{"operation":"document","citation":"CPF 220126020","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":"2012-10-17","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.440(a), 195.440(g).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220126020.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220126020.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220126020","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220126020","body":"Notice of Probable Violation involving PIPELINES OF PUERTO RICO INCD, THE. PHMSA's enforcement data identifies the cited regulations as 195.440(a),  195.440(g). The case was opened on 2012-10-17 and is reported as closed as of 2013-04-09. Proposed civil penalty: $8,700. Assessed civil penalty: $8,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220126020_closure letter_04092013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220126020/220126020_closure%20letter_04092013.pdf\n\n220126020_closure letter_04092013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220126020/220126020_closure%20letter_04092013_text.pdf\n\n220126020_Final Order_02282013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220126020/220126020_Final%20Order_02282013.pdf\n\n220126020_Final Order_02282013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220126020/220126020_Final%20Order_02282013_text.pdf\n\n220126020_nopv_pcp_pco_10172012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220126020/220126020_nopv_pcp_pco_10172012.pdf\n\n220126020_nopv_pcp_pco_10172012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220126020/220126020_nopv_pcp_pco_10172012_text.pdf\n\n220126020_Final Order_02282013_text.pdf\n\nFEBRUARY 28, 2013\nMr. Robert Rose\nPresident\nThe Pipelines of Puerto Rico, Inc.\nP.O. Box 35236\nSarasota, FL 34242\nRe: CPF No. 2-2012-6020\nDear Mr. Rose:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $8,700, 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\n.\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\n)\n)\nThe Pipelines of Puerto Rico, Inc., )\nRespondent. )\n____________________________________)\n) CPF No. 2-2012-6020\nFINAL ORDER\nOn June 11-12, 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 written Public Awareness Plan (PAP) of\nThe Pipelines of Puerto Rico, Inc. (PLPR or Respondent), in San Juan, Puerto Rico.1 PLPR\noperates a 9.5-mile jet fuel pipeline from the Cataño Pump Station in Guaynabo to the Luis\nMuñoz Marin International Airport in Carolina, Puerto Rico.\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated October 17, 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\nPLPR had violated 49 C.F.R. § 195.440(a) and proposed assessing a civil penalty of $8,700 for\nthe alleged violation. The Notice also proposed ordering Respondent to take certain measures to\ncorrect an alleged violation of § 195.440 (g). The warning item 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 0001 1340\n6788) on October 17, 2012, and was received by Respondent on October 20, 2012, as shown by\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\nthe return receipt on file with PHMSA.\nTo date, Respondent has never acknowledged nor responded to the Notice. Under such\ncircumstances, I find it reasonable and appropriate to enter this Final Order without further\nproceedings.2\nFINDINGS OF VIOLATION\nThe company did not respond to the allegations in the Notice that it violated 49 C.F.R. Part 195,\nas 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 8.4\nand Table 8-1 of API RP 1162. Specifically, the Notice alleged that PLPR had not assessed the\neffectiveness of its PAP every four years, in accordance with its written program and API RP\n1162. To demonstrate completion of its effectiveness review, during the inspection, Respondent\nprovided PHMSA with a document entitled Conformation of PLPR Management Joint Public\nAwareness Program review and Support.\n3 PHMSA found the document to be a memo, which\nstates, in relevant part:\n“Conformation of PLPR Management Joint Public Awareness Program\nreview and Support\nOn 5/13/2010 a joint [Luis Rodriguez and myself] review of PLPR\nPublic Awareness Program. PLPR’s Public Awareness Plan, Public\nAwareness Method of Communication and Notification letters discussed.\nConcur with plans to proceed with providing appropriate stakeholder\naudiences communications with hand delivery of printed materials and\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.\n3 Pipeline Safety Violation Report (Violation Report) (Oct. 23, 2012) (on file with PHMSA), Exhibit A.\n\n\n\n3\nface-to-face personal contact being primary message delivery method.\nContinuation of local procedure for providing pens and magnets during\nface-to-face contact is encouraged where appropriate. Public notification\ncalls concerning ROW activity and zero (0) third party damage result of\nzero (0) attest to positive program bottom line results…”\nAfter a thorough review of the document, PHMSA found no evidence, information, or data that\nPLPR had assessed the effectiveness of its public awareness program every four years in\naccordance with API RP 1162.\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 assess the\neffectiveness of its public awareness program every four years, in accordance with its written\nPublic Awareness Program and Section 8.4 and Table 8-1 of API RP 1162.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(g), which states:\n§ 195.440 – Public awareness.\n(a)\n(g) The program must be conducted in English and in other languages\ncommonly understood by a significant number and concentration of the\nnon-English speaking population in the operator’s area.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(g) by failing to conduct its\nPAP in other languages commonly understood by a significant number and concentration of the\npopulation in the operator’s area. PHMSA found that Respondent had written and distributed its\nPAP message material entirely in Spanish.4 Specifically, the Notice alleged that PLPR had not\nconducted its public awareness program in English, a language commonly understood by a\nsignificant number and concentration of the non-Spanish speaking population in the operator’s\narea, as required by 49 C.F.R. § 195.440(g).