{"operation":"document","citation":"CPF 220150003","title":"AMERIGAS PROPANE LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-04-30","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.614(b), 192.723(b)(1), 192.723(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220150003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220150003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220150003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220150003","body":"Notice of Probable Violation involving AMERIGAS PROPANE LP. PHMSA's enforcement data identifies the cited regulations as 192.614(b),  192.723(b)(1),  192.723(b)(2). The case was opened on 2015-04-30 and is reported as closed as of 2016-05-03. Proposed civil penalty: $43,200. Assessed civil penalty: $43,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220150003_Closure Letter_05032016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220150003/220150003_Closure%20Letter_05032016.pdf\n\n220150003_Closure Letter_05032016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220150003/220150003_Closure%20Letter_05032016_text.pdf\n\n220150003_Final Order_12112015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220150003/220150003_Final%20Order_12112015.pdf\n\n220150003_Final Order_12112015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220150003/220150003_Final%20Order_12112015_text.pdf\n\n220150003_nopv_pcp_pco_04302015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220150003/220150003_nopv_pcp_pco_04302015.pdf\n\n220150003_nopv_pcp_pco_04302015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220150003/220150003_nopv_pcp_pco_04302015_text.pdf\n\n220150003_Final Order_12112015_text.pdf\n\nDecember 11, 2015\nMr. Jerry E. Sheridan\nPresident and Chief Executive Officer\nAmeriGas Propane, LP\n460 North Gulph Road\nKing of Prussia, PA 19406\nRe: CPF No. 2-2015-0003\nDear Mr. Sheridan:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation, assesses a civil penalty of $43,200, and specifies actions that need to be taken by\nAmeriGas Propane, LP to comply with the pipeline safety regulations. The penalty payment\nterms are set forth in the Final Order. When the civil penalty has been paid and the terms of the\ncompliance order completed, as determined by the Director, Southern Region, this enforcement\naction will be closed. Service of the Final Order by certified mail is deemed effective upon the\ndate 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: Director, Southern Region, OPS\nMr. Chris Wagner, Director, Safety, Training, and Compliance, AmeriGas Propane, LP\nMs. Colleen Lynch, Associate Counsel, AmeriGas Propane, LP\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____________________________________\nIn the Matter of )\n)\n)\nAmeriGas Propane, LP, a subsidiary of )\nAmeriGas Propane, Inc. )\n)\nRespondent. )\n____________________________________)\n) CPF No. 2-2015-0003\nFINAL ORDER\nOn May 19-23, 2014, October 9-10, 2014, and March 19, 2015, pursuant to 49 U.S.C. § 60117,\nrepresentatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), inspected the records of AmeriGas Propane, LP (AmeriGas or\nRespondent) in its office in Orlando, Florida, as well as its liquefied petroleum gas (LPG)\npipeline systems in Orange and Seminole Counties, Florida. Respondent, a subsidiary of\nAmeriGas Propane, Inc.,1 owns and operates 6.5 miles of pipelines across 13 regulated LPG\nsystems in Orange County, Florida and Seminole County, Florida.2\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated April 30, 2015, a Notice of Probable Violation, Proposed Civil\nPenalty, Proposed Compliance Order (Notice), which also included a warning pursuant to 49\nC.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nAmeriGas had violated 49 C.F.R. §§ 192.614 and 192.723, and proposed assessing a civil\npenalty of $43,200 for the alleged violations. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violations. The Notice also stated the warning items\nrequired no further action, but warned the operator to correct the probable violation or face\npossible enforcement action.\nRespondent failed to respond in writing 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 AmeriGas’ right to\ncontest the allegations in the Notice and authorizes the Associate Administrator, without further\nnotice, to find facts as alleged in the Notice and to issue this Final Order under § 190.213. In this\n1 AmeriGas – Overview, http://investors.amerigas.com/investor-relations/ir-home/default.aspx (last visited\nNovember 2, 2015).