{"operation":"document","citation":"CPF 52022006NOPV","title":"HILCORP NORTH SLOPE, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-09-07","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.208, 195.214(a), 195.402(a), 195.452(i)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022006nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022006nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022006nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52022006NOPV","body":"Notice of Probable Violation involving HILCORP NORTH SLOPE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.208,  195.214(a),  195.402(a),  195.452(i)(3). The case was opened on 2022-09-07 and is reported as closed as of 2023-06-13. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52022006NOPV_Final Order_06132023_(21-213178).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_Final%20Order_06132023_(21-213178).pdf\n\n52022006NOPV_Final Order_06132023_(21-213178)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_Final%20Order_06132023_(21-213178)_text.pdf\n\n52022006NOPV_Operator Response to Notice_10062022_(21-213178).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_Operator%20Response%20to%20Notice_10062022_(21-213178).pdf\n\n52022006NOPV_Operator RtN and RfH and Req Case File_11042022_(21-213178).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_Operator%20RtN%20and%20RfH%20and%20Req%20Case%20File_11042022_(21-213178).pdf\n\n52022006NOPV_Operator RtN Item 2 (REDACTED)_11042022_(21-213178).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_Operator%20RtN%20Item%202%20(REDACTED)_11042022_(21-213178).pdf\n\n52022006NOPV_Operator Withdrawal of Hearing Request_06062023_(21-213178).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_06062023_(21-213178).pdf\n\n52022006NOPV_PCO_09072022_(21-213178).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_PCO_09072022_(21-213178).pdf\n\n52022006NOPV_PCO_09072022_(21-213178)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022006NOPV/52022006NOPV_PCO_09072022_(21-213178)_text.pdf\n\n52022006NOPV_Final Order_06132023_(21-213178)_text.pdf\n\nJune 13, 2023\nVIA ELECTRONIC MAIL TO: glalicker@hilcorp.com\nGreg Lalicker\nChief Executive Officer\nHilcorp North Slope, LLC\n3800 Centerpoint Drive, Suite 1400\nAnchorage, Alaska 99503\nRe: CPF No. 5-2022-006-NOPV\nDear Mr. Lalicker:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws one of\nthe allegations of violation, makes a finding of violation, and finds that Hilcorp North Slope,\nLLC has completed the actions specified in the Notice to comply with the pipeline safety\nregulations. Therefore, this case is now closed. Service of the Final Order by e-mail is effective\nupon the date of transmission and acknowledgement of receipt as provided under 49 C.F.R.\n§ 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure (Final Order)\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Luke Saugier, Senior Vice President, Alaska, Hilcorp North Slope, LLC,\nlsaugier@hilcorp.com\nMr. Ben Wasson, P.E., Pipeline Risk and Compliance Manager, Hilcorp North Slope, LLC,\nbwasson@hilcorp.com\n\n\n\nMs. Cindy Monnin, P.E., Director of Integrity, Alaska, Hilcorp North Slope, LLC,\ncmonnin@hilcorp.com\nCONFIRMATION OF 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 )\nHilcorp North Slope, LLC, ) CPF No. 5-2022-006-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom August 2 through September 2, 2021, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), inspected the\nprocedures and records of Hilcorp North Slope, LLC’s (Hilcorp or Respondent) Lisburne\nPipeline, Greater Prudhoe Bay Pipeline (NGL Pipeline), and Oil Transit Lines-North Slope\nPipeline (OTL Pipeline) near Prudhoe Bay, Alaska. Hilcorp operates pipelines throughout the\nUnited States, including in Alaska, Texas, and Louisiana. Hilcorp is the largest pipeline operator\nand gas supplier in Alaska.1\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated September 7, 2022, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Hilcorp had committed two violations of 49 C.F.R. Part 195 and proposed ordering\nRespondent to take certain measures to correct the alleged violations. The Notice also included\nan additional two warning items pursuant to 49 C.F.R. § 190.205, which warned the operator to\ncorrect the probable violations or face possible future enforcement action.\nAfter requesting and receiving an extension of time to respond, Hilcorp responded to the Notice\nwith three letters, one on October 6, 2022, and two on November 4, 2022 (Response).\nRespondent contested Item 1 and offered additional information in response to the Notice and\nproposed compliance order. On Item 1 only, Respondent requested a hearing and an informal\nconference. Western Region and Respondent held the informal conference on February 28,\n2023. Respondent withdrew its hearing request on Item 1 on June 6, 2023. Respondent did not\nrequest a hearing on the other items and therefore has waived its right to one.\n1 Hilcorp website, available at https://www.hilcorp.com/about-us/fact-sheets/ (last accessed June 7, 2023).\n\n\n\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.208, which states:\n§ 195.208 Welding of supports and braces.\nSupports or braces may not be welded directly to pipe that will be\noperated at a pressure of more than 100 p.s.i. (689 kPa) gage.