{"operation":"document","citation":"CPF 320035022","title":"MID - VALLEY PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2003-08-26","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.432(b), 195.440, 195.442(c)(2), 195.571.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320035022.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320035022.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320035022","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320035022","body":"Notice of Probable Violation involving MID - VALLEY PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195,  195.432(b),  195.440,  195.442(c)(2),  195.571. The case was opened on 2003-08-26 and is reported as closed as of 2006-06-06. Proposed civil penalty: $35,000. Assessed civil penalty: $35,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320035022_Final Order_01032006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320035022/320035022_Final%20Order_01032006.pdf\n\nCPF No 3-2003-5022 Mid-Valley Pipeline Company.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320035022/CPF%20No%203-2003-5022%20Mid-Valley%20Pipeline%20Company.pdf\n\n320035022_Final Order_01032006.pdf\n\n@\nU.S. Department\nof Tronsportqlion\nPipellne ond\nHozol'tiou3 llotedols sotefy\nldmlnlsrotlon\n400 Seventh Street, S.W.\nWashington, D.C.20590\nJAN.3 M6\nMr. Paul S. Broker\nVice President\nMid-Valley Pipeline Company\n907 South Detroit Avenue\nTulsa, OK 74120\nRe: CPF No. 3-2003 -5022\nDear Mr. Broker:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in\nthe above-referenced case. It makes findings of violation and assesses a civil penalty of\n$35,000. The penalty payment terms are set forth in the Final Order. This enforcement action\ncloses automatically upon payment. Your receipt of the Final Order constitutes service of that\ndocument under 49 C.F.R. S 190.5.\nSincerely,\nt\nJ--^,\" yl-\n\\i\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline SafetY\nEnclosure\ncc: Mr. Ivan Huntoon\nDirector, Central Region, OPS\nCERTIFIEII MAIL . RETU\n\n\n\nDEPARTMENT OF' TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFF'ICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of\nMid-Valley Pipeline Company,\nRespondent.\n)\n)\n)\n)\n) CPF No. 3-2003-5022\nJ\nFINAL ORDER\nOn May 20-24,2llz,pursuant to 49 U.S.C. S 601 17, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) conducted an on-site pipeline safety\ninspection of Respondent's facilities and records in its Burlington, Kentucky, Ohio, and Michigan\noperational areas. As a result of the inspection, the Director, Central Region, PHMSA, issued to\nRespondent, by letter dated August 26,2003, a Notice of Probable Violation and Proposed Civil\nPenalty (Ittrotice). In accordance with 49 C.F.R. S 190.207, the Notice proposed finding that\nRespondent had commiued violations of 49 C.F.R. Part 195 and proposed assessing a civil\npenalty of $35,000 for the alleged violations.\nRespondent responded to the Notice by letter dated September 12,2003 (Response). Respondent\nacknowledged some of the allegations, offered information to explain the allegations, described\nthe corrective actions it had taken, and requested that the proposed civil penalty be reduced or\neliminated.\nF'INDINGS OF VIOLATION\nItem 3 in the Notice alleged that Respondent violated 49 C.F.R. S 195.440 by failing to establish\na continuing public education program to enable those who could be affected by its pipeline to\nrecognize and report pipeline emergencies. Section 195.440 requires pipeline operators to\naddress their public education programs to the public, government organizations, and fire, police,\nor other appropiate local officials. In its response, Respondent explainedthat it had hand\ndelivered calendars to people along the right-of-way each year. Respondent, however, failed to\ndemonstrate that the material in the calendar was adequate to accomplish the purpose of the\nregulation. Respondent also failed to demonstrate that its program was presented to any\ngovernment organizations or public officials. Accordingly, I find that Respondent violated $\n195.440 by failing to establish a continuing public education program to enable those who could\nbe affected by its pipeline to recognize and report pipeline emergencies.\n\n\n\nItem 4 in the Notice alleged that Respondent violated 49 c.F.R. S 1g5.442(c) by failin gto\nprovide notification of its damage prevention program to persons who engage in excavation\nactivities along its pipeline since 1996. Section 195.442(c)requires pipeline operators to provide\nactual notification of its damage prevention program to all persons who normally engage in\nexcavation activities in the area where its pipeline is located as often as needed to make them\naware of the damage prevention program. In its response, Respondent explained that at the time\nthe one-call program in which it participates provided notification to emeigen\"v r\"rpo\"a\";; ;;;\nthe damage prevention programs of pipeline operators in their areas. Respondent, however,\nfailed to demonstrate that it provided actual notice of its damage prevention progr* to any\nexcavators' Accordingly, I find that Respondent violated S 195.442(c) by failing to providl\nnotification of its damage prevention program to persons who engagein Lxcavation activities\nalongits pipeline after 1996.\nItem 5 in the Notice. alleged that Respondent violated 49 C.F.R. S 195.571 by failing to ensure\nthe cathodic protection for breakout tank #83 met the minimum criteria for tire pipe-to-soil\nreadings in years 2000,2001, and 2002. In its response, Respondent did not contest this\nallegation. Accordingly, I find that Respondent uiolut.d S 195.571 by failing to ensure the\ncathodic protection for breakout tank #g3 met the applicable criteria.