# VALERO TERMINALING AND DISTRIBUTION COMPANY — Notice of Probable Violation **Citation:** CPF 42026004NOPV **Type / status:** enforcement / historical **Agency:** Pipeline and Hazardous Materials Safety Administration **Effective:** Not stated **Published:** 2026-02-11 CLOSED notice of probable violation citing 195.428(a). ## Document text Notice of Probable Violation involving VALERO TERMINALING AND DISTRIBUTION COMPANY. PHMSA's enforcement data identifies the cited regulation as 195.428(a). The case was opened on 2026-02-11 and is reported as closed as of 2026-05-07. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 42026004NOPV_Closure Letter_05072026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Closure%20Letter_05072026_(25-329817).pdf 42026004NOPV_Closure Letter_05072026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Closure%20Letter_05072026_(25-329817)_text.pdf 42026004NOPV_Final Order_04012026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Final%20Order_04012026_(25-329817).pdf 42026004NOPV_Final Order_04012026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Final%20Order_04012026_(25-329817)_text.pdf 42026004NOPV_Operator Response to Notice_03112026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Operator%20Response%20to%20Notice_03112026_(25-329817).pdf 42026004NOPV_PCO_02112026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_PCO_02112026_(25-329817).pdf 42026004NOPV_PCO_02112026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_PCO_02112026_(25-329817)_text.pdf 42026004NOPV_Final Order_04012026_(25-329817)_text.pdf U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 1200 New Jersey Avenue, S.E. Washington, D.C. 20590 April 01, 2026 VIA EMAIL TO: lane.riggs@valero.com Lane Riggs President & CEO Valero Partners Operating Co., LLC One Valero Way San Antonio, TX 78249 Re: CPF No. 4-2026-004-NOPV Dear Mr. Riggs: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation and specifies actions that need to be taken to comply with the pipeline safety regulations. When the terms of the compliance order are completed, as determined by the Director, Southwest Region, this enforcement action will be closed. Service of the Final Order by e-mail is effective upon the date of transmission and acknowledgement of receipt as provided under 49 CFR § 190.5. Thank you for your cooperation in this matter. Sincerely, Linda Daugherty Acting Associate Administrator for Pipeline Safety Enclosures (Final Order and NOPV) cc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA Fred Hampton, Vice President, Valero Partners Operating Co., LLC, fred.hampton@valero.com Carlos Gauna, Director Pipeline and Facility Integrity, Valero Partners Operating Co., LLC, carlos.gauna@valero.com Darin Banther, Manager Regulatory Compliance, Valero Partners Operating Co., LLC, darin.banther@valero.com CONFIRMATION OF RECEIPT REQUESTED 2 U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Valero Terminaling and Distribution ) Company, a subsidiary of Valero ) CPF No. 4-2026-004-NOPV Partners Operating Co., LLC, ) ) Respondent. ) ____________________________________) FINAL ORDER On February 11, 2026, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Valero Partners Operation Co., LLC, and Valero Terminaling and Distribution Company (Respondent). The Notice proposed finding that Respondent had violated the pipeline safety regulations in 49 CFR Part 195. The Notice also proposed certain measures to correct the violation. Respondent did not contest the allegation of violation or corrective measures. Based upon a review of all of the evidence, pursuant to section 190.213, I find Respondent violated the pipeline safety regulation listed below, as more fully described in the enclosed Notice, which is incorporated by reference: 49 CFR § 195.428(a) (Item 1) ─ Respondent failed to properly inspect and test the thermal relief devices on Tanks 813 and 816 at its West Memphis facility. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. Compliance Actions Pursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the actions proposed in the enclosed Notice to correct the violation. 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. Upon completion of the ordered actions, Respondent may request that the Director close the case. Respondent previously submitted evidence to show appropriate actions have been taken to correct the violation. This evidence is currently under review by the Director. Failure to comply with this 3 Order may result in the assessment of civil penalties under 49 CFR § 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 order are effective upon service in accordance with 49 CFR § 190.5. ___________________________________ _________________________ Linda Daugherty Date Issued Acting Associate Administrator for Pipeline Safety U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 8701 S. Gessner, Suite 630 Houston TX 77074 NOTICE OF PROBABLE VIOLATION and PROPOSED COMPLIANCE ORDER VIA ELECTRONIC MAIL TO: fred.hampton@valero.com February 11, 2026 Fred E. Hampton Vice President, Pipeline & Terminals Valero Terminaling and Distribution Company One Valero Way, San Antonio, TX 78249 CPF 4-2026-004-NOPV Dear Mr. Hampton: From February 24 through June 30, 2025, 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.) inspected the procedures and facilities of Valero Partners Operating Co. LLC and Valero Terminaling and Distribution Company (Valero) in Arkansas, Mississippi, San Antonio, Texas and Memphis, Tennessee. As a result of the inspection, it is alleged that Valero has committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable violation is: 1. § 195.428 Overpressure safety devices and overfill protection systems. (a) Except as provided in paragraph (b) of this section, each operator shall, at intervals not exceeding 15 months, but at least once each calendar year, or in the case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7½ months, but at least twice each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used. Valero failed to, at intervals not exceeding 15 months, but at least once each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used in accordance with § 195.428(a). Specifically, Valero has failed to properly inspect and test the thermal relief devices on Tanks 813 and 816 at its West Memphis facility since 2022. Relief Valve Inspection Reports from Nov. 29, 2022 and Nov. 27, 2023 show the thermal relief devices on Tanks 813 and 816 as set to 150 psig. On Nov. 29, 2022 the valves were tested at 81 and 91 psig, respectively. On Nov. 27, 2023 the valves were tested to 95 and 90 psig, respectively. The differentials between the set points and testing points indicate that the valves were not properly tested. A separate inspection report from Nov. 30, 2023 lists the setting for the thermal relief device on Tank 813 as 60 psig and states that it