# BUCKEYE PARTNERS, LP — Notice of Probable Violation **Citation:** CPF 120165007 **Type / status:** enforcement / historical **Agency:** Pipeline and Hazardous Materials Safety Administration **Effective:** Not stated **Published:** 2016-08-25 CLOSED notice of probable violation citing 195.214(a). ## Document text Notice of Probable Violation involving BUCKEYE PARTNERS, LP. PHMSA's enforcement data identifies the cited regulation as 195.214(a). The case was opened on 2016-08-25 and is reported as closed as of 2024-12-06. Proposed civil penalty: $38,200. Assessed civil penalty: $38,200. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 120165007_Amended NOPV PCP PCO_07312017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Amended%20NOPV%20PCP%20PCO_07312017.pdf 120165007_Amended NOPV PCP PCO_07312017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Amended%20NOPV%20PCP%20PCO_07312017_text.pdf 120165007_Closure Letter_12062024_(15-149858S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Closure%20Letter_12062024_(15-149858S).pdf 120165007_Closure Letter_12062024_(15-149858S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Closure%20Letter_12062024_(15-149858S)_text.pdf 120165007_Consent Agreement and Order_02092023_(15-149858S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Consent%20Agreement%20and%20Order_02092023_(15-149858S).pdf 120165007_Consent Agreement and Order_02092023_(15-149858S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Consent%20Agreement%20and%20Order_02092023_(15-149858S)_text.pdf 120165007_Final Order_10102019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Final%20Order_10102019.pdf 120165007_Final Order_10102019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Final%20Order_10102019_text.pdf 120165007_NOPV PCP PCO_08252016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_NOPV%20PCP%20PCO_08252016.pdf 120165007_NOPV PCP PCO_08252016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_NOPV%20PCP%20PCO_08252016_text.pdf 120165007_Operator Post-Hearing Submission_07202018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Operator%20Post-Hearing%20Submission_07202018.pdf 120165007_Operator Pre-Hearing Brief_01152018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Operator%20Pre-Hearing%20Brief_01152018.pdf 120165007_Operator Response Notice_09142016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Operator%20Response%20Notice_09142016.pdf 120165007_Operator Response to Amended Notice Letter and Request for Hearing_08252017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Operator%20Response%20to%20Amended%20Notice%20Letter%20and%20Request%20for%20Hearing_08252017.pdf 120165007_Operator Response to Amended Notice_08252017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_Operator%20Response%20to%20Amended%20Notice_08252017.pdf 120165007_PHC Hearing Rescheduled_04042018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_PHC%20Hearing%20Rescheduled_04042018_text.pdf 120165007_PHC Hearing Scheduled_03072018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_PHC%20Hearing%20Scheduled_03072018.pdf 120165007_PHC Hearing Scheduled_03072018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_PHC%20Hearing%20Scheduled_03072018_text.pdf 120165007_PHC_Hearing_Rescheduled_04042018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165007/120165007_PHC_Hearing_Rescheduled_04042018.pdf 120165007_Consent Agreement and Order_02092023_(15-149858S)_text.pdf February 9, 2023 VIA ELECTRONIC MAIL TO: trusso@buckeye.com Mr. Todd Russo President and Chief Executive Officer Buckeye Partners, LP 4200 Westheimer Road, # 975 Houston, Texas 77027 CPF No. 1-2016-5007 Dear Mr. Russo: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Buckeye Partners, LP which was executed on February 7, 2023. Service of the Consent Order and Consent Agreement by e-mail is deemed effective upon the date of mailing and acknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Order and Consent Agreement cc: Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, Office of Pipeline Safety, PHMSA Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA Mr. Evan Hofmann, Vice President, General Counsel and Secretary, Buckeye Partners, LP, ehofmann@buckeye.com Mr. William Serra, Vice President, Operations, Eastern Region, Buckeye Partners, LP, wserra@buckeye.com Ms. Claudia Pankowski, Director of Regulatory Compliance, Buckeye Partners, LP, cpankowski@buckeye.com Ms. Catherine Little, Esq., Bracewell LLP, Outside Counsel for Buckeye Partners, LP, catherine.little@bracewell.com CONFIRMATION OF RECEIPT REQUESTED U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Buckeye Partners, LP, ) CPF No. 1-2016-5007 ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated July 31, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety, issued an Amended Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Amended Notice) to Buckeye Partners, LP (Buckeye or Respondent). Buckeye responded to the Amended Notice by letter dated August 25, 2017, and requested a hearing. A hearing was held on June 13, 2018, in West Trenton, New Jersey before a PHMSA Presiding Official. On October 10, 2019, PHMSA issued a final order directing Buckeye to take certain actions to ensure compliance with the pipeline safety regulations. Buckeye met with PHMSA to discuss alternative solutions to the Compliance Order regarding field weld destructive testing. As a result of discussions between PHMSA and Respondent, and in consideration of prior inspection and test records, the API standard applicable to field welds, and the environmental implications of the Compliance Order, the Parties agree that settlement of this matter will be beneficial and will avoid further administrative proceedings or litigation. Accordingly, the enclosed Consent Agreement is hereby approved and incorporated by reference into this Consent Order. Buckeye is hereby ordered to comply with the terms of the Consent Agreement, effective immediately. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in the assessment of civil penalties as set forth in 49 C.F.R. § 190.223. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. February 9, 2023 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Buckeye Partners, LP, ) CPF No. 1-2016-5007 ) ) ) Respondent. ) ____________________________________) From October 2, 2015, through November 13, 2015, pursuant to 49 U.S.C. § 60117, a representative of the New York State Department of Public Service, as agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of a pipeline construction project of Buckeye Partners, LP (Buckeye or Respondent), at the Genesee River in Livingston County, New York. As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated August 25, 2016, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Initial Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Buckeye had violated 49 C.F.R. § 195.214(a)1 and proposed assessing a civil penalty of $38,200 for the alleged violation. The Initial Notice also proposed ordering Respondent to take certain measures to correct the alleged violation. Buckeye responded to the Initial Notice by letter dated September 14, 2016, as supplemented by letter dated April 13, 2017. Buckeye did not contest the allegation of violation and provided copies of its revised welding procedures. Following an exchange of correspondence with OPS, by letter dated June 1, 2017, Buckeye disagreed with the manner in which OPS expected it to meet the terms of the proposed Compliance Order. On July 31, 2017, the Director issued an Amended Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Amended Notice) that superseded the Initial Notice, and which amended the testing requirement for field welds2 in the compliance terms of the Initial CONSENT AGREEMENT 1 Section 195.214(a) states “Welding must be performed by a qualified welder or welding operator in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Std 1104 (incorporated by reference, see § 195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see § 195.3). The quality of the test welds used to qualify welding procedures must be determined by destructive testing.” 