{"operation":"document","citation":"CPF 120145008","title":"IMTT-BAYONNE — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-12-22","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.404(a)(3), 195.505.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120145008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120145008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120145008","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120145008","body":"Notice of Probable Violation involving IMTT-BAYONNE. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.404(a)(3),  195.505. The case was opened on 2014-12-22 and is reported as closed as of 2019-07-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120145008_Closure Letter_07022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Closure%20Letter_07022019.pdf\n\n120145008_Closure Letter_07022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Closure%20Letter_07022019_text.pdf\n\n120145008_Final Order_11202015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Final%20Order_11202015.pdf\n\n120145008_Final Order_11202015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Final%20Order_11202015_text.pdf\n\n120145008_NOPV_PCO_12222014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_NOPV_PCO_12222014.pdf\n\n120145008_NOPV_PCO_12222014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_NOPV_PCO_12222014_text.pdf\n\n120145008_Operator Response to Notice_01152015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Operator%20Response%20to%20Notice_01152015.pdf\n\n120145008_Closure Letter_07022019_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJuly 2, 2019\nMr. Christopher Frost\nChief Executive Officer\nMacquarie Infrastructure Corporation\n125 West 55th St, Level 15\nNew York, NY 10019\nCPF 1-2014-5008\nDear Mr. Frost:\nDuring a 2013 inspection, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of Title 49 of\nthe United States Code, inspected the IMTT-Bayonne Company’s (Respondent) procedures and\nrecords in Bayonne, New Jersey.\nAs a result of the inspection, Respondent was issued a Notice of Probable Violation (NOPV) and\nProposed Compliance Order on December 22, 2014. Following enforcement proceedings, a Final\nOrder was issued on November 20, 2015.\nPursuant to the Final Order, Respondent submitted documentation showing it took certain actions\nto ensure compliance with the terms of the Order on April 23, 2018, and October 1, 2018.\nBased on our review of the documentation, it appears that the inadequacies outlined in this NOPV\nhave been corrected.\nThis letter is to inform you no further action is necessary, and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120145008_Final Order_11202015_text.pdf\n\nNovember 20, 2015\nMr. James Hooke\nChief Executive Officer\nMacquarie Infrastructure Corporation\n125 West 55th St, Level 15\nNew York, NY 10019\nRe: CPF No. 1-2014-5008\nDear Mr. Hooke:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nIMTT-Bayonne. It makes findings of violation and specifies actions that need to be taken by\nIMTT-Bayonne to comply with the pipeline safety regulations. When the terms of the\ncompliance order have been completed, as determined by Mr. Byron Coy, 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. Byron Coy, P.E., Director, Eastern Region, Office of Pipeline Safety\nMr. Richard Fisette, Terminal Manager, International-Matex Tank Terminals (IMTT)-\nBayonne, 250 East 22nd Street, Bayonne, NJ 07002\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 )\nIMTT-Bayonne, ) CPF No. 1-2014-5008\na subsidiary of Macquarie Infrastructure Corporation, )\n)\n)\n)\nRespondent. )\n_______________________________________________ )\nFINAL ORDER\nOn April 29, 2014, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted a meeting with representatives of IMTT-Bayonne (IMTT-Bayonne or Respondent) in\nBayonne, New Jersey (Facilities). IMTT-Bayonne is a subsidiary of Macquarie Infrastructure\nCorporation, which owns and operates 12 bulk liquid storage facilities in North America,\nincluding its 600-acre facility in Bayonne, NJ.1\nAs a result of the April 29, 2014 meeting, by letter dated December 22, 2014, the Director,\nEastern Region, OPS (Director), issued a Notice of Probable Violation and Proposed Compliance\nOrder (Notice) to Respondent.2 In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that IMTT-Bayonne had violated 49 C.F.R. §§ 195.402, 195.404\n, and 195.505, and ordered Respondent to take certain measures to correct the alleged violations.\nIMTT-Bayonne responded to the Notice by letter dated January 15, 2015 (Response). The\ncompany did not contest the allegations of violation, but requested changes to the proposed\ncompliance order. Respondent did not request a hearing and therefore has waived its right to\none.\n1 About IMTT, http://www.imtt.com/index.php?page=About-IMTT (last visited July 8, 2015); see also IMTT –\nNew York Harbor/New Jersey, http://www.imtt.com/index.php?page=bayonne (last visited July 8, 2015).