Document Rjy2OmN3rN4d2X7jv10Mx4bMz

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Region 6 1445 Ross Avenue, Suite 1200 Dallas, Texas 75202 ~ 2733 i 5 MAY 2016 CERTIFIED MAIL~ RETURN RECEIPT REQUESTED: 7014 0150 0000 2453 4112 Abby Lazar EHS Manager SemGas. LP 6120 South Yale Avenue, Suite 700 Tulsa, Oklahoma 74136 Re: SemGas, LP, DocketNo. CAA-06-2016-3385 Dear Ms. Lazar: Enclos~d is a fully executed Consent Agreement and I~inaJ Order (CAFO) in the matter referenced above tbr SemGas, LP. Asprovided in the CAFO, SemGas, LP will have thirty (30) days from the effective date of the CAFO to pay the civil penalty of$37,500.00 If you have any questions regarding this CAFO, please contact Jeffrey Clay, Assistant Regional Counsel, at (214) 665-7297. Sincerely, Enclosure UNITED STATES ... .. ENVIRONMENTAL PROTECTION AGENCY:;, REGION6 DALLAS, TEXAS In the Matter of: SemGas, LP Sher1nan, Texas Respondent EPA DocketNo. CAA-06~2016-3385 CONSENT AGREEMENT AND FINAL ORDER The Director of the Compliance Assurance and Enforcement Division of the United States Environmental Protection Agency ("EPA"), Region 6("Complainant")and SemGas, LP eRespondent'}in the above-referenced proceeding, hereby agree to resolve this matter through the issuance of this Consent Agreement and Final Order (HCAFO"). I, PRELIMINARY STATEMENT 1. This proceeding for the assessment of civil penalties is brought by EPA pursuant to sections 113(a)(3) and 113(d)(l)(B) of the Clean Air Act, as amended (''Act" or "CAA''), 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), and is simultaneously commenced and concluded through the issuance of this CAFO pursuant to 40 C:F.R. 22.l3(b)(2) and (3), and22.34. 2. For purposes of this proceeding, Respondent admits the jt1risdictionai allegations contained herein; however, Respondent neither admits nor denies .the specific factual allegations contained in this CAPO. 3. Respondent explicitly waives any right to contest the allegations and its right to appeal the proposed Final Order set forth herein, and waives all defenses, which have been raised or could have been raised to the daims set forth in this CAFO. Docket No. CAA-06-2016-3385 4. Compliance with all the terms and conditions of this CAFO shall only resolve Respondent's liability for federal civil monetary penalties for those violations and facts alleged in this CAPO. 5. Respondent consents to the issuance of this CAFO andto the assessment and payment of the stated civil penalty in the amotmtand by the method set forth in this CAFO. H. ALLEGATIONS 6. Respondent is a limited partnership authorized to do business in the State of Texas. 7. Respondent owns a lean-oil natural gas processing plant named Sherman Gas Plant located in Sherman, Texas at geographic coordinates 33.6835o:N, -96.6322"\V ("Facility"). 8. The Respondent operates natural gas processing at the Facility, which includes a cryogenic plant, a vapor recovery unit, rnetal tanks and various pipes and hoses used to separate natural gas into gaseous and liquid componentsfor sale and storage. 9. Natural gas is a highly flammable gaseous hydrocarbon mixture containing methane, ethane, propane and butane, which are regulated substances listed in Table 3 of 40 CFR 68.130 that may ignite, flashback or explode when exposedto a source of ignition. Natural gas is itself: regardless of its component parts, an extremely hazardous substance due to its flammability. 10. On Friday, May 29,2015, a new cryogenic plant was being tied-in to the existing Facility infrastructure. 11. The process required the reduction ofline pressure in a connecting 1m.v pressure pipe. Page 2 ofl2 Docket No. CAA-06-2016-3385 12. The reduction in pressure was accomplished by the operator manually forcing the V4 Fischer control valve closed to redirect gas. 13. During the installation there \Vas a shift change and the new operator was not aware that the valve had been manually closed. 