# VANTAGE PIPELINE US LP — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.428(a), 195.440(a), 195.446(h)(1).
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- **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.

Official case documents:

320185005_Final Order_05162019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_Final%20Order_05162019.pdf

320185005_Final Order_05162019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_Final%20Order_05162019_text.pdf

320185005_NOPV PCP_07032018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_NOPV%20PCP_07032018.pdf

320185005_NOPV PCP_07032018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_NOPV%20PCP_07032018_text.pdf

320185005_Operator Response to Notice_08022018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185005/320185005_Operator%20Response%20to%20Notice_08022018.pdf

320185005_Final Order_05162019_text.pdf

May 16, 2019
Mr. Todd Karran
President and Chief Executive Officer
Nova Chemicals Inc. (d/b/a Vantage Pipeline)
P.O. Box 2518
Calgary, Alberta, T2P 5C6
Re: CPF No. 3-2018-5005
Dear Mr. Karran:
Enclosed please find the Final Order issued in the above-referenced case to Nova Chemicals,
Inc., regarding the Vantage Pipeline. It makes findings of violation and assesses a civil penalty
of $77,700. This is to acknowledge receipt of partial payment, by wire transfer dated August 3,
2018, in the amount of $77,690. There is a remaining balance of $10.00 that is still due. Remit
the remaining balance in accordance with the payment instructions set forth in the Final Order.
This enforcement action closes automatically upon receipt of this remaining payment. 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
Mr. William C. Mitchell, General Counsel and Assistant Corporate Secretary,
Nova Chemicals Inc. (via electronic transmission to Bill.Mitchell@novachem.com)
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 )
Nova Chemicals Inc., ) CPF No. 3-2018-5005
d/b/a Vantage Pipeline, )
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
Between October 10 and November 5, 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 the facilities and records of Nova
Chemicals Inc., d/b/a Vantage Pipeline (Nova or Respondent), in Joffre, Alberta, Canada, and
North Dakota. Nova operates Vantage Pipeline, which is an approximately 80-mile, 10-inch and
8-inch, liquefied petroleum gas and natural gas liquids pipeline, running from the Hess plant in
Williams County, North Dakota, to the United States and Canadian border.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated July 3, 2018, a Notice of Probable Violation and Proposed Civil Penalty (Notice).
In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Nova had violated 49
C.F.R. §§ 195.428, 195.440 and 195.446 and proposed assessing a civil penalty of $77,700 for
the alleged violations.
Nova responded to the Notice by letter dated August 2, 2018 (Response). The company did not
contest the allegations of violation and made a partial payment in the amount of $77,690 of the
proposed civil penalty of $77,700.2 In accordance with 49 C.F.R. § 190.208(a)(1), such payment
authorizes the Associate Administrator to make findings of violation and to issue this final order
without further proceedings.
1 Pipeline Violation Safety Report (Violation Report), (July 3, 2018) (on file with PHMSA), at 1.
2 In its Response, Nova stated that it had “made a wire transfer in the amount of $77,700 through the Federal
Reserve Communications System to the account of the U.S. Treasury.” Response, at 1. The wire transfer voucher
received by PHMSA, dated August 3, 2018, identified the amount received by the U.S. Treasury as $77,690. The
$10.00 deficiency was apparently due to Nova’s bank assessing a $10 transfer fee.



CPF No. 3-2018-5005
Page 2
FINDINGS OF VIOLATION
In its Response, Nova 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. § 195.428(a), which states:
§ 195.428 Overpressure safety devices and overfill protection systems.
(a) Except as provided in paragraph (b) of this section, each operator
shall, at intervals not exceeding 15 months, but at least once each calendar
year, or in the case of pipelines used to carry highly volatile liquids, at
intervals not to exceed 7½ months, but at least twice each calendar year,
inspect and test each pressure limiting device, relief valve, pressure
regulator, or other item of pressure control equipment to determine that it is
functioning properly, is in good mechanical condition, and is adequate from
the standpoint of capacity and reliability of operation for the service in
which it is used.
The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test
the overpressure protection devices on the Vantage Pipeline, which carries highly volatile
liquids, at intervals not to exceed 7½ months but at least twice each calendar year. Specifically,
the Notice alleged that the pipeline’s pressure-control devices (Honeywell STG 974-EIA) on its
control valves were not calibrated or tested during calendar years 2014, 2015, and 2016.
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. § 195.428(a) by failing to inspect and
test the overpressure protection devices on the Vantage Pipeline, which carries highly volatile
liquids, at intervals not to exceed 7½ months but at least twice each calendar year.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:
§ 195.440 Public awareness.
(a) Each pipeline operator must develop and implement a written
continuing public education program that follows the guidance provided in
the American Petroleum Institute’s (API) Recommended Practice (RP)
1162 (incorporated by reference, see § 195.3).
The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to develop and
implement a written continuing education program that follows the guidance provided by API
RP 1162. Specifically, the Notice alleged that Nova did not have a public awareness program
until 2016, even though the Vantage Pipeline has been in operation and transporting product
since 2014.
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. § 195.440(a) by failing to develop and
implement a written continuing education program that follows the guidance provided by API



