14700 Downey Ave.\nParamount, CA 90723\nCPF 5-2015-1009W\nDear Mr. Peyton:\nPHMSA conducted an internal audit of its past regulatory inspection and discovered that this\nenforcement letter was not issued. PHMSA must ensure that all violations revealed during\npast inspection are provided to pipeline operators so they can remedy them. We apologize for\nthe tardiness of this letter but we need to ensure you address the regulatory deficiencies to\nprovide for public safety.\nOn October 10, 2012, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your\nPublic Awareness Program in Paramount, California.\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:\n\n\n\n1. 192.616 Public Awareness\n(a) Except for an operator of a master meter or petroleum gas system covered\nunder paragraph (j) of this section, each pipeline operator must develop and\nimplement a written continuing public education program that follows the\nguidance provided in the American Petroleum Institute's (API) Recommended\nPractice (RP) 1162 (incorporated by reference, see § 192.7).\n(b) The operator's program must follow the general program recommendations\nof API RP 1162 and assess the unique attributes and characteristics of the\noperator's pipeline and facilities.\nThe operator's program did not follow the general program recommendations of API RP 1162\nSection 2.7 Step 4. The program did assess the unique attributes and characteristics of the\noperator's pipeline and facilities. Attributes and characteristics must include items such as\n(but not limited to) designation of transmission, distribution, gathering, the pipe’s physical\nproperties (diameter, wall thickness, etc.); the number of pipelines in the right-of-way\n(ROW); the location of above ground facilities along the ROW; the chemical and physical\nproperties of the products transported, applicable high consequence areas; applicable special\npermits, liquefied natural gas, highly volatile liquids, carbon dioxide, propane, anhydrous\nammonia, compressor stations, valves, breakout tanks, odorizer, etc.). PPC, in its public\nawareness plan, defined some specific pipelines and facilities but did not include 11 miles of\nintrastate natural gas transmission pipeline in Kern County, CA, in its plan.\n2. 192.616 Public Awareness\n(a) Except for an operator of a master meter or petroleum gas system covered\nunder paragraph (j) of this section, each pipeline operator must develop and\nimplement a written continuing public education program that follows the\nguidance provided in the American Petroleum Institute's (API) Recommended\nPractice (RP) 1162 (incorporated by reference, see § 192.7).\n(d) The operator's program must specifically include provisions to educate the\npublic, appropriate government organizations, and persons engaged in\nexcavation related activities on:\n(1) Use of a one-call notification system prior to excavation and other damage\nprevention activities;\n(2) Possible hazards associated with unintended releases from a gas pipeline\nfacility;\n(3) Physical indications that such a release may have occurred;\n(4) Steps that should be taken for public safety in the event of a gas pipeline\nrelease; and\n(5) Procedures for reporting such an event.\nThe operator’s program did not specifically include provisions to educate the public,\nappropriate government organizations, and the people who are engaged in excavation related\n2\n\n\n\nactivities. For the affected public located along transmission pipeline ROW, and work by\nplaces of congregation, it is recommended that transmission pipeline operators provide\ncommunications within a minimum coverage area distance of 660 feet on each side of the\npipeline, or as much as 1000 feet in some cases. The transmission pipeline operator should\ntailor its communications coverage area (buffer) to fit its particular pipeline, location, and\npotential impact consequences.\nPPC established methods to identify the individual stakeholders in the four effected\nstakeholder audience but failed to define stakeholders’ notification areas, distances, buffer\nzones and/or tolerances for stakeholder groups along it liquid and natural gas pipelines as\nrequired by API RP 1162 Appendix B.\n3. 192.616 Public Awareness\nExcept for an operator of a master meter or petroleum gas system covered under\nparagraph (j) of this section, each pipeline operator must develop and implement\na written continuing public education program that follows the guidance\nprovided in the American Petroleum Institute's (API) Recommended Practice\n(RP) 1162 (incorporated by reference, see § 192.7).\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator\nprovides justification in its program or procedural manual as to why compliance\nwith all or certain provisions of the recommended practice is not practicable and\nnot necessary for safety.\n(i) The operator's program documentation and evaluation results must be\navailable for periodic review by appropriate regulatory agencies.\nEach operator must follow the general program recommendations, including baseline and\nsupplemental requirements of API RP 1162, unless the operator provides justification in its\nprogram or procedural manual as to why compliance with all or certain provisions of the\nrecommended practice is not practicable and not necessary for safety. Operators need to\nevaluate its PAP annually by internal review, third party assessment or regulatory inspection.