{"operation":"document","citation":"CPF 320205003","title":"TC OIL PIPELINE OPERATIONS INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-03-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 190.203(f).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205003","body":"Notice of Probable Violation involving TC OIL PIPELINE OPERATIONS INC. PHMSA's enforcement data identifies the cited regulation as 190.203(f). The case was opened on 2020-03-11 and is reported as closed as of 2021-01-11. Proposed civil penalty: $170,300. Assessed civil penalty: $170,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205003_Closure Letter_01112021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205003/320205003_Closure%20Letter_01112021.pdf\n\n320205003_Closure Letter_01112021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205003/320205003_Closure%20Letter_01112021_text.pdf\n\n320205003_Final Order_11062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205003/320205003_Final%20Order_11062020.pdf\n\n320205003_Final Order_11062020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205003/320205003_Final%20Order_11062020_text.pdf\n\n320205003_NOPV PCP PCO_03112020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205003/320205003_NOPV%20PCP%20PCO_03112020.pdf\n\n320205003_NOPV PCP PCO_03112020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205003/320205003_NOPV%20PCP%20PCO_03112020_text.pdf\n\n320205003_Closure Letter_01112021_text.pdf\n\nVIA ELECTRONIC MAIL TO: bevin_wirzba@tcenergy.com , lee_romack@tcenergy.com ,\nwendy_west@tcenergy.com and erik_hughes@tcenergy.com\nJanuary 11, 2021\nMr. Bevin Wirzba\nExecutive Vice President and President, Liquid Pipelines\nTC Oil Operations, Inc.\n450 1st Street, S.W.\nCalgary, Alberta, Canada, T2P 5H1\nRE: CPF 3-2020-5003\nDear Mr. Wirzba:\nOn November 6, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to TC Oil Operations, Inc.a Final Order in the above-referenced case. This Order\nincluded a Compliance Order and Civil Penalty. Based on our review of the documentation you\nprovided and our collections information repository, it has been determined that you have\ncomplied with the terms of this Order and made payment of the penalty amount.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nGregory A. Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nCc: Mr. Lee Romack, Director, Pipelines Regulatory Compliance, TC Energy Corporation,\nlee_romack@tcenergy.com, Ms. Wendy West, Vice President, Safety, Quality & Compliance,\nTC Energy Corporation wendy_west@tcenergy.com , Mr. Erik Hughes Pipelines Regulatory\nCompliance erik hughes@tcenergy.com\n\n320205003_Final Order_11062020_text.pdf\n\nNovember 6, 2020\nVIA ELECTRONIC MAILTO: bevin wirzba@tcenergy.com\nMr. Bevin Wirzba\nExecutive Vice President and President, Liquids Pipelines\nTC Oil Pipeline Operations, Inc.\n450 1st Street, S.W.\nCalgary, Alberta, Canada, T2P 5H1\nRe: CPF No. 3-2020-5003\nDear Mr. Wirzba:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation, assesses a civil penalty of $170,300, and specifies actions that need to be taken to\ncomply with the pipeline safety regulations. When the civil penalty has been paid and the terms\nof the compliance order are completed, as determined by the Director, Central Region, this\nenforcement action will be closed. Service of the Final Order by electronic mail is effective\nupon the date of transmission as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Lee Romack, Director, Pipelines Regulatory Compliance, TC Energy Corporation,\nlee_romack@tcenergy.com\nMs. Wendy West, Vice President, Safety, Quality & Compliance, TC Energy Corporation,\nwendy_west@tcenergy.com\nCONFIRMATION OF 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 )\nTC Oil Pipeline Operations, Inc., ) CPF No. 3-2020-5003\na subsidiary of TC Energy Corporation, )\n)\n)\n)\nRespondent. )\n_____________________________________)\nFINAL ORDER\nOn March 11, 2020, pursuant to 49 C.F.R. §§ 190.207 and 190.341, the Director, Central\nRegion, Office of Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to TC\nOil Pipeline Operations, Inc. (Respondent). The Notice proposed finding that Respondent had\nviolated Condition 40 of the April 30, 2007 special permit granted to TransCanada Keystone\nPipeline, LP, and TC Oil Operations, Inc., (docket number PHMSA-2006-26617) and proposed a\ncivil penalty of $170,300. The Notice also proposed certain measures to correct the violation.\nRespondent did not contest the allegation of violation, corrective measures, or proposed civil\npenalty.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\nSpecial Permit Condition 40 (Item 1) ─ Respondent failed to employ line-of-sight\nmarkers on the pipeline in the special permit area, except in agricultural areas or\nlarge water crossings such as lakes where line of sight markers are impractical.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a total\ncivil penalty of $170,300.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\n\n\n\nCPF No. 3-2020-5003\nPage 2\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $170,300 civil penalty will result in accrual of interest at the current annual\nrate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ACTIONS\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violation. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof ordered actions, Respondent may request that the Director close the case. Failure to comply\nwith this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nNovember 6, 2020\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320205003_NOPV PCP PCO_03112020_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED\nMarch 11, 2020\nMr. Paul Miller\nExecutive-Vice President/President, Liquids Pipelines\nTC Oil Operations, Inc.\n450 1st Street, S.W.