# CHEVRON PIPE LINE CO — Notice of Probable Violation

**Citation:** CPF 520105028  
**Type / status:** enforcement / historical  
**Agency:** Pipeline and Hazardous Materials Safety Administration  
**Effective:** Not stated  
**Published:** 2010-11-01

CLOSED notice of probable violation citing 195.250, 195.402, 195.452(i)(3), 195.575(e).

## Document text

Notice of Probable Violation involving CHEVRON PIPE LINE CO. PHMSA's enforcement data identifies the cited regulations as 195.250,  195.402,  195.452(i)(3),  195.575(e). The case was opened on 2010-11-01 and is reported as closed as of 2012-02-23. Proposed civil penalty: $423,600. Assessed civil penalty: $423,600. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520105028_Closure Letter_02232012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_Closure%20Letter_02232012.pdf

520105028_Closure Letter_02232012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_Closure%20Letter_02232012_text.pdf

520105028_FinalOrder_02172011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_FinalOrder_02172011.pdf

520105028_FinalOrder_02172011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_FinalOrder_02172011_text.pdf

520105028_NOPV PCP PCO_11012010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_NOPV%20PCP%20PCO_11012010.pdf

520105028_NOPV PCP PCO_11012010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_NOPV%20PCP%20PCO_11012010_text.pdf

520105028_operator_response_to_notice_12022010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_operator_response_to_notice_12022010.pdf

520105028_Closure Letter_02232012_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
February 23, 2012
Mr. James Barnum
VP, Pipeline Services and Standards
Chevron Pipe Line Company
4800 Fournace Place
Bellaire, TX 77401-2324
CPF 5-2010-5028
Dear Mr. Barnum:
On February 17, 2011, the Pipeline and Hazardous Materials Safety Administration
(PHMSA) issued to Chevron Pipe Line Company (CPL) a Final Order in the above-
referenced case. This Order included a Compliance Order and closed the portion of the
enforcement case associated with the Civil Penalty assessment. Based on our review of
the documentation CPL provided, by letters dated February 15, 2012 and February 20,
2012, it has been determined that you have complied with the Compliance Order portion
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,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: Gary Saenz via e-mailed attachment
PHP-60 Compliance Registry
PHP-500 J. Stahoviak

520105028_NOPV PCP PCO_11012010_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 1, 2010
Ms. Rebecca B. Roberts
President
Chevron Pipe Line Company
4800 Fournace Place
Bellaire, TX 77401-2324
CPF 5-2010-5028
Dear Ms. Roberts:
On June 12, 2010, the Pipeline and Hazardous Materials Safety Administration (PHMSA) was
notified of a release that occurred on a Chevron Pipe Line Company (Chevron) pipeline near
Salt Lake City, Utah. The release began the previous night and resulted in approximately 800
barrels of crude oil being released into the ground and nearby Red Butte Creek where the oil
flowed westwards into Liberty Park Pond. On June 12, 2010, pursuant to Chapter 601 of 49
United States Code, PHMSA initiated an investigation into the causes of that release.
As a result of the investigation, 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 violations are:
1. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline system a
manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies….



