PIPELINES OF PUERTO RICO INCD, THE — Warning Letter

22026008WL_Warning Letter_05012026_(23-264878)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 230 Peachtree Street N.W. Suite 2100 Atlanta, GA 30303 404.832.1147 WARNING LETTER VIA ELECTRONIC MAIL: tampapc@outlook.com May 1, 2026 Robert Rose President The Pipelines of Puerto Rico, Inc. P.O. Box 15770 Sarasota, FL 34277 CPF 2-2026-008-WL Dear Mr. Rose: From December 4, 2023, through July 24, 2025, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected The Pipelines of Puerto Rico, Inc.’s (PLPR) facilities, records, and procedures in Cataño and San Juan, Puerto Rico. As a result of the inspection, it is alleged that PLPR has committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violations are: 1. § 195.403 Emergency response training. (a) . . . . each operator shall: (b) At the intervals not exceeding 15 months, but at least once each calendar year,#

22026008WL_Warning Letter_05012026_(23-264878)_text.pdf, page 2(1) Review with personnel their performance in meeting the objectives of the emergency response training program set forth in paragraph (a) of this section…. PLPR failed to comply with 49 CFR § 195.403(b)(1) because it did not review with personnel their performance in meeting the objectives of the emergency response training program. Section 4.1 of the PLPR Operations and Maintenance (O&M) Manual (December 2022 revision), titled “Training & Annual Review,” required the General Manager to hold a safety meeting at intervals not exceeding one calendar year to review with personnel their performance to ensure employees were able to safely perform assigned duties and follow emergency response procedures. The procedure required the results of this review to be documented on the Fire Drill and Safety Meeting Report. At the time of PHMSA's inspection, PLPR failed to provide Fire Drill and Safety Meeting Reports, or any other records, to demonstrate that the required reviews of emergency response training performance were conducted each year from 2018 through 2023. 2. § 195.412 Inspection of rights-of-way and crossings under navigable waters. (a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or adjacent to each pipeline right-of- way. Methods of inspection include walking, driving, flying or other appropriate means of traversing the right-of-way. PLPR failed to comply with § 195.412(a) because it did not adequately inspect the surface conditions on or adjacent to each pipeline right-of-way. Specifically, PLPR failed to maintain its right-of-way (ROW) in a condition that allowed for adequate inspection using its chosen methods of walking or driving. During the field inspection, PHMSA inspectors observed two segments of the ROW overgrown with trees and vegetation, such that the surface of the ROW was not visible or accessible. Consequently, an adequate inspection could not be performed on the following segments: • Cataño - approximately 580 feet of ROW immediately outside of PLPR’s Cataño facility, perpendicular to Highway 28. • Carolina - approximately 190 feet of ROW parallel to Highway 26, in the immediate vicinity of the Luis Munoz International Airport. 3. § 195.404 Maps and records. (a) . . . . (c) Each operator shall maintain the following records for the periods specified: (1) . . . . (3) A record of each inspection and test required by this subpart shall be maintained for at least 2 years or until the next inspection or test is performed, whichever is longer. 2#

22026008WL_Warning Letter_05012026_(23-264878)_text.pdf, page 3§ 195.428 Overpressure safety devices and overfill protection systems. (a) Except as provided in paragraph (b) of this section, each operator shall, at intervals not exceeding 15 months, but at least once each calendar year, or in the case of pipelines used to carry highly volatile liquids, at intervals not to exceed 71⁄2 months, but at least twice each calendar year, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item of pressure control equipment to determine that it is functioning properly, is in good mechanical condition, and is adequate from the standpoint of capacity and reliability of operation for the service in which it is used. PLPR failed to comply with 49 CFR § 195.404(c)(3) because it did not maintain a record of each inspection and test required by Subpart F for at least 2 years or until the next inspection or test is performed, whichever is longer. Specifically, PLPR failed to maintain records from 2018 through 2023 demonstrating the required annual inspection and testing of its overpressure safety devices under § 195.428(a) to ensure they were functioning properly and in good mechanical condition. During the inspection, PHMSA requested inspection and testing records for the facility's overpressure safety devices. PLPR personnel stated that these inspections are performed annually by a third-party contractor. However, at the time of the inspection, PLPR failed to provide any records of overpressure protection device inspections for the years 2018, 2019, 2020, 2021, 2022, and 2023. Because PLPR was unable to document that any subsequent inspections were conducted during this period to supersede the older documents, the regulatory obligation to retain the 2018 through 2023 records did not expire. 4. § 195.583 What must I do to monitor atmospheric corrosion control? (a) You must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion, as follows: If the pipeline is located: Then the frequency of inspection is: Onshore Offshore At least once every 3 calendar years, but with intervals not exceeding 39 months. At least once each calendar year, but with intervals not exceeding 15 months. PLPR failed to comply with § 195.583(a) because it did not inspect each pipeline, or portion of pipeline that is exposed to the atmosphere, for evidence of atmospheric corrosion at least once every 3 calendar years, but with intervals not exceeding 39 months. At the time of PHMSA’s inspection, PLPR failed to demonstrate that an adequate atmospheric corrosion inspection was conducted on the onshore 6-inch pipe crossing the Puerto Nuevo River. This approximately 1,000-foot segment of pipe runs under the Constitution Bridge of the John F. Kennedy Expressway, resting on roller supports that allow it to move independently of the bridge structure as it spans the waterway. 3#

22026008WL_Warning Letter_05012026_(23-264878)_text.pdf, page 4During the inspection, PLPR produced an atmospheric corrosion inspection record dated August 18, 2021, which noted tape wrap coating imperfections for the Constitution Bridge segment. Because the record lacked detail regarding how the suspended span was assessed, PHMSA inspectors questioned PLPR personnel about their inspection methodology. In response, PLPR personnel stated that their visual atmospheric corrosion inspections are limited to pipeline segments accessible by walking and driving. Consequently, a large portion of the 1,000-foot span over the waterway cannot be reliably evaluated from the accessible areas near the shore. When PHMSA inspectors raised this issue, PLPR personnel stated they did not know how they would evaluate the inaccessible portions of the span under the bridge. PLPR personnel confirmed this same methodology was utilized during the 2024 inspection. Consequently, PLPR failed to adequately inspect this exposed portion of the pipeline during the required 2021 and 2024 inspection cycles. Furthermore, during the field inspection, PHMSA inspectors observed disbonding of the tape wrap coating and visible rust on this uninspected segment of the Constitution Bridge. Because the inspectors were restricted to the same shore-based vantage point utilized by PLPR, they could not get close enough to evaluate the severity of the rust, directly demonstrating the inadequacy of the operator's limited inspection methodology. Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a related series of violations. For violation occurring on or after December 28, 2023 and before December 30, 2024, the maximum penalty may not exceed $266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring on or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed $257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related series of violations. For violation occurring on or after March 21, 2022 and before January 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related series of violations. For violation occurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related series of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. We have reviewed the circumstances and supporting documents involved in this case, and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to correct the items identified in this letter. Failure to do so will result in the Pipelines of Puerto Rico, Inc. being subject to additional enforcement action. 4#

22026008WL_Warning Letter_05012026_(23-264878)_text.pdf, page 5No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 2-2026-008. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b). Sincerely, James A. Urisko Director, Southern Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Adel Lozada, General Manager, The Pipelines of Puerto Rico, pipelinespr@yahoo.com Greg Lipscomb, National Pipeline Manager, The Pipelines of Puerto Rico, greg.lipscomb@panamericanpipelines.com 5#