Source: http://williamahuston.blogspot.com/2013/04/phmsa-corrective-action-order-to.html
Timestamp: 2017-05-28 18:35:40
Document Index: 218722297

Matched Legal Cases: ['§ 190', '§ 60112', '§ 195', '§ 60117', '§ 195', '§ 190', '§ 60112', 'art 195', '§ 60101', '§ 60120']

BillHustonBlog: PHMSA Corrective Action Order to ExxonMobile 4/2/2013 re: Mayflower / Pegasus spill
Binghamton NY: Local Media Analysis, Fractivism, Spirituality and Metaphysics (Yoga, Vedanta, Buddhism, etc.) Sunday, April 14, 2013
PHMSA Corrective Action Order to ExxonMobile 4/2/2013 re: Mayflower / Pegasus spill
This is an OCR'd version of a scanned PDF document. Small errors may have be introduced by this inexact process. In doubt, please check the original document: http://phmsa.dot.gov/staticfiles/PHMSA/DownloadableFiles/Files/4%202013%205006H_Corrective%20Action%20Order_4%2002%2013.pdf
U.S. Department of Transportation 1200 New Jersey Avenue, SE
Pipeline and Hazardous Materials Safety Administration Washington, D.C. 20590
VIA CERTIFIED MAIL [71791000164304602744] AND FAX TO: [713-656-95791
Mr. Gary Pruessing President
ExxonMobil Pipeline Company 800 Bell St., Room 741-D Houston, TX 77002
Re: CPF No. 4-2013-5006H
Dear Mr. Pruessing:
Enclosed is a Corrective Action Order issued in the above-referenced
case. It requires ExxonMobil Pipeline Company to take certain
corrective actions with respect to the Pegasus Pipeline that failed on
March 29, 2013, in Mayflower, Arkansas. Service is being made by
certified mail and facsimile. Your receipt of this Corrective Action
Order constitutes service of that document under 49 C.F.R. § 190.5. The
terms and conditions of this Order are effective upon receipt.
cc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS Mr. RM Seeiey, Director, Southwest Region, OPS Mr. Thad Massengale, ExxonMobil Pipeline Company (via email to thad. massengale@exxonmobil. com) Mr. James Stevens, Senior Counsel, ExxonMobil Pipeline Company (via email to james. r. stevens@exxonmobil. com)
OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590
In the Matter of ExxonMobil Pipeline Company, Respondent. )
CPF No. 4-2013-5006H
This Corrective Action Order (Order) is being issued, under the
authority of 49 U.S.C. § 60112, to require ExxonMobil Pipeline Company
(EMPCO or Respondent), to take necessary corrective action to protect
the public, property, and the environment from potential hazards
associated with the recent failure on the crude oil transmission
pipeline known as the Pegasus Pipeline.1
On March 29, 2013, an accident reportable under 49 CFR § 195.52
occurred on the Pegasus Pipeline, resulting in the release of
approximately 3500 to 5000 barrels of crude oil (Failure). The Pegasus
Pipeline is a 20-inch diameter pipeline approximately 850 miles in
length that transports crude oil from Patoka, Illinois, to Nederland,
Texas. The cause of the Failure has not yet been determined. Pursuant
to 49 U.S.C. § 60117, the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), has initiated
an investigation of the accident. The preliminary findings of the
ongoing investigation are as follows.
EMPCO is an affiliate of ExxonMobil Pipeline Company, LP, and
transports over 2.7 million barrels of crude oil and refined products
every day through over 8000 miles of pipelines.2
EMPCO's Pegasus Pipeline is a 20-inch diameter pipeline,
approximately 850 miles in length, which transports crude oil from
Patoka, Illinois, to the Texas Gulf Coast.
The Pegasus Pipeline was originally constructed in 1947 and 1948
and consists of 20-inch diameter, 0.312" wall thickness, API 5LX-42
pipe, and contains both seamless pipe and low frequency electric
resistance welded pipe.
In 2006, EMPCO reversed the system flow on the Pegasus Pipeline.
The pipeline now flows south from Illinois to Texas. A change in the
direction of flow can affect the hydraulic and stress demands on the
At approximately 3:15pm CDT, on March 29, 2013, a failure
occurred on Respondent's Pegasus Pipeline in Faulkner County, Arkansas,
resulting in the release of crude oil into a residential neighborhood.
The Failure occurred near milepost 315 in a residential area in the
town of Mayflower, Arkansas (Failure Site). EMPCO reported the Failure
to the National Response Center on March 29, 2013, at approximately 4pm
CDT (NRC Report No. 1042466). EMPCO estimates that approximately
3500-5000 barrels of crude oil was released as a result of the Failure.
The maximum operating pressure (MOP) of the pipeline at the
Failure Site is 820 psig, as established by hydrostatic test in 2006.
At the time of the Failure, the actual operating pressure of the
pipeline was 708 psig.
EMPCO learned of the Failure due to a drop in pressure on the
pipeline. Upon learning of the pressure drop, EMPCO began to close the
valves upstream and downstream and isolated the Failure Site. The
valves were closed within 16 minutes of the pressure drop. The valves
isolating this section of the pipeline are 18 miles apart.
