{"operation":"document","citation":"CPF 12022016NOPV","title":"IMTT-PIPELINE — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-07-01","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.106(a), 195.402(a), 195.402(c)(13), 195.404(c)(3), 195.405(a), 195.428(a), 195.432(b), 195.452(b)(5), 195.452(i)(1), 195.452(l)(1), 195.555, 195.573(d), 195.64(c)(2)(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022016nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022016nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022016nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022016NOPV","body":"Notice of Probable Violation involving IMTT-PIPELINE. PHMSA's enforcement data identifies the cited regulations as 195.106(a),  195.402(a),  195.402(c)(13),  195.404(c)(3),  195.405(a),  195.428(a),  195.432(b),  195.452(b)(5),  195.452(i)(1),  195.452(l)(1),  195.555,  195.573(d),  195.64(c)(2)(i). The case was opened on 2022-07-01 and is reported as closed as of 2025-11-03. Proposed civil penalty: $223,400. Assessed civil penalty: $217,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022016NOPV_Closure Letter_11032025_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Closure%20Letter_11032025_(21-199001).pdf\n\n12022016NOPV_Closure Letter_11032025_(21-199001)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Closure%20Letter_11032025_(21-199001)_text.pdf\n\n12022016NOPV_Consent Agreement and Order_12282023_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Consent%20Agreement%20and%20Order_12282023_(21-199001).pdf\n\n12022016NOPV_Consent Agreement and Order_12282023_(21-199001)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Consent%20Agreement%20and%20Order_12282023_(21-199001)_text.pdf\n\n12022016NOPV_Operator Response to Notice_09272022_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Operator%20Response%20to%20Notice_09272022_(21-199001).pdf\n\n12022016NOPV_Operator RfH Settlement Meeting_09272022_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Operator%20RfH%20Settlement%20Meeting_09272022_(21-199001).pdf\n\n12022016NOPV_Operator Withdrawal of RfH_02022023_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Operator%20Withdrawal%20of%20RfH_02022023_(21-199001).pdf\n\n12022016NOPV_PCO PCP_07012022_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_PCO%20PCP_07012022_(21-199001).pdf\n\n12022016NOPV_PCO PCP_07012022_(21-199001)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_PCO%20PCP_07012022_(21-199001)_text.pdf\n\n12022016NOPV_PHC Hearing Scheduled_10132022_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_PHC%20Hearing%20Scheduled_10132022_(21-199001).pdf\n\n12022016NOPV_PHC Hearing Scheduled_10132022_(21-199001)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_PHC%20Hearing%20Scheduled_10132022_(21-199001)_text.pdf\n\n12022016NOPV_Supplemental Operator Response to Notice_02062023_(21-199001).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022016NOPV/12022016NOPV_Supplemental%20Operator%20Response%20to%20Notice_02062023_(21-199001).pdf\n\n12022016NOPV_PHC Hearing Scheduled_10132022_(21-199001)_text.pdf\n\nOctober 13, 2022\nVIA ELECTRONIC MAIL TO: sam@vnf.com and robert.burrough@dot.gov\nMs. Susan A. Olenchuk, Esq.\nCounsel for IMTT - Pipeline\nVan Ness Feldman, LLP\n1050 Thomas Jefferson Street, NW\nWashington, DC 20007\nMr. Robert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n820 Bear Tavern Road, Suite 300\nWest Trenton, NJ 08628\nRe: Notice of Hearing, IMTT Pipeline\nCPF No. 1-2022-016-NOPV\nDear Ms. Olenchuk and Mr. Burrough:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on February 15, 2023, beginning at 8:30 a.m. Eastern Time.\nThe hearing will be held at the PHMSA Eastern Region office, 820 Bear Tavern Road, Suite 103,\nWest Trenton, NJ 08628. Upon arrival at the building, attendees will be required to present photo\nidentification to security personnel. A contact phone number for the day of the hearing is (609)\n989-2171.\nAt least 10 calendar days prior to the hearing (or by February 6, 2023), both parties must submit and\nexchange any additional written materials they intend to present at the hearing and the name and\nemail address of each attendee. This information should be provided electronically. Materials not\nsubmitted by this date may be excluded. If you have any questions, please do not hesitate to contact\nme.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Mr. Richard Jurisich, Secretary and General Counsel, IMTT - Pipeline,\nrichardjurisich@imtt.com\nMr. Carlin Conner, President and Chief Executive Officer, IMTT Pipeline,\ncarlinconner@imtt.com\n\n12022016NOPV_Operator Withdrawal of RfH_02022023_(21-199001).pdf\n\n1050 Thomas Jefferson Street, NW\nSeventh Floor\nWashington, DC 20007\nwww.vnf.com\nSusan A. Olenchuk\n(202) 298-1896\nsam@vnf.com\nBy Email Only\nFebruary 2, 2023\nMs. Lawrence White, Esq.