(c) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following to provide safety during
maintenance and normal operations:
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
Chevron had a procedure for patrolling its pipeline rights-of-way (ROWs), which is required
by 49 C.F.R. §195.412, detailed in Procedure Number MIP-205 of its Operations and
Maintenance Manual, Maintenance and Inspection Procedural Manual (MIP). Chevron did not
implement the inspection procedures in MIP-205 for the conditions that were on the ROW in
the vicinity of where the pipeline failure occurred.
Chevron had chosen to use aerial patrols as the method for inspecting the surface conditions on
or adjacent to the ROW for Crude Oil #2 Pipeline. The ROW had areas of excessive
overgrowth and nearby manmade structures at the time of the OPS failure investigation. In
addition, there was a pipeline marker buried in the bushes over Chevron’s crude line #1.
According to MIP-205, inspections in such areas should have been done by land vehicle or on
foot, and according to MIP-205 Section 5.4, the ROW overgrowth and the condition of the
pipeline marker sign should have been noted during the inspections. Heavy vegetation,
numerous structures, and narrow canyons in this pipeline segment indicate that aerial patrols
could not be used to adequately assess the surface conditions on or adjacent to the pipeline
right-of-way.
Chevron had procedures for controlling corrosion of their pipeline systems detailed in their
Core Liquids Pipeline Operations and Maintenance Manual in Section 10. Section 10.3.6
required grounding devices on underground pipelines in the vicinity of electrical isolation
equipment locations to mitigate the risk of fault currents, lightning, and electrical arcing from
negatively impacting the integrity of the pipeline. No such protective or mitigative measures
were taken despite the location of an electrical substation above Crude Lines #1 and #2.
2. §195.575 Which facilities must I electrically isolate and what inspections, tests,
and safeguards are required?
(e) If a pipeline is in close proximity to electrical transmission tower footings,
ground cables, or counterpoise, or in other areas where it is reasonable to foresee
fault currents or an unusual risk of lightning, you must protect the pipeline
against damage from fault currents or lightning and take protective measures at
insulating devices.
High-voltage electric transmission lines, an aboveground to belowground electric transfer
station, and a security fence were located on the ROW at the point where Chevron’s Crude Oil
#2 Pipeline failed on June 11, 2010. OPS’s accident investigation indicates that a discharge of
electric current onto the pipeline was the probable cause of that failure. Chevron did not
protect that portion of the Crude Oil #2 Pipeline against damage from fault currents that could
be imparted from the nearby transfer station, including all structures tied into that station’s
2



grounding grid, and did not take protective measures at insulating devices. This lack of
protection resulted in a hole being created in the pipeline due to electrical arcing from the
facility fence pole.
3. §195.452 Pipeline integrity management in high consequence areas.
(i) What preventive and mitigative measures must an operator take to protect the
high consequence area?
(3) Leak detection. An operator must have a means to detect leaks on its pipeline
system. An operator must evaluate the capability of its leak detection means and
modify, as necessary, to protect the high consequence area. An operator's
evaluation must, at least, consider, the following factors – length and size of the
pipeline, type of product carried, the pipeline's proximity to the high consequence
area, the swiftness of leak detection, location of nearest response personnel, leak
history, and risk assessment results.
Chevron did not have an adequate means to detect leaks on the Crude Oil #2 Pipeline at the
time of the June 11, 2010, failure. OPS’s accident investigation indicates that over ten (10)
hours elapsed between the time of the release and Chevron’s notification of the release by the
local fire department at 7:42am on June 12th. Chevron controllers did not detect the leak and
notification by the fire department was the first definitive knowledge Chevron had that a spill
had occurred. The release occurred in a high-consequence area and led to the spill of
approximately 800 barrels of crude oil into the Red Butte Creek and surrounding soils.
OPS’s accident investigation further indicates that Chevron knew that the elevation profile and
operational characteristics of the Crude Oil #2 pipeline rendered its chosen method of leak
detection inadequate with respect to the swiftness of leak detection. Chevron’s August 13,
2010, response to PHMSA’s request for specific information about their leak detection
capabilities on their Crude Line #2 states that they had performed a leak detection capability
evaluation study in 2007. That report concluded that they needed enhancements to their leak
detection capabilities on this line, but Chevron did not implement the recommended
improvements until after the release.
4. §195.250 Clearance between pipe and underground structures.
Any pipe installed underground must have at least 12 inches (305 millimeters) of
clearance between the outside of the pipe and the extremity of any other
underground structure, except that for drainage tile the minimum clearance
may be 12 inches (305 millimeters) but not less than 2 inches (51 millimeters).
However, where 12 inches (305 millimeters) of clearance is impracticable, the
clearance may be reduced if adequate provisions are made for corrosion control.
3



Chevron’s Crude Oil #2 pipeline had a fencepost installed within three (3) inches of it. The
probable cause of the pipeline failure on June 11, 2010, was a high-voltage electrical current
which went from the fencepost to the pipeline due to the proximity of the post to the pipeline.
Chevron had installed a pipeline marker within a foot of the fence post.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000
for any related series of violations. The Compliance Officer has reviewed the circumstances
and supporting documentation involved in the above probable violations and has
recommended that you be preliminarily assessed a civil penalty of $423,600 as follows:
Item number PENALTY
1 $45,400
2 $316,600
3 $61,600
Warning Items
With respect to item 4, we have reviewed the circumstances and supporting documents
involved in this case and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time. We advise you to promptly correct similar occurrences
on your Rangely to Salt Lake City pipeline. Be advised that failure to do so may result in
Chevron being subject to additional enforcement action.
Proposed Compliance Order
With respect to items 1 through 3 pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to Chevron
Pipe Line Company. 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. Be advised that all material you submit in response to this enforcement action is
subject to being 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.
4