Various state and federal agencies responded to the scene,
including PHMSA, the U.S. Environmental Protection Agency, and local
The accident did not cause any known injuries, fatalities, or fires. Local police evacuated 21 homes.
The entire Pegasus Pipeline currently remains out of service.
The cause of the failure is still undetermined and the
investigation is ongoing. The pipe has not yet been excavated to allow
for visual examination of the pipe. EMPCO is preparing to install
stopple valves to allow for the removal of the damaged section of pipe.
The failed pipe section will be sent to a metallurgist for examination
The Failure Site is in a High Consequence Area that has been
identified as directly affecting a high population area under PHMSA's
integrity management regulations.3 The released product entered the
community's storm drainage system, which has been blocked off.
The Failure Site is approximately one mile from Lake Conway, a
6,700-acre man-made lake that is connected to several creeks and used
for recreational fishing. As of this time, it appears that none of the
crude oil has contaminated the lake.
EMPCO has initiated spill response to recover the spilled crude oil.
In July 2010, EMPCO performed an in-line inspection of the
portion of the Pegasus Pipeline surrounding the Failure Site using a
magnetic flux leakage and caliper tool. EMPCO has reported that no
significant anomalies in the area of Failure Site were found. In
February 2013, EMPCO performed a transverse flux in-line inspection of
the Pegasus Pipeline in the area of the Failure Site. EMPCO has not yet
received the results from this in-line inspection.
1 The Pegasus Pipeline is owned by Mobil Pipe Line Company and operated by EMPCO.
2 See http://www.exxonmobilpipeline.com/USA-English/EMPCo/ourcompany.aspx(last accessed April 1, 2013).
3 High population area and High Consequence Area are defined in § 195.450.
Determination of Necessity for Corrective Action Order and Right to Hearing
Section 60112 of Title 49, United States Code, provides for the
issuance of a Corrective Action Order, after reasonable notice and the
opportunity for a hearing, requiring corrective action, which may
include the suspended or restricted use of a pipeline facility,
physical inspection, testing, repair, replacement, or other action, as
appropriate. The basis for making the determination that a pipeline
facility is hazardous, requiring corrective action, is set forth both
in the above-referenced statute and 49 C.F.R. § 190.233, a copy of
Section 60112 and the regulations promulgated thereunder provide for
the issuance of a Corrective Action Order without prior opportunity for
notice and hearing upon a finding that failure to issue the Order
expeditiously will likely result in serious harm to life, property, or
the environment. In such cases, an opportunity for a hearing will be
provided as soon as practicable after the issuance of the Order.
After evaluating the foregoing preliminary findings of fact, I find
that continued operation of the Pegasus Pipeline without corrective
measures would be hazardous to life, property, and the environment.
Additionally, having considered the uncertainties as to the cause of
the Failure, the age of the pipeline, the unavailability of the results
of the February 2013 in-line inspection, the 2006 change in direction
of flow, the location of the Failure Site in a High Consequence Area,
and the proximity of the pipeline to navigable waterways,
environmentally sensitive areas and populated areas, I find that a
failure to issue this Order expeditiously to require immediate
corrective action would result in the likelihood of serious harm to
life, property, or the environment.
Accordingly, this Corrective Action Order mandating immediate
corrective action is issued without prior notice and opportunity for a
hearing. The terms and conditions of this Order are effective upon
Within 10 days of receipt of this Order, Respondent may request a
hearing, to be held as soon as practicable, by notifying the Associate
Administrator for Pipeline Safety in writing, with a copy to the
Director, Southwest Region, PHMSA (Director). If a hearing is
requested, it will be held telephonically or in-person in Houston,
Texas, or Washington, D.C.
After receiving and analyzing additional data in the course of this
investigation, PHMSA may identify other corrective measures that need
to be taken. In that event, Respondent will be notified of any
additional measures required and amendment of this Order will be
considered. To the extent consistent with safety, Respondent will be
afforded notice and an opportunity for a hearing prior to the
imposition of any additional corrective measures.
Pursuant to 49 U.S.C. § 60112, I hereby order EMPCO to immediately take
the following corrective actions on the Pegasus Pipeline (Affected
Pipeline):
Return to Service. Obtain written approval from the Director prior to resuming operation.
Restart Plan. Develop and submit a written re-start plan for
prior approval of the Director, Southwest Region. The restart plan must
provide for adequate patrolling of the Affected Pipeline during the
restart process and include measures to confirm the integrity of the
pipeline facilities that were damaged or are suspected of being damaged
as a result of the Failure. The restart plan must specify a daylight
restart and provide for advance communications with local emergency
response officials.
Metallurgical Testing. Within 45 days of receipt of this Order,
complete mechanical and metallurgical testing and failure analysis of
the failed pipe. Complete the testing and analysis as follows:
Document the chain-of-custody when handling and transporting the failed pipe section and other evidence from the failure site;
Within 10 days of receipt of this Order, develop and submit to
the Director the testing protocol, including selection of the testing
laboratory, for prior approval.
