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

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.452(b)(1), 195.452(b)(2), 195.452(b)(3), 195.452(b)(4).
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- **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.

Official case documents:

220056023_Final Order_04132006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220056023/220056023_Final%20Order_04132006.pdf

220056023_Final Order_04132006.pdf

U.S. Department 400 Seventh Street, S.W.
of Transportation Washington, D.C. 20590
Pipeline and
Hazardous Materials Safety
Administration
APR 1 3 200:
Mr. Juan Carlos Cortes
President - Board of Director
Pipelines of Puerto Rico
P. 0 . Box 366697
San Juan, Puerto Rico 00936-6697
RE: CPF NO. 2-2005-6023
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 and assesses a civil penalty of
$17,500. The penalty payment terms are set forth in the Final Order. This enforcement action
closes automatically upon payment. 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: 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, 1 CPF No. 2-2005-6023
1
1
FINAL ORDER
On June 27-28,2005, pursuant to 49 U.S.C. 5 60117, representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Southern Region, conducted an integrity management
inspection of Respondent's facilities and records in San Juan, Puerto Rico. As a result of the
inspection, the Director, Southern Region, OPS, issued to Respondent, by letter dated September 14,
2005, a Notice of Probable Violation and Proposed Civil Penalty (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 $17,500 for the alleged violations.
Respondent failed to respond within 30 days after it had received the Notice. Respondent's failure
to respond constitutes a waiver of Respondent's right to contest the allegations in the Notice and
authorizes the entry of this Final Order.
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. 5 195.452(b)(1) -- failing to develop and implement a written integrity
management program in accordance with 5 195.452;
49 C.F.R. 5 195.452(b)(2)-- failing to identify each pipeline or pipeline segment that
is a category 2 pipeline;
49 C.F.R. 5 195.452(b)(3) -- failing to develop a plan to carry out baseline
assessments of the line pipe, as required by 5 195.452(c). 49 C.F.R. 5 195.452(c)
requires that if an operator chooses other technology, the operator must noti@
PHMSA ninety (90) days before conducting the assessment.



49 C.F.R. 5 195.452(b)(4) -- failing to develop an integrity management program
with a framework that address each element of the integrity management program
under paragraph (f) of this section.
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. § 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 $17,500 for violations of 49 C.F.R. Part 195.
Item 1 of the Notice proposed a civil penalty of $5,000 for violation of 49 C.F.R. tj 195.452(b)(l),
as Respondent failed to develop and implement a written integrity management program in
accordance with 5 195.452. 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 $5,000 for violation of 49 C.F.R. 5 195.452(b)(l).
Item 2 of the Notice proposed a civil penalty of $2,500 for violation of 49 C.F.R. tj 195.452(b)(2),
as Respondent failed to identify each pipeline or pipeline segment that is a category 2 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 $2,500 for
violation for 49 C.F.R. 5 195.452(b)(2).
Item 3 of the Notice proposed a civil penalty of $5,000 for violation of 49 C.F.R. 5 195.452(b)(3),
as Respondent failed to develop a plan to carry out baseline assessments of the line pipe, as required
by 5 195.452(c). 49 C.F.R. 5 195.452(c) requires that if an operator chooses other technology, the
operator must notify PHMSA ninety (90) days before conducting the assessment. 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 $5,000 for violation for 49
C.F.R. 5 195.452(b)(3).
Item 4 of the Notice proposed a civil penalty of $5,000 for violation of 49 C.F.R. 5 195.452(b)(4),
as Respondent failed to develop an integrity management program with a framework that address



each element of the integrity management program under paragraph ( f ) of this section. 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 $5,000 for violation for 49
C.F.R. 5 195.452(b)(4).
Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent
a total civil penalty of $17,500.
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 $17,500 civil penalty will result in accrual of interest at the current annual rate in
accordance 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
authorities, a late penalty charge of six percent (6%) per annurn 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.
Under 49 C.F.R. 5 190.2 15, 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.
APR 1 3 2006
Date Issued
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