# SINCLAIR TRANSPORTATION COMPANY — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320205020
- **title:** SINCLAIR TRANSPORTATION COMPANY — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2020-10-13
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.260(e), 195.412(a).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320205020
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320205020
**body:**

Notice of Probable Violation involving SINCLAIR TRANSPORTATION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.260(e),  195.412(a). The case was opened on 2020-10-13 and is reported as closed as of 2021-02-24. Proposed civil penalty: $97,100. Assessed civil penalty: $67,700. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320205020_Closure Letter_02242021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_Closure%20Letter_02242021.pdf

320205020_Closure Letter_02242021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_Closure%20Letter_02242021_text.pdf

320205020_Consent Agreement and Order_02052021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_Consent%20Agreement%20and%20Order_02052021.pdf

320205020_Consent Agreement and Order_02052021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_Consent%20Agreement%20and%20Order_02052021_text.pdf

320205020_NOPV PCP PCO_10132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_NOPV%20PCP%20PCO_10132020.pdf

320205020_NOPV PCP PCO_10132020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_NOPV%20PCP%20PCO_10132020_text.pdf

320205020_Operator Response to Notice and Request for Hearing and Request for Case File_11022020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205020/320205020_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Request%20for%20Case%20File_11022020.pdf

320205020_Closure Letter_02242021_text.pdf

VIA ELECTRONIC MAIL TO: mpetersen@sinclairoil.com and jbrown@sinclairoil.com
February 24, 2021
Mr. Mark Peterson
President
Sinclair Transportation Company
550 East South Temple
Salt Lake City, Utah 84102
Re: CPF 3-2020-5020
Dear Mr. Peterson:
On February 5, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Sinclair Transportation Company a Consent Order in the above-referenced case. This
Order included a Consent Agreement and Civil Penalty assessment. Based on our review of the
documentation you provided and confirmation of payment of the civil penalty, it has been
determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Gregory Ochs
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration

320205020_NOPV PCP PCO_10132020_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
VIA ELECTRONIC MAIL TO: mpetersen@sinclairoil.com and jbrown@sinclairoil.com
October 13, 2020
Mr. Mark Petersen
President
Sinclair Transportation Company
550 East South Temple
Salt Lake City, Utah 84102
mpetersen@sinclairoil.com
CPF 3-2020-5020
Dear Mr. Petersen:
From April 4, 2019 to September 24, 2019, representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter
601 of 49 United States Code (U.S.C.), inspected records and field facilities of Sinclair
Tranportation Company’s (Sinclair) refined products Midcon system in Kansas, Missouri, and
Iowa.
As a result of the inspection, it is alleged that Sinclair has committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. §195.260 Valves: Location. A valve must be installed at each of the following
locations:



(a) . . .
(e) On each side of a water crossing that is more than 100 feet (30 meters) wide
from high-water mark to high-water mark unless the Administrator finds in a
particular case that valves are not justified.
Sinclair failed to install valves on each side of a water crossing this is more than 100 feet wide
from high-water mark to high-water mark. In 2011 Sinclair installed a new crossing of more
than 100 feet on Santa Fe Lake near Laplata, Missouri, but did not install the valves required by
§195.260(e). PHMSA reviewed the project files and inspected the area during the inspection to
confirm the required valves to protect the lake crossing had not been installed.
2. §195.412 Inspection of rights-of-way and crossings under navigable waters
(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each
calendar year, inspect the surface conditions on or adjacent to each pipeline right-
of-way. Methods of inspection include walking, driving, flying or other appropriate
means of traversing the right-of-way.
Sinclair failed to inspect the surface conditions on or adjacent to each pipeline right-of-way
(ROW). Sinclair conducted the inspections required by §195.412(a) by aerial patrol, however, it
failed to maintain the pipeline ROW in a condition that is appropriate for aerial patrolling to
inspect the surface conditions on or adjacent to each pipeline ROW. PHMSA’s field inspection
observed tree canopy and vegetation cover over the ROW, which precluded Sinclair from
inspecting the surface conditions at the following locations by aerial patrol:
• ROW to the west of the Hwy 218 crossing south of Montrose, IA
• ROW on Sessford Property west of Argyle, IA
• ROW approximately 0.5 miles east of Gorin, MO
• ROW between Hwy 139 and Maple St, Bosworth, MO
• ROW on the west side of the North Missouri River block valve
• ROW on both sides of Robinson Pike Rd, Grandview, MO
• ROW north of 3rd St in Grandview, MO
• ROW on both sides of Martha Truman Rd , Grandview, MO
• ROW on Burr Oak Woods Nature Center, (Missouri Conservation Department property)
north of the South Burr Oak Woods Block Valve
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a
related series of violations. For violation occurring on or after November 27, 2018 and before
July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a
maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,
2