\nPresiding Official\nPipeline and Hazardous Materials Safety Administration\nUnited States Department of Transportation\n1200 New Jersey Ave., SE\nWashington, D.C. 20590\nRe: IMTT-Pipeline CPF No. 1-2022-016-NOPV\nIMTT-Bayonne CPF No. 1-2022-017-NOPV\nWithdrawal of Request for Hearing\nDear Mr. White,\nOn September 27, 2022, IMTT-Pipeline and IMTT-Bayonne (IMTT) submitted Requests for\nHearing and Preliminary Statements of Issues in response to Notices of Probable Violation, Proposed\nCivil Penalty and Proposed Compliance Order (Notice) in the above-referenced proceedings. Hearing\nis scheduled for February 15, 2023 and pre-hearing materials are due February 6, 2023. Pursuant to 49\nC.F.R. § 190.211(b), IMTT is withdrawing its Requests for a Hearing in both proceedings. On\nFebruary 6, 2023, IMTT will instead submit amended and supplemental written responses.\nThank you for your consideration in this matter.\nRespectfully submitted,\nSusan A. Olenchuk\nVan Ness Feldman, LLP\nAttorney for IMTT\nCC (by email):\nKathleen Maitland, Esq., Attorney Advisor, Office of Chief Counsel, PHMSA\nJoseph St. Peter, Esq., Attorney Advisor, Office of Chief Counsel, PHMSA\nRobert Burrough, Director, Eastern Region, PHMSA\nRichard Jurisich, Esq., Secretary and General Counsel, IMTT\nShaun Revere, Chief Operating Officer, IMTT\n\n12022016NOPV_Consent Agreement and Order_12282023_(21-199001)_text.pdf\n\nDecember 28, 2023\nVIA ELECTRONIC MAIL TO: carlinconner@imtt.com\nMr. Carlin Conner\nPresident and Chief Executive Officer\nIMTT-Pipeline\n400 Poydras Street, Suite 3000\nNew Orleans, Louisiana 77002\nCPF No. 1-2022-016-NOPV\nDear Mr. Conner:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and IMTT-Pipeline, which\nwas executed on December 13, 2023. Service of the Consent Order and Consent Agreement by\nelectronic mail is deemed effective upon the date of transmission and acknowledgement of receipt,\nor as otherwise 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: Order and Consent Agreement\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\nMr. Richard Jurisich, Esq., Secretary and General Counsel, IMTT-Pipeline,\nrichardjurisich@imtt.com\nMr. Shaun Revere, Chief Operating Officer, IMTT-Pipeline, shaunrevere@imtt.com\nMs. Susan Olenchuk, Esq., Van Ness Feldman LLP, Outside Counsel to IMTT-Pipeline\nsam@vnf.com\nCONFIRMATION OF 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 )\n)\nIMTT-Pipeline, ) CPF No. 1-2022-016-NOPV\n)\nRespondent. )\n)\nCONSENT ORDER\nBy letter dated July 1, 2022, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice) to IMTT-Pipeline (IMTT or\nRespondent).\nIn response to the Notice, Respondent contested Items 1, 2, 6, 11, and 12 in the Notice and the\nproposed civil penalty and the proposed compliance order and requested a hearing in this matter.\nRespondent also asked for the opportunity to meet informally with PHMSA to discuss the issues\nraised in its response. Respondent and PHMSA (The Parties) subsequently met to discuss the\nissues raised in the Response. As a result of those discussions, as explained in more detail below\nthe Parties agreed that two of the proposed compliance order actions have already been\ncompleted, and have agreed to modify the terms of the proposed compliance order for a\nremaining item. Respondent agreed to certain findings of violation without admission, and\nsubject to the agreed terms of the Parties, to pay a reduced civil penalty.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. IMTT is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms.\nPursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in\nthe assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49 C.F.R. § 190.223.\nThe terms and conditions of this Consent Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 28, 2023\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\nIMTT-Pipeline, ) CPF No. 1-2022-016-NOPV\n)\n)\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom May 10 through May 24, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), conducted an integrated inspection of the facilities and records of\nInternational-Matex Tank Terminals (IMTT)-Pipeline (IMTT or Respondent) and IMTT-\nBayonne’s records and facilities in Bayonne, New Jersey.1 IMTT is an interstate hazardous\nliquid pipeline with approximately 40 miles of pipeline and 117 breakout tanks.