14. The second operator introduced gas into the now closed low pressure line causing the line to over pressure and rupture. The escaping natural gas ignited and a fire ensued. 15. The operator failed to implement proper lockoutftagout procedures for the control valve resulting in the new operator not being aware that the valve was closed. 16. As a result of the fire, piping, hoses, metal tanks and the vapor recovery unit were damaged; and residents were evacuated within a one-mile radius of the Facility. 17. The hazards associated with failure to adequately use a lockoutltagout process in operations around piping that contains flammable or explosive substances are well established. 18. Pursuant to section l12(r)(l) of the CAA, 42 U.S.C. 7412(r)(1), an: owner/operator of a stationary source producing, processing, handling or storing substances listed pursuant to section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3)j or any other extremely hazardous substance, has a general duty to: (1) identify hazards which may result from accidental releases of such substances using appropriate hazard assessment techniques; (2) design and maintain a safe facility, taking such steps as are necessary to prevent releases; and (3) minimize the consequences of accidental releases that do occur. 19. Respondent is a "person'' as that term is defined by section 302(e) of the CAA, 42 U,S.C. 7602(e). Page 3 of12 DocketNo. CAA-06-2016-3385 20. The Facility is a "stationary source" as thattenn is defined by sectiort l12(r)(2)(C) of the CAA, 42 U.S.C. 7412{r)(2)(C). 21. Respondent is the "OVv'D.er or operator'~ as those terms are defined by section 112(a)(9) ofthe CAA, 42 U.S.C. 7412(a)(9), of a stationary source. 22. Atthe Facility, Respondent produces> processes, handles. or stores substances listed in, or pursuant to, CAA 112(r)(3) or other extremely hazardous substances identified as such due to toxicity, reactivity~ flammability, volatility., .or corrosivity. 23. The release of natural gas at the Facility on May 29,2015, constituted an "accidental release'' as that term is defined by section l12(r){2)(A) of the CAA, 42 U.S.C. 7412(r)(2)(A). ~4. R~spondent failed to design and maintain asafefacilityand did nottake such necessary steps to prevent an accidental release by not ensuring safety at the Facility by implementing proper Iockoutltagout procedures on May29, 2015. 25. Respondent's failure oonstitutes a violation of the general duty clause in section 112(r)(l) of the CAA, 42U.S.C. 7412(r)(l). 26. Respondept is therefore subject to the assessment of penalties pursuant to sections 113(a)(3) and ll3(d)(l)(B) ofthe CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(l )(B), for at least one day of violation ofthe general duty clause of section l.12.(r)(l) ofthe CAA, 42 U.S.C. 7412(r)(l). III. TERMS OF SETTLEMENT A. CIVIL PENALTY 27. Pursuant to the authority granted in sections Il3(a)(3) and 113(d)(l)(B) of the CAA, 42 U.S.C. 7413(a)(3}and 7413(d)(l)(B),andtakinginto consideration Page4 ofl2 Docket No. CAA-06~20 16-3385 the size of the Respondent's business, the economic impact of the penalty on the Respondenfs business, the Respondent's f11ll compliance history and good faith efforts to comply, the duration ofthc violation, payment by Respondent of penalties previously assessed for the same violation (if any), the economic benefit of noncompliance, and the seriousness of the violation, as welt as other factors which justice may require, EPA and Respondent agree that an appropriate penalty to settle this matter is$ 37,500. 