{"operation":"document","citation":"CPF 12023062NOPV","title":"DELAWARE PIPELINE COMPANY, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-12-28","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023062nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023062nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023062nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12023062NOPV","body":"Notice of Probable Violation involving DELAWARE PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulation as 195.583(a). The case was opened on 2023-12-28 and is reported as closed as of 2025-04-23. Proposed civil penalty: $50,200. Assessed civil penalty: $50,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12023062NOPV_Final Order_04082025_(22-234212).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023062NOPV/12023062NOPV_Final%20Order_04082025_(22-234212).pdf\n\n12023062NOPV_Final Order_04082025_(22-234212)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023062NOPV/12023062NOPV_Final%20Order_04082025_(22-234212)_text.pdf\n\n12023062NOPV_Operator Response to Notice_04262024_(22-234212).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023062NOPV/12023062NOPV_Operator%20Response%20to%20Notice_04262024_(22-234212).pdf\n\n12023062NOPV_PCP_12282023_(22-234212).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023062NOPV/12023062NOPV_PCP_12282023_(22-234212).pdf\n\n12023062NOPV_PCP_12282023_(22-234212)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023062NOPV/12023062NOPV_PCP_12282023_(22-234212)_text.pdf\n\n12023062NOPV_Final Order_04082025_(22-234212)_text.pdf\n\nApril 8, 2025\nVIA ELECTRONIC MAIL TO:jim.fedena@pbfenergy.com\nMr. Jim Fedena\nSenior Vice President, Logistics\nDelaware Pipeline Company LLC\n1 Sylvan Way, 2nd floor\nParsippany, New Jersey 07054\nRe: 1-2023-062-NOPV\nDear Mr. Fedena:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a Civil Penalty in the amount of $50,200.\nWhen the civil penalty has been paid and the terms of the compliance order are completed, as\ndetermined by the Director, Eastern Region, this enforcement action will be closed. Service of\nthe Final Order by e-mail is effective upon the date of transmission and acknowledgement of\nreceipt as provided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure (Final Order and NOPV)\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\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____________________________________\n)\nIn the Matter of )\n)\nDelaware Pipeline Company, LLC, )\n)\n) CPF No. CPF 1-2023-062-NOPV\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom March 28 to March 29, 2023, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an integrated inspection of Delaware Pipeline Company, LLC’s (DPC or\nRespondent) pipeline facilities.\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated October 18, 2023, a Notice of Probable Violation and Proposed Compliance\nOrder (Notice). In accordance with 49 CFR § 190.207, the Notice proposed finding that DPC\nhad violated 49 CFR § 195.583(a) and proposed assessing a penalty of $50,200.\nDPC responded to the Notice by letter dated April 26, 2024 (Response). In its Response, DPC\ncontested Item 1. Respondent did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 CFR Part 195 as follows:\nItem 1: The Notice alleged that Respondent violated § 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 to the\natmosphere for evidence of atmospheric corrosion, as follows:\n\n\n\nIf the pipeline\nThen the frequency of inspection is:\nlocated:\nOnshore\nAt least once every 3 calendar years, but with intervals not exceeding 39\nmonths.\nOffshore\nAt least once each calendar year, but with intervals not exceeding 15\nmonths.\nThe Notice alleged that Respondent violated § 195.583(a) by tailing to montor and conduct\ninspections on portions of its pipeline that are exposed to the atmosphere for evidence of\natmospheric corrosion. Specifically, the Notice alleged that PHMSA inspectors observed\nmultiple sections of pipe in subsurface vaults that had evidence of corrosion, inadequate coating\nand coating deterioration.' The first section involved pipe in subsurface vaults upstream and\ndownstream of block valves #297 and #208. In this section, inspectors observed corrosion and\ninadequate protective coating. The other pipes at issue were located at block valves #203 and\n#210, where an inspector also observed corrosion and coating deterioration.?\nFollowing inspection, PHMSA requested records demonstrating that DPC had been monitoring\nthese sections for atmospheric corrosion in accordance with the regulation. However, DPC\nfailed to provide such records.\" PHMSA also requested DPC's written procedures requiring pipe\nin subsurface vaults that is exposed to the atmosphere to be monitored under an atmospheric\ncorrosion program, but DPC was unable to provide such procedures. 4\nIn its Response, DPC contested Item 1, but did not assert that it had inspected the sections of\npipe at issue. Instead, DPC stated it had not conducted inspections on these sections of pipe in\nvaults because the vaults \"were generally submerged in water due to a high water table.\" DPC\nstated it \"assumed the pipe in the vaults did not meet the requirements of 195.583(a) due to the\nimpact of groundwater intrusion.\" DPC further explained it coated the pipe to provide\nadditional corrosion resistance. DPC also indicated that following PHMSA's inspection it buried\n1 See CPF 1-2023-062-NOPV, at 1-2.\n2 Id.\n3 See Eastern Region Recommendation, at 2.\n4 Id.\n5 Id., at 1-2.\n6 Id., at 2.\n\n\n\nthe sections of pipe at issue7 and has performed atmospheric inspections of all vaults and\nexposed pipe8 in response to the Notice.\nHaving reviewed the record, I find that Respondent failed to inspect portions of pipeline that are\nexposed to the atmosphere within subsurface vaults in violation of § 195.583(a). DPC failed to\naccount for the rise and fall of the water table throughout the year, leaving its pipe exposed to the\natmosphere, as observed by PHMSA during the inspection. While PHMSA appreciates DPC’s\nmitigation actions and subsequent monitoring of pipe following the inspection, DPC did not\npreviously monitor the implicated sections of pipe as required. Subsurface vaults such as the\nsections in question may be exposed to atmospheric corrosion and are not excluded from the\nrequirements of § 195.583(a). PHMSA Part 195 Corrosion Guidance specifically names vaults\nas an example for probable violations regarding § 195.583(a).9 DPC’s failure to monitor these\nportions of the pipeline constitutes a violation. Accordingly, based on a review of all the\nevidence, I find Respondent violated § 195.583(a).\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty exceeding\n$200,000 per violation for each day of the violation, with a maximum administrative civil\npenalty exceeding $2,000,000 for any related series of violations.10\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 CFR § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $50,200 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $50,200 for Respondent’s violation of\n§ 195.583(a), for failing to monitor portions of the pipeline that are exposed to the atmosphere\n7 Id., at Attachment 1.\n8 Id., at Attachment 2.\n9 See Eastern Region Recommendation at 3; See also PHMSA Part 195 Corrosion Guidance, at page 92,\nhttps://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/Corrosion_Enforcement_Guidance_Part195_6_22_2016.\npdf.\n10 These amounts are adjusted annually for inflation. See 49 CFR § 190.223 for adjusted amounts.\n\n\n\nfor evidence of atmospheric corrosion. Specifically, DPC failed to monitor portions of pipelines\nexposed to the atmosphere within subsurface vaults. In its Response, DPC did not present any\nevidence or argument justifying a reduction or elimination of the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $50,200 for violation of 49 CFR § 195.583(a).\nBased upon the foregoing, I assess a civil penalty amount of $50,200 for the violation of 49 CFR\n§ 195.583(a).\nPayment of the civil penalty must be made within 20 days after receipt of this Final Order.\nFederal regulations (49 CFR. § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S.\nTreasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,\nOklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.\nUnder 49 CFR § 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. The written petition must be received no later than\n20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a\nstatement of the issue(s) and meet all other requirements of 49 CFR § 190.243. The terms of the\norder, including corrective action, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nCFR § 190.5.\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":10919}