# GENESIS PIPELINE USA, L.P. — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

220125012_closure letter_04122013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_closure%20letter_04122013.pdf

220125012_closure letter_04122013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_closure%20letter_04122013_text.pdf

220125012_Final Order_03142013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_Final%20Order_03142013.pdf

220125012_Final Order_03142013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_Final%20Order_03142013_text.pdf

220125012_nopv_pcp_pco_09052012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_nopv_pcp_pco_09052012.pdf

220125012_nopv_pcp_pco_09052012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220125012/220125012_nopv_pcp_pco_09052012_text.pdf

220125012_Final Order_03142013_text.pdf

MARCH 14, 2013
Dr. Grant E. Sims
Chief Executive Officer
Genesis Energy, LP
Genesis Pipeline USA, LP
919 Milam, Suite 2100
Houston, Texas 77002-5417
Re: CPF No. 2-2012-5012
Dear Dr. Sims:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, specifies actions that need to be taken by Genesis Pipeline USA, LP, to comply with
the pipeline safety regulations, and assesses a civil penalty of $31,000. This is to acknowledge
receipt of payment of the full penalty amount, by wire transfer, dated October 4, 2012. When the
terms of the Compliance Order have been completed, as determined by the Director, Southern
Region, this enforcement action will be closed. 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. Wayne Lemoi, Director, Southern Region, OPS
Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Genesis Pipeline USA, LP, ) CPF No. 2-2012-5012
)
Respondent. )
___________________________________ )
From July 10-11, 2012, 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 Public Awareness Program (PAP) of
Genesis Pipeline USA, LP (Genesis or Respondent), at its headquarters in Houston, Texas.
Genesis is a subsidiary of Genesis Energy, LP, which transports crude oil and carbon dioxide
through more than 1,000 miles of pipeline in Alabama, Florida, Mississippi, Louisiana, Texas,
and offshore in the Gulf Coast of Mexico.
1
As a result of the inspection, the Director, Southern Region, OPS (Director), issued to
Respondent, by letter dated September 5, 2012, a Notice of Probable Violation, Proposed Civil
Penalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to
49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that
Genesis had committed various violations of 49 C.F.R. § Part 195, assessing a civil penalty of
$31,000 for three of the alleged violations and warning Respondent to take appropriate corrective
action to address six other probable violations or face possible enforcement action.
Genesis responded to the Notice by letter to PHMSA dated September 17, 2012 (Response).
Respondent requested and was granted an extension of time by OPS to respond by
October 19, 2012. Genesis submitted its supplemental response by letter dated October 5, 2012
(Supplemental Response). The company did not contest the allegations of violation and paid the
proposed civil penalty of $31,000, as provided in 49 C.F.R. § 190.227. Payment of the penalty
FINAL ORDER
1 Genesis Energy, LP, has five subsidiaries: Genesis Pipeline USA, LP; Genesis Natural Gas Pipeline, LP; Genesis
Crude Oil, LP; Genesis Free State Pipeline, LLC; and Genesis CO2 Pipeline, LP. Genesis owns three onshore crude
oil pipeline systems with approximately 460 miles of pipe located in Alabama, Florida, Louisiana, Mississippi, and
Texas. The company also has approximately 1,050 miles of pipe that transports crude oil offshore in the Gulf of
Mexico and 270 miles of carbon dioxide pipelines from Jackson, Mississippi, to Louisiana.
See http://genesisenergy.com/index.cfm?md=pagebuilder&tmp=home&pid=80&pnid=29&nid=113 (last accessed
Jan. 23, 2013).



2
serves to close the case with prejudice to Respondent.
FINDINGS OF VIOLATION
In its Response, Genesis did not contest the allegation in the Notice that it violated
49 C.F.R. Part 195, as follows:
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:
§ 195.440 Public awareness.
(a) Each pipeline operator must develop and implement a written
continuing public education program that follows the guidance
provided in the American Petroleum Institute’s (API)
Recommended Practice (RP) 1162 (incorporated by reference, see
§ 195).
The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to implement a
written continuing public education program that followed the guidance provided in Section 8.5
of API RP 1162, Table 8.1. Specifically, the Notice alleged that Genesis did not complete its
first PAP effectiveness evaluation by June 20, 2010, in accordance with § 195.440(h) and API
RP 1162. PHMSA’s audit of Genesis’ PAP Effectiveness Report revealed that the report had not
been dated and the authorship and origin of the document was not documented.
2 While the
substance of the document related to Genesis, PHMSA found the PAP Effective Report had the
cover sheet of Celeritas, a former consultant for Genesis.
3 Additionally, Genesis’ computer
records indicated the document had been created on 10/19/2011, more than a year past the June
2010 deadline for a PAP program effectiveness evaluation.4
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.440(a) by failing to complete its
first program effectiveness evaluation by the required deadline, in accordance with API RP 1162.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:
§ 195.440 Public awareness.
(a) Each pipeline operator must develop and implement a written
continuing public education program that follows the guidance
provided in the American Petroleum Institute’s (API)
Recommended Practice (RP) 1162 (incorporated by reference, see §
195).
2 Pipeline Safety Violation Report (Violation Report) (Sept. 5, 2012) (on file with PHMSA), Exhibit A.
3 Violation Report, Exhibit A at Attachment A.
4 Violation Report at Exhibit A.



