{"operation":"document","citation":"CPF 12024003NOPV","title":"KINDER MORGAN LIQUID TERMINALS, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-03-28","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 199.105(b)(1), 199.105(b)(2), 199.225(a)(1), 199.225(a)(2)(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024003nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024003nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024003nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024003NOPV","body":"Notice of Probable Violation involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  199.105(b)(1),  199.105(b)(2),  199.225(a)(1),  199.225(a)(2)(i). The case was opened on 2024-03-28 and is reported as closed as of 2025-01-07. Proposed civil penalty: $177,400. Assessed civil penalty: $125,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024003NOPV_Closure Letter_01072025_(23-266431).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_Closure%20Letter_01072025_(23-266431).pdf\n\n12024003NOPV_Closure Letter_01072025_(23-266431)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_Closure%20Letter_01072025_(23-266431)_text.pdf\n\n12024003NOPV_Consent Agreement and Order_10102024_(23-266431).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_Consent%20Agreement%20and%20Order_10102024_(23-266431).pdf\n\n12024003NOPV_Consent Agreement and Order_10102024_(23-266431)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_Consent%20Agreement%20and%20Order_10102024_(23-266431)_text.pdf\n\n12024003NOPV_Operator Resp to Notice and Request for Hearing and Request Informal Meeting and Request Case File_04252024_(23-266431).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_Operator%20Resp%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Request%20Informal%20Meeting%20and%20Request%20Case%20File_04252024_(23-266431).pdf\n\n12024003NOPV_Operator Withdrawal of Hearing Request_10102024_(23-266431).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_10102024_(23-266431).pdf\n\n12024003NOPV_PCP PCO_03282024_(23-266431).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_PCP%20PCO_03282024_(23-266431).pdf\n\n12024003NOPV_PCP PCO_03282024_(23-266431)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_PCP%20PCO_03282024_(23-266431)_text.pdf\n\n12024003NOPV_PHC Hearing Scheduled_05212024_(23-266431).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_PHC%20Hearing%20Scheduled_05212024_(23-266431).pdf\n\n12024003NOPV_PHC Hearing Scheduled_05212024_(23-266431)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024003NOPV/12024003NOPV_PHC%20Hearing%20Scheduled_05212024_(23-266431)_text.pdf\n\n12024003NOPV_Consent Agreement and Order_10102024_(23-266431)_text.pdf\n\nOctober 10, 2024\nVIA ELECTRONIC MAIL TO: john schlosser@kindermorgan.com\nMr. John Schlosser\nPresident and Chief Executive Officer\nKinder Morgan Liquid Terminals, LLC\n1001 Louisiana Street, Suite 1000\nHouston, TX 77002\nCPF No. 1-2024-003-NOPV\nDear Mr. Schlosser:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Kinder Morgan Liquid\nTerminals, LLC, which was executed on October 2, 2024. Service of the Consent Order and\nConsent Agreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure: Consent Order and Consent Agreement\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\nMr. Joshua Etzel, Vice President, Northern Area, Kinder Morgan Liquid Terminals, LLC,\njoshua_Etzel@kindermorgan.com\nMs. Mary Clair Lyons, Assistant General Counsel, Kinder Morgan,\nmary_lyons@kindermorgan.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 )\nKinder Morgan Liquid Terminals, LLC ) CPF No. 1-2024-003-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated March 28, 2024, 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 Kinder Morgan Liquid Terminals,\nLLC (KMLT or Respondent).\nIn response to the Notice, KMLT contested the alleged violations, the proposed civil penalty, and\nthe proposed compliance order, and requested a hearing. Respondent also requested to meet\ninformally with PHMSA to discuss the matters raised in its Response. Respondent and PHMSA\n(the Parties) subsequently met several times. As a result of those discussions, the Parties have\nagreed to a Consent Agreement by which PHMSA makes findings of violations for each of the\nItems alleged in the Notice, Respondent will pay a reduced civil penalty in the amount of\n$125,400 and take corrective action as detailed in the accompanying Consent Agreement.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. KMLT is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49\nC.