2 A field weld is a production weld that the meets the acceptance standards for non-destructive testing on Section 9 of API 1104 (20th edition, October 2005). Notice. In accordance with 49 C.F.R. § 190.207, the Amended Notice proposed finding that Buckeye had violated 49 C.F.R. § 195.214(a) and proposed assessing a civil penalty of $38,200 for the alleged violation. The Amended Notice also proposed ordering Respondent to take certain measures to correct the alleged violation. Buckeye responded to the Amended Notice by letter dated August 25, 2017, and requested a hearing on the new terms of the Amended Notice’s Proposed Compliance Order. Notwithstanding the hearing request for the Amended Notice, Buckeye paid the proposed civil penalty of $38,200 on January 12, 2018. A hearing was subsequently held on June 13, 2018, in West Trenton, New Jersey before a PHMSA Presiding Official. During the hearing, Buckeye did not contest the allegation, but explained the difficulty of obtaining numerous field welds for qualification testing, including the considerable expense and environmental disturbance that would require. Buckeye argued that a more limited field testing of the welds would be considered an acceptable industry practice under the circumstances. During the hearing, the Director and Buckeye came to an agreement on the field testing and Buckeye agreed to no longer contest the issuance of a final order with compliance terms as modified pursuant to that agreement. On October 10, 2019, PHMSA issued a final order (“Final Order”) directing Buckeye to take the following actions to ensure compliance with the pipeline safety regulations: 1) Cut out all thirty-six (36) existing in-service welds, and weld new girth welds in accordance with §195.214(a); or 2) Buckeye must cut out one (1) field weld created using its qualified procedure, Weld Procedure Specification P15A (qualified on November 13, 2015), from the existing thirty-six (36) in-service girth welds and perform all of the destructive testing requirements on the one (1) weld (including tensile, nick break, and bend tests) as set forth in API 1104 for welding procedure qualification purposes for 10-inch diameter pipe. To the extent not all of the destructive testing can be conducted on the one (1) weld, Buckeye must cut out one (1) additional weld to perform the necessary testing. If the field weld(s) pass the qualification testing, then the existing girth welds may remain in service. Otherwise, all remaining in-service girth welds must be cut out and replaced with new girth welds in accordance with §195.214(a). Prior to the removal of the existing weld(s) for testing, Buckeye must provide ten (10) days advance notice to the Eastern Region to enable observation of testing. Testing is to be accomplished within 180 days of receipt of the Final Order. On January 22, 2020, Buckeye informed the Director of its intent to comply with the Compliance Order and cut out one (1) field weld using its qualified procedure on February 12, 2020. Buckeye cut out and removed an in-service field weld from the Genesee River crossing and performed the destructive testing in accordance with API 1104 for welding procedure qualification (Section 5). The field weld passed API 1104 welding procedure acceptance criteria intended for a procedure qualification weld, including tensile testing, bend testing, and the first nick break test. The second nick break test did not meet the acceptability for welding procedure qualification under API 1104 Section 5, due to a slag inclusion. While the slag inclusion was unacceptable according to welding procedure qualification in API 1104 Section 5, it was within acceptable limits for a field weld which is evaluated using API Standard 1104, Section 9. As a result of discussions between PHMSA and Respondent (collectively, the Parties), and in consideration of the following: 1) 2015 radiographic inspection that occurred during construction; 2) the hydrostatic pressure test that was performed before this segment was placed into service in 2015; 3) tensile, root, and face destructive testing that confirmed the strength and ductility of the welds; 4) the length of the slag inclusion in the second nick-break specimen was approximately twelve (12) percent of the allowable length for a slag inclusion in API 1104, Section 9 for field welds; and 5) the environmental implications of having to remove the remaining thirty-five (35) field welds, the Parties agree that settlement of this matter will be beneficial and will avoid further administrative proceedings or litigation. Therefore, upon consent and agreement, the Parties hereby agree as follows: I. General Provisions 1. Respondent acknowledges that as the operator of the Genesee River crossing in Livingston County, New York (i.e., the Affected Segment as defined below), Respondent is subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA's action in this proceeding and that the Final Order states claims upon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders issued thereunder. 2. After Respondent returns this signed Agreement to PHMSA, the Agency’s representative will present it to the Associate Administrator for Pipeline Safety, recommending that the Associate Administrator adopt the terms of this Agreement by issuing an administrative order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement. 3. Respondent consents to the issuance of the Consent Order, and hereby waives any further procedural requirements with respect to its issuance. Respondent waives all rights to contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to administrative or judicial hearings or appeals, except as set forth herein. 4. This Agreement shall apply to and be binding upon PHMSA, and upon Buckeye, its officers, directors, and employees, and its successors, assigns, or other entities or persons otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans and schedules to all of Buckeye’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement. 5. This Agreement constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or understandings relating to settlement other than those expressly contained in this Agreement, except that the terms of this Agreement may be construed by reference to the Final Order. 6. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement actions against Buckeye pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or State law. 7. For all transfers of ownership or operating responsibility of Respondent’s pipeline system referenced herein, Respondent will provide a copy of this Agreement to the prospective transferee at least thirty (30) days prior to such transfer. Respondent will provide written notice of the transfer to the Director no later than sixty (60) days after the transfer occurs. 8. This Agreement does not waive or modify any Federal, State, or local laws or regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Respondent remains responsible for achieving and maintaining compliance with all applicable Federal, State, and local laws, regulations and permits. 9. This Agreement does not create rights in, or grant any cause of action to, any third party not party to this Agreement. The U.S. Department of Transportation is not liable for any injuries or damages to persons or property arising from acts or omissions of Respondent or its officers, employees, or agents carrying out the work required by this Agreement. Respondent agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and representatives from any and all causes of action arising from any acts or omissions of Respondent or its contractors in carrying out any work required by this Agreement. 10. Upon issuance of the Consent Order, Respondent agrees to perform the Corrective Measures set forth below. II. Corrective Measures Definitions: Affected Segment – The “Affected Segment” means the section of pipe replaced in 2015 (Line 803 Station Number 3415+43 to 3427+12) also known as Buckeye’s Genesee River crossing in Livingston County, New York. Director – The Director, Eastern Region, PHMSA, OPS, 840 Bear Tavern Rd., Ste. 300, West. Trenton, New Jersey 08628. Day – Calendar day. 11. In-line Inspection (“ILI”). For the remaining thirty-five (35) in-service production welds within the Affected Segment, Buckeye must conduct integrity assessments for all threats identified including the following: a. Respondent will assess the line segment from Auburn Station to Rochester Terminal (“Inspection Segment”), including the Affected Segment for the threats of third-party damage, corrosion, and denting using Deformation and Metal Loss ILI tools, using high-resolution (HR) magnetic flux leakage (HR- MFL) and HR deformation tools with deformation-extended sensor arms not limited by pig cups, in accordance with its Integrity Management Manual (IMM) requirements. The last assessment was in March 2020 and there were no deformation or metal loss conditions identified within the Affected Segment. The next assessment deadline for the segment including the Affected Segment is March 25, 2023. Respondent will provide the Director with the final ILI results for the Affected Segment within thirty (30) days of receiving them from the vendor. b. For newly identified threats, assessments must be completed within two (2) years of identification. c. Within twelve (12) months of the Effective Date, Respondent will assess the Inspection Segment, including the Affected Segment, for the threat of girth weld cracking using a Circumferential Ultrasonic Crack Detection ILI tool. A response plan will be developed to address any girth welds that exhibit internal diameter (ID) or outer diameter (OD) surface breaking cracking or crack-like indications in the girth weld or heat affected zone (HAZ). Respondent will provide the Director with the final ILI results for the Affected Segment within thirty (30) days of receiving them from the vendor. 12. Waterway Crossing Inspection. Respondent will continue to monitor the navigable Genesee River crossing of the Affected Segment as required by its 195 Operations and Maintenance (O&M) Manual Section F-26 (Navigable Waterways) and its IMM Appendix M-1 (Waterway Crossing Program). The last waterway dive inspection was performed in 2018 and the next inspection deadline is April 17, 2023. Respondent will provide the Director with the final results for the Affected Segment within thirty (30) days of receiving them from the vendor. 13. Opportunistic Girth Weld Inspections. Respondent will revise its IMM Appendix E-8 (Pipeline Supplemental Field Inspection) to include supplemental (i.e., opportunistic) girth weld inspections for the Affected Segment. As such, during planned excavations the next upstream and downstream girth welds will be exposed for evaluation, as practical given site conditions. Buckeye will provide the amended procedures to the Director within thirty (30) days of the Effective Date. 14. Valves. For the valves located at West River Road (3458+48), downstream of the Genesee River, and Hartwell Road (3279+53), upstream of the Genesee River, Buckeye must: a. Convert the manual mainline valve at Hartwell Road to an automated shutoff valve no later than December 31, 2023. b. Have continuous valve status monitoring (open, closed, or partial closed/open), including upstream pressure and downstream pressure. c. Inspect each mainline valve to determine that it is functioning properly, including exercise of the valve to ensure full closure, at least four (4) times each calendar year, at intervals not exceeding 120 days. d. Buckeye must repair or replace any valve used to isolate a leak or rupture that is discovered to be inoperable or unable to maintain shutoff as soon as practicable, but no later than six (6) months after discovery. 15. Field Activity Notices to PHMSA. Before performing field activities (i.e., any time the Affected Segment is exposed to the atmosphere for assessment), Buckeye must give a minimum fourteen (14) day notice to the Director to enable PHMSA to observe. Exception: Immediate response conditions do not require fourteen (14) day notice. However, Buckeye must notify the Director no later than two (2) business days after the immediate condition is discovered. 16. Reporting. Buckeye must submit a biannual report to the Director regarding the information below as it relates to the Affected Segment. PHMSA must receive the biannual report every six (6) months, starting on the last day of the sixth month after the Effective Date of the Consent Order. For example, the biannual reports for a Consent Order dated January 3, 2022, must be received by PHMSA no later than July 31 and January 31. The report must include: a. any occurrence of exceeding the maximum interval between right-of-way (ROW) patrols; b. mainline valves found to be inoperable or unable to maintain shutoff, including the location of the valve, date of discovery, and date of repair; c. any new integrity threats identified; d. results of any ILI or direct assessments performed; and e. all repairs on the pipeline that occurred, including the location of the repair, date of discovery, date of repair, and estimated product loss, if any. 17. Extensions of Time. The Director may grant an extension of time for compliance with any of the terms of the Agreement upon a written request timely submitted demonstrating good cause for an extension. The Director shall respond in writing to any such request. 