{"operation":"document","citation":"CPF 52023063NOA","title":"HILCORP ALASKA, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-12-19","effective_on":null,"summary":"CLOSED notice of amendment citing 192.605(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023063noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023063noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023063noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023063NOA","body":"Notice of Amendment involving HILCORP ALASKA, LLC. PHMSA's enforcement data identifies the cited regulation as 192.605(a). The case was opened on 2023-12-19 and is reported as closed as of 2026-07-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023063NOA_Closure Letter (REVISED)_07162026_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Closure%20Letter%20(REVISED)_07162026_(23-294557).pdf\n\n52023063NOA_Closure Letter (REVISED)_07162026_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Closure%20Letter%20(REVISED)_07162026_(23-294557)_text.pdf\n\n52023063NOA_Closure Letter_07132026_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Closure%20Letter_07132026_(23-294557).pdf\n\n52023063NOA_Closure Letter_07132026_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Closure%20Letter_07132026_(23-294557)_text.pdf\n\n52023063NOA_Consent Agreement and Order_05142024_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Consent%20Agreement%20and%20Order_05142024_(23-294557).pdf\n\n52023063NOA_Consent Agreement and Order_05142024_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Consent%20Agreement%20and%20Order_05142024_(23-294557)_text.pdf\n\n52023063NOA_Notice of Amendment_12192023_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Notice%20of%20Amendment_12192023_(23-294557).pdf\n\n52023063NOA_Notice of Amendment_12192023_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Notice%20of%20Amendment_12192023_(23-294557)_text.pdf\n\n52023063NOA_Operator RfH SOI and Req Inf Consultation_12212023_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_Operator%20RfH%20SOI%20and%20Req%20Inf%20Consultation_12212023_(23-294557).pdf\n\n52023063NOA_PHC Hearing Canceled_05152024_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_PHC%20Hearing%20Canceled_05152024_(23-294557).pdf\n\n52023063NOA_PHC Hearing Canceled_05152024_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_PHC%20Hearing%20Canceled_05152024_(23-294557)_text.pdf\n\n52023063NOA_PHC Hearing Scheduled Revised_03272024_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_PHC%20Hearing%20Scheduled%20Revised_03272024_(23-294557).pdf\n\n52023063NOA_PHC Hearing Scheduled Revised_03272024_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_PHC%20Hearing%20Scheduled%20Revised_03272024_(23-294557)_text.pdf\n\n52023063NOA_PHC Hearing Scheduled_03272024_(23-294557).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_PHC%20Hearing%20Scheduled_03272024_(23-294557).pdf\n\n52023063NOA_PHC Hearing Scheduled_03272024_(23-294557)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023063NOA/52023063NOA_PHC%20Hearing%20Scheduled_03272024_(23-294557)_text.pdf\n\n52023063NOA_Closure Letter_07132026_(23-294557)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration\n12300 West Dakota Avenue, Suite 340\nLakewood, Colorado 80228\nVIA ELECTRONIC MAIL TO: lsaugier@hilcorp.com\nJuly 13, 2026\nLuke Saugier\nSenior Vice President\nHilcorp Alaska, LLC\n3800 Centerpoint Dr. Suite 1400\nAnchorage, AK 99503\nRE: CPF 5-2023-063-NOA / Closure\nDear Mr. Saugier:\nOn May 14, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\na Consent Order to Hilcorp Alaska, LLC (Hilcorp). This Order incorporated the terms of the\nConsent Agreement executed between the parties. The Consent Agreement included a Compliance\nPlan which required Hilcorp to complete the following:\n● Modify its procedures in accordance with the regulatory classifications detailed in\nthe agreement.\n● Follow a set schedule for integrating the subject facilities into Hilcorp’s 49 C.F.R.\nPart 191, 192, and 199 compliance programs.\nBased on our review of the documentation provided, it has been determined that Hilcorp has\ncomplied with the terms of the Consent Agreement.