# IMTT-BAYONNE — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

120145008_Closure Letter_07022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Closure%20Letter_07022019.pdf

120145008_Closure Letter_07022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Closure%20Letter_07022019_text.pdf

120145008_Final Order_11202015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Final%20Order_11202015.pdf

120145008_Final Order_11202015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Final%20Order_11202015_text.pdf

120145008_NOPV_PCO_12222014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_NOPV_PCO_12222014.pdf

120145008_NOPV_PCO_12222014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_NOPV_PCO_12222014_text.pdf

120145008_Operator Response to Notice_01152015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120145008/120145008_Operator%20Response%20to%20Notice_01152015.pdf

120145008_Closure Letter_07022019_text.pdf

OVERNIGHT EXPRESS DELIVERY
July 2, 2019
Mr. Christopher Frost
Chief Executive Officer
Macquarie Infrastructure Corporation
125 West 55th St, Level 15
New York, NY 10019
CPF 1-2014-5008
Dear Mr. Frost:
During a 2013 inspection, a representative from the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of Title 49 of
the United States Code, inspected the IMTT-Bayonne Company’s (Respondent) procedures and
records in Bayonne, New Jersey.
As a result of the inspection, Respondent was issued a Notice of Probable Violation (NOPV) and
Proposed Compliance Order on December 22, 2014. Following enforcement proceedings, a Final
Order was issued on November 20, 2015.
Pursuant to the Final Order, Respondent submitted documentation showing it took certain actions
to ensure compliance with the terms of the Order on April 23, 2018, and October 1, 2018.
Based on our review of the documentation, it appears that the inadequacies outlined in this NOPV
have been corrected.
This letter is to inform you no further action is necessary, and this case is now closed. Thank you
for your cooperation.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration

120145008_Final Order_11202015_text.pdf

November 20, 2015
Mr. James Hooke
Chief Executive Officer
Macquarie Infrastructure Corporation
125 West 55th St, Level 15
New York, NY 10019
Re: CPF No. 1-2014-5008
Dear Mr. Hooke:
Enclosed please find the Final Order issued in the above-referenced case to your subsidiary,
IMTT-Bayonne. It makes findings of violation and specifies actions that need to be taken by
IMTT-Bayonne to comply with the pipeline safety regulations. When the terms of the
compliance order have been completed, as determined by Mr. Byron Coy, 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, P.E., Director, Eastern Region, Office of Pipeline Safety
Mr. Richard Fisette, Terminal Manager, International-Matex Tank Terminals (IMTT)-
Bayonne, 250 East 22nd Street, Bayonne, NJ 07002
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
_______________________________________________
In the Matter of )
IMTT-Bayonne, ) CPF No. 1-2014-5008
a subsidiary of Macquarie Infrastructure Corporation, )
)
)
)
Respondent. )
_______________________________________________ )
FINAL ORDER
On April 29, 2014, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
conducted a meeting with representatives of IMTT-Bayonne (IMTT-Bayonne or Respondent) in
Bayonne, New Jersey (Facilities). IMTT-Bayonne is a subsidiary of Macquarie Infrastructure
Corporation, which owns and operates 12 bulk liquid storage facilities in North America,
including its 600-acre facility in Bayonne, NJ.1
As a result of the April 29, 2014 meeting, by letter dated December 22, 2014, the Director,
Eastern Region, OPS (Director), issued a Notice of Probable Violation and Proposed Compliance
Order (Notice) to Respondent.2 In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that IMTT-Bayonne had violated 49 C.F.R. §§ 195.402, 195.404
, and 195.505, and ordered Respondent to take certain measures to correct the alleged violations.
IMTT-Bayonne responded to the Notice by letter dated January 15, 2015 (Response). The
company did not contest the allegations of violation, but requested changes to the proposed
compliance order. Respondent did not request a hearing and therefore has waived its right to
one.
1 About IMTT, http://www.imtt.com/index.php?page=About-IMTT (last visited July 8, 2015); see also IMTT –
New York Harbor/New Jersey, http://www.imtt.com/index.php?page=bayonne (last visited July 8, 2015).
2 See Notice at 1. Prior to 2013, it appears that the Facilities had not been inspected by PHMSA. In 2013, upon the
request of a PHMSA representative, a series of meetings were held between PHMSA and IMTT for the purpose of
determining the jurisdictional status of the Facilities. Respondent thereupon undertook an analysis to ascertain
whether its Facilities were regulated pipeline facilities under PHMSA jurisdiction. On April 29, 2014, IMTT
informed PHMSA that it had determined that several of its pipeline segments and breakout tanks, including the
Facilities, were indeed under PHMSA jurisdiction.



