{"operation":"document","citation":"CPF 120196004","title":"HESS CORPORATION — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-05-06","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.567(c), 195.573(e), 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120196004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120196004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120196004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120196004","body":"Notice of Probable Violation involving HESS CORPORATION. PHMSA's enforcement data identifies the cited regulations as 195.567(c),  195.573(e),  195.583(a). The case was opened on 2019-05-06 and is reported as closed as of 2020-03-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120196004_Closure Letter_03272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_Closure%20Letter_03272020.pdf\n\n120196004_Closure Letter_03272020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_Closure%20Letter_03272020_text.pdf\n\n120196004_Final Order_12022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_Final%20Order_12022019.pdf\n\n120196004_Final Order_12022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_Final%20Order_12022019_text.pdf\n\n120196004_NOPV PCO_05062019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_NOPV%20PCO_05062019.pdf\n\n120196004_NOPV PCO_05062019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_NOPV%20PCO_05062019_text.pdf\n\n120196004_Operator Response to Notice_08052019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196004/120196004_Operator%20Response%20to%20Notice_08052019.pdf\n\n120196004_Closure Letter_03272020_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nMarch 27, 2020\nMr. John B. Hess\nChief Executive Officer\nHess Corporation\n1185 Avenue of the Americas\nNew York, New York 10036\nCPF 1-2019-6004\nDear Mr. Hess:\nOn December 2, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Hess Corporation (Hess) a Final Order in the above-referenced case. This Order included\na Compliance Order. Based on our review of the documentation Hess provided, it has been\ndetermined that you have complied 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\n\n120196004_Final Order_12022019_text.pdf\n\nDecember 2, 2019\nMr. John B. Hess\nChief Executive Officer\nHess Corporation\n1185 Avenue of the Americas\nNew York, New York 10036\nRe: CPF No. 1-2019-6004\nDear Mr. Hess:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Hess Corporation to comply with the\npipeline safety regulations. When the terms of the compliance order have been completed, as\ndetermined by the Director, Eastern Region, this enforcement action will be closed. Service of\nthe Final Order by certified mail is effective upon the date of mailing, as provided under 49\nC.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. Alan Lindsey, Senior Legal Counsel, Hess Corporation, 1501 McKinney Street,\nHouston, Texas 77010\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 )\nHess Corporation, ) CPF No. 1-2019-6004\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn January 22 and 29, 2018, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Hess Corporation’s\n(Hess or Respondent), North Jersey Pipeline system located in New Jersey. Hess operates 23.49\nmiles of 10-inch and 14-inch pipe from Bayonne, New Jersey to Bogota and Edgewater, in\nBergen and Essex counties, New Jersey. The pipeline transports oil to four receiving locations,\nincluding two Public Service Enterprise Group power plants and two Hess terminal facilities.\nThe pipeline was constructed in the early 1970s, and has been out of service since August 2005.\nThe line has been purged, cleaned and filled with nitrogen, but Hess continues to maintain the\nline for potential future use.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated May 6, 2019, a Notice of Probable Violation and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Hess had\ncommitted three violations of 49 C.F.R. Part 195 and proposed ordering Respondent to take\ncertain measures to correct the alleged violations.\nAfter requesting and receiving an extension of time to respond, Hess responded to the Notice by\nletter dated August 5, 2019 (Response). The company did not contest the allegations of\nviolation, but provided information concerning the corrective actions it had taken and agreed to\ncomplete the proposed compliance actions. Respondent also requested modification to the\nproposed compliance actions. Respondent did not request a hearing and therefore has waived its\nright to one.\nFINDINGS OF VIOLATION\nIn its Response, Hess did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (May 6, 2019) (on file with PHMSA), at 1.\n\n\n\nCPF No. 1-2019-6004\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.567(c), which states:\n§ 195.567 Which pipelines must have test leads and what must I do to\ninstall and maintain the leads?\n(a) …\n(c) Maintenance. You must maintain the test lead wires in a condition\nthat enables you to obtain electrical measurements to determine whether\ncathodic protection complies with § 195.571.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.567(c) by failing to maintain test\nlead wires on its North Jersey Pipeline in a condition that could allow electrical measurements to\nbe taken to determine whether cathodic protection complies with § 195.571. Specifically, the\nNotice alleged that PHMSA reviewed cathodic protection annual survey records for 2016 and\n2017. These records indicated that in 2016 and 2017 about 9 percent and 13 percent of the test\npoints, respectively, could not be tested as they could not be located, were damaged, or had\nmissing test wires.