# ZENITH ENERGY TERMINALS HOLDINGS, LLC — Notice of Amendment - **operation:** document - **citation:** CPF 320075012M - **title:** ZENITH ENERGY TERMINALS HOLDINGS, LLC — Notice of Amendment - **source type:** enforcement - **agency:** Pipeline and Hazardous Materials Safety Administration - **status:** historical - **official:** true - **published on:** 2007-03-12 - **effective on:** Not available - **summary:** CLOSED notice of amendment citing 195.310(b)(10), 195.402(c)(14), 195.402(d)(5), 195.426, 195.432(b), 195.440, 195.565, 195.567, 195.571, 195.573, 195.577, 195.583. - **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320075012m.json - **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320075012m.md - **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320075012m - **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320075012M **body:** Notice of Amendment involving ZENITH ENERGY TERMINALS HOLDINGS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.310(b)(10), 195.402(c)(14), 195.402(d)(5), 195.426, 195.432(b), 195.440, 195.565, 195.567, 195.571, 195.573, 195.577, 195.583. The case was opened on 2007-03-12 and is reported as closed as of 2007-10-05. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 320075012M_Notice Of Amendment_0312007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075012M/320075012M_Notice%20Of%20Amendment_0312007.pdf 320075012M_Operator Response_08072007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075012M/320075012M_Operator%20Response_08072007.pdf 320075012M_Notice Of Amendment_0312007.pdf MAR 1 4 2007 @ U.S. Deportment of Tronsportotion Pipsllne qnd Hqzqrdous l oteriols Sofety Admlnlstrotion 901 Locust Slreet, Suite 462 Kansas City, MO 64106-2641 NOTICE OF'AMENDMENT CERTIFIED MAIL. RETURN RECEIPT REOUESTED March12,2007 Mr. Bob White Manager Regulatory Compliance Center Terminal Company 600 Mason Ridge Center Drive St. Louis. MO 63141 cPF 3-2007-5012M Dear Mr. White: On November 27 and28,2006, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Center Terminal Company's procedures for emergency response, operation, and maintenance in Toledo, Ohio. On the basis of the inspection,, PHMSA has identified the apparent inadequacies found within Center Terminal Company's plans or procedures, as described below: 1. 5195.402 Procedural Procedures for Operations, Maintenance and Emergencies. $195.a02(a) requires that each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance actiyities and handling abnormal operations and emergencies. $195.a02(c) indicates that the manual required by paragraph (a) ofthis section must include procedures for the following to provide safety during maintenance and normal operations: (3) Operating maintaining, and repairing the pipeline syst€m in accordance with each ofthe requirements ofthis subpart and subpart H ofthis part. Review ofthe Operation and Maintenance (O&M) procedwes found that the following requirements were not adequately covered in the proceduies or needed to be expanded to provide additional guidance to your personnel: a) $195,310(b)(10) Records - Center Terminal Company - Toledo's Procedures do not state the temperature of the pipe or presslrre test water will be recorded during a pressure test and where temperature sensors will be placed. b) 5195,402 (c) (1a) Center Terminal Company - Toledo's Procedures should be expanded to include making available at the excavation sites emergency rescue equipment including rescue hamess, and line. c) $195.402 (d) (5) Center Terminal Company - Toledo's Procedures do not contain provisions for the review of operating personnel performance to determine the effectiveness ofprocedures and taking corrective actions when deficiencies are found. d) Sf 95.426 Scraper and Sphere Facilities - Center Terminal Company - Toledo's Procedures do not state launchers and receivers will have pressure interlock devices and pressure indicators. e) $195.432 (b) Inspection of in-service break-out-tanks - Center Terminal Company - Toledo's Procedures do not state break-out tank monthly and out-of-service inspection requirements. 0 5195.440 Public awareness - Center Terminal Company - Toledo's Procedures do not contain a Public Awareness Program in accordance with API RP 1162. g) $195.565 How do I install cathodic protection on breakout tanks? - Center Terminal Company - Toledo's Procedures do not address cathodic protection ofbreak- out tank or state why compliance with all or certain provisions of API Recommended Practice is not necessary for the safety ofthe tank. h) $195.567 Which pipelines must have test leads and what must I do to install and maintain the leads? - Center Terminal Company - Toledo's Procedures does not state defective cathodic protection test leads will be repaired by the next inspection cycle. i) Sf 95.571 What criteria must I use to determine the adequacy of cathodic protection? - Center Terminal Company - Toledo's Procedure 401 does not staxe an adequate level ofcathodic protection will include IR drop consideration. j) 5195.573 What must I do to monitor external corrosion control? - Center Terminal Company - Toledo's Procedures do not state that all CP system deficiencies will be remediated by the next inspection interval. k) $195.577 What must I do to alleviate interference currents? - Center Terminal Company - Toledo's Procedures should be expanded to include developing liaisons regarding cathodic protection with other pipelines in the area of their pipeline. l) 5195.583 What must I do to monitor atmospheric corrosion? - Center Terminal Company - Toledo's Procedures do not state atmospheric corrosion inspection requirements and the remediation period for repairing atmospheric corrosion. Response to this Notice This Notice is provided pursuant to 49 U.S.C. $ 60108(a) and 49 C.F.R. $ 190.237. Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. If; after opportunity for a hearing, your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. $ 190.237). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within 90 days of receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in vour amended orocedures. this enforcement action will be closed. In correspondence concerning this matter, please refer to CPF 3-2007-5012M and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, n n tl --+-- V.r'"-, //, /r/-*-;hr',.-- Ivan A Huntoon Director, Central Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings Response Options for Pipeline Operators in Compliance Proceedings The requirements of 49 C.F.R. Part 190, Subpart B ($$ 190.201-190.237) govern response to Notices issued by a Regional Director, Pipeline and Hazardous Materials Safeff Administration (PHMSA). Be advised that all material submitted by a respondent in response to an enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualifu for confidential treatrnent redacted and an explanation ofwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). Procedures for Respondins to a NOTICE Otr'PROBABLE VIOLATION: Within 30 days of receipt of a Notice of Probable Violation, the respondent shall respond to the Regional Director who issued the Notice in the following way; a. When the Notice contains aproposed CIVIL PENALTY* - L Pay the proposed civil penalty and advise the Regional Director ofthe paymenL This authorizes PHMSA to make findings and to close the case with prejudice to the respondent. Payment tems are outlined below; 2. Submit written explanations, information, or other materials in response to the allegations and/or seek elimination or mitigation of the proposed civil penalty. Refer to 49 C.F.R, $ 190.225 for assessment considerations, which include the respondent's ability to pay and the effect on the respondent's ability to stay in business, upon which civil penalties are based; or 3. Request a hearing as described below to contest the allegations and/or proposed assessment of a civil penalty. b. When the Notice contains a proposed COMPLIANCE ORDER* -- l' Notiff the Regional Director that you intend to take the steps in the proposed compliance order; 2. Submit witten explanations, information, or other materials in answer to the allegations in the Notice and object to or seek clarification ofthe proposed compliance order items in whole or in part; or J . Request a hearing as described below to contest the allegations and/or proposed compliance order items; I of5 il. n. c. When the Notice contains a WARNING ITEM - No written response is required. The respondent is warned that if it does not take appropriate action to corect these items, enforcement action will be taken if a subsequent inspection reveals a violation. * Failure of the respondent to respond to the Notice within 30 days of receipt constitutes a waiver of the right to contest the allegations in the Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in the Notice without further notice to the respondent and to issue a Final Order. Procedures for Resrrondins to a NOTICE OX'AMENDMENT*- Within 30 days of receipt of a Notice of Amendment, the respondent shall respond to the Regional Director who issued the Notice in the following way: a. Notify the Regional Director of your plans to address the inadequacies identified in the Notice; b. Submit uritten explanations, information, or other materials in answer to the allegations in the Notice and/or object to or seek clarification ofthe proposed amendment items in whole or in oart: or c, Request a hearing as described below to contest the allegations in the Notice. * Failure of the respondent to respond to the Notice within 30 days of receipt constitutes a waiver of the right to contest the allegations in the Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in the Notice without further notice to the respondent and to issue a Final Order. Procedure for Requesting a llearins A request for a hearing must be in writing and accomparried by a statement of the issues that the respondent intends to raise at the hearing. The issues may relate to the allegations, new information, or to the proposed compliance order or proposed civil penalty amount. Refer to 49 C.F.R. $ 190.225 for assessment considerations upon which civil penalties are based. A respondent's failure to speciff an issue may result in waiver of the right to raise that issue at the hearing. The respondent's request must also indicate whether or not respondent will be represented by counsel at the hearing. Failure to request a hearing in writing within 30 days of receipt of a Notice waives the right to a hearing. In addition, if the amount of the proposed civil penalty or the proposed corrective action is less than $10,000, the hearing will be held by telephone, unless the respondent submits a written request for an in-person hearing. Complete hearing procedures can be found at 49 C.F.R. $ 190.211. 