{"operation":"document","citation":"CPF 120165004","title":"WEST SHORE PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-06-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.402(c)(3), 195.575(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120165004","body":"Notice of Probable Violation involving WEST SHORE PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  195.575(c). The case was opened on 2016-06-20 and is reported as closed as of 2018-03-26. Proposed civil penalty: $105,400. Assessed civil penalty: $105,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120165004_Closure Letter_03262018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_Closure%20Letter_03262018.pdf\n\n120165004_Closure Letter_03262018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_Closure%20Letter_03262018_text.pdf\n\n120165004_Final Order_11152016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_Final%20Order_11152016.pdf\n\n120165004_Final Order_11152016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_Final%20Order_11152016_text.pdf\n\n120165004_NOPV PCP PCO_06202016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_NOPV%20PCP%20PCO_06202016.pdf\n\n120165004_NOPV PCP PCO_06202016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_NOPV%20PCP%20PCO_06202016_text.pdf\n\n120165004_Operator Response to Notice_07182016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165004/120165004_Operator%20Response%20to%20Notice_07182016.pdf\n\n120165004_NOPV PCP PCO_06202016_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS DELIVERY\nJune 20, 2016\nT. Scott Collier\nVP, Performance Assurance & Asset Integrity\nWest Shore Pipeline Co.\nFive TEK Park\n9999 Hamilton Boulevard\nBreinigsville, PA 18031\nCPF 1-2016-5004\nDear Mr. Collier:\nFrom May 19, 2014 through July 31, 2015, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code, inspected Buckeye Partners, L.P.’s procedures and records for the West Shore\nPipeline Company (Buckeye West Shore) in Breinigsville, PA.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolations are:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual of\nwritten procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies. This manual shall be reviewed at\nintervals not exceeding 15 months, but at least once each calendar year, and appropriate\nchanges made as necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline system commence, and appropriate parts\nshall be kept at locations where operations and maintenance activities are conducted.\nBuckeye West Shore failed to follow its procedures for monitoring electrical isolation at casings\nalong its pipeline system.\n\n\n\n1-2016-5004\nBuckeye West Shore’s Corrosion Manual procedure A-02 External Corrosion Control, versions\n12/2012, 09/2012, and 12/2011, and procedure J-02 External Corrosion Control version\n09/2010, Section 9.4 states: “Annually during the corrosion control survey, installed electrical\nisolation devices shall be inspected for proper operation.”\nThe PHMSA inspector reviewed Buckeye West Shore’s External Corrosion records for Line\nSegment EB252US-US254GT. The records indicate that Buckeye West Shore failed to inspect\nelectrical isolation devices for proper isolation at 6 locations. In an email dated July 31, 2015,\nBuckeye West Shore provided additional details on the missed readings:\n1. 2. At the first 5 locations noted in the table below, casing vents and test leads did not exist\nuntil 2012, leading to the missed readings in 2011 and 2012. Readings were taken in 2013\nat these 5 locations.\nAt MP 131.890, the 2013 Casing P/S reading was missed due to failure to acquire lane\nclosures for safe access to the test point.\nLocation\nMP\nDate Carrier Pipe P/S\n(V)\nCasing P/S\n(V)\n125.790 2011 NR NR\n2012 NR NR\n6/27/13 -1.337 -0.745\n127.250 2011 NR NR\n2012 NR NR\n6/27/13 -1.593 -0.947\n130.300 2011 NR. NR\n2012 NR NR\n6/27/13 -1.399 -0.703\n130.800 2011 NR NR\n2012 NR NR\n6/27/13 -1.417 -0.766\n131.250 2011 NR. NR\n2012 NR NR\n6/27/13 -1.356 -0.711\n131.890 5/23/11 -1.160 -1.086\n5/25/12 -1.237 -0.736\n2013 -1.312 NR\n2. §195.575 Which facilities must I electrically isolate and what inspections, tests, and\nsafeguards are required?\n(c) You must inspect and electrically test each electrical isolation to assure the isolation\nis adequate.\nBuckeye West Shore failed to inspect and electrically test each electrical isolation at two casings\nalong its pipeline system to assure the isolation is adequate.\nBuckeye’s Corrosion Manual procedure A-05 Shorted Casing, issued 6/2013, 12/2011, and\nprocedure J-05 Shorted Casing, issued 9/2010, Section 2.7 of each procedure states in part:\n120165004_NOPV_PCP_PCO_06202016 Page 2 of 6\n\n\n\n1-2016-5004\n“The following procedures and evaluations determine whether or not a shorted condition exists,\nand if the condition detrimentally affects the level of pipeline cathodic protection. . . [that when\ncomparing the potentials of the pipeline and its casing] if the potential difference is 100 millivolts\nor less, a shorted condition may exist”.