# KIANTONE PIPELINE CORP — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 120155010
- **title:** KIANTONE PIPELINE CORP — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2015-07-01
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.428(a).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/120155010
**body:**

Notice of Probable Violation involving KIANTONE PIPELINE CORP. PHMSA's enforcement data identifies the cited regulation as 195.428(a). The case was opened on 2015-07-01 and is reported as closed as of 2016-02-12. Proposed civil penalty: $22,600. Assessed civil penalty: $22,600. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

120155010_Final Order_01132016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120155010/120155010_Final%20Order_01132016.pdf

120155010_Final Order_01132016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120155010/120155010_Final%20Order_01132016_text.pdf

120155010_NOPV_PCP_07012015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120155010/120155010_NOPV_PCP_07012015.pdf

120155010_NOPV_PCP_07012015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120155010/120155010_NOPV_PCP_07012015_text.pdf

120155010_Operator Response to Notice_07152015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120155010/120155010_Operator%20Response%20to%20Notice_07152015.pdf

120155010_Final Order_01132016_text.pdf

January 13, 2016
Mr. David Wortman
Vice President of Supply and Transportation
Kiantone Pipeline Corporation
15 Bradley Street
Warren, PA 16365
Re: CPF No. 1-2015-5010
Dear Mr. Wortman:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and assesses a civil penalty of $22,600. The penalty payment terms are set forth in the
Final Order. This enforcement action closes automatically upon receipt of payment. 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, PHMSA Eastern Region, OPS
Mr. John Wagner, Esq., Senior Vice President and General Counsel, Kiantone Pipeline
Corporation, 15 Bradley Street, Warren, PA 16365
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 )
)
)
Kiantone Pipeline Corporation, )
a subsidiary of United Refining Company, )
Respondent. )
_______________________________________________ )
) CPF No. 1-2015-5010
FINAL ORDER
From June 9 to June 27, 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 an on-site pipeline safety inspection of the facilities and records of Kiantone Pipeline
Corporation (Kiantone or Respondent) in Warren, Pennsylvania. Respondent, a subsidiary of
United Refining Company,1 operates a hazardous liquid transmission pipeline system, which
includes 78 miles of interstate hazardous liquid transmission pipelines in New York and
Pennsylvania, 7 miles of intrastate hazardous liquid transmission pipeline in Pennsylvania, 7
breakout tanks for crude oil, and 3 breakout tanks for refined petroleum products.2
As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,
by letter dated July 1, 2015, a Notice of Probable Violation and Proposed Civil Penalty (Notice).
In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Kiantone had violated
49 C.F.R. § 195.428 and proposed assessing a civil penalty of $22,600 for the alleged violations.
Kiantone responded to the Notice by letter dated July 15, 2015 (Response). The company did
not contest the allegations of violation but provided an explanation of its actions and requested
that the proposed civil penalty be reduced. Respondent did not request a hearing and therefore
has waived its right to one.
1 Bloomberg Business, Company Overview of Kiantone Pipeline Corporation, website:
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=3711580 (last accessed on December
23, 2015).
2 Pipeline Safety Violation Report (Violation Report), (July 1, 2015) (on file with PHMSA) at 1.



2
FINDING OF VIOLATION
In its Response, Kiantone did not contest the allegation 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. § 195.428(a), which states:
§ 195.428 Overpressure safety devices and overfill protection systems.
(a) Except as provided in paragraph (b) of this section, each operator
shall, at intervals not exceeding 15 months, but at least once each calendar
year, or in the case of pipelines used to carry highly volatile liquids, at
intervals not to exceed 7½ months, but at least twice each calendar year,
inspect and test each pressure limiting device, relief valve, pressure
regulator, or other item of pressure control equipment to determine that it
is functioning properly, is in good mechanical condition, and is adequate
from the standpoint of capacity and reliability of operation for the service
in which it is used.
The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test
each pressure relief valve at its Warren, Pennsylvania, facility at intervals not exceeding 15
months, but at least once each calendar year. Specifically, the Notice alleged that Kiantone’s
relief valve inspections records for 2011, 2012, and 2013 showed that Kiantone inspected four
relief valves at the Warren Tank farm on December 2, 2011. The next inspection on these relief
valves was not until March 14, 2013. Kiantone failed to inspect and test these valves in 2012.
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. § 195.428(a) by failing to inspect and
test each pressure relief valve at its Warren, Pennsylvania, facility at intervals not exceeding 15
months, but at least once each calendar year.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.3 In determining the amount of a civil penalty under 49 U.S.C.
§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect
3 The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, Pub. L. No. 112-90, § 2(a)(1), 125 Stat.
1904, January 3, 2012, increased the civil penalty liability for violating a pipeline safety standard to $200,000 per
violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.



3
that the penalty may have on its ability to continue doing business; and the good faith of
Respondent in attempting to comply with the pipeline safety regulations. In addition, I may
consider the economic benefit gained from the violation without any reduction because of
subsequent damages, and such other matters as justice may require. The Notice proposed a total
civil penalty of $22,600 for the violation cited above.
Item 1: The Notice proposed a civil penalty of $22,600 for Respondent’s violating 49 C.F.R.
§ 195.428(a) by failing to inspect and test each pressure relief valve at its Warren, Pennsylvania,
facility at intervals not exceeding 15 months, but at least once each calendar year.
Respondent does not contest this violation, but requests the proposed penalty be reduced.
Kiantone claims its failure to inspect and test these valves at its Warren, Pennsylvania, facility
was due to a misinterpretation of § 195.428(a).4 Respondent states it reversed the requirement
and believed the relief valves needed to be inspected and tested ‘every calendar year, not to
exceed 15 months.’ Respondent notes it now correctly interprets this regulation, so that all
pressure relief valves at its Warren, Pennsylvania, facility will be inspected and tested at least
once each calendar year.5 Further, Kiantone asserts the violation of § 195.428(a) did not result
in any unsafe conditions or impact persons or the environment.6
After reviewing Respondent’s arguments, I find the civil penalty proposed in the Notice should
not be reduced. While Respondent now correctly interprets the clear language of § 195.428(a), it
failed to do so in 2012. Further, Respondent’s breach of § 195.428(a) is a serious violation that
could have resulted in an overpressure of the pipeline, potentially affecting the ongoing
operational integrity at its facility in Warren, Pennsylvania, as well as creating adverse
consequences to the people and environment surrounding this facility. Accordingly, having
reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of
$22,600 for violation of 49 C.F.R. § 195.428(a).
In summary, having reviewed the record and considered the assessment criteria for each of the
Items cited above, I assess Respondent a total civil penalty of $22,600.
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The
Financial Operations Division telephone number is (405) 954-8845.
Failure to pay the $22,600 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
4 Respondent’s Response to the Notice (Response) at 1.
5 Response at 1.
6 Id.



4
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
Under 49 C.F.R. § 190.243, Respondent has the 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 the 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. The filing of a petition automatically stays the payment of
any civil penalty assessed but does not stay any other provisions of the Final Order, including
any required corrective actions. If Respondent submits payment of the civil penalty, the Final
Order becomes the final administrative decision and the right to petition for reconsideration is
waived.
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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