{"operation":"document","citation":"CPF 120125010","title":"BUCKEYE PARTNERS, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-06-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.440(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120125010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120125010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120125010","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120125010","body":"Notice of Probable Violation involving BUCKEYE PARTNERS, LP. PHMSA's enforcement data identifies the cited regulation as 195.440(c). The case was opened on 2012-06-11 and is reported as closed as of 2013-04-05. Proposed civil penalty: $17,500. Assessed civil penalty: $17,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120125010_Closure Letter_04052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_Closure%20Letter_04052013.pdf\n\n120125010_Closure letter_04052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_Closure%20letter_04052013_text.pdf\n\n120125010_Final Order_10172012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_Final%20Order_10172012.pdf\n\n120125010_Final Order_10172012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_Final%20Order_10172012_text.pdf\n\n120125010_NOPV-PCP-PCO_06112012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_NOPV-PCP-PCO_06112012_text.pdf\n\n120125010_NOPV_PCP_PCO_06112012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_NOPV_PCP_PCO_06112012.pdf\n\n120125010_Operator Response_07102012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120125010/120125010_Operator%20Response_07102012.pdf\n\n120125010_Closure letter_04052013_text.pdf\n\nU.S. Department Of Transportation Pipeline and 609.989.2171\nHazardous Materials\nSafety Administration\n820 Bear Tavern Road, Suite 103\nWest Trenton, NJ 08628\nOVERNIGHT EXPRESS MAIL\nApril 05, 2013\nCarl Ostach\nVice President, Domestic Operations\nBuckeye Partners, L.P.\nFive TEK Park\n9999 Hamilton Blvd,\nBreinigsville, PA 18031\nCPF 1-2012-5010\nDear Mr. Ostach:\nOn October 17, 2012, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice, Office of Pipeline Safety (OPS), issued to Buckeye Partners, L.P. (Buckeye) a Final\nOrder in the above-referenced case. This Order included a Compliance Order and Civil Penalty\nassessment.\nWe have received your letter dated January 18, 2013, wherein you summarized the actions taken\nto comply with this Order, along with the documents that were enclosed with it. Based on our\nreview of the documents that you had provided and confirmation of payment of the civil penalty,\nwhich we received on July 12, 2012, it has been determined that you have complied with the\nterms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case.\nThank you for your cooperation in this matter.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120125010_NOPV-PCP-PCO_06112012_text.pdf\n\nU.S. Department 820 Bear Tavern Road, Suite 103\nOf Transportation West Trenton, NJ 08628\nPipeline and 609.989.2171\nHazardous Materials\nSafety Administration\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS MAIL\nJune 11, 2012\nMr. Thomas S. Collier,\nVP, Performance Assurance & Asset Integrity\nBuckeye Partners, L.P.\nFive TEK Park\n9999 Hamilton Boulevard\nBreinigsville, PA 18031\nCPF 1-2012-5010\nDear Mr. Collier:\nFrom December 13 – 17, 2010, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Buckeye Partners,\nL.P.’s (Buckeye) Public Awareness Program in Breinigsville, Pennsylvania.\nAs a result of the inspection, it appears that you have committed a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolation is:\n1. §195.440 Public awareness\n(c) The operator must follow the general program recommendations, including baseline\nand supplemental requirements of API RP 1162, unless the operator provides justification\nin its program or procedural manual as to why compliance with all or certain provisions of\nthe recommended practice is not practicable and not necessary for safety.\nBuckeye failed to follow the general program recommendation, including specific program\ndocumentation and recordkeeping requirements of American Petroleum Institute (API) Recommended\nPractice (RP) 1162.\nBuckeye did not document the requirements prescribed in Section 7.1(g) of API RP 1162.\n\n\n\nCPF 1-2012-5010\nBuckeye did not document the criteria for program improvement based on the results of the evaluation in\nits Public Education Program Manual, All Sections Issued: 5/06, Section K- Program Evaluation. There\nwas no documentation on how Buckeye determines the changes and/or modifications to its program based\non the results and findings of its effectiveness evaluation.\nFurthermore, Buckeye did not record key program elements to demonstrate the level of implementation.\nPursuant to Section 7.2 of API RP 1162, “[r]ecord keeping should include... c. [a]ll program evaluations,\nincluding current results, follow-up actions and expected results.”\nAccording to a Buckeye representative, a four-year effectiveness evaluation was held on June 24, 2010\nand participants discussed effectiveness ideas. A copy of the meeting notes were provided to a PHMSA\nrepresentative. The meeting notes consisted of random topics and had no record of findings, conclusions,\nor results. Also, there was no documentation on whether or not program improvement(s) would be\nimplemented. Additionally, Buckeye’s Public Education Program Manual, All Sections Issued: 5/06,\nSection K- Program Evaluation provided a list of questions to be used in the evaluation process; however,\nanswers transcribed into the meeting notes had insufficient details to provide meaningful conclusions.\nTherefore, Buckeye failed to demonstrate compliance with the specific program documentation and\nrecordkeeping requirements of API RP 1162.