{"operation":"document","citation":"CPF 120125009","title":"BUCKEYE PARTNERS, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-04-06","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.54(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120125009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120125009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120125009","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120125009","body":"Notice of Probable Violation involving BUCKEYE PARTNERS, LP. PHMSA's enforcement data identifies the cited regulation as 195.54(b). The case was opened on 2012-04-06 and is reported as closed as of 2012-08-15. Proposed civil penalty: $22,500. Assessed civil penalty: $22,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120125009_Final Order_07272012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125009/120125009_Final%20Order_07272012.pdf\n\n120125009_Final Order_07272012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125009/120125009_Final%20Order_07272012_text.pdf\n\n120125009_NOPV_PCP_04062012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125009/120125009_NOPV_PCP_04062012.pdf\n\n120125009_NOPV_PCP_04062012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125009/120125009_NOPV_PCP_04062012_text.pdf\n\n120125009_Operator Response _05042012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125009/120125009_Operator%20Response%20_05042012.pdf\n\n120125009_Final Order_07272012_text.pdf\n\nJULY 27, 2012\nMr. Clark Smith\nPresident & Chief Executive Officer\nBuckeye Partners, LP\nOne Greenway Plaza\nSuite 600\nHouston, TX 77046\nRe: CPF No. 1-2012-5009\nDear Mr. Smith:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a civil penalty of $22,500. When the civil penalty has been paid, this\nenforcement action will be closed. Service of the Final Order by certified mail is deemed\neffective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Thomas S. (Scott) Collier, Vice President, Performance Assurance & Asset Integrity\nBuckeye Partners, LP, Five TEK Park, 9999 Hamilton Blvd., Breinigsville, PA 18031\nMr. Byron Coy, Director, Eastern Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nBuckeye Partners, LP, ) CPF No. 1-2012-5009\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween September 20, 2011, and March 12, 2012, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the New York State Department of Public Service (NYSDPS), as agent for the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an accident investigation regarding the September 20, 2011 incident that\noccurred at the Buckeye Partners, LP (Buckeye) Auburn Terminal in Auburn, New York. The\nincident occurred due to internal corrosion on a 14-inch diameter tank line (Line 318). Buckeye\nowns more than 100 refined petroleum products terminals with an aggregate storage capacity\nof over 64 million barrels.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated April 6, 2012, a Notice of Probable Violation and Proposed Civil Penalty. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that Buckeye had violated\n49 C.F.R. § 195.54(b) and proposed assessing a civil penalty of $22,500 for the alleged violation.\nBuckeye responded to the Notice by letter dated May 4, 2012 (Response). The company did not\ncontest the allegations of violation but requested that the proposed civil penalty be reduced.\nBuckeye did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.54(b), which states:\n1 See http://www.buckeye.com/AboutUs/tabid/54/Default.aspx (last accessed June 4, 2012).\n\n\n\n2\n§ 195.54 Accident reports.\n(a) Each operator that experiences an accident that is required to be\nreported under § 195.50 shall as soon as practicable, but not later than 30\ndays after discovery of the accident, prepare and file an accident report on\nDOT Form 7000-1, or a facsimile.\n(b) Whenever an operator receives any changes in the information\nreported or additions to the original report on DOT Form 7000-1, it shall\nfile a supplemental report within 30 days.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.54(b) by failing to submit a\nSupplemental Accident Report within 30 days upon receiving changes or additions to the\noriginal report submitted using DOT Form 7000-1. Specifically, Buckeye submitted the original\nAccident Report on October 19, 2011. On or around December 22, 2011, Buckeye received the\nFinal Metallurgical Report from Det Norske Veritas (DNV), which identified the potential cause\nof the leak of the 14-inch diameter pipe. In accordance with § 195.54(b), Buckeye should have\nsubmitted a supplemental accident report within 30 days of receiving this new information.\nBuckeye did not submit the Supplemental Accident Report until March 20, 2012.\nIn its Response, Buckeye acknowledged that it did not file a Supplemental Accident Report\nwithin 30 days of receiving the Final Metallurgical Report. However, Buckeye stated that on\nDecember 29, 2011, the company submitted the Final Metallurgical Report to the NYSDPS,\nPHMSA’s agent. Since Buckeye notified the regulatory agency acting for PHMSA that there\nwas new information, Buckeye requested a reduction in the proposed civil penalty.\nI will analyze the civil penalty argument in the Assessment section below. In terms of the\nallegation of violation, Buckeye was required to submit the Supplemental Accident Report\nwithin 30 days of its receipt of changes or additions to the original report but failed to do so.\nTherefore, I find that Buckeye violated 49 C.F.R. § 195.54(b) by failing to submit the required\nSupplemental Accident Report.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under\n49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\n\n\n\n3\nThe Notice proposed a total civil penalty of $22,500 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $22,500 for Respondent’s violation of\n49 C.F.R. § 195.54(b), for failing to submit a Supplemental Accident Report within 30 days of\nreceiving new information. In its Response, Buckeye argues that a penalty reduction is\nappropriate since it notified PHMSA’s agent, NYSDPS, that it had received a copy of the Final\nMetallurgical Report and provided the state with that information. In addition, Buckeye stated\nthat it did file its Supplemental Accident Report, albeit late, with PHMSA and revised its internal\nprocess to ensure that future reports are filed within the required timeframe.\nThe civil penalty amount is based on the civil penalty assessment factors listed in\n49 C.F.R. § 190.225, including, but not limited to, culpability, gravity, duration of the violation,\nand prior enforcement history of the operator. As stated in the Violation Report, the non-\ncompliance posed a minimal effect on pipeline safety since it was a paperwork violation. The\nViolation Report further noted that the violation was discovered by PHMSA, not Buckeye, and\ncontinued for a period of approximately 56 days. The report was due on approximately January\n23, 2012, but was not filed until March 20, 2012.\nWhile it may seem that the gravity of the violation is lessened because the metallurgical report\nwas provided to the NYSDPS, Buckeye is required by regulation to submit a Supplemental\nAccident Report to PHMSA. PHMSA needs this information to conduct failure analyses and\ntake appropriate action to address critical safety issues arising out of accidents. Without the\nreceipt of accurate and timely accident reports, PHMSA cannot effectively carry out its\ntransportation safety mission. Therefore, having reviewed the penalty factors and the facts of\nthis case, I find that the proposed civil penalty of $22,500 is justified. Accordingly, I assess\nRespondent a civil penalty of $22,500.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8893.\nFailure to pay the $22,500 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\n\n\n\n4\nwill accept petitions received no later than 20 days after receipt of service of this Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of\nany civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all\nother terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nThe terms and conditions of this Final Order are effective upon receipt of service.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11337}