{"operation":"document","citation":"CPF 520180009M","title":"AIX ENERGY LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-11-06","effective_on":null,"summary":"CLOSED notice of amendment citing 192.615(a)(10), 192.631(a)(1)(ii), 192.909(b), 192.915(a), 192.915(b), 192.917(b), 192.933(a), 192.935(b)(1)(iv), 192.937(c)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520180009m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520180009m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520180009m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520180009M","body":"Notice of Amendment involving AIX ENERGY LLC. PHMSA's enforcement data identifies the cited regulations as 192.615(a)(10),  192.631(a)(1)(ii),  192.909(b),  192.915(a),  192.915(b),  192.917(b),  192.933(a),  192.935(b)(1)(iv),  192.937(c)(2). The case was opened on 2018-11-06 and is reported as closed as of 2019-04-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520180009M_Closure Letter_04082019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Closure%20Letter_04082019.pdf\n\n520180009M_Closure Letter_04082019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Closure%20Letter_04082019_text.pdf\n\n520180009M_Notice of Amendment Revised Version_11062018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Notice%20of%20Amendment%20Revised%20Version_11062018.pdf\n\n520180009M_Notice of Amendment Revised Version_11062018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Notice%20of%20Amendment%20Revised%20Version_11062018_text.pdf\n\n520180009M_Notice of Amendment_08292018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Notice%20of%20Amendment_08292018.pdf\n\n520180009M_Notice of Amendment_08292018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Notice%20of%20Amendment_08292018_text.pdf\n\n520180009M_Operator Response to Notice_12042018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180009M/520180009M_Operator%20Response%20to%20Notice_12042018.pdf\n\n520180009M_Notice of Amendment Revised Version_11062018_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 6, 2018\nMr. Ronald C. Nutt\nChief Operating Officer\nAIX Energy LLC\n2441 High Timbers\nSuite 120\nThe Woodlands, Texas 77380\nCPF 5-2018-0009M\nDear Mr. Nutt:\nOn March 12 through 15, 2018, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected AIX Energy, LLC’s procedures for Operations and Maintenance, Emergency\nResponse, Control Room Management, and Integrity Management in Kenai, Alaska.\nOn the basis of the inspection, PHMSA has identified apparent inadequacies found within\nAIX’s plans or procedures, as described below:\n1. § 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n…\n(10) Beginning action under § 192.617, if applicable, as soon after the end of the\nemergency as possible.\nAIX's Emergency Response Plan does not have provisions for \"Beginning action under\n§ 192.617, if applicable, as soon after the end of the emergency as possible” AIX failed to\n\n\n\nproduce written procedures describing how AIX will conduct accident investigations\nconsistent with § 192.617, and failed to include provisions in their Emergency Response Plan\nfor conducting accident investigations following emergencies.\n2. § 192.631 Control room management.\n(a) General. (1) This section applies to each operator of a pipeline facility with a\ncontroller working in a control room who monitors and controls all or part of a\npipeline facility through a SCADA system. Each operator must have and follow\nwritten control room management procedures that implement the requirements\nof this section, except that for each control room where an operator's activities\nare limited to either or both of:\n…\n(ii) Transmission without a compressor station, the operator must have and\nfollow written procedures that implement only paragraphs (d) (regarding\nfatigue), (i) (regarding compliance validation), and (j) (regarding compliance and\ndeviations) of this section.\nAIX’s written control room management procedures lack the fatigue training and education\nprocess required by §§ 192.631(d)(2) and 192.631(d)(3). Their document titled “Control\nRoom Management, Kenai Loop Pipeline” contains general provisions for fatigue mitigation\nand states that “Operators must train controllers and their supervisors to recognize the effects\nof fatigue and implement fatigue mitigation strategies,” but has no specific process describing\nhow AIX will implement such training.\n3. § 192.909 How can an operator change its integrity management program?