{"operation":"document","citation":"CPF 220195001","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":"2019-01-25","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(f)(1), 195.452(i)(1), 195.452(i)(2), 195.452(j)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220195001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220195001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220195001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220195001","body":"Notice of Probable Violation involving GENESIS PIPELINE USA, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.452(f)(1),  195.452(i)(1),  195.452(i)(2),  195.452(j)(2). The case was opened on 2019-01-25 and is reported as closed as of 2020-02-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220195001_Closure Letter_02052020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_Closure%20Letter_02052020.pdf\n\n220195001_Closure Letter_02052020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_Closure%20Letter_02052020_text.pdf\n\n220195001_Final Order_08082019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_Final%20Order_08082019.pdf\n\n220195001_Final Order_08082019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_Final%20Order_08082019_text.pdf\n\n220195001_NOPV PCO_01252019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_NOPV%20PCO_01252019.pdf\n\n220195001_NOPV PCO_01252019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_NOPV%20PCO_01252019_text.pdf\n\n220195001_Operator Response to Notice_02252019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220195001/220195001_Operator%20Response%20to%20Notice_02252019.pdf\n\n220195001_Final Order_08082019_text.pdf\n\nAugust 8, 2019\nMr. Grant E. Sims\nChief Operating Officer\nGenesis Energy, LP\n919 Milam Street, Suite 2100\nHouston, Texas 77002\nRe: CPF No. 2-2019-5001\nDear Mr. Sims:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by your subsidiary, Genesis Pipeline USA,\nLP, to comply with the pipeline safety regulations. When the terms of the compliance order have\nbeen completed, as determined by the Director, Southern Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is effective upon the date of mailing, as\nprovided 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. Jeffrey W. Gifford, Vice President, HSSE, Genesis Pipeline USA, 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 )\nGenesis Pipeline USA, LP, ) CPF No. 2-2019-5001\na subsidiary of Genesis Energy, LP, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom February 26 through June 8, 2018, pursuant to 49 U.S.C. § 60117, representatives of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Genesis\nPipeline USA, LP, and Genesis Pipeline Alabama, LLC, subsidiaries of Genesis Energy, LP,1\n(collectively referred to as Genesis or Respondent) in Alabama, Florida, Mississippi. Genesis\nPipeline USA, LP, consists of 4-inch through 6-inch pipelines transporting crude oil in Alabama,\nFlorida, and Mississippi. Genesis Pipeline Alabama, LLC, is a 31-mile 8-inch pipeline\ntransporting crude oil in Alabama.\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated January 25, 2019, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Genesis had committed four violations of 49 C.F.R. Part 195 and proposed ordering\nRespondent to take certain measures to correct the alleged violations.\nGenesis responded to the Notice by letter dated February 25, 2019 (Response). The company\ndid not contest the allegations of violation but provided information concerning the corrective\nactions it had taken. Respondent did not request a hearing and therefore has waived its right to\none.\nFINDINGS OF VIOLATION\nIn its Response, Genesis did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 US SEC Form 10-K, Ex. 21.1, Genesis Energy, LP, available at\nhttps://www.sec.gov/Archives/edgar/data/1022321/000102232118000024/gel12312017exhibit211 htm (last\naccessed July 17, 2019).\n\n\n\nCPF No. 2-2019-5001\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(f)(1) which states, in\nrelevant part:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) ….\n(f) What are the elements of an integrity management program? An\nintegrity management program begins with the initial framework. An\noperator must continually change the program to reflect operating\nexperience, conclusions drawn from results of the integrity assessments,\nand other maintenance and surveillance data, and evaluation of\nconsequences of a failure on the high consequence area. An operator must\ninclude, at minimum, each of the following elements in its written integrity\nmanagement program:\n(1) A process for identifying which pipeline segments could affect a\nhigh consequence area...\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(f)(1) by failing to include in its\nIntegrity Management (IM) Program a process for identifying which pipeline segments could\naffect a high consequence area (HCA). Specifically, the Notice alleged that Genesis’ IM\nprogram did not include a process for identifying facilities other than line pipe on its pipeline\nsystem that could affect a HCA.