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for each\nviolation for each day the violation persists up to a maximum of $1,000,000 for any related series of\nviolations. The Compliance Officer has reviewed the circumstances and supporting documentation\ninvolved in the above probable violation and has recommended that you be preliminarily assessed a civil\npenalty of $17,500 as follows:\nItem number PENALTY\n1 $ 17,500\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Buckeye. Please refer to the Proposed\nCompliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be advised that\nall material you submit in response to this enforcement action is subject to being made publicly available.\nIf you believe that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an explanation of\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). If\nyou do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to\ncontest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to\nfind facts as alleged in this Notice without further notice to you and to issue a Final Order.\n120125010_NOPV_PCP-PCO_06112012 Page 2 of 4\n\n\n\nCPF 1-2012-5010\nPlease submit all correspondence in this matter to Byron Coy, PE, Director, PHMSA Eastern Region, 820\nBear Tavern Road, Suite 103, W. Trenton, NJ 08628. Please refer to CPF 1-2012-5010 on each\ndocument you submit, and please whenever possible provide a signed PDF copy in electronic format.\nSmaller files may be emailed to Byron.Coy@dot.gov. Larger files should be sent on a CD accompanied\nby the original paper copy to the Eastern Region Office.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n120125010_NOPV_PCP-PCO_06112012 Page 3 of 4\n\n\n\nCPF 1-2012-5010\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Buckeye Partners, L.P. (Buckeye) a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Buckeye with\nthe pipeline safety regulations:\n1. In regards to Item Number 1 of the Notice pertaining to Buckeye’s failure to follow the\ngeneral program recommendation, including specific program documentation and\nrecordkeeping requirements of American Petroleum Institute (API) Recommended\nPractice (RP) 1162, Buckeye shall review its June 24, 2010 four-year effectiveness\nevaluation meeting notes. Based on that review, Buckeye must provide the following:\n• Documentation of criteria for program improvement based on the results of the\nevaluation.\n• Records of current results, follow-up actions, and expected results.\nThen, Buckeye must perform the following in reference to the above:\na) If any improvement(s) are identified, Buckeye must implement those\nimprovement(s) in accordance with its written Public Awareness Program; or\nb) Buckeye must provide justification why improvement(s) have not been or will not\nbe implemented.\n2. Buckeye must provide a summary report that must include documentation and records\nmentioned in Item 1 (above), and a timeframe when improvements will be\nimplemented, if any, within 90 days after receipt of a Final Order.\n3. It is requested (not mandated) that Buckeye maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to Byron Coy, Director, Eastern Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1) total\ncost associated with preparation/revision of plans, procedures, studies and analyses,\nand 2) total cost associated with replacements, additions and other changes to pipeline\ninfrastructure.\n120125010_NOPV_PCP-PCO_06112012 Page 4 of 4\n\n120125010_Final Order_10172012_text.pdf\n\nOCTOBER 17, 2012\nMr. Clark Smith\nPresident & Chief Executive Officer\nBuckeye Partners, L.P.\nOne Greenway Plaza\nSuite 600\nHouston, TX 77046\nRe: CPF No. 1-2012-5010\nDear Mr. Smith:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation, specifies actions that need to be taken by Buckeye Partners, L.P to comply with the\npipeline safety regulations, and assesses a civil penalty of $17,500. This is to acknowledge\nreceipt of payment of the full penalty amount, by wire transfer, dated July 12, 2012. When the\nterms of the Compliance Order have been completed, as determined by the Director, Eastern\nRegion, this enforcement action will be closed. Service of the Final Order by certified mail is\ndeemed effective 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. Collier, Vice President, Performance Assurance & Asset Integrity,\nBuckeye Partners, L.P. Five TEK Park, 9999 Hamilton Boulevard, Breinigsville, PA\n18031\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____________________________________\n)\nIn the Matter of )\n)\nBuckeye Partners, L.P., ) CPF No. 1-2012-5010\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween December 13 and 17, 2010, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities, records, and Public\nAwareness Program of Buckeye Partners, L.P. (BPL or Respondent) in Breinigsville, PA. BPL\nowns and operates approximately 6,000 miles of pipelines transporting refined petroleum\nproducts and highly volatile liquids.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated June 11, 2012, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that BPL had violated 49 C.F.R. § 195.440(c) and proposed assessing a civil\npenalty of $17,500 for the alleged violation. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violation.\nBPL responded to the Notice by letter dated July 10, 2012 (Response). The company did not\ncontest the allegation of violation but stated it intended to comply with the proposed compliance\norder and pay the proposed civil penalty. Subsequently, BPL paid the proposed civil penalty of\n$17,500, as provided in 49 C.F.R. § 190.227. Payment of the penalty serves to close the case\nwith prejudice to Respondent.