{"operation":"document","citation":"CPF 220056022","title":"PIPELINES OF PUERTO RICO INCD, THE — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2005-09-22","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.505(a), 195.505(b), 195.505(c), 195.505(d), 195.505(e), 195.505(g), 195.509(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220056022.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220056022.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220056022","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220056022","body":"Notice of Probable Violation involving PIPELINES OF PUERTO RICO INCD, THE. PHMSA's enforcement data identifies the cited regulations as 195.505(a),  195.505(b),  195.505(c),  195.505(d),  195.505(e),  195.505(g),  195.509(a). The case was opened on 2005-09-22 and is reported as closed as of 2009-04-24. Proposed civil penalty: $12,000. Assessed civil penalty: $12,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220056022_Final Order_05112006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220056022/220056022_Final%20Order_05112006.pdf\n\n220056022_Final Order_05112006.pdf\n\nU.S.Department\nof Transportation\nPipeline and\nHazardous Materials Safety\nAdministration\n400 Seventh Street, S.W.\nWashington, D.C. 20590\nMAY 1 1 2006\nMr. Juan Carlos Cortes\nPresident - Board of Directors\nPipelines of Puerto Rico\nP. 0 . Box 366697\nSan Juan, Puerto Rico 00936-6697\nRE: CPF NO. 2-2005-6022\nDear Mr. Cortes:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety\nin the above-referenced case. It makes findings of violation, assesses a civil penalty of\n$12,000 and specifies actions to be taken to comply with the pipeline safety regulations. The\npenalty payment terms are set forth in the Final Order. When the civil penalty is paid and the\nterms of the compliance order completed, as determined by the Director, Southern Region,\nthis enforcement action will be closed. Your receipt of the Final Order constitutes service of\nthat document under 49 C.F.R. 5 190.5.\nSincerely,\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Mr. Jerry Lucas Marrero, McConnell Valde's, Counsel for Pipelines of Puerto Rico\nDoira Diaz, McConnell Valde's, Counsel for Pipelines of Puerto Rico\nMs. Linda Daugherty, Director, Southern Region, OPS\nCERTIFIED MAIL - RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of 1\nPipelines of Puerto Rico, )\n) CPF No. 2-2005-6022\nRespondent.\nFINAL ORDER\nOn June 30 through July 1,2005, pursuant to 49 U.S.C. 5 601 17, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Southern Region, conducted an inspection\nof Respondent's Operator Qualification (OQ) records and procedures in San Juan, Puerto Rico. As\na result of the inspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated\nSeptember 22, 2005, a Notice of Probable Violation, Proposed Civil Penalty and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding\nthat Respondent committed violations of 49 C.F.R. Part 195 and proposed assessing a total civil\npenalty of $12,000 for the alleged violations. The Notice also proposed that Respondent take certain\nmeasures to correct the alleged violations.\nRespondent responded to the Notice by letter dated November 2,2005 to request a 15-day extension\nof time to respond to the Notice. The extension of time was granted on IVovember 17, 2005.\nRespondent failed to respond at the expiration of the extension of time or within 30 days after it had\nreceived the Notice. Respondent did not contest the allegations of violation. Respondent did not\nrequest a hearing, and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nUncontested Violations\nRespondent did not contest the alleged violations in the Notice. Accordingly, I find that Respondent\nviolated the following sections of 49 C.F.R. Part 195 as more fully described in the Notice:\n49 C.F.R. 5 195.505(a) -- failure to have and follow a written qualification program\nwith a completed covered task list at the time that the written Operator Qualification\nPlan (OQ) was mandated to be in effect, April 27,200 1. Respondent's covered task\nlist was not completed until July 29,2005 and the covered tasks list failed to address\nspecific covered task that were being performed on the pipeline system;\n\n\n\n49 C.F.R. 5195.505(b) -- failure to have and follow a written qualification program\nwith provisions in the plan to address the use of training in the initial qualification\nof individuals performing covered tasks, or re-training of individuals whose\nqualification is in question;\n49 C.F.R. 5 195.505(b) -- failure to timely develop the list of abnormal operating\nconditions, as the list was not developed until March 2005. Employees could not\nhave received abnormal operating conditions training prior to March 2005;\n49 C.F.R. 5195.505(c) -- failure to have and follow a written qualification program\nwith provisions to address the communication of abnormal operating conditions and\ncovered task requirements between individuals who speak and understand different\nlanguages;\n49 C.F.R. § 195.505(d) -- failure to have and follow a written qualification program\nwith provisions in the plan to ensure evaluation of individuals whose performance\nmay have contributed to an accident. Respondent also failed to have provisions in the\nplan to address the status of the individual in question until the investigation is\ncomplete;\n49 C.F.R. 5195.505(e) -- failure to have and follow a written qualification program\nwith provisions in the plan to determine whether an individual is no longer qualified\nto perform a covered task;\n49 C.F.R. § 195.505(g)-- failure to have and follow a written qualification program\nwith established re-evaluation intervals for covered tasks performed on pipeline\nsystem;\n49 C.F.R. 5 195.509(a) -- failure to have any information that proved a written\nqualification program had been implemented. Respondent provided a written\ndocument it identified as its OQ plan. However, the plan submitted by Respondent\nwas a gas pipeline OQ plan. Respondent is a hazard liquid pipeline.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. 5 60122, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations.\n49 U.S.C. 5 60122 and 49 C.F.R. fj 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation,\n\n\n\ndegree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to\npay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on\nRespondent's ability to continue in business, and such other matters as justice may require. The\nNotice proposed a total civil penalty of $12,000 for violations of 49 C.F.R. Part 195.\nItem 1(A) of the Notice proposed a civil penalty of $1,000 for violation of 49 C.F.R. fj 195.505(a),\nas Respondent failed to have and follow a written qualification program with a completed covered\ntask list by April 27,2001,when the written OQ plan was mandated to be in effect. Respondent's\ncovered task list was not completed until July 29,2005. Respondent did not contest the violation\nor the civil penalty. Accordingly, having reviewed the record and considered the assessment criteria,\nI assess Respondent a civil penalty of $1,000 for violation of 49 C.F.R. 5 195.505(a).\nItem 7 of the Notice proposed a civil penalty of $1,000 for violation of 49 C.F.R. 5 195.505(g), as\nRespondent failed to have and follow a written qualification program with established re-evaluation\nintervals for covered tasks performed on pipeline system. Respondent did not contest the violation\nor the civil penalty. The line is the primary source of jet fuel product to the airport. Respondent's\nincomplete and ineffective OQ plan could result in an interruption of service. Accordingly, having\nreviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of\n$1,000 for violation for 49 C.F.R. fj 195.505(g).\nItem 8 of the Notice proposed a civil penalty of $10,000 for violation of 49 C.F.R. fj 195.509(a), as\nRespondent failed to have any information that proved a written qualification program had been\nimplemented. The written document Respondent provided as its written qualification program was\na gas pipeline OQ plan. However, Respondent is a hazard liquid pipeline. Respondent did not\ncontest the violation or the civil penalty. Accordingly, having reviewed the record and considered\nthe assessment criteria, I assess Respondent a civil penalty of $10,000 for violation for 49 C.F.R. 5\n195.509(a).\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na total civil penalty of $12,000.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. 5 89.21(b)(3)) require this payment be made by wire transfer, through the Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are\ncontained in the enclosure. Questions concerning wire transfers should be directed to: Financial\nOperations Division (AMZ-300), Federal Aviation Administration, Mike Monroney Aeronautical\nCenter, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893.\nFailure to pay the $12,000 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 3 1 U.S.C. fj 371 7,3 1 C.F.R. fj 901.9 and 49 C.F.R. 5 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not\nmade within 1 10 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attorney General for appropriate action in a United States District Court.\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items lB, 2,3,4, and 5 for violations of 49\nC.F.R. SS195.505 and 195.509.\nUnder 49 U.S.C. §601 18(a), each person who engages in the transportation of hazardous liquids or\nwho owns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. Pursuant to the authority of 49 U.S.C. 601 18(b) and 49 C.F.R.\n§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to its operations. Respondent must -\n1. Provide documentation that the covered task list has been reviewed by the four part\ntest and ensure that any covered task performed on Respondent's pipeline system is\naddressed on the list. This correspondence shall be submitted within 30 days following\nyour receipt of the Final Order.\n2. Provide documentation that abnormal operating conditions have been assigned to\neach new task to stay consistent with the current format for covered tasks. This\ncorrespondence shall be submitted within 30 days following your receipt of the Final\nOrder.\n3. Provide a written OQ plan applicable to your hazard liquid pipeline and that addresses\nall requirements, including these specific areas:\ni. Provision to address the use of training in initial qualification, or re-training\nof individuals whose qualification is in question;\nii. Provision to address the communication of covered task requirements and\nabnormal operating conditions to non-English speaking individuals;\niii. Provision to ensure evaluation of individuals whose performance of a covered task\nmay have contributed to an accident and his performance status during the investigation;\n4. Provide documentation of re-evaluation of all of your employees performing covered\ntasks. The documentation should also provide assurance that the associated abnormal\noperating conditions have been reviewed and personnel understand the need to recognize\nand react. Submit this documentation within 120 days following your receipt of the Final\nOrder.\n5. Documentation and evidence of the completion of these actions must be submitted to\nMs. Linda Daugherty, Director, OPS, Southern Region, Pipeline and Hazardous Materials\nSafety Administration, 233 Peachtree Street, Suite 600, Atlanta, GA 30303.\n\n\n\nThe Director, OPS, Southern Region may grant an extension of time for compliance with any of the\nterms of this order for good cause. A request for an extension must be in writing and adequately\njustifies the reasons for the extension.\nFailure to comply with this Final Order may result in the assessment of civil penalties of up to\n$100,000 per violation per day, or in the referral of the case for judicial enforcement.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be received within 20 days of Respondent's receipt of this\nFinal Order and must contain a brief statement of the issue(s). The filing of the petition\nautomatically stays the payment of any civil penalty assessed. However if Respondent submits\npayment for the civil penalty, the Final Order becomes the final administrative decision and the\nright to petition for reconsideration is waived. The terms and conditions of this Final Order are\neffective on receipt.\nMAY 1 1 2006:\nDate Issued\nPipeline Safety","truncated":false,"body_characters":13171}