\nThe integrity management regulations in section §195.452 are applicable to all pipelines that\nmeet the requirements in 195.452(a). Specifically, §195.452 (a) through (k) applies to “each\nhazardous liquid pipeline and carbon dioxide pipeline that could affect a high consequence\narea….” A “Pipeline or pipeline systems” and a “Pipeline facility” are defined in §195.2\nDefinitions. Pipeline or pipeline system means all part of a pipeline facility through which a\nhazardous liquid or carbon dioxide moves in transportation, including but not limited to, line\npipe, valves, and other appurtenances connected to line pipe, pumping units, fabricated\nassemblies associated pumping units, metering and delivery stations and fabricated assemblies\ntherein, and breakout tanks. Pipeline facility means new and existing pipe, rights-of-way and\nany equipment, facility, or building used in the transportation of hazarouds liquids or carbon\ndioxide.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nthe evidence, I find that Respondent violated 49 C.F.R. § 195.452(f)(1) by failing to include in\nits IM program a process for identifying facilities other than line pipe on its pipeline segment that\ncould affect an HCA.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(i)(1), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) ….\n(i) What preventative and mitigative measures must an operator take to\nprotect the high consequence area?—(1) General requirements. An\noperator must take measures to protect and mitigate the consequences of a\nfailure that could affect a high consequence area. These measures include\n\n\n\nCPF No. 2-2019-5001\nPage 3\nconducting a risk analysis of the pipeline segment to identify additional\nactions to enhance public safety or environmental protection where\ncorrosion is a concern, establishing shorter inspection intervals, installing\nEFRDs on the pipeline segment, modifying the systems that monitor\npressure and detect leaks, providing additional training to personnel on\nresponse procedures, conducting drills with local emergency responders\nand adopting other management controls.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(i)(1) by failing to take\nmeasures to prevent and mitigate the consequences of a pipeline failure that could affect an\nHCA. Specifically, the Notice alleged that Genesis did not identify preventative and mitigative\nmeasures (P&MMs) for facilities other than line pipe on its pipeline system that could affect an\nHCA (See Item 1 for a definition of a pipeline system).\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. § 195.452(i)(1) by failing to take\nmeasures to prevent and mitigate the consequences of a pipeline failure that could affect an\nHCA.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(i)(2), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) ….\n(i) What preventative and mitigative measures must an operator take to\nprotect the high consequence area?\n(1) ….\n(2) Risk analysis criteria. In identifying the need for additional\npreventive and mitigative measures, an operator must evaluate the\nlikelihood of a pipeline release occurring and how a release could affect the\nhigh consequence area. This determination must consider all relevant risk\nfactors, including, but not limited to:\n(i) Terrain surrounding the pipeline segment, including drainage\nsystems such as small streams and other smaller waterways that could act\nas a conduit to the high consequence area;\n(ii) Elevation profile;\n(iii) Characteristics of the product transported;\n(iv) Amount of product that could be released;\n(v) Possibility of a spillage in a farm field following the drain tile into\na waterway;\n(vi) Ditches along side a roadway the pipeline crosses;\n(vii) Physical support of the pipeline segment such as by a cable\nsuspension bridge;\n(viii) Exposure of the pipeline to operating pressure exceeding\nestablished maximum operating pressure.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(i)(2) by failing to perform a\nrisk analysis evaluating the likelihood of a pipeline release occurring and how a release could\n\n\n\nCPF No. 2-2019-5001\nPage 4\naffect the high consequence area. Specifically, the Notice alleged that Genesis failed to include\npipeline facilities other than line pipe in its risk analysis. (See Item 1 for a definition of a pipeline\nfacility).\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. § 195.452(i)(2) by failing to perform a\nrisk analysis evaluating the likelihood of a pipeline release occurring from pipeline facilities\nother than line pipe and how a release could affect the high consequence area\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(j)(2) which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) ….\n(j) What is a continual process of evaluation and assessment to\nmaintain a pipeline’s integrity?\n(1) ….\n(2) Evaluation. An operator must conduct a periodic evaluation as\nfrequently as needed to assure pipeline integrity. An operator must base the\nfrequency of evaluation on risk factors specific to its pipeline, including the\nfactors specified in paragraph (e) of this section. The evaluation must\nconsider the results of the baseline and periodic integrity assessments,\ninformation analysis (paragraph (g) of this section), and decisions about\nremediation, preventive and mitigative actions (paragraphs (h) and (i) of\nthis section).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(j)(2) by failing to conduct\nperiodic evaluations as frequently as needed to assure pipeline integrity. Specifically, the Notice\nalleged that Genesis personnel were unable to produce any record or documentation that pipeline\nfacilities other than line pipe had ever been evaluated to assure their integrity. (See Item 1 for a\ndefinition of a pipeline facility).Respondent did not contest this allegation of violation.