{"operation":"document","citation":"CPF 520190016","title":"AMERIGAS PROPANE LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-05-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.357(a), 192.455(a)(2), 192.481(c), 192.605(a), 192.707(a), 192.723(b)(1), 192.747(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520190016.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520190016.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520190016","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520190016","body":"Notice of Probable Violation involving AMERIGAS PROPANE LP. PHMSA's enforcement data identifies the cited regulations as 192.357(a),  192.455(a)(2),  192.481(c),  192.605(a),  192.707(a),  192.723(b)(1),  192.747(a). The case was opened on 2019-05-16 and is reported as closed as of 2020-01-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520190016_Closure Letter_01272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Closure%20Letter_01272020.pdf\n\n520190016_Closure Letter_01272020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Closure%20Letter_01272020_text.pdf\n\n520190016_Final Order_11142019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Final%20Order_11142019.pdf\n\n520190016_Final Order_11142019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Final%20Order_11142019_text.pdf\n\n520190016_NOPV PCO_05162019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_NOPV%20PCO_05162019.pdf\n\n520190016_NOPV PCO_05162019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_NOPV%20PCO_05162019_text.pdf\n\n520190016_Operator Response to Notice_11022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Operator%20Response%20to%20Notice_11022019.pdf\n\n520190016_Closure Letter_01272020_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 27, 2020\nMr. Hugh Gallagher\nPresident and Chief Executive Officer\nAmeriGas Propane, Inc.\n460 North Gulph Road\nKing of Prussia, Pennsylvania 19406\nCPF 5-2019-0016\nClosure Letter\nDear Mr. Gallagher:\nOn November 14, 2019, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) issued to AmeriGas Propane, LP a Final Order in the above-referenced case. This\nOrder included a Compliance Order. Based on our review of the documentation you provided,\nit has been determined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Garcia (#163602)\nMr. David Hedrick, Pipeline Safety & Compliance Manager, AmeriGas Propane, LP\n\n520190016_Final Order_11142019_text.pdf\n\nNovember 14, 2019\nMr. Hugh Gallagher\nPresident and Chief Executive Officer\nAmeriGas Propane, Inc.\n460 North Gulph Road\nKing of Prussia, Pennsylvania 19406\nRe: CPF No. 5-2019-0016\nDear Mr. Gallagher:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by your subsidiary, AmeriGas Propane, LP,\nto comply with the pipeline safety regulations. When the terms of the compliance order have\nbeen completed, as determined by the Director, Western Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is effective upon the date of mailing, as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. David Hedrick, Pipeline Safety & Compliance Manager, AmeriGas Propane, LP\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nAmeriGas Propane, LP, ) CPF No. 5-2019-0016\na subsidiary of AmeriGas Partners, LP, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom November 5 to November 16, 2018, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of AmeriGas\nPropane, LP (AmeriGas or Respondent), in Maui, Kona, and Oahu, Hawaii. AmeriGas is a\nwholly-owned subsidiary of AmeriGas Partners, LP, with AmeriGas Propane, Inc., acting as the\ngeneral partner and conducting operations management.1 AmeriGas operates a propane\ndistribution network in all states, and uses a number of interstate gas pipelines to transport\npropane.2\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated May 16, 2019, a Notice of Probable Violation and Proposed\nCompliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that AmeriGas had committed\nsix violations of 49 C.F.R. Part 192 and proposed ordering Respondent to take certain measures\nto correct the alleged violations. The warning item required no further action, but warned the\noperator to correct the probable violation or face possible future enforcement action.\nAmeriGas responded to the Notice by email dated July 2, 2019 (Response). The company did\nnot contest the allegations of violation and agreed to complete the proposed compliance actions.\nRespondent did not request a hearing and therefore has waived its right to one.\n1 AmeriGas Propane, Inc., website, available at\nhttps://s22.q4cdn.com/746525948/files/doc financials/annuals/2018/FINAL-PDF-of-AmeriGas-Annual-Report-on-\nForm-10-K.pdf (last accessed October 16, 2019).\n2 Id.\n\n\n\nCPF No. 5-2019-0016\nPage 2\nFINDINGS OF VIOLATION\nIn its Response, AmeriGas did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 292.357(a), which states:\n§ 192.357 Customer meters and regulators: Installation.