# MID-ALASKA PIPELINE, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 52023002NOPV
- **title:** MID-ALASKA PIPELINE, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2023-02-06
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.452(h)(4)(i)(C), 195.579(c), 195.583(a).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/52023002NOPV
**body:**

Notice of Probable Violation involving MID-ALASKA PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.452(h)(4)(i)(C),  195.579(c),  195.583(a). The case was opened on 2023-02-06 and is reported as closed as of 2023-05-11. Proposed civil penalty: $50,200. Assessed civil penalty: $50,200. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

52023002NOPV_Final Order_04262023_(22-239265).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023002NOPV/52023002NOPV_Final%20Order_04262023_(22-239265).pdf

52023002NOPV_Final Order_04262023_(22-239265)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023002NOPV/52023002NOPV_Final%20Order_04262023_(22-239265)_text.pdf

52023002NOPV_Operator Response to Notice_03032023_(22-239265).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023002NOPV/52023002NOPV_Operator%20Response%20to%20Notice_03032023_(22-239265).pdf

52023002NOPV_PCP_02062023_(22-239265).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023002NOPV/52023002NOPV_PCP_02062023_(22-239265).pdf

52023002NOPV_PCP_02062023_(22-239265)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023002NOPV/52023002NOPV_PCP_02062023_(22-239265)_text.pdf

52023002NOPV_Final Order_04262023_(22-239265)_text.pdf

April 26, 2023
VIA ELECTRONIC MAIL TO: wchristian@midalaska.com
Mr. Warren Christian
President
Mid-Alaska Pipeline, LLC
615 Bidwell Ave., Suite 100
Fairbanks, Alaska 99701
Re: CPF No. 5-2023-002-NOPV
Dear Mr. Christian:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and assesses a civil penalty of $50,200. The penalty payment terms are set forth in the
Final Order. This enforcement action closes automatically upon receipt of payment. Service of
the Final Order by e-mail is effective upon the date of transmission and acknowledgement of
receipt as provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. Levi Frampton, Pipeline Director and Vice President, Mid-Alaska Pipeline, LLC,
lframpton@midalaska.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Mid-Alaska Pipeline, LLC, ) CPF No. 5-2023-002-NOPV
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
From September 12 through September 16, 2022, pursuant to 49 U.S.C. § 60117, a
representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office
of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and
records of Mid-Alaska Pipeline, LLC (Mid-Alaska or Respondent) in North Pole and Fairbanks,
Alaska. Mid-Alaska owns and operates a 2.3-mile buried pipeline system transporting crude oil.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated February 6, 2023, a Notice of Probable Violation and Proposed Civil
Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that
Mid-Alaska had violated 49 C.F.R. § 195.452(h)(4)(i)(C) and proposed assessing a civil penalty
of $50,200 for the alleged violation. The Notice also included an additional two warning items
pursuant to 49 C.F.R. § 190.205, which warned the operator to correct the probable violations or
face possible future enforcement action
Mid-Alaska responded to the Notice by letter dated March 3, 2023 (Response). Mid-Alaska
offered additional information in response to the Notice and requested that the proposed civil
penalty be reduced. Respondent did not request a hearing and therefore has waived its right to
one.
FINDING OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.452, which states:
§ 195.452 Pipeline integrity management in high consequence areas.
(a) ….
(h) What actions must an operator take to address integrity issues? —



(4) Special requirements for scheduling remediation —
(i) Immediate repair conditions. An operator's evaluation and
remediation schedule must provide for immediate repair conditions. To
maintain safety, an operator must temporarily reduce the operating pressure
or shut down the pipeline until the operator completes the repair of these
conditions. An operator must calculate the temporary reduction in operating
pressure using the formulas referenced in paragraph (h)(4)(i)(B) of this
section. If no suitable remaining strength calculation method can be
identified, an operator must implement a minimum 20 percent or greater
operating pressure reduction, based on actual operating pressure for two
months prior to the date of inspection, until the anomaly is repaired. An
operator must treat the following conditions as immediate repair conditions:
(C) A dent located on the top of the pipeline (above the 4 and 8 o'clock
positions) that has any indication of metal loss, cracking or a stress riser.
The Notice alleged that Respondent violated 49 C.F.R. § 195.452(h)(4)(i)(C) by failing to reduce
pipeline operating pressure or shut down the pipeline after identifying an immediate repair
condition. Specifically, the Notice alleged that Mid-Alaska failed to implement a 20 percent or
greater operating pressure reduction until it repaired a one percent depth dent with metal loss
which it detected on June 22, 2022. The Notice alleged that no operating pressure reduction
occurred between the time of the discovery of the immediate repair condition on June 22 and the
time of repair on June 25, 2022.
In its Response, Mid-Alaska did not contest the proposed violation, but instead provided
information that it argued warrants a reduction in the amount of the penalty associated with the
Item.1 These arguments are summarized in the section below.
Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.
§ 195.452(h)(4)(i)(C) by failing to reduce pipeline operating pressure or shut down the pipeline
after identifying an immediate repair condition.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.2
In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I
must consider the following criteria: the nature, circumstances, and gravity of the violation,
1 Response, at 1.
2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223 for adjusted amounts.