In your correspondence on this matter, please refer to CPF 5-2010-5028 and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Compliance Registry
PHP-500 P. Katchmar, J. Stahoviak (#130345)
5



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Chevron Pipe Line Company (Chevron) a
Compliance Order incorporating the following remedial requirements to ensure the compliance
of Chevron with the pipeline safety regulations:
1. In regard to Item Number 1 of the Notice pertaining to pipeline patrolling, if
Chevron continues to patrol their pipelines using an aerial method, they must
sufficiently clear the right-of-way (ROW) on the Rangely, Colorado, to Salt
Lake City, Utah, crude oil pipeline system so they can observe the surface
conditions on or adjacent to the ROW as required by §195.412. Alternatively,
in areas where vegetation or other ROW obstructions cannot be removed, other
methods of patrolling, such as walking or driving, must be implemented to
allow direct observation of the ROW conditions.
2. In regard to Item Number 2 of the Notice pertaining to electrical isolation and
protection from fault currents per §195.575, Chevron must inspect the Rangely
to Salt Lake City crude oil pipeline system for areas where damage to their
pipeline facilities could occur from electrical power sources. Specifically, if the
pipeline is found to be in close proximity to electrical transmission tower
footings, ground cables, or counterpoise, or in other areas where it is reasonable
to foresee fault currents or an unusual risk of lightning, Chevron must protect
the pipeline system against damage from fault currents or lightning and take
protective measures at insulating devices.
3. In regard to Item Number 3 of the Notice pertaining to Chevron’s leak detection
methods utilized on the Rangely to Salt Lake City crude oil pipeline system and
in accordance with §195.452 (i)(3), Chevron must reevaluate and modify its
leak detection system on this pipeline to increase the swiftness and sensitivity
of detection in order to minimize the impacts to high consequence areas.
4. Chevron shall complete the above items within 365 days of receipt of the Final
Order.
5. Upon completion of all of the above requirements, Chevron must submit
documentation on all actions taken by pipeline system including a summary
report detailing the remedial actions taken to enhance public safety for each
pipeline system. This report must be submitted to Chris Hoidal, Director,
Western Region, Pipeline and Hazardous Materials Safety Administration,
within 6 months of completing all required actions.
6



6. Chevron shall maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to Chris
Hoidal, Director, Western Region, Pipeline and Hazardous Materials Safety
Administration. Costs shall 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.
7

520105028_FinalOrder_02172011_text.pdf

FEB 17 2011
Ms. Rebecca B. Roberts
President
Chevron Pipe Line Company
4800 Fournace Place
Bellaire, TX 77401-2324
Re: CPF No. 5-2010-5028
Dear Ms. Roberts:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a civil penalty of $423,600, and specifies actions that need to be taken by
Chevron Pipe Line Company to comply with the pipeline safety regulations. This is to
acknowledge receipt of payment of the full penalty amount, by wire transfer, dated December 2,
2010. When the terms of the compliance order are completed, as determined by the Director,
Western Region, this enforcement action will be closed. Service of the Final Order by certified
mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R.
§ 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Chris Hoidal, Director, Western Region, PHMSA
CERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0041 3566]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Chevron Pipe Line Company, ) CPF No. 5-2010-5028
)
Respondent. )
____________________________________)
FINAL ORDER
On June 12, 2010, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an
investigation of an incident involving the pipeline system operated by Chevron Pipe Line
Company (Chevron or Respondent) in Salt Lake City, Utah. Chevron is the operator of a 182.5-
mile hazardous liquid pipeline system that transports crude oil from a terminal in Rangely,
Colorado, to a refinery in Salt Lake City, Utah (Salt Lake City Refinery). There are two 10-inch
pipelines in that system: the Number 1 Line, an inactive line built in 1948, and the Number 2
Line, an active line built in 1952.1
The investigation arose out of a failure that occurred on the Number 2 Line on June 11, 2010,
near Milepost (MP) 174.5, resulting in the release of 800 barrels of crude oil onto public
property2 and into the Red Butte Creek. Chevron did not detect or respond to that failure for
more than 10 hours.
As a result of the investigation, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated November 1, 2010, a Notice of Probable Violation and Proposed
Civil Penalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R.
§ 190.207, the Notice proposed finding that Chevron had committed various violations of 49
C.F.R. Part 195, proposed ordering Chevron to take certain measures to correct the alleged
violations, and proposed assessing a civil penalty of $423,600 for the alleged violations.
1 The Number 2 Line receives crude oil in Rangely from a hazardous liquid gathering line system and at three
additional downstream injection points. It has an elevation profile that ranges from 4,234 feet at the Salt Lake City
Refinery to 8,450 feet at Wolf Creek Pass and traverses several high consequence areas, particularly in the 50-mile
segment that runs from Park City, Utah, to Salt Lake City.
2 MP 174.5 is located on property that is owned by the University of Utah. Several public buildings, including an
arboretum, auditorium, and dormitories, are in the immediate area.