\nAccordingly, this case is now closed, and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Rusty Allen, Pipeline Risk and Compliance Manager, Hilcorp, rusty.allen@hilcorp.com\nChris Heimlich, Pipeline Compliance Engineer, Hilcorp, cheimlich@hilcorp.com\n\n52023063NOA_PHC Hearing Scheduled Revised_03272024_(23-294557)_text.pdf\n\nMarch 27, 2024\nVIA ELECTRONIC MAIL TO: cmonnin@hilcorp.com and dustin.hubbard@dot.gov\nMs. Cindy Monnin\nDirector of Integrity – Alaska\nHilcorp Alaska, LLC\n3800 Centerpoint Dr., Suite 1400\nAnchorage, AK 99503\nMr. Dustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\n12300 W. Dakota Avenue, Suite 110\nLakewood, CO 80228\nRe: Notice of Hearing, Hilcorp Alaska, LLC\nCPF No. 5-2023-063-NOA\nDear Ms. Monnin and Mr. Hubbard:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nAmendment issued by the Pipeline and Hazardous Materials Safety Administration in the above-\nreferenced case. The hearing will be held via videoconference on September 12th, 2024,\nbeginning at 8:30 a.m. Alaska Time. The videoconference information will be provided prior to\nthe hearing.\nAt least 10 calendar days prior to the hearing (or by September 2nd, 2024), both parties must\nsubmit and exchange any additional written materials they intend to present at the hearing and\nthe name and email address of each attendee. This information should be provided\nelectronically. Materials not submitted by this date may be excluded. If you have any questions,\nplease do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Ms. Denali Kemppel, General Counsel, Hilcorp Alaska, LLC\ndkemppel@hilcorp.com\nMs. Alexandra Iorio, Counsel, Western Region, Office of Pipeline Safety, PHMSA,\nalexandra.iorio@dot.gov\nMs. Gabrielle St. Pierre, Counsel, Western Region, Office of Pipeline Safety, PHMSA,\ngabrielle.st.pierre@dot.gov\n\n52023063NOA_PHC Hearing Scheduled_03272024_(23-294557)_text.pdf\n\nMarch 27, 2024\nVIA ELECTRONIC MAIL TO: cmonnin@hilcorp.com and dustin.hubbard@dot.gov\nMs. Cindy Monnin\nDirector of Integrity – Alaska\nHilcorp Alaska, LLC\n3800 Centerpoint Dr., Suite 1400\nAnchorage, AK 99503\nMr. Dustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\n12300 W. Dakota Avenue, Suite 110\nLakewood, CO 80228\nRe: Notice of Hearing, Hilcorp Alaska, LLC\nCPF No. 5-2023-063-NOA\nDear Ms. Monnin and Mr. Hubbard:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nAmendment issued by the Pipeline and Hazardous Materials Safety Administration in the above-\nreferenced case. The hearing will be held via videoconference on September 12th, 2024,\nbeginning at 8:30 a.m. Alaska Time. The videoconference information will be provided prior to\nthe hearing.\nAt least 10 calendar days prior to the hearing (or by September 2nd, 2024), both parties must\nsubmit and exchange any additional written materials they intend to present at the hearing and\nthe name and email address of each attendee. This information should be provided\nelectronically. Materials not submitted by this date may be excluded. If you have any questions,\nplease do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Ms. Denali Kemppel, General Counsel, Hilcorp Alaska, LLC\ndkemppel@hilcorp.com\nMs. Alexandra Iorio, Counsel, Western Region, Office of Pipeline Safety, PHMSA,\nalexandra.iorio@dot.gov\nMs. Gabrielle St. Pierre, Counsel, Western Region, Office of Pipeline Safety, PHMSA,\ngabrielle.st.pierre@dot.gov\n\n52023063NOA_Notice of Amendment_12192023_(23-294557)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: cmonnin@hilcorp.com\nDecember 19, 2023\nMs. Cindy Monnin\nDirector of Integrity - Alaska\nHilcorp Alaska, LLC\n3800 Centerpoint Dr., Ste 1400\nAnchorage, AK 99503\nCPF 5-2023-063-NOA\nDear Ms. Monnin:\nSince 2012, there have been questions regarding the regulatory classification and jurisdictional\nstatus of the surface piping and associated facilities at Hilcorp Alaska LLC’s (Hilcorp) Swanson\nRiver Field, Kenai Gas Field, and Pretty Creek Unit (Cook Inlet Facilities), all located in the\nCook Inlet area of Alaska.\nThe facilities at these locations were originally designed and operated as production fields.\nHowever, they now operate as both gas production and underground storage, containing a\ncombination of production, gathering and transmission piping as well as underground natural gas\nstorage. The Pipeline and Hazardous Materials Safety Administration (PHMSA) regulates,\npursuant to 49 U.S.C. § 60101 et seq., gathering and transmission piping and finds that a large\nportion of piping at these facilities is subject to its pipeline safety regulations in accordance with\n49 CFR Parts 191, 192 and 199.