# TESORO HIGH PLAINS PIPELINE COMPANY LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320055006
- **title:** TESORO HIGH PLAINS PIPELINE COMPANY LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2005-01-20
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.402(a), 195.440, 195.442(a), 195.442(b), 195.589(c).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320055006
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320055006
**body:**

Notice of Probable Violation involving TESORO HIGH PLAINS PIPELINE COMPANY LLC. PHMSA's enforcement data identifies the cited regulations as 195,  195.402(a),  195.440,  195.442(a),  195.442(b),  195.589(c). The case was opened on 2005-01-20 and is reported as closed as of 2006-03-30. Proposed civil penalty: $15,000. Assessed civil penalty: $15,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320055006_Final Order_01112006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055006/320055006_Final%20Order_01112006.pdf

320055006_final order_01112006_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055006/320055006_final%20order_01112006_text.pdf

CPF No 3-2005-5006 Tesoro High Plains Pipeline Company.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055006/CPF%20No%203-2005-5006%20Tesoro%20High%20Plains%20Pipeline%20Company.pdf

320055006_final order_01112006_text.pdf

U 5 Department
of Transportation
Pipeline and
Hazardous Materials Safety
Administration
400 Seventh Street, S W
Weehtngton, O C 20590
JAN 1 l 2X6
Mr John W Moore
Vice President, Pipehnes and Terminals
Tesoro High Plains Pipeline Company
1225 17th Street, Suite 1800
Denver, CO 80202
Re CPF No 3-2005-5006
Dear Mr Moore
Enclosed is the Final Order issued by the Associate Administrator for Pipehne Safety m
the above-referenced case It makes finchngs of violation and assesses a civil penalty of
$15, 000 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 tr 190 5
Sincerely
James Reynolds
Pipeline Compltance Regtsny
Office of Pipehne Safety
Enclosure
cc Mr 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
Tesoro High Plains
Pipeline Company,
Respondent.
CPF No. 3-2005-5006
FINAL ORDER
On July 19-23 and August 23-27, 2004, pursuant to 49 U S C 5 60117, a representative of the
Pipehne and Hazardous Materials Safety Admimstration (PHMSA) conducted an on-site pipehne
safety inspection of Respondent's facilities and records in North Dakota As a result of the
inspection, the Director, Central Region, PHMSA, issued to Respondent, by letter dated January
20, 2005, a Notice of Probable Violation and Proposed Civd Penalty (Notice) In accordance
with 49 C F R 5 190 207, the Notice proposed finding that Respondent had committed violations
of 49 C F R Part 195 and proposed assessing a civil penalty of $15, 000 for the alleged
violations
Respondent responded to the Notice by letter dated February 17, 2005 (Response) Respondent
contested the allegations, offered information to explain the allegations, provided information
concerning the corrective actions it has taken, and requested that the proposed civd penalty be
reduced or ehminated
FINDINGS OF VIOLATION
Item 2 in the Notice alleged that Respondent violated 49 C F R ts 195 440 by failing to
demonstrate that a continuing pubhc education program to enable those who could be affected by
its pipehne to recogiuze and report pipeline emergencies was ongoing dunng calendar years 2002
and 2003 Section 195 440 reqmres pipeline operators to address their pubhc education
programs to the pubhc, government organizations, and fire, police, or other appropnate local
officials hi its response, Respondent explained that it was the "relatively" new owner of the
system, which it acquired in late 2001, but acknowledged that it failed to conduct any mailings to
the pubhc untd 2004 Respondent also failed to demonstrate that its program was presented to
any government organizations or pubhc officials dunng the relevant time period Accordingly, I
find that Respondent violated lt 195 440 by failing to demonstrate that a continuing public



education program to enable those who could be affected by its pipehne to recognize and report
pipehne emergencies was ongoing dunng the relevant time period
Item 3(a) m the Notice alleged that Respondent violated 49 C F R 5 195 442(c)(1) by faihng to
demonstrate that dunng calendar years 2002 and 2003 it maintained an up-to-date hst identifying
all persons who normally engage in excavation activities along its pipeline for the purpose of
providing regular notification to such persons of its damage prevention program In its response,
Respondent explained that it had initiated actions to identify excavators in connection with the
development of its overall public education program in late 2003, but acknowledged that it was
not in place until 2004 Accordingly, I find that Respondent violated 5 195 442(c)(1) by failing
to fiuhng to demonstrate that dunng the relevant time penod it miuntained an up-to-date hst
identifying all persons who normally engage in excavation activities along its pipehne
Item 3(b) in the Notice alleged that Respondent violated 49 C F R 5 195 442(c)(2) by fatling to
demonstrate that it provided notification of its damage prevention program to the pubhc in the
vicinity of its pipeline or to persons who engage in excavation activities along its pipehne dunng
calendar years 2002 and 2003 Section 195 442(c)(2) requires such nonce to be provided to such
persons as often as needed to make them aware of the damage prevention program In its
response, Respondent acknowledged that it did not implement a damage prevention notification
program until 2004 Accordingly, I find that Respondent violated 5 195 442(c)(2) by failing to
demonstrate that dunng the relevant time penod it provided notification of its damage prevention
program to the public in the vicmity of its pipehne or to persons who engage in excavation
activities along its pipehne
These findmgs of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent
ASSESSMENT OF PENALTY
Under 49 U S C 5 60122, Respondent is sub)ect to a civil penalty not to exceed $100, 000 per
violation for each day of the violation up to a maximum of $1, 000, 000 for any related senes of
viol atloils
49 U S C 5 60122 and 49 C F R 5 190 225 require that, in determining the amount of the civil
penalty, I consider the following cntena nature, circumstances, and gravity of the violation,
degree of Respondent's culpability, history of Respondent's pnor offenses, Respondent's abdity to
pay the penalty, good faith by Respondent m attempting to achieve compliance, the effect on
Respondent's abihty to continue in business, and such other matters as lusttce may require
With respect to Item 2, the Notice proposed a civil penalty of $5, 000 for Respondent's failure to
demonstrate that a continuing pubhc education program to enable those who could be affected by
its pipeline to recognize and report pipeline emergencies was ongoing during the relevant time
period Developing and implementing an effective pubhc education program is an important part
of operating a pipehne safely Stakeholders need to know how to recognize pipehne location