2
Chevron responded to the Notice by letter dated December 2, 2010 (Response). The company
did not contest the allegations of violation but provided information concerning the corrective
actions it had taken. Later that day, Respondent paid the full amount of the civil penalty by wire
transfer as provided in 49 C.F.R. § 190.227. Respondent did not request a hearing and therefore
has waived its right to one.
FINDINGS OF VIOLATION
In its Response, Chevron did not contest the allegations 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. § 195.402, which states in
relevant part:
§ 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline system a
manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies….
(b) Maintenance and normal operations. The manual required by paragraph (a) of
this section must include procedures for the following to provide safety during
maintenance and normal operations:
(1) ….
(3) Operating, maintaining, and repairing the pipeline system in accordance with
each of the requirements of this subpart and subpart H of this part.
The Notice alleged that Respondent violated 49 C.F.R. § 195.402 by failing to follow its manual
of written procedures for conducting normal operations and maintenance activities. Specifically,
the Notice alleged that Chevron failed to properly implement the provisions of its right-of-way
inspection procedure, CPL-MIP 205 Pipeline Patrol, in the vicinity of MP 174.5. The Notice
further alleged that Chevron failed to implement its procedures for controlling corrosion on its
pipeline systems as detailed in its Core Liquids Pipeline Operations and Maintenance Manual in
Section 10.3.6.
Respondent did not contest these allegations. Accordingly, based upon a review of all of the
evidence, I find that Respondent violated 49 C.F.R. § 195.402 by failing to follow its manual of
written procedures for conducting normal operations and maintenance activities.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.575(e), which states:
§ 195.575 Which facilities must I electrically isolate and what inspections, tests, and
safeguards are required?
(e) If a pipeline is in close proximity to electrical transmission tower footings,
ground cables, or counterpoise, or in other areas where it is reasonable to foresee fault
currents or an unusual risk of lightning, you must protect the pipeline against damage
from fault currents or lightning and take protective measures at insulating devices.



