{"operation":"document","citation":"CPF 520160017W","title":"HILCORP ALASKA, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-09-06","effective_on":null,"summary":"CLOSED warning letter citing 192.631(c)(1), 192.631(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160017w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160017w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160017w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520160017W","body":"Warning Letter involving HILCORP ALASKA, LLC. PHMSA's enforcement data identifies the cited regulations as 192.631(c)(1),  192.631(c)(3). The case was opened on 2016-09-06 and is reported as closed as of 2016-09-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520160017W_Warning Letter_09062016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160017W/520160017W_Warning%20Letter_09062016.pdf\n\n520160017W_Warning Letter_09062016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160017W/520160017W_Warning%20Letter_09062016_text.pdf\n\n520160017W_Warning Letter_09062016_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 6, 2016\nMr. Greg Lalicker\nPresident\nHilcorp Alaska, LLC\n1201 Louisiana Street, Suite 1400\nHouston, Texas 77002\nCPF 5-2016-0017W\nDear Mr. Lalicker:\nOn May 9 through May 11, 2016, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected Hilcorp Alaska, LLC (Hilcorp) Harvest Kenai control room in Kenai Alaska and\nassociated Control Room Management (CRM) Plan in Anchorage, Alaska.\nAs a result of the inspection, it is alleged that Hilcorp has committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected\nand the probable violations are:\n1. §192.631 Control room management.\n(c) Provide adequate information. Each operator must provide its controllers\nwith the information, tools, processes and procedures necessary for the\ncontrollers to carry out the roles and responsibilities the operator has defined by\nperforming each of the following:\n(3) Test and verify an internal communication plan to provide adequate means\nfor manual operation of the pipeline safely, at least once each calendar year, but\nat intervals not to exceed 15 months;\n\n\n\nHilcorp did not test and verify the internal communication plan for manual operation of the\npipeline at the required interval of at least once per calendar year, not to exceed 15 months.\nHilcorp provided documentation of a March 2016 drill testing the internal communications\nplan. However, according to records provided to PHMSA and discussions with the operator,\nan internal communication plan was not tested prior to March 2016. Hilcorp began operating\nCook Inlet pipelines in 2012 and did not test the plan within 15 months of that time and\nannually since then.\n2. §192.631 Control room management.\n(c) Provide adequate information. Each operator must provide its controllers\nwith the information, tools, processes and procedures necessary for the\ncontrollers to carry out the roles and responsibilities the operator has defined by\nperforming each of the following:\n(1) Implement sections 1, 4, 8, 9, 11.1, and 11.3 of API RP 1165 (incorporated by\nreference, see § 192.7) whenever a SCADA system is added, expanded or\nreplaced, unless the operator demonstrates that certain provisions of sections 1,\n4, 8, 9, 11.1, and 11.3 of API RP 1165 are not practical for the SCADA system\nused;\nHilcorp did not adequately implement the codified API 1165 display standards as of the May\n2016 inspection by PHMSA. API 1165 (first edition, January 2007) is incorporated by\nreference in 49 CFR 192.631(c)(1) and 49 CFR 195.446 (c)(1). Hilcorp provided\ndocumentation to the PHMSA inspectors that it had conducted a third-party audit in 2015 of\nits CRM displays against the API 1165 requirements; implemented a number of the third-\nparty’s findings; rejected some findings as not applicable or not practical; and was in the\nprocess of implementing other findings. However, Hilcorp has operated a control room in\nCook Inlet since 2012 and, as of May 2016, Hilcorp has not implemented several of the\ncodified sections of API 1165.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a\nrelated series of violations. For violations occurring between January 4, 2012 and August 1,\n2016, the maximum penalty may not exceed $200,000 per violation per day, with a maximum\npenalty not to exceed $2,000,000 for a related series of violations. We have reviewed the\ncircumstances and supporting documents involved in this case, and have decided not to\nconduct additional enforcement action or penalty assessment proceedings at this time. We\nadvise you to correct the items identified in this letter. Failure to do so will result in Hilcorp\nbeing subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2016-0017W. 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\n\n\n\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 J. Gano, R. Guisinger (#152893)\nMr. Richard Novcaski, Vice President and Alaska Operations Manager for Harvest\nAlaska LLC.","truncated":false,"body_characters":5535}