{"operation":"document","citation":"CPF 320095025","title":"MOBIL  PIPE  LINE COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2009-11-25","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.404(a)(3), 195.404(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320095025.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320095025.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320095025","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320095025","body":"Notice of Probable Violation involving MOBIL  PIPE  LINE COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.404(a)(3),  195.404(b)(2). The case was opened on 2009-11-25 and is reported as closed as of 2013-05-10. Proposed civil penalty: $30,000. Assessed civil penalty: $15,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320095025_Final Order_04162013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095025/320095025_Final%20Order_04162013.pdf\n\n320095025_Final Order_04162013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095025/320095025_Final%20Order_04162013_text.pdf\n\n320095025_NOPV PCP PCO_11252009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095025/320095025_NOPV%20PCP%20PCO_11252009.pdf\n\n320095025_NOPV PCP PCO_11252009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095025/320095025_NOPV%20PCP%20PCO_11252009_text.pdf\n\n320095025_Operator Response_02022010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320095025/320095025_Operator%20Response_02022010.pdf\n\n320095025_Final Order_04162013_text.pdf\n\nAPRIL 16, 2013\nMr. Gary W. Pruessing\nPresident\nExxonMobil Pipeline Company\n800 Bell Street, Room 641D\nHouston, Texas 77002\nRe: CPF No. 3-2009-5025\nDear Mr. Pruessing:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws one of\nthe allegations of violation, makes one other finding of violation, and assesses a reduced civil\npenalty of $15,000. The penalty payment terms are set forth in the Final Order. This\nenforcement action closes automatically upon receipt of payment. Service of the Final Order by\ncertified mail is deemed effective upon the date of mailing, or as otherwise provided under\n49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. David Barrett, Director, Central Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nMr. John Y. Dupre, Northern Operations V.P. Manager, ExxonMobil Pipeline Company,\n3225 Gallows Road, Room 5B2134, Fairfax VA 22037\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nExxonMobil Pipeline Company, ) CPF 3-2009-5025\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween November 25 and December 3, 2009, pursuant to 49 U.S.C. § 60117, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), conducted a pipeline safety inspection of the pipeline facilities and records of\nExxonMobil Pipeline Company (ExxonMobil or Respondent), at the company’s Lockport\nTerminal in Lockport, Illinois (Terminal), and various other locations in Illinois. ExxonMobil is\na major pipeline operator in the United States, with more than 10,796 miles of pipeline in\noperation.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated November 25, 2009, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that ExxonMobil had violated 49 C.F.R. § 195.404 and assessing a civil penalty\nof $30,000 for the alleged violations. The Notice also proposed ordering Respondent to take\ncertain measures to correct the alleged violations.\nAfter requesting and receiving an extension of time, ExxonMobil responded to the Notice by\nletter dated February 2, 2009 (Response). ExxonMobil contested the allegation of violation in\nItem 1 and provided information in explanation of its actions in Item 2. ExxonMobil did not\nrequest a hearing and therefore has waived its rights to one.\nFINDING OF VIOLATION\nThe Notice alleged that ExxonMobil violated 49 C.F.R. Part 195 as follows:\nItem 1: The Notice alleged that ExxonMobil violated 49 CFR § 195.404(a)(3), which states:\n1 Pipeline Safety Violation Report (Violation Report), (November 9, 2009) (on file with PHMSA), at 1.\n\n\n\n2\n§ 195.404 Maps and records.\n(a) Each operator shall maintain current maps and records of its\npipeline systems that include at least the following information:\n(1) . . .\n(3) The maximum operating pressure of each pipeline.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.404(a)(3) by failing to maintain\ncurrent records of its pipeline system showing the maximum operating pressure (MOP) of each\npipeline. Specifically, the Notice alleged that ExxonMobil failed to maintain current records\ndocumenting the MOP of the company’s 16-inch pipeline located within the Terminal that feeds\nthe Buckeye (West Shore) pipeline system.\nIn its Response, ExxonMobil indicated that prior to this OPS inspection, the company had\nconsidered the 16-inch line to be “in-plant piping” and therefore not subject to regulation under\nPart 195. The company stated, however, that in light of the Notice it had reevaluated the line\nsegment in question and attached copies of the documents that had previously established the\nMOP for the line.\nAfter reviewing the materials submitted with the Response, including ExxonMobil’s hydrotest\nrecords for the line, I agree that Respondent has satisfied the requirements of\n49 C.F.R. § 195.404(a)(3). Accordingly, based upon a review of all the evidence, I hereby order\nthat Item 1 be withdrawn.\nItem 2: The Notice alleged that ExxonMobil violated 49 C.F.R. § 195.404(b)(2), which states:\n§ 195.404 Maps and records.\n(a) . . .\n(b) Each operator shall maintain for at least 3 years daily operating\nrecords that indicate –\n(1) . . .\n(2) Any emergency or abnormal operation to which the procedures\nunder § 195.402 apply.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.404(b)(2) by failing to maintain for\nat least three years daily operating records of its pipeline system indicating any emergency or\nabnormal operations. Specifically, the Notice alleged that ExxonMobil did not properly\nmaintain operating records of all abnormal operations on the incoming and outgoing pipelines,\nbreakout tanks and facility piping at the Terminal. It alleged that records were available for the\nperiod from November 2007 to December 2008, but not from December 2005 through October\n2007.\nIn its Response, ExxonMobil acknowledged that it had failed to maintain the necessary records\nthroughout the required time period, explaining that “[u]nfortunately, during a clean-up effort at\nthe terminal, the December 2005 through October 2007 records were discarded.” Section\n195.404(b)(2) requires an operator not only to collect but also maintain its records of abnormal\noperations for at least three years. Accordingly, after reviewing all of the evidence in the record,\n\n\n\n3\nI find that ExxonMobil violated § 195.404(b)(2) by failing to maintain its abnormal operating\nrecords for a period of three years.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against ExxonMobil.