\n(a) Each meter and each regulator must be installed so as to minimize\nanticipated stresses upon the connecting piping and the meter.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.357(a) by failing to install\ncustomer meters so as to minimize anticipated stresses upon the connecting pipe and the meter.\nSpecifically, the Notice alleged that AmeriGas had installed several customer meters that did not\nhave proper supports, with several wall-mounted meters installed with no mounting brackets, as\nrequired by § 192.357(a) and AmeriGas’ Operating and Maintenance (O&M) Manual.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.357(a) by failing to install\ncustomer meters so as to minimize anticipated stresses upon the connecting pipe and the meter.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.455(a)(2), which states:\n§ 192.455 External corrosion control: Buried or submerged pipelines\ninstalled after July 31, 1971.\n(a) Except as provided in paragraphs (b), (c), (f), and (g) of this section, each\nburied or submerged pipeline installed after July 31, 1971, must be protected\nagainst external corrosion, including the following:\n(1) . . . .\n(2) It must have a cathodic protection system designed to protect the pipeline\nin accordance with this subpart, installed and placed in operation within 1 year after\ncompletion of construction.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.455(a)(2) by failing to protect its\nburied pipeline with a cathodic protection (CP) system. Specifically, the Notice alleged that\nAmeriGas did not have records demonstrating that its propane distribution pipeline at Maui\nDistrict, which was constructed after July 31, 1971, was protected with a CP system. AmeriGas\ndid not install a CP system until 2018, and thus had no adequate CP system for the years 2016\nand 2017.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.455(a)(2) by failing to protect\nits buried pipeline with a CP system.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.481(c), which states:\n\n\n\nCPF No. 5-2019-0016\nPage 3\n§ 192.481 Atmospheric corrosion control: Monitoring.\n(a) . . .\n(c) If atmospheric corrosion is found during an inspection, the operator\nmust provide protection against the corrosion as required by §192.479.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.481(c) by failing to protect against\natmospheric corrosion found during an inspection. Specifically, the Notice alleged that\nAmeriGas discovered active atmospheric corrosion on its Maui Coast Hotel system during an\ninvestigation conducted on January 8, 2018. Despite AmeriGas’ discovery of the corrosion, at\nthe time of the PHMSA inspection several above-ground pipelines and other pipeline\ncomponents still showed severe atmospheric corrosion.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.481(c) by failing to protect\nagainst atmospheric corrosion found during an inspection.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a\nmanual of written procedures for conducting operations and maintenance\nactivities and for emergency response. For transmission lines, the manual\nmust also include procedures for handling abnormal operations. This\nmanual must be reviewed and updated by the operator at intervals not\nexceeding 15 months, but at least once each calendar year. This manual\nmust be prepared before operations of a pipeline system commence.\nAppropriate parts of the manual must be kept at locations where operations\nand maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its\nwritten procedures for conducting operations and maintenance activities and for emergency\nresponse. Specifically, the Notice alleged that AmeriGas failed to comply with four sections of\nits O&M Manual.\nFirst, the section of AmeriGas’ O&M Manual titled “Emergency Plan” required the company to\n“participate in emergency response drills and deployment exercises with local emergency\nresponders,” among other requirements. Respondent stated that, instead of participating in drills,\nthe company only conducted liaison meetings with local emergency responders and showed the\nresponders AmeriGas’ system.\nSecond, the section of AmeriGas’ O&M Manual titled “Odorization of Gas” required the\ncompany to use one of three methods to ensure that a proper amount of odorant had been added.\nAmeriGas’ Monthly Odorant Verification Tracking forms did not indicate whether one of the\nmethods was used to verify a proper amount of odorant.\n\n\n\nCPF No. 5-2019-0016\nPage 4\nThird, the section of AmeriGas’ O&M Manual titled “Abandonment of Facilities” required the\ncompany to follow specific steps to abandon existing service lines. During the PHMSA\ninspection, several existing service lines were discovered that had not been properly abandoned\nin accordance with AmeriGas’ procedures.