MOBIL PIPE LINE COMPANY — Notice of Probable Violation

party submissionOfficial PDF320095025_Operator Response_02022010.pdf#

320095025_Final Order_04162013_text.pdf, page 1Official PDFAPRIL 16, 2013 Mr. Gary W. Pruessing President ExxonMobil Pipeline Company 800 Bell Street, Room 641D Houston, Texas 77002 Re: CPF No. 3-2009-5025 Dear Mr. Pruessing: Enclosed please find the Final Order issued in the above-referenced case. It withdraws one of the allegations of violation, makes one other finding of violation, and assesses a reduced civil penalty of $15,000. The penalty payment terms are set forth in the Final Order. This enforcement action closes automatically upon receipt of payment. Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure cc: Mr. David Barrett, Director, Central Region, OPS Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS Mr. John Y. Dupre, Northern Operations V.P. Manager, ExxonMobil Pipeline Company, 3225 Gallows Road, Room 5B2134, Fairfax VA 22037 CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

320095025_Final Order_04162013_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) ExxonMobil Pipeline Company, ) CPF 3-2009-5025 ) Respondent. ) ____________________________________) FINAL ORDER Between November 25 and December 3, 2009, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted a pipeline safety inspection of the pipeline facilities and records of ExxonMobil Pipeline Company (ExxonMobil or Respondent), at the company’s Lockport Terminal in Lockport, Illinois (Terminal), and various other locations in Illinois. ExxonMobil is a major pipeline operator in the United States, with more than 10,796 miles of pipeline in operation.1 As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated November 25, 2009, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that ExxonMobil had violated 49 C.F.R. § 195.404 and assessing a civil penalty of $30,000 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violations. After requesting and receiving an extension of time, ExxonMobil responded to the Notice by letter dated February 2, 2009 (Response). ExxonMobil contested the allegation of violation in Item 1 and provided information in explanation of its actions in Item 2. ExxonMobil did not request a hearing and therefore has waived its rights to one. FINDING OF VIOLATION The Notice alleged that ExxonMobil violated 49 C.F.R. Part 195 as follows: Item 1: The Notice alleged that ExxonMobil violated 49 CFR § 195.404(a)(3), which states: 1 Pipeline Safety Violation Report (Violation Report), (November 9, 2009) (on file with PHMSA), at 1.#

320095025_Final Order_04162013_text.pdf, page 32 § 195.404 Maps and records. (a) Each operator shall maintain current maps and records of its pipeline systems that include at least the following information: (1) . . . (3) The maximum operating pressure of each pipeline. The Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(3) by failing to maintain current records of its pipeline system showing the maximum operating pressure (MOP) of each pipeline. Specifically, the Notice alleged that ExxonMobil failed to maintain current records documenting the MOP of the company’s 16-inch pipeline located within the Terminal that feeds the Buckeye (West Shore) pipeline system. In its Response, ExxonMobil indicated that prior to this OPS inspection, the company had considered the 16-inch line to be “in-plant piping” and therefore not subject to regulation under Part 195. The company stated, however, that in light of the Notice it had reevaluated the line segment in question and attached copies of the documents that had previously established the MOP for the line. After reviewing the materials submitted with the Response, including ExxonMobil’s hydrotest records for the line, I agree that Respondent has satisfied the requirements of 49 C.F.R. § 195.404(a)(3). Accordingly, based upon a review of all the evidence, I hereby order that Item 1 be withdrawn. Item 2: The Notice alleged that ExxonMobil violated 49 C.F.R. § 195.404(b)(2), which states: § 195.404 Maps and records. (a) . . . (b) Each operator shall maintain for at least 3 years daily operating records that indicate – (1) . . . (2) Any emergency or abnormal operation to which the procedures under § 195.402 apply. The Notice alleged that Respondent violated 49 C.F.R. § 195.404(b)(2) by failing to maintain for at least three years daily operating records of its pipeline system indicating any emergency or abnormal operations. Specifically, the Notice alleged that ExxonMobil did not properly maintain operating records of all abnormal operations on the incoming and outgoing pipelines, breakout tanks and facility piping at the Terminal. It alleged that records were available for the period from November 2007 to December 2008, but not from December 2005 through October 2007. In its Response, ExxonMobil acknowledged that it had failed to maintain the necessary records throughout the required time period, explaining that “[u]nfortunately, during a clean-up effort at the terminal, the December 2005 through October 2007 records were discarded.” Section 195.404(b)(2) requires an operator not only to collect but also maintain its records of abnormal operations for at least three years. Accordingly, after reviewing all of the evidence in the record,#