2 of5 IV. V. VI. Extensions of Time An extension of time to prepare an appropriate response to aNotice may be granted, at the agency's discretion, following submittal of a written request to the Regional Director. The request must indicate the amount of time needed and the reasons for the extension. The request must be submitted within 30 days of receip of the Notice,' tr'reedom of Information Act Any material prepared by PHMSA, including the violation report, the Notice, and any order issued in this case, and any material provided to PHMSA by the respondent, may be considered public information and subject to disclosure under the Freedom of Information Act (FOIA). If the information you provide is security sensitive, privileged, confidential or may cause your company competitive disadvantages, please clearly identiff the matedal and provide justification why the documents, or portions of a document, should not be released under FOIA. If we receive a request for your material, we will notifu you if PHMSA, after reviewing the materials and your provided justification, determines that withholding the materials does not meet any exemption provided under the FOIA. You may appeal the agency's decision to release material under the FOIA at that time. Your appeal will stay the release of those materials until a final decision is made. Small Business Resulatory Enforcement Fairness Act Information The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Fairness Boards were established to receive comments from small businesses about federal agency enforcement actions. The Ombudsman will annually evaluate the enforcement activities and rate each agency's responsiveness to small business. Ifyou wish to comment on the enforcement actions ofthe Pipeline and Hazardous Materials Safety Administration, call l-888-REG-FAIR (1-888-734-3247) or go to http : i/www. sba. gov/ombudsman/dsp_faq.htrnl. J O I ) vII. PAYMENT INSTRUCTIONS Civil Penalty Payments of Less Than $10,000 Payment ofa civil penalty ofless than $10,000 proposed or assessed, under Subpart B ofPart 190 of the Pipeline Safety Regulations can be made by certifred check, money order or wire transfer. Payment by certified check or money order (containing the CPF Number for this case) should be made payable to the "Department of Transportation" and should be sent to: Federal Aviation Administration Mike Monroney Aeronautical Center Financial Operations Division (AMZ-300) P.O. Box 25082 Oklahoma City, OK 73125-4915 Wire transfer payments of less than $10,000 may be made through the Federal Reserve Communications System (Fedwire) to the account of the U,S. Treasury. Detailed instructions are provided below. Questions concerning wire transfer should be directed to the Financial Operations Division at (405) 954-8893, or at the above address Civil Penalty Payments of $10,000 or more Payment of a civil penalty of $ I 0,000 or more proposed or assessed under Subpart B of Part 190 of the Pipeline Safety Regulations pggq! be made wire transfer (49 C.F.R. $ 89.21 (bX3)), through the Federal Reserve Communications System (Fedwire) to the account of the U.S. Treasury. Detailed instructions are provided below. Questions concerning wire transfers should be directed to the Financial Operations Division at (405) 954-8893, or at the above address. INSTRUCTIONS FOR ELECTRONIC F'UND TRANSFERS (I)RECEWER ABANO. 021030004 (2) TYPE/SUB-TYPE (Provided by sending bank) (3) SENpTNG BANK ABANO. (Provided by sending bank) (4) SENpTNG BANK REF NO. (Provided by sending bank) (s) AMOTJNT (6) SENDING BANKNAME (Provided by sending bank) (7) RECEIVERNAME TREAS NYC (8) PROpUCT COpE (Normally CTR, or as provided by sending bank) (9) BENEFICIAL (BNil =AGENCY LOCATIONCODE BNF: /ALC-69-14-0001 (1 0) REASONS FOR PAYMENT Example; PHMSA - CPF # / Ticket Number/Pipeline Assessment number 4 of5 INSTRUCTIONS; You, as sender of the wire transfer, must provide the sending bank with the information for blocks (1), (5), (7), (9), and (10). The information provided in Blocks (1), (7), and (9) are constant and remain the same for all wire transfers to the Pipeline and Hazardous Materials Safety Administration, Department of Transportation. Block #1 - RECEIVER ABA NO. - "021030004". Ensurs the sending bank enters this 9-digit identif,rcation number; it represents the routing symbol for the U.S. Treasury at the Federal Reserve Bank in New York. Block #5 - AMOUNT - You as the sender provide the amount of the transfer. Please be sure the transfer amount is punctuated with commas and a decimal point. EXAMPLE: $10.000.00 Block #7 - RECEIVERNAME - "TREAS NYC". Ensure the sending bank enters this abbreviation. It must be used for all wire transfers to the Treasury Department. Block #9 - BENEFICIAL - AGENCY LOCATION CODE - 'BNF=/ALC-69-14-0001'. Ensure the sending bank enters this information. This is the Agency Location Code for the Pipeline and Hazardous Materials Safety Administration, Department of Transportation. Block #10 - REASON FOR PAYMENT - 55AC-payment for PIIMSA Case # / To ensure your wire transfer is credited properly, enter the case number/ticket number or Pipeline Assessment number, and oountry." NOTE: A wire transfer must comply with the format and instructions or the Department cannot accept the wire transfer. You as the sender can assist this process by notifying the Financial Operations Division (405) 954-8893 at the time you send the wire transfer. 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