{"operation":"document","citation":"CPF 520180016W","title":"CARBON CALIFORNIA OPERATING COMPANY, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-12-27","effective_on":null,"summary":"CLOSED warning letter citing 192.465(b), 192.616(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520180016w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520180016w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520180016w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520180016W","body":"Warning Letter involving CARBON CALIFORNIA OPERATING COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(b),  192.616(a). The case was opened on 2018-12-27 and is reported as closed as of 2018-12-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520180016W_Warning Letter_12272018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180016W/520180016W_Warning%20Letter_12272018.pdf\n\n520180016W_Warning Letter_12272018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520180016W/520180016W_Warning%20Letter_12272018_text.pdf\n\n520180016W_Warning Letter_12272018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 27, 2018\nMr. Mark D. Pierce\nCarbon California Operating Company, LLC\nPresident\n270 Quail Court, Suite B\nSanta Paula, CA 93060\nCPF 5-2018-0016W\nDear Mr. Pierce:\nOn October 15, 2018 to October 19, 2018, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to\nChapter 601 of 49 United States Code inspected the Carbon Energy Corporation’s (Carbon)\nOjai to Llamas and Sespe gas gathering pipeline systems in Ventura, California.\nAs a result of the inspection, it is alleged that Carbon has committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected\nand the probable violations are:\n1. § 192.465 External corrosion control: Monitoring.\n(a) . . .\n(b) Each cathodic protection rectifier or other impressed current power source\nmust be inspected six times each calendar year, but with intervals not exceeding\n2½ months, to insure that it is operating.\nCarbon violated 49 CFR § 192.465(b) by failing to inspect each cathodic protection rectifier\nsix times each calendar year, but with intervals not exceeding 2½ months, to insure that it is\n\n\n\noperating. Specifically, Carbon’s Procedure 6.05, Cathodic Protection & External Corrosion\nControl, Section 5.1 requires each cathodic protection rectifier or other impressed current\npower source to be inspected at least six times each calendar year, but at intervals not\nexceeding 2.5 months. 1 At the time of the inspection, Carbon provided inspection records to\nthe OPS inspector, which showed that the cathodic protection rectifiers for Sespe gas\ngathering pipeline system had been inspected in February and April 2018.2 However, Carbon\ncould not provide records or other substantiating evidence to demonstrate that inspections of\ncathodic protection rectifiers were conducted in June and August 2018.\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).\nCarbon violated 49 CFR § 192.616(a) by failing to implement its written continuing public\neducation program that follows the guidance provided in API 1162. At the time of the\ninspection, Carbon could not provide records to demonstrate that Carbon has implemented its\nwritten Procedure 18.01, Public Awareness.\n3 Specifically, Carbon assumed operatorship and\nownership of the Ojai to Llamas Type B gas gathering pipeline from the California Resources\nCorporation on February 15, 2017 4, however it was not till October 2018, 20 months after\nownership was assumed, that Carbon began to implement its public awareness program.5\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a\nrelated series of violations. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day,\nwith a maximum penalty not to exceed $2,090,022. For violations occurring prior to November\n2, 2015, 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 conduct\nadditional enforcement action or penalty assessment proceedings at this time. We advise you\nto correct the item(s) identified in this letter. Failure to do so will result in Carbon California\nOperating Company, LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2018-0016W. 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\n1 See Exhibit A to Violation Report\n2 See Exhibit B to Violation Report\n3 See Exhibit C to Violation Report\n4 See Exhibit D to Violation Report\n5 See Exhibit E and F to Violation Report\n2\n\n\n\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).\nSincerely,\nChris Hoidal\nInterim Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Garcia (#162702, #162703)\n3","truncated":false,"body_characters":5669}