markers and what kinds of precautions they should take, what kinds of properties the commodity
being transported has, and how to recognize and respond to a pipeline emergency In its response
to this item, Respondent contends that the change in ownership to some extent)ustified the delay
In our view, however, it is actually more important after a change in ownership that pubhc
education contacts are made in a tunely manner In the event of a pipeline emergency, the public
and government officials must be able to reach the correct current operator of the system
immediately and not waste time attempting to contact the former operator whde harm to the
pubhc, property, or the environment may be occumng Respondent has presented no information
that would warrant a reduction in the civil penalty amount proposed in the Notice for this
violation Accordingly, I assess Respondent a civil penalty of $5, 000 for violating 49 C F R
$ 195 440
With respect to Item 3(a), the Notice proposed a civil penalty of $5, 000 foi Respondent's failure
to demonstrate that during the relevant time penod it maintained an up-to-date hst identifying all
persons who normally engage in excavation activities along its pipeline Preventing damage to
pipehnes caused by excavation activity is an important part of operating a pipeline safely
Matntatmng the list of excavators in a current and up-to-date manner is an important part of
determining whether a pipehne operator is effectively communicating with excavators In
response to this item, Respondent again contends that the change in ownership to some extent
)ustified the delay As with pubhc education programs, however, it is actually more important
after a change in ownership that excavator contacts are made in a timely manner Respondent
has presented no information that would warrant a reduction in the civil penalty amount proposed
in the Notice for this violation Accordingly, I assess Respondent a civil penalty of $5, 000 for
violating 49 C F R $ 195 442(c)(1)
With respect to Item 3(b), the Notice proposed a civil penalty of $5, 000 for Respondent's failure
to demonstrate that during the relevant time penod it provided notification of its damage
prevention program to the pubhc in the vicinity of its pipehne or to persons who engage in
excavation activities along its pipehne Excavators obviously need to be made aware of the
existence of pipehnes in their area and how to utilize one-call damage prevention programs
Moreover, excavators need to know who the current operator is and how to contact them if the
pipehne is damaged at any time during excavation activities Respondent has presented no
information that would warrant a reduction in the civil penalty amount proposea in the Nonce for
this violation Accordingly, I assess Respondent a civil penalty of $5, 000 for violating 49 C F R
g 195 442(c)(2)
Accordingly, having reviewed the record and considered the assessment cntena, I assess
Respondent a total civil penalty of $15, 000
Payment of the civil penalty must be made within 20 days of service Federal regulations
(49 C F R 5 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 Detiuled
instructions are contained in the enclosure Questions concerning 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 $15, 000 civil penalty will result in accrual of interest at the current annual rate
inaccordance wtth31 US C 53717, 31 C FR 5901 9 and 49 C FR 58923 Pursuant to
those same authonties, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made witlun 110 days of service Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action m a Uiuted
States Distnct Court
WARNING ITEMS
The Notice did not propose a civil penalty or comphance order for Notice Items I or 4
Therefore, these are considered to be warnmg items The wanungs were for Respondent's failure
to demonstrate that an annual review of its procedures for operations, maintenance and
emergencies was conducted during calendar year 2003 in accordance with ) 195 402(a), and
fadure to maintain records of atmospheric corrosion evaluations in accordance with $ 195 589(c)
Respondent presented information its response showing that it has initiated actions to address
these items Respondent is warned that if these items are not fully addressed, enforcement action
will be taken if a subsequent inspection reveals a violation
Under 49 C F R 5 190 215, 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 wrttun 20 days
of Respondent's receipt of this Final Order and must contain a brief statement of the issue(s)
The filing of a petition automatically stays the payment of any civd 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 waived The terms and
conditions of this Final Order are effective on receipt
JAN !! 48
Date Issued
S y erard
As iate Administrator
for ipeline Safety
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