{"operation":"document","citation":"CPF 22023009WL","title":"MCCAIN PIPELINE COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-07-28","effective_on":null,"summary":"CLOSED warning letter citing 195.49.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-22023009wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-22023009wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-22023009wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/22023009WL","body":"Warning Letter involving MCCAIN PIPELINE COMPANY. PHMSA's enforcement data identifies the cited regulation as 195.49. The case was opened on 2023-07-28 and is reported as closed as of 2023-07-28. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n22023009WL_Warning Letter_07282023_(22-238348) _text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/22023009WL/22023009WL_Warning%20Letter_07282023_(22-238348)%20_text.pdf\n\n22023009WL_Warning Letter_07282023_(22-238348).pdf: https://primis.phmsa.dot.gov/enforcement-documents/22023009WL/22023009WL_Warning%20Letter_07282023_(22-238348).pdf\n\n22023009WL_Warning Letter_07282023_(22-238348) _text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 28, 2023\nMark Rauch\nPresident, Pipeline & Terminal Management Corporation\n4635 Southwest Freeway\nSuite 910\nHouston, TX 77027\nCPF 2-2023-009-WL\nDear Mr. Rauch:\nFrom November 7 to November 8, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), performed an on-site inspection of your McCain Pipeline Company facility and records\nin Lauderdale, Mississippi.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n1. § 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.\n\n\n\nMcCain failed to comply with the regulation because it did not accurately complete and submit\nDOT Form PHMSA F7000-1.1 (Annual Report) for each type of hazardous liquid pipeline\nfacility it operated at the end of the previous year. Specifically, Annual Reports between 2017\nand 2021 did not accurately reflect the correct number of breakout tanks within the system.\nDuring an on-site field inspection, PHMSA inspectors observed one breakout tank within the\noperator's system. The Annual Reports for Calendar Years (CY) 2017, 2019, and 2020 include\nzero breakout tanks. The Annual Report for CY 2018 includes three breakout tanks. The Annual\nReport for CY 2021 includes two breakout tanks.\nFollowing PHMSA’s identification of the discrepancy, McCain acknowledged that it would need\nto submit supplemental Annual Reports for CY 2017 through 2021, updating the number of\nbreakout tanks to “one.” As of March 1, 2023, three months and 21 days after the on-site field\ninspection, no supplemental reports have been submitted.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a\nrelated series of violations. For violation occurring on or after March 21, 2022 and before\nJanuary 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the\nviolation persists, up to a maximum of $2,391,142 for a related series of violations. For violation\noccurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not\nexceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for\na related series of violations. For violation occurring on or after January 11, 2021 and before\nMay 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item identified in this letter. Failure to do so will result in\nPipeline & Terminal Management Corporation being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 2-2023-009-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nJames A. Urisko\nDirector, Southern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n\n22023009WL_Warning Letter_07282023_(22-238348).pdf\n\nU.S. Department of Transportation Suite 2100\n230 Peachtree Street N.W.\nAtlanta, GA 30303\nPipeline and Hazardous\nMaterials Safety\nAdministration\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 28, 2023\nMark Rauch\nPresident, Pipeline & Terminal Management Corporation\n4635 Southwest Freeway\nSuite 910\nHouston, Texas 77027\nCPF 2-2023-009-WL\nDear Mr. Rauch:\nFrom November 7 to November 8, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), performed an on-site inspection of your McCain Pipeline Company facility and records\nin Lauderdale, Mississippi.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n1. § 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.\n\n\n\nMcCain failed to comply with the regulation because it did not accurately complete and submit\nDOT Form PHMSA F7000-1.1 (Annual Report) for each type of hazardous liquid pipeline\nfacility it operated at the end of the previous year. Specifically, Annual Reports between 2017\nand 2021 did not accurately reflect the correct number of breakout tanks within the system.\nDuring an on-site field inspection, PHMSA inspectors observed one breakout tank within the\noperator's system. The Annual Reports for Calendar Years (CY) 2017, 2019, and 2020 include\nzero breakout tanks. The Annual Report for CY 2018 includes three breakout tanks. The Annual\nReport for CY 2021 includes two breakout tanks.\nFollowing PHMSA’s identification of the discrepancy, McCain acknowledged that it would need\nto submit supplemental Annual Reports for CY 2017 through 2021, updating the number of\nbreakout tanks to “one.” As of March 1, 2023, three months and 21 days after the on-site field\ninspection, no supplemental reports have been submitted.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a\nrelated series of violations. For violation occurring on or after March 21, 2022 and before\nJanuary 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the\nviolation persists, up to a maximum of $2,391,142 for a related series of violations. For violation\noccurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not\nexceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for\na related series of violations. For violation occurring on or after January 11, 2021 and before\nMay 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item identified in this letter. Failure to do so will result in\nPipeline & Terminal Management Corporation being subject to additional enforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 2-2023-009-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nDerick L Turnes\nfor\nJames A. Urisko\nDirector, Southern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":11211}