# CALIBER NORTH DAKOTA LLC — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.563(a).
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- **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.

Official case documents:

320176012_Final Order_05102018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_Final%20Order_05102018.pdf

320176012_Final Order_05102018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_Final%20Order_05102018_text.pdf

320176012_NOPV PCP_09292017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_NOPV%20PCP_09292017.pdf

320176012_NOPV PCP_09292017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_NOPV%20PCP_09292017_text.pdf

320176012_Operator Response To Notice_11012017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176012/320176012_Operator%20Response%20To%20Notice_11012017.pdf

320176012_Final Order_05102018_text.pdf

May 10, 2018
Mr. David Scobel
Chief Executive Officer
Caliber Midstream Partners, LP
1200 17th Street, Suite 2100
Denver, Colorado 80202
Re: CPF No. 3-2017-6012
Dear Mr. Scobel:
Enclosed please find the Final Order issued in the above-referenced case. It makes one finding
of violation and assesses a civil penalty of $22,400 against Caliber North Dakota, LLC, a
subsidiary of Caliber Midstream Partners, LP. This is to acknowledge receipt of payment of the
full penalty amount, by wire transfer, dated November 3, 2017. This enforcement action is now
closed. Service of the Final Order by certified mail is effective upon the date of mailing, as
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Allan C. Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
________________________________________________
In the Matter of )
)
)
Caliber North Dakota, LLC, )
a subsidiary of Caliber Midstream Partners, LP, )
Respondent. )
________________________________________________)
) CPF No. 3-2017-6012
FINAL ORDER
From April 10 through April 12, 2016, 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 Caliber North Dakota, LLC’s (Caliber)
Hay Butte pipeline system in Alexander, North Dakota. Caliber is a subsidiary of Caliber
Midstream Partners, LP (Caliber Midstream) which operates crude-oil and natural-gas gathering
and processing facilities in the Bakken and Three Forks shale oil fields of North Dakota.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Caliber, by
letter dated September 29, 2017, a Notice of Probable Violation and Proposed Civil Penalty
(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Caliber had
violated 49 C.F.R. § 195.563 and assessing a civil penalty of $22,400 for the alleged violation.
Caliber Midstream, on behalf of Caliber (collectively, Respondent), responded to the Notice by
letter dated November 1, 2017 (Response). The company did not contest the allegation of
violation and paid the proposed civil penalty of $22,400. In accordance with 49 C.F.R.
§ 190.208(a)(1), such payment authorizes the Associate Administrator to make a finding of
violation and to issue this final order without further proceedings.
FINDING OF VIOLATION
In its Response, Respondent did not contest the allegation in the Notice that it violated 49 C.F.R.
Part 195, as follows:
1 Caliber Midstream Partners, LP, website, available at http://www.calibermidstream.com/about (last accessed
December 18, 2017).



CPF 3-2017-6012
Page 2
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.563(a), which states:
§ 195.563 Which pipelines must have cathodic protection?
(a) Each buried or submerged pipeline that is constructed, relocated,
replaced, or otherwise changed after the applicable date in § 195.401(c)
must have cathodic protection. The cathodic protection must be in operation
not later than 1 year after the pipeline is constructed, relocated, replaced, or
otherwise changed, as applicable.
The Notice alleged that Respondent violated 49 C.F.R. § 195.563(a) by failing to have a cathodic
protection system in operation no later than one year after the construction of its pipeline.
Specifically, the Notice alleged that Caliber’s pipeline system began operations in August 2014,
but Respondent failed to operate the cathodic protection system until October 2015.
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. § 195.563(a) by failing to have a
cathodic protection system in operation no later than one year after the construction of its
pipeline.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.2
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; 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 $22,400 for the violation cited above.
Item 1: The Notice proposed a civil penalty of $22,400 for Respondent’s violation of 49 C.F.R.
§ 195.563(a), for failing to have a cathodic protection system in operation no later than one year
after the construction of its pipeline. Caliber neither contested the allegation nor presented any
evidence or argument justifying a reduction in or elimination of the proposed penalty.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
2 These amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum
Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).



CPF 3-2017-6012
Page 3
Respondent a civil penalty of $22,400 for violation of 49 C.F.R. § 195.563(a). Caliber paid the
full penalty amount by wire transfer on November 3, 2017.
The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
May 10, 2018
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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