{"operation":"document","citation":"CPF 520207002W","title":"FREEPORT-MCMORAN OIL & GAS — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-03-09","effective_on":null,"summary":"CLOSED warning letter citing 195.573(a)(2), 195.581, 195.583.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520207002w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520207002w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520207002w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520207002W","body":"Warning Letter involving FREEPORT-MCMORAN OIL & GAS. PHMSA's enforcement data identifies the cited regulations as 195.573(a)(2),  195.581,  195.583. The case was opened on 2020-03-09 and is reported as closed as of 2020-03-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520207002W_Warning Letter_03092020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520207002W/520207002W_Warning%20Letter_03092020.pdf\n\n520207002W_Warning Letter_03092020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520207002W/520207002W_Warning%20Letter_03092020_text.pdf\n\n520207002W_Warning Letter_03092020_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 9, 2020\nMr. David Rose\nDirector, Environmental Health & Safety\nFreeport-McMoRan Oil & Gas\n201 S. Broadway\nOrcutt, CA 93455\nCPF 5-2020-7002W\nDear Mr. Rose:\nIn November 2019, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your\n8-inch diameter oil pipeline from Platform Irene to the Lompoc Oil and Gas Plant (Point\nPedernales Pipeline) in 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:\n1. § 195.581 Which pipelines must I protect against atmospheric corrosion and what\ncoating material may I use?\n(a) You must clean and coat each pipeline or portion of pipeline that is exposed to the\natmosphere, except pipelines under paragraph (c) of this section.\n(b) Coating material must be suitable for the prevention of atmospheric corrosion.\n(c) Except portions of pipelines in offshore splash zones or soil-to-air interfaces, you\nneed not protect against atmospheric corrosion any pipeline for which you\n\n\n\ndemonstrate by test, investigation, or experience appropriate to the environment of\nthe pipeline that corrosion will—\n(1) Only be a light surface oxide; or\n(2) Not affect the safe operation of the pipeline before the next scheduled inspection.\nAt Valve Site 1, the Point Pedernales Pipeline is supported by pipe supports which are unable\nto be adjusted to allow for the inspection of the pipeline at the pipe-to-pipe support interface.\nTherefore, it is not possible to determine if the pipeline is properly coated under the supports.\n2. § 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is\nlocated: Then the frequency of inspection is:\nOnshore At least once every 3 calendar years, but with intervals\nnot exceeding 39 months.\nOffshore At least once each calendar year, but with intervals not\nexceeding 15 months.\n(b) During inspections, you must give particular attention to pipe at soil-to-air\ninterfaces, under thermal insulation, under disbonded coatings, at pipe supports, in\nsplash zones, at deck penetrations, and in spans over water.\n(c) If you find atmospheric corrosion during an inspection, you must provide\nprotection against the corrosion as required by §195.581.\nAt Valve Site 1, the Point Pedernales Pipeline is supported by pipe supports which are unable\nto be adjusted to allow for the inspection of the pipeline at the pipe-to-pipe support interface at\nthe requisite intervals in § 195.583(a). Based on the lack of an insulator between the pipe and\npipe support, and the proximity of Valve Site 1 to the salty air atmosphere near the Pacific\nOcean, it is likely that the pipeline will experience external corrosion at these locations.\n3. § 195.573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine whether cathodic\nprotection required by this subpart complies with §195.571:\n(1) …\n(2) Identify not more than 2 years after cathodic protection is installed, the\ncircumstances in which a close-interval survey or comparable technology is\n2\n\n\n\npracticable and necessary to accomplish the objectives of paragraph 10.1.1.3 of\nNACE SP 0169 (incorporated by reference, see § 195.3).\nAfter more than two years’ post-cathodic protection installation, the operator did not identify\nthe circumstances in which a close interval survey of the Point Pedernales Pipeline or\ncomparable technology is practicable and necessary to accomplish the objectives of NACE SP\n0169 10.1.1.3.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465\nfor a related series of violations. For violation occurring on or after November 27, 2018 and\nbefore July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day,\nwith a maximum penalty not to exceed $2,132,679. For violation occurring on or after\nNovember 2, 2015 and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For\nviolations occurring prior to November 2, 2015, the maximum penalty may not exceed\n$200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a\nrelated series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the items identified in this\nletter. Failure to do so may result in Freeport-McMoRan being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2020-7002W. 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\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Petronis (#161482)\n3","truncated":false,"body_characters":6529}