{"operation":"document","citation":"CPF 120196005W","title":"ZENITH ENERGY TERMINALS HOLDINGS, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-04-11","effective_on":null,"summary":"CLOSED warning letter citing 195.403(a), 195.420(b), 195.64(c)(2)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120196005w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120196005w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120196005w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120196005W","body":"Warning Letter involving ZENITH ENERGY TERMINALS HOLDINGS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.403(a),  195.420(b),  195.64(c)(2)(ii). The case was opened on 2019-04-11 and is reported as closed as of 2019-04-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120196005W_Warning Letter_04112019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196005W/120196005W_Warning%20Letter_04112019.pdf\n\n120196005W_Warning Letter_04112019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120196005W/120196005W_Warning%20Letter_04112019_text.pdf\n\n120196005W_Warning Letter_04112019_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nApril 11, 2019\nMr. John Blanchard\nPresident\nZenith Energy Terminals\n3900 Excess Lane, Suite 700\nHouston, TX 77027\nCPF 1-2019-6005W\nDear Mr. Blanchard:\nFrom March 19 to 21, 2019, a representative of the Pipeline and Hazardous Materials Safety\nAdministration, (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Zenith\nEnergy Terminal Holdings, LLC’s (Zenith Energy) records and procedures at its Toledo Terminal\nlocated in Toledo, Ohio.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violation(s) are:\n1. § 195.64 National Registry of Pipeline and LNG Operators.\n(c) Changes. Each operator must notify PHMSA electronically through the National\nRegistry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov, of certain\nevents.\n(2) An operator must notify PHMSA of any following event not later than 60 days\nafter the event occurs:\n(ii) A change in the name of the operator\nZenith Energy failed to notify PHMSA through the National Registry of Pipeline and LNG\nOperators (National Registry) within 60 days from the effective date of the operator name change.\n\n\n\nCPF 1-2019-6005W\nDuring the inspection, the PHMSA inspector reviewed notices that had been submitted to PHMSA\nvia the National Registry. A National Registry - Operator Name Change (Type A notification)\nhad been submitted by Zenith to reflect a name change from ARC Terminals to Zenith Energy\nTerminals Holdings, LLC. The notification was dated August 21, 2018 and the effective date of\nthe operator name change was December 21, 2017. The timeframe set forth in § 195.64(c)(2)(ii)\nfor an operator’s name change is 60 days. Zenith’s notification was 183 days overdue.\nTherefore, Zenith failed to notify PHMSA through the National Registry within 60 days from the\neffective date of its name change.\n2. § 195.403 Emergency response training.\n(a) Each operator shall establish and conduct a continuing training program to\ninstruct emergency response personnel to:\n(1) Carry out the emergency procedures established under 195.402 that relate to their\nassignments;\n(2) Know the characteristics and hazards of the hazardous liquids or carbon dioxide\ntransported, including, in case of flammable HVL, flammability of mixtures with air,\nodorless vapors, and water reactions;\n(3) Recognize conditions that are likely to cause emergencies, predict the\nconsequences of facility malfunctions or failures and hazardous liquids or carbon\ndioxide spills, and take appropriate corrective action;\n(4) Take steps necessary to control any accidental release of hazardous liquid or\ncarbon dioxide and to minimize the potential for fire, explosion, toxicity, or\nenvironmental damage; and\n(5) Learn the potential causes, types, sizes, and consequences of fire and the\nappropriate use of portable fire extinguishers and other on-site fire control\nequipment, involving, where feasible, a simulated pipeline emergency condition.\nZenith failed to conduct its continuing training program to instruct operations personnel as\nprescribed in its Emergency Response Training and & Protocols, Version 2.0, Updated 12/7/2017\n(Procedures and Requirements) within its O&M Procedures.\nDuring the inspection, the PHMSA inspector reviewed Zenith’s Procedures and\nRequirements. Section C of the Emergency Response Training stated in part, “All operating and\nmaintenance personnel shall participate in emergency response training at intervals not exceeding\n15 months, but at least once each calendar year.”\nTraining records were reviewed for Zenith’s operating and maintenance personnel and it was found\nthat one Zenith employee had not been trained on Emergency Response during 2018. All other\npersonnel training records that were reviewed showed completed training for Module 13 –\nEmergency Response.\nTherefore, Zenith failed to conduct its Emergency Response Training in one instance by not\ntraining an operating and maintenance employee on emergency response training at intervals not\nexceeding 15 months, but at least once each calendar year for 2018.\n120196005W_Warning Letter_04112019_text Page 2 of 4\n\n\n\nCPF 1-2019-6005W\n3. § 195.420 Valve Maintenance.\n(b) Each operator shall, at intervals not exceeding 7 ½ months, but at least twice each\ncalendar year, inspect each mainline valve to determine that it is functioning\nproperly.\nZenith failed to inspect a mainline valve at intervals not exceeding 7½ months, but at least twice\neach calendar year, to determine that it was functioning properly, in 8 instances.\nDuring the inspection, the PHMSA inspector reviewed Zenith’s main line valve inspection\nrecords. The records indicated that mainline valve #V1 (Millard Junction) had not been inspected\nto determine that it was functioning properly at the required intervals for 8 inspection cycles from\n2015 to 2018. The records indicated only a visual inspection was conducted, and Zenith personnel\nstated during the inspection that this was due to the valve being inside another Operator’s locked\nvalve site.\nTherefore, Zenith failed in 8 instances to inspect its mainline valve #V1 at intervals not exceeding\n7½ months, but at least twice each calendar year, to determine that it was functioning properly for\nthe years 2015 through 2018.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related\nseries of violations. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to\nexceed $2,000,000 for a related series of violations. We have reviewed the circumstances and\nsupporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct the\nitem(s) identified in this letter. Failure to do so will result in Zenith Energy being subject to\nadditional enforcement action.\nPlease be advised that all material you submit in response to this enforcement action is subject to\nbeing made publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\n120196005W_Warning Letter_04112019_text Page 3 of 4\n\n\n\nCPF 1-2019-6005W\nNo reply to this letter is required. If you choose to reply, please submit all correspondence in this\nmatter to Robert Burrough, Director, PHMSA Eastern Region, 840 Bear Tavern Road, Suite 300,\nWest Trenton, NJ 08628. Please refer to CPF 1-2019-6005W on each document you submit, and\nwhenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed\nto robert.burrough@dot.gov. Larger files should be sent on a USB flash drive accompanied by the\noriginal paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120196005W_Warning Letter_04112019_text Page 4 of 4","truncated":false,"body_characters":8349}