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 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. In determining the amount of a civil penalty under 49 U.S.C. § 60122 and\n49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and\ngravity of the violation, including adverse impact on the environment; the degree of\nRespondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s ability to\npay the penalty and any effect that the penalty may have on its ability to continue doing business;\nand the good faith of Respondent in attempting to comply with the pipeline safety regulations.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $30,000 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $15,000 for Respondent’s violation of\n§ 195.404(a)(3), for failing to maintain current records of its pipeline system showing the MOP\nof its pipeline. As discussed above, the allegation of violation for Item 1 has been withdrawn.\nAccordingly, the civil penalty for Item 1 is not included in this Order.\nItem 2: The Notice proposed a civil penalty of $15,000 for Respondent’s violation of\n§ 195.404(b)(2), for failing to maintain daily operating records of its pipeline system indicating\nemergencies and abnormal operations. As discussed above, I found that ExxonMobil failed to\nmaintain certain records of abnormal operations for the required three-year period. The failure to\nmaintain such records limits an operator’s ability to analyze abnormal operations. While\npipeline integrity was not significantly impacted by the violation here, public safety could have\nbeen adversely affected if a pipeline incident had occurred. I find the nature, circumstances, and\ngravity of the violation support the proposed penalty. Accordingly, having reviewed the record\nand considered the assessment criteria, I assess ExxonMobil a civil penalty of $15,000 for the\nviolation.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8893.\n\n\n\n4\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 195.404(a)(3). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Since Item 1 has\nbeen withdrawn, the compliance terms for that item are not included in this Order.\nUnder 49 C.F.R. § 190.215, Respondent has the right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of the Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of\nany civil penalty assessed but does not stay any other provisions of the Final Order, including\nany required corrective actions. If Respondent submits payment of the civil penalty, the Final\nOrder becomes the final administrative decision and the right to petition for reconsideration is\nwaived.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320095025_NOPV PCP PCO_11252009_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 25, 2009\nMr. Patrick Doolan, Vice President\nSouthern Operations Manager\nExxonMobil Pipeline Company\n800 Bell Street\nPL-EMB-691H\nHouston, TX 77002\nCPF 3-2009-5025\nDear Mr. Doolan:\nOn November 21, 2008 and December 1-3, 2008, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United\nStates Code inspected your ExxonMobil Pipeline Company’s 30-inch diameter Mokena to\nJoliet refinery crude oil pipeline, the Lockport, IL refined products terminal, and pipeline\nrecords, and the field facilities in Patoka and Lockport, IL.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violation(s) are:\n\n\n\n1. §195.404 Maps and Records.§195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline systems\nthat include at least the following information;\n(3) The maximum operating pressure of each pipeline.\nExxonMobil Pipeline Company did not maintain current maps and records that would define\nthe maximum operating pressure of each pipeline system. The 16-inch diameter pipeline\nwithin the Lockport, IL Terminal that feeds the Buckeye (West Shore) system does not have\nany maximum operating pressure (MOP) determination documentation. According to\nExxonMobil personnel, the section of the pipeline within the terminal fence has been treated as\nin-plant piping and, therefore, not subject to the scrutiny of MOP documentation. In addition,\nthere were no pressure test records.\n2. §195.404 Maps and Records.\n(b) Each operator shall maintain for at least 3 years daily operating records that\nindicate-\n(2) Any emergency or abnormal operation to which the procedures under\n§195.402 apply.\nExxonMobil Pipeline Company did not maintain operating records of all abnormal operations\non the incoming and outgoing pipelines, breakout tanks and facility piping at the Lockport, IL\nTerminal as required by the code. Abnormal operations documented on the event log recorder\nhave not been kept for the three years as required by the code. Records were available from\nNovember 2007 to December 2008. Abnormal operation records from December 2005\nthrough October 2007 were not maintained for the pipeline.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000\nfor any related series of violations. The Compliance Officer has reviewed the circumstances\nand supporting documentation involved in the above probable violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $30,000 as follows:\nItem number PENALTY\n1 $15,000\n2 $15,000\n2\n\n\n\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to ExxonMobil Pipeline\nCompany. Please refer to the Proposed Compliance Order, which is enclosed and made a part\nof this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Compliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond\nwithin 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find\nfacts as alleged in this Notice without further notice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 3-2009-5025 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nIvan A. Huntoon\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n3\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to ExxonMobil Pipeline Company a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of\nExxonMobil Pipeline Company with the pipeline safety regulations:\n1. In regard to Item Number 1 of the Notice, ExxonMobil Pipeline Company must\nprovide PHMSA’s Central Region Office with the supporting documentation\nfor the determination of the maximum operating pressure (MOP) of the 16-inch\ndiameter pipeline that feeds the Buckeye (West Shore) system. The\ndocumentation is to include coverage of all applicable factors to the MOP\ndetermination required by §195.406 and including applicable pressure testing\nrecords.\n2. Submit the results of the Proposed Compliance Order items above to the Region\nDirector, Central Region, Office of Pipeline Safety, Pipeline and Hazardous\nMaterials Safety Administration, 901 Locust Street, Suite 462, Kansas City, MO\n64106. This is to be accomplished within 30 days following receipt of the Final\nOrder.\n3. ExxonMobil Pipeline Company shall maintain MOP determination\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Ivan A. Huntoon, Director, Central\nRegion, Pipeline and Hazardous Materials Safety Administration. Costs shall\nbe reported in two categories: 1) total cost associated with preparation/revision\nof plans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n4","truncated":false,"body_characters":18107}