\nPHMSA has identified that Hilcorp does not have an adequate procedure classifying the surface\npiping and associated facilities at the above locations.\nHilcorp’s procedural inadequacy is described below:\n\n\n\n1. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed and\nupdated by the operator at intervals not exceeding 15 months, but at least once each\ncalendar year. This manual must be prepared before operations of a pipeline system\ncommence. Appropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\nHilcorp’s procedures are inadequate for conducting operations and maintenance activities and for\nemergency response because they do not properly define how to determine what piping in its\nCook Inlet Facilities is transmission piping, what piping is gathering piping, and what piping is\nproduction piping. 49 CFR §§ 192.3 and 192.9 define PHMSA jurisdictional transmission and\ngathering lines. However, Hilcorp’s procedures are unclear as to which pipelines are subject to\nthe federal pipeline safety regulations.\nWithout clear determinations of what pipelines are subject to the pipeline safety regulations,\nPHMSA cannot confirm that the jurisdictional piping is being maintained in accordance with the\ncode.\nTherefore, Hilcorp must amend its procedures to properly define its surface piping and connected\nfacilities at the Cook Inlet Facilities in accordance with 49 CFR §§ 192.3 and 192.9.\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\nEnforcement 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\n\n\n\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n30 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 Hilcorp Alaska, LLC maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline\nand Hazardous Materials Safety Administration. In correspondence concerning this matter,\nplease refer to CPF 5-2023-063-NOA and, for each document you submit, please provide a copy\nin electronic format whenever possible.\nSincerely,\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 G. St. Pierre, C. Dolchok (#23-294557)\n\n52023063NOA_Consent Agreement and Order_05142024_(23-294557)_text.pdf\n\nMay 14, 2024\nVIA ELECTRONIC MAIL TO: glalicker@hilcorp.com\nMr. Greg Lalicker\nChief Executive Officer\nHilcorp Alaska, LLC\n1111 Travis Street\nHouston, Texas 77002\nRe: CPF No. 5-2023-063-NOA\nDear Mr. Lalicker:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Hilcorp\nAlaska, LLC, which was executed on May 10, 2024. Service of the Consent Order and Consent\nAgreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Order and Consent Agreement\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Luke Saugier, Senior Vice President, Hilcorp Alaska, LLC,\nlsaugier@hilcorp.com\nMs. Cynthia Monnin P.E., Director of Integrity, Hilcorp Alaska, LLC,\ncmonnin@hilcorp.com\n\n\n\nMs. Denali Kemppel, General Counsel, Hilcorp Alaska, LLC,\ndkemppel@hilcorp.com\nMr. James Curry, outside counsel for Hilcorp Alaska, LLC, Babst Calland,\njcurry@babstcalland.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 Alaska, LLC, ) CPF No. 5-2023-063-NOA\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nSince 2012, Hilcorp Alaska, LLC (Hilcorp) and the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) have engaged in good faith discussions regarding the jurisdictional\nstatus and appropriate regulatory classification of certain surface piping and associated facilities\nthat service native gas production and underground gas storage in the Swanson River Field,\nKenai Gas Field, and Pretty Creek Unit in the Cook Inlet area in Alaska. PHMSA has\nmaintained that certain of the facilities are jurisdictional under 49 U.S.C. § 60101 et seq. and not\notherwise exempt from PHMSA’s pipeline safety regulations. Hilcorp has contested the\napplicability of the pipeline safety regulations as it relates to select facilities.\nBy letter dated December 19, 2023, the Director, Western Region, PHMSA, Office of Pipeline\nSafety, issued a Notice of Amendment (Notice) to Hilcorp alleging Hilcorp’s procedures were\ninadequate for conducting operations, maintenance activities and for emergency response\nbecause it was unclear which pipelines were subject to the federal pipeline safety regulations.\nIn response to the Notice, Hilcorp requested a hearing, contesting the Notice in its entirety, while\nalso asking to continue the discussions regarding this topic. As a result of those discussions,\nHilcorp and PHMSA have agreed to a Consent Agreement that requires Hilcorp to modify its\nprocedures in accordance with the regulatory classifications detailed below and sets a schedule\nfor integrating the subject facilities into Hilcorp’s 49 C.F.R. Part 191, 192 and 199 compliance\nprograms.