{"operation":"document","citation":"CPF 52021009WL","title":"HECO - HAWAIIAN ELECTRIC COMPANY, INC. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-04-14","effective_on":null,"summary":"CLOSED warning letter citing 194.107(c)(1)(ix), 195.204, 195.228(a), 195.402(c)(12), 195.402(e)(9), 195.403(c), 195.420(b), 195.581(a), 195.583(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021009wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021009wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021009wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021009WL","body":"Warning Letter involving HECO - HAWAIIAN ELECTRIC COMPANY, INC.. PHMSA's enforcement data identifies the cited regulations as 194.107(c)(1)(ix),  195.204,  195.228(a),  195.402(c)(12),  195.402(e)(9),  195.403(c),  195.420(b),  195.581(a),  195.583(b). The case was opened on 2021-04-14 and is reported as closed as of 2021-04-14. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021009WL_Warning Letter_04142021_(20-173109).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021009WL/52021009WL_Warning%20Letter_04142021_(20-173109).pdf\n\n52021009WL_Warning Letter_04142021_(20-173109)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021009WL/52021009WL_Warning%20Letter_04142021_(20-173109)_text.pdf\n\n52021009WL_Warning Letter_04142021_(20-173109)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. ROBERT ISLER\nApril 14, 2021\nMr. Robert Isler\nVice President, Power Supply\nHawaiian Electric Company, Inc.\nP.O. Box 2750\nHonolulu, HI 96840\nCPF 5-2021-009-WL\nDear Mr. Isler:\nDuring the weeks of September 9 through 11, and 14 through 18, 2020, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of\n49 United States Code (U.S.C.), inspected the Hawaiian Electric Company Inc.’s (HECO) Waiau\nand Kahe pipelines including records and procedures, located in Honolulu County, Hawaii.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 194.107 - General response plan requirements.\n(a) …\n(c) Each response plan must include:\n(1) A core plan consisting of—\n(i) …\n(ix) Drill program—an operator will satisfy the requirement for a drill program by\nfollowing the National Preparedness for Response Exercise Program (PREP)\nguidelines. An operator choosing not to follow PREP guidelines must have a drill\nprogram that is equivalent to PREP. The operator must describe the drill program\nin the response plan and OPS will determine if the program is equivalent to PREP.\n\n\n\nHECO’s response plan records fail to demonstrate that it is meeting all the requirements for the\ntriennial exercise of the entire response plan.\nThe records for the 12 qualified individual (QI) notification exercises fail to demonstrate that all\nQIs are being called when conducting notification tests. Specifically, QI notification drills held\non January 9, June 19 and August 28 of 2018, and March 20 and September 30 of 2019, failed to\ndemonstrate that all qualified individuals were part of the notification exercises.\nAdditionally, the June 19, 2018, notification record states the same information (verbatim) as the\nJanuary 9, 2018 notification record during which an actual release occurred that prompted the\nnotification. It appears the operator copied and pasted the information from the January 9 release\ninto the June 19 records as no release occurred on June 19, 2018.\nThe announced tabletop exercises records for 2017 to 2019 fail to demonstrate that lessons\nlearned were discussed, documented or implemented.\nThe unannounced tabletop exercises records contained information that the same drill was\nperformed from 2017 through 2019, each one exercising the emergency procedures. The record\ntitled NPREP Exercise Documentation Form (Self Certification) for the December 5, 2017\nunannounced drill has incorrect dates that fail to match the exercise/drill which was performed.\nThe Self Certification for the December 18, 2018 unannounced drill has recorded conflicting\ndata, including the type of exercise and the core requirements that were exercised. Additionally,\nthe record indicated that a \"Lessons Learned\" document was attached, however, this\nattachment was not part of the record provided.\nThe unannounced exercise of the emergency procedures held on December 5, 2019, indicated\nlessons learned but no follow-up documentation demonstrated that the lessons learned were\nimplemented.\n2. § 195.204 – Inspection general.\nInspection must be provided to ensure that the installation of pipe or pipeline\nsystems is in accordance with the requirements of this subpart. Any operator\npersonnel used to perform the inspection must be trained and qualified in the phase\nof construction to be inspected. An operator must not use operator personnel to\nperform a required inspection if the operator personnel performed the construction\ntask requiring inspection. Nothing in this section prohibits the operator from\ninspecting construction tasks with operator personnel who are involved in other\nconstruction tasks.\nThe operator failed to have records demonstrating the training and experience required for\npersonnel used to perform inspections, pursuant to §195.204.\n2\n\n\n\n3. § 195.228 - Welds and welding inspection: Standards of acceptability.