{"operation":"document","citation":"CPF 320185005","title":"VANTAGE PIPELINE US LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-07-03","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.428(a), 195.440(a), 195.446(h)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185005.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185005.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185005","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320185005","body":"Notice of Probable Violation involving VANTAGE PIPELINE US LP. PHMSA's enforcement data identifies the cited regulations as 195.428(a),  195.440(a),  195.446(h)(1). The case was opened on 2018-07-03 and is reported as closed as of 2019-05-31. Proposed civil penalty: $77,700. Assessed civil penalty: $77,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320185005_Final Order_05162019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_Final%20Order_05162019.pdf\n\n320185005_Final Order_05162019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_Final%20Order_05162019_text.pdf\n\n320185005_NOPV PCP_07032018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_NOPV%20PCP_07032018.pdf\n\n320185005_NOPV PCP_07032018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_NOPV%20PCP_07032018_text.pdf\n\n320185005_Operator Response to Notice_08022018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_Operator%20Response%20to%20Notice_08022018.pdf\n\n320185005_Final Order_05162019_text.pdf\n\nMay 16, 2019\nMr. Todd Karran\nPresident and Chief Executive Officer\nNova Chemicals Inc. (d/b/a Vantage Pipeline)\nP.O. Box 2518\nCalgary, Alberta, T2P 5C6\nRe: CPF No. 3-2018-5005\nDear Mr. Karran:\nEnclosed please find the Final Order issued in the above-referenced case to Nova Chemicals,\nInc., regarding the Vantage Pipeline. It makes findings of violation and assesses a civil penalty\nof $77,700. This is to acknowledge receipt of partial payment, by wire transfer dated August 3,\n2018, in the amount of $77,690. There is a remaining balance of $10.00 that is still due. Remit\nthe remaining balance in accordance with the payment instructions set forth in the Final Order.\nThis enforcement action closes automatically upon receipt of this remaining payment. Service of\nthe Final Order by certified mail is effective upon the date of mailing as provided under 49\nC.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\nMr. William C. Mitchell, General Counsel and Assistant Corporate Secretary,\nNova Chemicals Inc. (via electronic transmission to Bill.Mitchell@novachem.com)\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 )\nNova Chemicals Inc., ) CPF No. 3-2018-5005\nd/b/a Vantage Pipeline, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween October 10 and November 5, 2016, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Nova\nChemicals Inc., d/b/a Vantage Pipeline (Nova or Respondent), in Joffre, Alberta, Canada, and\nNorth Dakota. Nova operates Vantage Pipeline, which is an approximately 80-mile, 10-inch and\n8-inch, liquefied petroleum gas and natural gas liquids pipeline, running from the Hess plant in\nWilliams County, North Dakota, to the United States and Canadian border.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated July 3, 2018, a Notice of Probable Violation and Proposed Civil Penalty (Notice).\nIn accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Nova had violated 49\nC.F.R. §§ 195.428, 195.440 and 195.446 and proposed assessing a civil penalty of $77,700 for\nthe alleged violations.\nNova responded to the Notice by letter dated August 2, 2018 (Response). The company did not\ncontest the allegations of violation and made a partial payment in the amount of $77,690 of the\nproposed civil penalty of $77,700.2 In accordance with 49 C.F.R. § 190.208(a)(1), such payment\nauthorizes the Associate Administrator to make findings of violation and to issue this final order\nwithout further proceedings.\n1 Pipeline Violation Safety Report (Violation Report), (July 3, 2018) (on file with PHMSA), at 1.\n2 In its Response, Nova stated that it had “made a wire transfer in the amount of $77,700 through the Federal\nReserve Communications System to the account of the U.S. Treasury.” Response, at 1. The wire transfer voucher\nreceived by PHMSA, dated August 3, 2018, identified the amount received by the U.S. Treasury as $77,690. The\n$10.00 deficiency was apparently due to Nova’s bank assessing a $10 transfer fee.\n\n\n\nCPF No. 3-2018-5005\nPage 2\nFINDINGS OF VIOLATION\nIn its Response, Nova did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a), which states:\n§ 195.428 Overpressure safety devices and overfill protection systems.\n(a) Except as provided in paragraph (b) of this section, each operator\nshall, at intervals not exceeding 15 months, but at least once each calendar\nyear, or in the case of pipelines used to carry highly volatile liquids, at\nintervals not to exceed 7½ months, but at least twice each calendar year,\ninspect and test each pressure limiting device, relief valve, pressure\nregulator, or other item of pressure control equipment to determine that it is\nfunctioning properly, is in good mechanical condition, and is adequate from\nthe standpoint of capacity and reliability of operation for the service in\nwhich it is used.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test\nthe overpressure protection devices on the Vantage Pipeline, which carries highly volatile\nliquids, at intervals not to exceed 7½ months but at least twice each calendar year. Specifically,\nthe Notice alleged that the pipeline’s pressure-control devices (Honeywell STG 974-EIA) on its\ncontrol valves were not calibrated or tested during calendar years 2014, 2015, and 2016.\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. § 195.428(a) by failing to inspect and\ntest the overpressure protection devices on the Vantage Pipeline, which carries highly volatile\nliquids, at intervals not to exceed 7½ months but at least twice each calendar year.