3
The Notice alleged that Respondent violated 49 C.F.R. § 195.575(e) by failing to protect the
pipeline against damage from fault currents or lightning and take protective measures at
insulating devices. Specifically, the Notice alleged that several high-voltage electric
transmission lines, an aboveground-to-belowground electric transfer station, and a security fence
are located in the vicinity of MP 174.5, and that Chevron had not protected that portion of the
Number 2 Line against damage from fault currents and had not taken protective measures at
insulating devices.
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. § 195.575(e) by failing to protect the
pipeline against damage from fault currents or lightning and failing to take protective measures
at insulating devices.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(i)(3), which states:
§ 195.452 Pipeline integrity management in high consequence areas.
(i) What preventive and mitigative measures must an operator take to protect
the high consequence area?
(3) Leak detection. An operator must have a means to detect leaks on its pipeline
system. An operator must evaluate the capability of its leak detection means and modify,
as necessary, to protect the high consequence area. An operator's evaluation must, at
least, consider, the following factors – length and size of the pipeline, type of product
carried, the pipeline's proximity to the high consequence area, the swiftness of leak
detection, location of nearest response personnel, leak history, and risk assessment
results.
The Notice alleged that Respondent violated 49 C.F.R. § 195.452 by failing to have an adequate
means for detecting leaks on its pipeline system. Specifically, the Notice alleged that Chevron
did not detect the June 11, 2010 failure on the Number 2 Line for more than 10 hours, and that
Respondent first became aware of the release when it received a phone call from the local fire
department. The Notice further alleged that the failure occurred in a high-consequence area and
resulted in the release of approximately 800 barrels of crude oil into the Red Butte Creek and
surrounding soils.
of the evidence, I find that Respondent violated 49 C.F.R. § 195.452 by failing to have an
Respondent did not contest this allegation of violation.3 Accordingly, based upon a review of all
adequate means for detecting leaks on its pipeline system.
3 OPS’s accident investigation report indicates that Chevron knew that the elevation profile and operational
characteristics of the Number 2 Line rendered its leak detection inadequate. Indeed, in an August 13, 2010 response
to a request for specific information, Chevron admitted that it had performed a leak detection capability evaluation
study of the Number 2 Line in 2007, and that this report concluded that the leak detection capabilities on that line
needed to be improved. However, Chevron did not implement that recommendation until after the June 11, 2010
failure.



4
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any
related series of violations. 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; the Respondent’s
ability to pay the penalty and 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 $423,600 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $45,400 for Respondent’s violation of 49 C.F.R.
§ 195.402, for failing to follow its manual of written procedures for conducting normal
operations and maintenance activities. Chevron neither contested the allegation nor presented
any evidence or argument justifying a reduction in the proposed penalty. Accordingly, having
reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of
$45,400 for violation of 49 C.F.R. § 195.402.
Item 2: The Notice proposed a civil penalty of $316,600 for Respondent’s violation of 49
C.F.R. § 195.575, for failing to protect its pipeline against damage from fault currents or
lightning and failing to take protective measures at insulating devices. Chevron neither contested
the allegation nor presented any evidence or argument justifying a reduction in the proposed
penalty. Accordingly, having reviewed the record and considered the assessment criteria, I
assess Respondent a civil penalty of $316,600 for violation of 49 C.F.R. § 195.575.
Item 3: The Notice proposed a civil penalty of $61,600 for Respondent’s violation of 49 C.F.R.
§ 195.452, for failing to have an adequate means to detect leaks on its pipeline system. Chevron
neither contested the allegation nor presented any evidence or argument justifying a reduction in
the proposed penalty. Accordingly, having reviewed the record and considered the assessment
criteria, I assess Respondent a civil penalty of $61,600 for violation of 49 C.F.R. § 195.452.
Chevron paid the full civil penalty amount of $423,600 for these violations by wire transfer dated
December 2, 2010. Accordingly, the case is hereby closed with prejudice to the Respondent
under 49 C.F.R. § 190.209(a)(1).
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for
violations of 49 C.F.R. §§ 195.402, 195.575, and 195.452, respectively. 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. 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:



5
1. With respect to the violation of § 195.402 (Item 1), Respondent must clear the
ROW for the Rangely, Colorado, to Salt Lake City, Utah pipeline system to continue
using aerial patrols to perform the inspections required under 49 C.F.R. § 195.412. In
areas where vegetation or other obstructions cannot be removed, Respondent must
use other methods of patrolling, such as walking or driving, to allow for direct
observation of the ROW’s condition.
2. With respect to the violation of § 195.575 (Item 2), Respondent must inspect the
Rangely, Colorado, to Salt Lake City, Utah pipeline system for areas where damage
to those facilities could occur from electrical sources. Specifically, if the pipeline is
found to be in close proximity to electrical transmission tower footings, ground
cables, or counterpoise, or in other areas where it is reasonable to foresee fault
currents or an unusual risk of lightning, Chevron must protect the pipeline system
against damage from those forces and take protective measures at insulating devices.
3. With respect to the violation of § 195.452 (Item 3), Respondent must reevaluate
and modify its leak detection system for the Rangely, Colorado, to Salt Lake City,
Utah pipeline system to increase the swiftness and sensitivity of leak detection in
order to minimize impacts to high consequence areas.
4. Chevron must complete Items 1, 2, and 3 within 365 days of receipt of this Final
Order.
5. Upon completion of Items 1, 2, and 3, Chevron must submit documentation of all
actions taken on the pipeline system, including a summary report detailing the
remedial actions taken to improve public safety. This report must be submitted to
Chris Hoidal, Director, Western Region, PHMSA, within 6 months of completing
Items 1, 2, and 3.
6. It is requested that Chevron maintain documentation of the safety-improvement
costs associated with fulfilling the terms of this Compliance Order and submit the
total to Chris Hoidal, Director, Western Region, PHMSA. It is requested that 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.
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.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $100,000 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.