28. Respondent shall pay the assessed penalty within thirty (30) days ofthe effective date of this CAFO. Respondent shall pay the assessed civil penalty by certified check, cashier's check, or wire transfer, made payable to "Treasurer, United States of America, EPA- Region 6." Payment shall be remitted in one of three ways: regular U.S. Postal mail (including certified mail), or U.S. Postal Service express mail - the check should be remitted to: U.S. Environmental Protection Agency Fines and Penalties Cincinnati Finance Center P.O. Box 979077 St. Louis, MO 63197~9000 For overnight mail (non-U.S. Postal Service), the check should be remitted to: U.S. Bank Government Lockbox 979077 U.S. EPA, Fines and Penalties 1005 Convention Plaza SL~MO-C2-GL St. Louis, MO 63101 Phone No. (314) 418-1028 For wire transfer, the payment should be remitted to: Federal Reserve Bank ofNew York ABA: 021030004 Account No. 68010727 SWIFT address= FRNYUS33 33 Liberty Street New York, NY 10045 Page 5 of12 Docket No. CAA-06-2016-3385 Field Tag 4200 of the Fedwire message should read ''D 68010727 Environmental Protection Agency'' PLEASE NOTE: Docket number CAA~06-2016-3385 shall be clearly typed on the checli. to ensure proper credit, If payment is made by check, the check shall also be accompanied by atransmittal letter and shall reference the Respondent's name and address, the case name, and the docket number of this CAFO. If payment is made by wire service, the wire transfer instructions shall reference the Respondent's name and address, the case name, and the docket number of this CAFO. The Respondent shall also send a simultaneous notice of such payment, including a copy ofthe check and transmittal letter or wire transfer instructions to the following: Samuel Tates Chief, Surveillance Section(6EN-AS) Compliance Assurance and Enforcement Division U.S. EPA, Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 Lorena Vaughn Regional Hearing Clerk (6RC-D) U.S. EPA, Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 Respondent's adherence to these instructions will ensure that proper credit is given when penalties are received in the Region. 29. Respondent agrees not to claim or attempt to claim a federal income tax deduction or credit covering all or any part of the civil penalty paid to the United States Treasurer. 30. Pursuant to 31 U.S.C. 3717 and 40 C.F.R. 13.11, unless otherwise prohibited by law, EPA will assess interest and late payment penalties on outstanding debts owed to the United States and a charge to cover the costs ofprocessing and Page6 ofl2 Docket No. CAA-06-2016-3385 handling a delinquent claim. Interest on the civil penalty assessed in this CAFO will begin to accrue thirty (30) days after the effective date of the CAPO and will be recovered by EPA on any amount of the civil penalty,thatis not paid by the due date. Interest will be assessed at the rate of the United States Treastiry tax and loan rate in accordance with 40 C.F.R. 13.1l(a). Moreover, thecostsoftheAgency's administrative handling ofoverdue debts will be charged and assessed monthly throughoutthe.period the debtis overdue. See 40 C.F.R. 13. ll(b). 3 L EPA will al::;o assess a $15.00 administrative handling charge for administrative costs on unpaid penalties for the flrstthirty (30) day period after the payment is due and an additional $15.00 for each subsequent thirty (30) day period that the penalty remains unpaid. In addition, a penalty charge of up to six percent per year will he assessed monthly on.any portion of the debt which remains delinquent more than ninety (90).days. See40 C.P.R. l3.11(cJ. Should a penalty charge on the debt be required, it shallaccrue from the first day paymentis delinquent. See 31 C.P.R. 901.9(d). Other penalties for failure to make a payment may also apply. B. PARTIES BOUND 32. The provisions ofthis CAFO shall apply to and be binding upon the parties to this action, their officers. directors, agents, employees, successors, and assigns. The undersigned representative of each party to this CAFO certifies thathe or she is fully authorized by the party whom he or she represents to enter into the terms. and conditions of this CAFO and to execute and to legally bind that party to it. C. RETENTION OF ENFORCEMENT RIGHTS 33. EPAdoes not waive any rights or re!lledies available to EPA for any other violations by the Respondent ofFederal or State laws, regulati<ms, or permitting Page 7 ofl2 Docket No. CAA-06-2016-3385 conditions. 