# ERGON TERMINALING, INC. — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320115011
- **title:** ERGON TERMINALING, INC. — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2011-08-31
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.505(b), 195.505(h), 195.589(c).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320115011.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320115011.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320115011
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320115011
**body:**

Notice of Probable Violation involving ERGON TERMINALING, INC.. PHMSA's enforcement data identifies the cited regulations as 195.505(b),  195.505(h),  195.589(c). The case was opened on 2011-08-31 and is reported as closed as of 2013-02-04. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320115011_Closure_02042013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_Closure_02042013.pdf

320115011_Closure_02042013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_Closure_02042013_text.pdf

320115011_FinalOrder_04162012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_FinalOrder_04162012.pdf

320115011_FinalOrder_04162012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_FinalOrder_04162012_text.pdf

320115011_NOPV PCO_08312011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_NOPV%20PCO_08312011.pdf

320115011_NOPV PCO_08312011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_NOPV%20PCO_08312011_text.pdf

320115011_Operator Response to Notice_10172011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320115011/320115011_Operator%20Response%20to%20Notice_10172011.pdf

320115011_FinalOrder_04162012_text.pdf

APR 16 2012
Mr. Robert Lampton
President
Ergon Trucking, Inc.
2829 Lakeland Drive
P.O. Box 1639
Jackson, MS 39232-7611
Re: CPF No. 3-2011-5011
Dear Mr. Lampton:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by Ergon Trucking, Inc., to comply with
the pipeline safety regulations. When the terms of the compliance order have been completed,
as determined by the Director, Central Region, this enforcement action will be closed.
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. Jake Neihaus, Senior Environmental Scientist, Ergon Trucking, Inc.
Mr. David Barrett, Director, Central Region, OPS
Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED [71791000164203505146]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Ergon Trucking, Inc., ) CPF No. 3-2011-5011
)
Respondent. )
____________________________________)
FINAL ORDER
On May 10-14, 2010, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
conducted an on-site pipeline safety inspection of the facilities and records of Ergon Trucking,
Inc. (Ergon or Respondent), in Magnolia, Ohio. Ergon operates a 38.75-mile, 8-inch pipeline
that transports crude oil from Magnolia, Ohio, to a refinery in Newell, West Virginia.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated August 31, 2011, a Notice of Probable Violation and Proposed Compliance Order
(Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance with
49 C.F.R. § 190.207, the Notice proposed finding that Ergon violated 49 C.F.R. §§ 195.505 and
195.589 and proposed ordering Respondent to take certain measures to correct the alleged
violations. The warning item required no further action, but advised the operator to take
appropriate corrective action or be subject to future potential enforcement action.
Ergon responded to the Notice by letter dated October 17, 2011 (Response). Respondent did not
contest the Notice and indicated forthcoming amendments to its Operator Qualification (OQ)
program.
FINDINGS OF VIOLATION
In its Response, Ergon did not contest the allegations in the Notice that it violated 49 C.F.R. Part
195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.505(b), which states:
§ 195.505 Qualification program.
Each operator shall have and follow a written qualification program.
The program shall include provisions to:
1 Pipeline Safety Violation Report (August 31, 2011) (Violation Report) at 2.



2
(a) . . .
(b) Ensure through evaluation that individuals performing covered
tasks are qualified;….2
The Notice alleged that Respondent violated 49 C.F.R. § 195.505(b) by failing to ensure through
evaluation that individuals performing covered tasks were qualified. Specifically, the Notice
alleged that Ergon personnel removed internal inspection devices, generally known as “pigs,”
from the pig trap at the Newell refinery. Upon the request of a PHMSA inspector, Respondent
could provide no documentation either that refinery personnel had been qualified or that
qualified personnel had directed and observed the performance of covered task “E2 - Launching
and Receiving Pigs,” as required by Ergon’s own OQ program. The company’s operations
supervisor acknowledged that unqualified refinery employees regularly unloaded pigs when
Ergon employees were unavailable.
3
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.505(b) by failing to ensure
through evaluation that personnel performing covered tasks were qualified.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.505, as quoted above, by
failing to ensure through evaluation that individuals performing covered tasks were qualified.
Specifically, the Notice alleged that Ergon was unable to demonstrate that personnel performing
the covered task “Monitoring Pipeline Pressure” had been properly evaluated and were able to
recognize and react to abnormal operating conditions (AOCs). A PHMSA inspector noted that
Respondent’s OQ program had no procedures, guidance, or training for the identification of
several AOCs associated with pressure monitoring, volume determination, shutdown situations
and leak detection.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.505(b) by failing to ensure
through evaluation that Ergon personnel performing the covered task “Monitoring Pipeline
Pressure” were qualified.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.505(h), which states:
§ 195.505 Qualification program.
Each operator shall have and follow a written qualification program.
The program shall include provisions to:
(a) . . .
(h) After December 16, 2004, provide training, as appropriate, to
ensure that individuals performing covered tasks have the necessary
knowledge and skills to perform the tasks in a manner that ensures the safe
operation of pipeline facilities;….
2 Under 49 C.F.R. § 195.503, “Qualified means that an individual has been evaluated and can: (a) Perform assigned
covered tasks and (b) Recognize and react to abnormal operating conditions.”
3 Violation Report at 2.