\nThe intent of the evaluation process is to measure program implementation and program\neffectiveness for continuous improvement. Improvements should relate to the operator’s PAP\nas it pertains to items addressed in the regulations or in the baseline and supplemental\nprovisions of API RP 1162. The primary purposes of the evaluation of the PAP are to assess\nwhether the current program is effective in achieving the objectives outlined in API 1162\nSection 2.1 and provide the operator information on implementing improvements in its PAP.\nBy measuring the program effectiveness, the operator should assess progress in the following\nmeasures;\n• Whether the information is reaching the intended Audience\n• If the recipient audiences understand the messages delivered\n• Whether the recipients are motivated to respond, and\n3\n\n\n\n• If the implementation of PAP is impacting bottom-line results\nPPC in its PAP section 8 states “the program will be evaluated at least annually to assess both\nthe program implementation and the effectiveness of the plan”. PPC, however, failed to\nevaluate its PAP since 2006 and did not have any justification to why certain provisions of the\nrecommended practice were not necessary. PPC also did not specify the evaluation\ntechniques as required by API RP 1162 Table 8-1. Finally, PPC did conduct an effectiveness\nevaluation of its program within 4 years after the initial program implementation in 2006.\n4. 192.616 Public Awareness\n(a) Except for an operator of a master meter or petroleum gas system covered\nunder paragraph (j) of this section, each pipeline operator must develop and\nimplement a written continuing public education program that follows the\nguidance provided in the American Petroleum Institute's (API) Recommended\nPractice (RP) 1162 (incorporated by reference, see § 192.7).\n(g) The program must be conducted in English and in other languages\ncommonly understood by a significant number and concentration of the non-\nEnglish speaking population in the operator's area.\nEach operator should develop and deliver materials and messages in English and in other\nlanguages commonly understood by a significant number and concentration of non-English\nspeaking populations in the operator’s areas. Operator needs to identify the sources of\ninformation used to determine the need for additional languages. Census data, County\ncourthouse records, School system records, and Emergency response and/or hospital data are\nsome of the source the operators can use.\nPPC has developed and delivered materials and messages in English and in other languages,\nSpanish, commonly understood by a significant number and concentration of non-English\nspeaking populations in the operator’s areas. However, PPC failed to identify the process and\nthe source it used to determine the need for additional language.\n5. 192.616 Public Awareness\n(a) Except for an operator of a master meter or petroleum gas system covered\nunder paragraph (j) of this section, each pipeline operator must develop and\nimplement a written continuing public education program that follows the\nguidance provided in the American Petroleum Institute's (API) Recommended\nPractice (RP) 1162 (incorporated by reference, see § 192.7).\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator\nprovides justification in its program or procedural manual as to why compliance\nwith all or certain provisions of the recommended practice is not practicable and\nnot necessary for safety.\n4\n\n\n\nEach operator’s delivery for materials and messages should meet or exceed the baseline\nfrequencies specified in API RP 1162 for each stakeholder audience. These message\ndeliveries should meet the baseline and supplemental frequencies in API RP 1162 Table 2-1,\nor those in the operator's PAP, whichever are more stringent.\nPPC failed to deliver baseline messages to each stakeholder audience within the required\nbaseline frequency according to API 1162 Tables 2-1. PPC purchased the 11 miles gas\ntransmission pipeline in Kern County in 2009 but its PAP was in place since 2006. PPC did\nnot deliver its baseline massages to the stakeholders along its gas transmission pipeline since\n2009.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a\nrelated series of violations. For violations occurring prior to January 4, 2012, the maximum\npenalty may not exceed $100,000 per violation per day, with a maximum penalty not to\nexceed $1,000,000 for a related series of violations. We have reviewed the circumstances and\nsupporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct\nthe item(s) identified in this letter.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2015-1009W. 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\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong with the complete original document you must provide a second copy of the document\nwith the portions you believe qualify for confidential treatment redacted and an explanation of\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nPHMSA does apologize for any inconvenience or confusion that this delayed enforcement let\nmight cause. If there are any questions concerning this letter, please do not hesitate to contact\nme at (720) 963-3160. Thank you for your cooperation in this matter.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 H. Monfared\n5","truncated":false,"body_characters":12552}