{"operation":"document","citation":"CPF 52021045WL","title":"NORSTAR PIPELINE COMPANY, INC. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-09-02","effective_on":null,"summary":"CLOSED warning letter citing 192.475(b), 192.625(b), 192.935(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021045wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021045wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021045wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021045WL","body":"Warning Letter involving NORSTAR PIPELINE COMPANY, INC.. PHMSA's enforcement data identifies the cited regulations as 192.475(b),  192.625(b),  192.935(c). The case was opened on 2021-09-02 and is reported as closed as of 2021-09-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021045WL_Warning Letter_09022021_(21-199302).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021045WL/52021045WL_Warning%20Letter_09022021_(21-199302).pdf\n\n52021045WL_Warning Letter_09022021_(21-199302)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021045WL/52021045WL_Warning%20Letter_09022021_(21-199302)_text.pdf\n\n52021045WL_Warning Letter_09022021_(21-199302)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. JOHN SIMS\nSeptember 2, 2021\nMr. John Sims\nPresident\nNorstar Pipeline Company, Inc.\n3000 Spenard Road\nAnchorage, AK 99503\nCPF 5-2021-045-WL\nDear Mr. Sims:\nFrom April 5 through 8, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nNorstar Pipeline Company's (“Norstar”) Agrium and Anchorage Landfill pipelines.\nAs a result of the inspection, it is alleged that Norstar has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 192.475 - Internal corrosion control: General.\n(a) . . . .\n(b) Whenever any pipe is removed from a pipeline for any reason, the internal\nsurface must be inspected for evidence of corrosion…\nThe operator failed to conduct or failed to document the inspection of the internal surfaces of the\npipeline for corrosion during the 2012 replacement of a section of the “N2\" pipeline segment of\nthe Agrium pipeline. In 2012, the operator replaced a section of the \"N2\" pipeline segment of\nthe Agrium pipeline, and during that project the operator exposed the inner surfaces of the\nexisting pipeline segments. However, during the inspection the operator was unable to locate a\nrecord of any such inspection. Records of internal corrosion inspections must be retained for the\nlife of the pipeline.\n\n\n\n2. § 192.625 - Odorization of gas.\n(a) . . . .\n(b) After December 31, 1976, a combustible gas in a transmission line in a Class 3 or\nClass 4 location must comply with the requirements of paragraph (a) of this section\nunless:\nThe operator failed to assure that gas transported by the Agrium pipeline is odorized at a\nconcentration in air of one-fifth of the lower explosive limit, the gas is readily detectable by a\nperson with a normal sense of smell (§192.625(a)). The operator provided records showing it\ntransported gas in the Agrium pipeline from a mixture of odorized and-non-odorized sources.\nSpecifically, the Agrium pipeline transported gas from the Alaska Pipeline Company's Beaver\nCreek pipeline (which is odorized and monitored through Enstar's distribution system), the\nHilcorp's Swanson River gas pipeline (which is non-odorized), and occasionally the Harvest\nAlaska’s Kenai-Nikiski Pipeline (also non-odorized). The Agrium pipeline is a transmission line\nin class 3 locations per Norstar’s annual report and does not meet any of the possible criteria for\nthe exemption from the requirement to odorize under §192.625(b)(1) - (4).\n3. § 192.935 - What additional preventive and mitigative measures must an operator\ntake?\n(a) . . . .\n(c) Automatic shut-off valves (ASV) or Remote control valves (RCV). If an operator\ndetermines, based on a risk analysis, that an ASV or RCV would be an efficient\nmeans of adding protection to a high consequence area in the event of a gas release,\nan operator must install the ASV or RCV. In making that determination, an\noperator must, at least, consider the following factors—swiftness of leak detection\nand pipe shutdown capabilities, the type of gas being transported, operating\npressure, the rate of potential release, pipeline profile, the potential for ignition, and\nlocation of nearest response personnel.\nThe operator failed to document preparation of a risk analysis of the Agrium pipeline to\ndetermine whether an automatic shutoff valve or remote control valve would be an efficient\nmeans to protect an HCA. The operator stated that it determined whether an ASV or RCV was\nappropriate based on \"discussion with SMEs\" but that it had failed to document such\ndetermination. The upstream source of gas does not have remote control or automatic shutoff\nvalves.\n2\n\n\n\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a\nrelated series of violations. For violation occurring on or after January 11, 2021 and before May\n3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to 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\nNorstar Pipeline 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 5-2021-045-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\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 J. Gano (#21-199302)\nRusty Allen, Norstar Alaska (via email)\n3","truncated":false,"body_characters":6868}