{"operation":"document","citation":"CPF 220185001W","title":"COLLINS PIPELINE CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-02-02","effective_on":null,"summary":"CLOSED warning letter citing 195.452(b)(5), 195.49, 195.505(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220185001w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220185001w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220185001w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220185001W","body":"Warning Letter involving COLLINS PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.452(b)(5),  195.49,  195.505(i). The case was opened on 2018-02-02 and is reported as closed as of 2018-02-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220185001W_Operator Response to Notice_05242018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185001W/220185001W_Operator%20Response%20to%20Notice_05242018.pdf\n\n220185001W_Warning Letter_02022018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185001W/220185001W_Warning%20Letter_02022018.pdf\n\n220185001W_Warning Letter_02022018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185001W/220185001W_Warning%20Letter_02022018_text.pdf\n\n220185001W_Warning Letter_02022018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nFebruary 2, 2018\nMr. Thomas J. Nimbley\nChief Executive Officer, PBF Energy, Inc.\nCollins Pipeline Company\nMOEM Pipeline, LLC\n1 Sylvan Way, 2nd Floor\nParsippany, NJ 07054\nCPF 2-2018-5001W\nDear Mr. Nimbley:\nFrom July 25-27, 2017 and from August 8-10, 2017, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\npursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Collins Pipeline\nCompany (Collins) and MOEM Pipeline, LLC (MOEM), procedures and records in\nWoodlands, Texas. Collins and MOEM are subsidiaries of PBF Energy, Inc. (PBF).\nAs a result of the inspection, it is alleged that PBF has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items\ninspected and the probable violations are as follows:\n1. 195.452 Pipeline integrity management in high consequence areas.\n…(b) What program and practices must operators use to manage pipeline integrity?\nEach operator of a pipeline covered by this section must:\n…(5) Implement and follow the program.\nPBF failed to meet the regulation because it did not adequately implement and follow its\nIntegrity Management (IM) program. Specifically, PBF failed to identify pipeline\nsegments that could affect high consequence areas (HCAs) on its Collins and MOEM\npipelines, as required by its pipeline IM program.\n\n\n\nDuring their review of maps and records documenting identified HCAs, PHMSA\ninspectors noted overland flow spill paths identified for the segment of PBF’s Collins\npipeline traversing Lake Pontchartrain. Overland flow spill paths were denoted within\nwaterbodies for several segments of PBF’s MOEM pipeline as well. PBF personnel could\nnot explain the identification of potential “overland flow” in a waterbody. Furthermore,\nPBF personnel could not provide documentation demonstrating any water transport\nanalysis, for either pipeline, to identify any segments that could affect an HCA, as\nrequired by PBF’s IM program.\nMoreover, during subsequent discussions, PHMSA requested PBF to provide dispersion\nmodeling data for a segment of the MOEM pipeline that appeared likely to include a\n“could affect” HCA segment, but was not identified as such in PBF’s documentation. The\nchosen segment was in a water way identified by PBF as Lake Jean Louis Robin, and was\nclose to an ecologically-sensitive area. In an email, dated Sept. 26, 2017, PBF indicated\nthat their consultant had reviewed the subject area and determined the segment to be a\n“could affect” segment based on tidal influences. The operator subsequently added the\nMOEM pipeline segment (from Mile Post 24.8 to Mile Post 28.1) to its IM program as a\n“could affect” segment.\n2. §195.49 Annual report.\nEach operator must annually complete and submit DOT Form PHMSA F 7000-1.1\nfor each type of hazardous liquid pipeline facility operated at the end of the previous\nyear. An operator must submit the annual report by June 15 each year, except that\nfor the 2010 reporting year the report must be submitted by August 15, 2011. A\nseparate report is required for crude oil, HVL (including anhydrous ammonia),\npetroleum products, carbon dioxide pipelines, and fuel grade ethanol pipelines. For\neach state a pipeline traverses, an operator must separately complete those sections\non the form requiring information to be reported for each state.\nPBF’s 2016 annual report for the Collins Pipeline was not completed correctly.\nSection G.b, “Reassessment miles completed during the calendar year,” indicated no\nreassessment miles had been completed. PHMSA’s records review, however, revealed\nthat the Collins pipeline was in fact subject to an in-line inspection during the reporting\nperiod.\n3. §195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n…(i) After December 16, 2004, notify the Administrator or a state agency\nparticipating under 49 U.S.C. Chapter 601 if the operator significantly modifies the\nprogram after the administrator or state agency has verified that it complies with\nthis section. Notifications to PHMSA may be submitted by electronic mail to\nInformationResourcesManager@dot.gov, or by mail to ATTN: Information Resources\nManager DOT/PHMSA/OPS, East Building, 2nd Floor, E22–321, New Jersey\nAvenue SE., Washington, DC 20590.\n2\n\n\n\nPBF failed to meet the regulation because it did not notify the Administrator or\nparticipating state agency of significant modifications to its written qualification program.\nPBF acquired the Collins Pipeline and the MOEM Pipeline in December 2015. At that\ntime both pipelines were added to the PBF Energy Operator Qualification (OQ) program,\nbut PBF did not submit notification of this significant modification to its OQ program.\nAs of April 27, 2017, under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a\ncivil penalty not to exceed $209,002 per violation per day the violation persists up to a\nmaximum of $2,090,022 for a related series of violations. For violations occurring prior to\nNovember 2, 2015, the maximum penalty may not exceed $200,000 per violation per day,\nwith a maximum penalty not to exceed $2,000,000 for a related series of violations. We have\nreviewed the circumstances and supporting documents involved in this case, and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time.\nWe advise you to correct the items identified in this letter. Failure to do so will result in\nCollins Pipeline Company being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 2-2018-5001W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong with the complete original document you must provide a second copy of the document\nwith the portions you believe qualify for confidential treatment redacted and an explanation of\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nJames A. Urisko\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n3","truncated":false,"body_characters":7252}