GULF SOUTH PIPELINE COMPANY, LLC — Notice of Probable Violation

case documentOfficial PDFCPF NO 2-2005-1014.pdf#

220051014_final order_06292006_text.pdf, page 1Official PDFU S Department of Transportation Pipeline and Hazardous Materials Safety Administration 400 Seventh Street, S W Weehrngton, D C 20590 Mr John Earley Seiuor Vice President Gulf South Ptpelme Company, L P 20 East Greenway Plaza Smte 900 Houston, Texas 77074 RE CPF No 2-2005-1014 Dear Mr Earley Enclosed is the Final Order issued by the Associate Administrator for Pipehne Safety in the above-referenced case It makes findings of violation and assesses a civil penalty of $59, 000 The penalty payment terms are set forth in the Fmal Order This enforcement action closes automattcally upon payment Your receipt of the Fmal Order constitutes service of that document under 49 C F R I1 '190 5 Stncerely, James Reynolds Pipehne Comphance Registry Office of Pipelme Safety Enclosure cc Ms Linda Daugherty, Director, Southern Region, OPS CERTIFIED MAIL - RETURN RECEIPT RE UESTED#

220051014_final order_06292006_text.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D. C. 20590 In the Matter of ) ) GULF SOUTH PIPELINE COMPANY, L. P. , ) CPF No. 2-2005-1014 ) Respondent. FINAL ORDER Between October 12 -15, October 25-29 and December 6-10, 2004, pursuant to 49 U S C ht 60117, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Southern Region, Office of Pipeline Safety conducted an on-site pipeline safety inspection of Respondent's phpehne facdines m Alabama, Flortda, and Mississippi and reviewed records at Respondent's Mobde, Alabama, Flowood, Mississippi, and Petal Mississippi offices As a result of the inspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated September 26, 2005, a Notice of Probable Violation, and Proposed Civil Penalty (Notice) In accordance with 49 C F R h'1 190 207, the Notice proposed finding that Respondent committed violations of 49 C. F R Part 192 and proposed assessing a total civil penalty of $59, 000 for the alleged violations Respondent responded to the Notice by letter dated November 28, 2005 (Response) Respondent dhd not contest the allegations of violation but offered an explanation and provided information conceriung the corrective actions it has taken Respondent dkd not request a hearing, and therefore has waived hts rtght to one FINDINGS OF VIOLATION Uncontested Violations Respondent dhd not contest the alleged violations in Items 3 and 8 o f the Notice Accordingly, I find that Respondent violated the following sections of 49 C F R Part 192 as more fully described m the Notice 49 C F R 5 192 465(a) and (d) — failure to test each pipehne that hs under cathodic protection at least once each calendar year, but with intervals not exceeding 15 months, to determine whether cathodic protection meets the requirements of Q 192 463 Respondent also failed to take prompt remedial action to correct any deficiencies indicated by the monitormg,#

