{"operation":"document","citation":"CPF 320055031","title":"ERGON TERMINALING, INC. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2005-08-31","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.222, 195.302(a), 195.402(c)(12), 195.408(b)(1), 195.509(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320055031.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320055031.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320055031","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320055031","body":"Notice of Probable Violation involving ERGON TERMINALING, INC.. PHMSA's enforcement data identifies the cited regulations as 195.222,  195.302(a),  195.402(c)(12),  195.408(b)(1),  195.509(a). The case was opened on 2005-08-31 and is reported as closed as of 2011-03-30. Proposed civil penalty: $10,000. Assessed civil penalty: $10,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320055031_Closure Letter_03302011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055031/320055031_Closure%20Letter_03302011.pdf\n\n320055031_Closure Letter_03302011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055031/320055031_Closure%20Letter_03302011_text.pdf\n\n320055031_Final Order_09012006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055031/320055031_Final%20Order_09012006.pdf\n\nCPF_NO_3-2005-5031.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320055031/CPF_NO_3-2005-5031.pdf\n\n320055031_Closure Letter_03302011_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 30, 2011\nErgon Trucking\nMr. Russ Maroney\nVice President – Operations\n2829 Lakeview Drive\nP. O. Box 1639\nJackson, Mississippi 32215\nCPF 3-2005-5031\nDear Mr. Maroney:\nOn September 1, 2006, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) issued to Ergon Trucking a Final Order. This Order included a Compliance\nOrder, Civil Penalty, and the requirement to take corrective actions on your pipeline.\nBased on our review of the documentation you provided and confirmation of payment of\nthe civil penalty, it has been determined that you have complied with the terms of this\nOrder.\nAccordingly, this case is now closed and no further action is contemplated with respect to\nthe matters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDavid Barrett\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n\n320055031_Final Order_09012006.pdf\n\nU.S. Department 400 Seventh Street, S.W.\nof Transportation Washington, D.C. 20590\nPipeline and Hazardous\nMaterials Safety Administration SEP - 1 f'\nMr. Larry Hartness\nVice President - Operations\nErgon Inc.\n2829 Lakeland Drive, Ste 2000\nJackson, MS 39232-761 1\nRE: CPF NO. 3-2005-503 1\nDear. Mr. Hartness:\nEnclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety\nin the above-referenced case. It makes findings of violations, assesses a civil penalty of $10,000,\nand specifies actions you must take to comply with the pipeline safety regulations. The penalty\npayment terms are set forth in the Final Order. When the civil penalty is paid and the terms of\nthe Compliance Order are completed, as determined by the Director, Central Region, OPS, this\nenforcement action will be closed. Your receipt of the Final Order constitutes service of that\ndocument under 49 C.F.R. 8 190.5.\nSincerely,\nw\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Ivan A. Huntoon\nDirector, Central Region, OPS (PHP-300)\nCERTIFIED MAIL -RETURN RECEIPT REQUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of\nErgon, Inc., ) CPF NO. 3-2005-5031\nRespondent\n)\n)\n1\n1\n1\nFINAL ORDER\nDuring the week of November 8,2004, pursuant to 49 U.S.C. 5 601 17, a representative of the\nPipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (OPS)\nconducted an on-site pipeline safety inspection of Respondent's facilities in Ohio and West\nVirginia and reviewed Respondent's records at its Magnolia, Ohio office. As a result of the\ninspection, the Director, Central Region, OPS, issued to Respondent, by letter dated August 3 1,\n2005, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding that Respondent\nhad committed violations of 49 C.F.R. Part 195, and proposed assessing a civil penalty of\n$1 0,000 for one of the alleged violations. The Notice also proposed ordering Respondent to take\ncertain measures to correct several of the alleged violations.\nRespondent responded to the Notice by letter dated October 5,2005, as supplemented by letter\ndated November 1 1,2005 (Response). Respondent did not contest the allegations, but provided\ninformation describing the corrective measures it was taking. Respondent did not request a\nhearing and therefore has waived its 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. 5 195.302 (Notice Item 2) -failing to pressure test all sections of its pipeline in\naccordance with Subpart E of 49 C.F.R. Part 195;\n49 C.F.R. 5 195.402(~)(12) (Notice Item 3) -failing to establish and maintain liaison with\nfire, police, 91 1 services, and other appropriate state and local government offices that may\nbe involved in responding to a pipeline emergency;\n\n\n\n49 C.F.R. $5 195.408(b)(l) (Notice Item 4) -failing to have a communication system to\nprovide for the transmission of information permitting the detection of abnormal operating\nconditions on its pipeline in accordance with 5 195.402(~)(9); and\n49 C.F.R. 5 195.509 (Notice Item 5) -failing to have an operator qualification (OQ) program\nmeeting the requirements of Subpart G of 49 C.F.R. Part 195 in place by the applicable\nregulatory deadline.