2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per
violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring
prior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per
day, with a maximum penalty not to exceed $2,000,000 for a related series of violations. We
have reviewed the circumstances and supporting documentation involved for the above probable
violations and have recommended that you be preliminarily assessed a civil penalty of $97,100
as follows:
Item number PENALTY
2 $97,100
Proposed Compliance Order
With respect to items 1 and 2, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous
Materials Safety Administration proposes to issue a Compliance Order to Sinclair Transporation
Company. Please refer to the Proposed Compliance Order, which is enclosed and made a part of
this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Enforcement Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be made publicly available. If
you believe that any portion of your responsive material qualifies for confidential treatment
under 5 U.S.C. 552(b), along with the complete original document you must provide a second
copy of the document with the portions you believe qualify for confidential treatment redacted
and an explanation of why you believe the redacted information qualifies for confidential
treatment under 5 U.S.C. 552(b).
Following the receipt of this Notice, you have 30 days to submit written comments, or request a
hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,
this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the
Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further
notice to you and to issue a Final Order. If you are responding to this Notice, we propose that
you submit your correspondence to my office within 30 days from receipt of this Notice. This
period may be extended by written request for good cause.
In your correspondence on this matter, please refer to CPF 3-2020-5020 and, for each document
you submit, please provide a copy in electronic format whenever possible.
3



Sincerely,
Gregory A. Ochs
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Enforcement Proceedings
Cc: Jon Brown, Regulatory Compliance Coordiantor, jbrown@sinclairoil.com
4



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Sinclair Transportation Company (Sinclair) a
Compliance Order incorporating the following remedial requirements to ensure the compliance
of Sinclair with the pipeline safety regulations:
1. 2. 3. In regard to Item Number 1 of the Notice pertaining to Sinclair’s failure install
valves on each side of the water crossing of Sante Fe Lake outside of Laplata, MO
as required by §195.260(e), Sinclair must complete the following measures:
a. Within 30 days of the issuance of the Final Order: assess the location of
the valves and update the Emergency Flow Restricing Devices study as
needed to identify the location of any additional valves required to protect
the Sante Fe Lake crossing.
b. Within 90 days of the issuance of the Final Order: provide to the Director,
Central Region, a plan and schedule to complete the installation of the
valves required to protect Sante Fe Lake with the following requirements:
i. Peform the installation of required valves within 12 months; and
ii. Provide to the Director quarterly progress reports and a final report
upon completed of the installation of required valves.
In regard to Item Number 2 of the Notice pertaining to Sinclair’s failure to inspect
the surface conditions on or adjacent to each pipeline right-of-way as required by
§195.412(a), Sinclair must complete the following measures:
a. Within 30 days of the issuance of the Final Order: assess the right-of-way to
determine which locations require clearing to allow for effective aerial patrols
or establish alternate effective patrols for those locations where clearing will
not be conducted.
b. Within 90 days of issuance of the Final Order: provide to the Director, Central
Region, a plan and schedule to complete the identified right-of-way clearing
and records of the completed patrols with the following requirements:
i. Complete all necessary clearing within 12 months; and
ii. Provide to the Director quarterly progress reports and a final report
upon completion of all planned right-of-way clearing.
It is requested (not mandated) that Sinclair maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit
the total to Allan Beshore, Director, Central Region, Pipeline and Hazardous
Materials Safety Administration. It is requested that these costs be reported in
two categories: 1) total cost associated with preparation/revision of plans,
procedures, studies and analyses, and 2) total cost associated with replacements,
additions and other changes to pipeline infrastructure.
5

320205020_Consent Agreement and Order_02052021_text.pdf

February 5, 2021
VIA ELECTRONIC MAIL TO: mpetersen@sinclairoil.com
Mr. Mark Peterson
President
Sinclair Transportation Company
550 East South Temple
Salt Lake City, Utah 84102
CPF No. 3-2020-5020
Dear Mr. Peterson:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Sinclair
Transportation Company which was executed on January 4 and January 17, 2021, respectively.
Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon
the date of transmission, or as otherwise 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: Order and Consent Agreement
cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Jon S. Lindsey, Corporate Counsel, Sinclair Transportation Company,
jlindsey@sinclairoil.com



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of
Sinclair Transportation Company,
Respondent.
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CPF No. 3-2020-5020
CONSENT ORDER
By letter dated October 13, 2020, the Pipeline and Hazardous Materials Safety Administration,
Office of Pipeline Safety, issued a Notice of Probable Violation, Proposed Civil Penalty and
Proposed Compliance Order (Notice) to Sinclair Transportation Company (Sinclair).
In response to the Notice, Sinclair requested an informal consultation, whereupon the parties
engaged in good-faith settlement discussions that have resulted in the Consent Agreement
attached to this Order that settles all of the allegations in the Notice.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Order. FLNG is hereby ordered to comply with the terms of the Consent Agreement, effective
immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties as set forth in 49 C.F.R. § 190.223.
The terms and conditions of this Consent Order are effective upon service in accordance with 49
C.F.R. § 190.5.
February 5, 2021
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of
Sinclair Transportation Company,
Respondent.
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CPF No. 3-2020-5020
CONSENT AGREEMENT
From April 4, 2019, to September 24, 2019, pursuant to 49 U.S.C. § 60117, representatives 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 Sinclair
Transportation Company’s (Sinclair or Respondent) refined-products Midcon system in Kansas,
Missouri, and Iowa.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated October 13, 2020, a Notice of Probable Violation, Proposed Civil Penalty and
Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice
proposed finding that Sinclair had violated 49 C.F.R. §§ 195.260(e) and 195.412(a), and
proposed ordering Respondent to take certain measures to correct the alleged violations, and to
pay a civil penalty in the amount of $97,100.
Sinclair responded to the Notice by letter dated November 2, 2020 (Response). The company
contested the allegations and requesting a hearing. On November 13, 2020, Sinclair and
PHMSA (collectively, the Parties), participated in a scheduling conference with the presiding
official. During the conference, the Parties agreed that the issues in the Notice could potentially
be resolved through informal discussions. On December 2, 2020, and again on December 16,
2020, the Parties met to discuss a possible resolution of the case. During each meeting, both
Parties offered additional information in response to the Notice, and an agreement was reached
that resolves all of the issues in the Notice.
Having agreed that settlement of this proceeding will avoid further administrative proceedings or
litigation and will serve the public interest by promoting safety and protection of the
environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of the Sinclair and
PHMSA, the Parties hereby agree as follows:



I. General Provisions
1. Respondent acknowledges that as the operator of the Midcon system in Kansas,
Missouri, and Iowa, Respondent and its Midcon system are subject to the jurisdiction of the
Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it
received proper notice of PHMSA's action in this proceeding and that the Notice states claims
upon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and
orders issued thereunder.
2. After Sinclair returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending
that the Associate Administrator adopt the terms of this Agreement by issuing an administrative
order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement
3. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except as set forth herein.
4. This Agreement shall apply to and be binding upon PHMSA and Sinclair, its
officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Sinclair’s officers, employees, and agents whose
duties might reasonably include compliance with this Agreement.
5. This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement.
The Parties acknowledge that there are no representations, agreements or understandings relating
to settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.
6. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et
seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters
PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to
bring enforcement actions against Sinclair pursuant to the Federal pipeline safety laws, the
regulations and orders issued thereunder, or any other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Sinclair’s Midcon
pipeline system, Sinclair will provide a copy of this Agreement to the prospective transferee at
least 30 days prior to such transfer. Sinclair will provide written notice of the transfer to the
PHMSA Central Regional Director no later than 60 days after the transfer occurs.



8. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,
or a modification of any permit, under any Federal, State, or local laws or regulations. Sinclair
remains responsible for achieving and maintaining compliance with all applicable Federal, State,
and local laws, regulations and permits.
9. This Agreement does not create rights in, or grant any cause of action to, any third
party not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. Sinclair agrees
to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and
representatives from any and all causes of action arising from any acts or omissions of
Respondent or its contractors in carrying out any work required by this Agreement.
10. Upon issuance of the Consent Order, the Parties agree to the following terms.
II. Item 1 of the Notice:
12. Allegation of Violation - § 195.260(e): With respect to Item 1 of the Notice, the
Director, Central Region, has reviewed additional information provided by Sinclair and
determined that this Item should be reduced to a warning item. Sinclair provided PHMSA with an
Emergency Flow Restricting Device (EFRD) study that supported Sinclair’s contention that the
location of the valves are consistent with the requirements of the regulation. As such, the allegation
of violation for Item 1 and the related compliance order associated with this Item are withdrawn.
III. Item 2 of the Notice:
13. Allegation of Violation - § 195.412(a): With respect to Item 2 of the Notice, the
Parties agree that Sinclair violated 49 C.F.R. § 195.412(a), as alleged in the Notice, for four of
the nine instances of violation alleged and shall be considered by PHMSA as a prior offense in
any future PHMSA enforcement action taken against Sinclair. In addition, the Director, Central
Region has reviewed additional documentation provided by Sinclair and has determined that
Sinclair has completed the corrective action detailed in the Proposed Compliance Order of the
Notice. Accordingly, the compliance order associated with this Item is withdrawn.
14. Civil Penalty: With respect to Item 2 of the Notice, the Parties agree that the
Civil Penalty is reduced from $97,100 to $67,700. The reduction the civil penalty is supported
by the reduction in instances of violation from nine to four. Sinclair must pay the civil penalty in
the amount of $67,700 no later than 30 days from the Effective Date of this Agreement.
IV. Enforcement
15. This Agreement is subject to all enforcement authorities available to PHMSA
under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties
under 49 U.S.C. § 60122, of up to $200,000 per violation for each day the violation continues and
referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that
Respondent is not complying with the terms of this Agreement in accordance with determinations



made by the Director, or if appealed, in accordance with decisions of the Associate Administrator.
The maximum civil penalty amounts are adjusted annually for inflation. See, e.g., Pipeline
Safety: Inflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).
V. Effective Date
16. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.
VI. Modification
17. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
VIII. Ratification
19. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
20. The Parties hereby agree to all conditions and terms of this Agreement.
For Sinclair Transportation Company:
___________________________________
________________________
Date
For PHMSA:
___________________________________
Region Director
January 4, 2021________________
Date
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