{"operation":"document","citation":"CPF 220116007","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":"2011-08-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.404(a)(3), 195.410(a)(2)(i), 195.452(f)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220116007.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220116007.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220116007","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220116007","body":"Notice of Probable Violation involving PIPELINES OF PUERTO RICO INCD, THE. PHMSA's enforcement data identifies the cited regulations as 195.404(a)(3),  195.410(a)(2)(i),  195.452(f)(2). The case was opened on 2011-08-02 and is reported as closed as of 2013-03-01. Proposed civil penalty: $20,000. Assessed civil penalty: $20,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220116007_closure letter_03012013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220116007/220116007_closure%20letter_03012013.pdf\n\n220116007_closure letter_03012013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220116007/220116007_closure%20letter_03012013_text.pdf\n\n220116007_Final Order_02082012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220116007/220116007_Final%20Order_02082012.pdf\n\n220116007_Final Order_02082012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220116007/220116007_Final%20Order_02082012_text.pdf\n\n220116007_NOPV_PCP_PCO_08022011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220116007/220116007_NOPV_PCP_PCO_08022011.pdf\n\n220116007_NOPV_PCP_PCO_08022011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220116007/220116007_NOPV_PCP_PCO_08022011_text.pdf\n\n220116007_closure letter_03012013_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 1, 2013\nMr. Robert L. Rose\nPresident\nTampa Pipeline Corporation\nThe Pipelines of Puerto Rico, Inc.\nP.O. Box 35236\nSarasota, FL 34242\nCPF 2-2011-6007\nDear Mr. Rose:\nOn May 16 - 20, 2011, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) inspected The Pipelines of Puerto Rico, Inc. (PLPR) jet fuel\npipeline system in Guaynabo, Puerto Rico. PLPR is a subsidiary of the Tampa Pipeline\nCorporation (TPC).\nAs a result of the inspection, PHMSA issued a Final Order to PLPR on February 8, 2012.\nThe Final Order included a Civil Penalty (CP) and a Compliance Order (CO), which required\nPLPR to take certain actions to protect the public and the environment.\nPLPR paid the CP in May 2012 and provided records for PLPR’s hydrostatic pressure test of\nthe pipeline in January 2013. The PHMSA Southern Region has reviewed your pressure test\nrecords and we find that you have met the requirements specified in the CO. No further\naction is necessary with regards to the Final Order and this case is now closed.\nPlease be advised that nothing herein states or implies that PLPR's pipeline system is in\ncompliance with the federal pipeline safety regulations. The pipeline system remains subject\nto inspection by PHMSA.\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n\n220116007_Final Order_02082012_text.pdf\n\nFEB 8 2012\nMr. Robert Rose\nPresident\nThe Pipelines of Puerto Rico, Inc.\nP.O. Box 35236\nSarasota, FL 34242\nRe: CPF No. 2-2011-6007\nDear Mr. Rose:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation, assesses a civil penalty of $20,000, and specifies actions that need to be taken by The\nPipelines of Puerto Rico, Inc., to comply with the pipeline safety regulations. The penalty\npayment terms are set forth in the Final Order. When the civil penalty has been paid and the\nterms of the compliance order completed, as determined by the Director, Southern Region, this\nenforcement action will be closed. Service of the Final Order by certified mail is deemed\neffective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Wayne T. Lemoi, Director, Southern Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [71791000164203198355]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nThe Pipelines of Puerto Rico, Inc., ) CPF No. 2-2011-6007\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May16-20, 2011, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of The Pipelines of\nPuerto Rico, Inc. (PLPR or Respondent), in Guaynabo, Puerto Rico.\njet fuel pipeline from the Cataño Pump Station in Guaynabo to the Luis Muñoz Marin\nInternational Airport in Carolina, Puerto Rico.\n1 PLPR operates a 9.5-mile\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated August 2, 2011, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to\n49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nPLPR had violated 49 C.F.R. § 195.452(f) (2) and proposed assessing a civil penalty of $20,000\nfor the alleged violation. The Notice also proposed ordering Respondent to take certain\nmeasures to correct the alleged violation. The warning items required no further action, but\nwarned the operator to correct the probable violation or face possible enforcement action.