\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated July 1, 2022, a Notice of Probable Violation, Proposed Compliance Order, and\nProposed Civil Penalty (Notice), which also included warning items pursuant to 49 C.F.R. §\n190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that IMTT\ncommitted violations of provisions of 49 C.F.R. Part 195, proposed ordering Respondent to take\ncertain measures to correct the alleged violations, and proposed a civil penalty of $223,400.\nSeven probable violations (Items 3, 4, 5, 7, 8, 9, and 13) were brought as warnings, advising\nRespondent to correct the probable violations or face potential future enforcement action.\nIMTT timely responded to the Notice (after a request for extension was requested and granted by\nthe Director) on September 27, 2023 (Response).2 Respondent contested Items 1, 2, 6, 11, and\n12 in the Notice and the proposed civil penalty and the proposed compliance order and requested\na hearing in this matter. Respondent also requested to meet informally with PHMSA to discuss\nthe issues raised in the Response, stated that it was electing not to contest Items 10 and 14, and\nthat Items 3, 4, 5, 7, 8, 9, and 13 were warning items.\n1 IMTT is comprised of two PHMSA Operator Identifications (OPIDs) – IMTT-Pipeline and IMTT-Bayonne. This\nintegrated inspection also included a review of IMTT-Bayonne’s records and facilities; the companion case is CPF\n1-2022-017-NOPV.\n2 IMTT also provided an additional supplemental response to the Notice on February 6, 2023.\n\n\n\nPHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the\nResponse. As a result of those discussions, and as explained in more detail below, the Parties\nhave agreed that the proposed compliance order for Items 10 and 14 are already completed, and\nhave agreed to modify the terms of the proposed compliance order for Item 1. For Items 2, 6, 10,\n11, and 12, the parties have agreed to a reduced total civil penalty assessment of $217,200.\nIMTT withdrew its hearing request on February 2, 2023.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement, the Parties hereby\nagree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it\nreceived proper notice of PHMSA’s action in this proceeding and that the Notice states claims\nupon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and\norders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Consent Agreement by issuing an\nadministrative order (Consent Order) incorporating the terms of this Agreement. The terms of this\nAgreement constitute an offer of settlement until accepted by the Associate Administrator. Once\naccepted, the Associate Administrator will issue a Consent Order incorporating the terms of this\nAgreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except as set forth herein.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\n\n\n\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the PHMSA Eastern Regional Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as otherwise specified herein, This Agreement does not constitute a\nfinding of violation of any other federal law or regulation and may not be used in any civil\nproceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of a\nviolation of any law, rule, regulation, or requirement, except in a proceeding to enforce the\nprovisions of this agreement or in future PHMSA enforcement actions. Respondent neither\nadmits nor denies any allegation or conclusion in the Notice or this Agreement, but agrees for\npurposes of this Agreement to comply with the terms of this Agreement.\n11. Upon issuance of the Consent Order, the Parties agree to the following terms.\nII. Findings of Violation:\n12. Item 1- 49 C.F.R. § 195.106: The Notice alleged Respondent failed to determine\nthe internal design pressure of its jurisdictional pipeline segments in accordance with § 195.106.\nSpecifically, IMTT failed to use conservative yield strength and wall thickness values in §§\n195.106(b) and 195.106(c). IMTT challenged Item 1 on the grounds, in part, that it disputed the\napplicability of § 195.106 to the 12IN Linden-Bergen Point pipeline segment due to the date the\n\n\n\npipeline was constructed, and that OPS did not demonstrate that IMTT calculated internal design\npressure using assumed values for wall thickness and yield strength. IMTT requested that this\nitem be withdrawn, or in the alternative that the proposed compliance terms be revised. After\nsettlement discussions, the Parties agree to narrow the scope of the compliance order to\nappropriately apply only to pipe constructed after 1970, and remove reference to “unknown\nproperties on the pipeline” so the compliance order is limited to apply to wall thickness and pipe\ngrade. PHMSA finds a violation of § 195.106.