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Hilcorp is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and\n49 C.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district\ncourt of the United States.\n\n\n\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nMay 14, 2024\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\nHilcorp Alaska, LLC, ) CPF No. 5-2023-063-NOA\n)\n)\n)\nRespondent. )\nCONSENT AGREEMENT\nSince 2012, Hilcorp Alaska, LLC (Hilcorp) and the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) (collectively, the Parties) have engaged in good faith discussions\nregarding the jurisdictional status and appropriate regulatory classification of certain surface piping\nand associated facilities (Facilities) that service native gas production and underground gas storage\nin the Swanson River Field (SRF), Kenai Gas Field (KGF), and Pretty Creek Unit (PCU)\n(collectively, the Alaska Fields) in the Cook Inlet area in Alaska. PHMSA has maintained that\ncertain of the Facilities are jurisdictional under 49 U.S.C. § 60101 et seq. and not otherwise exempt\nfrom PHMSA's pipeline safety regulations. Hilcorp has contested the applicability of the pipeline\nsafety regulations as it relates to select Facilities. In an effort to evaluate Hilcorp's position, PHMSA\nhas toured the Facilities and reviewed related documentation and drawings.\nThe Parties acknowledge that the Alaska Fields were originally designed and operated as production\nfields not subject to PHMSA's statutory authority. However, the Alaska Fields operational\ncharacteristics have changed over time and are now involved in PHMSA regulated activities. Due\nto the original design and repurposing of the operations at the Alaska Fields, the Facilities contain\na highly integrated combination of gas production and gas storage, with many of the Facilities\nserving both of these functions.\nBy letter dated December 19, 2023, the Director, Western Region, PHMSA, Office of Pipeline\nSafety, issued a Notice of Amendment (Notice) to Hilcorp alleging Hilcorp's procedures were\ninadequate for conducting operations, maintenance activities and for emergency response because\nit was unclear which pipelines were subject to the federal pipeline safety regulations.\nIn response to the Notice, Hilcorp requested a hearing, contesting the Notice in its entirety, while\nalso asking to continue the discussions regarding this topic. In order to resolve these long running\ndiscussions, the Notice of Amendment, and to avoid continued uncertainty and further proceedings\nor litigation, the Parties have reached this agreement (Agreement). The purposes of this Agreement\n\n\n\nare to establish the regulatory classification of the Facilities and to set an orderly schedule for\nintegrating certain Facilities into Hilcorp's 49 C.F.R. Part 191, 192 and 199 compliance programs.\nTherefore, pursuant to 49 U.S.C. § 60101, es seq. and 49 C.F.R. Part 190, without adjudication of\nany issue of fact or law, and upon consent and agreement of Hilcorp and PHMSA, the Parties agree\nas follows:\nI. General Provisions\n1. Acknowledgements. Hilcorp acknowledges that as of the Effective Date of this\nAgreement, Hilcorp, as the operator of pipeline facilities that transport natural gas in the\nAlaska Fields, is subject to the jurisdiction of the Federal Pipeline Safety Laws, 49\nU.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder.\nSpecifically, Hilcorp acknowledges the following:\na. The Covered Transmission Facilities listed in Tables 1-3 in Attachment Band\ndepicted on the drawings in Attachment C, are gas transmission pipelines\nsubject to the jurisdiction of the Federal Pipeline Safety Laws, 49 U.S.C. §\n60101, et seq., and the relevant regulations and administrative orders issued\nthereunder.\nb. Pursuant to 49 C.F.R. 192.3, an underground natural gas storage facility\n(UNGSF) typically extends to the wing-valve assemblies that isolate the\nwellhead from connected piping beyond the wing-valve assemblies. PHMSA\nconsiders the transition from an UNGSF to regulated piping to occur at the valve\nused to shut the well in.