\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. § 195.567(c) by failing to maintain\ntest lead wires on its North Jersey Pipeline in a condition that could allow electrical\nmeasurements to be taken to determine whether cathodic protection complies with § 195.571.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.573(e), which states:\n§ 195.573 What must I do to monitor external corrosion control?\n(a) …\n(e) Corrective Action. You must correct any identified deficiency in\ncorrosion control as required by § 195.401(b). However, if the deficiency\ninvolves a pipeline in an integrity management program under § 195.452,\nyou must correct the deficiency as required by § 195.452(h).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.573(e) by failing to correct\ncorrosion control deficiencies for its North Jersey Pipeline that were identified in its 2016 and\n2017 cathodic protection system annual survey reports. Specifically, the Notice alleged that\nwhen PHMSA reviewed records of 2016 and 2017 cathodic protection annual surveys and\nrectifier inspections, the records demonstrated numerous deficiencies in corrosion control. These\ndeficiencies included failure to meet the -850 mV criteria for cathodic protection, and failure to\nmaintain Rectifier #1 and the associated ground bed in proper working order.\nThe 2016 and 2017 annual survey reports indicated about 26 percent and 31 percent of total test\npoints, respectively, had pipe-to-soil potentials less negative than -850 mV. The reports also\ndemonstrated that the ground bed at Rectifier #1 was depleted, with indications of inadequate\nperformance since April 21, 2015. The rectifier was turned off in May of 2016, and repairs had\nnot been completed as of the November 2017 annual survey report.\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. § 195.573(e) by failing to correct\n\n\n\nCPF No. 1-2019-6004\nPage 3\ncorrosion control deficiencies for its North Jersey Pipeline that were identified in its 2016 and\n2017 cathodic protection system annual survey reports.\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:\nIf the pipeline is located: Onshore…………………………. Then the frequency of inspection is:\nAt least once every 3 calendar\nyears, but with intervals not\nexceeding 39 months\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.583(a) by failing to inspect each\npipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric\ncorrosion at least once every three calendar years, but with intervals not exceeding 39 months.\nSpecifically, Hess exceeded the three calendar year interval requirement between 2012 and 2016,\nand failed to perform an adequate atmospheric corrosion inspection during its 2016 atmospheric\ncorrosion inspection of its North Jersey Pipeline.\nDuring the inspection, the PHMSA inspector reviewed Hess’s 2016 atmospheric corrosion\ninspection report from its third-party consultant, dated August 12, 2016. The report stated that a\nvisual inspection of the aboveground piping in the North Jersey Pipeline system was performed\non April 19, 2016. The report also stated that the last inspection had been performed on\nDecember 11, 2012. Based on this information, atmospheric corrosion inspections were\nconducted during the 2012 and 2016 calendar years, which fails to meet the requirement of\n§ 195.583(a) by over three months.\nIn addition to exceeding the interval requirement, Hess failed to perform an adequate\natmospheric corrosion inspection during 2016. The 2016 report noted locations where piping\nunderneath failed coating still needed to be inspected for corrosion damage, as the visual\ninspection performed did not include any removal of inspection barriers or up-close\nexaminations. The report also identified a pipeline joint that needed corrosion product removal\nand investigation to determine remaining wall thickness and service life. Overall, the visual\ninspection performed failed to adequately assess the presence and extent of atmospheric\ncorrosion on these pipeline segments.\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\npipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric\ncorrosion at least once every three calendar years, but with intervals not exceeding 39 months.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n\n\n\nCPF No. 1-2019-6004\nPage 4\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. §§ 195.567(c), 195.573(e), and 195.583(a), respectively. Under 49\nU.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who\nowns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601.\nRegarding the Proposed Compliance Order generally, Hess stated that it is considering\nabandoning the system, and therefore requested that the proposed compliance order be modified\n“i) to allow for abandonment as a remedy for the alleged compliance issues; and ii) to trigger the\n180-day compliance periods from a decision to reopen by Hess or any successor in interest to the\nsystem.”