\n2 Id.; see also Pipeline Safety Violation Report (Violation Report) (April 30, 2015) (on file with PHMSA), at 1.\n\n\n\nCPF No. 2-2015-0003\nPage 2\ncase, the Notice was mailed to Respondent by certified mail (USPS Article No. 7012-2210-0001-\n9165-3989) on April 30, 2015 and was received by Respondent on May 4, 2015, as shown by the\nreturn receipt on file with PHMSA.3 To date, Respondent has not responded in writing to the\nNotice. Under such circumstances, I find it reasonable and appropriate to enter this Final Order\nwithout further proceedings.4\nFINDINGS OF VIOLATION\nRespondent did not contest the allegations in the Notice that it violated 49 C.F.R. Part 192, as\nfollows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.614(b), which states:\n§ 192.614 Damage prevention program.\n(a)…\n(b) An operator may comply with any of the requirements of\nparagraph (c) of this section through participation in one public service\nprogram, such as a one-call system, but such participation does not relieve\nthe operator of responsibility for compliance with this section. However,\nan operator must perform the duties of paragraph (c)(3) of this section\nthrough participation in a one-call system, if that one-call system is a\nqualified one-call system. In areas that are covered by more than one\nqualified one-call system, an operator need only join one of the qualified\none-call systems if there is a central telephone number for excavators to\ncall for excavation activities, or if the one-call systems in those areas\ncommunicate with one another. An operator’s pipeline system must be\ncovered by a qualified one-call system where there is one in place. For the\npurpose of this section, a one-call system is considered a “qualified one-\ncall system” if it meets the requirements of section (b)(1) or (b)(2) of this\nsection.\nThe Notice alleged Respondent violated 49 C.F.R. § 192.614(b) by not complying with\n§ 192.614(c)(3) and participating in a qualified one-call system. Specifically, § 192.614(b) states\nan operator must adhere to § 192.614(c)(3) by participating in a qualified one-call system where\none is in place. AmeriGas breached § 192.614(b) by not participating in the State of Florida’s\nqualified one-call system – Florida Sunshine 811. Respondent violated this regulation by not\nregistering its Orange and Seminole County, Florida LPG distribution systems with Florida\nSunshine 811.\n3 United States Postal Service Return Receipt (Return Receipt) (May 4, 2015) (on file with PHMSA), at 1.\n4 In the Matter of Tampa Pipeline Corporation, Final Order (CPF No. 2-2008-6002] (April 26, 2010), 2010 WL\n6531627, (D.O.T.), August 27, 2010; See also, In the Matter of Tampa Bay Pipeline Corporation, Final Order (CPF\nNo. 2-2005-6012 (Dec. 1, 2006), 2008 WL 902910 (D.O.T.), March 31, 2008. PHMSA final orders are generally\naccessible on the agency’s website, available at http://primis.phmsa.dot.gov/comm/reports/enforce/Actions.\n\n\n\nCPF No. 2-2015-0003\nPage 3\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. § 192.614(b) by failing to register its\nOrange and Seminole County, Florida LPG distribution systems with Florida Sunshine 811.\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$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.5 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; 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 $43,200 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $43,200 for Respondent’s violation of 49 C.F.R.\n§ 192.614(b), for failing to register its Orange and Seminole County, Florida LPG distribution\nsystems with Florida Sunshine 811. AmeriGas neither contested the allegation nor presented any\nevidence or argument justifying a reduction or elimination of the proposed penalty. Further, the\nfailure to register its Orange and Seminole County, Florida LPG distribution systems is a serious\nviolation that could affect the ongoing physical and operational integrity of these systems, as\nwell as possibly lead to adverse consequences to the people and environment surrounding these\nsystems. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $ 43,200 for violation of 49 C.F.R. § § 192.614(b).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $43,200.\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 (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8845.