\nFourth, the section of AmeriGas’ O&M Manual titled “Damage Prevention Program” required\nthe company to take several actions during excavation of a pipeline, including to “exercise care\nand take all reasonable steps to avoid damage . . . to any buried lines or cables,” and to prevent\nexcavation damage by making a call to the State One Call center. During the PHMSA\ninspection, AmeriGas personnel observed a missing CP anode on a pipeline and immediately\nexcavated the pipeline to install the missing component without following the procedures in the\nO&M Manual.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its\nwritten procedures for conducting operations and maintenance activities and for emergency\nresponse.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. § 192.707(a), which states:\n§ 192.707 Line markers for mains and transmission lines.\n(a) Buried pipelines. Except as provided in paragraph (b) of this section,\na line marker must be placed and maintained as close as practical over each\nburied main and transmission line:\n(1) At each crossing of a public road and railroad; and\n(2) Wherever necessary to identify the location of the transmission line\nor main to reduce the possibility of damage or interference.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.707(a) by failing to place a line\nmarker at each crossing of a public road and at several other locations necessary to reduce the\npossibility of damage to the pipeline. Specifically, the Notice alleged that AmeriGas failed to\nplace a line marker at each crossing of a public road. Additionally, AmeriGas failed to place a\nline marker along each side of its above-ground pipelines in areas accessible to the public, as\nrequired by the company’s O&M Manual.3\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.707(a) by failing to place a line\nmarker at each crossing of a public road and at several other locations necessary to reduce the\npossibility of damage to the pipeline.\nItem 6: The Notice alleged that Respondent violated 49 C.F.R. § 192.723(b)(1), which states:\n§ 192.723 Distribution systems: Leakage surveys.\n(a) . . . .\n3 Pipeline Safety Violation Report (on file with PHMSA), Exhibits Q and R.\n\n\n\nCPF No. 5-2019-0016\nPage 5\n(b) The type and scope of the leakage control program must be\ndetermined by the nature of the operations and the local conditions, but it\nmust meet the following minimum requirements:\n(1) A leakage survey with leak detector equipment must be conducted\nin business districts, including tests of the atmosphere in gas, electric,\ntelephone, sewer, and water system manholes, at cracks in pavement and\nsidewalks, and at other locations providing an opportunity for finding gas\nleaks, at intervals not exceeding 15 months, but at least once each calendar\nyear.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.723(b)(1) by failing to conduct\nleakage surveys with leak detector equipment in business districts, including tests of the\natmosphere in gas, electric, telephone, sewer, and water system manholes, at cracks in pavement\nand sidewalks, and at other locations providing an opportunity for finding gas leaks, at intervals\nnot exceeding 15 months, but at least once each calendar year. Specifically, the Notice alleged\nthat AmeriGas did not use combustible gas indicator equipment in the Maui District, a business\ndistrict. The company only surveyed its above-ground gas pipeline components in the business\ndistrict using a leak detector solution.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.723(b)(1) by failing to conduct\nleakage surveys with leak detector equipment in business districts, including tests of the\natmosphere in gas, electric, telephone, sewer, and water system manholes, at cracks in pavement\nand sidewalks, and at other locations providing an opportunity for finding gas leaks, at intervals\nnot exceeding 15 months, but at least once each calendar year.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, 3, 4, 5, and 6 in the Notice\nfor violations of 49 C.F.R. Part 192. Under 49 U.S.C. § 60118(a), each person who engages in\nthe transportation of gas or who owns or operates a pipeline facility is required to comply with\nthe applicable safety standards established under chapter 601. Pursuant to the authority of 49\nU.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions\nto ensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 192.357(a) (Item 1), Respondent must:\na) Follow AmeriGas' O&M Manual - Meters, Service Regulators and Lines.\nb) Inspect all gas meters located in Maui, Kona, and Oahu, Hawaii Districts for\nproper supports.\nc) All gas meters that do not have proper support must be corrected and must have\nthe proper mounting brackets or pipe supports. Mounting bracket that will be\ninstalled must not have a metal-to-metal contact with the gas meters.\n\n\n\nCPF No. 5-2019-0016\nPage 6\nd) Create a list of the number of meters per customer in all Districts.