\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 60122, 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 60 122 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 Notice Item 5, the Notice proposed a civil penalty of $1 0,000 for Respondent's\nfailure to have an OQ program in place by the applicable regulatory deadline. A pipeline\noperator is obligated to ensure that the workers and contractors it employs to operate and\nmaintain its pipelines are qualified to perform all covered tasks. Failure to establish and follow\nan OQ plan as required by the applicable regulations could potentially put the public and the\nenvironment at risk. Respondent has presented no information that would warrant a reduction in\nthe civil penalty amount proposed in the Notice for this violation. Accordingly, having reviewed\nthe record and considered the assessment criteria, I assess Respondent a civil penalty of $10,000\nfor violating 49 C.F.R. 5 195.509.\nPayment of the civil penalty must be made within 20 days of service. Payment may be made by\nsending a certified check or money order (containing the CPF Number for this case) payable to\n\"U.S. Department of Transportation\" to the Federal Aviation Administration, Mike Monroney\nAeronautical Center, Financial Operations Division (AMZ-300), P.O. Box 25082, Oklahoma\nCity, OK 73 125.\nFederal regulations (49 C.F.R. 5 89.21(b)(3)) also permit this payment to be made by wire\ntransfer, through the Federal Reserve Communications System (Fedwire), to the account of the\nU.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMZ-300), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK\n73 125; (405) 954-8893.\n\n\n\nFailure to pay the $10,000 civil penalty will result in accrual of interest at the current annual rate\ninaccordance with31 U.S.C. 5 3717,31 C.F.R. 8 901.9 and 49 C.F.R. 5 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\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 Items 2,3, and 4, the Notice proposed a Compliance Order. Under 49 U.S.C. 5\n601 18(a), each person who engages in the transportation of hazardous liquids or who owns or\noperates a pipeline facility is required to comply with the applicable safety standards established\nunder chapter 60 1.\nWith respect to Items 2 and 3, Respondent provided information demonstrating that it has\ncorrected the violations. Specifically, the Regional Director has indicated that Respondent has\ncompleted pressure testing of all sections of its pipeline in accordance with Subpart E and has\nestablished liaison with fire, police, 9 11 services, and other appropriate state and local\ngovernment offices that may be involved in responding to a pipeline emergency. Since\ncompliance has been achieved with respect to these two items, it is unnecessary to include\ncompliance terms for them in this Order.\nWith respect to Item 4 in the Notice, Respondent has not yet demonstrated that compliance has\nbeen achieved. Accordingly, pursuant to the authority of 49 U.S.C. 5 601 18(b) and 49 C.F.R. 5\n190.217, Respondent is ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to its operations:\n1. Not later than September 1, 2006, have a system in place and activated to detect\nabnormal operating conditions regarding crude oil deliveries to the refinery and transmit\nthis data to an attended location;\n2. In the interim, provide for additional monitoring for abnormal operating conditions\nbefore start-up and during crude oil deliveries to the refinery; and\n3. Provide documentation showing that the system is operational to the Director, Central\nRegion, OPS by the above specified date.'\nThe Regional Director may grant an extension of time to comply upon a written request\ndemonstrating good cause for an extension.\n' The Proposed Compliance Order in the Notice required the system for detecting abnormal operating conditions to\nbe operational by December 3I, 2005. In its November 11,2005 letter, Respondent requested an extension of this\ndeadline and provided information justifying the request. The Director, Central Region, granted an extension until\nSeptember 1,2006\n\n\n\nFailure to comply with this Compliance Order may result in the assessment of civil penalties of\nup to $100,000 per violation per day, or in the referral of the case for judicial enforcement.\nWARNING ITEM\nThe Notice did not propose a civil penalty or corrective action for Item 1 in the Notice-\nRespondent's failure to qualify a welder for three pipe cutout replacement projects conducted in\nJuly of 2001 in accordance with 49 C.F.R. 5 195.222. Therefore, this is considered to be a\nwarning item. Respondent provided information in its response indicating that is has initiated\nactions addressing this item. Respondent is warned that if it does not take appropriate action to\nfully correct this item, enforcement action will be taken if a subsequent inspection reveals a\nviolation.\nUnder 49 C.F.R. 5 190.215, 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. All other\nterms of the order, including any required corrective action, remain in full effect unless the\nAssociate Administrator, upon request, grants a stay. The terms and conditions of this Final\nOrder are effective on receipt.\nSEP - 1 20G5\nDate Issued\nA ' g Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":12273}