\nRespondent did not contest this allegation of violation. Puerto Rico is a territory of the United\nStates. English, along with Spanish, is an official language in Puerto Rico. As of 2012, English\nremains an official language in the Commonwealth of Puerto Rico.5 Accordingly, based upon a\nreview of all of the evidence, I find that Respondent violated 49 C.F.R. § 195.440(g) by failing to\nconduct its PAP in English, a language commonly understood by a significant concentration of\nthe non-Spanish speaking population in the operator’s area.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n4 Violation Report, Exhibit A.\n5 https://www.cia.gov/library/publications/the-world-factbook/geos/rq html\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$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under 49 U.S.C.\n§ 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; and any effect\nthat the penalty may have on its ability to continue doing business; and the good faith of\nRespondent in attempting to comply with the pipeline safety regulations. In addition, I may\nconsider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a total\ncivil penalty of $8,700 for the violation of Section 195.440(a).\nItem 2: The Notice proposed a civil penalty of $8,700 for Respondent’s violation of\n49 C.F.R. § 195.440(a), for failing to assess the effectiveness of its public awareness program\nevery four years, as required by its written Public Awareness Program and API RP 1162, Section\n8.4. As noted above, PLPR failed to respond to the Notice. With respect to the nature and\ngravity of this violation, the failure to adequately notify and educate all of the public along or\nnear the pipeline right-of-way to recognize a hazardous liquid pipeline emergency could have\ncatastrophic results in the event of a release. In terms of culpability, Respondent’s senior\nmanagement knew or should have known of its responsibility to meet the various requirements\nof its written Public Awareness Program and API RP 1162. Accordingly, having reviewed the\nrecord and considered the assessment criteria, I assess Respondent a civil penalty of $8,700 for\nviolation of 49 C.F.R. § 195.440(a).\nPayment of the civil penalty must be made within 20 days of service of this Final Order.\nPayment may be made by sending a certified check or money order (containing the CPF Number\nfor this case), made payable to “U.S. Department of Transportation,” to the Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, Financial Operations Division (AMZ-\n341), P.O. Box 269039, Oklahoma City, Oklahoma 73125. Federal regulations (49 C.F.R.\n§ 89.21(b)(3)) also permit payment to be made by wire transfer through the Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions\nare contained in the enclosure. Questions concerning wire transfers should be directed to:\nFinancial Operations Division (AMZ-341), Federal Aviation Administration, Mike Monroney\nAeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The Financial\nOperations Division telephone number is (405) 954-8893.\nFailure to pay the $8,700 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.\n\n\n\n5\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 2 and 3 in the Notice for violation\nof 49 C.F.R. § 195.440(a) and (g). 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 § 195.440(a) (Item 2), Respondent must, within\n30 days of receipt of this Order, conduct a PAP Effectiveness Evaluation. In\naddition, Respondent must-\na. Submit written documentation to the Director, Southern Region, to verify\nthat an effectiveness evaluation has been completed, within 45 days of\nreceipt of this Order.\n2. With respect to the violation of § 195.440(g) (Item 3), Respondent must, within\n60 days of receipt of this Order, prepare and distribute new PAP message\nmaterial that includes the English language. In addition, Respondent must-\na. Submit written documentation to the Director, Southern Region, to verify\nthat the company has prepared and distributed the new message material in\nEnglish, within 75 days of receipt of this Order.\n3. It is requested, but not required, that PLPR maintain documentation of the safety-\nimprovement costs associated with fulfilling the terms of this Compliance Order\nand submit the total to Wayne T. Lemoi, Director, Southern Region. It is\nrequested that costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies, and analyses; and (2) total cost\nassociated with replacements, additions, and other changes to pipeline\ninfrastructure.\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 $200,000 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 ITEM\nWith respect to Item 1, the Notice alleged a probable violation of Part 195 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n\n\n\n6\n49 C.F.R. § 195.440 (a) (Item 1) ─ Respondent’s alleged failure to complete its\n2009 annual program implementation audit, to determine whether the company\nhad developed and implemented its PAP in accordance with API RP 1162,\nSection 8.3, Measuring Program Implementation.\nIf OPS finds a violation of this item in a subsequent inspection, Respondent may be subject to\nfuture 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\n\n220126020_closure letter_04092013_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 9, 2013\nMr. Robert Rose\nPresident\nThe Pipelines of Puerto Rico, Inc.\nP.O. Box 35236\nSarasota, FL 34242\nCPF 2-2012-6020\nDear Mr. Rose:\nOn February 28, 2013, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS) issued to The Pipelines of Puerto Rico, Inc.\n(PLPR) a Final Order in the above-referenced case, which included an assessed civil penalty\nand a Compliance Order.\nThe OPS Southern Region received and reviewed PLPR’s email response to the compliance\nitems in the Order. Based on our review of this documentation and our confirmation that\nPLPR has paid the civil penalty, we have determined that PLPR has complied with the terms\nof the Final Order. Accordingly, this case is now closed and no further action is necessary\nwith respect to the matters involved in this case.\nPlease be advised that this letter refers only to the above described order (CPF 2-2012-6020)\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":19026}