\n13. Item 2- 49 C.F.R. § 195.402(a): The Notice alleged Respondent failed to conduct\na review of its operations, maintenance and emergency (OM&E) manual at intervals not\nexceeding 15 months, but at least once each calendar year (for 2019 and 2020) and make\nappropriate changes as necessary to ensure its manual is effective, in accordance with §\n195.402(a). IMTT contested this item and requested withdrawal of both the allegation and the\nproposed civil penalty. IMTT provided additional documentation regarding reviews of its\nOM&E and stated § 195.402(a) does not suggest an operator must explain in a revision log why\nchanges to a procedural manual were made. As a result of the additional information and records\nprovided during settlement discussions, the Parties agree to a reduced civil penalty assessment\nfor this violation. PHMSA finds a violation of § 195.402(a)\n14. Item 6- 49 C.F.R. § 195.405(a): The Notice alleged Respondent violated §\n195.405(a) by failing to maintain records demonstrating that protection provided against\nignitions arising out of static electricity, lightning, and stray currents during operations and\nmaintenance activities involving aboveground breakout tanks was done in accordance with API\nRP 2003, and failed to note in its procedural manual why compliance with all or certain\nprovisions of API RP 2003 was unnecessary for the safety of a particular breakout tank. IMTT\ncontested Item 6 and requested that the proposed civil penalty be withdrawn. IMTT explained\nthat consistent with API RP 2003 that Tank 7640 rests on a grade-level foundation and,\ntherefore, is protected from the risk of static electricity, and that under NFPA 780 is protected\nfrom ignition caused by lightning. As a result of the settlement discussions the Parties agreed\nthat a singular occurrence of violation of § 195.405(a) is appropriate as based on the facts, and\nthe Parties agreed to a reduced civil penalty assessment for this violation. PHMSA finds a\nviolation of § 195.405(a)\n15. Item 10- 49 C.F.R. § 195. 452(l)(1): The Notice alleged Respondent violated §\n195.452(l)(1) for failing to maintain records that demonstrate compliance with the requirements\nof subpart F. Specifically, IMTT failed to maintain documents of the evaluation of the capability\nof its leak detection required by § 195.452(i)(3). The Notice proposed a civil penalty and a\nproposed compliance order for this Item 10. IMTT did not contest the alleged violation or the\nassessment of the civil penalty, but stated it was submitting under separate cover information\nshowing its compliance with the proposed compliance order, and requested the Director find that\nthe compliance action had already been completed. As a result of the settlement discussions and\nadditional documentation provided during such, the Parties agree the proposed compliance order\nin this matter has already been completed and to the assessment of the proposed civil penalty for\nthis violation. PHMSA finds a violation of § 195.452(l)(1).\n\n\n\n16. Item 11- 49 C.F.R. § 195. 452(a)(1): The Notice alleged Respondent failed to\ntake measures to prevent and mitigate the consequences of a pipeline failure that could affect a\nhigh consequence area. Specifically, during the course of calendar years 2019 and 2020, IMTT\nfailed to implement preventative and mitigative actions as required pursuant to § 195.452(i)(1).\nIMTT contested Item 11 and requested that the proposed civil penalty be withdrawn. IMTT\nacknowledged that it did not provide completed copies of Form IMP-701B during the inspection,\nhowever, it explained it believed it did provide records demonstrating implementation of\npreventative and mitigative measures. After engaging in settlement discussions, PHMSA finds a\nviolation of § 195.452(a)(1).\n17. Item 12- 49 C.F.R. § 195.555: The Notice alleged Respondent violated §\n195.555 by failing to require and verify supervisors maintain a thorough knowledge of that\nportion of corrosion control procedures established under § 195.402(c)(3) for which they are\nresponsible for ensuring compliance. IMTT contested the alleged violation and the proposed\ncivil penalty. IMTT explained the purpose of § 195.555 is to ensure that individuals who direct\nothers to carry out corrosion control procedures have sufficient knowledge of the corrosion\ncontrol procedures, and that IMTT relies on a third-party corrosion control contractor to perform\ncorrosion control activities on its pipeline facilities. Respondent stated during the inspection it\ndid not have an employee with the title corrosion control “supervisor,” but did have a corrosion\ncontrol specialist who was being trained for such role and who worked with the third-party\ncontractor, and who earned a NACE certificate for CP2-Cathodic Protection – Technician. After\nengaging in settlement discussions, PHMSA finds a violation of § 195.555.