18. Appeals. Respondent may appeal any decision of the Director to the Associate Administrator for Pipeline Safety. Decisions of the Associate Administrator will be final. IV. Dispute Resolution 19. The Director and Buckeye will informally attempt to resolve any disputes arising under this Agreement. If Respondent and the Director are unable to informally resolve the dispute within fifteen (15) calendar days after the dispute is first raised, in writing, to the Director, Respondent may submit a written request for a determination resolving the dispute from the Associate Administrator for Pipeline Safety providing all information that Respondent believes is relevant to the dispute. If the request is submitted as provided herein, the Associate Administrator will issue a final determination in writing. Decisions of the Associate Administrator under this paragraph will constitute final agency action. The existence of a dispute and the PHMSA's consideration of matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement during the pendency of the dispute resolution process, except as agreed by the Director or the Associate Administrator in writing, or ordered by a court of competent jurisdiction. V. Enforcement 20. This Agreement, including all plans and schedules incorporated by reference, is subject to all enforcement authorities available to PHMSA under 49 U.S.C. §60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under 49 U.S.C. §60122, of up to $200,000 per violation for each day the violation continues and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent is not complying with the terms of this Agreement in accordance with determinations made by the Director, or if appealed, in accordance with decisions of the Associate Administrator. The maximum civil penalty amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017). VI. Recordkeeping and Information Disclosure 21. Unless otherwise required in this Agreement, Respondent agrees to maintain records demonstrating compliance with all requirements of this Agreement for a period of at least five (5) years following completion of all work to be performed. For any reports, plans, or other deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim of business confidentiality or other protections applicable to the release of information by PHMSA, covering part or all of the information required to be submitted to PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must mark the claim of confidentiality in writing on each page, and include a statement specifying the grounds for each claim of confidentially. PHMSA determines release of any information submitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders. VII. Effective Date 22. The term “Effective Date,” as used herein, is the date on which the Consent Order is issued by the Associate Administrator incorporating the terms of this Agreement. Unless specified to the contrary, all deadlines for actions required by this Agreement run from the Effective Date of the Consent Order. VIII. Modification 23. The terms of this Agreement may be modified by mutual agreement of the Parties. Such modifications must be in writing and signed by both parties. IX. Termination 24. This Agreement shall remain in effect until Buckeye completes the actions in Paragraphs 11, 12, and 14 with approval by the Director. The Consent Agreement shall not terminate until the Director confirms, in writing, that the Consent Agreement is terminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent from completing any of the obligations earlier than the deadlines provided for in this Agreement. X. Ratification 25. The Parties’ undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and to execute and legally bind such party to this document. 26. The Parties hereby agree to all conditions and terms of this Agreement. For BUCKEYE: ___________________________________ Mr. Evan Hofmann Vice President, General Counsel and Secretary Buckeye Partners, LP ________________________ Date For PHMSA: ___________________________________ Mr. Robert Burrough Region Director, Eastern Region Office of Pipeline Safety, PHMSA ________________________ Date 120165007_PHC Hearing Scheduled_03072018_text.pdf March 7, 2018 VIA CERTIFIED MAIL AND EMAIL TO: Robert.Hogfoss@troutmansanders.com and Robert.Burrough@dot.gov Mr. Robert E. Hogfoss, Esq. Counsel for Buckeye Partners, L.P. Troutman Sanders LLP 600 Peachtree Street, NE, Suite 5200 Atlanta, GA 30308 Mr. Robert Burrough Acting Director, Eastern Region Pipeline and Hazardous Materials Safety Administration 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 Re: Notice of Hearing, Buckeye Partners, L.P. CPF No. 1-2016-5007 Dear Mr. Hogfoss and Mr. Burrough: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation, Proposed Civil Penalty, and Amended Proposed Compliance Order issued to Buckeye Partners, L.P. by the Office of Pipeline Safety in the above-referenced case. The hearing will take place April 4, 2018, beginning at 12:30 p.m. Eastern Time. The hearing will be at the PHMSA Eastern Region office, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. Upon arrival at the building, attendees will be required to present photo identification to security personnel. A contact phone number for the day of the hearing is (609) 989- 2171. If you have any questions, please do not hesitate to call me at (202) 366-9093. Sincerely, Larry White Presiding Official cc: Mr. Thomas S. Collier, Vice President, Performance Assurance, Buckeye Partners, L.P. Five TEK Park, 9999 Hamilton Blvd., Breinigsville, PA 18031 Ms. Y. Ajoke Agboola, Counsel, Eastern Region, OPS 120165007_Amended NOPV PCP PCO_07312017_text.pdf AMENDED NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and AMENDED PROPOSED COMPLIANCE ORDER OVERNIGHT EXPRESS DELIVERY July 31, 2017 Thomas S. (Scott) Collier Vice President, Performance Assurance Buckeye Partners, L.P. Five TEK Park 9999 Hamilton Boulevard Breinigsville, PA 18031 CPF 1-2016-5007 Dear Mr. Collier: From October 2, 2015 to November 13, 2015, inspectors from the New York State Department of Public Service (NYSDPS), acting as agents of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Buckeye Partners, L.P.’s (Buckeye) construction project for the relocation of the exposed WL803CD segment of the AB803RC petroleum products pipeline at the Genesee River, located in the Towns of Avon and Caledonia in Livingston County, New York. As a result of the inspection, PHMSA issued to Buckeye a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Original Notice) on August 25, 2016. In a letter dated May 4, 2017, PHMSA notified Buckeye that it sought to amend and clarify the remedial action required under the original PCO. In that letter, PHMSA stated: “if Buckeye finds the amended terms to be unacceptable, PHMSA will issue an amended NOPV, with a revised PCO, at which point Buckeye will have an opportunity to respond.” In a letter dated June 1, 2017 (Response), Buckeye contested the amended PCO terms, requested a hearing, and requested entry of a Consent Agreement allowing the company to utilize its CPF 1-2016-5007 preferred method of completing the remedial action required under the original PCO. Pursuant to 49 C.F.R. §190.207(c), PHMSA is issuing this Amended Notice of Probable Violation, including an