{"operation":"document","citation":"CPF 320065026","title":"SUPERIOR REFINING COMPANY LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2006-03-06","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.505(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320065026.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320065026.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320065026","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320065026","body":"Notice of Probable Violation involving SUPERIOR REFINING COMPANY LLC. PHMSA's enforcement data identifies the cited regulation as 195.505(b). The case was opened on 2006-03-06 and is reported as closed as of 2006-11-06. 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\n320065026_Final Order_10162006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320065026/320065026_Final%20Order_10162006.pdf\n\n320065026_Final Order_10162006.pdf\n\n@\nU.5. Depqfiment\nof Tronsoonofion\nPipeline ond Hqzordous\nMoteriols sofefy Adminisfrolion\n400 Seventh Streel, S.W.\nwashington, D.c. 20590\nocT 1 6 20il1j\nW.M. Hulse\nPresident\nMurphy Oil USA,Inc.\n200 Peach Street\nElDorado,AR 71731\nRE: CPFNo. 3-2006-5026\nDear Mr. Hulse:\nEnclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety in\nthe above-referenced case. It makes a finding ofviolation, assesses a civil penalty of$5,000 and\nspecifies actions to be taken to comply with the pipeline safety regulations. The penalty paynent\nterms are set forth in the Final Order. This enforcement action closes automatically upon payment.\nYour receipt of the Final Order constitutes seryice of that document under 49 C.F.R. $ 190.5.\nSincerely,\nt'lt\nA\"\"^\" UV---\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\ncc: Mr, David J. Podratz, Manager, Superior Refinery\nMr. Ivan Huntoon, Director, Central Region, OpS\nEnclosure\nCERTIFIED MAIL - RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELIND AND IIAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOF'FICE OF' PIPELINE SAFETY\nWASHINGTON. D.C. 20590\nIn the Matter of\nMurphy Oil USA,Inc.,\nRespondent.\n)\n)\n)\n)\n)\nCPF No. 3-2006-5026\nF'INAL ORDER\nOn October 12-13, 2005, pursuant to 49 $ U.S.C. 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), Central\nRegion, conducted an on-site pipeline safety inspection of Respondent's Operator Qualification\nrecords and procedures in Superior, Wisconsin. As a result of the inspection, the Director, Central\nRegion, issued to Respondent, by letter dated March 6, 2006, a Notice of Probable Violation,\nProposed Civil Penalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. S\n190.207, the Notice proposed finding that Respondent had violated 49 C.F.R. 9195.505(b) and\nproposed assessing a civil penalty of $5,000 for the alleged violation. The Notice also proposed that\nRespondent take certain measures to correct the alleged violation.\nRespondent responded to the Notice by letter dated April 21, 2006 (Response). Respondent did not\ncontest the allegation but offered information to explain the allegation and requested that the\nproposed civil penalty be eliminated. Respondent also requested a hearing. Respondent submitted\na supplemental response dated July 14,2006 withdrawing its request for a hearing.\n4TNDINGS OF VIOLATION\nUncontested\nRespondent did not contest the alleged violation of 49 C.F.R. $ 1 95.505 in the Notice. Accordingly,\nI find that Respondent violated 49 C.F.R. Part 195, as more fully described in the Notice:\n49 C.F.R. S192.505('b) - failure to ensure through evaluations that individuals\nperforming covered tasks are qualified.\nThis finding of violation will be considered a prior offense in any subsequent enforcement\naction taken against Respondent.\nItem I of the Notice alleged that Respondent violated 49 C.F.R. $ I 95.505(b), when Respondent did\nnot provide records to demonstrate that all contract employees were qualified to perform covered\n\n\n\nz\ntasks on its jurisdictional pipeline facilities under Respondent's Operator Qualification (OQ)\nprogram. Respondent's records also contained no evidence ofevaluations or documentation that\nthe individuals in question were qualified to performed two covered task, line locating and relief\nvalve inspection. From October 2002 ro July 2005, these covered tasks were performed multiple\ntimes with no evidence that the individuals were \"qualified\" to perform these covered tasks.\nIn response to Item 1, Respondent advised that it requested and received a documented work\nperformance history review worksheet for each contract employee in question. Respondent\nsubmitted qualification records for the two contract employees, which included a Work History\nPerformance Review Field Worksheet on each applicable employee and a National Board of Boiler\nand Pressure Vessel \"Certification of Authorization\" or \"VR Stamp\", Respondent advised that this\nsubmission also qualified the two contract employees to repair relief valves. Respondent further\nstated that its locator was qualified through a third party trainer the day after the OPS inspection and\nsubmitted that record.\nRespondent is required to demonstrate compliance with an applicable regulation during a PHMSA\ninspection. The violation report clearly indicates that the PHMSA inspection team inquired about\ncompliance with 49 C.F.R. $195.505(b) and the inspector discussed Respondent's deficiencies\nduring the exit interview. Thus, Respondent was well aware ofthe lack of sufficient documentation\nandthe requirementto provide relevant OQ records to demonstrate compliance before the conclusion\nofthe inspection. During a pipeline safety inspection operators must provide the documentation and\nrecords, as required by federal pipeline safety laws and regulations, to demonstrate compliance.