DELAWARE PIPELINE COMPANY, LLC — Notice of Probable Violation

party submissionOfficial PDF12023062NOPV_Operator Response to Notice_04262024_(22-234212).pdf#

case documentOfficial PDF12023062NOPV_PCP_12282023_(22-234212).pdf#

case documentOfficial PDF12023062NOPV_PCP_12282023_(22-234212)_text.pdf#

12023062NOPV_Final Order_04082025_(22-234212)_text.pdf, page 1Official PDFApril 8, 2025 VIA ELECTRONIC MAIL TO:jim.fedena@pbfenergy.com Mr. Jim Fedena Senior Vice President, Logistics Delaware Pipeline Company LLC 1 Sylvan Way, 2nd floor Parsippany, New Jersey 07054 Re: 1-2023-062-NOPV Dear Mr. Fedena: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation and assesses a Civil Penalty in the amount of $50,200. When the civil penalty has been paid and the terms of the compliance order are completed, as determined by the Director, Eastern Region, this enforcement action will be closed. Service of the Final Order by e-mail is effective upon the date of transmission and acknowledgement of receipt as provided under 49 CFR § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure (Final Order and NOPV) cc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA CONFIRMATION OF RECEIPT REQUESTED#

12023062NOPV_Final Order_04082025_(22-234212)_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Delaware Pipeline Company, LLC, ) ) ) CPF No. CPF 1-2023-062-NOPV Respondent. ) ____________________________________) FINAL ORDER From March 28 to March 29, 2023, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an integrated inspection of Delaware Pipeline Company, LLC’s (DPC or Respondent) pipeline facilities. As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated October 18, 2023, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 CFR § 190.207, the Notice proposed finding that DPC had violated 49 CFR § 195.583(a) and proposed assessing a penalty of $50,200. DPC responded to the Notice by letter dated April 26, 2024 (Response). In its Response, DPC contested Item 1. Respondent did not request a hearing and therefore has waived its right to one. FINDING OF VIOLATION The Notice alleged that Respondent violated 49 CFR Part 195 as follows: Item 1: The Notice alleged that Respondent violated § 195.583(a) which states: § 195.583 What must I do to monitor atmospheric corrosion control? (a) You must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion, as follows:#

12023062NOPV_Final Order_04082025_(22-234212)_text.pdf, page 3If the pipeline Then the frequency of inspection is: located: Onshore At least once every 3 calendar years, but with intervals not exceeding 39 months. Offshore At least once each calendar year, but with intervals not exceeding 15 months. The Notice alleged that Respondent violated § 195.583(a) by tailing to montor and conduct inspections on portions of its pipeline that are exposed to the atmosphere for evidence of atmospheric corrosion. Specifically, the Notice alleged that PHMSA inspectors observed multiple sections of pipe in subsurface vaults that had evidence of corrosion, inadequate coating and coating deterioration.' The first section involved pipe in subsurface vaults upstream and downstream of block valves #297 and #208. In this section, inspectors observed corrosion and inadequate protective coating. The other pipes at issue were located at block valves #203 and #210, where an inspector also observed corrosion and coating deterioration.? Following inspection, PHMSA requested records demonstrating that DPC had been monitoring these sections for atmospheric corrosion in accordance with the regulation. However, DPC failed to provide such records." PHMSA also requested DPC's written procedures requiring pipe in subsurface vaults that is exposed to the atmosphere to be monitored under an atmospheric corrosion program, but DPC was unable to provide such procedures. 4 In its Response, DPC contested Item 1, but did not assert that it had inspected the sections of pipe at issue. Instead, DPC stated it had not conducted inspections on these sections of pipe in vaults because the vaults "were generally submerged in water due to a high water table." DPC stated it "assumed the pipe in the vaults did not meet the requirements of 195.583(a) due to the impact of groundwater intrusion." DPC further explained it coated the pipe to provide additional corrosion resistance. DPC also indicated that following PHMSA's inspection it buried 1 See CPF 1-2023-062-NOPV, at 1-2. 2 Id. 3 See Eastern Region Recommendation, at 2. 4 Id. 5 Id., at 1-2. 6 Id., at 2.#

12023062NOPV_Final Order_04082025_(22-234212)_text.pdf, page 4the sections of pipe at issue7 and has performed atmospheric inspections of all vaults and exposed pipe8 in response to the Notice. Having reviewed the record, I find that Respondent failed to inspect portions of pipeline that are exposed to the atmosphere within subsurface vaults in violation of § 195.583(a). DPC failed to account for the rise and fall of the water table throughout the year, leaving its pipe exposed to the atmosphere, as observed by PHMSA during the inspection. While PHMSA appreciates DPC’s mitigation actions and subsequent monitoring of pipe following the inspection, DPC did not previously monitor the implicated sections of pipe as required. Subsurface vaults such as the sections in question may be exposed to atmospheric corrosion and are not excluded from the requirements of § 195.583(a). PHMSA Part 195 Corrosion Guidance specifically names vaults as an example for probable violations regarding § 195.583(a).9 DPC’s failure to monitor these portions of the pipeline constitutes a violation. Accordingly, based on a review of all the evidence, I find Respondent violated § 195.583(a). This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty exceeding $200,000 per violation for each day of the violation, with a maximum administrative civil penalty exceeding $2,000,000 for any related series of violations.10 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 CFR § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue doing business; the good faith of Respondent in attempting to comply with the pipeline safety regulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $50,200 for the violation cited above. Item 1: The Notice proposed a civil penalty of $50,200 for Respondent’s violation of § 195.583(a), for failing to monitor portions of the pipeline that are exposed to the atmosphere 7 Id., at Attachment 1. 8 Id., at Attachment 2. 9 See Eastern Region Recommendation at 3; See also PHMSA Part 195 Corrosion Guidance, at page 92, https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/Corrosion_Enforcement_Guidance_Part195_6_22_2016. pdf. 10 These amounts are adjusted annually for inflation. See 49 CFR § 190.223 for adjusted amounts.#

12023062NOPV_Final Order_04082025_(22-234212)_text.pdf, page 5for evidence of atmospheric corrosion. Specifically, DPC failed to monitor portions of pipelines exposed to the atmosphere within subsurface vaults. In its Response, DPC did not present any evidence or argument justifying a reduction or elimination of the proposed penalty. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $50,200 for violation of 49 CFR § 195.583(a). Based upon the foregoing, I assess a civil penalty amount of $50,200 for the violation of 49 CFR § 195.583(a). Payment of the civil penalty must be made within 20 days after receipt of this Final Order. Federal regulations (49 CFR. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire transfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845. Under 49 CFR § 190.243, Respondent may submit a Petition for Reconsideration of this Final Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. The written petition must be received no later than 20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and meet all other requirements of 49 CFR § 190.243. The terms of the order, including corrective action, remain in effect unless the Associate Administrator, upon request, grants a stay. The terms and conditions of this Final Order are effective upon service in accordance with 49 CFR § 190.5. ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#