Amended Proposed Compliance Order (Amended Notice). As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation is: 1. §195.214 Welding Procedures (a) Welding must be performed by a qualified welder or welding operator in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Std 1104 (incorporated by reference, see §195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see §195.3). The quality of the test welds used to qualify welding procedures must be determined by destructive testing. Buckeye failed to perform butt welding of girth welds in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Standard 1104 (incorporated by reference, see §195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see §195.3). On October 2, 2015, NYSDPS inspectors conducted an inspection of the new piping that Buckeye was installing on the west side of the Genesee River, approximately 15 miles southwest of Rochester, NY. NYSDPS inspectors observed that X-52 line pipe had been delivered to the site for welding. NYSDPS inspectors observed field welding, reviewed the records associated with the project, and noted the following: 1. There were thirty-six X-52 to X-52 butt weld joints on this project. 2. Buckeye had a qualified welding procedure, Weld Procedure Specification (WPS) P2A, in place for welding X-52 to X-52 pipe. 3. WPS P2A specified that E-6010 electrodes must be used for the first pass and that E-8010 electrodes must be used for passes 2 through 5. 4. The thirty-six butt weld joints had all been welded using WPS P2A with non-qualified E- 7010-P1 electrodes. 5. A contractor welding girth welds was using WPS P2A with non-qualified E7010-P1 electrodes. NYSDPS inspectors, the Buckeye Compliance Manager, and the Buckeye Area Operations Manager were present when the welding was being performed. On November 6, 2015, NYSDPS sent an email to Buckeye requesting clarifications related to welding procedures and radiographic reports. NYSDPS inspectors also requested a copy of the welding procedure that was used to weld the pipe on October 2, 2015, including qualification of that procedure by destructive testing and documentation by weld map, visual, report, radiographic report, or other record. On November 20, 2015, Buckeye responded, stating the following: “During Buckeye’s investigation of the welding procedure and welding rods used for the project, it was confirmed that the welders who welded the API 5L X52 line pipe for the 120165007_Amended NOPV PCP PCO_07312017_text Page 2 of 5 CPF 1-2016-5007 relocation used Lincoln Electric’s Shield‐ ARC HYP+ electrodes, which have an E7010‐ P1 designation, to join the API 5L X52 line pipe. To demonstrate the suitability of the welding electrodes that were used for the relocated section, Buckeye qualified a welding procedure using Lincoln Shield‐ Arc HYP+ electrodes and surplus API 5L X52 line pipe material from the project. The use of Shield‐ Arc HYP+ electrodes for the API 5L X52 line pipe material exceeds the requirements in API 1104, thus there is no safety or pipeline integrity concern.” Please see Buckeye’s qualified welding procedure using Lincoln Shield‐ Arc HYP+ electrodes and surplus API 5L X52 line pipe in the attachment on this correspondence.” The WPS referenced by Buckeye in their email was WPS No. P12, dated 11/13/2015. It was created after the 36 welds referenced above had been completed. The piping, constructed with welds made using WPS 2A with the non-qualified E-7010-P1 electrodes, had been placed in service. Thus, Buckeye failed to perform butt welding of girth welds in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Standard 1104 (incorporated by reference, see §195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see §195.3). Evidence for the probable violation includes observations and photographs taken by NYSDPS inspectors at the construction site, welding procedures and welding rod specifications, maps, and statements/correspondence between the NYSDPS and Buckeye. Proposed Civil Penalty Under 49 United States Code, §60122, you are subject to a civil penalty not to exceed $200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of $38,200 as follows: Item number PENALTY 1 $38,200 Proposed Compliance Order With respect to item 1, pursuant to 49 United States Code §60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue an Amended Compliance Order to Buckeye Partners, L.P. (Buckeye). Please refer to the Amended Proposed Compliance Order, which is enclosed and made a part of this Amended Notice. Response to this Amended Notice Buckeye’s request for hearing, included in its Response dated June 1, 2017, was premature. Buckeye did not request a hearing within thirty (30) days of receipt of the Original Notice and 120165007_Amended NOPV PCP PCO_07312017_text Page 3 of 5 CPF 1-2016-5007 therefore waived its right to a hearing on the Original Notice, pursuant to 49 C.F.R. §190.208. Pursuant to 49 C.F.R. §190.207(c), PHMSA may amend a notice of probable violation, including remedial actions required under a proposed compliance order, at any time prior to issuance of a final order. Following PHMSA’s amendment of a notice, the respondent will have another opportunity to respond under 49 C.F.R. §190.208. At the time of Buckeye’s June 1, 2017 Response, PHMSA had not yet issued an amended notice. Accordingly, no notice, to which Buckeye could request a hearing or otherwise respond, yet existed. Enclosed as part of this Amended Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All materials submitted in response to this enforcement action may be 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). If you do not respond within 30 days of receipt of this Amended Notice, this constitutes a waiver of your right to contest the allegations in this Amended Notice, and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Amended Notice without further notice to you and to issue a Final Order. Please submit all correspondence in this matter to Robert Burrough, Acting Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. Please refer to CPF 1-2016-5007 on each document you submit and please, whenever possible, provide a signed PDF copy in electronic format. Smaller files may be e-mailed to robert.burrough@dot.gov. Larger files should be sent on a CD accompanied by the original paper copy to the Eastern Region Office. Additionally, if you choose to respond to this (or any other case), please ensure that any response letter pertains solely to one CPF case number. Sincerely, Robert Burrough Acting Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: Kevin Speicher NYSDPS Enclosure: Amended Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings 120165007_Amended NOPV PCP PCO_07312017_text Page 4 of 5 CPF 1-2016-5007 AMENDED PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code §60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Buckeye Partners, L.P. (Buckeye) an Amended Compliance Order incorporating the following remedial requirements to ensure Buckeye’s compliance with the pipeline safety regulations: 1. 2. 