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. S 60122, Respondent is subject to a civil penalty not to exceed $25,000 per\nviolation for each day of the violation up to a maximum of$soo,oo0 for any related series of\nviolations.\n49 U'S'C. 5 60122 and 49 C.F.R. 5190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and giavity of the violation,\ndegree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to\npay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on\nRespondent's ability to continue in business, and such other matters as justice may require.\nWith respect to Item 3, the Notice proposed a civil penalty of $ 15,000 for failing to establish a\ncontinuing public education program to enable those who could be affected by iis pipeline to\nrecognize and report pipeline emergencies. Developing and implementing an effective public\neducation program is an important part of operating a pipeline safely. Stakeholders need to know\nhow to recognize pipeline location markers and what kinas of precautions they should take, what\nkinds of properties the commodity being transported has, and how to recognize and respond to a\npipeiine emergency. Pipeline operators are obligated to fully meet the reqirirement for a\ncontinuing public education program and to present the program to all affected stakeholders\nbecause the failure to do so can put the public safety at increased risk. Respondent has presented\n\n\n\nno information that would warrant a reduction in the civil penalty amount proposed in the Notice\nfor this violation. Accordingly, I assess Respondent a civii p\"nuity of $tS,OOO for violating 49\nc.F.R. g 19s.440.\nWith respect to Item 4,theNotice proposed a civil penalty of $15,000 for failing to provide\nnotification of its damage prevention program to persons who engage in excavation activities\nalong its pipeline after 1996. Preventing damagelo pipelines .u*J by excavation activity is an\nimportant part of operating a pipeline safely. Excavators need to be made aware of the existence\nof pipelines in their area. Pipeline operators are obligated to provide notice of their damage\nprevention programs to excavators including information about pipeline location marking]\nutilizing the one-call system prior to excavation activity, and what to do if the pipeline is\ndamaged during excavation. In this case, Respondent iast sent out a mailer to excavators in\n1996' We acknowledge that Respondent has initiated actions to address this violation including\nusing its one-call program to address notification of excavators beginnin gin2003. respondent,-\nhowever, has provided no information that would warrant a reduction in the civil penalty\nproposed in the Notice for this violation. Accordingly, I assess Respondent a civil penaity of\n$15,000 for violating 49 C.F.R. g t95.aa2@).\nWith respect to Item 5, the Notice proposed a civil penalty of $5,000 for failing to ensure the\ncathodic protection for breakout tank #83 met the applicable criteria. Ensuring that pipeline\nsystems have adequate cathodic protection is an important part of preventing release incidents\ncaused by corrosion. If an inadequacy in cathodic protection is identified during an annual\nsurvey, pipeline operators are obligated to take prompt corrective action. We acknowledge that\nRespondent corrected the condition in June 2002. Nevertheless, the cathodic protection for\nbreakout tank #83 was below the applicable criteria for three years. Respondant has presented no\ninformation that would warant a reduction in the civil penalty proposed in the Notice for this\nviolation. Accordingly, I assess Respondent a civil p..tulty of $5,000 for violating a9 C.F.R. $\n195.571 .\nAccordingly, having reviewed the record and considered the assessment criteria. I assess\nRespondent a total civil penalty of $35,000.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. S 89.21(b)(3)) require this payment be made by wire transfer, through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-120), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 25082,Oklahoma City, OK 73125;(405) g54:-471g.\nFailure to pay the $35,000 civil penalty will result in accrual of interest at the current annual rate\nin accorciance with 31 U.S.C. S 3717, 31 C.F.R. S 901.9 and 49 C.F.R. S 89.23. pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\n\n\n\nmay result in referral of the matter to the Attomey General for appropriate action in a United\nStates District Court.\nWARNING ITEMS\nThe Notice did not propose a civil penalty or compliance order for Items land,2 in the Notice.\nTherefore, these are considered warning items. The warnings were for Respondent,s failure to\naddress the requirements of Subpart H of Part 195 in its operations and maintenance procedures\nin accordance with g 195 .402, and failure to demonstr ate that the monthly inspection of breakout\ntank #69 has been performed in accordance with S 1g5.432(b). Respondent piesented\ninformation its response showing that it has initiated actions to address these items. Respondent\nis warned that if these items are not fully addressed, enforcement action will be taken if a\nsubsequent inspection reveals a violation.\nUnder 49 C.F.R. S 190.215, Respondent has a right to submit a petition for reconsideration of\nthis Final Order. Should Respondent elect to do so, the petition must be received within 20 days\nof Respondent's receipt of this Final Order and must contain a brief statement of the issue(s).\nThe filing of a petition automatically stays the payment of any civil penalty assessed. However if\nRespondent submits payment for the civil penalty, the Final Order becomes the final\nadministrative decision and the right to petition for reconsideration is waived. The terms and\nconditions of this Final Order are effective on receipt.\nJAI'I - 3 fl06\nAdministrator$^Date Issued","truncated":false,"body_characters":11884}