{"operation":"document","citation":"CPF 52023018NOA","title":"ENI US OPERATING CO, INC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-12-27","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(13), 195.402(c)(3), 195.505(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023018noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023018noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023018noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023018NOA","body":"Notice of Amendment involving ENI US OPERATING CO, INC. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(13),  195.402(c)(3),  195.505(b). The case was opened on 2023-12-27 and is reported as closed as of 2024-05-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023018NOA_Closure Letter_05062024_(22-236528).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023018NOA/52023018NOA_Closure%20Letter_05062024_(22-236528).pdf\n\n52023018NOA_Closure Letter_05062024_(22-236528)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023018NOA/52023018NOA_Closure%20Letter_05062024_(22-236528)_text.pdf\n\n52023018NOA_Notice of Amendment_12272023_(22-236528).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023018NOA/52023018NOA_Notice%20of%20Amendment_12272023_(22-236528).pdf\n\n52023018NOA_Notice of Amendment_12272023_(22-236528)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023018NOA/52023018NOA_Notice%20of%20Amendment_12272023_(22-236528)_text.pdf\n\n52023018NOA_Operator Response to Notice_01252024_(22-236528).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023018NOA/52023018NOA_Operator%20Response%20to%20Notice_01252024_(22-236528).pdf\n\n52023018NOA_Notice of Amendment_12272023_(22-236528)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Massimo.insulla@eni.com\nDecember 27, 2023\nMr. Massimo Insulla\nPresident, CEO\nEni US Operating Co., Inc.\n1200 Smith St., Suite 1700\nHouston, TX 77002\nCPF 5-2023-018-NOA\nOpera\n1. § 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(2) …\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nEni’s O&M manual was inadequate to comply with the requirement that pipeline inspections are\nto be conducted following extreme weather or natural disasters, as required by § 195.414(b). A\nprocedure detailing response to possible seismic events was absent from ENI’s O&M manual\n(O&M).\nAn earthquake on 08/12/2018 required actions to inspect and evaluate any possible damage that\nmay have occurred to the pipelines. In an abundance of caution, ENI was prudent and initiated\n\n\n\nimmediate damage and leak inspections beyond the normal scheduled inspection, however no\ndirection was given by ENI’s O&M. The O&M needs to be updated to include specific post-\nearthquake action plans.\n2. § 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(13) Periodically reviewing the work done by the operator personnel to determine\nthe effectiveness of the procedures used in normal operation and maintenance and\ntaking corrective action where deficiencies are found.\nIn review of ENI’s Operations and Maintenance (O&M) procedural manual, Exhibit A-1, DOT\nPipeline O&M Manual, PHMSA found ENI’s process for determining the effectiveness of the\nprocedures used in normal operation and maintenance was inadequate.\nENI did not specify the process the Procedure Coordinator must follow to ensure the field\npersonnel’s comments were considered and procedural changes were incorporated into future\nrevisions of the O&M manual if necessary. ENI must amend its procedure to address this\ninadequacy.\n3. § 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(b) Ensure through evaluation that individuals performing covered tasks are\nqualified.\nENI’s O&M manual allowed employees to receive their initial operator qualifications based on a\nPerformance Evaluation Form checklist and oral examination administered through a virtual\nprocess using Midwest Energy Association (MEA) procedures and guidance, rather than\nqualifying operators using in-person evaluation and testing methods.\nOn March 20, 2020, PHMSA issued a notice to operators of hazardous liquid pipelines, affected\nby the COVID-19 pandemic advising operators that PHMSA did not intend to take any\nenforcement action regarding certain operator qualification and control room management\nrequirements in Part 195. PHMSA issued a Notice of Termination on May 19, 2021, that\ncommunicated the March 20, 2020 Notice would no longer be in effect beginning on May 26,\n2021.\nVirtual testing of operators to evaluate and ensure their knowledge of and capability to perform\ncovered tasks is an inadequate practice that was temporarily allowed by PHMSA to prioritize the\n\n\n\nhealth and safety of Americans prior to the development and distribution of COVID-19 vaccines.\nThis practice was not permitted after May 26, 2021.\nENI’s Operator Qualification (OQ) manual suggested this special exception would remain in-\nplace indefinitely and ENI personnel stated that they did not intend to revise this temporary\nprocess post-pandemic.\nENI must amend its OQ manual to remove the option of qualifying individuals virtually.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n180 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested (not mandated) that ENI maintain documentation of the safety improvement costs\nassociated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures)\nand submit the total to Dustin Hubbard, Director, Western Region, Pipeline and Hazardous\nMaterials Safety Administration. In correspondence concerning this matter, please refer to CPF\n5-2023-018-NOA and, for each document you submit, please provide a copy in electronic format\nwhenever possible.\nSincerely,\n\n\n\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 M. Yeager (#22-236528)\nMarty Slade, ENI Compliance Officer, Marty.Slade@eni.com\nLarry Burgess, ENI SEQ Manager, Larry.Burgess@eni.com\nDavid Hart, ENI Operations Manager, David.Hart@eni.com\n\n52023018NOA_Closure Letter_05062024_(22-236528)_text.pdf\n\nVIA ELECTRONIC MAIL TO MR. MASSIMO INSULLA\nMay 6, 2024\nMr. Massimo Insulla\nPresident, CEO\nEni US Operating Co., Inc.\n1200 Smith St., Suite 1700\nHouston, TX 77002\nCPF 5-2023-018-NOA\nClosure Letter\nDear Mr. Insulla:\nFrom April 25 through April 29, 2022, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Eni US\nOperating Co., Inc. (ENI) Nikaitchuq Pipeline (NPL) assets including the 10-inch Sales Oil Pipeline &\nthe 2-inch Diesel Pipeline, procedures for valve maintenance, maintenance and operations, and training\nand qualifications, in Prudhoe Bay, Alaska. As a result of the inspection, ENI was issued a Notice of\nAmendment (NOA) on December 27, 2023, requiring amendment of inadequate procedures. ENI\nresponded to the NOA on January 25, 2024 outlining a plan of action to address each item of the NOA.\nENI submitted its amended procedures on March 22, 2024. My staff reviewed the amended procedures,\nand it appears that the inadequacies outlined in this Notice of Amendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for your\ncooperation.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Yeager (#22-236528)\nMarty Slade, ENI Compliance Officer, Marty.Slade@eni.com\n\n\n\nLarry Burgess, ENI SEQ Manager, Larry.Burgess@eni.com\nDavid Hart, ENI Operations Manager, David.Hart@eni.com","truncated":false,"body_characters":9696}