\nc. The Covered Gathering Facilities listed in Tables 1-3 in Attachment B and\ndepicted on the drawings in Attachment C, are gas gathering pipelines and are\nsubject to the jurisdiction of the Federal Pipeline Safety Laws, 49 U.S.C. §\n60101, et seq., and the relevant regulations and administrative orders issued\nthereunder. While the Covered Gathering Facilities qualify as a mix of Type C\nand Type R gathering, Hilcorp will classify all of the Covered Gathering\nFacilities as Type C.\nd. Production Facilities1 are pipelines and facilities at the Alaska Fields that are\ndetermined to not be Covered Transmission Facilities or Covered Gathering\n1 While the on-pad treatment, separation, compression facilities and associated facility piping listed in Tables 1-3 are\nproduction equipment, the Parties agree that PHMSA may inspect and regulate any pressure control devices located within\nthose facilities that Hilcorp relies on to prevent exceedance of an MAOP established pursuant to this Agreement on an\ninbound or outbound Part 192 regulated transmission pipeline, Type A or B gathering pipeline should one arise in the\nfuture, or Type C gathering pipeline above 12.75 inches outside diameter. These Pressure Control Devices will be\nspecifically identified pursuant to Section 5(g) of the Compliance plan.\n\n\n\nFacilities. The Production Facilities are not currently subject to the Federal\nPipeline Safety Laws, 49 U.S.C. § 60101, et seq., and the regulations and\nadministrative orders issued thereunder.\ne. Out-of-Service Well Pipelines2 as defined in Table 4 in Attachment B are\npipelines not currently used in Hilcorp's operations. Hilcorp will purge the Out-\nof-Service Well Pipelines and will include these pipelines in its API 570\ninspection program. If Hilcorp returns any of these Out-of-Service Well\nPipelines to service by placing product in the pipelines, Hilcorp will follow its\nprocedures to determine whether the line should be treated as a Covered\nTransmission Facility, Covered Gathering Facility, or an unregulated\nProduction Facility. Before returning any Out-of-Service Well Pipeline to\nservice as a transmission or Type A, B or C gathering line, Hilcorp will perform\na Part 192, subpart J pressure test on such line. Hilcorp will add cathodic\nprotection, where required, to any Out-of-Service Well Pipeline that is returned\nto Part 192 service as a transmission or Type A or B gathering line or a Type C\ngathering line when required3 within 2 years of return to service.\n2. Scope of Agreement. This Agreement identifies the classification for the Covered\nTransmission Facilities, Covered Gathering Facilities, Production Facilities, and Out-\nof-Service Well Pipelines as set out in Tables 1-4 in Attachment B, and Pressure Control\nDevices as identified by requirement in Attachment A Compliance Plan Section 5(g). This\nAgreement does not apply to any other assets not specifically identified. 4\n3. Hilcorp agrees to complete the actions in Attachment A to this Agreement\n(Compliance Plan) and abide by the terms of this Agreement. This Agreement does not\nconstitute a finding of violation of any law or regulation and may not be used in any civil,\ncriminal, or administrative proceeding of any kind as evidence or proof of any fact, fault,\nor liability, or as evidence of the violation of any law, rule, regulation, or requirement,\nexcept in a proceeding to enforce the provisions of this Agreement.\n4. After Hilcorp returns a signed Agreement to PHMSA, the Agency's representative\nwill present it to the Associate Administrator for Pipeline Safety, recommending that the\n2 All jurisdictional pipeline is considered in service and regulated pursuant to Part 192 until they are abandoned per the\nrequirements stated within Part 192. See ADB-2016-05 (81 FR 54512).\n3 Corrosion control is required on Type C gathering lines that are greater than 12.75 inches, and on Type C gathering\nlines greater than or equal to 8.625 inches when they are located near a building intended for human occupancy or\nother impacted site, as determined using either method in 49 C.F.R. § 192.9(t)(l).\n4 The Parties recognize that Hilcorp already operates certain transmission pipelines in the vicinity of the Alaska Fields\npursuant to 49 C.F.R. Part 192. This agreement does not apply to those transmission lines: KGF-A, KGF-B, Jump-\nOver 6, and SRG.\n\n\n\nAssociate Administrator adopt the terms of this Agreement into a Consent Order\nincorporating the terms of this Agreement. The terms of this Agreement constitute an offer\nof settlement until accepted by the Associate Administrator. If the Associate Administrator\naccepts, the Associate Administrator will issue a Consent Order incorporating the terms of\nthis Agreement.