{"operation":"document","citation":"CPF 220056023","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":"2005-09-14","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(b)(1), 195.452(b)(2), 195.452(b)(3), 195.452(b)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220056023.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220056023.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220056023","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220056023","body":"Notice of Probable Violation involving PIPELINES OF PUERTO RICO INCD, THE. PHMSA's enforcement data identifies the cited regulations as 195.452(b)(1),  195.452(b)(2),  195.452(b)(3),  195.452(b)(4). The case was opened on 2005-09-14 and is reported as closed as of 2006-05-29. Proposed civil penalty: $17,500. Assessed civil penalty: $17,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220056023_Final Order_04132006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220056023/220056023_Final%20Order_04132006.pdf\n\n220056023_Final Order_04132006.pdf\n\nU.S. Department 400 Seventh Street, S.W.\nof Transportation Washington, D.C. 20590\nPipeline and\nHazardous Materials Safety\nAdministration\nAPR 1 3 200:\nMr. Juan Carlos Cortes\nPresident - Board of Director\nPipelines of Puerto Rico\nP. 0 . Box 366697\nSan Juan, Puerto Rico 00936-6697\nRE: CPF NO. 2-2005-6023\nDear Mr. Cortes:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in\nthe above-referenced case. It makes findings of violation and assesses a civil penalty of\n$17,500. The penalty payment terms are set forth in the Final Order. This enforcement action\ncloses automatically upon payment. Your receipt of the Final Order constitutes service of that\ndocument under 49 C.F.R. 5 190.5.\nSincerely,\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Ms. 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, 1 CPF No. 2-2005-6023\n1\n1\nFINAL ORDER\nOn June 27-28,2005, pursuant to 49 U.S.C. 5 60117, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Southern Region, conducted an integrity management\ninspection of Respondent's facilities and records in San Juan, Puerto Rico. As a result of the\ninspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated September 14,\n2005, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In accordance with 49\nC.F.R. 5 190.207, the Notice proposed finding that Respondent committed violations of 49 C.F.R.\nPart 195 and proposed assessing a total civil penalty of $17,500 for the alleged violations.\nRespondent failed to respond within 30 days after it had received the Notice. Respondent's failure\nto respond constitutes a waiver of Respondent's right to contest the allegations in the Notice and\nauthorizes the entry of this Final Order.\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. 5 195.452(b)(1) -- failing to develop and implement a written integrity\nmanagement program in accordance with 5 195.452;\n49 C.F.R. 5 195.452(b)(2)-- failing to identify each pipeline or pipeline segment that\nis a category 2 pipeline;\n49 C.F.R. 5 195.452(b)(3) -- failing to develop a plan to carry out baseline\nassessments of the line pipe, as required by 5 195.452(c). 49 C.F.R. 5 195.452(c)\nrequires that if an operator chooses other technology, the operator must noti@\nPHMSA ninety (90) days before conducting the assessment.\n\n\n\n49 C.F.R. 5 195.452(b)(4) -- failing to develop an integrity management program\nwith a framework that address each element of the integrity management program\nunder paragraph (f) of this section.\nThese findings of violation will be considered prior offenses in any subsequent enforcement action\ntaken 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. § 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other matters as justice may require. The Notice proposed\na total civil penalty of $17,500 for violations of 49 C.F.R. Part 195.\nItem 1 of the Notice proposed a civil penalty of $5,000 for violation of 49 C.F.R. tj 195.452(b)(l),\nas Respondent failed to develop and implement a written integrity management program in\naccordance with 5 195.452. Respondent did not contest the violation or the civil penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na civil penalty of $5,000 for violation of 49 C.F.R. 5 195.452(b)(l).\nItem 2 of the Notice proposed a civil penalty of $2,500 for violation of 49 C.F.R. tj 195.452(b)(2),\nas Respondent failed to identify each pipeline or pipeline segment that is a category 2 pipeline.\nRespondent did not contest the violation or the civil penalty. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $2,500 for\nviolation for 49 C.F.R. 5 195.452(b)(2).\nItem 3 of the Notice proposed a civil penalty of $5,000 for violation of 49 C.F.R. 5 195.452(b)(3),\nas Respondent failed to develop a plan to carry out baseline assessments of the line pipe, as required\nby 5 195.452(c). 49 C.F.R. 5 195.452(c) requires that if an operator chooses other technology, the\noperator must notify PHMSA ninety (90) days before conducting the assessment. Respondent did\nnot contest the violation or the civil penalty. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $5,000 for violation for 49\nC.F.R. 5 195.452(b)(3).\nItem 4 of the Notice proposed a civil penalty of $5,000 for violation of 49 C.F.R. 5 195.452(b)(4),\nas Respondent failed to develop an integrity management program with a framework that address\n\n\n\neach element of the integrity management program under paragraph ( f ) of this section. Respondent\ndid not contest the violation or the civil penalty. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $5,000 for violation for 49\nC.F.R. 5 195.452(b)(4).\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na total civil penalty of $17,500.\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 $17,500 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 3 1 U.S.C. 5 371 7,3 1 C.F.R. 5 901.9 and 49 C.F.R. 5 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annurn 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.\nUnder 49 C.F.R. 5 190.2 15, Respondent has a right to submit a Petition for Reconsideration of this\nFinal Order. The petition must be received within 20 days of Respondent's receipt of this Final\nOrder and must contain a brief statement of the issue(s). The filing of the petition automatically\nstays the payment of any civil penalty assessed. However if Respondent submits payment for the\ncivil penalty, the Final Order becomes the final administrative decision and the right to petition for\nreconsideration is waived. The terms and conditions of this Final Order are effective on receipt.\nAPR 1 3 2006\nDate Issued","truncated":false,"body_characters":8367}