{"operation":"document","citation":"CPF 320065005","title":"MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2006-01-17","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320065005.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320065005.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320065005","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320065005","body":"Notice of Probable Violation involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulation as 195,  195.432(b). The case was opened on 2006-01-17 and is reported as closed as of 2006-11-01. Proposed civil penalty: $5,000. Assessed civil penalty: $5,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320065005_Final Order_10192006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320065005/320065005_Final%20Order_10192006.pdf\n\n320065005_Final Order_10192006.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration\n400 Seventh Street, S.W.\nWashington, D.C. 20590\nOCT 1 9 2006\nMr. Rick Olson\nVice President of Transportation\nMagellan Pipeline Company, LLC\n1 Williams Center, Bank of Oklahoma Tower\nP.O. Box 22 186\nTulsa, OK 74 12 1-2 1 86\nRe: CPF No. 3-2006-5005\nDear Mr. Olson:\nEnclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety\nin the above-referenced case. It makes findings of violation and assesses a civil penalty of\n$5,000. 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. § 190.5.\nSincerely,\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Ivan Huntoon, Director, Central Region, OPS\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\n1\nIn the Matter of\n1\nMagellan Pipeline Company, LLC,)\n)\nRespondent 1\nCPF NO. 3-2006-5005\nFINAL ORDER\nBetween May 2 and September 9,2005, pursuant to 49 U.S.C. 5 601 17, representatives of the\nPipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (OPS) and\nthe Minnesota Office of Pipeline Safety (MNOPS) conducted an on-site pipeline safety\ninspection of Respondent's facilities and records at its Tulsa, Oklahoma headquarters and\nvarious field locations. As a result of the inspection, the Director, Central Region, OPS, issued\nto Respondent, by letter dated January 17,2006, a Notice of Probable Violation and Proposed\nCivil Penalty (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding\nthat Respondent had violated 49 C.F.R. Part 195 and proposed assessing a civil penalty of $5,000\nfor the alleged violation.\nRespondent responded to the Notice by letter dated February 22,2006 (Response). Respondent\ndid not contest the allegations of violation and offered information describing the corrective\nactions it has taken. Respondent did not request a hearing, and therefore has waived its right to\none.\nFINDING OF VIOLATION\nIn its Response, Respondent did not contest the alleged violation in the Notice. Accordingly, I\nfind that Respondent violated the following section of 49 C.F.R. Part 195, as more fully\ndescribed in the Notice:\n49 C.F.R. tj 195.432 - failing to demonstrate that the specified breakout tanks received\nmonthly inspections for the specified time periods in 2003 and 2004.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n\n\n\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. tj 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 60122 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil\npenalty, 1 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.\nThe Notice proposed a total civil penalty of $5,000 for Respondent's failure to demonstrate that\nthe specified breakout tanks received monthly inspections for the specified time periods in 2003\nand 2004 in accordance with 5 195.432. Monthly inspection of above-ground breakout tanks is\nkey to ensuring that any physical integrity concerns are promptly identified and addressed. In its\nresponse, Respondent described the corrective actions it had taken including incorporating its\nmonthly external tank inspection procedure into an electronic inspection, maintenance and\nmanagement system capable of transmitting automatic notifications to supervisors if inspections\nare not timely completed. Respondent, however, has presented no information that would\nwarrant a reduction in the civil penalty amount proposed in the Notice for this violation.\nAccordingly, having reviewed the record and considered the assessment criteria, 1 assess\nRespondent a total civil penalty of $5,000. Respondent has the ability to pay this penalty without\nadversely affecting its ability to continue in business.\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 89.2 1 (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.\nFailure to pay the $5,000 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. 5 3717,31 C.F.R. 5 901.9 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 1 10 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.\n\n\n\nThe terms and conditions of this Final Order are effective on receipt.\nOCT 1 9 2006\nDate Issued\nA in Associate Administrator\nU i p e l i n e Safety","truncated":false,"body_characters":6620}