320095025_Final Order_04162013_text.pdf, page 43 I find that ExxonMobil violated § 195.404(b)(2) by failing to maintain its abnormal operating records for a period of three years. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against ExxonMobil. ASSESSMENT OF PENALTY Under 49 U.S.C. § 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. In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s ability to pay the penalty and any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $30,000 for the violations cited above. Item 1: The Notice proposed a civil penalty of $15,000 for Respondent’s violation of § 195.404(a)(3), for failing to maintain current records of its pipeline system showing the MOP of its pipeline. As discussed above, the allegation of violation for Item 1 has been withdrawn. Accordingly, the civil penalty for Item 1 is not included in this Order. Item 2: The Notice proposed a civil penalty of $15,000 for Respondent’s violation of § 195.404(b)(2), for failing to maintain daily operating records of its pipeline system indicating emergencies and abnormal operations. As discussed above, I found that ExxonMobil failed to maintain certain records of abnormal operations for the required three-year period. The failure to maintain such records limits an operator’s ability to analyze abnormal operations. While pipeline integrity was not significantly impacted by the violation here, public safety could have been adversely affected if a pipeline incident had occurred. I find the nature, circumstances, and gravity of the violation support the proposed penalty. Accordingly, having reviewed the record and considered the assessment criteria, I assess ExxonMobil a civil penalty of $15,000 for the violation. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such 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-341), Federal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The Financial Operations Division telephone number is (405) 954-8893.#

320095025_Final Order_04162013_text.pdf, page 54 COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 195.404(a)(3). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. Since Item 1 has been withdrawn, the compliance terms for that item are not included in this Order. Under 49 C.F.R. § 190.215, Respondent has the right to submit a Petition for Reconsideration of this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA will accept petitions received no later than 20 days after receipt of service of the Final Order by the Respondent, provided they contain a brief statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of any civil penalty assessed but does not stay any other provisions of the Final Order, including any required corrective actions. If Respondent submits payment of the civil penalty, the Final Order becomes the final administrative decision and the right to petition for reconsideration is waived. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#

320095025_NOPV PCP PCO_11252009_text.pdf, page 1Official PDFNOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETURN RECEIPT REQUESTED November 25, 2009 Mr. Patrick Doolan, Vice President Southern Operations Manager ExxonMobil Pipeline Company 800 Bell Street PL-EMB-691H Houston, TX 77002 CPF 3-2009-5025 Dear Mr. Doolan: On November 21, 2008 and December 1-3, 2008, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your ExxonMobil Pipeline Company’s 30-inch diameter Mokena to Joliet refinery crude oil pipeline, the Lockport, IL refined products terminal, and pipeline records, and the field facilities in Patoka and Lockport, IL. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation(s) are:#

320095025_NOPV PCP PCO_11252009_text.pdf, page 21. §195.404 Maps and Records.§195.404 Maps and Records. (a) Each operator shall maintain current maps and records of its pipeline systems that include at least the following information; (3) The maximum operating pressure of each pipeline. ExxonMobil Pipeline Company did not maintain current maps and records that would define the maximum operating pressure of each pipeline system. The 16-inch diameter pipeline within the Lockport, IL Terminal that feeds the Buckeye (West Shore) system does not have any maximum operating pressure (MOP) determination documentation. According to ExxonMobil personnel, the section of the pipeline within the terminal fence has been treated as in-plant piping and, therefore, not subject to the scrutiny of MOP documentation. In addition, there were no pressure test records. 2. §195.404 Maps and Records. (b) Each operator shall maintain for at least 3 years daily operating records that indicate- (2) Any emergency or abnormal operation to which the procedures under §195.402 apply. ExxonMobil Pipeline Company did not maintain operating records of all abnormal operations on the incoming and outgoing pipelines, breakout tanks and facility piping at the Lockport, IL Terminal as required by the code. Abnormal operations documented on the event log recorder have not been kept for the three years as required by the code. Records were available from November 2007 to December 2008. Abnormal operation records from December 2005 through October 2007 were not maintained for the pipeline. Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for each violation for each day the violation persists up to a maximum of $1,000,000 for any related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of $30,000 as follows: Item number PENALTY 1 $15,000 2 $15,000 2#

320095025_NOPV PCP PCO_11252009_text.pdf, page 3Proposed Compliance Order With respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to ExxonMobil Pipeline Company. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice 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. In your correspondence on this matter, please refer to CPF 3-2009-5025 and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Ivan A. Huntoon Director, Central Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings 3#

320095025_NOPV PCP PCO_11252009_text.pdf, page 4PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to ExxonMobil Pipeline Company a Compliance Order incorporating the following remedial requirements to ensure the compliance of ExxonMobil Pipeline Company with the pipeline safety regulations: 1. In regard to Item Number 1 of the Notice, ExxonMobil Pipeline Company must provide PHMSA’s Central Region Office with the supporting documentation for the determination of the maximum operating pressure (MOP) of the 16-inch diameter pipeline that feeds the Buckeye (West Shore) system. The documentation is to include coverage of all applicable factors to the MOP determination required by §195.406 and including applicable pressure testing records. 2. Submit the results of the Proposed Compliance Order items above to the Region Director, Central Region, Office of Pipeline Safety, Pipeline and Hazardous Materials Safety Administration, 901 Locust Street, Suite 462, Kansas City, MO 64106. This is to be accomplished within 30 days following receipt of the Final Order. 3. ExxonMobil Pipeline Company shall maintain MOP determination documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Ivan A. Huntoon, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. Costs shall be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 4#