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of\nthe United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nOctober 10, 2024\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\n____________________________________\nIn the Matter of )\nKinder Morgan Liquid Terminals, LLC, ) CPF No. 1-2024-003-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom January 4 through April 6, 2023, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of\nTitle 49, United States Code (U.S.C.), conducted an investigation of Kinder Morgan Liquid\nTerminals, LLC (KMLT or Respondent) regarding the January 4, 2023, accident (Accident)\nwhich occurred at KMLT’s Argo, Illinois terminal. The Accident occurred during maintenance\nactivities at the Argo Terminal and resulted in the release of an estimated 26 barrels of hazardous\nliquids (jet fuel).\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated March 28, 2024, a Notice of Probable Violation and Proposed Compliance Order\nand Proposed Civil Penalty (NOPV or Notice), which also included warnings pursuant to 49\nC.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nKMLT committed three violations of 49 C.F.R. Parts 195 and 199 (Items 1 – 3), proposed\nordering Respondent to take certain measures to correct the alleged violation in Item 1, and\nproposed a total civil penalty of $177,400. Other probable violations (Items 4 – 6) were brought\nas warnings, advising Respondent to correct the probable violations or face potential future\nenforcement action.\nKMLT responded to the Notice by letter dated April 25, 2024 (Response). Respondent contested\nthe alleged violations, the proposed civil penalty, and the proposed compliance order, and\nrequested a hearing. KMLT also requested to meet informally with PHMSA to discuss the\nmatters raised in its Response.\nPHMSA and Respondent (the Parties) subsequently met several times to discuss the issues raised\nin the Response. As a result of those discussions and as explained in more detail below, the\nParties have agreed to a Consent Agreement by which PHMSA makes findings of violations for\neach of the Items alleged in the Notice. Respondent will pay a reduced civil penalty in the\namount of $125,400 and will complete certain compliance actions.\n\n\n\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 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent\nand agreement, the Parties hereby agree 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 Consent Agreement (Agreement), Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,\nand the regulations and orders 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 Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\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 for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its request for an administrative\nhearing regarding the Notice.\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\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\n\n\n\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 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 set forth herein, this Agreement does not constitute a finding of\nviolation of any other federal law or regulation and may not be used in any civil proceeding of\nany kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any\nlaw, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this\nAgreement or in future PHMSA enforcement actions.\nII. Findings of Violation:\n11. Item 1 - 49 C.F.R. § 195.402(a): The Notice alleged KMLT failed to follow its\nwritten procedures under § 195.402(a) for conducting maintenance activities. Specifically,\nKMLT failed to follow its Hazardous Energy Control Program – T-O&M 152, dated September\n26, 2022 (Energy Procedure), regarding developing, documenting, and utilizing site-specific\nenergy control procedures. Respondent acknowledged records relevant to the allegation in Item\n1 were not provided during PHMSA’s investigation, but contested Item 1, asserting that it met\nthe requirements in its written procedures under § 195.402(a). KMLT provided additional\nrecords (primarily, a record pre-dating the Accident indicating employee compliance in 2021\nwith a site-specific procedure under KMLT’s Energy Procedure) with the Response and\nsubsequently thereafter during settlement discussions. Upon review of the additional\ndocumentation, PHMSA agrees to a reduced civil penalty assessment for this alleged violation as\ndiscussed in Paragraph 19 below. Respondent also requested the Proposed Compliance Order be\nwithdrawn, or in the alternative that the proposed compliance terms be revised. After settlement\ndiscussions, the Parties agree to amend the proposed compliance actions to address site-specific\nprocedures applicable to the activity that was underway when the January 4, 2023, Accident\noccurred, and also to require KMLT to provide PHMSA with confirmation of KMLT’s notice to\n\n\n\nemployees/persons performing work at the Argo, Illinois terminal of the location and availability\nof applicable site-specific procedures. PHMSA finds a violation of § 195.402(a).