CPF No. 1-2014-5008
Page 2
FINDINGS OF VIOLATION
In its Response, IMTT-Bayonne did not contest the allegations in the Notice that it violated
49 C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:
§ 195.402 Procedural manual for operations, maintenance, and
emergencies.
(a) General. Each operator shall prepare and follow for each pipeline
system a manual of written procedures for conducting normal operations
and maintenance activities and handling abnormal operations and
emergencies. This manual shall be reviewed at intervals not exceeding 15
months, but at least once each calendar year, and appropriate changes
made as necessary to insure that the manual is effective. This manual shall
be prepared before initial operations of a pipeline system commence, and
appropriate parts shall be kept at locations where operations and
maintenance activities are conducted.
The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to prepare and
follow written procedures for conducting normal operations, maintenance activities, abnormal
operations, and emergencies. Specifically, the Notice alleged that during the April 29, 2014
meeting, IMTT-Bayonne could not demonstrate it had developed or followed procedures as
required under § 195.402(a) for the Facilities. On this date, IMTT-Bayonne only produced a
Power Point presentation that included information on its preliminary jurisdictional analysis
results, but did not show it had prepared or followed procedures for the Facilities, as required by
§ 195.402(a).
Respondent 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. § 195.402(a) by failing to develop or
follow a manual of written procedures for the Facilities.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(3), which states:
§ 195.404 Maps and records.
(a) Each operator shall maintain current maps and records of its
pipeline systems that include at least the following information…
(3) The maximum operating pressure of each pipeline....
The Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(3) by failing to maintain
current records demonstrating how the maximum operating pressure (MOP) of its jurisdictional
pipeline segments had been determined. Specifically, Respondent allegedly failed to provide
current documentation that validated the process for calculating the MOP for its jurisdictional
pipeline segments.
IMTT-Bayonne did not contest this allegation of violation. Accordingly, based upon a review of



CPF No. 1-2014-5008
Page 3
all of the evidence, I find that Respondent violated 49 C.F.R. § 195.404(a)(3) by failing to
maintain current records of its pipeline system that include the MOP of each pipeline.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.505, which states:
§ 195.505 Qualification program.
Each operator shall have and follow a written qualification program.
The program shall include provisions to…
The Notice alleged that Respondent violated 49 C.F.R. § 195.505 by failing to maintain and
follow a written qualification program. Specifically, the Notice alleged that IMTT-Bayonne
could not demonstrate that it either had, or followed, a written qualification program for
personnel performing covered tasks on its pipeline system.
Respondent 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. § 195.505 by failing to maintain and
follow a written qualification program.
These findings of a violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for
violations of 49 C.F.R. §§ 195.402(a), 195.404(a)(3), and 195.505, respectively. While
Respondent did not contest the allegations of violation as stated in the Notice, the company did
request changes to the proposed compliance order. IMTT-Bayonne requested altering four of the
deadlines listed in the compliance order, as well as clarifying actions it was required to take in
providing a map of its jurisdictional pipeline system. IMTT-Bayonne did not state a rationale as
to why PHMSA should incorporate these suggested changes, but submitted information showing
it had taken steps to meet the requirements set forth in the proposed compliance order.
Upon review of Respondent’s request, I find that the compliance order should be issued as
proposed in the Notice. While IMTT-Bayonne has already taken certain steps to comply with
the proposed order, it has not asserted any reason as to why PHMSA should modify it or why the
deadlines set forth therein should be modified. If necessary, Respondent may request extensions
to comply with the requirements set forth below. Further, if necessary, PHMSA may request
clarification of the jurisdictional pipeline system map that IMTT-Bayonne is required to provide
under the compliance order.
Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas, 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:



