# MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

320065005_Final Order_10192006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320065005/320065005_Final%20Order_10192006.pdf

320065005_Final Order_10192006.pdf

U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety Administration
400 Seventh Street, S.W.
Washington, D.C. 20590
OCT 1 9 2006
Mr. Rick Olson
Vice President of Transportation
Magellan Pipeline Company, LLC
1 Williams Center, Bank of Oklahoma Tower
P.O. Box 22 186
Tulsa, OK 74 12 1-2 1 86
Re: CPF No. 3-2006-5005
Dear Mr. Olson:
Enclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety
in the above-referenced case. It makes findings of violation and assesses a civil penalty of
$5,000. 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. § 190.5.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
cc: Ivan Huntoon, Director, Central Region, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
1
In the Matter of
1
Magellan Pipeline Company, LLC,)
)
Respondent 1
CPF NO. 3-2006-5005
FINAL ORDER
Between May 2 and September 9,2005, pursuant to 49 U.S.C. 5 601 17, representatives of the
Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (OPS) and
the Minnesota Office of Pipeline Safety (MNOPS) conducted an on-site pipeline safety
inspection of Respondent's facilities and records at its Tulsa, Oklahoma headquarters and
various field locations. As a result of the inspection, the Director, Central Region, OPS, issued
to Respondent, by letter dated January 17,2006, a Notice of Probable Violation and Proposed
Civil Penalty (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding
that Respondent had violated 49 C.F.R. Part 195 and proposed assessing a civil penalty of $5,000
for the alleged violation.
Respondent responded to the Notice by letter dated February 22,2006 (Response). Respondent
did not contest the allegations of violation and offered information describing the corrective
actions it has taken. Respondent did not request a hearing, and therefore has waived its right to
one.
FINDING OF VIOLATION
In its Response, Respondent did not contest the alleged violation in the Notice. Accordingly, I
find that Respondent violated the following section of 49 C.F.R. Part 195, as more fully
described in the Notice:
49 C.F.R. tj 195.432 - failing to demonstrate that the specified breakout tanks received
monthly inspections for the specified time periods in 2003 and 2004.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.



ASSESSMENT OF PENALTY
Under 49 U.S.C. tj 60122, Respondent is subject 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 series of
violations.
49 U.S.C. 5 60122 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil
penalty, 1 consider the following criteria: nature, circumstances, and gravity of the violation,
degree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability
to pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on
Respondent's ability to continue in business, and such other matters as justice may require.
The Notice proposed a total civil penalty of $5,000 for Respondent's failure to demonstrate that
the specified breakout tanks received monthly inspections for the specified time periods in 2003
and 2004 in accordance with 5 195.432. Monthly inspection of above-ground breakout tanks is
key to ensuring that any physical integrity concerns are promptly identified and addressed. In its
response, Respondent described the corrective actions it had taken including incorporating its
monthly external tank inspection procedure into an electronic inspection, maintenance and
management system capable of transmitting automatic notifications to supervisors if inspections
are not timely completed. Respondent, however, has presented no information that would
warrant a reduction in the civil penalty amount proposed in the Notice for this violation.
Accordingly, having reviewed the record and considered the assessment criteria, 1 assess
Respondent a total civil penalty of $5,000. Respondent has the ability to pay this penalty without
adversely affecting its ability to continue in business.
Payment of the civil penalty must be made within 20 days of service. Payment may be made by
sending a certified check or money order (containing the CPF Number for this case) payable to
"U.S. Department of Transportation" to the Federal Aviation Administration, Mike Monroney
Aeronautical Center, Financial Operations Division (AMZ-300), P.O. Box 25082, Oklahoma
City, OK 73 125.
Federal regulations (49 C.F.R. 5 89.2 1 (b)(3)) also permit this payment to 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 concerning wire
transfers should be directed to: Financial Operations Division (AMZ-300), Federal Aviation
Administration, Mike Monroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK
73 125; (405) 954-8893.
Failure to pay the $5,000 civil penalty will result in accrual of interest at the current annual rate
in 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
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 1 10 days of service. Furthermore, failure 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.



The terms and conditions of this Final Order are effective on receipt.
OCT 1 9 2006
Date Issued
A in Associate Administrator
U i p e l i n e Safety
- **truncated:** false
- **body characters:** 6620