\n12. Item 2 - 49 C.F.R. § 195.402(a): The Notice alleged KMLT failed to follow its\nwritten procedures for § 195.402(a) for conducting maintenance activities. Specifically, KMLT\nfailed to follow its T-O&M 103 – Safety Permits, dated October 8, 2020 (Safety Procedure)\nregarding safe work permits. Respondent acknowledged relevant documents were not provided\nduring PHMSA’s investigation, but contested Item 2, asserting that it met the requirements in its\nwritten procedures under § 195.402(a). KMLT provided additional records (primarily a past\nwork order addressing a filter vessel changeout) with the Response and subsequently thereafter\nduring settlement discussions. Upon review of the additional documentation, PHMSA agrees to a\nreduced civil penalty assessment for this alleged violation as discussed in Paragraph 20 below.\nPHMSA finds a violation of § 195.402(a).\n13. Item 3 - 49 C.F.R. § 199.105(b)(1): The Notice alleged KMLT failed to conduct\npost-accident drug tests on each employee whose performance of a covered function either\ncontributed to the Accident or cannot be completely discounted as a contributing factor to the\nAccident. Specifically, KMLT failed to conduct drug testing of the three KMLT terminal\noperators who were assigned to the filter element changeout task on the day of the Accident.\nRespondent acknowledged relevant documents were not provided to PHMSA during the\ninvestigation, but contested Item 3. KMLT provided additional information and records with the\nResponse (primarily, post-accident supervisors records dated April 24, 2024, addressing drug\nand alcohol testing determinations after the January 4, 2023, Accident). As a result of the\nadditional information presented, PHMSA agrees that KMLT violated 49 C.F.R. § 199.105(b)(2)\nafter the Accident by failing to prepare and maintain its decision stating the reasons why the test\nwas not promptly administered, and to a reduced civil penalty assessment for this alleged\nviolation as discussed in Paragraph 21 below. PHMSA finds a violation of § 199.105(b)(2).\n14. Items 1 – 3, will be considered by PHMSA as prior offenses in any future PHMSA\nenforcement action taken against Respondent.\nIII. Warning Items:\n15. Item 4 - 49 C.F.R. § 199.105(b)(2): The Notice alleged that KMLT failed to\nprepare and maintain its decision stating the reasons why a post-accident drug test was not\npromptly administered in accordance with § 199.105(b)(2). This item was a warning and does\nnot constitute a finding of violation. Without admission, KMLT did not contest Item 4, and\nacknowledged that while a record was not provided at the time of PHMSA’s investigation, that it\nhas since completed the form documenting its determination that the operators’ actions were not\na contributing factor to the Accident.\n16. Item 5 - 49 C.F.R. § 199.225(a)(1): The Notice alleged that KMLT failed to test,\nas soon as practicable following an Accident, each surviving covered employee for alcohol if\nthat employee's performance of a covered function either contributed to the Accident or cannot\nbe completely discounted as a contributing factor to the accident. This item was a warning and\ndoes not constitute a finding of violation. KMLT contested Item 5, stating that the operators’\nactions were not a contributing factor to the Accident, and as such, that it had determined that\n\n\n\nalcohol testing was not required. KMLT acknowledged that a record documenting KMLT’s\ndetermination was not provided during PHMSA’s investigation.\n17. Item 6 - 49 C.F.R. § 199.225(a)(2)(i): The Notice alleged that KMLT failed to\nprepare and maintain its decision stating the reasons why a post-accident alcohol test was not\npromptly administered in accordance with § 199.225(a)(2)(i). This item was a warning and does\nnot constitute a finding of violation. Without admission, KMLT did not contest Item 6, and\nacknowledged that while a record was not provided at the time of investigation, that it has since\ncompleted the form documenting its determination that the operators’ actions were not a\ncontributing factor to the Accident.\n18. Under § 190.205, Warning Items are not adjudicated. For Warning Items 4 - 6, if\nOPS finds a violation of these provisions in a subsequent inspection, Respondent may be subject\nto future enforcement action.