BUCKEYE PARTNERS, LP — Notice of Probable Violation

case documentOfficial PDF120135026_NOPV_PCO_11192013.pdf#

case documentOfficial PDF120135026_NOPV_PCO_11192013_text.pdf#

party submissionOfficial PDF120135026_Operator Response_12172013.pdf#

120135026_Closure Letter_07142016_text.pdf, page 1Official PDFOVERNIGHT EXPRESS DELIVERY July 14, 2016 T. Scott Collier VP, Performance Assurance & Asset Integrity Buckeye Partners, L.P. Five TEK Park 9999 Hamilton Boulevard Breinigsville, PA 18031 CPF 1-2013-5026 Dear Mr. Collier: On October 24, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Buckeye Partners, L.P. (Buckeye) a Final Order in the above-referenced case. This Order included a Compliance Order. Based on our review of the documentation that Buckeye provided, it has been determined that Buckeye has 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, Byron Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration#

120135026_Final Order_10242014_text.pdf, page 1Official PDFOCTOBER 24, 2014 Mr. Clark C. Smith President & Chief Executive Officer Buckeye Partners, LP One Greenway Plaza Suite 600 Houston, TX 77046 Re: CPF No. 1-2013-5026 Dear Mr. Smith: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation, issues warnings, and specifies actions that need to be taken by Buckeye Partners, LP, to comply with the pipeline safety regulations. When the terms of the compliance order have been completed, as determined by the Director, Eastern 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. Byron Coy, PE, Director, Eastern Region, OPS Mr. Thomas S. Collier, Vice President, Performance Assurance & Asset Integrity, Buckeye Partners, LP, Five TEK Park, 9999 Hamilton Boulevard, Breinigsville, PA 18031 CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

120135026_Final Order_10242014_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Buckeye Partners, LP, ) CPF No. 1-2013-5026 ) Respondent. ) ____________________________________) FINAL ORDER From July 30, 2012 through August 3, 2012, 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 on-site pipeline safety inspection of the facilities and records of Buckeye Partners, LP (Buckeye or Respondent) in the Portland, Maine area. Buckeye operates approximately 6,164 miles of pipelines in the Eastern and Midwestern U.S.1 As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated November 19, 2013, a Notice of Probable Violation and Proposed Compliance Order (Notice), which also included warning items pursuant to 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Buckeye had violated 49 C.F.R. § 195.575(c) and proposed ordering Respondent to take certain measures to correct the alleged violation. The warning items required no further action, but warned the operator to correct the probable violation or face possible enforcement action. Buckeye responded to the Notice by letter dated December 17, 2013 (Response). The company did not contest the allegations of violation but provided information concerning the corrective actions it had taken. Respondent did not request a hearing and therefore has waived its right to one. FINDING OF VIOLATION In its Response, Buckeye did not contest the allegation in the Notice that it violated 49 C.F.R. Part 195, as follows: 1 See Pipeline Safety Violation Report, (Nov. 19, 2013) (on file with PHMSA), at 1.#

120135026_Final Order_10242014_text.pdf, page 32 Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.575(c), which states: § 195.575 Which facilities must I electrically isolate and what inspections, tests, and safeguards are required? (a)… (c) You must inspect and electrically test each electrical isolation to assure the isolation is adequate. The Notice alleged that Respondent violated 49 C.F.R. § 195.575(c) by failing to demonstrate through inspection and electrical tests that electrical isolation is adequate. Specifically, the Notice alleged that at the time of the inspection, Buckeye’s records indicated that there were 97 cased crossings in the South Portland area without test leads installed. In its Response, Buckeye stated that it believed it was responding in a reasonable manner to correct the lack of monitoring facilities on this system but 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(c) by failing to demonstrate through inspection and electrical tests that electrical isolation is adequate. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 195.575(c). 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: 1. With respect to the violation of § 195.575(c) (Item 1), Respondent must install test leads at all of the predetermined cased crossing locations listed on its spreadsheet entitled So. Portland List of Pipeline Road Casings 8/10/2012. 2. Respondent must submit records or documentation that demonstrates completion of the above item within 60 days of receipt of this Order to Byron Coy, Director, Eastern Region, U.S. Department of Transportation, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. 3. It is requested (not mandated) that Respondent maintain documentation of the safety improvement costs associated with fulfilling this compliance order and submit the total to the Director. 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 costs associated with replacements, additions, or other changes to physical pipeline facilities.#

120135026_Final Order_10242014_text.pdf, page 43 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 $200,000 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. WARNING ITEMS With respect to Items 2 and 3, the Notice alleged probable violations of Part 195 but did not propose a civil penalty or compliance order for these items. Therefore, these are considered to be warning items. The warnings were for: 49 C.F.R. § 195.573(a)(1) (Item 2) ─ Respondent’s alleged failure to conduct cathodic protection testing on protected pipelines at intervals not exceeding 15 months; and 49 C.F.R. § 195.402(a) (Item 3) ─ Respondent’s alleged failure to record the serial numbers of the reference electrodes in accordance with its written procedures during an annual cathodic protection survey. Buckeye presented information in its Response showing that it had taken certain actions to address the cited items. If OPS finds a violation of these items 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#