3. In regard to Item Number 1 of the Amended Notice pertaining to Buckeye’s failure to perform butt welding of girth welds in accordance with the welding procedures qualified under section 5, section 12, or Appendix A of API Std 1104(incorporated by reference, see §195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporate by reference, see §195.3), Buckeye must cut out all thirty-six (36) existing in-service welds, and weld new girth welds in accordance with §195.214(a); or, Buckeye must qualify a welding procedure using E-7010-P1 electrode welding rods in the same manner used to weld the existing thirty-six (36) in service welds; cut out four (4) field welds for testing, either from the existing thirty-six (36) in-service girth welds or from additional welded pipe that can be traced to an over-pull of the same pipe containing the girth welds currently in service, and perform tensile, nick break, and bend tests for welding procedure qualification purposes. If the four (4) field welds pass the qualification testing, then the existing girth welds may remain in service. If any of the four (4) field welds fail to pass the qualification testing, all remaining in-service girth welds must be cut out and replaced with new girth welds in accordance with §195.214(a). Prior to the creation of welded test samples and commencement of the testing schedule, Buckeye must provide ten (10) days advance notice to the Eastern Region to enable observation of testing. Testing is to be accomplished within 120 days of receipt of the Final Order. Buckeye must complete the requirements as outlined above. All documentation demonstrating compliance with each of the items outlined in this amended proposed compliance order must be submitted to Robert Burrough, Acting Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration, Suite 103, Bear Tavern Road, West Trenton, NJ for review. It is requested (not mandated) that Buckeye maintain documentation of the safety improvement costs associated with fulfilling this Amended Compliance Order and submit the total to Robert Burrough, Acting Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 120165007_Amended NOPV PCP PCO_07312017_text Page 5 of 5 120165007_Closure Letter_12062024_(15-149858S)_text.pdf December 06, 2024 VIA ELECTRONIC MAIL TO: trusso@buckeye.com Mr. Todd Russo President and Chief Executive Officer Buckeye Partners, LP 4200 Westheimer Road, # 975 Houston, Texas 77027 CPF 1-2016-5007 Dear Mr. Russo: On February 9, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Buckeye Partners, L.P. a Consent Order. Based on our review of the documentation you provided, it has been determined that you have complied with the terms of this Order. Accordingly, this case is now closed and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Robert Burrough Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: Kevin Speicher, NY kevin.speicher@dps.ny.gov 120165007_NOPV PCP PCO_08252016_text.pdf NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER OVERNIGHT EXPRESS DELIVERY August 25, 2016 T. Scott Collier VP, Performance Assurance & Asset Integrity Buckeye Partners, L.P. Five TEK Park 9999 Hamilton Boulevard Breinigsville, PA 18031 CPF 1-2016-5007 Dear Mr. Collier: From October 2, 2015 to November 13, 2015, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Buckeye Partners, L.P.’s (Buckeye) construction project for the relocation of the exposed WL803CD segment of the AB803RC petroleum products pipeline at the Genesee River, located in the Towns of Avon and Caledonia in Livingston County, New York. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation is: 1. §195.214 Welding Procedures (a) Welding must be performed by a qualified welder or welding operator in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Std 1104 (incorporated by reference, see §195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see §195.3). The quality of the test welds used to qualify welding procedures must be determined by destructive testing. Buckeye failed to perform butt welding of girth welds in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Standard 1104 (incorporated by reference, see § 195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see § 195.3). 1-2016-5007 On October 2, 2015, inspectors from the New York State Department of Public Service (NYSDPS) conducted an inspection of the new piping that Buckeye was installing on the west side of the Genesee River, approximately 15 miles southwest of Rochester, NY. NYSDPS inspectors observed that X-52 line pipe had been delivered to the site for welding. NYSDPS inspectors observed field welding, reviewed the records associated with the project, and noted the following: 1. There were thirty-six X-52 to X-52 butt weld joints on this project. 2. Buckeye had a qualified welding procedure, Weld Procedure Specification (WPS) P2A, in place for welding X-52 to X-52 pipe. 3. WPS P2A specified that E-6010 electrodes must be used for the first pass and that E-8010 electrodes must be used for passes 2 through 5. 4. The thirty-six butt weld joints had all been welded using WPS P2A with non-qualified E-7010-P1 electrodes. 5. A contractor welding girth welds was using WPS P2A with non-qualified E7010-P1 electrodes. NYSDPS inspectors, the Buckeye Compliance Manager, and the Buckeye Area Operations Manager were present when the welding was being performed. On November 6, 2015, NYSDPS sent an email to Buckeye requesting clarifications related to welding procedures and radiographic reports. NYSDPS inspectors also requested a copy of the welding procedure that was used to weld the pipe on October 2, 2015, including qualification of that procedure by destructive testing and documentation by weld map, visual, report, radiographic report, or other record. On November 20, 2015, Buckeye responded, stating the following: “During Buckeye’s investigation of the welding procedure and welding rods used for the project, it was confirmed that the welders who welded the API 5L X52 line pipe for the relocation used Lincoln Electric’s Shield‐ ARC HYP+ electrodes, which have an E7010‐ P1 designation, to join the API 5L X52 line pipe. To demonstrate the suitability of the welding electrodes that were used for the relocated section, Buckeye qualified a welding procedure using Lincoln Shield‐ Arc HYP+ electrodes and surplus API 5L X52 line pipe material from the project. The use of Shield‐ Arc HYP+ electrodes for the API 5L X52 line pipe material exceeds the requirements in API 1104, thus there is no safety or pipeline integrity concern.” Please see Buckeye’s qualified welding procedure using Lincoln Shield‐ Arc HYP+ electrodes and surplus API 5L X52 line pipe in the attachment on this correspondence.” The WPS referenced by Buckeye in their email was WPS No. P12, dated 11/13/2015. It was created after the 36 welds referenced above had been completed. The piping, constructed with welds made using WPS 2A with the non-qualified E-7010-P1 electrodes, had been placed in service. Thus, Buckeye failed to perform butt welding of girth welds in accordance with welding procedures qualified under section 5, section 12 or Appendix A of API Standard 1104 (incorporated by reference, see § 195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporated by reference, see § 195.3). Evidence for the probable violation includes observations and photographs taken by NYSDPS inspectors at the construction site, welding procedures and welding rod specifications, maps, and statements/correspondence between the NYSDPS and Buckeye. Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per 120165007_NOPV PCP PCO_08252016_text Page 2 of 4 1-2016-5007 violation per day the violation persists up to a maximum of $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of $38,200 as follows: Item number PENALTY 1 $38,200 Proposed Compliance Order With respect to item 1, pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Buckeye Partners, L.P. (Buckeye). Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All materials submitted in response to this enforcement action may be 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). If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice, and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. Please submit all correspondence in this matter to Byron Coy, PE, Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, W. Trenton, NJ 08628. Please refer to CPF 1-2016-5007 on each document you submit and please, whenever possible, provide a signed PDF copy in electronic format. Smaller files may be e-mailed to Byron.Coy@dot.gov. Larger files should be sent on a CD accompanied by the original paper copy to the Eastern Region Office. Additionally, if you choose to respond to this (or any other case), please ensure that any response letter pertains solely to one CPF case number. Sincerely, Byron Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: Kevin Speicher NYSDPS Enclosure: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings 120165007_NOPV PCP PCO_08252016_text Page 3 of 4 1-2016-5007 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Buckeye Partners, L.P. (Buckeye) a Compliance Order incorporating the following remedial requirements to ensure the compliance of Buckeye with the pipeline safety regulations: 1. 2. 3. In regard to Item Number 1 of the Notice pertaining to Buckeye’s failure to perform butt welding of girth welds in accordance with the welding procedures qualified under section 5, section 12, or Appendix A of API Std 1104(incorporated by reference, see §195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC) (incorporate by reference, see §195.3), Buckeye must cut out all thirty six (36) existing in service welds, and weld new girth welds in accordance with §195.214(a); or, Buckeye must qualify a welding procedure by making field test welds using E-7010-P1 electrode welding rods in the same manner used to weld the existing thirty-six (36) in service welds; then, cut out four (4) field test welds and perform tensile, nick break, and bend tests for welding procedure qualification purposes. If the four (4) test welds pass the qualification testing, then the existing thirty-six (36) girth welds may remain in service. If any of the four (4) test welds fail to pass the qualification testing, all thirty-six (36) existing girth welds must be cut out. Buckeye must also provide ten (10) days advance notice to the Eastern Region of creation of welded test samples and testing schedule to enable observation of testing. This is to be accomplished within 120 days of receipt of the Final Order. Buckeye must complete the requirements as outlined above. All documentation demonstrating compliance with each of the items outlined in this proposed compliance order must be submitted to Byron Coy, PE, Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration, Suite 103, Bear Tavern Road, West Trenton, NJ for review. It is requested (not mandated) that Buckeye maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Byron Coy, PE, Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 120165007_NOPV PCP PCO_08252016_text Page 4 of 4 120165007_PHC Hearing Rescheduled_04042018_text.pdf April 4, 2018 VIA CERTIFIED MAIL AND EMAIL TO: Robert.Hogfoss@troutmansanders.com and robert.burrough@dot.gov Mr. Robert E. Hogfoss, Esq. Counsel for Buckeye Partners, LP Troutman Sanders LLP 600 Peachtree Street, NE, Suite 5200 Atlanta, GA 30308 Mr. Robert Burrough Acting Director, Eastern Region Pipeline and Hazardous Materials Safety Administration 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 Re: Notice of Hearing, Buckeye Partners, LP CPF No. 1-2016-5007 Dear Mr. Hogfoss and Mr. Burrough: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation, Proposed Civil Penalty, and Amended Proposed Compliance Order issued to Buckeye Partners, LP by the Office of Pipeline Safety in the above-referenced case. The hearing will take place June 13, 2018, beginning at 12:30 p.m. Eastern Time. The hearing will be at the PHMSA Eastern Region office, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. Upon arrival at the building, attendees will be required to present photo identification to security personnel. A contact phone number for the day of the hearing is (609) 989-2171. If you have any questions, please do not hesitate to call me at (202) 366-9093. Sincerely, Larry White Presiding Official cc: Mr. Thomas S. Collier, Vice President, Performance Assurance, Buckeye Partners, LP Five TEK Park, 9999 Hamilton Blvd., Breinigsville, PA 18031 Ms. Y. Ajoke Agboola, Counsel, Eastern Region, OPS 120165007_Final Order_10102019_text.pdf October 10, 2019 Mr. William Hollis Senior VP and President, Buckeye Services Buckeye Partners, LP One Greenway Plaza, Suite 600 Houston, Texas 77046 Re: CPF No. 1-2016-5007 Dear Mr. Hollis: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation and assesses a civil penalty of $38,200. This is to acknowledge receipt of payment of the full penalty amount, by wire transfer, dated January 12, 2018. When the terms of the compliance order are completed, as determined by the Director, Eastern Region, this enforcement action will be closed. Service of the Final Order by certified mail is effective upon the date of mailing, as provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure cc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA Ms. Catherine D. Little, Esq., Troutman Sanders LLP, 600 Peachtree Street, NE, Suite 5200, Atlanta, Georgia 30308 CERTIFIED MAIL - RETURN RECEIPT REQUESTED U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Buckeye Partners, LP, ) CPF No. 1-2016-5007 ) ) ) Respondent. ) ____________________________________) FINAL ORDER From October 2, 2015, to November 13, 2015, pursuant to 49 U.S.C. § 60117, a representative of the New York State Department of Public Service (NYSDPS), as agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of a pipeline construction project of Buckeye Partners, LP (Buckeye or Respondent), at the Genesee River in Livingston County, New York. Buckeye operates approximately 6,000 miles of pipeline and stores and transports refined petroleum products from the Midwestern to the Eastern part of the U.S.1 As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated August 25, 2016, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Initial Notice). In accordance with 49 C.F.R. § 190.207, the Initial Notice proposed finding that Buckeye had violated 49 C.F.R. § 195.214(a) and proposed assessing a civil penalty of $38,200 for the alleged violation. The Initial Notice also proposed ordering Respondent to take certain measures to correct the