{"operation":"document","citation":"CPF 220125012","title":"GENESIS PIPELINE USA, L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-09-05","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.440(a), 195.440(b), 195.440(c), 195.440(d)(2), 195.440(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220125012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220125012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220125012","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220125012","body":"Notice of Probable Violation involving GENESIS PIPELINE USA, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.440(a),  195.440(b),  195.440(c),  195.440(d)(2),  195.440(i). The case was opened on 2012-09-05 and is reported as closed as of 2013-04-12. Proposed civil penalty: $31,000. Assessed civil penalty: $31,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220125012_closure letter_04122013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_closure%20letter_04122013.pdf\n\n220125012_closure letter_04122013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_closure%20letter_04122013_text.pdf\n\n220125012_Final Order_03142013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_Final%20Order_03142013.pdf\n\n220125012_Final Order_03142013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_Final%20Order_03142013_text.pdf\n\n220125012_nopv_pcp_pco_09052012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_nopv_pcp_pco_09052012.pdf\n\n220125012_nopv_pcp_pco_09052012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_nopv_pcp_pco_09052012_text.pdf\n\n220125012_Final Order_03142013_text.pdf\n\nMARCH 14, 2013\nDr. Grant E. Sims\nChief Executive Officer\nGenesis Energy, LP\nGenesis Pipeline USA, LP\n919 Milam, Suite 2100\nHouston, Texas 77002-5417\nRe: CPF No. 2-2012-5012\nDear Dr. Sims:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, specifies actions that need to be taken by Genesis Pipeline USA, LP, to comply with\nthe pipeline safety regulations, and assesses a civil penalty of $31,000. This is to acknowledge\nreceipt of payment of the full penalty amount, by wire transfer, dated October 4, 2012. When the\nterms of the Compliance Order have been completed, as determined by the Director, Southern\nRegion, this enforcement action will be closed. Service of the Final Order by certified mail is\ndeemed effective 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 Lemoi, Director, Southern Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\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)\nGenesis Pipeline USA, LP, ) CPF No. 2-2012-5012\n)\nRespondent. )\n___________________________________ )\nFrom July 10-11, 2012, 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 Public Awareness Program (PAP) of\nGenesis Pipeline USA, LP (Genesis or Respondent), at its headquarters in Houston, Texas.\nGenesis is a subsidiary of Genesis Energy, LP, which transports crude oil and carbon dioxide\nthrough more than 1,000 miles of pipeline in Alabama, Florida, Mississippi, Louisiana, Texas,\nand offshore in the Gulf Coast of Mexico.\n1\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated September 5, 2012, 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\nGenesis had committed various violations of 49 C.F.R. § Part 195, assessing a civil penalty of\n$31,000 for three of the alleged violations and warning Respondent to take appropriate corrective\naction to address six other probable violations or face possible enforcement action.\nGenesis responded to the Notice by letter to PHMSA dated September 17, 2012 (Response).\nRespondent requested and was granted an extension of time by OPS to respond by\nOctober 19, 2012. Genesis submitted its supplemental response by letter dated October 5, 2012\n(Supplemental Response). The company did not contest the allegations of violation and paid the\nproposed civil penalty of $31,000, as provided in 49 C.F.R. § 190.227. Payment of the penalty\nFINAL ORDER\n1 Genesis Energy, LP, has five subsidiaries: Genesis Pipeline USA, LP; Genesis Natural Gas Pipeline, LP; Genesis\nCrude Oil, LP; Genesis Free State Pipeline, LLC; and Genesis CO2 Pipeline, LP. Genesis owns three onshore crude\noil pipeline systems with approximately 460 miles of pipe located in Alabama, Florida, Louisiana, Mississippi, and\nTexas. The company also has approximately 1,050 miles of pipe that transports crude oil offshore in the Gulf of\nMexico and 270 miles of carbon dioxide pipelines from Jackson, Mississippi, to Louisiana.\nSee http://genesisenergy.com/index.cfm?md=pagebuilder&tmp=home&pid=80&pnid=29&nid=113 (last accessed\nJan. 23, 2013).\n\n\n\n2\nserves to close the case with prejudice to Respondent.\nFINDINGS OF VIOLATION\nIn its Response, Genesis did not contest the allegation in the Notice that it violated\n49 C.F.R. Part 195, as follows:\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:\n§ 195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written\ncontinuing public education program that follows the guidance\nprovided in the American Petroleum Institute’s (API)\nRecommended Practice (RP) 1162 (incorporated by reference, see\n§ 195).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to implement a\nwritten continuing public education program that followed the guidance provided in Section 8.5\nof API RP 1162, Table 8.1. Specifically, the Notice alleged that Genesis did not complete its\nfirst PAP effectiveness evaluation by June 20, 2010, in accordance with § 195.440(h) and API\nRP 1162. PHMSA’s audit of Genesis’ PAP Effectiveness Report revealed that the report had not\nbeen dated and the authorship and origin of the document was not documented.