6
WARNING ITEM
With respect to Item 4, the Notice alleged a probable violation of Part 195 but did not propose a
civil penalty or compliance order for this item. Therefore, this is considered to be a warning
item. The warning was for:
49 C.F.R. § 195.250 (Item 4) ─ Respondent’s alleged failure to ensure that any
pipe installed underground have at least 12 inches (305 millimeters) of clearance
between the outside of the pipe and the extremity of any other underground
structure.
Chevron presented information in its Response showing that it had taken certain actions to
address the cited item. Accordingly, having considered such information, I find, pursuant to 49
C.F.R. § 190.205, that a probable violation of 49 C.F.R. § 195.250 (Notice Item 4) has occurred
and Respondent has corrected such conditions. If OPS finds a violation of this provision in a
subsequent inspection, Respondent may be subject to future enforcement action.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

## Provenance

- Official: Yes
- Source: <https://primis.phmsa.dot.gov/enforcement-data/case/520105028>
- Source ID: `phmsa-enforcement`
- SHA-256: `97fa18a9ce03c15d002dac898369e66d810834114d9f35e423159c90932d8704`
- Retrieved: 2026-08-20T04:44:44.458Z
- Exported: 2026-08-22T15:01:16.358Z
- Document slug: `phmsa-enforcement-520105028`

### Source metadata

```json
{
  "cpf": "520105028",
  "operator": "CHEVRON PIPE LINE CO",
  "region": "Western",
  "pipelineType": "INTERSTATE LIQUID ONSHORE",
  "caseStatus": "CLOSED",
  "citedSections": [
    "195.250",
    "195.402",
    "195.452(i)(3)",
    "195.575(e)"
  ],
  "dataAsOf": "08/04/2026 12PM",
  "caseDataAsOf": "2026-08-04",
  "attachmentCount": 7,
  "attachments": [
    {
      "name": "520105028_Closure Letter_02232012.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_Closure%20Letter_02232012.pdf",
      "bytes": 27566,
      "category": "agency_document"
    },
    {
      "name": "520105028_Closure Letter_02232012_text.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_Closure%20Letter_02232012_text.pdf",
      "bytes": 9633,
      "category": "agency_document"
    },
    {
      "name": "520105028_FinalOrder_02172011.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_FinalOrder_02172011.pdf",
      "bytes": 336997,
      "category": "agency_document"
    },
    {
      "name": "520105028_FinalOrder_02172011_text.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_FinalOrder_02172011_text.pdf",
      "bytes": 53605,
      "category": "agency_document"
    },
    {
      "name": "520105028_NOPV PCP PCO_11012010.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_NOPV%20PCP%20PCO_11012010.pdf",
      "bytes": 446074,
      "category": "agency_document"
    },
    {
      "name": "520105028_NOPV PCP PCO_11012010_text.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_NOPV%20PCP%20PCO_11012010_text.pdf",
      "bytes": 30754,
      "category": "agency_document"
    },
    {
      "name": "520105028_operator_response_to_notice_12022010.pdf",
      "url": "https://primis.phmsa.dot.gov/enforcement-documents/520105028/520105028_operator_response_to_notice_12022010.pdf",
      "bytes": 699060,
      "category": "party_submission"
    }
  ],
  "extractedAgencyDocumentCount": 3,
  "attachmentPolicy": "Official attachment links are retained. Agency-issued documents may also include a verified local PDF and page-level text representation.",
  "jurisdiction": "US",
  "operatorName": "CHEVRON PIPE LINE CO"
}
```