\nCalgary, Alberta, Canada\nT2P 5H1\nCPF 3-2020-5003\nDear Mr. Miller:\nOn November 17, 2006, pursuant to 49 United States Code (U.S.C.) § 60118(c) and 49 Code of\nFederal Regulations (CFR) § 190.341, Transcanada Keystone Pipeline, LP filed a special permit\nrequest with the Pipeline & Hazardous Materials Safety Administration (PHMSA), Office of\nPipeline Safety (OPS), for a waiver from certain provisions of 49 CFR § 195. PHMSA issues\nspecial permits to pipeline operators if the agency determines that a waiver of a particular\nregulation or standard is not inconsistent with pipeline safety. On April 30, 2007, PHMSA\nissued an order granting Transcanada Keystone Pipeline, LP/TC Oil Operations Inc, Inc. a\nspecial permit with certain conditions and limitations (Order). See PHMSA 2006-26617.\nFrom January 8, 2018 to April 27, 2018, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to\nChapter 601 of 49 U.S.C., inspected the pipeline facilities of TC Oil Operations, Inc. to\nconfirm the company’s compliance with the Order.\nAs a result of the inspection, it is alleged that TC Oil Operations, Inc. has committed a\nprobable violation of the Order. As stated in 49 CFR § 190.203(f), when information\nobtained from an inspection indicates that further OPS action is warranted, OPS may initiate\none or more enforcement proceedings prescribed in §§ 190.207 through 190.235.\n\n\n\nThe items inspected and the probable violation(s) are:\n1. Condition 40\nPipeline Markers: Keystone must employ line-of-sight markings on the pipeline\nin the special permit area except in agricultural areas or large water crossings\nsuch as lakes where line of sight markers are impractical. The marking of\npipelines is also subject to Federal Energy Regulatory Commission orders or\nenvironmental permits and local restrictions. Additional markers must be placed\nalong the pipeline in areas where the pipeline is buried less than 42 inches.\nTC Oil Operations, Inc. failed to comply with Condition 40 of the Special Permit\norder. Condition 40 required TC Oil Operations, Inc. to employ line of sight markers\nin the special permit area. Upon inspection there were 20 instances of missing line of\nsight markers in the special permit area.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465\nfor a related series of violations. For violation occurring on or after November 27, 2018 and\nbefore July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day,\nwith a maximum penalty not to exceed $2,132,679. For violation occurring on or after\nNovember 2, 2015 and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For\nviolations occurring prior to November 2, 2015, the maximum penalty may not exceed\n$200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a\nrelated series of violations.\nThe Compliance Officer has reviewed the circumstances and supporting documentation\ninvolved in the above probable violation and has recommended that you be preliminarily\nassessed a civil penalty of $170,300 as follows:\nItem number PENALTY\n1 $170,300\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 U.S.C. § 60118(b), the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to TC Oil Operations,\nInc. Please refer to the Proposed Compliance Order, which is enclosed and made a part of\nthis Notice.\n2\n\n\n\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the response\noptions. All material you submit in response to this enforcement action may be made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide\na second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies\nfor confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request\na hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this\nNotice, this constitutes a waiver of your right to contest the allegations in this Notice and\nauthorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this\nNotice without further notice to you and to issue a Final Order. If you are responding to this\nNotice, we propose that you submit your correspondence to my office within 30 days from\nreceipt of this Notice. This period may be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 320205003 and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nRight to Modify, Suspend, or Revoke a Special Permit\nIssuance of this enforcement action does not preclude PHMSA’s authority to seek\nmodification, suspension or revocation of the special permit issued under PHMSA 2006-\n26617 at any time, as provided in 49 CFR § 190.341(h)(1).(v). If such action is taken,\nPHMSA will provide TC Oil Operations, Inc. with the opportunity to show cause why the\nproposed action should not be taken.\nSincerely,\nAllan Beshore\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n3\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) proposes to issue to TC Oil Operations, Inc a Compliance Order incorporating the\nfollowing remedial requirements to ensure compliance with the Special Permit Order issued\non April 30, 2007\n1. With respect to Item Number 1 of the Notice, TC Oil Operations, Inc. shall\ndevelop a written plan to install line-of-sight markers along its pipeline in the\nspecial permit area as required by item 40 of the Special Permit. This plan shall\ntake into account a reasonable distance interval and contrasting color from\nsurroundings so that it can be readily identified with the naked eye. TC Oil\nOperations, Inc. shall provide a record of the location of required signs and date of\ninstallation. within 180 days of receipt of the Final Order or PHMSA may issue a\nshow cause letter modifying, revoking, or suspending the Special Permit issued\nunder PHMSA 2006-26617.\n2. Submit the results of the Proposed Compliance Order Items above to Allan\nBeshore, Director, Central Region within 180 days of receipt of the Final Order.\n4","truncated":false,"body_characters":15036}