CPF No. 3-2018-5005
Page 3
RP 1162 until 2016, even though the Vantage Pipeline has been in operation and transporting
product since 2014.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.446(h)(1), which states:
§ 195.446 Control room management.
(a) . . . .
(h) Training. Each operator must establish a controller training
program and review the training program content to identify potential
improvements at least once each calendar year, but at intervals not to exceed
15 months. An operator’s program must provide for training each controller
to carry out the roles and responsibilities defined by the operator. In
addition, the training program must include the following elements:
(1) Responding to abnormal operating conditions likely to occur
simultaneously or in sequence; . . .
The Notice alleged that Respondent violated 49 C.F.R. § 195.446(h)(1) by failing to train its
controllers in responding to abnormal operating conditions likely to occur simultaneously or in
sequence. Specifically, the Notice alleged that Nova failed, until August 2017, to identify the
abnormal operating conditions likely to occur simultaneously or in sequence in its control room
and to train their controllers to respond to such conditions, despite the Vantage Pipeline having
been in operation since 2014.
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. § 195.446(h)(1) by failing to train its
controllers in responding to abnormal operating conditions until 2017, despite having operated
the Vantage Pipeline since 2014.
These findings of violation will be considered prior offenses 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.3 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; 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
3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,
83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).



CPF No. 3-2018-5005
Page 4
damages, and such other matters as justice may require. The Notice proposed a total civil
penalty of $77,700 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $40,300 for Respondent’s violation of 49 C.F.R.
§ 195.428(a), for failing to inspect and test the overpressure protection devices on the Vantage
Pipeline, which carries highly volatile liquids, at intervals not to exceed 7½ months but at least
twice each calendar year. Nova 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 Respondent a civil penalty of
$40,300 for violation of 49 C.F.R. § 195.428(a).
Item 2: The Notice proposed a civil penalty of $18,700 for Respondent’s violation of 49 C.F.R.
§ 195.440(a), for failing to develop and implement a written continuing education program that
follows the guidance provided by API RP 1162. Nova 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 Respondent a civil penalty of $18,700 for violation of 49 C.F.R. § 195.440(a).
Item 3: The Notice proposed a civil penalty of $18,700 for Respondent’s violation of 49 C.F.R.
§ 195.446(h)(1), for failing to train its controllers in responding to abnormal operating
conditions. Nova 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 Respondent a civil penalty of $18,700
for violation of 49 C.F.R. § 195.446(h)(1).
In summary, having reviewed the record and considered the assessment criteria for each of the
Items cited above, I assess Respondent a total civil penalty of $77,700. Nova partially paid this
penalty by wire transfer dated August 3, 2018, in the amount of $77,690. Therefore, a balance of
$10.00 remains outstanding.
Payment of the civil penalty must be made within 20 days of service of this Final Order.
Payment may be made by sending a certified check or money order (containing the CPF Number
for this case), made payable to “U.S. Department of Transportation,” to the Federal Aviation
Administration, Mike Monroney Aeronautical Center, Financial Operations Division (AMK-
325), 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. Federal regulations (49 C.F.R.
§ 89.21(b)(3)) also permit payment to be made by wire transfer through the Federal Reserve
Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions
are contained in the enclosure. Questions concerning wire transfers should be directed to:
Financial Operations Division (AMK-325), Federal Aviation Administration, Mike Monroney
Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial
Operations Division telephone number is (405) 954-8845.
Failure to pay the $10 civil penalty will result in accrual of interest at the current annual rate in
accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those
same authorities, a late penalty charge of six percent (6%) per annum will be charged if payment
is not made within 110 days of service. Furthermore, failure to pay the civil penalty may result



CPF No. 3-2018-5005
Page 5
in referral of the matter to the Attorney General for appropriate action in a district court of the
United States. This enforcement action closes automatically upon receipt of payment.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
May 16, 2019
___________________________________ _________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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