\nV. Civil Penalty:\n19. Item 1: The Notice proposed assessing a civil penalty in the amount of $68,800\nfor Item 1. Respondent contested Item 1 and requested that the allegation and the proposed civil\npenalty be withdrawn. As discussed in Section II above, KMLT provided additional information\nand records with the Response and during settlement discussions. PHMSA agrees that a\nreduction to the proposed civil penalty is appropriate based on reconsideration of the gravity\nconsideration as supported by the additional information provided by KMLT. Respondent\nagrees, without admission, to pay a reduced civil penalty in the amount of $50,200 for the\nviolation in Item 1.\n20. Item 2: The Notice proposed assessing a civil penalty in the amount of $68,800\nfor Item 2. Respondent contested Item 2 and requested that the allegation and the proposed civil\npenalty be withdrawn. As discussed in Section II above, KMLT provided additional information\nand records with the Response and during settlement discussions. PHMSA agrees that a\nreduction to the proposed civil penalty is appropriate based on reconsideration of the gravity\nconsideration as supported by the additional information provided by KMLT. Respondent\nagrees, without admission, to pay a reduced civil penalty in the amount of $39,100 for the\nviolation in Item 2.\n21. Item 3: The Notice proposed assessing a civil penalty in the amount of $39,800\nfor Item 3. Respondent contested Item 3 and requested that the allegation and the proposed civil\npenalty be withdrawn. As discussed in Section II above, KMLT provided additional information\nand records with the Response and during settlement discussions. PHMSA agrees that a\nreduction to the proposed civil penalty is appropriate based on reconsideration of the nature\nconsideration to reflect a records violation as supported by the additional information provided\nby KMLT. Respondent agrees, without admission, to pay a reduced civil penalty in the amount\nof $36,100 for the violation in Item 3.\n\n\n\n22. Respondent will pay a total reduced civil penalty in the amount of $125,400,\npursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20\ndays from the Effective Date of this Agreement.\nVI. Compliance Order:\n23. The Notice proposed certain compliance order actions to address the alleged\nviolation in Item 1 of the Notice. Respondent initially contested the Item 1 and requested\nwithdrawal of its accompanying Proposed Compliance Order. As discussed above, Respondent\nrequested, and the Parties have agreed to, a revised compliance order for Item 1. KMLT agrees\nto perform the following actions:\nIn regard to Item 1 of the Notice pertaining to its site-specific energy\ncontrol procedures, KMLT must review, update, or where necessary\ndevelop site-specific procedure(s) for filter vessels, including filter\nelement changeouts at its Argo, Illinois terminal. KMLT must also\nprovide notice to employees/persons performing work at the Argo,\nIllinois terminal of the location and availability of the applicable site-\nspecific procedures that govern work within the terminal. Within 60\ndays of the Effective Date, KMLT must submit the filter vessel\nprocedure(s) as well as confirmation regarding the notice of the\nlocation/availability of the site-specific procedures, to the Director –\nEastern Region for approval.\nVII. Enforcement:\n24. 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 $266,015 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 in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and\nassociated schedules set forth or referenced in Section VI (Compliance Order) are automatically\nincorporated into this Agreement and are enforceable in the same manner.\nVIII. Review and Approval Process:\n25. With respect to any submission under Section VI (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\n\n\n\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.\nIX. Dispute Resolution:\n26. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including any decision of the Director under the terms of Section\nVI (Compliance Order). If Respondent and the Director are unable to informally resolve the\ndispute within 15 calendar days after the dispute is first raised, in writing, to the Director,\nRespondent may submit a written request for a determination resolving the dispute from the\nAssociate Administrator. Such request must be made in writing and provided to the Director,\ncounsel for the Eastern Region, and to the Associate Administrator, no later than ten calendar\ndays from the 15-day deadline for informal resolution referenced in this paragraph. Along with\nits request, Respondent must provide the Associate Administrator with all information\nRespondent believes is relevant to the dispute. Decisions of the Associate Administrator under\nthis paragraph will constitute final agency action. The existence of a dispute and PHMSA’s\nconsideration of matters placed in dispute will not excuse, toll, or suspend any term or timeframe\nfor completion of any work to be performed under this Agreement during the pendency of the\ndispute resolution process.