\nSection 1.5 of each procedure states in part that: “Casings that are determined to be directly\n(metallically) shorted as a result of the testing described in this policy shall be cause to initiate a\ncorrective action plan for remediation. This plan shall be initiated within six months of the\nevaluation by the Lead Corrosion Engineer. . . ”\nThe PHMSA inspector reviewed Buckeye West Shore’s External Corrosion records for Line\nSegment EB252US-US254GT. The records indicated that there were two locations (five\ninstances) in which the potential difference between the pipe-to-soil readings on the casing and\ncarrier pipes was less than 100 millivolts.\nIn an email dated July 31, 2015, PHMSA asked Buckeye West Shore to provide additional\ninformation for the two locations. Buckeye West Shore responded as follows:\nLocation 39.880: “This casing was tested using the Panhandle Eastern test method in 2010 (WO\n640030) and found to be shorted. The casing is being monitored by ILI and last inspected in 2013.\nThere has been no growth of external features within the casing and maximum pit depth is less\nthan 15%. The pipeline displays adequate cathodic protection at this crossing.”\nLocation 48.280: “This casing was tested using the Panhandle Eastern test method in 2008 and\nfound to be shorted. The casing is being monitored by ILI and last inspected in 2013. No external\ncorrosion features have been identified in this casing. The pipeline displays adequate cathodic\nprotection at this crossing.”\nMonitoring the casings with ILI in lieu of repairing the shorted casing fails to meet the intent of\n§195.575(c).\nLocation\nMP\nDate Carrier\nPipe\nP/S (V)\nCasing\nP/S (V)\nΔ (mv.) Days since\nconfirming\nshort\n39.880 6/27/11 -1.183 -1.181 2\n5/22/12 -1.328 -1.325 3\n6/10/13 -1.361 -1.364 3 715\n48.280 6/28/11 -1.217 -1.214 3\n5/30/12 -1.342 -1.332 10\n7/2/13 -1.315 -1.308 7 736\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nBuckeye West Shore’s procedure for monitoring atmospheric corrosion does not provide specific\n120165004_NOPV_PCP_PCO_06202016 Page 3 of 6\n\n\n\n1-2016-5004\nguidance on how to give particular attention to pipe under thermal insulation in accordance with\n§195.583(b).\nDuring the investigation, the PHMSA inspector reviewed Buckeye West Shore’s Corrosion\nManual procedure A-04 Visual Pipe Inspection, issued 9/2013. The procedure states in part:\n“1. Policy\n1.1 Visual inspections shall be conducted by trained and qualified field personnel to provide\ninformation concerning:\n1.1.3 Condition of piping under thermal insulation or disbonded coating, at splash zones, or deck\npenetrations.”\nThe procedure does not provide sufficient details on what areas of the insulated piping should be\ninspected, such as damaged insulation, low points on vertical runs, areas where pipe supports\npenetrate the insulation jacketing, or areas with caulking deterioration. In addition, the procedure\ndid not provide adequate guidance on when portions of insulation should be removed to evaluate\npotential issues identified by visual observations.\nBuckeye West Shore stated that there was no other guidance on inspecting piping under thermal\ninsulation in its written procedures.\nIn addition, the PHMSA inspector reviewed Buckeye West Shore’s triennial atmospheric\ncorrosion inspection records at its Granville Terminal, dated April 2013. The feed lines into West\nShore Pipeline’s Granville Terminal are insulated.\n1. There are seven jurisdictional pipelines running into the tank area.\n2. According to the plant manager and the corrosion technician, the insulation has been in\nplace since 2006.\n3. 4. There are no ports for viewing the condition of representative pipe segments.\nThere is no mention of inspecting the pipe under the thermal insulation.\nBuckeye West Shore stated that it had not removed the thermal insulation, nor inspected the piping\nunder the insulation for corrosion since it has been installed in 2006.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000\nper violation per day the violation persists up to a maximum of $2,000,000 for a related series of\nviolations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed\n$100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related\nseries of violations. The Compliance Officer has reviewed the circumstances and supporting\ndocumentation involved in the above probable violation(s) and has recommended that you be\npreliminarily assessed a civil penalty of $ 105,400 as follows:\nItem number PENALTY\n1 $61,200\n2 $44,200\n120165004_NOPV_PCP_PCO_06202016 Page 4 of 6\n\n\n\n1-2016-5004\nProposed Compliance Order\nWith respect to items 2 and 3, pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to West Shore\nPipeline Company. Please refer to the Proposed Compliance Order, which is enclosed and made\na part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All\nmaterial submitted in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice, this constitutes a\nwaiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 1-2016-5004 and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n120165004_NOPV_PCP_PCO_06202016 Page 5 of 6\n\n\n\n1-2016-5004\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to West Shore Pipeline Company (Buckeye West\nShore) a Compliance Order incorporating the following remedial requirements to ensure the\ncompliance of Buckeye West Shore with the pipeline safety regulations:\n1. In regard to Item Number 2 of the Notice, pertaining to Buckeye West Shore’s failure\nto inspect and electrically test each electrical isolation, Buckeye West Shore must\nreview and update its procedure A-05 Shorted Casing to provide guidance on\nremediating shorted casings. The procedures shall be revised within 30 days of receipt\nof the Final Order.