# PIPELINES OF PUERTO RICO INCD, THE — Notice of Probable Violation

- **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:** Not available
- **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).
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- **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.

Official case documents:

220056022_Final Order_05112006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220056022/220056022_Final%20Order_05112006.pdf

220056022_Final Order_05112006.pdf

U.S.Department
of Transportation
Pipeline and
Hazardous Materials Safety
Administration
400 Seventh Street, S.W.
Washington, D.C. 20590
MAY 1 1 2006
Mr. Juan Carlos Cortes
President - Board of Directors
Pipelines of Puerto Rico
P. 0 . Box 366697
San Juan, Puerto Rico 00936-6697
RE: CPF NO. 2-2005-6022
Dear Mr. Cortes:
Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety
in the above-referenced case. It makes findings of violation, assesses a civil penalty of
$12,000 and specifies actions to be taken to comply with the pipeline safety regulations. The
penalty payment terms are set forth in the Final Order. When the civil penalty is paid and the
terms of the compliance order completed, as determined by the Director, Southern Region,
this enforcement action will be closed. Your receipt of the Final Order constitutes service of
that document under 49 C.F.R. 5 190.5.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
cc: Mr. Jerry Lucas Marrero, McConnell Valde's, Counsel for Pipelines of Puerto Rico
Doira Diaz, McConnell Valde's, Counsel for Pipelines of Puerto Rico
Ms. Linda Daugherty, Director, Southern Region, OPS
CERTIFIED MAIL - RETURN RECEIPT REOUESTED



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
In the Matter of 1
Pipelines of Puerto Rico, )
) CPF No. 2-2005-6022
Respondent.
FINAL ORDER
On June 30 through July 1,2005, pursuant to 49 U.S.C. 5 601 17, representatives of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Southern Region, conducted an inspection
of Respondent's Operator Qualification (OQ) records and procedures in San Juan, Puerto Rico. As
a result of the inspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated
September 22, 2005, a Notice of Probable Violation, Proposed Civil Penalty and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding
that Respondent committed violations of 49 C.F.R. Part 195 and proposed assessing a total civil
penalty of $12,000 for the alleged violations. The Notice also proposed that Respondent take certain
measures to correct the alleged violations.
Respondent responded to the Notice by letter dated November 2,2005 to request a 15-day extension
of time to respond to the Notice. The extension of time was granted on IVovember 17, 2005.
Respondent failed to respond at the expiration of the extension of time or within 30 days after it had
received the Notice. Respondent did not contest the allegations of violation. Respondent did not
request a hearing, and therefore has waived its right to one.
FINDINGS OF VIOLATION
Uncontested Violations
Respondent did not contest the alleged violations in the Notice. Accordingly, I find that Respondent
violated the following sections of 49 C.F.R. Part 195 as more fully described in the Notice:
49 C.F.R. 5 195.505(a) -- failure to have and follow a written qualification program
with a completed covered task list at the time that the written Operator Qualification
Plan (OQ) was mandated to be in effect, April 27,200 1. Respondent's covered task
list was not completed until July 29,2005 and the covered tasks list failed to address
specific covered task that were being performed on the pipeline system;



49 C.F.R. 5195.505(b) -- failure to have and follow a written qualification program
with provisions in the plan to address the use of training in the initial qualification
of individuals performing covered tasks, or re-training of individuals whose
qualification is in question;
49 C.F.R. 5 195.505(b) -- failure to timely develop the list of abnormal operating
conditions, as the list was not developed until March 2005. Employees could not
have received abnormal operating conditions training prior to March 2005;
49 C.F.R. 5195.505(c) -- failure to have and follow a written qualification program
with provisions to address the communication of abnormal operating conditions and
covered task requirements between individuals who speak and understand different
languages;
49 C.F.R. § 195.505(d) -- failure to have and follow a written qualification program
with provisions in the plan to ensure evaluation of individuals whose performance
may have contributed to an accident. Respondent also failed to have provisions in the
plan to address the status of the individual in question until the investigation is
complete;
49 C.F.R. 5195.505(e) -- failure to have and follow a written qualification program
with provisions in the plan to determine whether an individual is no longer qualified
to perform a covered task;
49 C.F.R. § 195.505(g)-- failure to have and follow a written qualification program
with established re-evaluation intervals for covered tasks performed on pipeline
system;
49 C.F.R. 5 195.509(a) -- failure to have any information that proved a written
qualification program had been implemented. Respondent provided a written
document it identified as its OQ plan. However, the plan submitted by Respondent
was a gas pipeline OQ plan. Respondent is a hazard liquid pipeline.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. 5 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 series of
violations.
49 U.S.C. 5 60122 and 49 C.F.R. fj 190.225 require that, in determining the amount of the civil
penalty, I consider the following criteria: nature, circumstances, and gravity of the violation,