3
The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to implement a
written continuing public education program that followed the guidance provided in API RP
1162, Table 2-1. Specifically, the Notice alleged that Genesis failed to include in its PAP,
Section 5.2.2.2, Public Officials Outreach, information on emergency preparedness
communications with emergency officials and public officials in its 2006, 2008, and 2010
baseline message materials, which had been used to educate the public, appropriate government
organizations, and persons engaged in excavation related activities.
5
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.440(a) by failing to implement a
written continuing public education program that included emergency preparedness
communications with emergency officials and public officials in its 2006, 2008, and 2010,
baseline message materials.
Item 6: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(b), which states:
§ 195.440 Public awareness.
(a) …
(b) The operator’s program must follow the general program
recommendations of API RP 1162 and assess the unique attributes and
characteristics of the operator’s pipeline and facilities.
The Notice alleged that Respondent violated 49 C.F.R. § 195.440(b) by failing to develop and
implement a continuing public education program that assessed the unique attributes and
characteristics of Genesis’ pipeline system. Specifically, the Notice alleged that Genesis’
baseline message materials did not describe the types of products transported or the unique
attributes and characteristics of the products.6 The company transports natural gas, crude oil,
and carbon dioxide in several pipeline systems. These products have significantly different
attributes and characteristics that Genesis allegedly failed to properly address in the PAP
baseline messages that it distributed.7
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.440(b) by failing to develop and
implement a continuing public education program that assessed the unique attributes and
characteristics of the Genesis pipeline system, in accordance with API RP 1162.
5 Violation Report at Exhibit A.
6 Id.
7 Id.



4
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.8 Under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, in determining
the amount of a civil penalty, 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 $31,000 for the violation cited above.
Item 2: The Notice proposed a civil penalty of $10,000 for Respondent’s violation of
49 C.F.R. § 195.440(a), for failing to complete its first program effectiveness evaluation by the
required deadline, in accordance with API RP 1162. Genesis did not contest the proposed
penalty for this allegation of violation. Accordingly, having reviewed the record and considered
the assessment criteria, I assess Respondent a civil penalty of $10,000 for violation of
49 C.F.R. § 195.440(a), which has already been paid by Respondent.
Item 3: The Notice proposed a civil penalty of $10,500 for Respondent’s violation of
49 C.F.R. § 195.440(a), for failing to implement a written continuing public education program
that included emergency preparedness communications with emergency officials and public
officials in its 2006, 2008, and 2010, baseline message materials. Genesis did not contest the
proposed penalty for this allegation of violation. Accordingly, having reviewed the record and
considered the assessment criteria, I assess Respondent a civil penalty of $10,500 for violation of
49 C.F.R. § 195.440(a), which has already been paid by Respondent.
Item 6: The Notice proposed a civil penalty of $10,500 for Respondent’s violation of
49 C.F.R. § 195.440(b), for failing to develop and implement a continuing public education
program with baseline message materials that described the types of products transported and
assessed the unique attributes and characteristics of Genesis’ pipeline system. Genesis did not
contest the proposed penalty for this allegation of violation. Accordingly, having reviewed the
record and considered the assessment criteria, I assess Respondent a civil penalty of $10,500 for
violation of 49 C.F.R. § 195.440(b), which has already been paid by Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 3 and 6 in the Notice for
8 Effective January 3, 2012, the maximum administrative civil penalties for violations of the federal pipeline safety
regulations were doubled to $200,000 per violation with a maximum of $2,000,000 for a related series of violations
(The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 (Pub. L. 112-90)). Because the violations
in this case occurred prior to the increase, the higher maximums do not apply.