alleged violation. Buckeye responded to the Initial Notice by letter dated September 14, 2016, as supplemented by letter dated April 13, 2017. Buckeye did not contest the allegation of violation and provided copies of its revised welding procedures. Following an exchange of correspondence with OPS, by letter dated June 1, 2017, Buckeye disagreed with the manner in which OPS expected it to meet the terms of the proposed compliance order.2 On July 31, 2017, the Director issued an Amended Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Amended Notice) that superseded the Initial Notice. In accordance with 49 C.F.R. § 190.207, the Amended Notice proposed finding that Buckeye had violated 49 C.F.R. § 195.214(a) and proposed assessing a civil penalty of $38,200 for the alleged violation. The Amended Notice also proposed ordering Respondent to take certain measures to correct the alleged violation. These proposed measures altered the field test welding 1 Pipeline Safety Violation Report (Violation Report), (Aug. 25, 2016) (on file with PHMSA), at 1; https://www.buckeye.com/AboutUs/tabid/54/Default.aspx (last accessed July 25, 2019). 2 Buckeye also included a hearing request with this letter, however this request preceded the issuance of the Amended NOPV and was therefore premature. CPF No. 1-2016-5007 Page 2 requirement in the compliance terms of the Initial Notice. Buckeye responded to the Amended Notice by letter dated August 25, 2017, and requested a hearing. A hearing was subsequently held on June 13, 2018, in West Trenton, New Jersey before a PHMSA Presiding Official. At the hearing, Respondent was represented by counsel. After the hearing, Respondent provided additional written material for the record, by letter dated July 20, 2018. FINDING OF VIOLATION In its Response, Buckeye did not contest the allegation in the Notice that it violated 49 C.F.R. Part 195, as follows: Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.214(a), which states: § 195.214 Welding procedures. (a) Welding must be performed by a qualified welder or welding operator in accordance with welding procedures qualified under section 5, section 12, Appendix A or Appendix B of API Std 1104 (incorporated by reference, see §195.3), or Section IX of the ASME Boiler and Pressure Vessel Code (ASME BPVC) (incorporated by reference, see §195.3). The quality of the test welds used to qualify the welding procedures must be determined by destructive testing. The Notice alleged that Respondent violated 49 C.F.R. § 195.214(a) by failing to perform girth welds in accordance with welding procedures qualified under section 5, section 12, Appendix A or Appendix B of API Std 1104, or Section IX of the ASME Boiler and Pressure Vessel Code (ASME BPVC). Specifically, the Notice alleged that Buckeye’s qualified welding procedure for 36 X-52 butt welds called for the use of E-6010 electrodes for the first pass and E-8010 electrodes for passes 2 through 5, but all 36 X-52 butt welds had been welded using non- qualified E-7010-P1 electrodes. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.214(a) by failing to perform girth welds in accordance with welding procedures qualified under section 5, section 12, Appendix A or Appendix B of API Std 1104, or Section IX of the ASME Boiler and Pressure Vessel Code (ASME BPVC). This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any CPF No. 1-2016-5007 Page 3 related series of violations.3 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $38,200 for the violation cited above. In summary, having reviewed the record and considered the assessment criteria for the Item cited above, I assess Respondent a total civil penalty of $38,200, which amount was paid in full by wire transfer on January 12, 2018. COMPLIANCE ORDER The Amended Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 195.214(a). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under Chapter 601. With regard to the violation of § 195.214(a) (Item 1), at the hearing Buckeye explained the difficulty of obtaining numerous field welds for qualification testing including the considerable expense, environmental disturbance that would be entailed. Buckeye explained that a more limited field testing of the welds would be considered an acceptable industry practice under the circumstances. In correspondence following the hearing, the Director and Buckeye came to an agreement on the field testing and Respondent agreed to no longer contest the issuance of a Final Order with compliance terms as modified pursuant to this agreement. I find that this agreed modification to the compliance terms is consistent with the purpose of the regulation. Accordingly, the Compliance Order is modified as set forth below. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 195.214(a) (Item 1), Respondent must cut out all thirty-six (36) existing in-service welds, and weld new girth welds in accordance with §195.214(a); or Buckeye must cut out one (1) field weld created using its qualified procedure, Weld Procedure Specification P15A (qualified on November 13, 2015), from the existing thirty-six (36) in-service girth welds and perform all of the destructive testing requirements on the one (1) weld (including tensile, nick break, and bend tests) as set forth in API 1104 for welding procedure qualification purposes for 10-inch diameter 3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts, 83 Fed. Reg. 60732, 60744 (Nov. 27, 2018). CPF No. 1-2016-5007 Page 4 pipe. To the extent not all of the destructive testing can be conducted on the one (1) weld, Buckeye must cut out one (1) additional weld to perform the necessary testing. If the field weld(s) pass the qualification testing, then the existing girth welds may remain in service. Otherwise, all remaining in-service girth welds must be cut out and replaced with new girth welds in accordance with §195.214(a). Prior to the removal of the existing weld(s) for testing, Buckeye must provide ten (10) days advance notice to the Eastern Region to enable observation of testing. Testing is to be accomplished within 180 days of receipt of the Final Order. 2. Respondent must complete the requirements as outlined above. All documentation demonstrating compliance with this compliance order must be submitted to Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration, Suite 103, Bear Tavern Road, West Trenton, New Jersey for review. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. It is requested (not mandated) that Respondent maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to the Director. It is requested that these costs be reported in two categories: (1) total cost associated with preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with replacements, additions and other changes to pipeline infrastructure. Failure to comply with this Order may result in the administrative assessment of civil penalties not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective action, remain in effect unless the Associate Administrator, upon request, grants a stay. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. October 10, 2019 __________________________________ __________________________ Alan K. 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