\n2 See Notice at 1. Prior to 2013, it appears that the Facilities had not been inspected by PHMSA. In 2013, upon the\nrequest of a PHMSA representative, a series of meetings were held between PHMSA and IMTT for the purpose of\ndetermining the jurisdictional status of the Facilities. Respondent thereupon undertook an analysis to ascertain\nwhether its Facilities were regulated pipeline facilities under PHMSA jurisdiction. On April 29, 2014, IMTT\ninformed PHMSA that it had determined that several of its pipeline segments and breakout tanks, including the\nFacilities, were indeed under PHMSA jurisdiction.\n\n\n\nCPF No. 1-2014-5008\nPage 2\nFINDINGS OF VIOLATION\nIn its Response, IMTT-Bayonne did not contest the allegations in the Notice that it violated\n49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and\nemergencies. This manual shall be reviewed at intervals not exceeding 15\nmonths, but at least once each calendar year, and appropriate changes\nmade as necessary to insure that the manual is effective. This manual shall\nbe prepared before initial operations of a pipeline system commence, and\nappropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to prepare and\nfollow written procedures for conducting normal operations, maintenance activities, abnormal\noperations, and emergencies. Specifically, the Notice alleged that during the April 29, 2014\nmeeting, IMTT-Bayonne could not demonstrate it had developed or followed procedures as\nrequired under § 195.402(a) for the Facilities. On this date, IMTT-Bayonne only produced a\nPower Point presentation that included information on its preliminary jurisdictional analysis\nresults, but did not show it had prepared or followed procedures for the Facilities, as required by\n§ 195.402(a).\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. § 195.402(a) by failing to develop or\nfollow a manual of written procedures for the Facilities.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(3), which states:\n§ 195.404 Maps and records.\n(a) Each operator shall maintain current maps and records of its\npipeline systems that include at least the following information…\n(3) The maximum operating pressure of each pipeline....\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(3) by failing to maintain\ncurrent records demonstrating how the maximum operating pressure (MOP) of its jurisdictional\npipeline segments had been determined. Specifically, Respondent allegedly failed to provide\ncurrent documentation that validated the process for calculating the MOP for its jurisdictional\npipeline segments.\nIMTT-Bayonne did not contest this allegation of violation. Accordingly, based upon a review of\n\n\n\nCPF No. 1-2014-5008\nPage 3\nall of the evidence, I find that Respondent violated 49 C.F.R. § 195.404(a)(3) by failing to\nmaintain current records of its pipeline system that include the MOP of each pipeline.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.505, which states:\n§ 195.505 Qualification program.\nEach operator shall have and follow a written qualification program.\nThe program shall include provisions to…\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.505 by failing to maintain and\nfollow a written qualification program. Specifically, the Notice alleged that IMTT-Bayonne\ncould not demonstrate that it either had, or followed, a written qualification program for\npersonnel performing covered tasks on its pipeline system.\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. § 195.505 by failing to maintain and\nfollow a written qualification program.\nThese findings of a violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for\nviolations of 49 C.F.R. §§ 195.402(a), 195.404(a)(3), and 195.505, respectively. While\nRespondent did not contest the allegations of violation as stated in the Notice, the company did\nrequest changes to the proposed compliance order. IMTT-Bayonne requested altering four of the\ndeadlines listed in the compliance order, as well as clarifying actions it was required to take in\nproviding a map of its jurisdictional pipeline system. IMTT-Bayonne did not state a rationale as\nto why PHMSA should incorporate these suggested changes, but submitted information showing\nit had taken steps to meet the requirements set forth in the proposed compliance order.\nUpon review of Respondent’s request, I find that the compliance order should be issued as\nproposed in the Notice. While IMTT-Bayonne has already taken certain steps to comply with\nthe proposed order, it has not asserted any reason as to why PHMSA should modify it or why the\ndeadlines set forth therein should be modified. If necessary, Respondent may request extensions\nto comply with the requirements set forth below. Further, if necessary, PHMSA may request\nclarification of the jurisdictional pipeline system map that IMTT-Bayonne is required to provide\nunder the compliance order.