\n2 While the\nsubstance of the document related to Genesis, PHMSA found the PAP Effective Report had the\ncover sheet of Celeritas, a former consultant for Genesis.\n3 Additionally, Genesis’ computer\nrecords indicated the document had been created on 10/19/2011, more than a year past the June\n2010 deadline for a PAP program effectiveness evaluation.4\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.440(a) by failing to complete its\nfirst program effectiveness evaluation by the required deadline, in accordance with API RP 1162.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:\n§ 195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written\ncontinuing public education program that follows the guidance\nprovided in the American Petroleum Institute’s (API)\nRecommended Practice (RP) 1162 (incorporated by reference, see §\n195).\n2 Pipeline Safety Violation Report (Violation Report) (Sept. 5, 2012) (on file with PHMSA), Exhibit A.\n3 Violation Report, Exhibit A at Attachment A.\n4 Violation Report at Exhibit A.\n\n\n\n3\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to implement a\nwritten continuing public education program that followed the guidance provided in API RP\n1162, Table 2-1. Specifically, the Notice alleged that Genesis failed to include in its PAP,\nSection 5.2.2.2, Public Officials Outreach, information on emergency preparedness\ncommunications with emergency officials and public officials in its 2006, 2008, and 2010\nbaseline message materials, which had been used to educate the public, appropriate government\norganizations, and persons engaged in excavation related activities.\n5\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.440(a) by failing to implement a\nwritten continuing public education program that included emergency preparedness\ncommunications with emergency officials and public officials in its 2006, 2008, and 2010,\nbaseline message materials.\nItem 6: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(b), which states:\n§ 195.440 Public awareness.\n(a) …\n(b) The operator’s program must follow the general program\nrecommendations of API RP 1162 and assess the unique attributes and\ncharacteristics of the operator’s pipeline and facilities.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(b) by failing to develop and\nimplement a continuing public education program that assessed the unique attributes and\ncharacteristics of Genesis’ pipeline system. Specifically, the Notice alleged that Genesis’\nbaseline message materials did not describe the types of products transported or the unique\nattributes and characteristics of the products.6 The company transports natural gas, crude oil,\nand carbon dioxide in several pipeline systems. These products have significantly different\nattributes and characteristics that Genesis allegedly failed to properly address in the PAP\nbaseline messages that it distributed.7\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.440(b) by failing to develop and\nimplement a continuing public education program that assessed the unique attributes and\ncharacteristics of the Genesis pipeline system, in accordance with API RP 1162.\n5 Violation Report at Exhibit A.\n6 Id.\n7 Id.\n\n\n\n4\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.8 Under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, in determining\nthe amount of a civil penalty, I must consider the following criteria: the nature, circumstances,\nand gravity of the violation, including adverse impact on the environment; the degree of\nRespondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s ability to\npay the penalty and any effect that the penalty may have on its ability to continue doing business;\nand the good faith of Respondent in attempting to comply with the pipeline safety regulations.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $31,000 for the violation cited above.\nItem 2: The Notice proposed a civil penalty of $10,000 for Respondent’s violation of\n49 C.F.R. § 195.440(a), for failing to complete its first program effectiveness evaluation by the\nrequired deadline, in accordance with API RP 1162. Genesis did not contest the proposed\npenalty for this allegation of violation. Accordingly, having reviewed the record and considered\nthe assessment criteria, I assess Respondent a civil penalty of $10,000 for violation of\n49 C.F.R. § 195.440(a), which has already been paid by Respondent.\nItem 3: The Notice proposed a civil penalty of $10,500 for Respondent’s violation of\n49 C.F.R. § 195.440(a), for failing to implement a written continuing public education program\nthat included emergency preparedness communications with emergency officials and public\nofficials in its 2006, 2008, and 2010, baseline message materials. Genesis did not contest the\nproposed penalty for this allegation of violation. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $10,500 for violation of\n49 C.F.R. § 195.440(a), which has already been paid by Respondent.\nItem 6: The Notice proposed a civil penalty of $10,500 for Respondent’s violation of\n49 C.F.R. § 195.440(b), for failing to develop and implement a continuing public education\nprogram with baseline message materials that described the types of products transported and\nassessed the unique attributes and characteristics of Genesis’ pipeline system. Genesis did not\ncontest the proposed penalty for this allegation of violation. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $10,500 for\nviolation of 49 C.F.R. § 195.440(b), which has already been paid by Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 3 and 6 in the Notice for\n8 Effective January 3, 2012, the maximum administrative civil penalties for violations of the federal pipeline safety\nregulations were doubled to $200,000 per violation with a maximum of $2,000,000 for a related series of violations\n(The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (Pub. L. 112-90)). Because the violations\nin this case occurred prior to the increase, the higher maximums do not apply.\n\n\n\n5\nviolations of 49 C.F.R. §§ 195.440 (a) and (b), respectively. Under 49 U.S.C. § 60118(a), each\nperson who engages in the transportation of hazardous liquids or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.440(a) (Item 3), Respondent must develop\nand distribute to Emergency Officials and Public Officials a new baseline message\nthat adequately addresses Emergency Preparedness Communications; and\n2. With respect to the violation of § 195.440(b) (Item 6), Respondent must develop\nand distribute to all stakeholder audiences a revised baseline message that adequately\naddresses the unique attributes and characteristics of Genesis’ natural gas, crude oil,\nand carbon dioxide pipelines.\n3. Regarding the requirements for Notice Items 3 and 6 above, within 90 days of\nreceipt of this Final Order, Respondent must complete the required actions and\nsubmit documentation of completion to the Director, Southern Region, Office of\nPipeline Safety, Pipeline and Hazardous Materials Safety Administration. Please\nreference CPF# 2-2012-5012 in the title of the supporting documentation.\n4. It is requested (not mandated) that Genesis maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal the Director. It is requested that these costs be reported in two categories:\n1) total cost associated with preparation/revision of plans, procedures, studies and\nanalyses; and 2) total cost associated with replacements, additions, and other changes\nto 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.\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, 4, 5, 7, 8, and 9, the Notice alleged probable violations of Part 195 but\ndid not propose a civil penalty or compliance order for these items. Therefore, these are\nconsidered to be warning items. The warnings were for:\n49 C.F.R. § 195.440(a) (Item 1) ─ Respondent’s alleged failure to fully\nimplement its continuing public education program. Specifically, Respondent did\n\n\n\n6\nnot fully complete its 2011 annual program implementation, as required by\nSection 10.0, of the Genesis PAP;\n49 C.F.R. § 195.440(a) (Item 4) ─ Respondent’s alleged failure to implement a\nwritten continuing public education program that followed the guidance provided\nin API RP 1162. Specifically, Genesis did not maintain adequate liaison with\nemergency officials, as information distributed to emergency officials did not\ninclude contact information for each local Genesis office;\n49 C.F.R. § 195.440(a) (Item 5) ─ Respondent’s alleged failure to establish an\nadequate continuing public education program that provided baseline message\nmaterials to all identified excavators in 2007, 2009, and 2011, in accordance with\nthe guidance provided in API RP 1162, Table 2-1;\n49 C.F.R. § 195.440(c) (Item 7) ─ Respondent’s alleged failure to follow the\npublic education program guidelines of API RP 1162, including supplemental\nrequirements and specific program documentation and recordkeeping\nrequirements, and its failure to evaluate its PAP’s effectiveness in accordance\nwith company procedures;\n49 C.F.R. § 195.440(d)(2), (d)(4) and (d)(5) (Item 8) ─ Respondent’s alleged\nfailure to establish a continuing educational program to enable the public,\nappropriate government organizations, and persons engaged in excavation-related\nactivities to recognize a hazardous liquid or a carbon dioxide pipeline and the\nsteps that should be taken in the event of a release. Specifically, the 2006, 2008,\nand 2010, baseline message materials used by Genesis were inadequate; and\n49 C.F.R. § 195.440(i) (Item 9) ─ Respondent’s alleged failure to follow the\nprogram recommendations of API RP 1162. Specifically, Genesis failed to\ndemonstrate that it had delivered the 2010 baseline message material for the\naffected public in accordance with recommendations listed in Table 2.3 of the\nAPI RP 1162.\nGenesis presented information in its Response showing that it had taken certain actions to\naddress the cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe 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\n\n220125012_closure letter_04122013_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 12, 2013\nMr. Jeff Gifford\nVice President, HSSE\nGenesis Pipeline USA, LP\n919 Milam Street, Suite 2100\nHouston, TX 77002\nCPF 2-2012-5012\nDear Mr. Gifford:\nOn March 14, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice of Pipeline Safety (OPS) issued to Genesis Pipeline USA, LP (Genesis) a Final Order\nin the above-referenced case. The Order included an assessed civil penalty and a Compliance\nOrder.\nThe OPS Southern Region received and reviewed correspondence from Genesis regarding the\ncompliance items in the Order. Based on our review of this documentation and our\nconfirmation that Genesis has paid the civil penalty, we have determined that Genesis has\ncomplied with the terms of the Final Order. Accordingly, this case is now closed and no\nfurther action is necessary with respect to the matters involved in this case.\nPlease be advised that this letter refers only to the above described order (CPF 2-2012-5012)\nand not to any other PHMSA pending cases. Thank you for your cooperation in this matter.\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region","truncated":false,"body_characters":19583}