\n18. Item 14- 49 C.F.R. § 195.64(c)(2)(i): The Notice alleged Respondent failed to\nnotify PHMSA of a change in primary entity responsible for managing or administering a safety\nprogram required by this part covering pipeline facilities operated under multiple OPIDs in\nviolation of § 195.64. Specifically, IMTT failed to notify PHMSA which OPID, IMTT or IMTT-\nBayonne, is the primary OPID for managing IMTT’s safety program. IMTT did not contest the\nalleged violation and stated it has since provided the notification required under § 195.64,\nindicating its compliance with the proposed compliance order. IMTT requested PHMSA find\nthat the proposed compliance order for Item 14 has already been completed. PHMSA finds a\nviolation of 195.64(c)(2)(i).\nIII. Warning Items:\n19. Item 3- 49 C.F.R. § 195.402(c)(13): The Notice alleged IMTT failed to conduct\nperiodic reviews of the work done by operator personnel to determine the effectiveness of the\nprocedures used in normal operation and maintenance and taking corrective action where\ndeficiencies are found, in accordance with § 195.402(c)(13).\n20. Item 4- 49 C.F.R. § 195.404(c)(3): The Notice alleged Respondent failed to\nmaintain adequate records of each inspection or test required by Part 195 subpart F for at least two\nyears or until the next inspection or test is performed, whichever is longer. Specifically, IMTT\nfailed to maintain adequate records in calendar years 2019 and 2020 for conducting mainline valve\ninspections required by § 195.420(b).\n\n\n\n21. Item 5- 49 C.F.R. § 195.404(c)(3): The Notice alleged Respondent failed to\nmaintain adequate records of each inspection or test required by Part 195 subpart F for at least\ntwo years or until the next inspection or test is performed, whichever is longer. Specifically,\nIMTT failed to maintain adequate external visual (monthly) breakout tank inspection records for\none of its tanks for calendar year 2020.\n22. Item 7- 49 C.F.R. § 195.428(a): The Notice alleged Respondent failed to inspect\nand test each pressure limiting device, relief valve, pressure regulator, or other item of pressure\ncontrol equipment at intervals not exceeding 15 months, but at least once each calendar year, to\ndetermine that it is functioning properly, is in good mechanical condition, and is adequate from\nthe standpoint of capacity and reliability of operation for the service in which it is used.\nSpecifically, IMTT failed in one instance to inspect and test an overpressure safety device in\n2020.\n23. Item 8- 49 C.F.R. § 195.432(b): The Notice alleged Respondent failed to inspect\nthe physical integrity of in-service atmospheric and low-pressure steel aboveground breakout\ntanks according to API 653 (incorporated by reference into 49 C.F.R. Part 195, see\n195.3(b)(19)), as prescribed in § 195.432(b). Specifically, IMTT did not perform external visual\n(monthly) breakout tank inspections for breakout tank 7640 for February through December\n2019, as specified under API Standard 653 Section 6.3.1.3 – Routine In-Service Inspections.\n24. Item 9- 49 C.F.R. § 195.452(b)(5): The Notice alleged Respondent failed to\nimplement and follow its Integrity Management program. Specifically, IMTT failed to follow\nLiquid Integrity Management Program Procedure Version 1 dated June 2018 Section 8.4\nregarding performance metrics for calendar year 2020.\n25. Item 13- 49 C.F.R. § 195.473(d): The Notice alleged Respondent failed to\ninspect each cathodic protection system used to control corrosion on the bottom of an\naboveground breakout tank to ensure that operation and maintenance of the system are in\naccordance with API RP 651 (incorporated by reference, see §195.3) and did not note in its\ncorrosion control procedures why complying with all or certain operation and maintenance\nprovisions of API RP 651 is not necessary for the safety of the tank. Specifically, IMTT failed to\ninspect the breakout tank cathodic protection system for tank 7640 during calendar years 2019\nand 2020.\n26. For Warning Items 3, 4, 5, 7, 8, 9, and 13, if OPS finds a violation of these\nprovisions in a subsequent inspection, Respondent may be subject to future enforcement action.\nIV. Civil Penalty:\n27. Item 2: The Notice proposed a civil penalty of $31,400 for alleged violation.