34. Nothing in this CAPO shall. relieve the Respondent ofthe duty to comply with all applicable provisions of section 112(r) of the CAA, 42 U.S.C. 7412(r), and 40 C.P.R. Part 68. 35. Nothing in this CAPO shall limit the power and authority of EPA or the United States to take, direct, or order all actions to protect public health, welfare, or the environment, or prevent, abate, or minimize an actual or threatened release of hazardous substances, pollutants, or contaminants at or. from the Facility. Furthermore, nothing in this CAPO shall be construed to prevent or limit EPA's civil and criminal authorities, or c that ofother Federal, State, or local agencies or departments to obtain penalties or injunctive relief under other Federal, State, or local laws or regulations. 36. In any subsequent administrative or judicial proceeding initiated by the Complainant or the United States for injunctive relief, civil penalties, or other appropriate relief relating to the Facility, Respondent shaH not assert, and may not maintain, any defense or claim based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, claim~splitting, or other defenses based upon any contention that the claims raised by the Complainant or the United States in the subsequent proceeding were or should have been brought in the instant case, except with respect to the claims that have been specifically resolved pursuant to this CAFO. Page 8 of12 Docket No. CAA-06-2016-3385 D. COSTS 37. Each party shall bear its own costs and attorneys fees. Furthermore, Respondent specifically waives its right to seek reimbursement of its costs and attorney's fees under 5 U.S.C. 504 and40 C.F.R. Part 17. E. EFFECTIVE DATE 38. This CAFO becomes effective upon filing with the Regional Hearing Clerk. Page9 of12 DocketNo. CAA-06-2016~3385 THE UNDERSIGNED PARTIES CONSENT TO THE ENTRY OF THIS CONSENT AGREEMENT AND FINAL ORDER: FOR THE RESPONDENT: 5/J..3/J[f { \ ~ ~ f, JN ~~ SemOas, LP by SemOperating, GP, LLC its general partner FOR THE COMPLAINANT: ~-7 Date ~~ Director Compliance Assurance and Enforcement Division Page 10. of 12 fiNALOBJ>ER Pursuant to section 113(d)oftheCM 42 U.S.C. 741l(d),andthe Consolidated Rnles ofPractice Oovert1ing the Administrative Assessment ofCivil Penalties, 40 C.F.R. Part 22, the foregoing Consent Agreement is hereby ratified. This Final Ordersl)all not in any caseaffect the. right ofEPA or the United States to pursue appropriate injunctive or other equitable relief or criminal sanctions for ~Y violations oflaw. This Fmal Order shall resolve onl~ those causes ofaction alleged .in this CAFO. Nothingin tbisFinal Order Shall be construed to waive, extinguisb, or otherwise affect Respondent's (or its ofti~ers, agents, servants, employ~ successors, or assign$) obligatl()n to oomply witb~lappliaible fed~ state, and Joeal statutes and regulations, 'including tb~ tegu.IJiions that were the subjeet ofthis action. The ~pendent is tdered to cdmply With the terms ofsettlementas set forth in the, A //2 Consent Agreement. Pursuantto 40 c:F.R. 22.31{b), this Final Order shall becOme elli:clive upon tiling with tho Regional Hearing ~ Dote: ~~"');{~;':j' Thomas Ruold Regional Judicial Officer PageU ofll Docket No. CAA~06-2016-3385 CERTIFICATE OF SERVICE I hereby certify that the original and a copy of the foregoing Consent Agreement and Final Order (CAFO) was hand-delivered to the Regional Hearing Clerk, U.S. EPARegion 6, 1445 Ross Avenue, Suite 1200, Dallas, Texas 75202-2733, and that a true and correct copy of the CAPO was placed in the United States Mail, to the following by the method indicated: CERTIFIED MAIL- RETURN RECEIPT REQUESTED: # 7{1 Jzf. 0i 50 0000 .2 4 Abby Lazar EHS Manager SemGas, LP 6120 South Yale Avenue, Suite 700 Tulsa, Oklahoma 74136 Date: . .!J- 2 &, - I (c, U.S. EPA, Region 6 ~....../ ' Dallas, Texas Page 12 of12