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:\n§ 195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written\ncontinuing public education program that follows the guidance provided in\nthe American Petroleum Institute’s (API) Recommended Practice (RP)\n1162 (incorporated by reference, see § 195.3).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to develop and\nimplement a written continuing education program that follows the guidance provided by API\nRP 1162. Specifically, the Notice alleged that Nova did not have a public awareness program\nuntil 2016, even though the Vantage Pipeline has been in operation and transporting product\nsince 2014.\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. § 195.440(a) by failing to develop and\nimplement a written continuing education program that follows the guidance provided by API\n\n\n\nCPF No. 3-2018-5005\nPage 3\nRP 1162 until 2016, even though the Vantage Pipeline has been in operation and transporting\nproduct since 2014.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.446(h)(1), which states:\n§ 195.446 Control room management.\n(a) . . . .\n(h) Training. Each operator must establish a controller training\nprogram and review the training program content to identify potential\nimprovements at least once each calendar year, but at intervals not to exceed\n15 months. An operator’s program must provide for training each controller\nto carry out the roles and responsibilities defined by the operator. In\naddition, the training program must include the following elements:\n(1) Responding to abnormal operating conditions likely to occur\nsimultaneously or in sequence; . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.446(h)(1) by failing to train its\ncontrollers in responding to abnormal operating conditions likely to occur simultaneously or in\nsequence. Specifically, the Notice alleged that Nova failed, until August 2017, to identify the\nabnormal operating conditions likely to occur simultaneously or in sequence in its control room\nand to train their controllers to respond to such conditions, despite the Vantage Pipeline having\nbeen in operation since 2014.\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. § 195.446(h)(1) by failing to train its\ncontrollers in responding to abnormal operating conditions until 2017, despite having operated\nthe Vantage Pipeline since 2014.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken 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.3 In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,\n83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).\n\n\n\nCPF No. 3-2018-5005\nPage 4\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $77,700 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $40,300 for Respondent’s violation of 49 C.F.R.\n§ 195.428(a), for failing to inspect and test the overpressure protection devices on the Vantage\nPipeline, which carries highly volatile liquids, at intervals not to exceed 7½ months but at least\ntwice each calendar year. Nova neither contested the allegation nor presented any evidence or\nargument justifying a reduction in or elimination of the proposed penalty. Accordingly, having\nreviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of\n$40,300 for violation of 49 C.F.R. § 195.428(a).\nItem 2: The Notice proposed a civil penalty of $18,700 for Respondent’s violation of 49 C.F.R.\n§ 195.440(a), for failing to develop and implement a written continuing education program that\nfollows the guidance provided by API RP 1162. Nova neither contested the allegation nor\npresented any evidence or argument justifying a reduction in or elimination of the proposed\npenalty. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $18,700 for violation of 49 C.F.R. § 195.440(a).\nItem 3: The Notice proposed a civil penalty of $18,700 for Respondent’s violation of 49 C.F.R.\n§ 195.446(h)(1), for failing to train its controllers in responding to abnormal operating\nconditions. Nova neither contested the allegation nor presented any evidence or argument\njustifying a reduction in or elimination of the proposed penalty. Accordingly, having reviewed\nthe record and considered the assessment criteria, I assess Respondent a civil penalty of $18,700\nfor violation of 49 C.F.R. § 195.446(h)(1).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $77,700. Nova partially paid this\npenalty by wire transfer dated August 3, 2018, in the amount of $77,690. Therefore, a balance of\n$10.00 remains outstanding.\nPayment of the civil penalty must be made within 20 days of service of this Final Order.\nPayment may be made by sending a certified check or money order (containing the CPF Number\nfor this case), made payable to “U.S. Department of Transportation,” to the Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, Financial Operations Division (AMK-\n325), 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. Federal regulations (49 C.F.R.\n§ 89.21(b)(3)) also permit payment to be made by wire transfer through the Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions\nare contained in the enclosure. Questions concerning wire transfers should be directed to:\nFinancial Operations Division (AMK-325), Federal Aviation Administration, Mike Monroney\nAeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial\nOperations Division telephone number is (405) 954-8845.\nFailure to pay the $10 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those\nsame authorities, a late penalty charge of six percent (6%) per annum will be charged if payment\nis not made within 110 days of service. Furthermore, failure to pay the civil penalty may result\n\n\n\nCPF No. 3-2018-5005\nPage 5\nin referral of the matter to the Attorney General for appropriate action in a district court of the\nUnited States. This enforcement action closes automatically upon receipt of payment.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMay 16, 2019\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":14374}