# EXPLORER PIPELINE CO — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320045010
- **title:** EXPLORER PIPELINE CO — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2004-04-05
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.401(b), 195.404(b)(1), 195.406(b).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320045010
**body:**

Notice of Probable Violation involving EXPLORER PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195,  195.401(b),  195.404(b)(1),  195.406(b). The case was opened on 2004-04-05 and is reported as closed as of 2007-02-02. Proposed civil penalty: $45,750. Assessed civil penalty: $42,750. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320045010_Final Order_01092007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320045010/320045010_Final%20Order_01092007.pdf

320045010_final order_01092007_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320045010/320045010_final%20order_01092007_text.pdf

CPF_NO_3-2004-5010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320045010/CPF_NO_3-2004-5010.pdf

320045010_final order_01092007_text.pdf

O
U 5 Department
of Transportation
Pipeline and Hazardous
Materials Safety Admmistration
400 Seventh Street, S W
Washington, D C 20590
Mr Ron Sands
Vice President
Explorer Pipelme Company
6846 S Canton Avenue, Suite 300
Tulsa, OK 74136
Re CPF No 3-2004-5010
Dear Mr Sands
Enclosed is the Final Order issued by the Acting Associate Administrator for Pipehne
Safety in the above-referenced case It withdraws one of the allegations of violation, makes
findings of violation, and assesses a civil penalty of $42, 750 The penalty payment terms are set
forth in the Final Order This enforcement action closes automatically upon payment Your
receipt of the Final Order constitutes service of that document under 49 C F R tJ 190 5
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipehne Safety
Enclosure
cc Ivan Huntoon
Director, Central Region, OPS
CERTIFIED MAIL - RETURN RECEIPT RE UESTED



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D, C. 20590
In the Matter of )
Explorer Pipeline Company, )
)
)
Respondent. )
CPF No. 3-2004-5010
FINAL ORDER
On June 25-29 and July 9-13, 2001, pursuant to 49 U S C IJ 60117, a representative of the
Pipehne and Hazardous Matenals Safety Administration, Office of Pipehne Safety (OPS)
conducted an on-site pipehne safety inspection of Respondent's facilities and records in the
Glenpool, Wood River, and Hammond operating areas located in Missouri, Ilhnois, and Indiana
As a result of the mspection, the Director, Central Region, OPS, issued to Respondent, by letter
dated Apnl 5, 2004, a Notice of Probable Violation and Proposed Civil Penalty (Notice) In
accordance with 49 C F R IJ 190 207, the Notice proposed findmg that Respondent had
committed violations of 49 C F R Part 195, and proposed assessing a civil penalty of $45, 750 for
the alleged violations
Respondent responded to the Notice by letter dated May 7, 2004 (Response) Respondent did not
contest two of the allegations of violation (Notice Items I and 3) but provided information
concerning the corrective actions it has taken Respondent dtd contest one allegation (Item 2)
and provided information m support of its position Respondent did not request a hearing, and
therefore has waived its right to one
FINDINGS OF VIOLATION
In its response, Respondent did not contest two of the alleged violations in the Notice
Accordingly, I find that Respondent violated the following sections of 49 C F R Part 195, as
more fully described in the Notice
49 C F R fJ 195 401(b) (Item I) — fathng to correct low pipe-to-soil cathodic protection
readings at the specified locations withm a reasonable time,
49 C F R fJ 195 406(b) (Item 3) — fading to ensure that actual operating pressure did not
exceed 110 percent of the estabhshed maximum operating pressure at the East St Louis
Station on tv o specified dates



