400 Seventh Street, S.W. U.S. Department Washington, D.C. 20590 of Transportation Pipeline and Hazardous M~tedaIs Safety Administration JUL 1 0 2006 Mr. Jerry Wenzel Vice President Stone Energy Inc. 625 East Kaliste Saloom Road Lafayette, LA 70508 Re: CPF No. 4-2005-5039 Dear Mr. Wenzel: Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes findings of violation and assesses a civil penalty. I acknowledge receipt of and accept your wire transfer for $50,000 as payment in full of the civil penalty assessed in the Final Order. This case is now closed. Your receipt of the Final Order constitutes service of that document under 49 C.F.R. $ 190.5. Sincerely, James Reynolds Pipeline Compliance Registry Office of Pipeline Safety Enclosure cc: R.M. Seeley Director, Southwest Region, PHP-400 CERTIFIED MAIL -RETURN RECEIPT REOUESTED DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, DC 20590 - - In the Matter of ) 1 1 Stone Energy Inc., 1 CPF NO. 4-2005-5039 1 Respondent 1 FINAL ORDER On October 13,2005, in accordance with 49 C.F.R. $ 190.207, the Director, Southwest Region, Pipeline and Hazardous Materials Safety Administration (PHMSA) Officre of Pipeline Safety, issued to Respondent a Notice of Probable Violation and Proposed Civil Penalty (Notice). The Notice proposed finding that Respondent had committed violations of 49C.F.R. Part 195 and proposed assessing a civil penalty of $50,000 for the alleged violations. Respondent did not contest the allegations. Respondent submitted a wire transfer in the amount of the proposed civil penalty ($50,000), waiving further right to respond and authorizing the entry of this Final Order. Pursuant to 49 C.F.R. $ 190.213 and 49 U.S.C. $ 60122, I find that Respondent violated the following sections of 49 C.F.R. Part 195, as more fully described in the Notice: 49 C.F.R. $ 195.452(b)(l) -- failing to develop a written integrity management program by the February 18,2003 deadline; and 49 C.F.R $ 195.452(b)(2) -- failing to identify segments of pipelines that could affect HCAs by the November 18,2002 deadline. These findings of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. Having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $50,000, already paid by Respondent. The terms and conditions of this Final Order are effective on receipt. Date Issued iate Administrator for Pipeline Safety