\n…\n(b) Notification. An operator must notify OPS, in accordance with § 192.949, of\nany change to the program that may substantially affect the program's\nimplementation or may significantly modify the program or schedule for\ncarrying out the program elements. An operator must also notify a State or local\npipeline safety authority when either a covered segment is located in a State\nwhere OPS has an interstate agent agreement, or an intrastate covered segment is\nregulated by that State. An operator must provide the notification within 30 days\nafter adopting this type of change into its program.\nAIX's written Integrity Management Plan (Revision 2, dated March 9, 2018) (“the IMP”) does\nnot have written procedures consistent with § 192.909(b) for notifying PHMSA of changes to\ntheir integrity management program. The IMP has a process for making changes to the IMP\n(specifically located in “Section 1 – Changing This IMP”), but fails to describe how and\nunder what circumstance AIX must notify PHMSA of the changes made.\n4. § 192.915 What knowledge and training must personnel have to carry out an\nintegrity management program?\n(a) Supervisory personnel. The integrity management program must provide\nthat each supervisor whose responsibilities relate to the integrity management\nprogram possesses and maintains a thorough knowledge of the integrity\n2\n\n\n\nmanagement program and of the elements for which the supervisor is\nresponsible. The program must provide that any person who qualifies as a\nsupervisor for the integrity management program has appropriate training or\nexperience in the area for which the person is responsible.\nAIX failed to establish written procedures to \"provide that any person who qualifies as a\nsupervisor for the integrity management program has appropriate training or experience in the\narea for which the person is responsible\" in their IMP. The IMP includes table which cross-\nreferences paragraphs of 192 Subpart O with the applicable section of the IMP. Regarding §\n192.915, the cross refence table states “Experience or training Required” without elaboration\nor cross-reference to other parts of the IMP. The IMP does not describe how AIX will\nprovide supervisory training and experience consistent with § 192.915(a).\n5. § 192.915 What knowledge and training must personnel have to carry out an\nintegrity management program?\n…\n(b) Persons who carry out assessments and evaluate assessment results. The\nintegrity management program must provide criteria for the qualification of any\nperson—\n(1) Who conducts an integrity assessment allowed under this subpart; or\n(2) Who reviews and analyzes the results from an integrity assessment and\nevaluation; or\n(3) Who makes decisions on actions to be taken based on these assessments.\nAIX failed to specify criteria for personnel who conduct integrity assessments, review and\nanalyze their results, or make decisions based on those results in their IMP. The IMP includes\ntable which cross-references paragraphs of 192 Subpart O with the applicable section of the\nIMP. Regarding § 192.915, the cross refence table states “Experience or training Required”\nwithout elaboration or cross-reference to other parts of the IMP. The IMP does not describe\nhow AIX will provide knowledge and training to personnel who carry out an integrity\nmanagement program consistent with § 192.915(b).\n6. § 192.917 How does an operator identify potential threats to pipeline integrity\nand use the threat identification in its integrity program?\n…\n(b) Data gathering and integration. To identify and evaluate the potential\nthreats to a covered pipeline segment, an operator must gather and integrate\nexisting data and information on the entire pipeline that could be relevant to the\ncovered segment. In performing this data gathering and integration, an operator\nmust follow the requirements in ASME/ANSI B31.8S, section 4. At a minimum,\nan operator must gather and evaluate the set of data specified in Appendix A to\nASME/ANSI B31.8S, and consider both on the covered segment and similar non-\ncovered segments, past incident history, corrosion control records, continuing\nsurveillance records, patrolling records, maintenance history, internal inspection\nrecords and all other conditions specific to each pipeline.\n3\n\n\n\nAIX failed to follow the requirements of ASME/ANSI B31.8S, Section 4 in preparing their\nIMP. Section 3.2 of the AIX’s IMP, “Data Gathering and Integration” incorrectly identifies\nthe Kenai Loop Pipeline as an HDPE pipeline. “Material properties” is one required\nminimum data element in specified in ASME/ANSI B31.8S, Section 4.\n7. § 192.933 What actions must be taken to address integrity issues?