degree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to
pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on
Respondent's ability to continue in business, and such other matters as justice may require. The
Notice proposed a total civil penalty of $12,000 for violations of 49 C.F.R. Part 195.
Item 1(A) of the Notice proposed a civil penalty of $1,000 for violation of 49 C.F.R. fj 195.505(a),
as Respondent failed to have and follow a written qualification program with a completed covered
task list by April 27,2001,when the written OQ plan was mandated to be in effect. Respondent's
covered task list was not completed until July 29,2005. Respondent did not contest the violation
or the civil penalty. Accordingly, having reviewed the record and considered the assessment criteria,
I assess Respondent a civil penalty of $1,000 for violation of 49 C.F.R. 5 195.505(a).
Item 7 of the Notice proposed a civil penalty of $1,000 for violation of 49 C.F.R. 5 195.505(g), as
Respondent failed to have and follow a written qualification program with established re-evaluation
intervals for covered tasks performed on pipeline system. Respondent did not contest the violation
or the civil penalty. The line is the primary source of jet fuel product to the airport. Respondent's
incomplete and ineffective OQ plan could result in an interruption of service. Accordingly, having
reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of
$1,000 for violation for 49 C.F.R. fj 195.505(g).
Item 8 of the Notice proposed a civil penalty of $10,000 for violation of 49 C.F.R. fj 195.509(a), as
Respondent failed to have any information that proved a written qualification program had been
implemented. The written document Respondent provided as its written qualification program was
a gas pipeline OQ plan. However, Respondent is a hazard liquid pipeline. Respondent did not
contest the violation or the civil penalty. Accordingly, having reviewed the record and considered
the assessment criteria, I assess Respondent a civil penalty of $10,000 for violation for 49 C.F.R. 5
195.509(a).
Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent
a total civil penalty of $12,000.
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. 5 89.21(b)(3)) require this payment 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 (AMZ-300), Federal Aviation Administration, Mike Monroney Aeronautical
Center, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893.
Failure to pay the $12,000 civil penalty will result in accrual of interest at the current annual rate in
accordance 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
authorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not
made within 1 10 days of service. Furthermore, failure to pay the civil penalty may result in referral
of the matter to the Attorney General for appropriate action in a United States District Court.



COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items lB, 2,3,4, and 5 for violations of 49
C.F.R. SS195.505 and 195.509.
Under 49 U.S.C. §601 18(a), each person who engages in the transportation of hazardous liquids or
who owns or operates a pipeline facility is required to comply with the applicable safety standards
established under chapter 601. Pursuant to the authority of 49 U.S.C. 601 18(b) and 49 C.F.R.
§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the
pipeline safety regulations applicable to its operations. Respondent must -
1. Provide documentation that the covered task list has been reviewed by the four part
test and ensure that any covered task performed on Respondent's pipeline system is
addressed on the list. This correspondence shall be submitted within 30 days following
your receipt of the Final Order.
2. Provide documentation that abnormal operating conditions have been assigned to
each new task to stay consistent with the current format for covered tasks. This
correspondence shall be submitted within 30 days following your receipt of the Final
Order.
3. Provide a written OQ plan applicable to your hazard liquid pipeline and that addresses
all requirements, including these specific areas:
i. Provision to address the use of training in initial qualification, or re-training
of individuals whose qualification is in question;
ii. Provision to address the communication of covered task requirements and
abnormal operating conditions to non-English speaking individuals;
iii. Provision to ensure evaluation of individuals whose performance of a covered task
may have contributed to an accident and his performance status during the investigation;
4. Provide documentation of re-evaluation of all of your employees performing covered
tasks. The documentation should also provide assurance that the associated abnormal
operating conditions have been reviewed and personnel understand the need to recognize
and react. Submit this documentation within 120 days following your receipt of the Final
Order.
5. Documentation and evidence of the completion of these actions must be submitted to
Ms. Linda Daugherty, Director, OPS, Southern Region, Pipeline and Hazardous Materials
Safety Administration, 233 Peachtree Street, Suite 600, Atlanta, GA 30303.



The Director, OPS, Southern Region may grant an extension of time for compliance with any of the
terms of this order for good cause. A request for an extension must be in writing and adequately
justifies the reasons for the extension.
Failure to comply with this Final Order may result in the assessment of civil penalties of up to
$100,000 per violation per day, or in the referral of the case for judicial enforcement.
Under 49 C.F.R. § 190.215, Respondent has a right 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 brief statement of the issue(s). The filing of the petition
automatically stays the payment of any civil penalty assessed. However if Respondent submits
payment for the civil penalty, the Final Order becomes the final administrative decision and the
right to petition for reconsideration is waived. The terms and conditions of this Final Order are
effective on receipt.
MAY 1 1 2006:
Date Issued
Pipeline Safety
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