# KEY WEST PIPELINE CO — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 220056027
- **title:** KEY WEST PIPELINE CO — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2005-09-21
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.505(b), 195.509(b).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-220056027.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-220056027.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-220056027
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/220056027
**body:**

Notice of Probable Violation involving KEY WEST PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.505(b),  195.509(b). The case was opened on 2005-09-21 and is reported as closed as of 2006-09-19. Proposed civil penalty: $11,000. Assessed civil penalty: $4,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

220056027_Decision on Petition_09012006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220056027/220056027_Decision%20on%20Petition_09012006.pdf

220056027_Decision on Petition_09012006.pdf

U.S. Department 400 Seventh Street, S.W.
of Transportation Washington, D.C. 20590
Pipeline and Hazardous
Materials Safety Administration
SEP - 1 2Ncj
Mr. Mark S. Rauch
President
Pipeline & Terminal Management Corp.
P.O. Box 27041 5
Houston, TX 77277-04 1 5
Re: CPF No. 2-2005-6027
Dear Mr. Rauch:
Enclosed is the decision on the petition for reconsideration filed in the above-referenced case.
For the reasons discussed therein, the Associate Administrator for Pipeline Safety has denied
your petition and therefore, payment of the $4,000 civil penalty is due immediately. Your
receipt of the decision constitutes service under 49 C.F.R. 5 190.5.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
CERTIFIED MAIL -RETURN RECEIPT REQUESTED



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
In the Matter of )
)
Pipeline & Terminal Management Corp. /
Key West Pipeline Company,
)
)
1
Petitioner )
)
CPF No. 2-2005-6027
DECISION ON PETITION FOR RECONSIDERATION
On April 13, 2006, pursuant to 49 U.S.C. 5 601 12, the Associate Administrator for Pipeline
Safety, Pipeline and Hazardous Materials Safety Administration (PHMSA), issued a Final Order
in this case finding Petitioner violated the pipeline safety regulations and assessed a civil penalty
in the amount of $4,000.
On April 28,2006, Petitioner filed a petition for reconsideration pursuant to 49 C.F.R. 5 190.215.
Petitioner sought reconsideration of the finding in the Final Order that it violated 49 C.F.R.
5 195.509(b) by failing to complete qualifications for two individuals who were performing a
covered task. Petitioner's primary argument for reconsideration is that the evidence submitted in
response to the Notice of Probable Violation and during the hearing shows that Petitioner did, in
fact, complete the qualifications pursuant to 5 195.509(b).
The evidence in the record submitted by Petitioner includes oral testimony, an affidavit, and a
letter from General Physics Corporation. During the hearing on January 17, 2006, Petitioner's
President testified that he personally qualified the two individuals in accordance with
5 195.509(b). Petitioner then submitted an affidavit dated January 19, 2006, signed by the
President restating his testimony. The final piece of evidence was a letter dated October 21,
2005, from the organization that had developed Petitioner's operator qualification plan, stating
that Work History Qualification forms for the covered task "did not print out of the database with
the other covered tasks."'
At no point during the enforcement proceeding did Petitioner produce records of any evaluations
that took place to qualify the individuals pursuant to 5 195.509(b). The oral testimony and
affidavit were insufficient documentation of the evaluations, and the letter concerning the
printing error does not excuse Petitioner's failure to have records of the evaluations.
1
Petition for Partial Reconsideration, April 28,2002, Exhibit A.



Petitioner argued, however, that a failure to have records does not constitute a violation of
5 195.509(b).~ To the contrary, Petitioner is obligated by the pipeline safety laws and operator
qualification regulations to keep documentation of qualifications. The operator qualification
regulations require Petitioner to qualify individuals using an evaluation process that is
"documented by the operator" to determine individuals' abilities to perform covered tasks.3
Section 195.507 also requires Petitioner to maintain records that demonstrate compliance with
5 195.509. Moreover, the Federal pipeline safety statute at 49 U.S.C. 5 601 17(b) requires
Petitioner to keep records that are necessary for PHMSA to verify compliance with each pipeline
safety regulation applicable to Petitioner's pipeline system.
Petitioner has not presented information that warrants modifying the Final Order issued in this
case. Accordingly, the relief sought in the petition for reconsideration is denied.
Payment of the $4,000 civil penalty must be made within 20 days of service of this Decision on
Petition for Reconsideration. Payment may be made by sending a certified check or money order
(containing the CPF Number for this case) payable to "U.S. Department of Transportation" to the
Federal Aviation Administration, Mike Monroney Aeronautical Center, Financial Operations
Division (AMZ-300), P.O. Box 25082, Oklahoma City, OK 73 125.
Federal regulations (49 C.F.R. 5 89.21(b)(3)) also permit this payment to 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
73 125; (405) 954-8893.
Failure to pay the $4,000 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. 5 3717, 31 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 annum will be charged if
payment is not made within 110 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.
This decision on reconsideration is the final administrative action in this proceeding.
SEP - 1 2006
Date Issued
iate Administrator
Pipeline Safety
2 Petition, p 2.
3 49 C.F.R. 9 195.503.
- **truncated:** false
- **body characters:** 6254