3
The Notice alleged that Respondent violated 49 C.F.R. § 195.505(h) by failing to have and
follow, after December 16, 2004, a written qualification program with provisions to provide
training, as appropriate, to ensure that individuals performing covered tasks had the necessary
knowledge and skills to perform covered tasks in a manner ensuring the safe operation of the
pipeline. Specifically, the Notice alleged that Ergon had failed to provide training for any of the
23 covered tasks in its OQ program. While Respondent’s written OQ plan provided for
appropriate training, employees were not trained in such covered tasks as startup, shutdown,
operation, or monitoring of the pipeline.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.505(h) by failing to provide
training to ensure that individuals performing covered tasks had the necessary knowledge and
skills to perform covered tasks in a manner ensuring the safe operation of the pipeline.
Item 5: The Notice alleged that Respondent violated 49 C.F.R. § 195.589(c), which states:
§ 195.589 What corrosion control information do I have to maintain?
(a) . . .
(c) You must maintain a record of each analysis, check, demonstration,
examination, inspection, investigation, review, survey, and test required
by this subpart in sufficient detail to demonstrate the adequacy of
corrosion control measures or that corrosion requiring control measures
does not exist. You must retain these records for at least 5 years, except
that records related to §§ 195.569, 195.573(a) and (b), and 195.579(b)(3)
and (c) must be retained for as long as the pipeline remains in service.
The Notice alleged that Respondent violated 49 C.F.R. § 195.589(c) by failing to maintain a
record of each analysis, check, demonstration, examination, inspection, investigation, review,
survey, and test required by [Subpart H – Corrosion Control] in sufficient detail to demonstrate
the adequacy of corrosion control measures or that corrosion requiring control measures did not
exist. Specifically, the Notice alleged that Ergon failed to document atmospheric corrosion
inspections for its above-ground piping in the 39 months prior to PHMSA’s May 14, 2010
inspection.
4
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.589(c) by failing to maintain
documentation of atmospheric corrosion inspections for the 39-month period preceding
PHMSA’s inspection.
The Notice proposed a compliance order with respect to Items 1,2, 3 and 5 in the Notice for
violations of 49 C.F.R. §§ 195.505 and 195.589. 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
COMPLIANCE ORDER
4 Above-ground piping exists at the pump station, Mohawk Lake Main Line Block Valve, and the termination of the
pipeline in Newell, West Virginia. No atmospheric corrosion inspection report was available for any of these
locations.



4
required to comply with the applicable safety standards established under chapter 601. Pursuant
to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take
the following actions to ensure compliance with the pipeline safety regulations applicable to its
operations:
1. With respect to the violation of § 195.505(b) (Item 1), Respondent must ensure
that qualified refinery personnel conduct the covered task “E2- Launching and
Receiving Pigs (E2)” or ensure that refinery personnel are directed and observed by a
qualified individual. Ergon must either: (1) complete and maintain documentation for
the qualification of refinery personnel performing this task; or (2) develop a
procedure addressing the use of qualified personnel to perform, direct, and observe
refinery personnel performing covered Task E2. Respondent must either submit the
qualification records of all refinery personnel qualified to perform Task E2 or the
procedure addressing the proposed management of Task E2 within 30 days of receipt
of the Final Order, to the Director.
2. With respect to the violation of § 195.505(b) (Item 2), Respondent must develop a
list of potential AOCs for the Ergon pipeline and corresponding action items,
following identification of such conditions. Respondent must evaluate and qualify all
operating personnel monitoring the Ergon pipeline and submit this documentation to
the Director within 60 days of receipt of the Final Order.
3. With respect to the violation of § 195.505(h) (Item 3), Respondent must provide
training to ensure that individuals conducting startup, shutdown, operation, and
monitoring of the pipeline understand the actions required once AOCs or abnormal
operational data are discovered. Respondent must submit a proposed training
program for individuals performing startup, shutdown, operation, and monitoring of
the pipeline for approval of the Director within 30 days of the receipt of the Final
Order.
Within 30 days of receiving the Director’s approval, the Respondent must complete
all training and submit supporting documentation to the Director. Respondent must
also review its OQ program and list of covered tasks to determine the additional
training required to ensure that individuals performing covered tasks possess the
requisite training for safe operation of Ergon’s pipeline facilities. A proposed
training program must be submitted for the Director’s approval within 30 days of
receipt of the Final Order. Within 60 days of receiving the Director’s approval, all
company personnel must be trained and supporting documentation submitted to the
Director.
4. With respect to the violation of § 195.589(c) (Item 5), Respondent must provide
documentation that it has inspected all above-ground piping, including at the pump
station, the Mohawk Lake Main Line Block Valve and the termination of the pipeline.
Documentation of the completed atmospheric corrosions inspections must be
submitted to the Director within 30 days of the receipt of the Final Order.
5. It is requested that Ergon maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to the Director.



5
Costs shall be reported in two categories: 1) total costs associated with
preparation/revision of plans, procedures, studies and analyses; and 2) total cost
associated with replacements, additions and other changes to pipeline infrastructure.
The Director may grant an extension of time to comply with any of the required items, upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $100,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
WARNING ITEM
With respect to Item 4, the Notice alleged a probable violation of Part 195 but did not propose a
civil penalty or compliance order for this item. Therefore, this is considered a warning item.
The warning was for:
49 C.F.R. § 195.589 (Item 4) - Respondent’s alleged failure to maintain records
required to demonstrate the adequacy of corrosion control measures or that
corrosion requiring control measures do not exist.
If OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject
to future enforcement action.
Under 49 C.F.R. § 190.215, Respondent has a 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 this 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. Unless the Associate Administrator, upon request, grants a
stay, 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

320115011_Closure_02042013_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
February 4, 2013
Mr. Russ Maroney
Vice President Operations
Ergon Trucking, Inc.
2829 Lakeland Drive
P.O. Box 1639
Jackson, MS 39232-7611
CPF 3-2011-5011
Dear Mr. Maroney:
On April 16, 2012, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Ergon Trucking, Inc. a Final Order in the above-referenced case. This Order included a
Compliance Order. Based on our review of the documentation you provided, it has been
determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
David Barrett
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
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