220051014_final order_06292006_text.pdf, page 349 C F R g 192 619(a) 1-4 — failure to operate a segment of steel or plastic pipehne at a pressure that does not exceed the maximum allowable operating pressure On November 6, 2004, a regulator and moiutor failed at Respondent's iYtustler's Junction facihty causing an overpressure situation on its Pensacola 16" lme and Courtaulds hne The pressure on the Pensacola 16" hne and Courtaulds lme exceeded the line MAOP for 5 hours and 44 mmutes and exceeded 110% of MAOP for 4 hours and 26 minutes These findings of violation will be considered pnor offenses in any subsequent enforcement action taken agiunst Respondent ASSESSMENT OF PENALTY Under 49 U S C tJ 60122, Respondent is subJect to a civil penalty not to exceed $100, 000 per violation for each day of the violation up to a maximum of $1, 000, 000 for any related senes of violations 49 U S C $ 60122 and 49 C F R $ 190 225 require that, in determining the amount of the civil penalty, I consider the following cnteria nature, circumstances, and gravity of the violation, degree of Respondent's culpability, history of Respondent's pnor offenses, Respondent's abdity to pay the penalty, good faith by Respondent m attempting to achieve comphance, the effect on Respondent's abdity to continue m business, and such other matters as Justice may require The Notice proposed a total civil penalty of $59, 000 for violations of 49 C F R Part 192 Item 3 of the Notice proposed a civil penalty of $9, 000 for violation of 49 C F R g 192 465(a) and (d), as Respondent fiuled to test each pipehne that is under cathodic protection at least once each calendar year, but with intervals not exceeding 15 months, to determine whether cathodic protechon meets the reqmrements of Q 192 463 Respondent also failed to take prompt remedial schon to correct any deficiencies indicated by the mointonng Respondent did not contest the violation or the civil penalty The risk of corrosion on the pipehne significantly increases without proper cathodic protection systems Preventive maintenance is cntical to the safety of the public, environment and property Accordingly, having reviewed the record and considered the assessment cntena, I assess Respondent a civd penalty of $9, 000 for violation of 49 C F R. $ 192 465(a) and (d) Item 8 of the Notice proposed a civil penalty of $50, 000 for violation of 49 C F R g 192 619(a), as Respondent failed to operate a segment of steel or plastic pipehne at a pressure that does not exceed the maximum allowable operating pressure On November 6, 2004, a regulator and momtor failed at Respondent's Whistler's Junction facihty causing an overpressure situation on its Pensacola 16" hne and Courtaulds hne The pressure on the Pensacola 16" lme and Courtaulds hne exceeded the hne MAOP for 5 hours and 44 nunutes and exceeded 110% of MAOP for 4 hours and 26 minutes Respondent did not contest the violation or the civil penalty Accordingly, having reviewed the record and considered the assessment cnteria, I assess Respondent a civil penalty of $50, 000 for violation for 49 C F R g 192 619(a)#

220051014_final order_06292006_text.pdf, page 4Accordingly, having reviewed the record and considered the assessment cntena, I assess Respondent a total civil penalty of $59, 000 Payment of the civil penalty must be made within 20 days of service Federal regulations (49 C F R $ 89 21(b)(3)) require this payment be made by wire transfer, through the Federal Reserve Communications System (Fedwtre), to the account of the U S Treasury Detmled instruchons are contamed in the enclosure Questions concenung wire transfers should be duected to Financial Operations Division (AMZ-300), Federal Aviation Administration, Mike Monroney Aeronautical Center, P 0 Box 25082, Oklahoma City, OK 73125, (405) 954-8893 Fadure to pay the $59, 000 civil penalty will result m accrual of interest at the current annual rate m accordancewtth31U S C 1'1 3717, 31 C F R 11 901 9and49C F R tt 89 23 Pursuanttothosesame authonnes, a late penalty charge of six percent (6%) per annum will be charged if payment is not made within 110 days of service Furthermore, failure to pay the civil penalty may result m referral of the matter to the Attorney General for appropnate action m a United States Distnct Court WARNING ITEMS The Notice did not propose a civil penalty or comphance action for Items I, 2, 4, 5, 6 and 7 in the Notice, therefore, these are considered warning items Respondent is warned that if it does not take appropnate action to correct these items, enforcement action will be taken if a subsequent inspection reveals a violation Under 49 C F R tt 190 215, Respondent has a nght to submit a Petition for Reconsideration of this Final Order The petition must be received within 20 days of Respondent's receipt of this Final Order and must contain a bnef statement of the issue(s) The filmg of the petition automatically stays the payment of any civil penalty assessed However if Respondent subnuts payment for the civd penalty, the Final Order becomes the final administrative decision and the right to petition for reconsideration is waived The terms and condktions of this Final Order are effective on receipt JUN 29 ~00u Date Issued tac Gerard so ate Administrator ipelme Safety#