\n(a) General requirements. An operator must take prompt action to address all\nanomalous conditions the operator discovers through the integrity assessment.\nIn addressing all conditions, an operator must evaluate all anomalous conditions\nand remediate those that could reduce a pipeline's integrity. An operator must be\nable to demonstrate that the remediation of the condition will ensure the\ncondition is unlikely to pose a threat to the integrity of the pipeline until the next\nreassessment of the covered segment.\nAIX failed to establish a process in their IMP to \"address all anomalous conditions the\noperator discovers through the integrity assessment\" consistent with §§ 192.933(a) through\n192.933(d). On Page 8 under the table “Cross-Reference with 49 CFR 192 Subpart O,” the\nIMP directs the reader to “Section 5 – Additional Preventative and Mitigative Measures” for a\ndiscussion of how the IMP address the requirements of § 192.933. However, the IMP has no\nwritten procedures for address anomalous conditions consistent with §§ 192.933(a) through\n192.933(d) in Section 5 nor elsewhere in the IMP.\n8. § 192.935 What additional preventive and mitigative measures must an operator\ntake?\n…\n(b) Third party damage and outside force damage—\n(1) Third party damage. An operator must enhance its damage prevention\nprogram, as required under § 192.614 of this part, with respect to a covered\nsegment to prevent and minimize the consequences of a release due to third party\ndamage. Enhanced measures to an existing damage prevention program include,\nat a minimum—\n(iv) Monitoring of excavations conducted on covered pipeline segments by\npipeline personnel. If an operator finds physical evidence of encroachment\ninvolving excavation that the operator did not monitor near a covered segment,\nan operator must either excavate the area near the encroachment or conduct an\nabove ground survey using methods defined in NACE SP0502 (incorporated by\nreference, see §192.7). An operator must excavate, and remediate, in accordance\nwith ANSI/ASME B31.8S and § 192.933 any indication of coating holidays or\ndiscontinuity warranting direct examination.\nAIX failed to enhance their damage prevention program to include a written process for\nmonitoring excavations on the covered segment consistent with § 192.935(b)(1)(iv). Neither\nAIX’s IMP nor their written damage prevention program describe how AIX will excavate the\narea near the encroachment or conduct an above ground survey using methods defined in\nNACE SP0502 if the AIX finds physical evidence of encroachment.\n4\n\n\n\n9. § 192.937 What is a continual process of evaluation and assessment to maintain\na pipeline's integrity?\n…\n(c) Assessment methods. In conducting the integrity reassessment, an operator\nmust assess the integrity of the line pipe in the covered segment by any of the\nfollowing methods as appropriate for the threats to which the covered segment is\nsusceptible (see § 192.917), or by confirmatory direct assessment under the\nconditions specified in § 192.931.\n(2) Pressure test conducted in accordance with subpart J of this part. An\noperator must use the test pressures specified in Table 3 of section 5 of\nASME/ANSI B31.8S, to justify an extended reassessment interval in accordance\nwith § 192.939.\nAIX failed to specify correct assessment methods for conducting integrity reassessments in\ntheir IMP. Section 6.2.2 of AIX’s IMP incorrectly specifies “§ 192.513 Test Requirements\nfor Plastic Pipelines” as the applicable pressure test assessment method for the Kenai Loop\nPipeline, which is a steel pipeline.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. 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).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in\nthis Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as\nalleged in this Notice without further notice to you and to issue an Order Directing\nAmendment. If your plans or procedures are found inadequate as alleged in this Notice, you\nmay be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. §\n190.206). If you are not contesting this Notice, we propose that you submit your amended\nprocedures to my office within 90 days of receipt of this Notice. This period may be extended\nby written request for good cause. Once the inadequacies identified herein have been\naddressed in your amended procedures, this enforcement action will be closed.