\nX. Effective Date:\n27. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator incorporating the terms of this Agreement.\nXI. Recordkeeping and Information Disclosure:\n28. 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, unless a longer period of\ntime is required pursuant to 49 C.F.R. parts 190-199. For any reports, plans, or other\ndeliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may\nassert 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.\nXII. Modification:\n29. 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\nXIII. Termination:\n30. This Agreement will remain in effect until the Civil Penalty in Section V is paid\nin full and the Compliance Order in Section VI is satisfied, as determined by the Director. The\nAgreement shall not terminate until the Director confirms, in writing, that the Agreement is\nterminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement.\nXIV. Ratification:\n31. 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.\n32. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n\n\n\nFor Kinder Morgan Liquid Terminals, LLC:\n___________________________________\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Eastern Region, Office of Pipeline Safety\n________________________\nDate\n\n12024003NOPV_Closure Letter_01072025_(23-266431)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJanuary 7, 2025\nMr. John Schlosser\nPresident and Chief Executive Officer\nKinder Morgan Liquid Terminals, LLC\n1001 Louisiana Street, Suite 1000\nHouston, TX 77002\nCPF 1-2024-003-NOPV\nDear Mr. Schlosser:\nBy letter dated March 28, 2024, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued a Notice of Probable Violation, Proposed Civil\nPenalty and Proposed Compliance Order (Notice) to Kinder Morgan Liquid Terminals, LLC\n(Respondent).\nIn response to the Notice on April 25, 2024, Respondent requested a formal hearing and an\ninformal settlement meeting. PHMSA held several meetings with KMLT between April, 2024\nthrough October, 2024. On October 10, 2024, Respondent withdrew its request for hearing. On\nOctober 10, 2024, PHMSA and Respondent entered into a Consent Order which incorporated the\nterms of the Consent Agreement between PHMSA and Respondent.\nThe Consent Order included a Compliance Order and Civil Penalty. On October 18, 2024,\nRespondent paid the Civil Penalty. On December 10, 2024, Respondent issued to PHMSA the\ncompleted action items from the Compliance 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.\n\n\n\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n12024003NOPV_PHC Hearing Scheduled_05212024_(23-266431)_text.pdf\n\nMay 21, 2024\nVIA ELECTRONIC MAIL TO: john schlosser@kindermorgan.com and\nrobert.burrough@dot.gov\nMr. John Schlosser\nPresident and Chief Executive Officer\nKinder Morgan Liquid Terminals, LLC\n1001 Louisiana Street, Suite 1000\nHouston, TX 77001\nMr. Robert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n840 Bear Tavern Road, Suite 300\nWest Trenton, NJ 08628\nRe: Notice of Hearing, Kinder Morgan Liquid Terminals, LLC\nCPF No. 1-2024-003-NOPV\nDear Mr. Schlosser 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\nPipeline and Hazardous Materials Safety Administration in the above-referenced case. The\nhearing will take place on October 17, 2024, beginning at 8:30 a.m. Eastern Time.\nThe hearing will be held at the PHMSA Eastern Region office, 840 Bear Tavern Road, Suite\n300, West Trenton, NJ 08628. Upon arrival at the building, attendees will be required to present\nphoto identification to security personnel. A contact phone number for the day of the hearing is\n(609) 989-2171.\nAt least 10 calendar days prior to the hearing (or by October 7, 2024), both parties must submit\nand exchange any additional written materials they intend to present at the hearing and the name\nand email address of each attendee. This information should be provided electronically.\nMaterials not submitted by this date may be excluded. If you have any questions, please do not\nhesitate to contact me.\n\n\n\nSincerely,\nLarry White\nPresiding Official\ncc: Ms. Mary Clair Lyons, Assistant General Counsel, Environmental Health & Safety,\nKinder Morgan Liquid Terminals, LLC, mary_lyons@kindermorgan.com\nMr. Joseph St. Peter, OPS Eastern Region Counsel, PHMSA, joseph.st.peter@dot.gov\nMs. Emma Ross, OPS Eastern Region Law Clerk, PHMSA, emma.ross@dot.gov","truncated":false,"body_characters":31870}