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.208 by operating the Lisburne\nPipeline at more than 100 psig with supports welded directly to pipe. Specifically, the Notice\nalleged that the Lisburne Pipeline did not meet the definition of a low-stress pipeline and should\nhave been subject to 49 CFR Part 195 and the Subpart D Construction requirements for welding\nof supports and braces at the time of construction. The Notice stated that Western Region issued\na Warning Letter on this issue to the prior operator, CPF No. 5-2019-6011W.\nIn its Response, Hilcorp contested Item 1. Hilcorp raised several arguments, including whether\nconstruction of the Lisburne Pipeline, and associated welded supports at issue, began prior to\nOctober 21, 1985, and is therefore not subject to the Part 195 design and construction\nrequirements, as excepted in § 195.401(c)(3) for intrastate pipelines. Hilcorp discussed this item\nwith Western Region during the informal conference and provided additional documentation\nregarding the date of its construction.\nAs stated in § 195.401(c)(3), the Part 195 design and construction requirements, which includes\n§ 195.208, apply to all intrastate pipelines, other than low-stress pipelines, on which construction\nbegan after October 20, 1985. The information Hilcorp provided at the informal conference\nshowed that Lisburne Pipeline is an intrastate hazardous liquid pipeline that began construction\nbefore October 20, 1985. Since Hilcorp began construction before October 20, 1985, on the\nLisburne Pipeline, the prohibitions in § 195.208 do not apply.\nIn a recommendation for final action submitted pursuant to § 190.209(b)(7), the Director\nrecommended withdrawing the alleged violation of § 195.208. Based upon the foregoing, I\nhereby order that Item 1 be withdrawn.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.214(a), which states:\n§ 195.214 Welding procedures.\n(a) Welding must be performed by a qualified welder or welding\noperator in accordance with welding procedures qualified under section 5,\nsection 12, Appendix A or Appendix B of API Std 1104 (incorporated by\nreference, see § 195.3), or Section IX of the ASME Boiler and Pressure\nVessel Code (ASME BPVC) (incorporated by reference, see § 195.3). The\nquality of the test welds used to qualify the welding procedures must be\ndetermined by destructive testing.\n\n\n\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.214(a) by failing to properly\nqualify the welding procedure used during installation of a non-pressure containing sleeve on the\nNGL Pipeline. Specifically, the Notice alleged that the welding procedure qualification record\n(PQR) was based on a previous welding procedure. At least one essential variable (speed of\ntravel) changed between the previous and current version of the welding procedure. API Std\n1104 requires a welding procedure to be requalified when any essential variables are changed.\nThe Notice alleged that Hilcorp failed to requalify this procedure before installing the non-\npressure containing sleeve on the NGL Pipeline.\nIn its Response, Hilcorp did not contest Item 2 but described actions taken to satisfy the\nproposed compliance order, and I address those actions below.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.214(a) by failing to properly qualify the welding procedure used during installation of a\nnon-pressure containing sleeve on the NGL Pipeline.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 2 in the Notice for\nviolations of 49 C.F.R. §§ 195.208 and 195.214(a), respectively. Under 49 U.S.C. § 60118(a),\neach person who engages in the transportation of hazardous liquids or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. As discussed above, Item 1 has been withdrawn. Therefore, the compliance terms\nproposed in the Notice for that Item are not included in this Order. The Director indicates that\nRespondent has taken the following actions specified in the proposed compliance order:\n1. With respect to the violation of § 195.214(a) (Item 2), Respondent has qualified\nthe welding procedure used to install the non-pressure containing sleeve on the NGL\nPipeline and conducted laboratory testing on the welds created with the unqualified\nprocedure. The Director indicated the laboratory test results were satisfactory with\nrespect to weld integrity.\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\nWARNING ITEMS\nWith respect to Items 3 and 4, the Notice alleged probable violations of Part 195, but identified\nthem as warning items pursuant to § 190.205. The warnings were for:\n\n\n\n49 C.F.R. § 195.402(a) (Item 3) ─ Respondent’s alleged failure to follow its\nprocedures for recording information identified during right-of-way inspections;\nand\n49 C.F.R. § 195.452(i)(3) (Item 4) ─ Respondent’s alleged failure to evaluate the\ncapability of leak detection means on the NGL Pipeline, so that it could modify,\nas necessary, to protect the high consequence areas.\nHilcorp presented information in its Response suggesting that it had taken certain actions to\naddress the warning items, such as revising its procedures and forms and implementing new\ntools to improve its record keeping from right-of-way inspections and formalizing the findings of\nits leak detection evaluation and installing a new leak detection system. If OPS finds a violation\nof any of these items in a subsequent inspection, Respondent may be subject to future\nenforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nJune 13, 2023\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11943}