\nIf Hess permanently abandons the system pursuant to § 195.402(c)(10), the proposed compliance\nitems would no longer be necessary to comply with the pipeline safety regulations. I therefore\nfind it appropriate to amend the Compliance Order to allow Hess to abandon the system in lieu\nof completing the compliance actions. Hess must notify PHMSA of its decision to abandon\nwithin 60 days from issuance of the Final Order, and the abandonment must be completed 30\ndays later. Absent abandonment, however, I do not agree that the terms of the Compliance Order\nshould be amended to apply only after Hess or any successor decides to restart the currently idled\nsystem. Such a modification would permit Respondent’s pipeline system to remain out of\ncompliance for an indefinite period of time. Therefore, the second modification requested by\nHess is denied. Respondent must promptly remediate the identified violations unless it abandons\nthe pipeline.\nWith regard to the violation of § 195.567(c) (Item 1), Respondent stated that it had conducted\ncathodic protection surveys of the system between February 12 and 14, 2019. It admitted,\nhowever, that several test points could not be tested because they could not be accessed, could\nnot be located, were damaged or demolished, or had missing test wires.\nHess has not demonstrated that it has repaired or replaced all damaged or missing test\nstations/leads, nor did it provide adequate justification as to why such repair or replacement\nwould not be necessary for determining the cathodic protection's compliance with § 195.571. I\ntherefore find that Hess has not satisfied the compliance terms for Item 1, which are included\nbelow.\nWith regard to the violation of § 195.573(e) (Item 2), Hess indicated repairs of the Rectifier # 1\nground bed had been completed. It also stated that it had not brought all cathodic protection\npipe-to-soil potentials along its North Jersey Pipeline into compliance with the applicable\ncathodic protection criteria, with approximately 10 percent of the valid test points having\n“structure-electrolyte potentials less negative than -0.850 volts with respect to a copper/copper\nsulfate reference electrode.”\nWhile Hess states that it has completed the repairs on Rectifier #1, it must provide\ndocumentation to the Region demonstrating that the repairs are complete. It must also complete\nan electrical survey of the entire North Jersey Pipeline to determine that the cathodic protection\n\n\n\nCPF No. 1-2019-6004\nPage 5\nsystem complies with § 195.571. I therefore find that Hess has not satisfied the compliance\nactions for Item 2, which are included below.\nWith regard to the violation of § 195.583(a) (Item 3), Hess did not provide any additional\ninformation regarding actions performed relevant to the proposed compliance order. Therefore, I\nfind that Hess has not satisfied the compliance actions for Item 3, which are included below.\nFor the above reasons, the Compliance Order is modified as set forth below.\nPursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is\nordered to take the following actions to ensure compliance with the pipeline safety regulations\napplicable to its operations:\n1. 2. 3. 4. 5. With respect to the violation of § 195.567(c) (Item 1), Respondent must:\na. Complete the repair or replacement of all damaged or missing electrical test\nleads for external corrosion control along its North Jersey Pipeline.\nb. Alternatively, if the test lead is not needed for external corrosion control\nmonitoring, Hess must provide justification for removing the test lead in\naccordance with § 195.567.\nc. This action must be completed within 180 days of issuance of the Final Order.\nWith respect to the violation of § 195.573(e) (Item 2), Respondent must:\na. Complete the repair of its Rectifier # 1 ground bed and bring all cathodic\nprotection pipe-to-soil potentials along its North Jersey Pipeline into\ncompliance with the applicable criteria for cathodic protection.\nb. Conduct an electrical survey of the entire North Jersey Pipeline to determine\nthat the cathodic protection system complies with § 195.571.\nc. These actions must be completed within 180 days of issuance of the Final\nOrder.\nWith respect to the violation of § 195.583(a) (Item 3), Respondent must:\na. Conduct an adequate atmospheric corrosion inspection of the entire North\nJersey Pipeline system and mitigate any atmospheric corrosion found as\nrequired by § 195.583(c).\nb. This action must be completed within 90 days of issuance of the Final Order.\nDocumentation demonstrating compliance with Items 1-3 above must be submitted to\nRobert Burrough, Director, Eastern Region, Pipeline and Hazardous Materials Safety\nAdministration, 840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628 for\nreview within 210 days of issuance of the Final Order.\nIn lieu of completing the above requirements in Items 1 through 4, Hess may elect to\nabandon the pipeline system in its entirety. This abandonment of the system must be\ncompleted within 90 days from issuance of the Final Order. Hess must notify\nPHMSA of its intention to abandon the system within 60 days from issuance of the\nFinal Order.\n\n\n\nCPF No. 1-2019-6004\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.\nIt is requested (not mandated) that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to the\nDirector. It is requested that these costs be reported in two categories: (1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated\nwith replacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 2, 2019\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":19506}