{"operation":"document","citation":"CPF 320176012","title":"CALIBER NORTH DAKOTA LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-09-29","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.563(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176012","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320176012","body":"Notice of Probable Violation involving CALIBER NORTH DAKOTA LLC. PHMSA's enforcement data identifies the cited regulation as 195.563(a). The case was opened on 2017-09-29 and is reported as closed as of 2018-05-10. Proposed civil penalty: $22,400. Assessed civil penalty: $22,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320176012_Final Order_05102018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_Final%20Order_05102018.pdf\n\n320176012_Final Order_05102018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_Final%20Order_05102018_text.pdf\n\n320176012_NOPV PCP_09292017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_NOPV%20PCP_09292017.pdf\n\n320176012_NOPV PCP_09292017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_NOPV%20PCP_09292017_text.pdf\n\n320176012_Operator Response To Notice_11012017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_Operator%20Response%20To%20Notice_11012017.pdf\n\n320176012_Final Order_05102018_text.pdf\n\nMay 10, 2018\nMr. David Scobel\nChief Executive Officer\nCaliber Midstream Partners, LP\n1200 17th Street, Suite 2100\nDenver, Colorado 80202\nRe: CPF No. 3-2017-6012\nDear Mr. Scobel:\nEnclosed please find the Final Order issued in the above-referenced case. It makes one finding\nof violation and assesses a civil penalty of $22,400 against Caliber North Dakota, LLC, a\nsubsidiary of Caliber Midstream Partners, LP. This is to acknowledge receipt of payment of the\nfull penalty amount, by wire transfer, dated November 3, 2017. This enforcement action is now\nclosed. Service of the Final Order by certified mail is effective upon the date of mailing, as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Allan C. Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA\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________________________________________________\nIn the Matter of )\n)\n)\nCaliber North Dakota, LLC, )\na subsidiary of Caliber Midstream Partners, LP, )\nRespondent. )\n________________________________________________)\n) CPF No. 3-2017-6012\nFINAL ORDER\nFrom April 10 through April 12, 2016, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of Caliber North Dakota, LLC’s (Caliber)\nHay Butte pipeline system in Alexander, North Dakota. Caliber is a subsidiary of Caliber\nMidstream Partners, LP (Caliber Midstream) which operates crude-oil and natural-gas gathering\nand processing facilities in the Bakken and Three Forks shale oil fields of North Dakota.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Caliber, by\nletter dated September 29, 2017, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Caliber had\nviolated 49 C.F.R. § 195.563 and assessing a civil penalty of $22,400 for the alleged violation.\nCaliber Midstream, on behalf of Caliber (collectively, Respondent), responded to the Notice by\nletter dated November 1, 2017 (Response). The company did not contest the allegation of\nviolation and paid the proposed civil penalty of $22,400. In accordance with 49 C.F.R.\n§ 190.208(a)(1), such payment authorizes the Associate Administrator to make a finding of\nviolation and to issue this final order without further proceedings.\nFINDING OF VIOLATION\nIn its Response, Respondent did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Caliber Midstream Partners, LP, website, available at http://www.calibermidstream.com/about (last accessed\nDecember 18, 2017).\n\n\n\nCPF 3-2017-6012\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.563(a), which states:\n§ 195.563 Which pipelines must have cathodic protection?\n(a) Each buried or submerged pipeline that is constructed, relocated,\nreplaced, or otherwise changed after the applicable date in § 195.401(c)\nmust have cathodic protection. The cathodic protection must be in operation\nnot later than 1 year after the pipeline is constructed, relocated, replaced, or\notherwise changed, as applicable.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.563(a) by failing to have a cathodic\nprotection system in operation no later than one year after the construction of its pipeline.\nSpecifically, the Notice alleged that Caliber’s pipeline system began operations in August 2014,\nbut Respondent failed to operate the cathodic protection system until October 2015.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.563(a) by failing to have a\ncathodic protection system in operation no later than one year after the construction of its\npipeline.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.2\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; and any effect that the penalty may have on its ability to continue\ndoing business; and the good faith of Respondent in attempting to comply with the pipeline\nsafety regulations. In addition, I may consider the economic benefit gained from the violation\nwithout any reduction because of subsequent damages, and such other matters as justice may\nrequire. The Notice proposed a total civil penalty of $22,400 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $22,400 for Respondent’s violation of 49 C.F.R.\n§ 195.563(a), for failing to have a cathodic protection system in operation no later than one year\nafter the construction of its pipeline. Caliber neither contested the allegation nor presented any\nevidence or argument justifying a reduction in or elimination of the proposed penalty.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\n2 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum\nCivil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\n\n\n\nCPF 3-2017-6012\nPage 3\nRespondent a civil penalty of $22,400 for violation of 49 C.F.R. § 195.563(a). Caliber paid the\nfull penalty amount by wire transfer on November 3, 2017.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nMay 10, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":7485}