{"operation":"document","citation":"CPF 32021048NOPV","title":"MARATHON PIPE LINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021048nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021048nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021048nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021048NOPV","body":"Notice of Probable Violation involving MARATHON PIPE LINE LLC. PHMSA's enforcement data identifies the cited regulation as 195.583(a). The case was opened on 2021-10-18 and is reported as closed as of 2022-03-08. Proposed civil penalty: $22,400. Assessed civil penalty: $22,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021048NOPV_Final Order_02172022_(20-172195).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021048NOPV/32021048NOPV_Final%20Order_02172022_(20-172195).pdf\n\n32021048NOPV_Final Order_02172022_(20-172195)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021048NOPV/32021048NOPV_Final%20Order_02172022_(20-172195)_text.pdf\n\n32021048NOPV_Operator Response to Notice_11162021_(20-172195).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021048NOPV/32021048NOPV_Operator%20Response%20to%20Notice_11162021_(20-172195).pdf\n\n32021048NOPV_PCP_10182021_(20-172195).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021048NOPV/32021048NOPV_PCP_10182021_(20-172195).pdf\n\n32021048NOPV_PCP_10182021_(20-172195)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021048NOPV/32021048NOPV_PCP_10182021_(20-172195)_text.pdf\n\n32021048NOPV_Final Order_02172022_(20-172195)_text.pdf\n\nFebruary 17, 2022\nVIA ELECTRONIC MAIL TO: smlyon@marathonpetroleum.com\nMr. Shawn M. Lyon\nPresident\nMarathon Pipe Line, LLC\n200 East Hardin Street\nFindlay, Ohio 45840\nRe: CPF No. 3-2021-048-NOPV\nDear Mr. Lyon:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and assesses a civil penalty of $22,400. The penalty payment terms are set forth in the\nFinal Order. This enforcement action closes automatically upon receipt of payment. Service of\nthe Final Order by e-mail is effective upon the date of transmission and acknowledgement of\nreceipt 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\nEnclosure\ncc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMs. Mandy L. Bailey, Regulatory Compliance Coordinator, Marathon Pipe Line, LLC\nmlbailey@marathonpetroleum.com\nMr. Greg Smith, Chief Counsel, Marathon Pipe Line, LLC\njgsmith@marathonpetroleum.com\nMr. Aaron W. Martinez, Regulatory Compliance Manager, Marathon Pipe Line, LLC\nawmartinez@marathonpetroleum.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 )\nMarathon Pipe Line, LLC, ) CPF No. 3-2021-048-NOPV\na subsidiary of MPLX, LP, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom April 29, 2020 through November 12, 2020, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the procedures,\nfacilities, and records of the Marathon Pipe Line, LLC (Marathon or Respondent) products\nsystem in Illinois, Michigan, Indiana, and Ohio. Marathon, a subsidiary of MPLX, LP, operates\napproximately 6,000 miles of underground pipeline in 14 states.1 Marathon transports crude oil,\npetroleum products, and natural gas to and from terminals, refineries, and other pipelines.2\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated October 18, 2021, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Marathon\nhad committed one violation of 49 C.F.R. § 195.583(a) and proposed assessing a civil penalty of\n$22,400 for the alleged violation.\nMarathon responded to the Notice by letter dated November 16, 2021 (Response). Respondent\ndid not contest the allegation of violation but did contest certain factual statements in the Notice\nand requested clarification. Respondent did not request a hearing and therefore has waived its\nright to one.\nFINDING OF VIOLATION\nIn its Response, Respondent did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (October 19, 2021) (on file with PHMSA), at 1.\n2 Id.\n\n\n\nCPF No. 3-2021-048-NOPV\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.583(a), which states:\n§ 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed\nto the atmosphere for evidence of atmospheric corrosion, as follows:\nIf the\npipeline is\nlocated:\nThen the frequency of inspection is:\nOnshore At least once every 3 calendar years, but with intervals\nnot exceeding 39 months.\nOffshore At least once each calendar year, but with intervals not\nexceeding 15 months.\nThe Notice alleged that Marathon violated 49 C.F.R. § 195.583(a) by failing to inspect and\nmonitor each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion at least once every three calendar years, but with intervals not exceeding\n39 months. Specifically, the Notice alleged that Marathon failed to inspect and monitor the\naboveground piping associated with the 14 breakout tanks at Hammond Terminal in Indiana for\natmospheric corrosion from October 2009 through October 2020.\nRespondent did not contest this allegation of violation, however it challenged certain facts\nalleged in the Notice. Marathon clarified that only one breakout tank, Tank T-13, “was\ninadvertently reclassified as non-DOT in our atmospheric corrosion monitoring (ACM) tracking\nsystem; therefore, the ACM inspections for the lines associated with Tank T-13 were not\nconducted during the period between October 2009 and October 2020.”3 Consequently,\nRespondent stated “it is not correct that the piping associated with the other 13 breakout tanks at\nHammond Terminal [were] also reclassified as non-DOT.”4 Marathon attributed the factual\nerror to “poor communication” between Marathon personnel and the inspector.5\nAfter evaluating the Response, I agree with Marathon that the non-compliance relevant to the\nallegation of violation is limited to two surge relief lines associated with Tank T-13 only.\nAccordingly, based on a review of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.583(a) by failing to inspect and monitor the aboveground piping associated with Tank T-\n13 at Hammond Terminal at least once every three calendar years, but with intervals not\nexceeding 39 months.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n3 Response, at 2.\n4 Id.\n5 Id.\n\n\n\nCPF No. 3-2021-048-NOPV\nPage 3\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$225,134 per violation for each day of the violation, up to a maximum of $2,251,334 for any\nrelated series of violations.6\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $22,400 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $22,400 for Respondent’s violation of 49 C.F.R.\n§ 195.583(a) for failing to inspect and monitor the aboveground piping associated with the 14\nbreakout tanks at the Hammond Terminal. Marathon did not contest the allegation of violation\nor the proposed civil penalty, but clarified that only two surge relief lines associated with Tank\nT-13 were misclassified. Since the proposed civil penalty was calculated based on only one\ninstance of violation, this factual clarification has no impact on the penalty amount.7\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $22,400 for a violation of 49 C.F.R. § 195.583(a).\nPayment of the civil penalty must be made within 20 days after receipt of the Final Order.\nFederal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U.S.\nTreasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City,\nOklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $22,400 civil penalty will result in accrual of interest at the current annual rate\nin 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.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\n6 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n7 Violation Report at 8.\n\n\n\nCPF No. 3-2021-048-NOPV\nPage 4\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of the Final\nOrder by Respondent. Any petition submitted must contain a brief statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The other terms of the order, including any corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay. If\nRespondent submits payment of the civil penalty, the Final Order becomes the final\nadministrative decision and the right to petition for reconsideration is waived.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nFebruary 17, 2022\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11182}