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Pipeline Safety Division Investigation Report Investigation regarding: Cypher Logic UP PAC Database Record ID: 996 Investigator: William Boyd Telephone: 317-232-2718 Report Date: 03/03/2012 Damage
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Description: The investigation into this incident uncovered the following: The pipeline contractor, Cypher Logic Inc. (CY), located at 4523 W. North Main Street, South Holland, IL 60473, was the pipeline's manufacturer. CY was the pipeline's operator. No evidence of criminal activity was found at the site or in other areas of the pipeline. The property owner, NIP SCO, was the operator of the pipeline at the time of the incident, and the pipeline has previously been inspected. A preliminary examination of the pipeline by NIP SCO's Facilities and Property Manager, David Debates, determined there was no hazard for the public, and a final inspection was conducted. No safety violations were found on the pipeline or in the vicinity of the pipeline. CY installed the pipeline in April 2008. The pipeline is registered as Class B. In addition to NIP SCO, all other regulatory agencies that have been contacted affirm CY operated the pipeline and was an approved pipeline owner at the time of the incident. The pipeline was inspected prior to operating the pipeline, and during the inspection CY personnel reported that there were no conditions posing a safety concern. On 03/02/2012, CY received a notification of the pipeline safety inspection that was conducted by the Illinois Department of Transportation (DOT). CY is authorized to make changes to the pipeline's configuration, and a further inspection was conducted. The investigation into this incident uncovered this safety violation, the failure to complete the safety inspection prior to operating the pipeline. A copy of this violation found included, but is not limited to, failure to have a pipeline management plan in place, failure to make sure any work on the pipeline was of an acceptable quality, failure to conduct a proper pipeline assessment to determine if there was a potential hazard, failures to do quality inspections of the pipeline's pipeline components, and failures to complete any of the Pipeline Safety Program inspections in a timely way. There was no evidence to suggest that CY's failure to comply with the standards and procedures required under the Pipeline Act resulted in a significant safety risk to the public. CY was informed that the Illinois Department of Transportation (DOT) would be conducting an ongoing investigation into the pipeline safety inspection. Upon the completion of the investigation, CY notified NIP SCO. As a result of it own inspection done on 03/03/2012, NIP SCO determined CY was in compliance at the time of the event. Cypher Logic Inc.

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