# DAPL-ETCO OPERATIONS MANAGEMENT, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 32021049NOPV
- **title:** DAPL-ETCO OPERATIONS MANAGEMENT, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-07-22
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.264(b)(1)(i), 195.401(b)(1), 195.402(a), 195.406(b), 195.428(a), 195.440(c), 195.452(f)(1).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021049nopv.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021049nopv.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-32021049nopv
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/32021049NOPV
**body:**

Notice of Probable Violation involving DAPL-ETCO OPERATIONS MANAGEMENT, LLC. PHMSA's enforcement data identifies the cited regulations as 195.264(b)(1)(i),  195.401(b)(1),  195.402(a),  195.406(b),  195.428(a),  195.440(c),  195.452(f)(1). The case was opened on 2021-07-22 and is reported as closed as of 2022-03-28. Proposed civil penalty: $93,200. Assessed civil penalty: $20,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

32021049NOPV_Closure Letter_03282022_(21-211190).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_Closure%20Letter_03282022_(21-211190).pdf

32021049NOPV_Closure Letter_03282022_(21-211190)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_Closure%20Letter_03282022_(21-211190)_text.pdf

32021049NOPV_Consent Agreement and Order_01112022_(21-211190).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_Consent%20Agreement%20and%20Order_01112022_(21-211190).pdf

32021049NOPV_Consent Agreement and Order_01112022_(21-211190)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_Consent%20Agreement%20and%20Order_01112022_(21-211190)_text.pdf

32021049NOPV_Operator Response to Notice and Request for Hearing and Statement of Issues_09212021_(21-211190).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Statement%20of%20Issues_09212021_(21-211190).pdf

32021049NOPV_Operator Withdrawal of Request for Hearing_01132022_(21-211190).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_Operator%20Withdrawal%20of%20Request%20for%20Hearing_01132022_(21-211190).pdf

32021049NOPV_PCP PCO_07222021_(21-211190).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_PCP%20PCO_07222021_(21-211190).pdf

32021049NOPV_PCP PCO_07222021_(21-211190)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_PCP%20PCO_07222021_(21-211190)_text.pdf

32021049NOPV_PHC Hearing Scheduled_10282021_(21-211190).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_PHC%20Hearing%20Scheduled_10282021_(21-211190).pdf

32021049NOPV_PHC Hearing Scheduled_10282021_(21-211190)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021049NOPV/32021049NOPV_PHC%20Hearing%20Scheduled_10282021_(21-211190)_text.pdf

32021049NOPV_Closure Letter_03282022_(21-211190)_text.pdf

VIA ELECTRONIC MAIL TO: matthew.ramsey@energytransfer.com and
Gregory.Mcilwain@energytransfer.com
March 28, 2022
Mr. Matt Ramsey
Chief Operating Officer
Energy Transfer LP
DAPL-ETCO Operation Management, LLC
8111 Westchester
Dallas, TX 75225
Re: CPF No. 3-2021-049-NOPV
Dear Mr. Ramsey:
On January 10, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to DAPL-ETCO Operations Management, LLC a Consent Order in the above-referenced case. This
Order included a Consent Agreement. 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 A. Ochs
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
Cc: Mr. Greg Mcilwain, Senior Vice President, Operations, Energy Transfer,
Gregory.Mcilwain@energytransfer.com

32021049NOPV_PHC Hearing Scheduled_10282021_(21-211190)_text.pdf

October 28, 2021
VIA ELECTRONIC MAIL TO: gregory.mcilwain@energytransfer.com and
gregory.ochs@dot.gov
Mr. Gregory McIlwain
Senior Vice President, Operations
DALP-ETCO Operations Management, LLC
1300 Main Street
Houston, TX 77002
Mr. Gregory Ochs
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
901 Locust Street, Suite 480
Kansas City, MO 64106-2641
Re: Notice of Hearing, DALP-ETCO Operations Management, LLC
CPF No. 3-2021-049-NOPV
Dear Mr. McIlwain and Mr. Ochs:
In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of
Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline
and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take
place on January 19, 2022, beginning at 8:30 a.m. Central Time.
The hearing will be held via videoconference. I will provide the videoconference information prior
to the hearing. At least 10 calendar days prior to the hearing (or by January 9, 2022), both parties
must submit and exchange any additional written materials they intend to present at the hearing and
the name and email address of each attendee. This information should be provided electronically.
Materials not submitted by this date may be excluded.
If you have any questions, please do not hesitate to contact me.
Sincerely,
Kristin Baldwin
Presiding Official
cc: Ms. Catherine Little, Counsel for DALP ETCO Operations Management, Troutman Pepper,
catherine.little@troutman.com



