{"operation":"document","citation":"CPF 120185009","title":"SUNOCO PIPELINE L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-01-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.412(a), 195.420(b), 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185009","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120185009","body":"Notice of Probable Violation involving SUNOCO PIPELINE L.P.. PHMSA's enforcement data identifies the cited regulations as 195.412(a),  195.420(b),  195.583(a). The case was opened on 2018-01-18 and is reported as closed as of 2018-07-24. Proposed civil penalty: $163,700. Assessed civil penalty: $163,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120185009_Final Order_07242018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185009/120185009_Final%20Order_07242018.pdf\n\n120185009_Final Order_07242018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185009/120185009_Final%20Order_07242018_text.pdf\n\n120185009_NOPV PCP_01182018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185009/120185009_NOPV%20PCP_01182018.pdf\n\n120185009_NOPV PCP_01182018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185009/120185009_NOPV%20PCP_01182018_text.pdf\n\n120185009_Operator Response To Notice_02282018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185009/120185009_Operator%20Response%20To%20Notice_02282018.pdf\n\n120185009_Final Order_07242018_text.pdf\n\nJuly 24, 2018\nMr. Kelcy L. Warren\nChief Executive Officer and Chairman of the Board of Directors\nEnergy Transfer Partners, LP\n8111 Westchester Drive\nDallas, TX 75225\nRe: CPF No. 1-2018-5009\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nSunoco Pipeline, LP. It makes findings of violation and assesses a civil penalty of $163,700.\nThis is to acknowledge receipt of payment of the full penalty amount, by wire transfer dated\nMarch 20, 2018. This enforcement action is now closed. Service of the Final Order by certified\nmail is effective upon the date of mailing as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\nMr. Ryan Coffey, Executive Vice President of Operators, Energy Transfer Partners, LP,\n1 Fluor Daniel Drive, Bldg. A, Level 3, Sugar Land, TX 77478\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 )\nSunoco Pipeline, LP, ) CPF No. 1-2018-5009\na subsidiary of Energy Transfer Partners, LP, )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom April 11, 2016, through November 18, 2016, pursuant to 49 U.S.C. § 60117,\nrepresentatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Sunoco Pipeline, LP (Sunoco or Respondent), in Delaware, Michigan, New York,\nNew Jersey, Ohio, and Pennsylvania. A wholly-owned subsidiary of Energy Transfer Partners,\nLP,1 Sunoco owns and operates liquid and natural gas pipelines throughout the United States.2\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated January 18, 2018, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Sunoco had\ncommitted three violations of 49 C.F.R. Part 195 and proposed assessing a civil penalty of\n$163,700 for the alleged violations.\nAfter requesting and receiving an extension of time to respond, Energy Transfer Partners, LP, on\nbehalf of Sunoco, responded to the Notice by letter dated February 28, 2018 (Response). The\ncompany did not contest the allegations of violation and paid the proposed civil penalty of\n$163,700 by wire transfer dated March 20, 2018. In accordance with 49 C.F.R. § 190.208(a)(1),\nsuch payment authorizes the Associate Administrator to make findings of violation and to issue\nthis final order without further proceedings.\nFINDINGS OF VIOLATION\nIn its Response, Sunoco did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Response, at 1.\n2 Sunoco website, available at http://www.sunocologistics.com/ (last accessed May 10, 2018).\n\n\n\nCPF No. 1-2018-5009\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.412(a), which states:\n§ 195.412 Inspection of rights-of-way and crossings under navigable\nwaters.\n(a) Each operator shall, at intervals not exceeding 3 weeks, but at least\n26 times each calendar year, inspect the surface conditions on or adjacent\nto each pipeline right-of-way. Methods of inspection include walking,\ndriving, flying or other appropriate means of traversing the right-of-way.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.412(a) by failing to inspect the\nsurface conditions on or adjacent to each pipeline right-of-way at intervals not exceeding three\nweeks, but at least 26 times each calendar year. Specifically, the Notice alleged that during\ncalendar year 2016, records indicated that Sunoco exceeded the 3-week inspection interval 11\ntimes for the Taylor (Detroit), Darby Creek, and Ft. Mifflin units.