\nUnder 49 U.S.C. § 60118(a), each person who engages in the transportation of gas, hazardous\nliquids, or who owns or operates a pipeline facility is required to comply with the applicable\nsafety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n\n\n\nCPF No. 1-2014-5008\nPage 4\n1. 2. With respect to Item Number 1 of the Notice pertaining to IMTT-Bayonne’s\nfailure to prepare and follow for each pipeline system a manual of written\nprocedures for conducting normal operations and maintenance activities, and\nhandling abnormal operations and emergencies, IMTT-Bayonne shall complete at\na minimum, the following actions:\na. Provide a current map of the jurisdictional pipeline system that includes\ninformation on the location and identification of all assets, within 30 days\nof issuance of the Final Order;\nb. Provide current piping and instrumentation diagrams showing the\njurisdictional components of the pipeline system, within 30 days of\nissuance of the Final Order;\nc. Provide an updated “Break-out Tank Listing” of all jurisdictional breakout\ntanks, within 30 days of issuance of the Final Order;\nd. Establish and implement a manual of written procedures that fulfills the\nrequirements of § 195.402 in its entirety (e.g., Emergency Response\nTraining Program, Public Awareness Program, Damage Prevention\nProgram, Control Management Procedures, Integrity Management\nProgram, Corrosion Control Procedures, etc.) within 180 days of issuance\nof the Final Order.\nWith respect to Item Number 2 of the Notice pertaining to IMTT-Bayonne’s\nfailure to maintain detailed records that validate the MOP of its jurisdictional\npipeline segments, IMTT-Bayonne shall:\na. Provide records that detail the existing MOP of all jurisdictional pipeline\nsegments within 90 days of the issuance of the Final Order;\nb. For those pipeline segments that do not have detailed MOP records,\ndevelop a plan to establish MOP in accordance with applicable standards\nset forth in Part § 195. Within 120 days of issuance of the Final Order, the\nplan must be submitted to the Region Director for possible modification\nand approval.\nThe plan must include the following:\ni. ii. A list of jurisdictional pipe segments;\nDelineate those segments needing pressure testing from any not\nneeding pressure tests;\niii. iv. Pressure tests in accordance with Subpart E in 49 C. F. R. Part 195;\nSafety measures that should be taken pre- and post-pressure\ntesting;\nv. Documentation showing completion of any associated repairs\n\n\n\nCPF No. 1-2014-5008\nPage 5\n3. 4. 5. vi. vii. viii. ix. x. identified during the pressure tests in accordance with appropriate\nprocedures and federal pipeline safety regulations;\nDocumentation and recordkeeping that is consistent with\nappropriate regulations in 49 C. F. R. Part 195;\nSubmission of quarterly reports describing all work performed to\ndate and forecasting scheduled work;\nA plan to detail the sequence of any pressure testing, where higher\nrisk segments are tested before lower-risk segments;\nActual pressure testing to begin within 180 days of issuance of the\nFinal Order;\nAll pressure testing to be successfully completed and incorporated\ninto records, within 720 days of the issuance of the Final Order.\nc. Upon approval from the Region Director, IMTT-Bayonne must execute\nthe plan.\nd. IMTT-Bayonne must make any and all associated records, and their\nrelated procedures, available for review.\nWith respect to Item Number 3 of the Notice pertaining to IMTT-Bayonne’s\nfailure to have and follow a written qualification program (OQ), IMTT-Bayonne\nshall complete, at a minimum, the following actions:\na. Establish and implement a written OQ program, for all tasks that meet the\nfour-part test in § 195.501. The OQ program must be consistent with\n§ 195.501. Within 180 days of the issuance of the Final Order, IMTT-\nBayonne must:\ni. ii. iii. Provide a copy of the completed OQ program;\nProvide a listing of all tasks that are required to be performed by\nqualified individuals;\nProvide a listing of all qualified individuals, and the tasks and\ndates for which they were qualified.\nAll documentation demonstrating compliance with each of the items outlined in\nthis Compliance Order must be submitted to Mr. Byron Coy, P.E., Director,\nEastern Region, PHMSA, Bear Tavern Road, Suite 103, West Trenton, NJ 08628.\nIt is requested (not mandated) that IMTT-Bayonne maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Byron Coy, PE, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of the\nplans, procedures, studies, and analyses; and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n\n\n\nCPF No. 1-2014-5008\nPage 6\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 $200,000 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.\nUnder 49 C.F.R. § 190.243, 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\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. § 190.243. Unless the Associate Administrator, upon request, grants a\nstay, the 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":17785}