\n2. Buckeye West Shore shall remediate the shorted casings at the 2 locations identified in\nItem Number 2, in accordance with the revised procedures, within 12 months of\nissuance of the Final Order.\n3. In regard to Item Number 3 of the Notice, pertaining to Buckeye West Shore’s failure\nto give particular attention to pipe coating under thermal insulation during atmospheric\ncorrosion monitoring, Buckeye West Shore must review and update its procedure A-04\nVisual Pipe Inspection to provide guidance for performing atmospheric corrosion\ninspections on pipelines under thermal insulation. The procedures shall be revised\nwithin 30 days of receipt of the Final Order. Buckeye West Shore shall inspect the\npiping under thermal insulation at the Granville Terminal, in accordance with the\nrevised procedures, within 12 months of issuance of the Final Order.\n4. Buckeye West Shore must complete the requirements as outlined above. All\ndocumentation demonstrating compliance with each of the items outlined in this\nproposed compliance order must be submitted to Byron Coy, PE, Director, Eastern\nRegion, Pipeline and Hazardous Materials Safety Administration, Suite 103, Bear\nTavern Road, West Trenton, NJ for review.\n5. It is requested (not mandated) that Buckeye West Shore maintain documentation of\nthe safety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Byron Coy, PE, Director, Eastern Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in two\ncategories: 1) total cost associated with preparation/revision of plans, procedures,\nstudies and analyses, and 2) total cost associated with replacements, additions and other\nchanges to pipeline infrastructure.\n120165004_NOPV_PCP_PCO_06202016 Page 6 of 6\n\n120165004_Final Order_11152016_text.pdf\n\nMr. Clark C. Smith\nPresident and Chief Executive Officer\nBuckeye GP, LLC\nOne Greenway Plaza\nSuite 600\nHouston, Texas 77046\nRe: CPF No. 1-2016-5004\nDear Mr. Smith:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolations, assesses a civil penalty of $105,400, and specifies actions that need to be taken by\nWest Shore Pipe Line Company, which is operated by Buckeye Partners, L.P., to comply with\nthe pipeline safety regulations. The penalty payment terms are set forth in the Final Order.\nWhen the civil penalty has been paid and the terms of the compliance order completed, as\ndetermined by the Director, Eastern Region, this enforcement action will be closed. Service of\nthe Final 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,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Byron Coy, Director, Eastern Region, OPS\nMr. T. Scott Collier, VP, Performance Assurance & Asset Integrity, West Shore Pipeline\nCo.\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____________________________________\n)\nIn the Matter of )\n)\nWest Shore Pipe Line Co., ) CPF No. 1-2016-5004\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom May 19, 2014 through July 31, 2015, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of the West\nShore Pipe Line Company (West Shore or Respondent) in Breinigsville, PA. West Shore is a\n650-mile common carrier petroleum pipeline system that originates in the greater Chicago area\nand transports refined petroleum products to northern Illinois and Wisconsin including the\nMadison and Green Bay, Wisconsin metropolitan markets.1 Buckeye Partners, L.P. operates the\nWest Shore pipeline system on behalf of West Shore.\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated June 20, 2016, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that West Shore had violated 49 C.F.R. §§ 195.402(a), 195.575(c), and\n195.402(c)(3), and proposed assessing a civil penalty of $105,400 for the alleged violations. The\nNotice also proposed ordering Respondent to take certain measures to correct the alleged\nviolations.\nWest Shore responded to the Notice by letter dated July 18, 2016 (Response). The company did\nnot contest the allegations of violation and agreed to pay the proposed civil penalty of $105,400,\nas provided in 49 C.F.R. § 190.227, upon issuance of the Final Order. Respondent did not\nrequest a hearing and therefore has waived the right to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the allegations in the Notice that it violated 49\nC.F.R. Part 195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (June 20, 2016) (on file with PHMSA), at 1.