\n5. Hilcorp consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Hilcorp waives all rights to\ncontest the validity of the Consent Order or this Agreement, including all rights to\nadministrative or judicial hearings or appeals, except as set forth herein. Hilcorp agrees to\nwithdraw its request for an administrative hearing regarding the Notice of Amendment.\n6. This Agreement shall apply to and be binding upon PHMSA, and upon Hilcorp, its\nofficers, directors, employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Hilcorp agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Hilcorp's officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n7. For all transfers of ownership or operating responsibility of the Facilities, Hilcorp\nwill provide a copy of this Agreement to the prospective transferee at least 30 days prior to\nsuch transfer. Hilcorp will provide written notice of a transfer of ownership or operating\nresponsibility to the Western Region Director (Director) within 30 days after such transfer.\n8. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this\nAgreement. The Parties acknowledge that there are no representations, agreements or\nunderstandings relating to this settlement other than those expressly contained in this\nAgreement.\n9. Nothing in this Agreement affects or relieves Hilcorp of its responsibility to comply\nwith all applicable requirements of the Federal Pipeline Safety Laws, 49 U.S.C. § 60101, et\nseq., and the regulations and orders issued thereunder; and nothing in this Agreement affects\nPHMSA' s right of access, entry, inspection, and information gathering or PHMSA' s\nauthority to bring enforcement actions against Hilcorp pursuant to the Federal Pipeline\nSafety laws, the regulations and orders issued thereunder, or any other provision of Federal\nor state law; with the following mutual understandings regarding timing:\na. The Parties agree that, to allow Hilcorp time to integrate the Covered\nTransmission Facilities and Covered Gathering Facilities into Hilcorp's\nPHMSA compliance program, PHMSA's inspections of the Covered\nTransmission Facilities and Covered Gathering Facilities during the pendency\nof this Agreement will be limited to inspections to verify compliance with this\nAgreement, in accordance with the timelines stated within the Compliance\nPlan, and to investigate and address existing or developing safety conditions or\n\n\n\nconcerns.\nb. The Parties agree that nothing in this Agreement prevents PHMSA from\ninvestigating a pipeline incident on any Hilcorp pipeline facilities subject to\nPHMSA's regulations or employing its Corrective Action Order or Safety Order\nauthorities under 49 U.S.C. §§ 60112 and 60117(1), respectively.\nc. The Parties agree that, in light of the Parties' long-running discussions of the\nappropriate jurisdictional status and regulatory classification of the Facilities,\nPHMSA will not bring actions for alleged violations of the Pipeline Safety Laws\nor PHMSA's Pipeline Safety Regulations that may have occurred with respect\nto the Covered Transmission Facilities and Covered Gathering Facilities prior\nto the Effective Date.\nd. The Parties agree that during the pendency of this Agreement, PHMSA will not\nbring enforcement actions against Hilcorp regarding alleged violations of the\nPipeline Safety Laws or PHMSA's Pipeline Safety Regulations with respect to\nthe Covered Transmission Facilities and Covered Gathering Facilities, except\nthat PHMSA may bring an enforcement action with regard to alleged violations\nfor failing to comply with the terms of this Agreement or enforcement actions\nnecessary to address a threat to public safety or the environment.\ne. Notwithstanding subparagraph (d) of this paragraph, the Parties agree that\nPHMSA may commence normal inspection and enforcement activities for the\nactivities covered in the Compliance Plan on expiration of the various\ncompliance timeframes set forth in the Compliance Plan.\n10. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Hilcorp's pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or\nregulations. Respondent remains responsible for achieving and maintaining compliance\nwith all applicable Federal, State, and local laws, regulations, and permits.\n11. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for\nany injuries or damages to persons or property arising from acts or omissions of Hilcorp or\nits officers, employees, or agents carrying out the work required by this Agreement. Hilcorp\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees,\nagents, and representatives from any and all causes of action arising from any acts or\nomissions of Hilcorp or its contractors in carrying out any work required by this Agreement.\n12. For the purposes of this specific agreement, Tables 1-4 in Attachment B identify all\ncurrent PHMSA regulated and non-regulated piping as follows:\n\n\n\na. Transmission piping at the Alaska Fields is identified as all piping transporting gas\nto an underground natural gas storage facility from transportation facilities not\nsubject to this agreement. 5\nb. Gathering piping at the Alaska Fields is identified as all piping transporting gas from\nan underground natural gas storage facility into transportation facilities not subject\nto this agreement. 6\n7\n,\nc. With the exception of pressure control devices, as identified per the Compliance\nPlan, all other piping at the Alaska Fields is non-regulated.\n13. Hilcorp agrees to amend its procedures to explain how classification determinations\nare made and will be made at its facilities going forward, which shall, given the integration\nof gas storage and gas production at the Alaska Fields, generally provide for a transmission\nclassification for lines feeding storage and a gathering classification for lines exiting\nstorage. Hilcorp agrees to submit the amended procedures to the Director for approval\nwithin 90 days of the Effective Date.\n14. Hilcorp agrees it will amend its procedures to address any changes in law,\nregulation, or operational status of any of the existing Facilities set out in Tables 1-4 in\nAttachment B that may affect their jurisdictional status or regulatory classifications. Hilcorp\nagrees to submit the amended procedures to the Director for approval within 90 days of the\nEffective Date.\n15. Hilcorp agrees to amend its procedures to account for the possibility of production\noperations permanently ceasing at any Alaska Field. The procedures will include language\nthat if production operations permanently cease, In that instance, Hilcorp's procedures shall\nalso include language requiring it to follow the pipeline safety regulations existing at the\ntime that production ceases, the steps it must follow to properly integrate said facilities into\nits existing Part 191 and 192 programs, and an appropriate time frame in which to bring\nsaid facilities into compliance. Hilcorp agrees to submit the amended procedures to the\nDirector for approval within 90 days of the Effective Date\n16. The Director may grant an extension of time for compliance with any of the terms\nof this Agreement, including the Compliance Plan, upon a written request timely\nsubmitted demonstrating good cause for an extension. Absent unexpected delays, Hilcorp\n5 E.g., transmission pipelines KGF-A, KGF-B, Jump-Over 6, and SRG, and the Beluga transmission pipeline operated\nby Alaska Pipeline Company near Pretty Creek.\n6 As stated in paragraph 1(c), all gathering piping is considered Type C gathering as defined and regulated under 49\nCFR Part 192.\n7 E.g., transmission pipelines KGF-A, KGF-B, Jump-Over 6, and SRG, and the Beluga transmission pipeline operated\nby Alaska Pipeline Company near Pretty Creek.\n\n\n\nwill submit any requests for extension no less than 30 days before the applicable deadline.\nThe Director shall respond to any such requests within 14 days of receipt.\nII. Review and Approval Process\n17. With respect to any submission of any document or plan required by this Agreement\ntp.at requires the approval of the Director, the Director may: (a) approve, in whole or in\npart, the submission, (b) approve the submission on specified, reasonable conditions, (c)\ndisapprove, in whole or in part, the submission, or (d) any combination of the foregoing.\nThe Director shall respond within 60 days of a submission by Hilcorp. If the Director\napproves, approves in part, or approves with conditions, Hilcorp will take all action as\napproved by the Director, subject to Hilcorp's right to invoke the dispute resolution\nprocedures in Section III. If the Director disapproves all or any portion of the submission,\nthe Director will provide Hilcorp with a written notice of the deficiencies and a reasonable\nperiod of time to correct them. Hilcorp will correct all deficiencies within the time specified\nby the Director and resubmit for approval. If the Director does not act on a submission or\nany document or plan submitted under this paragraph within 60 days of submission, Hilcorp\nmay proceed as provided in the document or plan, as submitted.