\nIMTT requested withdrawal of the proposed civil penalty. IMTT provided additional\ndocumentation regarding reviews of its OM&E and stated § 195.402(a) does not suggest an\noperator must explain in a revision log why changes to a procedural manual were made. As a\nresult of the additional information and records provided during settlement discussions (namely a\n\n\n\nprintout of a log from its software that was not provided during the inspection that reflects an\n“Annual O&M Review” and revisions that were made for “Bayonne Pipeline” during May\n2019), Eastern Region accepts that an annual review of IMTT’s OM&E manual was conducted\nduring that calendar year. For purposes of the Agreement, the Director agrees that a single\noccurrence (adjustment to the gravity consideration) of violation for calendar year 2020 is\nappropriate. Respondent agrees, without admission, to pay a reduced civil penalty in the amount\nof $31,100 for the violation in Item 2.\n28. Item 6: The Notice proposed a civil penalty of $64,600 for this alleged violation.\nIMTT requested that the proposed civil penalty be withdrawn. As a result of the settlement\ndiscussions the Parties agree that a singular (gravity consideration reductions), continuing\noccurrence of violation of § 195.405(a) is appropriate as based on the underlying facts of this\nallegation related to a single breakout tank. Respondent agrees, without admission, to pay a\nreduced civil penalty in the amount of $58,700 for the violation in Item 6.\n29. Item 10: The Notice proposed a civil penalty of $64,600 for this alleged violation.\nRespondent agrees, without admission, to pay the proposed civil penalty in the amount of\n$64,600 for the violation in Item 10.\n30. Item 11: The Notice proposed a civil penalty of $31,400 for this alleged violation.\nIMTT requested that the proposed civil penalty be withdrawn. As a result of settlement\ndiscussions, Respondent agrees, without admission, to pay the proposed civil penalty in the\namount of $31,400 for the violation in Item 11.\n31. Item 12: The Notice proposed a civil penalty of $31,400 for this alleged violation.\nIMTT contested the proposed civil penalty. As a result of settlement discussions, Respondent\nagrees, without admission, to pay the proposed civil penalty in the amount of $31,400 for the\nviolation in Item 12.\n32. Respondent shall pay a total civil penalty in the amount of $217,200, pursuant to\nthe payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20 days from\nthe Effective Date of this Agreement.\nV. Compliance Order:\n33. Item 1: The Notice proposed certain compliance actions to address the non-\ncompliance alleged in Item 1. As discussed above, Respondent requested, and the Parties agreed\nto, a revised compliance order for this item as follows:\nIMTT must provide records justifying its determination of internal design pressure\nfor the following segments in accordance with § 195.106(a):\n1. 12IN Bergen Point – 5th Street Terminal\n2. 12IN Linden – Bergen Point (for segments constructed after 1970)\n3. 16IN 5th Street Terminal\n\n\n\nIf IMTT is unable to provide adequate records to support an internal design calculation\nthat complies with § 195.106(a)-(c), IMTT must instead develop and submit a work plan\nfor gathering adequate data to verify any unknown values for wall thickness and yield\nstrength for the 12IN Bergen Point – 5th Street Terminal segment and the 16IN 5th Street\nTerminal segment and the portions of the 12IN Linden – Bergen Point segment\nconstructed after 1970, for the Director’s review and approval. IMTT must complete this\ncompliance order action within 90 days of the Effective Date.\n34. Item 10: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in Item 10. The proposed compliance order would have required IMTT\ncomplete a leak detection evaluation on its associated pipeline system, in accordance with §\n195.452(i)(3), within 90 days of receipt of a Final Order in this matter. As discussed above, based\non additional records submitted by IMTT during settlement discussions, namely a September 8,\n2021, leak detection evaluation report, the Parties agreed that the proposed compliance order for\nthis Item 10 has already been completed.\n35. Item 14: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in Item 14. The proposed compliance order would have required Respondent\nto submit notification to PHMSA through the national registry that its OPID’s - 32062 IMTT-\nPipeline and OPID 39149 IMTT-Bayonne operate under a single Safety Program Relationship,\nwith identification of the primary OPID responsible for managing the safety program, within 30\ndays of receipt of the Final Order. As discussed above, based on a review of current PHMSA\nrecords during settlement discussions, the Parties agree that the proposed compliance order for\nthis Item 14 to make the required notification to PHMSA has already been completed.