\n\n\n\nCPF No. 1-2016-5004\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 194.402(a), which states:\n§ 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system\na manual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall\nbe reviewed at intervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a pipeline\nsystem commence, and appropriate parts shall be kept at locations where\noperations and maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow a\nmanual of written procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies. Specifically, the Notice alleged that Respondent\nfailed to follow its procedures for monitoring electrical isolation at casings along its pipeline\nsystem. Respondent’s Corrosion Manual procedure A-02 External Corrosion Control, versions\n12/2012, 09/2012, and 12/2011, and procedure J-02 External Corrosion Control version 09/2010,\nSection 9.4 states: “Annually during the corrosion control survey, installed electrical isolation\ndevices shall be inspected for proper operation.” The PHMSA inspector reviewed Respondent’s\nExternal Corrosion records for Line Segment EB252US-US254GT. The records indicate that\nRespondent failed to inspect electrical isolation devices for proper isolation at six locations. In\nan email dated July 31, 2015, Respondent provided additional details on the missed readings.\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 follow its\nmanual of written procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.575(c), which states:\n§ 195.575 Which facilities must I electrically isolate and what inspections, tests, and\nsafeguards are required?\n(a) You must electrically isolate each buried or submerged pipeline from other\nmetallic structures, unless you electrically interconnect and cathodically protect the\npipeline and the other structures as a single unit.\n(c) You must inspect and electrically test each electrical isolation to assure the\nisolation is adequate.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.575(c) by failing to inspect and\nelectrically test each electrical isolation at two casings along its pipeline system to assure the\nisolation is adequate. Specifically, the Notice alleged that in lieu of repairing shorted casing,\nRespondent monitored the casings with In-Line Inspection (ILI).\n\n\n\nCPF No. 1-2016-5004\nPage 3\nThe PHMSA inspector reviewed Respondent’s External Corrosion records for Line Segment\nEB252US-US254GT. The records indicated that there were two locations (five instances) in\nwhich the potential difference between the pipe-to-soil readings on the casing and carrier pipes\nwas less than 100 millivolts.\nIn an email dated July 31, 2015, PHMSA asked Respondent to provide additional information for\nthe two locations. Respondent responded as follows:\nLocation 39.880: “This casing was tested using the Panhandle Eastern test method in 2010 (WO\n640030) and found to be shorted. The casing is being monitored by ILI and last inspected in\n2013. There has been no growth of external features within the casing and maximum pit depth is\nless than 15%. The pipeline displays adequate cathodic protection at this crossing.”\nLocation 48.280: “This casing was tested using the Panhandle Eastern test method in 2008 and\nfound to be shorted. The casing is being monitored by ILI and last inspected in 2013. No\nexternal corrosion features have been identified in this casing. The pipeline displays adequate\ncathodic protection at this crossing.”\nMonitoring the shorted casings with ILI in lieu of repairing the short does not meet the\nrequirement of §195.575(c).\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. § 195.575(c) by failing to inspect and\nelectrically test each electrical isolation at two casings along its pipeline system to assure the\nisolation is adequate.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(3), which states:\n§ 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\n(c) Maintenance and normal operations. The manual required by paragraph (a)\nof this section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance\nwith each of the requirements of this subpart and subpart H of this part.\n§195.583 What must I do to monitor atmospheric corrosion control?\n(a) . . . .\n\n\n\nCPF No. 1-2016-5004\nPage 4\n(b) During inspections you must give particular attention to pipe at soil-to-air\ninterfaces, under thermal insulation, under disbonded coatings, at pipe supports, in\nsplash zones, at deck penetrations, and in spans over water.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(3) by failing to prepare and\nfollow a manual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. Specifically, the Notice alleged\nthat Respondent failed to prepare and follow a procedure for monitoring atmospheric corrosion\nthat gives particular attention to pipe under thermal insulation in accordance with § 195.583(b).\nDuring the investigation, the PHMSA inspector reviewed Respondent’s Corrosion Manual\nprocedure A-04 Visual Pipe Inspection, issued September 2013. The procedure did not explain\nwhat areas of the insulated piping should be inspected, such as damaged insulation, low points\non vertical runs, areas where pipe supports penetrate the insulation jacketing, or areas with\ncaulking deterioration. In addition, the procedure did not describe when portions of insulation\nshould be removed to evaluate potential issues identified by visual observations.\nRespondent stated that there was no other guidance on inspecting piping under thermal insulation\nin its written procedures.\nIn addition, the PHMSA inspector reviewed Respondent’s triennial atmospheric corrosion\ninspection records at its Granville Terminal, dated April 2013. The feed lines into Respondent’s\nGranville Terminal are insulated. Respondent stated that it had not removed the thermal\ninsulation, nor inspected the piping under the insulation for corrosion since it has been installed\nin 2006.