\nRespondent failed to respond within 30 days of receipt of service of the Notice. Under\n49 C.F.R. § 190.209(c), such failure to respond constitutes a waiver of PLPR’s right to contest\nthe allegations in the Notice and authorizes the Associate Administrator, without further notice,\nto find facts as alleged in the Notice and to issue this Final Order under § 190.213. In this case,\nthe Notice was mailed to Respondent by certified mail (USPS Article No. 7007 2680 1340 7334)\non August 2, 2011, and was received by Respondent on August 4, 2011, as shown by the return\n1 According to Articles of Merger filed with the Secretary of State of the State of Florida, Tampa Pipeline Limited\nPartnership merged with Tampa Pipeline Corporation on or around September 30, 2001. Tampa Pipeline\nCorporation and its related companies operate pipelines providing jet fuel to various airports: St. Louis Pipeline\nCorporation (St. Louis Pipeline); Illinois Petroleum Supply Corporation (Illinois Petroleum Supply); Illinois\nPipeline Corporation (Illinois Pipeline); Idaho Pipeline Corporation (Idaho Pipeline); Tampa Airport Corporation\n(Tampa Airport Pipeline); San Antonio Pipeline Corporation (San Antonio Pipeline); and Pipelines of Puerto Rico,\nInc. (San Juan Pipeline). http://www.sunbiz.org/corioff.html (last accessed 1/26/2012)\n\n\n\n2\nreceipt on file with PHMSA. To date, Respondent has never acknowledged or responded to the\nNotice. Under such circumstances, I find it reasonable and appropriate to enter this Final Order\nwithout further proceedings.2\nFINDING OF VIOLATION\nThe company did not respond to the allegation in the Notice that it violated 49 C.F.R. Part 195,\nas follows:\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(f) (2), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) …\n(f) What are the elements of an integrity management program? An\nintegrity management program begins with the initial framework. An\noperator must continually change the program to reflect operating\nexperience, conclusions drawn from results of the integrity assessments,\nand other maintenance and surveillance data, and evaluation of\nconsequences of a failure on the high consequence area. An operator must\ninclude, at minimum, each of the following elements in its written\nintegrity management program:\n(1) …\n(2) A baseline assessment plan meeting the requirements of paragraph\n(c) of this section; . . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(f) (2) by failing to include a\nbaseline assessment plan (BAP) in its integrity management program (IMP) that met the\nrequirements of paragraph (c) of § 195.452. Specifically, the Notice alleged that Respondent\nfailed to conduct a valid BAP on its 9.5-mile jet fuel pipeline by the deadline specified in\n§ 195.452(d).\nAccording to the Notice, Respondent presented the OPS inspection team with the company’s\nannual pressure test records, test procedures, time lines, and other data for October 2004,\nOctober 2005, November 2006, September 2007, and September 2008, to demonstrate that it had\ntaken various actions to assess the integrity of its pipeline in accordance with § 195.452(c)(i).\nUnder § 195.452(c), an operator must assess its pipeline by one of several methods specified in\nthe regulation, including pressure tests conducted in accordance with Subpart E of Part 195. The\nNotice alleged, however, that the pressure tests performed by Respondent failed to satisfy the\nrequirements of Subpart E for several reasons. First, Respondent conducted the pressure tests\nusing jet fuel instead of water, as required by 49 C.F.R. § 195.306. Second, PLPR had no\n2 The Pipelines of Puerto Rico, Inc., is a sister company of several other pipelines owned or controlled by Mr.\nRobert Rose. E.g., In the Matter of Tampa Pipeline Corporation, Final Order (CPF No. 2-2008-6002] (April 26,\n2010), 2010 WL 6531627, (D.O.T.), August 27, 2010; See also, In the Matter of Tampa Bay Pipeline Corporation,\nFinal Order (CPF No. 2-2005-6012 (Dec. 1, 2006), 2008 WL 902910 (D.O.T.), March 31, 2008. PHMSA final\norders are generally accessible on the agency’s website, available at\nhttp://primis.phmsa.dot.gov/comm/reports/enforce/Actions.\n\n\n\n3\nevidence to show that the pressure tests did not result in any leaks.3\nThird, Subpart E requires\nthat pressure tests equal or exceed 125% of the maximum operating pressure (MOP) of the\npipeline, not 125% of the regular operating pressure. Respondent’s minimum test pressure was\nat least 125% above the “regular operating pressure of the pipeline,\n” which was well below the\nMOP. Therefore, PLPR failed to complete a valid IMP baseline assessment of its pipeline in\naccordance with 49 C.F.R. Part 195. Accordingly, based upon a review of the evidence in the\nrecord, I find that Respondent violated 49 C.F.R. § 195.452(f)(2) by failing to include a\ncompliant BAP in its IMP.