{"operation":"document","citation":"CPF 320025010","title":"CHS MCPHERSON REFINERY INC. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-05-23","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320025010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320025010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320025010","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320025010","body":"Notice of Probable Violation involving CHS MCPHERSON REFINERY INC.. PHMSA's enforcement data identifies the cited regulation as 195.452(b)(2). The case was opened on 2002-05-23 and is reported as closed as of 2002-12-04. Proposed civil penalty: $10,000. Assessed civil penalty: $5,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320025010_Final Order_11132002.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320025010/320025010_Final%20Order_11132002.pdf\n\n320025010_Final Order_11132002.pdf\n\nt:\nI\ni @\nU.S.Deportrnent\nof lionsportotion\nReseorcfiond\nSpeciol Progrums Adn$nisffiion\n400 Sevenlh Street, S.W.\nWashington, D.C. 20590\nNoy I 3 20s2\nMr. Myron B. Hoover\nVice-President of Transportation\nNational Cooperative Refinery Association\n1391 Iron Horse Road\nP.O. Box 1404\nMcPherson, KS 67460\nRe: CPF No. 3-2002-5010\nDear Mr. Hoover:\nEnclosed is the Final Order issued by the Associate Adminisfiator.for,Pipeline Safety in the\nabove-referenced case. It makes a finding of violation and assesses a civil:penalty of $5,000. The\npenalty payment terms are set forth in the Final Order. This enforcement action closes automatically\nupon payment. Your receipt of the Final Order constitutes service of that document under 49:C.F;R .\n$1'90.5. ': I\nSincerely,\nil,jt\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\nCERTIFIED MAIL - RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON. DC 20594\nIn the Matter of\nNational Cooperative\nRefinery Association,\nRespondent.\nCPF No. 3-2002-5014\nFTIIAL ORDER\nOn January 23-24,2002,pursuant to 49 U.S.C. $ 60117, representatives of the.Central and Eastern\nRegions, Office ofPipeline Safety (OPS), conducted an integrity managernentsegment identifioation\nand completeness check of National Cooperative Refinery Associationis-,(Respondentls):integrity\nmanagement prograrri,in McPherson, Kansas. As a result of the inspeclion;:the:Direc-tor,.C-entral\nRegion, OPS, issued to:Respondent, by letter dated May 23,2002, aNoticerof,P.robable Violation,\nProposed Civil Penalty;:and Proposed Compliance Order (Notice). In aceordanee with 49 CIF.R.\n$ 190.207, the Notice.proposed finding that Respondent had violated,49 GF;R. $ 195452 and\nproposed assessing a civil penalty of $10,000 for the alleged violation. The Notice also proposed\nthat Respondent take certain measures to correct the alleged violation.\nRespondent responded to the Notice by letter dated June 19, 2002 (Response). Respondent did not\ncontest the allegation of violation but offered an explanation and provided information in mitigation\nof the proposed civil penalty. Respondent did not request a hearing; consequently, Respondent\nwaived its right to one.\nFINDING OF VIOLATION\nUncontested Violation\nRespondent did not contest the alleged violation in the Notice. Accordingly, I. find that Respondent\nviolated the following section of 49 C.F.R. Part 195, as more fully described in the Notice:\n49 C.F.R. $ 195.452(bXD - failure to identiff all pipeline segments that could affect a high\nconsequence area by December 31, 2001.\nThis frnding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n\n\n\n'f\n',j,\n. . i \" ' f\n. t , ,r!\ni . r i\n2\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. g 60122, Respondent is subject to a civil penalty not to exceed $25,000 per\nviolation for each day of the violation up to a maximum of $500,000 for any related series of\nviolations.\n49 U.S.C. S 60122 and 49 C.F.R. $ 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: naflire, circumstances, and gravity ofthe violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other maffers as justice may require.\nThe Notice proposed a civil penalty of $10,000 for violation of 49 C.F.R. 195.452(bxi). The\nRespondent explained that it had initially misinterpreted the application of the regulation to its\nsystem. Respondent also demonstrated that it had taken timely corrective action and completed the\nprocess of identiffing pipeline segments which could affect high consequence areas. Accordingly,\nhaving reviewed the record and considered the assessment criteria, areduction will be made in the\namount of the proposedpenalty. I assess Respondent a civil penalryof.$5,000for.failingto comply\nwith the requirements.of 49 C.F.R, $ 195.452(bXD. ,. :\n:\nl\n.,\nPayment of the civil penalty must be made within 20 days of serviqg. Payment, oan.be made by\nsending a certified check.ot money order (containing the CPF Number,fol this case) payab,le to llU. S.\nDepartmentofTransportation'itqtheFederalAviationAdministration;MikeJvl'onrone Aeronautical\nCenter, Financial Operations Division (Al\\[Z-320), P.O.Box25770; Oklahoma City, OK,73125.\nFederal regulations (49 C.F.R. $ S9.21(bX3)) also permit this payment to be made by wire transfer,\nthroughthe Federal Reserve Communications System(Fedwire),tothe accountofthe U.S. Treasury.\nDetailed instructions are contained in the enclosure. After completing the wire transfer, send a copy\nof the electronic funds fansfer receipt to the Office of the Chief Counsel (DCC-l), Research and\nSpecial Programs Administation, Room 8407, U.S. Department of Transportation, 400 Seventh\nStreet, SW, Washington, DC 20590-0001.\nQuestions concerning wire transfers should be directed to: Financial Operations Division (AMZ-\n120), Federal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 25770,\nOklahoma City, OK 73125; (405) 954-4719.\nFailure to pay the $5,000 civil penalty will result in accrual of interest at the current annual rate in\naccordancewith3l U.S.C. 93717,31 C.F.R. $901.9 and49 C.F.R. $ 89.23. Pursuanttothosesame\nauthorities, alate penalty charge of six percent (6Yo) perannum will be charged if payment is not\nmade within I l0 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attorney General for appropriate action in an United States District Court.\n\n\n\n3\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order. Respondent has demonstrated corrective action addressing\nthe item in the proposed compliance order. Respondent has completed the process of identiffing its\npipeline segments which could affect high consequence areas and performed a risk analysis.\nBecause Respondent's actions satisfied the proposed compliance terms, no need exists to issue a\ncompliance order.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to petition for reconsideration of this Final\nOrder. However, upon payment of the civil penalty, the case closes automatically and Respondent\nwaives the right to petition for reconsideration. The filing of a petition automatically stays the\npayment of any civil penalty assessed. The petition must be received within 20 days of Respondent's\nreceipt of this Final Order and must contain a brief statement of the issue(s). The terms and\nconditions of this Final Order are effective on receipt.\n4r\nAsso ciate Administrator\nfor Pipeline Safety\n' ' : : l - _\n'';,1,,\n; . i . , . '\n\",t;,\nilov I 3 2002\nDate Issued","truncated":false,"body_characters":7392}