These findings of violation will be considered pnor offenses in any subsequent enforcement
action taken against Respondent
WITHDRAWAL OF ALLEGATION
Item 2 in the Notice alleged that ResPondent had violated 49 C F R IJ 195 404(b)(1) by faihng to
maintain dtuly operating records of the discharge pressure at the Decatur Pump Station for the
months of January, November, and December 2000 In its response, Respondent submitted
information demonstrating that it did maintain these records Based on this information
demonsuattng comphance with the regulation, I am withdrawing this allegation of violation
ASSESSMENT OF PENALTY
Under 49 U S C IJ 60122 (2001), Respondent is subJect to a civil penalty not to exceed $25, 000
per violation for each day of the violation up to a maximum of $500, 000 for any related series of
violations i
49 U S C $ 60122 and 49 C F R IJ 190 225 require that, in determining the amount of the civil
penalty, I consider the following criteria nature, circumstances, and gravity of the violation,
degree of Respondent's culpabtltty, history of Respondent's pnor offenses, Respondent's ability to
pay the penalty, good fmth by Respondent in attempting to achieve comphance, the effect on
Respondent's ability to continue in business, and such other matters as Justice may require
With respect to Item I, the Notice proposed that Respondent be assessed a civil penalty of $2, 750
for violating IJ 195 401(b) by faihng to correct low pipe-to-soil cathodic protection readings at
the specified locations withtn a reasonable time The pipehne safety regulations require pipehne
operators to conduct tests to determine the adequacy of cathodic protection on an annual basis
and to correct any condition it discovers that could adversely affect the safe operauon of its
pipehne within a reasonable time meanmg, in this case, before the next annual inspection
In its response, Respondent brtefly descnbed the corrective measures it had taken after the OPS
inspection to address the cathodtc protection issues in the specified areas Respondent, however,
presented no information that would warrant a reductton in the penalty amount proposed in the
Notice for this item Accordingly, having reviewed the record and considered the assessment
cntena, I assess Respondent a civil penalty of $2, 750 for this violation
With respect to Item 3, the Notice proposed that Respondent be assessed a civil penalty of
$40, 000 for violatmg II 195 406(b) by faihng to ensure that actual operating pressure did not
exceed 110 percent of the established maximum operatmg pressure (MOP) at the East St Louis
The Pipehne Safety Improvement Act of 2002 (Pub L bio 107-355, 116 Stat 2992) increased the
maximum civil penalty hability to $100, 000 per violation for each day of the violation and $1, 000, 000 for any
related senes of violations However because the violations were discovered poor to December 17, 2002, the
effective date of the Act, Respondent is not sublect to the higher maximums m this case



Station on two specified dates Preventing pressure surges from exceeding 110 percent of MOP
is cntical to the safe operation of a pipehne because such surges can adversely impact the
integrity of the pipe In this case, the station facility is located near the Mississippi River which
is a commercially navigable waterway and is considered to be a high consequence area
In its response, Respondent indicated that it had taken corrective action including installation of a
pressure rehef system after receiving the Notice (rom OPS We acknowledge that Respondent
has now taken measures that will better control the operating pressure and prevent excessive
surges Respondent, however, presented no information that would warrant a reduction in the
penalty amount proposed in the Notice for this item Accordingly, having reviewed the record
and considered the assessment criteria, I assess Respondent a civil penalty of $40, 000 for this
violation
Accordingly, having reviewed the record and considered the assessment cnterta, I assess
Respondent a total civil penalty of $42, 750
Payment of the civil penalty must be made within 20 days of service Federal regulations
(49 C F R $ 89 21(b)(3)) require this payment be made by wire transfer, through the Federal
Reserve Communications System (Fedwire), to the account of the U S Treasury Detailed
instructions are contained in the enclosure Questions concermng wire transfers should be
directed to Financial Operations Division (AMZ-120), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P 0 Box 25082, Oklahoma City, OK 73125, (405) 954-4719
Failure to pay the $42, 750 civil penalty will result m accrual of interest at the current annual rate
inaccordance with 31 U S C I'1 3717, 31 C FR I'1 901 9 and49 CF R g 8923 Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service Furthermore, fadure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a United
States District Court
WARNING ITEM
The Notice did not propose a civil penalty or corrective action for Item I A in the Notice — fadure
to address items discovered during the annual inspections conducted at the Hammond tank farm
in 1999 and 2000 Therefore, this is considered to be a warmng item Respondent is warned that
if it does not take appropriate action to correct this item, enforcement action will be taken if a
subsequent inspection reveals a violation



Under 49 C F R $ 190 215, Respondent has a right to submit a petition for reconsideration of
this Final Order Should Respondent elect to do so, the petition must be received within 20 days
of Respondent's receipt of this Final Order and must contain a bnef statement of the issue(s)
The fihng of a petition automatically stays the payment of any civil penalty assessed However if
Respondent submits payment for the civil penalty, the Final Order becomes the final
administrative decision and the nght to petition for reconsideration is wiuved The terms and
conditions of this Fmal Order are effective on receipt
he dore L Wtllke cti Associate Administrator
fo pehne Safety
Date Issued
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