# COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320195021
- **title:** COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-09-12
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.573(a)(1), 195.573(e), 195.589(c).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195021.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195021.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195021
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320195021
**body:**

Notice of Probable Violation involving COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulations as 195.573(a)(1),  195.573(e),  195.589(c). The case was opened on 2019-09-12 and is reported as closed as of 2020-01-28. Proposed civil penalty: $36,900. Assessed civil penalty: $36,900. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320195021_Final Order_01062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195021/320195021_Final%20Order_01062020.pdf

320195021_Final Order_01062020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195021/320195021_Final%20Order_01062020_text.pdf

320195021_NOPV PCP_09122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195021/320195021_NOPV%20PCP_09122019.pdf

320195021_NOPV PCP_09122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195021/320195021_NOPV%20PCP_09122019_text.pdf

320195021_Operator Response to Notice (Redacted)_10112019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195021/320195021_Operator%20Response%20to%20Notice%20(Redacted)_10112019.pdf

320195021_Final Order_01062020_text.pdf

January 6, 2020
Mr. John Lipinski
Chief Executive Officer and President
CVR Refining, LP
2277 Plaza Drive
Suite 500
Sugar Land, Texas 77479
Re: CPF No. 3-2019-5021
Dear Mr. Lipinski:
Enclosed please find the Final Order issued in the above-referenced case to your subsidiary,
Coffeyville Resources Crude Transportation, LLC. It makes one finding of violation and
assesses a civil penalty of $36,900. The penalty payment terms are set forth in the Final Order.
This enforcement action closes automatically upon receipt of 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 Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Keith Kuehn, Vice President - Pipeline, Coffeyville Resources Crude Transportation,
LLC, 411 Northeast Washington Boulevard, Bartlesville, Oklahoma 74006
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 )
Coffeyville Resources Crude Transportation, LLC, ) CPF No. 3-2019-5021
a subsidiary of CVR Refining, LP, )
)
)
)
Respondent. )
_____________________________________________)
FINAL ORDER
From August 20-24 and 27-30, 2018, pursuant to 49 U.S.C. § 60117, a representative of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), conducted a pipeline safety inspection of records of Coffeyville Resources Crude
Transportation, LLC (CRCT or Respondent), in Bartlesville, Oklahoma, and conducted on-site
inspections of CRCT’s pipeline system, pump stations, and records in Oklahoma and Kansas.
CRCT is a subsidiary of CVR Refining, LP, and operates an approximately 65,000-barrel-per-
day crude-oil gathering and pipeline/trucking system in Oklahoma and Kansas. The gathering
system is comprised of more than 350 miles of company-owned pipelines and associated tankage
and truck transportation facilities.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated September 12, 2019, a Notice of Probable Violation and Proposed Civil Penalty
(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 CRCT had violated 49 C.F.R. § 195.573 and
proposed assessing a civil penalty of $36,900 for the alleged violation. The warning item
required no further action but warned the operator to correct the probable violation or face
possible future enforcement action.
CRCT responded to the Notice by letter dated October 11, 2019 (Response). The company did
not contest the allegation, offered additional information in response to the Notice, and requested
that the proposed civil penalty be reduced.
Respondent did not request a hearing and therefore has waived its right to one.
1 CVR Refining, LP website, available at http://www.cvrrefining.com/RefiningOperations/index html (last accessed
December 16, 2019).



CPF No. 3-2019-5021
Page 2
FINDING OF VIOLATION`
The Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.573(e), which states:
§ 195.573 What must I do to monitor external corrosion control?
(a) …
(e) Corrective action. You must correct any identified deficiency in
corrosion control as required by § 195.401(b). However, if the deficiency
involves a pipeline in an integrity management program under § 195.452,
you must correct the deficiency as required by § 195.452(h).
The Notice alleged that Respondent violated 49 C.F.R. § 195.573(e) by failing to take corrective
action to correct identified deficiencies on its corrosion-control system. Specifically, the Notice
and Violation Report alleged that a review of CRCT’s external corrosion-control inspection
records found that CRCT had not completed corrective actions at three test points with low
readings on non-integrity management pipe as required by § 195.401(b). Low readings (under
850 mV negative) were taken in 2016 and 2017 at CR 4670 North Side, CR 4601 South Side,
and CR 4500 North Side. These deficiencies had not been corrected by the end of the following
year.
In its Response, CRCT did not contest the allegation of violation, but did request that the penalty
be reduced. The penalty will be discussed more fully below.
Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.
§ 195.573(e) by failing to take corrective action to correct identified deficiencies on its
corrosion-control system.
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; 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
2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.



CPF No. 3-2019-5021
Page 3
damages, and such other matters as justice may require. The Notice proposed a total civil
penalty of $36,900 for the violation cited above.
Item 1: The Notice proposed a civil penalty of $36,900 for Respondent’s violation of 49 C.F.R.
§ 195.573(e), for failing to take corrective action to correct identified deficiencies on its
corrosion-control system. In its response, CRCT contested the penalty for this Item and
requested that it be reduced. CRCT based its request on the actions it had taken to implement a
“comprehensive mitigation solution” to upgrade its corrosion protection system, with a total
investment of $313,000.3 While CRCT’s actions are commendable, they were taken after
PHMSA discovered the violation and in order to achieve compliance with Federal law. CRCT
also provided no indication that the proposed penalty would impair its ability to remain in
operation. I therefore decline to reduce the penalty.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a civil penalty of $36,900 for violation of 49 C.F.R. § 195.573(e).
Payment of the civil penalty must be made within 20 days of service. Federal regulations (49
C.F.R. § 89.21(b)(3)) require such 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 $36,900 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 in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
WARNING ITEM
With respect to Item 2, 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 to be a warning
item. The warning was for:
49 C.F.R. § 195.589(c) (Item 2) ─ Respondent’s alleged failure to maintain
records of tests conducted along its Shidler line at eight test points in accordance
with §195.573(a)(1), for at least five years.
3 Response, at 2-3.



CPF No. 3-2019-5021
Page 4
CRCT presented information in its Response showing that it had taken certain actions to address
the cited item. 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. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the 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, no later than 20 days after receipt of service of the
Final Order by Respondent. Any petition submitted must contain a brief statement of the issue(s)
and meet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically
stays the payment of any civil penalty assessed. The other terms of the order, including any
corrective action, remain in effect unless the Associate Administrator, upon request, grants a
stay. If Respondent submits payment of the civil penalty, the Final Order becomes the final
administrative decision and the right to petition for reconsideration is waived.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
January 6, 2020
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
- **truncated:** false
- **body characters:** 11300