\nIt is requested (not mandated) that AIX maintain documentation of the safety improvement\ncosts associated with fulfilling this Notice of Amendment (preparation/revision of plans,\n5\n\n\n\nprocedures) and submit the total to Kim West, Director, Western, Pipeline and Hazardous\nMaterials Safety Administration. In correspondence concerning this matter, please refer to\nCPF 5-2018-0009M and, for each document you submit, please provide a copy in electronic\nformat whenever possible.\nSincerely,\nKim West\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Gano (#155860)\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n6\n\n520180009M_Closure Letter_04082019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 8, 2019\nMr. Ronald C. Nutt\nChief Operating Officer\nAIX Energy LLC.\n2441 High Timbers Drive., Suite 120\nThe Woodlands, Texas 77380\nCPF 5-2018-0009M\nCase Closure\nDear Mr. Nutt:\nOn March 12 through 15, 2018, a representative from the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of AIX Energy LLC’s (AIX) operations,\nmaintenance and emergency procedures for its pipeline facilities in Kenai, Alaska. As a result\nof the inspection, AIX was issued a Notice of Amendment on November 6, 2018 which\nproposed amendment of your procedures.\nAIX submitted its amended procedures dated February 6, 2019. Our staff reviewed the\namended procedures. We determined 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\nyou for your cooperation.\nSincerely,\nChris Hoidal\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 Jake Gano (#155860)\n\n520180009M_Notice of Amendment_08292018_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 29, 2018\nMr. Randy Bates\nManaging Director\nBranta E&P\n2441 High Timbers, Suite 120\nThe Woodlands, TX 77380\nCPF 5-2018-0009M\nDear Mr. Bates:\nOn March 12 through 15, 2018, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected AIX Energy, LLC’s procedures for Operations and Maintenance, Emergency\nResponse, Control Room Management, and Integrity Management in Kenai, Alaska.\nOn the basis of the inspection, PHMSA has identified apparent inadequacies found within\nAIX’s plans or procedures, as described below:\n1. § 192.615 Emergency plans.\n(a) Each operator shall establish written procedures to minimize the hazard\nresulting from a gas pipeline emergency. At a minimum, the procedures must\nprovide for the following:\n…\n(10) Beginning action under § 192.617, if applicable, as soon after the end of the\nemergency as possible.\nAIX's Emergency Response Plan does not have provisions for \"Beginning action under\n§ 192.617, if applicable, as soon after the end of the emergency as possible” AIX failed to\nproduce written procedures describing how AIX will conduct accident investigations\nconsistent with § 192.617, and failed to include provisions in their Emergency Response Plan\n\n\n\nfor conducting accident investigations following emergencies.\n2. § 192.631 Control room management.\n(a) General. (1) This section applies to each operator of a pipeline facility with a\ncontroller working in a control room who monitors and controls all or part of a\npipeline facility through a SCADA system. Each operator must have and follow\nwritten control room management procedures that implement the requirements\nof this section, except that for each control room where an operator's activities\nare limited to either or both of:\n…\n(ii) Transmission without a compressor station, the operator must have and\nfollow written procedures that implement only paragraphs (d) (regarding\nfatigue), (i) (regarding compliance validation), and (j) (regarding compliance and\ndeviations) of this section.\nAIX’s written control room management procedures lack the fatigue training and education\nprocess required by §§ 192.631(d)(2) and 192.631(d)(3). Their document titled “Control\nRoom Management, Kenai Loop Pipeline” contains general provisions for fatigue mitigation\nand states that “Operators must train controllers and their supervisors to recognize the effects\nof fatigue and implement fatigue mitigation strategies,” but has no specific process describing\nhow AIX will implement such training.\n3. § 192.909 How can an operator change its integrity management program?\n…\n(b) Notification. An operator must notify OPS, in accordance with § 192.949, of\nany change to the program that may substantially affect the program's\nimplementation or may significantly modify the program or schedule for\ncarrying out the program elements. An operator must also notify a State or local\npipeline safety authority when either a covered segment is located in a State\nwhere OPS has an interstate agent agreement, or an intrastate covered segment is\nregulated by that State. An operator must provide the notification within 30 days\nafter adopting this type of change into its program.