\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. § 195.412(a) by failing to inspect the\nsurface conditions on or adjacent to its pipeline rights-of-way at intervals not exceeding three\nweeks, but at least 26 times each calendar year.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.420(b), which states:\n§ 195.420 Valve maintenance.\n(a) . . . .\n(b) Each operator shall, at intervals not exceeding 7½ months, but at\nleast twice each calendar year, inspect each mainline valve to determine that\nit is functioning properly.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.420(b) by failing to inspect each\nmainline valve at intervals not exceeding 7½ months, but at least twice each calendar year.\nSpecifically, the Notice alleged that after reviewing mainline-valve inspection records for 2013-\n2016, PHMSA discovered that Sunoco had failed to perform inspections at the required interval\nin 90 instances on the Fostoria (Inland), Lima (Inland), Inter-refinery System, Big Flats,\nMontello-Kingston-Bald Eagle, and Trenton Area units.\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. § 195.420(b) by failing to inspect its\nmainline valves at intervals not exceeding 7½ months but at least twice each calendar year.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.583(a), which states:\n§ 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed\nto the atmosphere for evidence of atmospheric corrosion, as follows:\n\n\n\nCPF No. 1-2018-5009\nPage 3\nIf the pipeline is located: Then the frequency of inspection is:\nOnshore………………….. At least once every 3 calendar years, but\nwith intervals not exceeding 39 months.\nOffshore…………………. At least once each calendar year, but with\nintervals not exceeding 15 months.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.583(a) by failing to inspect each\nonshore pipeline or portion of pipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion at least once every three calendar years, but with intervals not exceeding\n39 months. Specifically, the Notice alleged that in eight instances, Sunoco exceeded the 39-\nmonth interval within the Inter-refinery System, Northeast Refinery Complex, and Darby Creek\nunits.\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. § 195.583(a) by failing to inspect each\nonshore pipeline or portion of pipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion at least once every three calendar years, but with intervals not exceeding\n39 months.\nThese findings of violation 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.3 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\ncivil penalty of $163,700 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $30,900 for Respondent’s violation of 49 C.F.R.\n§ 195.412(a), for failing to inspect the surface conditions on or adjacent to each pipeline right-of-\nway at intervals not exceeding three weeks, but at least 26 times each calendar year. Sunoco did\nnot contest the proposed penalty and paid the amount in full. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $30,900 for\n3 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum\nCivil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\n\n\n\nCPF No. 1-2018-5009\nPage 4\nviolation of 49 C.F.R. § 195.412(a).\nItem 2: The Notice proposed a civil penalty of $79,200 for Respondent’s violation of 49 C.F.R.\n§ 195.420(b), for failing to inspect each mainline valve at intervals not exceeding 7½ months,\nbut at least twice each calendar year. Sunoco did not contest the proposed penalty and paid the\namount in full. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $79,200 for violation of 49 C.F.R. § 195.420(b).\nItem 3: The Notice proposed a civil penalty of $53,600 for Respondent’s violation of 49 C.F.R.\n§ 195.583(a), for failing to inspect each onshore pipeline or portion of pipeline that is exposed to\nthe atmosphere for evidence of atmospheric corrosion at least once every three calendar years,\nbut with intervals not exceeding 39 months. Sunoco did not contest the proposed penalty and\npaid the amount in full. Accordingly, having reviewed the record and considered the assessment\ncriteria, I assess Respondent a civil penalty of $53,600 for violation of 49 C.F.R. § 195.583(a).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a civil penalty of $163,700, which amount was paid in\nfull by wire transfer on March 20, 2018.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nJuly 24, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11565}