# COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC — Notice of Probable Violation **Citation:** CPF 32023006NOPV **Type / status:** enforcement / historical **Agency:** Pipeline and Hazardous Materials Safety Administration **Effective:** Not stated **Published:** 2023-05-04 CLOSED notice of probable violation citing 195.579(a). ## Document text Notice of Probable Violation involving COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulation as 195.579(a). The case was opened on 2023-05-04 and is reported as closed as of 2025-03-03. Proposed civil penalty: $804,300. Assessed civil penalty: $268,100. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 32023006NOPV_Closure Letter_03032025_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Closure%20Letter_03032025_(22-235672).pdf 32023006NOPV_Closure Letter_03032025_(22-235672)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Closure%20Letter_03032025_(22-235672)_text.pdf 32023006NOPV_Consent Agreement and Order_01032024_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Consent%20Agreement%20and%20Order_01032024_(22-235672).pdf 32023006NOPV_Consent Agreement and Order_01032024_(22-235672)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Consent%20Agreement%20and%20Order_01032024_(22-235672)_text.pdf 32023006NOPV_Operator Response to Notice_06022023_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Operator%20Response%20to%20Notice_06022023_(22-235672).pdf 32023006NOPV_PCP PCO_05042023_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_PCP%20PCO_05042023_(22-235672).pdf 32023006NOPV_PCP PCO_05042023_(22-235672)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_PCP%20PCO_05042023_(22-235672)_text.pdf 32023006NOPV_Consent Agreement and Order_01032024_(22-235672)_text.pdf January 3, 2024 VIA ELECTRONIC MAIL TO: dllamp@cvrenergy.com David Lamp President and Chief Executive Officer CVR Partners, LP P.O. Box 3516 411 N.E. Washington Boulevard Bartlesville, Oklahoma 74006 CPF No. 3-2023-006-NOPV Dear Mr. Lamp: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Coffeyville Resources Crude Transportation, LLC (CRCT), which was executed on December 27, 2023. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission 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: Consent Order and Consent Agreement cc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Mr. Keith Kuehn, Vice President, Crude Transportation, CRCT, kakuehn@cvrenergy.com Mr. Blake Record, DOT Compliance Primary, CRCT, brecord@cvrenergy.com Mr. Jeffrey Hunter, Outside Counsel for CRCT, jhunter@perkinscoie.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 ) ) COFFEYVILLE RESOURCES ) CRUDE TRANSPORTATION, LLC, ) CPF No. 3-2023-006-NOPV ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated May 4, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice) to Coffeyville Resources Crude Transportation, LLC (CRCT or Respondent). In response to the Notice, Respondent contested the allegation of violation contained in the Notice but did not request a formal hearing on the matter. CRCT did ask for the opportunity to meet informally with PHMSA to discuss the calculation of the civil penalty in the Notice. Respondent and PHMSA (The Parties) subsequently met to discuss the issues raised in the Response on August 30, 2023. Following the informal discussion, CRCT submitted supplemental information in a response sent October 2, 2023. The supplemental response asserted further argument for Respondent’s position that the proposed civil penalty should be lowered. As a result of those discussions, as explained in more detail below, the Parties have agreed to a Consent Agreement by which the civil penalty is assessed to be $268,100. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order. CRCT is hereby ordered to comply with the terms of the Consent Agreement pursuant to its terms. 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 U.S.C. § 60122 and 49 C.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. January 3, 2024 ________________________________ ______________________ 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 ) COFFEYVILLE RESOURCES ) CRUDE TRANSPORTATION, LLC, ) CPF No. 3-2023-006-NOPV ) ) ) Respondent. ) ____________________________________) CONSENT AGREEMENT From February through August 2022, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.), investigated the February 10, 2022 reported release of approximately 720 barrels of crude oil from an eight-inch Valley pipeline controlled by Coffeyville Resources Crude Transportation, LLC (CRCT or Respondent) in Crowley County, Kansas. As a result of the investigation, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated May 4, 2023, a Notice of Probable Violation, Proposed Compliance Order, and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that CRCT committed violations of one provision of 49 C.F.R. Part 195 (Item 1), proposed ordering Respondent to take certain measures to correct the alleged violation, and proposed a civil penalty of $804,300. CRCT responded to the Notice by letter dated June 2, 2023 (Response). Respondent contested the allegation of violation contained in the Notice but did not request a hearing on the matter. CRCT requested an informal meeting with PHMSA to discuss the calculation of the civil penalty proposed in the Notice. PHMSA and Respondent (the Parties) subsequently met on August 30, 2023, to discuss the issues raised in the Response. As a result of those discussions and as explained in more detail below, the Parties have agreed to a Consent Agreement by which PHMSA