was tested to 80 psig. On Nov. 11, 2024, the device was listed as set to 60 psig and was tested to 70 psig. Similarly, an inspection report from Nov. 11, 2024 lists the setting for the thermal relief device on Tank 816 as 55 psig and states that it was tested to 83 psig. Changes to the set point were not documented by any management of change record, the test points differ from the settings considerably, and there are no records indicating why either device was tested to a higher psig than its setting. Testing substantially below the established set pressure does not verify that the valve will open at its required activation pressure and therefore fails to confirm proper overpressure protection. Conversely, if a valve were to open above its set point, it could allow the tank to exceed its maximum allowable working pressure before relieving. In either case, a significant differential between the set pressure and the actual lift (test) pressure is problematic because it demonstrates that the valve’s performance is not aligned with its design set point, undermining confidence that the tank is adequately protected against overpressure conditions. Therefore, Valero failed to, at intervals not exceeding 15 months, but at least once each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used in accordance with § 195.428(a). Proposed Compliance Order With respect to Item 1, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Valero. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. 2 Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement Proceedings. Please refer to this document and note the response options. All material you submit 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). Following your receipt of this Notice, you have 30 days to respond as described in the enclosed Response Options. 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. If you are responding to this Notice, we propose that you submit your correspondence to my office within 30 days from receipt of this Notice. The Region Director may extend the period for responding upon a written request timely submitted demonstrating good cause for an extension. In your correspondence on this matter, please refer to CPF 4-2026-004-NOPV and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Bryan Lethcoe Director, Southwest Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Enforcement Proceedings cc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution Company, darin.banther@valero.com 3 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Valero Partners Operating Company (Valero) a Compliance Order incorporating the following remedial requirements to ensure the compliance of Valero Partners with the pipeline safety regulations: A. In regard to Item 1 of the Notice pertaining to Valero’s failure to properly inspect and test the thermal relief devices on Tanks 813 and 816, Valero Partners must perform the following: a. Review the set points for the thermal relief devices on Tanks 813 and 816 and ensure they are correctly calibrated within 30 days of receipt of the Final Order. b. Review thermal relief device settings and required testing points with personnel at its West Memphis and ensure that personnel have access to required records showing the set points within 30 days of receipt of the Final Order. c. Review the personnel qualifications for personnel performing inspections of the thermal relief devices at its West Memphis facility and determine if they require retraining within 30 days of receipt of the Final Order. D. It is requested (not mandated) that Valero maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, 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. 4 42026004NOPV_Closure Letter_05072026_(25-329817)_text.pdf U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 8701 S. Gessner, Suite 630 Houston TX 77074 VIA ELECTRONIC MAIL TO: fred.hampton@valero.com May 7, 2026 Fred E. Hampton Vice President, Pipeline & Terminals Valero Energy Corporation One Valero Way, San Antonio, TX 78249 CPF 4-2026-004-NOPV Dear Mr. Hampton: On April 1, 2026, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Valero Partners Operation Co., LLC, and Valero Terminaling and Distribution Company (Respondent) a Final Order in the above-referenced case. This Order included a Compliance Order requirement to take corrective actions on your pipeline facility. 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, Bryan Lethcoe Director, Southwest Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution Company, darin.banther@valero.com Carlos Gauna, Director Pipeline and Facility Integrity, Valero Partners Operating Company, LLC, carlos.gauna@valero.com ## Provenance - Official: Yes - Source: - Source ID: `phmsa-enforcement` - SHA-256: `7b87379e3e8dc48993b9892e83cdbbb09cdb32d26b761038d8fe84b0e82f28b4` - Retrieved: 2026-08-20T04:44:44.458Z - Exported: 2026-08-22T10:39:21.647Z - Document slug: `phmsa-enforcement-42026004nopv` ### Source metadata ```json { "cpf": "42026004NOPV", "operator": "VALERO TERMINALING AND DISTRIBUTION COMPANY", "region": "Southwest", "pipelineType": "INTERSTATE LIQUID, INTRASTATE LIQUID", "caseStatus": "CLOSED", "citedSections": [ "195.428(a)" ], "dataAsOf": "08/04/2026 12PM", "caseDataAsOf": "2026-08-04", "attachmentCount": 7, "attachments": [ { "name": "42026004NOPV_Closure Letter_05072026_(25-329817).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Closure%20Letter_05072026_(25-329817).pdf", "bytes": 165124, "category": "agency_document" }, { "name": "42026004NOPV_Closure Letter_05072026_(25-329817)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Closure%20Letter_05072026_(25-329817)_text.pdf", "bytes": 182393, "category": "agency_document" }, { "name": "42026004NOPV_Final Order_04012026_(25-329817).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Final%20Order_04012026_(25-329817).pdf", "bytes": 428870, "category": "agency_document" }, { "name": "42026004NOPV_Final Order_04012026_(25-329817)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Final%20Order_04012026_(25-329817)_text.pdf", "bytes": 279852, "category": "agency_document" }, { "name": "42026004NOPV_Operator Response to Notice_03112026_(25-329817).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Operator%20Response%20to%20Notice_03112026_(25-329817).pdf", "bytes": 620480, "category": "party_submission" }, { "name": "42026004NOPV_PCO_02112026_(25-329817).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_PCO_02112026_(25-329817).pdf", "bytes": 206103, "category": "case_document" }, { "name": "42026004NOPV_PCO_02112026_(25-329817)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_PCO_02112026_(25-329817)_text.pdf", "bytes": 231335, "category": "case_document" } ], "extractedAgencyDocumentCount": 2, "attachmentPolicy": "Official attachment links are retained. 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