{"operation":"document","citation":"CPF 120131018","title":"CENTRAL NEW YORK OIL AND GAS CO LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-09-03","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(c), 192.603(b), 192.605(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120131018.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120131018.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120131018","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120131018","body":"Notice of Probable Violation involving CENTRAL NEW YORK OIL AND GAS CO LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(c),  192.603(b),  192.605(e). The case was opened on 2013-09-03 and is reported as closed as of 2014-03-07. Proposed civil penalty: $26,400. Assessed civil penalty: $26,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120131018_Final Order_03072014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131018/120131018_Final%20Order_03072014.pdf\n\n120131018_Final Order_03072014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131018/120131018_Final%20Order_03072014_text.pdf\n\n120131018_NOPV PCP_09032013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131018/120131018_NOPV%20PCP_09032013.pdf\n\n120131018_NOPV PCP_09032013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131018/120131018_NOPV%20PCP_09032013_text.pdf\n\n120131018_Final Order_03072014_text.pdf\n\nMARCH 7, 2014\nMr. Robert Phillips\nPresident\nCrestwood Midstream Partners, LP\n700 Louisiana St., Suite 2060\nHouston, Texas 77002\nRe: CPF No. 1-2013-1018\nDear Mr. Phillips:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nCentral New York Oil & Gas Company, LLC. It makes findings of violation and assesses a civil\npenalty of $26,400. This is to acknowledge receipt of payment of the full penalty amount, by\nwire transfer dated October 17, 2013. This enforcement action is now closed. Service of the\nFinal Order by certified mail is deemed effective upon the date of mailing, or as otherwise\nprovided 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. Byron Coy, P.E., Director, Eastern Region, OPS\nMr. Barry Cigich, Vice President Operations and Engineering, Crestwood Midstream\nPartners, LP, Two Brush Creek Blvd., Suite 200, Kansas City, Missouri 64112\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 )\n)\n)\nCentral New York Oil & Gas Co., LLC, )\nRespondent. )\n____________________________________)\n) CPF No. 1-2013-1018\nFINAL ORDER\nOn August 13, 2012, pursuant to 49 U.S.C. § 60117, representatives of the New York State\nDepartment of Public Service, acting as agents for the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety\ninspection of the facilities and records of Central New York Oil & Gas Company, LLC (CNYOG\nor Respondent), in Oswego, New York. CNYOG, a wholly-owned subsidiary of Crestwood\nMidstream Partners, LP, is a natural gas storage and pipeline company operating primarily in the\nNortheast.\n1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated September 3, 2013, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance with\n49 C.F.R. § 190.207, the Notice proposed finding that CNYOG had violated 49 C.F.R.\n§§ 192.605, 192.603 and 192.465 and assessing a civil penalty of $26,400 for the alleged\nviolations. The warning item required no further action but warned the operator to correct the\nprobable violation or face possible enforcement action.\nOn October 17, 2013, Respondent paid the entire proposed penalty, via wire transfer, as provided\nunder 49 C.F.R. § 190.227. Payment of the penalty authorizes the Associate Administrator,\nwithout further notice, to make findings of violation and to issue a Final Order under § 190.213.\nFINDINGS OF VIOLATION\nCNYOG did not contest the allegations in the Notice that it violated 49 C.F.R. Part 192, as\nfollows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(e), which states:\n1 See, http://www.crestwoodlp.com/index.asp (last viewed January 17, 2014).\n\n\n\n2\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a\nmanual or written procedures for conducting operations and maintenance\nactivities and for emergency response. For transmission lines, the manual\nmust also include procedures for handling abnormal operations. This must\nbe reviewed and updated by the operator at intervals not exceeding 15\nmonths, but at least once each calendar year. This manual must be\nprepared before operations of a pipeline system commence. Appropriate\nparts of the manual must be kept at locations where operations and\nmaintenance activities are conducted…\n(e) Surveillance, emergency response, and accident investigation. The\nprocedures required by §§ 192.613(a), 192.615 and 192.617 must be\nincluded in the manual required by paragraph (a) of this section.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(e) by failing to follow its own\nwritten procedures for documenting monthly training meetings on emergency response, as\noutlined in 49 C.F.R. § 192.615. Specifically, the Notice alleged that CNYOG failed to follow\nits own Operating and Maintenance (O&M) Procedure 506, which requires monthly emergency\nresponse training meetings for all employees assigned to a particular area and that such meetings\nbe documented by the employee who conducted the meeting. The Notice alleged that a review\nof CNYOG’s records from January 1, 2010, through August 15, 2012, found no records of the\nmonthly meetings.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.605(e) by failing to follow its\nown written procedures for documenting monthly emergency response training meetings.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.603(b), which states:\n§ 192.603 General provisions.\n(a) …\n(b) Each operator shall keep records necessary to administer the\nprocedures established under § 192.605.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep records\nnecessary to administer the procedures required under § 192.605, regarding emergency response\ntraining, as outlined in 49 C.F.R. § 192.615. Specifically, the Notice alleged that CNYOG failed\nto keep records of the annual training it provided to police officers in 2010 and 2011.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 192.603(b) by failing to keep\nrecords of the annual emergency response training it provided to police officers in 2010 and\n2011, as outlined in 49 C.F.R. § 192.615.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\n\n\n\n3\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.2 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; and any effect\nthat the penalty may have on its ability to continue doing business; and the good faith of\nRespondent in attempting to comply with the pipeline safety regulations. In addition, I may\nconsider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a total\ncivil penalty of $26,400 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $8,900 for Respondent’s violation of\n49 C.F.R. § 192.605(e), for failing to follow its own written procedures for documenting\nmonthly emergency response training meetings. Specifically, the Notice alleged that CNYOG\nfailed to follow its O&M Procedure 506, which requires monthly training meetings for all\nemployees assigned to the area and that the training be documented by the employee who\nconducted the meeting. CNYOG paid the proposed penalty, which authorizes PHMSA to make\na finding of violation and impose the proposed penalty, as provided under 49 C.F.R. § 190.208.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $8,900 for violation of 49 C.F.R. § 192.605(e).\nItem 2: The Notice proposed a civil penalty of $17,500 for Respondent’s violation of\n49 C.F.R. § 192.603(b), for failing to keep records necessary to administer the procedures under\n§ 192.605. Specifically, the Notice alleged that CNYOG failed to keep records of the annual\nemergency response training it provided to police officers in 2010 and 2011. CNYOG paid the\nproposed penalty, which authorizes PHMSA to make a finding of violation and impose the\nproposed penalty, as provided under 49 C.F.R. § 190.208. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $17,500 for\nviolation of 49 C.F.R. § 192.603(b).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $26,400, which amount has\nalready been paid in full.\n2 The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, Pub. L. No. 112-90, § 2(a)(1), 125 Stat.\n1904, January 3, 2012, increased the civil penalty liability for violating a pipeline safety standard to $200,000 per\nviolation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.\n\n\n\n4\nWARNING ITEM\nWith respect to Item 3, the Notice alleged probable violations of Part 192 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n49 C.F.R. § 192.465(c) (Item 3) ─ Respondent’s alleged failure to perform timely\ncorrosion control monitoring, specifically certain rectifier inspections, in 2011\nand 2012.\nCNYOG presented information in its Response showing that it had taken certain actions to\naddress the cited item. If OPS finds a violation of this provision in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this Final Order [CPF No. 1-2013-1018] are effective upon service\nin accordance with 49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":10957}