# COLONIAL PIPELINE CO — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 220095001
- **title:** COLONIAL PIPELINE CO — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2009-04-08
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.573(e).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-220095001.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-220095001.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-220095001
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/220095001
**body:**

Notice of Probable Violation involving COLONIAL PIPELINE CO. PHMSA's enforcement data identifies the cited regulation as 195.573(e). The case was opened on 2009-04-08 and is reported as closed as of 2010-12-01. Proposed civil penalty: $22,500. Assessed civil penalty: $22,500. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

220095001_FinalOrder_11052010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220095001/220095001_FinalOrder_11052010.pdf

220095001_FinalOrder_11052010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220095001/220095001_FinalOrder_11052010_text.pdf

220095001_nopv notice_04082009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220095001/220095001_nopv%20notice_04082009.pdf

220095001_nopv notice_04082009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220095001/220095001_nopv%20notice_04082009_text.pdf

220095001_operator_response_05112009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220095001/220095001_operator_response_05112009.pdf

220095001_nopv notice_04082009_text.pdf

NOTICE OF PROBABLE VIOLATION
and
PROPOSED CIVIL PENALTY
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
April 8, 2009
Timothy Felt
President and Chief Executive Officer
Colonial Pipeline Company
1185 Sanctuary Parkway, Suite 100
Alpharetta, GA 30009
CPF 2-2009-5001
Dear Mr. Felt:
Between November 17 and December 12, 2008, representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
conducted an onsite pipeline safety inspection of your pipeline facilities and records in North
Carolina, Mississippi, Alabama, and Georgia.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The items
inspected and the probable violations are:
§195.573 What must I do to monitor external corrosion control?
(e) Corrective action. You must correct any identified deficiency in corrosion control as
required by Sec. 195.401(b). However, if the deficiency involves a pipeline in an integrity
management program under Sec. 195.452, you must correct the deficiency as required by
Sec.195.452(h).
§195.401 General requirements.
(b) Whenever an operator discovers any condition that could adversely affect the safe
operation of its pipeline system, it shall correct it within a reasonable time. However, if
the condition is of such a nature that it presents an immediate hazard to persons or
property, the operator may not operate the affected part of the system until it has
corrected the unsafe condition.



Discovered non-hazardous deficiencies as a result of corrosion control surveys, as required by
§195.573(e). Colonial did not correct within a reasonable time. PHMSA generally considers a
“reasonable time” to be the maximum time allowed between required annual cathodic
protection surveys (15 months maximum from discovery of a deficient survey reading).
A. Line 401-01 (Alabama)
Milepost 5161+79, Woods Rd.
03/15/2006: -0.800v
05/22/2007: -0.810v
02/16/2008: -0.811v
09/12/2008: -1.224v
B . Line 402-01 ( Alabama)
Milepost 5553+10, MBV @ Pelham Station.
05/23/2006: -0.608v
05/23/2007: -0.530v Remarks: Ground bed depleted, new ground bed installed in
December 2007.
02/11/2008: -0.920v
C. Line 403-01 (Alabama)
Milepost 10042+11, Co Rd 437.
05/20/2006: -0.432v
05/17/2007: -0.539v
02/13/2008: -2.246v Remarks: Ground bed depleted, corrected in December 2007.
Milepost 10061+54, Co Rd.
05/20/2006: -0.832v
05/17/2007: -0.685v
02/13/2008: -1.517v Remarks: Ground bed depleted, corrected in December 2007.
Milepost 10062+44, SNG XING 14”.
05/20/2006: -0.520v
05/17/2007: -0.486v
2



