{"operation":"document","citation":"CPF 320055024","title":"WOLVERINE PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2005-06-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.505, 195.505(b), 195.507(a)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320055024.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320055024.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320055024","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320055024","body":"Notice of Probable Violation involving WOLVERINE PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.505,  195.505(b),  195.507(a)(3). The case was opened on 2005-06-02 and is reported as closed as of 2006-11-03. Proposed civil penalty: $21,500. Assessed civil penalty: $11,750. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320055024_Final Order_10122006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055024/320055024_Final%20Order_10122006.pdf\n\nCPF_NO_3-2005-5024.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055024/CPF_NO_3-2005-5024.pdf\n\n320055024_Final Order_10122006.pdf\n\n400 Seventh Street, S.W.\nU.S. Department Washington, D.C. 20590\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration OCT 1 2 3 3 6\nMr. Larry D. Wilson\nVice President and Manager of Operations\nWolverine Pipe Line Company\n8105 Valleywood Lane\nPortage, MI 49024-525 1\nRe: CPF No. 3-2005-5024\nDear Mr. Wilson,\nEnclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety\nin the above-referenced case. It makes findings of violation, assesses a civil penalty of $1 1,750,\nand acknowledges your completion of the proposed compliance order items to comply with the\npipeline safety regulations. When the civil penalty is paid, this enforcement will be closed. The\npenalty payment terms are set forth in the Final Order. Your receipt of the Final Order\nconstitutes service of that document under 49 C.F.R. 5 190.5.\nSincerely,\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Ivan A. Huntoon\nDirector, Central Region, OPS (PHP-300)\nCERTIFIED MAIL- RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n1\nIn the Matter of 1\n1\nWolverine Pipe Line Company, ) CPF NO. 3-2005-5024\n1\nRespondent )\n)\nFINAL ORDER\nOn August 31- September 1,2004, pursuant to 49 U.S.C. 5 601 17, representatives of the Pipeline\nand Hazardous Materials Safety Administration, Office of Pipeline Safety (OPS) conducted an\non-site pipeline safety inspection of Respondent's operator qualification (OQ) records and\nprocedures at its headquarters in Portage, Michigan. As a result of the inspection, the Director,\nCentral Region, OPS, issued to Respondent, by letter dated June 2, 2005, a Notice of Probable\nViolation, Proposed Civil Penalty, and Proposed Compliance Order (Notice). In accordance\nwith 49 C.F.R. 5 190.207, the Notice proposed finding that Respondent had committed violations\nof 49 C.F.R. Part 195, and proposed assessing a civil penalty of $21,500 for two of the alleged\nviolations. The Notice also proposed ordering Respondent to take certain measures to correct\none of the alleged violations.\nBy letter dated July 6,2005, Respondent requested an extension of the thirty-day deadline to\nrespond to the Notice. The Director, Central Region, OPS granted the extension until August 19,\n2005. Respondent responded to the Notice by letter dated August 15,2005 (Response).\nRespondent did not contest the allegations of violation, but offered information to explain the\nallegations, described the corrective actions it had taken, and requested a reduction in the\nproposed civil penalty amount. Respondent did not request a hearing, and therefore has waived\nits right to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the alleged violations in the Notice. Accordingly, I\nfind that Respondent violated the following sections of 49 C.F.R. Part 195, as more fully\ndescribed in the Notice:\n49 C.F.R. 5 195.505 (Notice Item 1) -failing to follow its written OQ plan and document\ncovered task qualification for a pipeline controller on task 6 in the 2002-2003 period;\n\n\n\n49 C.F.R. 5 195.505 (Notice Item 2) -failing to follow its written OQ plan and conduct\nannual re-evaluations of thirty-nine individuals for four tasks in 2003; and\n49 C.F.R. 5 195.507(a)(3) (Notice Item 3) -failing to maintain records documenting the\ndates of current qualification for seventeen employee evaluations in 2002 and two\nevaluations in 2003.\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. 5 601 22, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations.\n49 U.S.C. 5 60122 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation,\ndegree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability\nto pay 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 1, the Notice proposed a civil penalty of $2,000 for Respondents failure to\nfollow its written OQ plan and document covered task qualification for a specified pipeline\ncontroller. In its Response, Respondent stated that it believed the individual had been qualified,\nbut acknowledged that it was unable to produce any record of this qualification. Along with\nevaluation and qualification activity itself, accurate and complete recordkeeping is key to\nmonitoring the implementation and ongoing effectiveness of any OQ program. Respondent has\nprovided no information that would warrant a reduction in the civil penalty proposed in the\nNotice for Item 1. Accordingly, I assess Respondent a civil penalty of $2,000 for violating 49\nC.F.R. 5 195.505.\nWith respect to Item 2, the Notice proposed a civil penalty of $1 9,500 for Respondents failure to\nevaluate thirty-nine individuals for four covered tasks for the year 2003. In its response,\nRespondent acknowledged that these individuals had not been evaluated in 2003, but\ndemonstrated that all of them had been evaluated in 2002 and twice in 2004 and that the period\nfor which the qualifications had lapsed was actually only two months. Respondent also\ndescribed the prompt and aggressive corrective actions it had taken in response including placing\nan experienced training coordinator to administer its OQ program and implementation of a\ncomputer based OQ testing program which will remind employees, supervisors and the training\ncoordinator of re-qualification timelines and will track the dates when employees are requalified.\nBased on this information, I find that a reduction in the civil penalty proposed in the Notice for\nthis item is warranted and Item 2 is reduced to $9,750. Accordingly, I assess Respondent a civil\npenalty of $9,750 for violating 49 C.F.R 5 195.505.\n\n\n\nFor the reasons discussed above, having reviewed the record and considered the assessment\ncriteria, I assess Respondent a total civil penalty of $1 1,750.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. 5 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-300), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK 73 125; (405) 954-8893.\nFailure to pay the $1 1,750 civil penalty will result in accrual of interest at the current annual rate\ninaccordancewith31 U.S.C. 3717,31 C.F.R. 5 901.9and49C.F.R. tj 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per m u m will be charged if\npayment is not made within 1 10 days of sewice. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a United\nStates District Court.\nCOMPLIANCE ORDER\nWith respect to Item 3, the Notice proposed a compliance order. Under 49 U.S.C. 5 601 18(a),\neach person who engages in the transportation of hazardous liquids or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. The Regional Director has indicated that Respondent has reviewed and documented\nthe date of qualification of the nineteen individuals referenced in Item 3. Since compliance has\nbeen achieved with respect to this violation, it is unnecessary to include compliance terms in this\nOrder.\nUnder 49 C.F.R. 190.2 15, 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. All other\nterms of this Final Order, including any required corrective action, remain in full effect unless\nthe Associate Administrator, upon request, grants a stay. The terms and conditions of this Final\nOrder are effective on receipt.\nOCT 1 2 2036\nDate Issued\nA in Associate Administrator\nfor ipeline Safety","truncated":false,"body_characters":9332}