\n5 The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, Pub. L. No. 112-90, § 2(a)(1), 125 Stat.\n1904, January 3, 2012, increased the civil penalty liability for violating a pipeline safety standard to $200,000 per\nviolation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.\n\n\n\nCPF No. 2-2015-0003\nPage 4\nFailure to pay the $43,200 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 Items 1 in the Notice for a violation of\n49 C.F.R. § 192.614(b). 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:\nWith respect to the violation of § 192.614(b) (Item 1), Respondent must:\n1) Ensure that all of its PHMSA regulated systems in the State of Florida are covered by a\nqualified one-call system;\n2) Complete the above item and prepare records to document the results within 90 days after\nthe receipt of this Final Order;\n3) Within 100 days following receipt of this Final Order, AmeriGas must provide to the\nDirector, Office of Pipeline Safety, PHMSA Southern Region, written documentation\nconfirming the Compliance Order Items have been completed. The documentation, at a\nminimum, must include: a list of systems by district responsible for its operation, the date\nAmeriGas began operating the system, the date the system was first covered by a\nqualified one-call system, and verification that each system is actively covered by a\nqualified one-call system.\n4) It is requested (not mandated) that AmeriGas maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total\nto the Director, Southern Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1) total\ncost associated with preparation/revision of plans, procedures, studies and analyses, and\n2) total cost associated 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.\n\n\n\nCPF No. 2-2015-0003\nPage 5\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 ITEMS\nWith respect to Items 2 and 3, the Notice alleged probable violations of 49 C.F.R. Part 192.723\nbut did not propose a civil penalty or compliance order for these items. Therefore, these are\nconsidered to be warning items. The warning(s) were for:\n49 C.F.R. § 192.723(b)(1) (Item 2) ─ Respondent’s alleged failure to conduct\nleakage surveys at its Metro West, Avalon, and Oviedo systems at intervals not\nexceeding 15 months, but at least once each calendar year; and\n49 C.F.R. § 192.723(b)(2) (Item 3) ─ Respondent’s alleged failure to conduct a\nleakage survey at its Lake Roper system at least once every five calendar years,\nbut at intervals not exceeding 63 months.\nIf OPS finds a violation of these regulations in a subsequent inspection, Respondent may be\nsubject to future enforcement action.\nUnder 49 C.F.R. § 190.243, 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. § 190.243. 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 49\nC.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n220150003_Closure Letter_05032016_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 3, 2016\nMr. Jerry E. Sheridan\nPresident and Chief Executive Officer\nAmeriGas Propane, LP\n460 North Gulph Road\nKing of Prussia, PA 19406\nCPF 2-2015-0003\nDear Mr. Sheridan:\nOn December 11, 2015, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS) issued AmeriGas Propane, L.P. (AmeriGas) a\nFinal Order with a Civil Penalty and Compliance Order (CO). The CO required AmeriGas to\nundertake certain actions to ensure compliance with the federal pipeline safety regulations.\nAmeriGas paid the Civil Penalty on January 12, 2016.\nOn April 4, 2016, we received a request, dated March 29, 2016, from Christopher Wagner\nrequesting additional time to complete CO Item 3, the submittal of documentation confirming\nthat all CO Items had been completed. The OPS, Southern Region granted AmeriGas an\nextension until May 4, 2016. AmeriGas submitted written documentation confirming the\ncompletion of all CO Items on April 26, 2016.\nBased upon payment of the civil penalty, our review of the actions taken by AmeriGas and the\nsupporting documentation, we have determined that AmeriGas has complied with the terms of\nthe CO and the Final Order. This case is now closed and no further action is necessary with\nrespect to the matters involved in this case.\nPlease be advised that this letter refers only to the above referenced order (CPF 2-2015-0003)\nand not to any other PHMSA cases, if any.\nSincerely,\nJames A. Urisko\nDirector, Office of Pipeline Safety\nPHMSA Southern Region","truncated":false,"body_characters":17513}