\nVI. Enforcement:\n36. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $257,664 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or if appealed, in accordance with decisions of the Associate\nAdministrator. The maximum civil penalty amounts are adjusted annually for inflation. See 49\nC.F.R. § 190.223.\nVII. Dispute Resolution:\n37. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including but not limited to any decision of the Director. If\nRespondent and the Director are unable to informally resolve the dispute within 15 calendar days\nafter the dispute is first raised, in writing, to the Director, Respondent may submit a written\nrequest for a determination resolving the dispute from the Associate Administrator for Pipeline\nSafety, PHMSA. Such request must be made in writing and provided to the Director, counsel for\nthe Eastern Region, and to the Associate Administrator for Pipeline Safety, no later than 10\ncalendar days from the 15-day deadline for informal resolution referenced in this paragraph.\nAlong with its request, Respondent must provide the Associate Administrator with all\n\n\n\ninformation Respondent believes is relevant to the dispute. Decisions of the Associate\nAdministrator under this paragraph will constitute final agency action. The existence of a dispute\nand PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any\nterm or timeframe for completion of any work to be performed under this Agreement during the\npendency of the dispute resolution process, except as agreed by the Director or the Associate\nAdministrator in writing, or ordered by a court of competent jurisdiction.\nVIII. Effective Date:\n38. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nIX. Recordkeeping and Information Disclosure:\n39. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed. For any reports, plans, or\nother deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent\nmay assert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be submitted to\nPHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must\nmark the claim of confidentiality in writing on each page, and include a statement specifying the\ngrounds for each claim of confidentially. PHMSA determines release of any information\nsubmitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of\nInformation Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations\nand Executive Orders.\nX. Review and Approval Process\n40. With respect to any submission under Paragraph 33 (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent a written\nnotice of the deficiencies. Respondent will correct all deficiencies within the time specified by\nthe Director and resubmit it for approval.\nXI. Modification:\n41. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\n\n\n\nXII. Ratification:\n42. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n43. The Parties hereby agree to all conditions and terms of this Agreement.\nXIII. Termination:\n44. This Agreement will remain in effect until the Compliance Order in Paragraph 33\nof Section V is satisfied, as determined by the Director. The Agreement shall not terminate until\nthe Director confirms, in writing, that the Agreement is terminated in accordance with this\nparagraph. Nothing in this Agreement prevents Respondent from completing any of the\nobligations earlier than the deadlines provided for in this Agreement.\n\n\n\nFor IMTT-Pipeline:\n___________________________________\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Eastern Region, Office of Pipeline Safety\n________________________\nDate\n\n12022016NOPV_Closure Letter_11032025_(21-199001)_text.pdf\n\nVIA ELECTRONIC MAIL: carlinconner@imtt.com\nNovember 3, 2025\nMr. Carlin Conner\nPresident and Chief Executive Officer\nIMTT-Pipeline\n400 Poydras Street, Suite 3000\nNew Orleans, Louisiana 70130\nRE: CPF 1-2022-016-NOPV\nDear Mr. Conner:\nOn December 28, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued a Consent Order incorporating the terms of the Consent Agreement between PHMSA and\nIMTT-Pipeline (IMTT) in the above-referenced case. The Consent Agreement and Order\nincluded a Compliance Order and a Civil Penalty assessment.\nBased on our review of the documentation provided, and confirmation of payment of the civil\npenalty, it has been determined that IMTT has complied with the terms of the Consent Agreement\nand 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, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Will Simmons, Regulatory Compliance Manager, IMTT, willsimmons@imtt.com","truncated":false,"body_characters":39625}