5
violations of 49 C.F.R. §§ 195.440 (a) and (b), respectively. Under 49 U.S.C. § 60118(a), each
person who engages in the transportation of hazardous liquids or who owns or operates a
pipeline facility is required to comply with the applicable safety standards established under
chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,
Respondent is ordered to take the following actions to ensure compliance with the pipeline safety
regulations applicable to its operations:
1. With respect to the violation of § 195.440(a) (Item 3), Respondent must develop
and distribute to Emergency Officials and Public Officials a new baseline message
that adequately addresses Emergency Preparedness Communications; and
2. With respect to the violation of § 195.440(b) (Item 6), Respondent must develop
and distribute to all stakeholder audiences a revised baseline message that adequately
addresses the unique attributes and characteristics of Genesis’ natural gas, crude oil,
and carbon dioxide pipelines.
3. Regarding the requirements for Notice Items 3 and 6 above, within 90 days of
receipt of this Final Order, Respondent must complete the required actions and
submit documentation of completion to the Director, Southern Region, Office of
Pipeline Safety, Pipeline and Hazardous Materials Safety Administration. Please
reference CPF# 2-2012-5012 in the title of the supporting documentation.
4. It is requested (not mandated) that Genesis maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the
total the Director. It is requested that these costs be reported in two categories:
1) total cost associated with preparation/revision of plans, procedures, studies and
analyses; and 2) total cost associated with replacements, additions, and other changes
to pipeline infrastructure.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $100,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
WARNING ITEMS
With respect to Items 1, 4, 5, 7, 8, and 9, the Notice alleged probable violations of Part 195 but
did not propose a civil penalty or compliance order for these items. Therefore, these are
considered to be warning items. The warnings were for:
49 C.F.R. § 195.440(a) (Item 1) ─ Respondent’s alleged failure to fully
implement its continuing public education program. Specifically, Respondent did



6
not fully complete its 2011 annual program implementation, as required by
Section 10.0, of the Genesis PAP;
49 C.F.R. § 195.440(a) (Item 4) ─ Respondent’s alleged failure to implement a
written continuing public education program that followed the guidance provided
in API RP 1162. Specifically, Genesis did not maintain adequate liaison with
emergency officials, as information distributed to emergency officials did not
include contact information for each local Genesis office;
49 C.F.R. § 195.440(a) (Item 5) ─ Respondent’s alleged failure to establish an
adequate continuing public education program that provided baseline message
materials to all identified excavators in 2007, 2009, and 2011, in accordance with
the guidance provided in API RP 1162, Table 2-1;
49 C.F.R. § 195.440(c) (Item 7) ─ Respondent’s alleged failure to follow the
public education program guidelines of API RP 1162, including supplemental
requirements and specific program documentation and recordkeeping
requirements, and its failure to evaluate its PAP’s effectiveness in accordance
with company procedures;
49 C.F.R. § 195.440(d)(2), (d)(4) and (d)(5) (Item 8) ─ Respondent’s alleged
failure to establish a continuing educational program to enable the public,
appropriate government organizations, and persons engaged in excavation-related
activities to recognize a hazardous liquid or a carbon dioxide pipeline and the
steps that should be taken in the event of a release. Specifically, the 2006, 2008,
and 2010, baseline message materials used by Genesis were inadequate; and
49 C.F.R. § 195.440(i) (Item 9) ─ Respondent’s alleged failure to follow the
program recommendations of API RP 1162. Specifically, Genesis failed to
demonstrate that it had delivered the 2010 baseline message material for the
affected public in accordance with recommendations listed in Table 2.3 of the
API RP 1162.
Genesis presented information in its Response showing that it had taken certain actions to
address the cited items. If OPS finds a violation of any of these items in a subsequent inspection,
Respondent may be subject to future enforcement action.
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

220125012_closure letter_04122013_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
April 12, 2013
Mr. Jeff Gifford
Vice President, HSSE
Genesis Pipeline USA, LP
919 Milam Street, Suite 2100
Houston, TX 77002
CPF 2-2012-5012
Dear Mr. Gifford:
On March 14, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA),
Office of Pipeline Safety (OPS) issued to Genesis Pipeline USA, LP (Genesis) a Final Order
in the above-referenced case. The Order included an assessed civil penalty and a Compliance
Order.
The OPS Southern Region received and reviewed correspondence from Genesis regarding the
compliance items in the Order. Based on our review of this documentation and our
confirmation that Genesis has paid the civil penalty, we have determined that Genesis has
complied with the terms of the Final Order. Accordingly, this case is now closed and no
further action is necessary with respect to the matters involved in this case.
Please be advised that this letter refers only to the above described order (CPF 2-2012-5012)
and not to any other PHMSA pending cases. Thank you for your cooperation in this matter.
Sincerely,
Wayne T. Lemoi
Director, Office of Pipeline Safety
PHMSA Southern Region
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