Prior to commencing the mechanical and metallurgical testing,
provide the Director with the scheduled date, time, and location of the
testing to allow a PHMSA representative to witness the testing; and
Ensure that the testing laboratory distributes all resulting
reports in their entirety (including all media), whether draft or
final, to the Director at the same time as they are made available to
Remedial Work Plan. Within 90 days after completing the
metallurgical testing and analysis, submit a remedial work plan ("Work
Plan") to the Director for approval. The Work Plan must provide for the
verification of the integrity of the Affected Pipeline and must address
all factors known or suspected in the Failure, including but not
The integration of the results of the failure analyses and
other actions required by this Order with all relevant operating data
including all historical repair information, results of past in-line
inspections, construction, operating, maintenance, testing,
metallurgical analysis or other third party consultation information,
and assessment data for the Affected Pipeline;
The performance of additional field testing, inspections, and
evaluations to determine whether and to what extent the conditions
associated with the Failure or any other integrity-threatening
conditions are present elsewhere on the Affected Pipeline. The results
of the inspections, field excavations, and evaluations must be made
available to PHMSA or its representative;
The performance of repairs or other corrective measures that
fully remediate the identified risk conditions associated with the
Failure and any other integrity-threatening condition everywhere along
the Affected Pipeline. Based on the known history and condition of the
pipeline, the plans for repairs must include continuing long-term
periodic testing and integrity verification measures to ensure the
ongoing safe operation of the pipeline considering the results of the
analyses, inspections, and corrective measures undertaken pursuant to
A proposed schedule for completion of Items A-C.
The Work Plan will be incorporated by reference into this Order.
Respondent must revise the Work Plan as necessary to incorporate the
results of actions undertaken pursuant to this Order and whenever
necessary to incorporate new information obtained during the failure
investigation and remedial activities. Submit any such plan revisions
to the Director for prior approval. The Director may approve plan
elements incrementally.
Implement the Work Plan as approved by the Director, including any revisions to the plan.
Pressure Restriction. After receiving approval from the Director
to restart the Affected Pipeline, the pressure is not to exceed 80% of
the actual operating pressure in effect immediately prior to the
Failure, or 656 psig. This pressure reduction requires that any
relevant remote or local alarm limits, software programming set-points
or control points, and mechanical over-pressure devices be adjusted
accordingly. This pressure restriction will remain in effect until
written approval to increase the pressure or return the pipeline to its
pre-failure operating pressure is obtained from the Director.
Removal of Pressure Restriction. The Director may allow the
removal or modification of the pressure restriction upon a written
request from Respondent demonstrating that restoring the Affected
Pipeline to its pre-failure operating pressure is justified based on a
reliable engineering analysis showing that the pressure increase is
safe considering all known defects, anomalies and operating parameters
Reporting. Submit quarterly reports to the Director that: (1)
include all available data and results of the testing and evaluations
required by this Order; and (2) describe the progress of the repairs or
other remedial actions being undertaken. The first quarterly report is
due on July 1, 2013. The Director may change the interval for the
submission of these reports.
Documentation of the Costs. It is requested but not required that
Respondent maintain documentation of the costs associated with
implementation of this Corrective Action Order. Include in each monthly
report submitted, the to-date total costs associated with:
preparation and revision of procedures, studies and analyses; physical changes to pipeline infrastructure, including repairs, replacements and other modifications; and environmental remediation, if applicable.
Approvals. With respect to each submission that under this Order
requires the approval of the Director, the Director may: (a) approve,
in whole or part, the submission; (b) approve the submission on
specified conditions; (c) modify the submission to cure any
deficiencies; (d) disapprove in whole or in part, the submission,
directing that Respondent modify the submission, or (e) any combination
of the above. In the event of approval, approval upon conditions, or
modification by the Director, Respondent shall proceed to take all
action required by the submission as approved or modified by the
Director. If the Director disapproves all or any portion of the
submission, Respondent must correct all deficiencies within the time
specified by the Director, and resubmit it for approval.
Extensions of Time. The Director may grant an extension of time
for compliance with any of the terms of this Order upon a written
request timely submitted demonstrating good cause for an extension.
The actions required by this Corrective Action Order are in addition to
and do not waive any requirements that apply to Respondent's pipeline
system under 49 C.F.R. Part 195, under any other order issued to
Respondent under authority of 49 U.S.C. § 60101 et seq., or under any
other provision of Federal or State law.
Respondent may appeal any decision of the Director to the Associate
Administrator for Pipeline Safety. Decisions of the Associate
Administrator shall be final.
Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that
any portion of your responsive material qualifies for confidential
treatment under 5 U.S.C. 552(b), along with the complete original
document you must provide a second copy of the document with the
portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for
confidential treatment under 5 U.S.C. 552(b).
Failure to comply with this Order may result in the assessment of civil
penalties and in referral to the Attorney General for appropriate
relief in United States District Court pursuant to 49 U.S.C. § 60120.
In your correspondence on this matter, please refer to CPF No.
4-2013-5006H and for each document you submit, please provide a copy in
electronic format whenever possible.
The terms and conditions of this Corrective Action Order are effective upon receipt.
(signed) 4/02/13
Jeffrey D. Wiese Date Issued