\nOperators are responsible for compliance with the pipeline safety regulations, which includes sound\nrecord keeping. Without the required records and history, it is difficult for an operator to\ndemonstrate that individuals are properly qualified to perform specific covered tasks. Respondent\nsubmitted records to demonstrate compliapce after issuance of the Notice. However, no records\nwere provided by Respondent during the inspection nor during the post inspection exit interview to\ndemonstrate that the two contract employees were properly qualified to perform the covered tasks.\nAccordingly, I find that Respondent violated 49 C.F.R. 9195.505(b).\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 $ I ,000,000 for any related series of\nviolations.\n49 U.S.C. $ 60122 and 49 C.F.R. $ 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gmvity of the violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other matters as justice may require. The Notice proposed\na total civil penalty of $5,000 for violations of 49 C.F.R. Part I 95.\n\n\n\n3\nThe proposed civil penalty for Item I is $5,000 for violation of 49 c.F.R. g195.505(b), as\nRespondent failed to provide records to demonstrate that two ofits contract employees were properly\nqualified to perform the covered task under Respondent's operator eualification (oe) prograrn\nRespondent also failed to ensure through evaluations that individuals plrror-ing covered tasks are\nqualified' The determination was made in the \"Findings\" section oi thi, ord\"r that Respondent\nviolaled 49 C'F'R' $195.505(b). No records were provided by Respondent during the inspection,\nthe during the post inspection exit interview or prior to issuance of the Notice to demonstrate\ncompliance to adequately show that the two aontract employees were properly qualified to perform\nthe covered tasks. Respondent has not provided any explanation orjusiification why the records and\ndocumentation were not provided during the inspection.\nTheregulatoryconditionsforthe conduct of inspections to determinecompliance andthatgives OpS\nthe general authority to inspect pipelines and related records for compliance with applicable\nregulations is set forth in 49 C'F.R. $190'203. An operator is required to maintain records in\naccordance with the requirements of 49 CFR 195 forall individuals performing covered tasks.\nRespondent is under an affirmative duty to achieve and maintain compliance. Respondent failed to\nmeet its duty. Respondent did not contest the allegation of violationbut offered an explanation.\nThe primary objectiv.e ofthe Federal pipeline safety standards is safe operation ofpipeline systems.\nWhen an operator fails to conduct and ensure proper operator qualification, the operator rirk, tt ut\na task essential in the day to day operation of the pipelini may be incorrectly performed on its facility\n.-.\nand thereby increases the risk of harm to the pubfic and the environment.\n- Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na total civil penalty of $5,000 for violation of 49 C.F.R. g195.505(b).\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 CFf Number for this case) payable to ..U.d.\nDeparhnent ofTransportation\" to the Federal Aviation Administration, Mike Monroney Aeronautical\ncenter, Financial operations Division (AMZ-300), p.o. Box 25}sz:,oklahoma city, oK 73125.\nFederal regulations (49 C.F'R' $ 89.21OX3) also permit this payment to be made by wire transfer,\nthroughtheFederal Reserve Communications System (Fedwiri;,io theaccount ofthe U.S. Treasury,\nDetailed instructions are contained in the enclosure. Questionsconceming wire transfers should be\ndirected to: Financial operations Division (AMZ-300), Federal Aviatiin Administration, Mike ,.'.\nMonroney Aeronautical center, p,o. Box 2s}gz,oklahoma city, oK 73125;(405) 954-gg93,\nFailure to pay the $5,000 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 3l u-s.c- s 3717,3l c.F.R. $ 901.9 and 49 C.F.R. $ gg.23. pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annum *itt U\" charged if payment is not\nmade within I 10 days of service. Furthermore, failure-to pay the civil penalty may risult in referral\nof the matter to the Attorney General for appropriate action in a United States I)istrict Court.\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item I in the Notice for violation of 49\nC.F.R. $195.505(b), Under 49 U.S.C. $ 60118(a), each person who engages in the transportation\nof hazardous liquids or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601 . The Regional Director has indicated that\nRespondent has taken the following actions specified in the proposed compliance order:\nRespondent submitted adequate records or data that carefully and thoroughly document and\nsupport the evaluation or qualification ofthe contract employees to perform specific covered\ntasks under Respondent's OQ program.\nAccordingly, since compliance has been achieved with respect to this violation, the compliance\nterms are not included in this Order.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to submit a Petition for Reconsideration of this\nFinal Order. The petition must be received within 20 days of Respondent's receipt of this Final\nOrder and must contain a brief statement of the issue(s). The filing of t}re petition automatically\nstays the payment of any civil penalty assessed. However if Respondent submits payment for the\ncivil penalty, the Final Order becomes the final administrative decision and the right to petition for\nreconsideration is waived. The terms and conditions of this Final Order are effective on receipt.\nocT 16 2006\nDate Issued:\nfor Pipeline Safety","truncated":false,"body_characters":11834}