\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(c)(3) by failing to prepare\nand follow a manual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies.\nThese findings of violations will be considered prior offenses in any subsequent enforcement\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. In determining the amount of a civil penalty under 49 U.S.C.\n§ 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\n\n\n\nCPF No. 1-2016-5004\nPage 5\ncivil penalty of $105,400 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $61,200 for Respondent’s violation of 49 C.F.R.\n§ 195.402(a) by failing to follow its procedures for monitoring electrical isolation at casings\nalong its pipeline system. Respondent neither contested the allegation nor presented any\nevidence or argument justifying elimination of the proposed penalty. Accordingly, having\nreviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of\n$61,200 for violation of 49 C.F.R. § 195.402(a).\nItem 2: The Notice proposed a civil penalty of $44,200 for Respondent’s violation of 49 C.F.R.\n§ 195.575(c) by failing to inspect and electrically test each electrical isolation at two casings\nalong its pipeline system to assure the isolation is adequate. Respondent neither contested the\nallegation nor presented any evidence or argument justifying elimination of the proposed\npenalty. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $44,200 for violation of 49 C.F.R. § 195.575(c).\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 $105,400.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, 6500 S\nMacArthur Blvd., Oklahoma City, Oklahoma 79169. The Financial Operations Division\ntelephone number is (405) 954-8845.\nFailure to pay the $105,400 civil penalty will result in accrual of interest at the current annual\nrate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 2 and 3 in the Notice for\nviolations of 49 C.F.R. §§ 195.575(c) and 195.402(c)(3) respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of hazardous liquids or who owns or\noperates a pipeline facility is required to comply with the applicable safety standards established\nunder chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.575(c) (Item 2), Respondent must review\n\n\n\nCPF No. 1-2016-5004\nPage 6\nand update its procedure A-05 Shorted Casing to include provisions that require\nremediating shorted casings. The procedures must be revised within 30 days of\nreceipt of the Final Order.\n2. With respect to the violation of § 195.575(c) (Item 2), Respondent must remediate\nthe shorted casings at the 2 locations identified in Item Number 2, in accordance with\nthe revised procedures, within 12 months of issuance of the Final Order.\n3. With respect to the violation of § 195.402(c)(3) (Item 3), Respondent must give\nparticular attention to pipe coating under thermal insulation during atmospheric\ncorrosion monitoring. Respondent must review and update its procedure A-04 Visual\nPipe Inspection to require performing atmospheric corrosion inspections on pipelines\nunder thermal insulation. The procedures must be revised within 30 days of receipt\nof the Final Order. Respondent must inspect the piping under thermal insulation at\nthe Granville Terminal, in accordance with the revised procedures, within 12 months\nof issuance of the Final Order.\n4. Respondent must complete the requirements as outlined above. All documentation\ndemonstrating compliance with each of the items outlined in this proposed\ncompliance order must be submitted to Byron Coy, PE, Director, Eastern Region,\nPipeline and Hazardous Materials Safety Administration, Suite 103, Bear Tavern\nRoad, West Trenton, NJ for review.\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.\nIn addition, pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is requested (not mandated) to take the following action:\nWest Shore should maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to Byron Coy,\nPE, Director, Eastern Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1) total\ncost associated with preparation/revision of plans, procedures, studies and analyses;\nand 2) total cost associated with replacements, additions and other changes to pipeline\ninfrastructure.\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\n\n\n\nCPF No. 1-2016-5004\nPage 7\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. The filing of a petition automatically stays the payment of\nany civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all\nother terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nActing Associate Administrator\nfor Pipeline Safety\n\n120165004_Closure Letter_03262018_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nMarch 26, 2018\nMr. T. Scott Collier\nVP, Performance Assurance & Asset Integrity\nWest Shore Pipeline Co.\nFive TEK Park\n9999 Hamilton Boulevard\nBreinigsville, PA 18031\nCPF 1-2016-5004\nDear Mr. Collier:\nOn November 15, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to West Shore Pipeline Co., a Final Order in the above-referenced case. This Order included\na Compliance Order and Civil Penalty assessment. Based on our review of the documentation you\nprovided and confirmation of payment of the civil penalty, it has been determined that you have\ncomplied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":34903}