makes a finding of violation, assesses a reduced civil penalty of $268,100, and orders certain corrective action be completed. Having agreed that settlement of this proceeding will avoid further administrative proceedings or litigation and will serve the public interest by promoting safety and protection of the environment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent and agreement, the Parties hereby agree as follows: I. General Provisions 1. Respondent acknowledges that as the operator of the pipeline facilities subject to the Notice, Respondent and its referenced pipeline facilities are 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 Consent Agreement (Agreement), Respondent acknowledges that it received proper notice of PHMSA’s action in this proceeding and that the Notice 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 for the Dispute Resolution provisions set forth herein. 4. This Agreement shall apply to and be binding upon PHMSA and Respondent, 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 Respondent’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 Notice. 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 Respondent 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 30 days prior to such transfer. Respondent will provide written notice of the transfer to the Director no later than 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. Except as set forth herein, this Agreement does not constitute a finding of violation of any other federal law or regulation and may not be used in any civil proceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any law, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or in future PHMSA enforcement actions. 11. Agreement. Respondent neither admits nor denies any allegation or conclusion in the Notice or this Agreement but agrees for purposes of this Agreement to comply with the terms of this II. Finding of Violation: 12. Item 1- 49 C.F.R. § 195.579: The Notice alleged Respondent failed to investigate the corrosive effect of the hazardous liquid on its pipeline or take adequate steps to mitigate internal corrosion. Specifically, the Notice alleged that during the investigation of the February 10, 2022, reported release, PHMSA found that the leak originated from a dead leg segment of pipe that had not been included in the Valley pipeline threat matrix due to ineffective CRCT internal communications. Respondent contested the allegation in the Notice. Upon further discussions between the Parties, without admitting or denying the allegation of violation for this item, Respondent agrees to accept the finding of the violation for purposes of settlement. 13. Item 1 will be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Respondent for the five (5)-year period following the Effective Date of this Agreement. III. Civil Penalty: 14. Item 1: The Notice proposed assessing a civil penalty in the amount of $804,300 for Item 1. Respondent requested a reduction of the proposed civil penalty, and, with its responses, provided new information and evidence to support its request. After consideration of the new information and evidence provided by Respondent, PHMSA agrees to a reduced civil penalty. Specifically, Respondent provided evidence in the form of a report from the Kansas Department of Health and Environment indicating there was little or no known environmental harm from the release. Consequently, a reduction of the civil penalty calculation multiplier reflecting the limited impact of the release is appropriate, which results in a civil penalty of $268,100. Respondent agrees to pay a reduced civil penalty in the amount of $268,100 for the violation in Item 1. 15. Respondent shall pay a total civil penalty in the amount of $268,100, pursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20 days from the Effective Date of this Agreement. IV. Compliance Order: 16. Item 1: The Notice proposed certain compliance order actions to address the non- compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. As such, Respondent agrees to perform the following corrective measures: A. In regard to Item 1 of the Notice pertaining to CRCT’s failure to monitor and mitigate internal corrosion, CRCT must, within 90 days of the Final Order, provide an updated internal corrosion monitoring procedure that includes a process to periodically survey its pipeline segments for dead leg segments. V. Enforcement: 17. This Agreement 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 $257,664 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 the determinations made by the Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and associated schedules set forth or referenced in Section IV are automatically incorporated into this Agreement and are enforceable in the same manner. VI. Review and Approval Process: 18. With respect to any submission under Section IV (Compliance Order) of this Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or in part, the submission; (b) approve the submission on specified, reasonable conditions; (c) disapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the Director approves, approves in part, or approves with conditions, Respondent will take all actions as approved by the Director, subject to Respondent’s right to invoke the dispute resolution procedures with respect to any conditions the Director identifies. If the Director disapproves all or any portion of the submission, the Director will provide Respondent a written notice of the deficiencies. Respondent will correct all deficiencies within the time specified