{"operation":"document","citation":"CPF 220185002","title":"PLAINS PIPELINE, L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-06-21","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.64(c)(1)(iii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220185002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220185002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220185002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220185002","body":"Notice of Probable Violation involving PLAINS PIPELINE, L.P.. PHMSA's enforcement data identifies the cited regulation as 195.64(c)(1)(iii). The case was opened on 2018-06-21 and is reported as closed as of 2019-06-03. Proposed civil penalty: $36,200. Assessed civil penalty: $19,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220185002_Final Order_05202019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185002/220185002_Final%20Order_05202019.pdf\n\n220185002_Final Order_05202019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185002/220185002_Final%20Order_05202019_text.pdf\n\n220185002_NOPV PCP_06212018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185002/220185002_NOPV%20PCP_06212018.pdf\n\n220185002_NOPV PCP_06212018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185002/220185002_NOPV%20PCP_06212018_text.pdf\n\n220185002_Operator Response to Notice_08162018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220185002/220185002_Operator%20Response%20to%20Notice_08162018.pdf\n\n220185002_Final Order_05202019_text.pdf\n\nMay 20, 2019\nMr. Willie Chiang\nChief Executive Officer and Director\nPlains All American Pipeline, LP\n333 Clay Street, Suite 1600\nHouston, Texas 77002\nRe: CPF No. 2-2018-5002\nDear Mr. Chiang:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a reduced civil penalty of $19,000 against Plains Pipeline, LP, a subsidiary\nof Plains All American Pipeline, LP. The penalty payment terms are set forth in the Final Order.\nThis enforcement action closes automatically upon receipt of payment. Service of the Final\nOrder by certified mail is effective upon the date of mailing as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. James Urisko, Director, Southern Region, Office of Pipeline Safety, PHMSA\nMr. Dean Gore, Vice President, Environmental and Regulatory Compliance, Plains All\nAmerican Pipeline, LP, 333 Clay Street, Suite 1600, Houston, Texas 77002\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)\nPlains Pipeline, LP, a subsidiary of Plains All American Pipeline, LP, )\n)\nRespondent. )\n________________________________________________)\n) CPF No. 2-2018-5002\nFINAL ORDER\nOn May 15, 2018, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), reviewed Plains\nPipeline, LP’s (Plains or Respondent) Operator Registry Notification F-20180514-20608, dated\nMay 14, 2018. Plains is an operating subsidiary of Plains All American Pipeline, LP (PAA).\nPAA has approximately 18,700 miles of active crude oil and natural gas liquid pipelines and\ngathering systems in the United States.1\nAs a result of PHMSA’s review, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated June 21, 2018, a Notice of Probable Violation and Proposed Civil\nPenalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nPlains had violated 49 C.F.R. § 195.64 and proposed assessing a civil penalty of $36,200 for the\nalleged violation.\nPlains responded to the Notice by letter dated August 16, 2018 (Response). The company did\nnot contest the allegation of violation, but provided an explanation of its actions and requested\nthat the proposed civil penalty be reduced. Respondent did not request a hearing and therefore\nhas waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Plains did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.64, which states in relevant\npart:\n1 Plains All American Pipeline, LP website, available at https://www.plainsallamerican.com/what-we-\ndo/transportation, (Last accessed March 1, 2019).\n\n\n\nCPF 2-2018-5002\nPage 2\n§ 195.64 National Registry of Pipeline and LNG Operators.\n(a)….\n(c) Changes. Each operator must notify PHMSA electronically\nthrough the National Registry of Pipeline and LNG Operators at\nhttp://opsweb.phmsa.dot.gov, of certain events.\n(1) An operator must notify PHMSA of any of the following events\nnot later than 60 days before the events occurs:\n(i)….\n(iii) Reversal of product flow direction when the reversal is\nexpected to last more than 30 days. This notification is not required for\npipeline systems already designed for bi-directional flow; or…\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.64(c)(1)(iii) by failing to notify\nPHMSA of a flow reversal project, for which the flow reversal was expected to last more than 30\ndays, not later than 60 days before the event occurred. Specifically, the Notice alleged that\nPlains submitted an Operator Registry Notification to PHMSA on May 14, 2018, for a flow\nreversal project that was scheduled to begin on July 1, 2018–48 days before the reversal was\nscheduled to occur. The Notice described the project as the flow reversal of the 10-inch Liberty\nto Lumberton pipeline in Mississippi, as well as making the 14-inch Lumberton to Ten Mile\npipeline, which runs from Alabama to Mississippi, flow bi-directionally. The Notice also alleged\nthat the flow reversal would be in place for at least two years.\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. § 195.64(c)(1)(iii) by failing to notify\nPHMSA of a flow reversal project, for which the flow reversal was expected to last more than 30\ndays, not later than 60 days before the event occurred.\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.2 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; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $36,200 for the violation cited above.\n2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,\n83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).\n\n\n\nCPF 2-2018-5002\nPage 3\nItem 1: The Notice proposed a civil penalty of $36,200 for Respondent’s violation of 49 C.F.R.\n§ 195.64(c)(1)(iii), for failing to notify PHMSA of a flow reversal project, for which the flow\nreversal was expected to last more than 30 days, not later than 60 days before the event occurred.\nIn its Response, Plains requested a reduction in the penalty and claimed mitigating factors that\nresulted in non-compliance. Plains explained that the flow reversal project was originally\nscheduled to be completed by September 1, 2018. However, it was informed by the customer\nthat its existing market would be shutdown effective July 1, 2018. Consequently, to keep from\nstranding barrels in the field, the customer requested that Plains expedite the flow reversal\nproject. Plains noted that while it missed the 60-day notification by 12 days, PHMSA still had\n48 days in which to schedule and witness the reversals.\nI find that the mitigating factors offered by Plains provide a reasonable justification for Plains’s\nnon-compliance and demonstrate that the Respondent made a good faith attempt to comply with\nthe pipeline safety regulations. Plains’s non-compliance with the notification requirement was\nprompted by circumstances beyond its control: specifically, due to a change in market conditions\nfor a customer and to prevent stranding barrels in the field, Plains expedited its flow reversal\nproject. Once the project deadline changed, Plains notified PHMSA, missing the notification\ndeadline by 12 days. I find that these mitigating factors, are reasonable justification for non-\ncompliance and justify a reduction in the civil penalty.\nBased upon the foregoing, I assess Respondent a reduced civil penalty of $19,000 for violation\nof 49 C.F.R. § 195.64(c)(1)(iii).\nFailure to pay the $19,000 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.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of the\nFinal Order by Respondent. Any petition submitted must contain a brief statement of the issue(s)\nand meet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically\nstays the payment of any civil penalty assessed. The other terms of the order, including any\ncorrective action, remain in effect unless the Associate Administrator, upon request, grants a\nstay. If Respondent submits payment of the civil penalty, the Final Order becomes the final\nadministrative decision and the right to petition for reconsideration is waived. The terms and\nconditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5.\nMay 20, 2019\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":10722}