\ne) Revise inspection form(s) to indicate or to include a checkbox to show that meters\nhave been inspected for proper support.\nf) Remove the foreign corrugated plastic water line on top of the aboveground gas\nservice pipe at the Imuha Mamalahoa Center or reroute the gas service pipe.\n2. With respect to the violation of § 192.455(a)(2) (Item 2), Respondent must:\na) Follow AmeriGas' O&M Manual - Corrosion Control.\nb) Inspect the pipeline system in all Districts to create a list of each pipeline system\nto show if the system has steel risers, anode-less risers, underground polyethylene\npipe or underground steel pipe.\nc) Install cathodic protection systems on all underground steel pipe and steel risers.\nd) Re-train and re-qualify all personnel or contractors who will be installing and\ntesting cathodic protection systems.\n3. With respect to the violation of § 192.481(c) (Item 3), Respondent must:\na) Follow AmeriGas' O&M Manual - Corrosion Control.\nb) Re-evaluate and inspect the pipeline system in all Districts for atmospheric\ncorrosion.\nc) Correct or apply protection to all pipeline systems and containers that have\natmospheric corrosion.\nd) Inspect all gas meters in all Districts that are in contact with the ground and\ncorrect any deficiencies. Gas meters must not contact the ground to ensure proper\ninspection of the bottom surface of the meters for atmospheric corrosion.\ne) Replace all severely-corroded aboveground pipe and components at Maui Coast\nHotel system and any other pipeline systems in the Districts that need\nreplacement.\nf) Re-train and re-qualify all personnel or contractors who will be inspecting,\ninstalling new pipe, applying new coats, and any other covered tasks for the\ncorrective actions.\n4. With respect to the violation of § 192.605(a) (Item 4), Respondent must:\na) Follow AmeriGas' O&M Manual - Emergency Plan.\nb) For all Districts, schedule and participate in emergency response drills and\ndeployment exercises with the local emergency responders to establish unified\nincident command roles, operating procedures and preparedness for various\nemergency scenarios where appropriate.\nc) Revise your Emergency Plan to include how often AmeriGas will participate or\nconduct actual emergency response drills and deployment exercises.\nd) Follow AmeriGas' O&M Manual - Odorization of Gas, for testing of odorant level\nby using the testing methods and equipment described in Step 5 of the procedure.\ne) Train and qualify all personnel on the use of the gas odorization testing methods\nset forth in AmeriGas' O&M Manual.\nf) Revise the odor test inspection form to indicate the odor test method and\nequipment used, date of calibration, amount of odorant detected, etc.\ng) Inspect the pipeline system in all Districts and document all inactive pipeline\n\n\n\nCPF No. 5-2019-0016\nPage 7\nservice and follow AmeriGas' O&M Manual - Abandonment of Facilities.\nh) Re-train and requalify all personnel that will be inspecting and abandoning\ninactive pipelines regarding AmeriGas' Abandonment of Facilities procedure.\ni) Re-train and re-qualify all personnel regarding AmeriGas' Damage Prevention\nProgram and procedures.\n5. With respect to the violation of § 192.707(a) (Item 5), Respondent must:\na) Follow AmeriGas' O&M Manual - Damage Prevention Program.\nb) Inspect the pipeline system in all Districts and install pipeline markers where\nneeded.\n6. With respect to the violation of § 192.723(b)(1) (Item 6), Respondent must:\na) Follow AmeriGas' O&M Manual - Leak Surveys.\nb) Conduct leak surveys of all pipeline systems in the Maui district either by pressure\ntest or by using leak survey instruments.\nc) Train and qualify all personnel that will be conducting the leak survey using an\ninstrument.\nAmeriGas must complete the remediation work required by sections 1 through 6, above, within\n180 days of the date of this Order and must submit records, updated forms, photographs, and any\nother documentation necessary to demonstrate compliance with the Order to the Director.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nIt is requested (not mandated) that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to the\nDirector. It is requested that these costs be reported in two categories: (1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated\nwith replacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nWARNING ITEM\nWith respect to Item 7, the Notice alleged a probable violation of Part 192 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n\n\n\nCPF No. 5-2019-0016\nPage 8\n49 C.F.R. § 192.747(a) (Item 7) ─ Respondent’s alleged failure to check and\nservice its valves on the Maui District pipeline system at intervals not exceeding\n15 months, but at least once per calendar year.\nIf OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject\nto future enforcement action.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nNovember 14, 2019\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":23433}