by the Director and resubmit it for approval. VII. Dispute Resolution: 19. The Director and Respondent will informally attempt to resolve any disputes arising under this Agreement, including any decision of the Director under the terms of Section IV, Compliance Order. If Respondent and the Director are unable to informally resolve the dispute within 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, PHMSA. Such request must be made in writing and provided to the Director, counsel for the Central Region, and to the Associate Administrator for Pipeline Safety, no later than 10 calendar days from the 15-day deadline for informal resolution referenced in this paragraph. Along with its request, Respondent must provide the Associate Administrator with all information Respondent believes is relevant to the dispute. Decisions of the Associate Administrator under this paragraph will constitute final agency action. The existence of a dispute and 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. VIII. Effective Date: 20. The term “Effective Date,” as used herein, is the date on which the Consent Order is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement. IX. 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. X. Modification: 22. 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. XI. Termination: 23. This Agreement will remain in effect until the Compliance Order in Section IV and the Civil Penalty in Section III are satisfied, as determined by the Director. The Agreement shall not terminate until the Director confirms, in writing, that the 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. XII. Ratification: 24. 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. 25. The Parties hereby agree to all findings, conditions, and terms of this Agreement. [Signature Lines on Following Page] For Coffeyville Resources Crude Transportation, LLC: ___________________________________ Keith Kuehn, Vice President Pipelines, Coffeyville Resources Crude Transportation, LLC ________________________ Date: For PHMSA: ________________________________________ Director, Central Region, Office of Pipeline Safety ________________________ Date: 32023006NOPV_Closure Letter_03032025_(22-235672)_text.pdf VIA ELECTRONIC MAIL TO: dgsloan@CVREnergy.com; brecord@cvrenergy.com; brandon@enservsolutions.com March 3, 2025 Mr. Don Sloan – VP, Crude Transportation Pipeline Coffeyville Resources Crude Transportation, LLC P.O. Box 3516 411 N.E. Washington Boulevard Bartlesville, Oklahoma 74006 RE: CPF 3-2023-006-NOPV Dear Mr. Sloan: On January 3, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Coffeyville Resources Crude Transportation, LLC (Coffeyville) a Consent Order, incorporating the terms of the Consent Agreement in the above-referenced case. The Consent Agreement included a Compliance Order and Civil Penalty assessment. Based on our review of the documentation provided, and confirmation of payment of the civil penalty, it has been determined that Coffeyville has complied with the terms of the Consent Agreement and 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, Gregory A. Ochs Director, Central Region, Office of Pipeline Safety cc: Blake Record, Safety and DOT Compliance, brecord@cvrenergy.com Brandon Clemons, Compliance Manager, brandon@enservsolutions.com ## Provenance - Official: Yes - Source: - Source ID: `phmsa-enforcement` - SHA-256: `5ab8c1679bbcfdf0283b3b9216833487d9534be7ee4184ae15f791980a3ffd4c` - Retrieved: 2026-08-20T04:44:44.458Z - Exported: 2026-08-25T16:17:45.187Z - Document slug: `phmsa-enforcement-32023006nopv` ### Source metadata ```json { "cpf": "32023006NOPV", "operator": "COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC", "region": "Central", "pipelineType": "INTERSTATE LIQUID", "caseStatus": "CLOSED", "citedSections": [ "195.579(a)" ], "dataAsOf": "08/04/2026 12PM", "caseDataAsOf": "2026-08-04", "attachmentCount": 7, "attachments": [ { "name": "32023006NOPV_Closure Letter_03032025_(22-235672).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Closure%20Letter_03032025_(22-235672).pdf", "bytes": 241159, "category": "agency_document" }, { "name": "32023006NOPV_Closure Letter_03032025_(22-235672)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Closure%20Letter_03032025_(22-235672)_text.pdf", "bytes": 107635, "category": "agency_document" }, { "name": "32023006NOPV_Consent Agreement and Order_01032024_(22-235672).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Consent%20Agreement%20and%20Order_01032024_(22-235672).pdf", "bytes": 566467, "category": "agency_document" }, { "name": "32023006NOPV_Consent Agreement and Order_01032024_(22-235672)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Consent%20Agreement%20and%20Order_01032024_(22-235672)_text.pdf", "bytes": 201434, "category": "agency_document" }, { "name": "32023006NOPV_Operator Response to Notice_06022023_(22-235672).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Operator%20Response%20to%20Notice_06022023_(22-235672).pdf", "bytes": 147438, "category": "party_submission" }, { "name": "32023006NOPV_PCP PCO_05042023_(22-235672).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_PCP%20PCO_05042023_(22-235672).pdf", "bytes": 310572, "category": "case_document" }, { "name": "32023006NOPV_PCP PCO_05042023_(22-235672)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_PCP%20PCO_05042023_(22-235672)_text.pdf", "bytes": 124520, "category": "case_document" } ], "extractedAgencyDocumentCount": 2, "attachmentPolicy": "Official attachment links are retained. 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