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 195.452(j)(2) by failing to conduct periodic evaluations as frequently as needed to\nassure pipeline integrity on pipeline facilities other than line pipe.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, 3 and 4 in the Notice for\nviolations of 49 C.F.R. §§ 195.452(a)(f)(1), 195.452(i)(1), 195.452(i)(2), and 195.452(j)(2),\nrespectively. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of\nhazardous liquids or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. The Director has indicated that\nRespondent has taken the following actions to address some of the cited violations:\n\n\n\nCPF No. 2-2019-5001\nPage 5\nIn its Response, Genesis provided updated, revised procedures to its IM program which partially\naddressed the issues identified in the Notice, but have not yet achieved full compliance with the\nterms of the Proposed Compliance Order (PCO) contained within the Notice.\nAccordingly, I find that compliance has not been achieved with respect to these violations.\nTherefore, the compliance terms proposed in the Notice for Items 1, 2, 3, and 4 are included in\nthis Order.\nAccordingly, pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.452(f)(1) (Item 1), Respondent must:\na. Develop procedures for identifying facilities other than line pipe on its\npipeline system for inclusion in its Integrity Management (IM) program.\nb. Submit procedures developed in accordance with 1a of this Compliance Order\nto the Director, Office of Pipeline Safety (OPS), PHMSA Southern Region,\nfor approval.\nc. Identify all facilities that could affect an HCA in accordance with the\napproved procedures. Genesis must maintain records and documentation of\nthe results, and make those records available for OPS inspection.\n2. With respect to the violations of §§ 195.452(i)(1), 195.452(i)(2), and\n195.452(j)(2) (Items 2, 3, and 4), Respondent must:\na. Develop procedures for identifying preventative and mitigative measures\n(P&MMs) for facilities other than line pipe on its pipeline system that could\naffect an HCA for inclusion in its IM program.\nb. Develop risk analysis procedures for facilities other than line pipe for\ninclusion in its IM program.\nc. Develop procedures to conduct periodic evaluations of pipeline facilities other\nthan line pipe on its pipeline system that could affect an HCA for inclusion in\nits IM program.\nd. Submit procedures developed in accordance with 2a, 2b, and 2c of this\nCompliance Order to the Director, OPS, PHMSA Southern Region, for\napproval.\ne. Identify P&MMs, perform risk analysis, and conduct evaluations of facilities\nother than line pipe on its pipeline system that could affect an HCA, in\naccordance with the approved procedure. Genesis must maintain all records\nand documentation of the results, and make those records available for OPS\n\n\n\nCPF No. 2-2019-5001\nPage 6\ninspection, upon request.\n3. Genesis must complete the above items within the following time requirements:\na. Within 30 days of receipt of the Final Order, Genesis must complete the\nrequirements of Items 1a, 2a, and 2c of this Compliance Order.\nb. Within 90 days of receipt of the Final Order Genesis must complete the\nrequirements of Items 1b and 2d of this Compliance Order.\nc. Within 150 days of receipt of the Final Order, Genesis must provide written\ndocumentation summarizing the results of Items 1c and 2e of this Compliance\nOrder to the Director, OPS, PHMSA Southern Region, for approval.\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.\nIt is requested (not mandated) that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to the\nDirector. It is requested that these costs be reported in two categories: (1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated\nwith replacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for each\nday the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court 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 this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nAugust 8, 2019\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n220195001_Closure Letter_02052020_text.pdf\n\nFEDEX EXPRESS MAIL\nFebruary 5, 2020\nMr. Grant E. Sims\nChief Operating Officer\nGenesis Energy, LP\n919 Milam Street, Suite 2100\nHouston, Texas 77002\nCPF No. 2-2019-5001\nDear Mr. Sims:\nOn August 8, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Genesis Pipeline USA, LP (Genesis) a Final Order in the above-referenced case. The\nFinal Order included a Compliance Order (CO) which required Genesis to undertake certain\nactions to ensure compliance with the federal pipeline safety regulations.\nIn response to the CO, Genesis made numerous submittals to OPS Southern Region,\ndocumenting its efforts toward compliance.\nBased upon our review of documentation of actions taken, we have determined that Genesis has\ncomplied with the terms of the CO and the Final Order. This case is now closed and no further\naction is necessary with respect to the matters involved in this case.\nPlease be advised that this letter refers only to the above referenced order (CPF 2-2019-5001)\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":19009}