U.S. Department 400 Seventh Street, S.W. of Transportation Washington. D.C. 20590 Pipeline and Hazardous Materials Safety Administration JUN 2 1 2030 Mr. John W. Gibson I Oneok, Inc./Norteno Pipeline Company Tulsa, OK 74103 ~. President I Oneok Plaza I 100 W 5th Street I Re: CPF No. 4-2005- 1003 Dear Mr. Gibson: Enclosed is a decision on the petition for reconsideration filed in above-referenced case. The Associate Administrator for Pipeline Safety has denied the petition. Accordingly, the payment of the remaining $27,500 civil penalty is due immediatelt. In addition, please be advised that appropriate corrective action regarding the Warning Item specified in the Final Order must also be taken if such action has not already been . Your receipt of this decision constitutes service under 49 C.F.R. $ 190.5. Sincerely, ~ James Reynolds I Pipeline Compliance ~ e ~ i s t d Office of Pipeline Safety Enclosure 1 Cc: Sue Griffin, Assoc. General Counsel and Asst. Corporate secretary CERTIFIED MAIL -RETURN RECEIPT REQUESTED DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY AD INISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, DC 20590 ) In the Matter of Norteno Pipeline Company, a wholly-owned subsidiary of Oneok, Inc. ) CPF No. 4-2005-1003 Petitioner. ) DECISION ON PETITION FOR REcONSIDE~TION On February 16,2006, pursuant to 49 U.S.C. 8 601 12, the Associate fidministrator for Pipeline Safety (Associate Administrator) issued a Final Order in thiy case finding Petitioner had violated the pipeline safety regulations and assessing q civil penalty in the amount of $27,500. The Final Order warned Petitioner to take appropriate corrective action regarding some of Petitioner's practices for examining exposeid pipe and recording data. On March 6,2006, Petitioner filed a petition for reconsideration of the Final Order. In its petition, Petitioner sought reconsideration of one finding of violatioq in the Final Order, identified as "Item 1B" for the failure to maintain a record of each tebt, survey, or inspection required by 49 C.F.R. 8 192.481 in sufficient detail to dewonstrate the adequacy of atmospheric corrosion control measures. Petitioner argues: "Norteno has no exposed 'pipeline or portion of pbpeline', only meters/regulators which are annually inspected for atmospheric corr@sion." In response to Item lB, Petitioner submitted copies of its ''Meter/Regul~tor Station Safety Inspection Reports" for five meterlregulator stations for the time period from 1998 to 2005. Petitioner states there are only five meterlregulator st@tions in the pipeline system, and therefore, those records are the only records required to demonstrate the adequacy of its atmospheric corrosion control measpres. Section 192.48 1 requires each operator to inspect "each pipeline or fiortion of pipeline that is exposed to the atmosphere for evidence of atmosphetic corrosion." A pipeline is "all parts of those physical facilities through which gas moves in transportation, including pipe, valves, and other appurtenance attachpd to pipe, compressor units, metering stations, regulator stations, delivery stations, holders, and fabricated assemblies."' Any pipeline that is above ground is ''exposed to the atmosphere." All above-ground pipe must be inspected, including pi e that is intentionally above ground -not only pipe that has become exposed hrough natural causes. Therefore, Petitioner is required to inspect for atmospheric c rrosion on all f parts of those physical facilities through which gas moves in transporftation and are above ground. Section 192.491 requires each operator to maintain records of the inspections performed under section 192.48 1. Petitioner states it has only five meterlregulator stations and submitted records demonstrating inspection for atmosphtjric corrosion of those five regulatorslmeters. Petitioner indicates that those record$ are the only records required to show it performed the inspections required under bection 192.48 1. Petitioner's statement that it has no exposed "'pipeline or portion of pipeline', only meters/regulators" is incorrect. Petitioner's pipeline clearly has more than five locations where pipe is above ground. Petitioner's "System Protectiob Department Exposed Mains Patrol Checklist" identifies seventeen pages of locati4ns where pipe is exposed. Although some document indicates the pipe condition at pome locations, it does not indicate the condition at others. Petitioner also qubmitted photos of above ground pipe at locations other than the five regulatorlmeter sites. Section 192.48 1 requires Petitioner to inspect all of the locations with exposed pipe for atmospheric corrosion, not just the regulatorlmeter sites. Petitionqr produced records of atmospheric corrosion inspections of five regulators/meter$, which are exposed pipeline subject to section 192.481. Petitioner did not produpe complete records for atmospheric corrosion inspections of all pipeline located dbove ground. Of particular note, none of the documents produced by Petitioner recc/rd inspections of the Del Norte # 1 line. The records Petitioner submitted do not demonstrate that it maintained complete records of its atmospheric corrosion inspections at all locations wherel it has exposed pipeline. Relief Denied I have considered Petitioner's request for reconsideration and the additional records it submitted with its request. Petitioner has failed to demonstrate thatit maintained complete records of atmospheric corrosion inspections in sufficient dqtail to demonstrate the adequacy of atmospheric corrosion control measures. Therefore, all terms of the Final Order remain in effect, including assessment of b e civil penalty in the amount of $27,500. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. 5 89.21 (b)(3)) require this payment be made by wire transfer, I '49 C.F.R. 5 192.3. through the Federal Reserve Communications System (Fedwire), to the U.S. Treasury. Questions concerning wire transfers should be Financial Operations Division (AMZ- 120), Federal Aviation Monroney Aeronautical Center, P.O. Box 25082, Oklahoma (405) 954-471 9. Failure to pay the civil penalty will result in accrual of interest at the i,xrrent annual rate in accordance with 31 U.S.C. 5 3717,31 C.F.R. 5 901.9 and 49 C.F.R. 5 89.23. Pursuant to those same authorities, a late penalty charge of six perceqt (6%) per m u m will be charged if payment is not made within 1 10 days of seqice. Failure to pay the civil penalty may result in referral of the matter to the Attobey General for appropriate action in a United States District Court. This decision on reconsideration is the final administrative action in @is proceeding. I /1 JUN 2 1 20hd ta ey Gerard bate Issued A s ciate Administrator Y r Pipeline Safety