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under\n49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $20,000 for the violation cited above.\nItem 3: The Notice proposed a civil penalty of $20,000 for Respondent’s violation of\n49 C.F.R. § 195.452(f)(2), for failing to include a BAP in its IMP that met the requirements of\nparagraph (c) of § 195.452. As noted above, PLPR failed to respond to the Notice. The\nproposed penalty is based, in part, on the higher risks posed by a potential failure of this line to\nHCAs. Failure to identify when a pipeline is subject to the integrity management regulations\npresents a risk to the safety of the public and environment in the most critical geographical areas\nbecause the operator may not adhere to more stringent standards imposed on pipelines that could\naffect HCAs.\nFurthermore, operators were required under § 195.452(a)(2) to complete BAPs for Category 2\npipelines not later than February 17, 2009. More than two years after this date when OPS\nconducted its inspection, PLPR still had not completed this basic task. In terms of culpability,\nRespondent’s senior management knew or should have known of its responsibility to meet the\nvarious requirements of its own IMP.\n4\nAccordingly, having reviewed the record and considered\nthe assessment criteria, I assess Respondent a civil penalty of $20,000 for violation of\n49 C.F.R. § 195.452(f)(2).\n3 The test records show a significant pressure decline in several of the tests. The contractor attributed all of these\npressure declines to changes in temperature, but without any engineering analysis or other proof to show that none\nof the pressure declines were due to leaks.\n4 In the Matter of Idaho Pipeline Corporation, CPF No. 5-2008-5036 (April 27, 2009), the company was found to\nhave violated 49 C.F.R. § 195.452(f) by failing to have a written IMP that addressed the minimum requirements in\n49 C.F.R. § 195.452(f). 2009 WL 1211367, (D.O.T.), April 27, 2009. Idaho Pipeline Corporation is another sister\ncompany of The Pipelines of Puerto Rico, Inc.\n\n\n\n4\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P. O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8893.\nFailure to pay the $20,000 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 3 in the Notice for violation of\n49 C.F.R. § 195.452(f)(2). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations. Respondent must take the following actions:\n1. With respect to the violation of § 195.452(f)(2) (Item 3), Respondent must,\nwithin 60 days of receipt of this Order, develop a plan to complete a valid IMP\nbaseline assessment of its jet fuel pipeline from the Cataño Pumping Station to the\nLuis Muñoz Marin International Airport in Carolina, Puerto Rico, and submit the\nplan to the Director for approval.\n2. Respondent must complete the IMP baseline assessment in accordance with the\napproved plan within 120 days of receipt of this Order, as required by\n49 C.F.R. § 195.452.\n3. It is requested that PLPR maintain documentation of the safety-improvement\ncosts associated with fulfilling the terms of this Compliance Order and submit the\ntotal to the Director. It is requested that costs be reported in two categories: (1)\ntotal cost associated with preparation/revision of plans, procedures, studies, and\nanalyses; and (2) total cost associated with replacements, additions, and other\nchanges to pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\n\n\n\n5\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nWARNING ITEMS\nWith respect to Items 1 and 2, the Notice alleged probable violations of Part 195 but did not\npropose a civil penalty or compliance order for these items. Therefore, these are considered to\nbe warning items. The warnings were for:\n49 C.F.R. § 195.404 (a)(3) (Item 1) ─ Respondent’s alleged failure to maintain\ncurrent and accurate records of the MOP of its pipeline. PLPR showed the MOP\nas being 904 psig in one record, 1,104 psig in another, and 627 psig in a letter to\nOPS, Southern Region, dated September 8, 2010; and\n49 C.F.R. § 195.410 (a)(2)(i) (Item 2) ─ Respondent’s alleged failure to properly\nidentify the product being transported in its pipeline as “Petroleum,” on the\ncompany’s line markers. Specifically, the pipeline transported jet fuel but the\nword “gasoline” was printed on the pipeline markers.\nIf OPS finds a violation of any of these items in a subsequent inspection, Respondent may be\nsubject to future enforcement action.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of this Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of\nany civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all\nother terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":18546}