\nAIX's written Integrity Management Plan (Revision 2, dated March 9, 2018) (“the IMP”) does\nnot have written procedures consistent with § 192.909(b) for notifying PHMSA of changes to\ntheir integrity management program. The IMP has a process for making changes to the IMP\n(specifically located in “Section 1 – Changing This IMP”), but fails to describe how and\nunder what circumstance AIX must notify PHMSA of the changes made.\n4. § 192.915 What knowledge and training must personnel have to carry out an\nintegrity management program?\n(a) Supervisory personnel. The integrity management program must provide\nthat each supervisor whose responsibilities relate to the integrity management\nprogram possesses and maintains a thorough knowledge of the integrity\nmanagement program and of the elements for which the supervisor is\nresponsible. The program must provide that any person who qualifies as a\n2\n\n\n\nsupervisor for the integrity management program has appropriate training or\nexperience in the area for which the person is responsible.\nAIX failed to establish written procedures to \"provide that any person who qualifies as a\nsupervisor for the integrity management program has appropriate training or experience in the\narea for which the person is responsible\" in their IMP. The IMP includes table which cross-\nreferences paragraphs of 192 Subpart O with the applicable section of the IMP. Regarding §\n192.915, the cross refence table states “Experience or training Required” without elaboration\nor cross-reference to other parts of the IMP. The IMP does not describe how AIX will\nprovide supervisory training and experience consistent with § 192.915(a).\n5. § 192.915 What knowledge and training must personnel have to carry out an\nintegrity management program?\n…\n(b) Persons who carry out assessments and evaluate assessment results. The\nintegrity management program must provide criteria for the qualification of any\nperson—\n(1) Who conducts an integrity assessment allowed under this subpart; or\n(2) Who reviews and analyzes the results from an integrity assessment and\nevaluation; or\n(3) Who makes decisions on actions to be taken based on these assessments.\nAIX failed to specify criteria for personnel who conduct integrity assessments, review and\nanalyze their results, or make decisions based on those results in their IMP. The IMP includes\ntable which cross-references paragraphs of 192 Subpart O with the applicable section of the\nIMP. Regarding § 192.915, the cross refence table states “Experience or training Required”\nwithout elaboration or cross-reference to other parts of the IMP. The IMP does not describe\nhow AIX will provide knowledge and training to personnel who carry out an integrity\nmanagement program consistent with § 192.915(b).\n6. § 192.917 How does an operator identify potential threats to pipeline integrity\nand use the threat identification in its integrity program?\n…\n(b) Data gathering and integration. To identify and evaluate the potential\nthreats to a covered pipeline segment, an operator must gather and integrate\nexisting data and information on the entire pipeline that could be relevant to the\ncovered segment. In performing this data gathering and integration, an operator\nmust follow the requirements in ASME/ANSI B31.8S, section 4. At a minimum,\nan operator must gather and evaluate the set of data specified in Appendix A to\nASME/ANSI B31.8S, and consider both on the covered segment and similar non-\ncovered segments, past incident history, corrosion control records, continuing\nsurveillance records, patrolling records, maintenance history, internal inspection\nrecords and all other conditions specific to each pipeline.\nAIX failed to follow the requirements of ASME/ANSI B31.8S, Section 4 in preparing their\nIMP. Section 3.2 of the AIX’s IMP, “Data Gathering and Integration” incorrectly identifies\n3\n\n\n\nthe Kenai Loop Pipeline as an HDPE pipeline. “Material properties” is one required\nminimum data element in specified in ASME/ANSI B31.8S, Section 4.\n7. § 192.933 What actions must be taken to address integrity issues?\n(a) General requirements. An operator must take prompt action to address all\nanomalous conditions the operator discovers through the integrity assessment.\nIn addressing all conditions, an operator must evaluate all anomalous conditions\nand remediate those that could reduce a pipeline's integrity. An operator must be\nable to demonstrate that the remediation of the condition will ensure the\ncondition is unlikely to pose a threat to the integrity of the pipeline until the next\nreassessment of the covered segment.