including adverse impact on the environment; the degree of Respondent’s culpability; the history
of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue
doing business; the good faith of Respondent in attempting to comply with the pipeline safety
regulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.
In addition, I may consider the economic benefit gained from the violation without any reduction
because of subsequent damages, and such other matters as justice may require. The Notice
proposed a total civil penalty of $50,200 for the violation cited above.
Item 1: The Notice proposed a civil penalty of $50,200 for Respondent’s violation of 49 C.F.R.
§ 195.452, for failing to reduce pipeline operating pressure or shut down the pipeline after
identifying an immediate repair condition. The Respondent makes multiple arguments for a
reduction in the civil penalty amount under this item. First, Mid-Alaska stated that, based on its
discussions with inspection consultants, it concluded that the one percent depth dent with metal
loss was a “stable” construction defect.
3 However, the opinion of the operator or its consultants
does not modify the regulatory obligation to shut down or reduce the pressure in a pipeline upon
discovery of an immediate repair condition. Latent defects nonetheless pose risks to the safe
operation of pipelines. Second, Mid-Alaska noted that the pipeline was already operating at 50-
60 percent of its Maximum Operating Pressure (MOP), implying that the risk posed by the defect
was low.
4 However, § 195.452(h)(4)(i)(C) requires a 20 percent reduction in the actual operating
pressure, not the MOP. Third, Mid-Alaska argued that it was unable to shut down its system or
implement a pressure reduction without “significant disturbance” to its infrastructure and
operations.
5 However, the regulations are clear that pressure reductions and shutdowns are the
required contingencies upon discovery of an immediate repair condition. If Mid-Alaska’s
systems are unable to withstand these contingency plans, it should modify its systems to include
adequate pressure controls in case of future immediate repair conditions. After considering all of
Respondent’s arguments, I do not find a basis for reducing the civil penalty as proposed.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $50,200 for violation of 49 C.F.R. § 195.452(h)(4)(i)(C).
Payment of the civil penalty must be made within 20 days after receipt of this Final Order.
Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer
through the Federal Reserve Communications System (Fedwire), to the account of the U.S.
Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire
transfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation
Administration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,
Oklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.
Failure to pay the civil penalty will result in accrual of interest at the current annual rate in
accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those
same authorities, a late penalty charge of six percent (6%) per annum will be charged if payment
is not made within 110 days of service. Furthermore, failure to pay the civil penalty may result
3 Response, at 2.
4 Id, at 2.
5 Id, at 2.



in referral of the matter to the Attorney General for appropriate action in a district court of the
United States.
WARNING ITEMS
With respect to Items 2 and 3, the Notice alleged probable violations of Part 195, but identified
them as warning items pursuant to § 190.205. The warnings were for:
49 C.F.R. § 195.579(c) (Item 2) ─ Respondent’s alleged failure to inspect the
internal surface of a pipe for evidence of corrosion upon removal from a pipeline;
and
49 C.F.R. § 195.583(a) (Item 3) ─ Respondent’s alleged failure to inspect the
PetroStar Metering Inc. Station (PSIMS) portion of their pipeline system for
atmospheric corrosion at the required intervals.
Mid-Alaska requested withdrawal of Item 2, because it claims that the removed valves were
visually inspected and showed no evidence of an imminent hazard, requested withdrawal of Item
3 because it claims that the inspection was not recorded due to a clerical error by a third-party
contractor, and presented information showing that it had taken certain actions to address the
cited items. Under § 190.205, PHMSA does not adjudicate warning items to determine whether
a probable violation occurred. If OPS finds a violation of any of these items in a subsequent
inspection, Respondent may be subject to future enforcement action.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address. The written petition must be received no later than
20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a
brief statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing
of a petition automatically stays the payment of any civil penalty assessed. The other terms of
the order, including any corrective action, remain in effect unless the Associate Administrator,
upon request, grants a stay. If Respondent submits payment of the civil penalty, the Final Order
becomes the final administrative decision and the right to petition for reconsideration is waived.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
April 26, 2023
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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