\nFINDING OF VIOLATION\nIn its Response, BPL did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(c), which states:\n1 http://www.buckeye.com/BusinessOperations/tabid/56/Default.aspx and\nhttp://www.buckeye.com/AboutUs/tabid/54/Default.aspx (last accessed on June 22, 2012).\n\n\n\n2\n§ 195.440 Public awareness.\n(c) The operator must follow the general program recommendations,\nincluding baseline and supplemental requirements of API RP 1162, unless\nthe operator provides justification in its program or procedural manual as\nto why compliance with all or certain provisions of the recommended\npractice is not practicable and not necessary for safety.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(c) by failing to follow the\nprogram recommendations of American Petroleum Institute (API) Recommended Practice (RP)\n1162, including baseline and supplemental requirements. Specifically, the Notice alleged that\nBPL failed to follow and implement a public awareness program (PAP) meeting the general\nprogram recommendations set forth in API RP 1162, including specific program documentation\nand recordkeeping requirements, and failed to evaluate its PAP’s effectiveness in accordance\nwith company procedures.\nThe Notice stated that BPL failed to document key program elements of its PAP to demonstrate\nthe level of implementation. Pursuant to Section 7.2 of API RP 1162, “[r]ecord keeping should\ninclude... [a]ll program evaluations, including current results, follow-up actions and expected\nresults.” PHMSA’s investigation also revealed that Buckeye did not document the criteria for\nprogram improvement based on the results of the evaluation and its Public Education Program\nManual, All Sections Issued: 5106, Section K- Program Evaluation.\n2 PHMSA found no\ndocumentation on how Buckeye addressed changes and/or modifications to its program based on\nthe results and findings of its effectiveness evaluation.\nIn its Response, Respondent acknowledged that it should have documented the results of its\nprogram effectiveness review in a manner that better met the requirements of Section K of its\nPublic Education Program Manual and API RP 1162.3\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\n49 C.F.R. § 195.440(c) by failing to follow and implement a public awareness program that\nmeets the general program recommendations set forth in API RP 1162, including specific\nprogram documentation and recordkeeping requirements, and failing to evaluate its PAP’s\neffectiveness in accordance with company procedures.\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\n2 Violation Report, Exhibit A.\n3 Response.\n\n\n\n3\nrelated series of violations.4 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.\nThe Notice proposed a total civil penalty of $17,500 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $17,500 for Respondent’s violation of\n49 C.F.R. § 195.440(c), for failing to follow and implement a public awareness program meeting\nthe general program recommendations set forth in API RP 1162, including specific program\ndocumentation and recordkeeping requirements, and failing to evaluate its PAP’s effectiveness in\naccordance with company procedures. BPL neither contested the allegation nor presented any\nevidence or argument justifying a reduction in or elimination of the proposed penalty. BPL is\nfully culpable for the violation. Respondent was cognizant of the requirement to follow the\nprogram recommendations of API RP 1162, including baseline and supplemental requirements.\nRespondent acknowledged its failure to comply with the requirements of Section K of its Public\nEducation Program Manual and API RP 1162. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $17,500 for violation of\n49 C.F.R. § 195.440(c), which has already been paid by Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 195.440(c). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations:\n1. With respect to the violation of § 195.440(c) (Item 1), Respondent must review\nits June 24, 2010-Public Awareness Program Review meeting notes regarding its\nprogram effectiveness evaluation and document the criteria for its program\nimprovement, and record current results, follow-up actions, and expected results.\nIf the need for improvements is identified, Buckeye Partners, L.P. must\nimplement those improvements in accordance with its written Public Awareness\nProgram or provide justification why the improvements have not been or will not\nbe implemented.\n4 Effective January 3, 2012, the maximum administrative civil penalties for violations of the federal pipeline safety\nregulations were doubled to $200,000 per violation with a maximum of $2,000,000 for a related series of violations\n(The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (Pub. L. 112-90)). Because the violations\nin this case occurred prior to the increase, the higher maximums do not apply.\n\n\n\n4\n2. Within 90 days after receipt of this Final Order, Buckeye Partners, L.P. must\nsubmit a summary report detailing the actions taken regarding the above Item,\nincluding a timeframe for implementation, supporting documentation and records,\nto the Director, Eastern Region, Pipeline and Hazardous Materials Safety\nAdministration, 820 Bear Tavern Rd, Suite 103, West Trenton, NJ 08628. Please\nreference CPF# 1-2012-5010 in the title of the summary report.\n3. It is requested (not mandated) that Buckeye Partners, L.P. maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Byron Coy, Director, Eastern Region,\nPipeline and Hazardous Materials Safety Administration. It is requested that\nthese costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions, and other changes to pipeline\ninfrastructure\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":21856}