\n(a) Each weld and welding must be inspected to insure compliance with the\nrequirements of this subpart. Visual inspection must be supplemented by\nnondestructive testing.\nRepair records for B Sleeve installations on the Waiau Pipeline failed to demonstrate that a\nvisual inspection of each weld was performed, as required by 195.228(a).\nThe repair records failed to identify who did the visual inspection or whether a visual inspection\nof the weld was conducted prior to the magnetic particle testing. Records provided could not\ndemonstrate that a visual inspection was performed. HECO contacted the consultant who\nperformed the work, Engineering & Inspections Hawaii (E&I Hawaii), to ask for records of the\nvisual welds. E&I Hawaii would not or could not provide any documentation to demonstrate that\nthe visual inspections occurred, and only provided a statement that the visual weld inspection did\noccur.\n4. § § 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) …\n(12) Establishing and maintaining liaison with fire, police, and other appropriate\npublic officials to learn the responsibility and resources of each government\norganization that may respond to a hazardous liquid or carbon dioxide pipeline\nemergency and acquaint the officials with the operator’s ability in responding to a\nhazardous liquid or carbon dioxide pipeline emergency and means of\ncommunication.\nHECO’s records failed to include any information regarding the responsibility and resources of\neach government organization that may respond to a hazardous liquid or carbon dioxide pipeline\nemergency.\nSpecifically, the following records were reviewed:\n1. 2. 3. Honolulu Local Emergency Planning Committee (LEPC) meeting held in June 2019 with\nthe Hawaiian Pipeline Safety Association (HPSA) – The records failed to include any\ninformation regarding responsibility and resources.\nEmergency meeting with the LEPC, held in July 2018 – The records failed to include any\ninformation regarding the responsibility and resources of the organizations in attendance,\nexcept for the records for the Honolulu Fire Department (HFD). The records for the HFD\nfailed to have dates associated with them.\nNo records could be provided for the 2017 calendar year.\n3\n\n\n\n5. § 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(e) Emergencies. The manual required by paragraph (a) of this section must include\nprocedures for the following to provide safety when an emergency condition occurs:\n(1) …\n(9) Providing for a post-accident review of employee activities to determine whether\nthe procedures were effective in each emergency and taking corrective action where\ndeficiencies are found.\nThe operator had a leak/incident on January 9, 2018 on the Waiau Pipeline. However, HECO\nfailed to provide records indicating that a post-accident review of employee’s activities or\nactions was performed to determine if the emergency procedures were effective.\n6. § 195.403 - Emergency response training.\n(a) …\n(c) Each operator shall require and verify that its supervisors maintain a thorough\nknowledge of that portion of the emergency response procedures established under\n195.402 for which they are responsible to ensure compliance.\nThe operator was unable to provide records which demonstrate that its supervisors are trained\nand knowledgeable of the emergency response procedures for which they are responsible to\nensure compliance.\n7. § 195.420 - Valve maintenance.\n(a) …\n(b) Each operator shall, at intervals not exceeding 71/2 months, but at least twice\neach calendar year, inspect each mainline valve to determine that it is functioning\nproperly.\nWaiau pipeline valve records failed to properly document who performed the valve inspections.\nSpecifically, the inspection records for BV-4, BV-5, BV-6, MOV-900, MOV-901, and MOV-\n902 for inspection dates of May 28, 2020, June 3, 2020, and June 4, 2020, failed to document\nwho performed the valve inspections.\n8. § 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\nthe atmosphere, except pipelines under paragraph (c) of this section.\nAreas of aboveground piping failed to be properly cleaned and coated as required by 195.581(a).\n4\n\n\n\nAll piping exposed to the atmosphere was not cleaned and coated to protect against atmospheric\ncorrosion.\nDuring the field inspection, several areas at the end of the Waiau pipeline were observed to not\nbe protected from atmospheric corrosion. Several aboveground flanges were observed without\ncoating and one valve handle was observed to have active corrosion which could create a hazard\nto an employee operating the valve.\n9. § 195.583 - What must I do to monitor atmospheric corrosion control?\n(a) …\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.\nRecords and interviews with HECO staff indicate the thermal insulation blankets on above\nground piping are not removed for the atmospheric corrosion inspections.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a\nrelated series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nHawaiian Electric Company, Inc. being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 5-2021-009-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\n5\n\n\n\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 D. Fehling (#20-173109)\n6","truncated":false,"body_characters":12411}