\nIII. Force Majeure\n18. Hilcorp agrees to perform all the terms of this Agreement within the timeframes\nestablished under the Compliance Plan, unless performance is delayed by a force majeure.\nFor purposes of this Agreement, a force majeure is defined as an event arising from causes\nbeyond the control of Hilcorp, any entity controlled by Hilcorp, or Hilcorp's contractors\nwhich delays or prevents performance of any obligation under this Agreement despite\nHilcorp's commercially reasonable efforts to fulfill the obligation.\n19. If a force majeure event occurs or has occurred that may delay the performance of\nany term of this Agreement beyond the approved timeframe, Hilcorp shall notify the\nDirector in writing, within 10 business days of when Hilcorp knew that the event might\ncause a delay. Such notice shall identify the cause of the delay or anticipated delay and the\nanticipated duration of the delay; state the measures taken or to be taken to prevent or\nminimize the delay; and estimate the timetable for implementation of those measures.\nFailure to comply with the notice provision of this paragraph and to undertake reasonable\nefforts to avoid and minimize the delay shall waive any claim of force majeure by Hilcorp.\n20. If the Director determines, upon notification by Hilcorp, that a delay or anticipated\ndelay in performance is or was attributable to a force majeure, then the Director will extend\nthe time period for the performance of that term for a reasonable period. The Director will\nnotify Hilcorp, in writing, of the length of any extension of performance of such terms\naffected by the force majeure. Any such extensions shall not alter Hilcorp's obligation to\n\n\n\nperform or complete other terms of this Agreement which are not affected by the force\nmajeure.\nIV. Dispute Resolution\n21. The Director and Hilcorp will informally attempt to resolve any disputes arising\nunder this Agreement, including but not limited to any decision of the Director. If Hilcorp\nand the Director are unable to informally resolve the dispute within 15 calendar days,\nHilcorp may request in writing, within 10 calendar days of any failed attempt at informal\nresolution, a written determination resolving the dispute from the Associate Administrator\nfor Pipeline Safety, PHMSA. Along with its request, Hilcorp will provide the Associate\nAdministrator with all information Hilcorp believes is relevant to the dispute. If the request\nis submitted as provided herein, the Associate Administrator will issue a final determination\nin writing within 30 calendar days. Decisions of the Associate Administrator under this\nparagraph will constitute final agency action subject to judicial review. The existence of a\ndispute and PHMSA' s consideration of matters placed in dispute will not excuse, toll, or\nsuspend any term or timeframe for completion of any work to be performed under this\nAgreement during the pendency of the dispute resolution process, except as agreed by the\nDirector or the Associate Administrator in writing or ordered by a court of competent\njurisdiction.\nV. Recordkeeping and Information Disclosure\n22. Unless otherwise required in this Agreement, Hilcorp agrees to maintain records\ndemonstrating compliance with all requirements of this Agreements for a period of at least\nfive years following completion of the Compliance Plan, or as otherwise required by law\nor regulation, whichever period is longer.\n23. For any reports, plans, or other deliverables required to be submitted to PHMSA\npursuant to this Agreement, Hilcorp may assert a claim of business confidentiality or other\nprotections applicable to the release of information by PHMSA, covering part or all of the\ninformation required to be submitted to PHMSA pursuant to this Agreement in accordance\nwith 49 C.F.R. Part 7 and 49 C.F.R. § 190.343. Respondent must mark the claim of\nconfidentiality in writing on each page and include a statement specifying the grounds for\neach claim of confidentially. PHMSA will","truncated":true,"body_characters":61003}