CPF No. 1-2014-5008
Page 4
1. 2. With respect to Item Number 1 of the Notice pertaining to IMTT-Bayonne’s
failure to prepare and follow for each pipeline system a manual of written
procedures for conducting normal operations and maintenance activities, and
handling abnormal operations and emergencies, IMTT-Bayonne shall complete at
a minimum, the following actions:
a. Provide a current map of the jurisdictional pipeline system that includes
information on the location and identification of all assets, within 30 days
of issuance of the Final Order;
b. Provide current piping and instrumentation diagrams showing the
jurisdictional components of the pipeline system, within 30 days of
issuance of the Final Order;
c. Provide an updated “Break-out Tank Listing” of all jurisdictional breakout
tanks, within 30 days of issuance of the Final Order;
d. Establish and implement a manual of written procedures that fulfills the
requirements of § 195.402 in its entirety (e.g., Emergency Response
Training Program, Public Awareness Program, Damage Prevention
Program, Control Management Procedures, Integrity Management
Program, Corrosion Control Procedures, etc.) within 180 days of issuance
of the Final Order.
With respect to Item Number 2 of the Notice pertaining to IMTT-Bayonne’s
failure to maintain detailed records that validate the MOP of its jurisdictional
pipeline segments, IMTT-Bayonne shall:
a. Provide records that detail the existing MOP of all jurisdictional pipeline
segments within 90 days of the issuance of the Final Order;
b. For those pipeline segments that do not have detailed MOP records,
develop a plan to establish MOP in accordance with applicable standards
set forth in Part § 195. Within 120 days of issuance of the Final Order, the
plan must be submitted to the Region Director for possible modification
and approval.
The plan must include the following:
i. ii. A list of jurisdictional pipe segments;
Delineate those segments needing pressure testing from any not
needing pressure tests;
iii. iv. Pressure tests in accordance with Subpart E in 49 C. F. R. Part 195;
Safety measures that should be taken pre- and post-pressure
testing;
v. Documentation showing completion of any associated repairs



CPF No. 1-2014-5008
Page 5
3. 4. 5. vi. vii. viii. ix. x. identified during the pressure tests in accordance with appropriate
procedures and federal pipeline safety regulations;
Documentation and recordkeeping that is consistent with
appropriate regulations in 49 C. F. R. Part 195;
Submission of quarterly reports describing all work performed to
date and forecasting scheduled work;
A plan to detail the sequence of any pressure testing, where higher
risk segments are tested before lower-risk segments;
Actual pressure testing to begin within 180 days of issuance of the
Final Order;
All pressure testing to be successfully completed and incorporated
into records, within 720 days of the issuance of the Final Order.
c. Upon approval from the Region Director, IMTT-Bayonne must execute
the plan.
d. IMTT-Bayonne must make any and all associated records, and their
related procedures, available for review.
With respect to Item Number 3 of the Notice pertaining to IMTT-Bayonne’s
failure to have and follow a written qualification program (OQ), IMTT-Bayonne
shall complete, at a minimum, the following actions:
a. Establish and implement a written OQ program, for all tasks that meet the
four-part test in § 195.501. The OQ program must be consistent with
§ 195.501. Within 180 days of the issuance of the Final Order, IMTT-
Bayonne must:
i. ii. iii. Provide a copy of the completed OQ program;
Provide a listing of all tasks that are required to be performed by
qualified individuals;
Provide a listing of all qualified individuals, and the tasks and
dates for which they were qualified.
All documentation demonstrating compliance with each of the items outlined in
this Compliance Order must be submitted to Mr. Byron Coy, P.E., Director,
Eastern Region, PHMSA, Bear Tavern Road, Suite 103, West Trenton, NJ 08628.
It is requested (not mandated) that IMTT-Bayonne maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and
submit the total to Byron Coy, PE, Director, Eastern Region, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: 1) total cost associated with preparation/revision of the
plans, procedures, studies, and analyses; and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.



CPF No. 1-2014-5008
Page 6
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.
Under 49 C.F.R. § 190.243, Respondent has a right to submit a Petition for Reconsideration of
this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline
Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA
will accept petitions received no later than 20 days after receipt of service of this Final Order by
the Respondent, provided they contain a brief statement of the issue(s) and meet all other
requirements of 49 C.F.R. § 190.243. Unless the Associate Administrator, upon request, grants a
stay, 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
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