02/13/2008: -1.176v Remarks: Ground bed depleted, installed a new ground bed in
December 2007.
Milepost 10064+94, Span TS. Remarks: Ground bed depleted. New bed was installed at
the end of 2007.
05/20/2006: -0.632v
05/17/2007: -0.532v
02/13/2008: -1.285v Remarks: Ground bed depleted, corrected in December 2007.
D. Line 403-02 (Alabama)
Milepost 10021+78, Co Rd 437, Remarks: Ground bed depleted, new ground bed was
installed at the end of 2007.
05/20/2006: -0.555v
05/17/2007: -0.637v
02/13/2008: -2.555v Remarks: Ground bed depleted, corrected in December 2007.
Milepost 10041+56, SNG XING 12”. Remarks: Ground bed depleted. New bed was
installed at the end of 2007.
05/20/2006: -0.537v
05/17/2007: -0.477v
02/13/2008: -2.012v Remarks: Ground bed depleted, corrected in December 2007.
Milepost 10042+12, SNG XING 14”. Remarks: Ground bed depleted. New bed was
installed at the end of 2007.
05/20/2006: -0.624v
05/17/2007: -0.431v
02/13/2008: -1.650v Remarks: Ground bed depleted, corrected in December 2007.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000
for any related series of violations. The Compliance Officer has reviewed the circumstances
and supporting documentation involved in the above probable violation and has recommended
that you be preliminarily assessed a civil penalty of $22,500 as follows:
3



Item number
Penalty
1 $ 22,500
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Compliance Proceedings. Please refer to this document and note the response options. Be
advised that all material you submit in response to this enforcement action is subject to being
made publicly available. If you believe that any portion of your responsive material qualifies
for confidential treatment under 5 U.S.C. 552(b), along with the complete original document
you must provide a second copy of the document with the portions you believe qualify for
confidential treatment redacted and an explanation of why you believe the redacted information
qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30
days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in
this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as
alleged in this Notice without further notice to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPF 2-2009-5001 and for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Linda Daugherty
Director, Southern Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings
4

220095001_FinalOrder_11052010_text.pdf

NOV 5 2010
Mr. Timothy Felt
President and Chief Executive Officer
Colonial Pipeline Company
1185 Sanctuary Parkway, Suite 100
Alpharetta, GA 30009
Re: CPF 2-2009-5001
Dear Mr. Felt:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and assesses a civil penalty of $22,500. The penalty payment terms are set forth in the
Final Order. This enforcement action closes automatically upon payment. Service of the Final
Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided
under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Doug Belden, Vice President and General Manager-Operations, Colonial Pipeline Co.
Mr. Wayne Lemoi, Director, Southern Region, PHMSA
CERTIFIED MAIL – RETURN RECEIPT REQUESTED [7005 1160 0001 0043 9436]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
_____________________________
)
In the Matter of )
)
Colonial Pipeline Company, ) CPF No. 2-2009-5001
)
Respondent. )
_____________________________)
FINAL ORDER
Between November 17 and December 12, 2008, pursuant to 49 U.S.C. § 60117, a representative
of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline
Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of
Colonial Pipeline Company (Colonial or Respondent) in North Carolina, Mississippi, Alabama,
and Georgia. Based in Alpharetta, Georgia, Colonial Pipeline delivers gasoline, home heating
oil, aviation fuel and other refined petroleum products throughout the Southern and Eastern
United States.
As a result of the inspection, the Director, Southern Region, OPS (Director), issued to
Respondent, by letter dated April 8, 2009, a Notice of Probable Violation and Proposed Civil
Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that
Respondent had violated 49 C.F.R. §§ 195.573(e) and 195.401(b) and proposed assessing a civil
penalty of $22,500 for the alleged violation.
Respondent responded to the Notice by letter dated May 11, 2009 (Response). The company did
not contest the allegations of violation but provided an explanation of its actions. Respondent
did not request a hearing and therefore has waived its right to one.
FINDING OF VIOLATION
In its Response, Colonial did not contest the allegations in the Notice that it violated 49 C.F.R.
Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. §§ 195.573(e) and 195.401(b),
which state:



2
§ 195.573 What must I do to monitor external corrosion control?
(a) . . . .
(e) Corrective action. You must correct any identified deficiency in
corrosion control as required by § 195.401(b). However, if the deficiency
involves a pipeline in an integrity management program under § 195.452,
you must correct the deficiency as required by § 195.452(h).
§ 195.401 General requirements.
(a) . . . .
(b) Whenever an operator discovers any condition that could
adversely affect the safe operation of its pipeline system, it shall correct it
within a reasonable time. However, if the condition is of such a nature that
it presents an immediate hazard to persons or property, the operator may
not operate the affected part of the system until it has corrected the unsafe
condition.
The Notice alleged that Respondent violated 49 C.F.R. §§ 195.573(e) and 195.401(b) by failing
to take actions within a reasonable time to correct identified deficiencies in corrosion control.
Specifically, the Notice alleged that Colonial failed to take corrective actions to resolve cathodic
protection (CP) deficiencies reflected in the company’s monitoring records for Alabama Lines
401-01, Line 402-01, Line 403-01, and Line 403-02 for the 2006 to 2008 calendar years.
In its Response, Colonial did not contest the allegations of violation but explained that it had an
ongoing corrosion control program in place that addressed test readings of CP levels that did not
meet one or more of its criteria. Colonial contended that it adhered to the continuing use of
successfully applied criteria on its pipeline system, referenced in the National Association of
Corrosion Engineers International Standard RP 0169.
Respondent explained that following the identification of a large number of deficient areas in
Alabama in 2006, it investigated, tested, prioritized and developed corrective actions to address
the risks to its pipeline in a timely manner. Respondent also explained that extensive CP
upgrade and recoating projects were completed during 2007 and 2008 to address CP deficiencies
on its pipelines throughout Alabama, including at locations 401-01, 402-01, 403-01, and 403-02
cited in the Notice. Respondent advised that re-surveys performed in February 2008, after the
CP upgrade and recoating projects, confirmed that locations 401-01, 402-01, 403-01, and 403-02
were in fact remediated. Colonial also advised that remediation of location 401-01 was
completed and met its criteria for CP by September 2008. Colonial contended that all the
remediation work was completed prior to the inspection by PHMSA in November-December of
2008.
Colonial stated that many sub-standard CP areas are addressed each year along Colonial’s
pipelines, but that the time required to determine if a cathodic protection deficiency exists
(discovery of a deficiency) and make repairs varies, based on the conditions at each site and the
number of deficiencies discovered in a particular year. Colonial advised that it had increased the
number of employees assigned to evaluate CP systems and had realigned its corrosion control
employees with the maintenance employees and contractors responsible for making repairs.



3
Respondent did not contest the allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. §§ 195.573(e) and 195.401(b) by
failing to take corrective actions within a reasonable time to correct identified deficiencies in
corrosion control.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative 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. In determining the amount of a civil penalty under 49 U.S.C.
§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s
ability to pay the penalty and any effect that the penalty may have on its ability to continue doing
business; and the good faith of Respondent in attempting to comply with the pipeline safety
regulations. In addition, I may consider the economic benefit gained from the violation without
any reduction because of subsequent damages, and such other matters as justice may require.
The Notice proposed a total civil penalty of $22,500 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $22,500 for Respondent’s violation of 49 C.F.R.
§§ 195.573(e) and 195.401(b), for failing to take corrective actions within a reasonable time to
remedy identified deficiencies in its corrosion control. Corrosion is one of the most threatening
conditions to the integrity of pipelines, and, if left uncorrected, can result in pipeline failures. An
adequate level of cathodic protection of buried pipelines is required to arrest corrosion and
prevent rupture. Respondent did not contest this allegation of violation. While Colonial has
presented information regarding the various steps it has taken to implement an effective CP
program, it has not provided any basis for reducing the proposed penalty. Accordingly, having
reviewed the record and considered the assessment criteria, I assess Respondent a total civil
penalty of $22,500 for violations of 49 C.F.R. §§ 195.573(e) and 195.401(b).
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 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-341), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P.O. Box 269039, Oklahoma City, OK 73125. The Financial
Operations Division telephone number is (405) 954-8893.
Failure to pay the $22,500 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. §3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 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.



4
Under 49 C.F.R. § 190.215, Respondent has the right to submit a Petition for Reconsideration of
this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline
Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA
will accept petitions received no later than 20 days after receipt of service of the Final Order by
the Respondent, provided they contain a brief statement of the issue(s) and meet all other
requirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of
any civil penalty assessed but does not stay any other provisions of the Final Order, including
any required corrective actions. If Respondent submits payment of 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 upon service in accordance with 49
C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
- **truncated:** false
- **body characters:** 17335