\nAIX failed to establish a process in their IMP to \"address all anomalous conditions the\noperator discovers through the integrity assessment\" consistent with §§ 192.933(a) through\n192.933(d). On Page 8 under the table “Cross-Reference with 49 CFR 192 Subpart O,” the\nIMP directs the reader to “Section 5 – Additional Preventative and Mitigative Measures” for a\ndiscussion of how the IMP address the requirements of § 192.933. However, the IMP has no\nwritten procedures for address anomalous conditions consistent with §§ 192.933(a) through\n192.933(d) in Section 5 nor elsewhere in the IMP.\n8. § 192.935 What additional preventive and mitigative measures must an operator\ntake?\n…\n(b) Third party damage and outside force damage—\n(1) Third party damage. An operator must enhance its damage prevention\nprogram, as required under § 192.614 of this part, with respect to a covered\nsegment to prevent and minimize the consequences of a release due to third party\ndamage. Enhanced measures to an existing damage prevention program include,\nat a minimum—\n(iv) Monitoring of excavations conducted on covered pipeline segments by\npipeline personnel. If an operator finds physical evidence of encroachment\ninvolving excavation that the operator did not monitor near a covered segment,\nan operator must either excavate the area near the encroachment or conduct an\nabove ground survey using methods defined in NACE SP0502 (incorporated by\nreference, see §192.7). An operator must excavate, and remediate, in accordance\nwith ANSI/ASME B31.8S and § 192.933 any indication of coating holidays or\ndiscontinuity warranting direct examination.\nAIX failed to enhance their damage prevention program to include a written process for\nmonitoring excavations on the covered segment consistent with § 192.935(b)(1)(iv). Neither\nAIX’s IMP nor their written damage prevention program describe how AIX will excavate the\narea near the encroachment or conduct an above ground survey using methods defined in\nNACE SP0502 if the AIX finds physical evidence of encroachment.\n4\n\n\n\n9. § 192.937 What is a continual process of evaluation and assessment to maintain\na pipeline's integrity?\n…\n(c) Assessment methods. In conducting the integrity reassessment, an operator\nmust assess the integrity of the line pipe in the covered segment by any of the\nfollowing methods as appropriate for the threats to which the covered segment is\nsusceptible (see § 192.917), or by confirmatory direct assessment under the\nconditions specified in § 192.931.\n(2) Pressure test conducted in accordance with subpart J of this part. An\noperator must use the test pressures specified in Table 3 of section 5 of\nASME/ANSI B31.8S, to justify an extended reassessment interval in accordance\nwith § 192.939.\nAIX failed to specify correct assessment methods for conducting integrity reassessments in\ntheir IMP. Section 6.2.2 of AIX’s IMP incorrectly specifies “§ 192.513 Test Requirements\nfor Plastic Pipelines” as the applicable pressure test assessment method for the Kenai Loop\nPipeline, which is a steel pipeline.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. 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).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in\nthis Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as\nalleged in this Notice without further notice to you and to issue an Order Directing\nAmendment. If your plans or procedures are found inadequate as alleged in this Notice, you\nmay be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. §\n190.206). If you are not contesting this Notice, we propose that you submit your amended\nprocedures to my office within 90 days of receipt of this Notice. This period may be extended\nby written request for good cause. Once the inadequacies identified herein have been\naddressed in your amended procedures, this enforcement action will be closed.\nIt is requested (not mandated) that AIX maintain documentation of the safety improvement\ncosts associated with fulfilling this Notice of Amendment (preparation/revision of plans,\nprocedures) and submit the total to Kim West, Director, Western, Pipeline and Hazardous\nMaterials Safety Administration. In correspondence concerning this matter, please refer to\nCPF 5-2018-0009M and, for each document you submit, please provide a copy in electronic\n5\n\n\n\nformat whenever possible.\nSincerely,\nKim West\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Gano (#155860)\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n6","truncated":false,"body_characters":29907}