CPF No. 3-2021-049-NOPV
Page 2
Ms. Annie Cook, Counsel for DALP ETCO Operations Management, Troutman Pepper,
annie.cook@troutman.com
Mr. Joseph Hainline, Counsel for Central Region, Office of Pipeline Safety, PHMSA
joseph.hainline@dot.gov

32021049NOPV_Consent Agreement and Order_01112022_(21-211190)_text.pdf

January 11, 2022
VIA ELECTRONIC MAIL TO: matthew.ramsey@energytransfer.com
Mr. Matt Ramsey
Chief Operating Officer
Energy Transfer LP
DAPL-ETCO Operation Management, LLC
8111 Westchester
Dallas, TX 75225
CPF No. 3-2021-5008
Dear Mr. Ramsey:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the
Pipeline and Hazardous Materials Safety Administration (PHMSA) and your subsidiary, DAPL-ETCO
Operation Management, LLC, which was executed on January 10, 2022. 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.
Sincerely,
Alan K Mayberry
Associate Administrator
for Pipeline Safety
Enclosures: Consent Agreement and Consent Order
Cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Greg Mcilwain, Senior Vice President, Operations, Energy Transfer,
Gregory.Mcilwain@energytransfer.com
Ms. Catherine Little, Outside Counsel, DAPL, catherin.little@troutman.com
Ms. Annie Cook, Outside Counsel, DAPL, annie.cook@troutman.com
CONFIRMATION OF 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
DAPL-ETCO Operation Management,
LLC,
Respondent.
)
)
)
)
)
)
)
CPF No. 3-2021-049-NOPV
CONSENT ORDER
By letter dated July 22, 2021, the Pipeline and Hazardous Materials Safety Administration,
Office of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil
Penalty and Proposed Compliance Order (Notice) to DAPL-ETCO Operations Management,
LLC (Respondent).
In response to the Notice, Respondent requested a hearing and an informal settlement
conference. Beginning on November 9, 2021, and in subsequent meetings in November and
December, PHMSA and Respondent (collectively referred to as the Parties) engaged in good
faith settlement discussions that have resulted in the Consent Agreement attached to this Consent
Order which settles all of the allegations in the Notice.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. Respondent 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.
January 11, 2022
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
DAPL-ETCO Operations Management,
LLC,
Respondent.
)
)
)
)
)
)
)
CPF No. 3-2021-049-NOPV
CONSENT AGREEMENT
From April 29, 2019 through August 30, 2019, a representative 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 the procedures, facilities, and records of the
Dakota Access Pipeline, owned and operated by DAPL-ETCO Operations Management, LLC
(DAPL or Respondent), beginning at Stanley, North Dakota and continuing to the east state line
of South Dakota.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated July 22, 2021, a Notice of Probable Violation, Proposed Civil Penalty and
Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice
alleged that Respondent committed probable violations of seven particular pipeline safety
provisions of 49 C.F.R. Part 195, and proposed ordering Respondent to take measures to correct
certain alleged violations and pay a proposed civil penalty in the amount of $93,200 associated
with two items. Two of the alleged violations were brought as warning items. The allegations in
the Notice are expressly applicable to certain locations along the DAPL pipeline as stated therein,
and through this Agreement and are fully resolved.
After requesting and receiving an extension of time to respond to the Notice, DAPL responded to
the Notice and requested a hearing on the alleged violations set forth in the Notice (Response) by
letter dated September 21, 2021. DAPL contested all seven Notice items, even though it had
without admission remedied all of the issues and associated Proposed Compliance Order items
by the time it responded to the Notice. Three of the seven items were addressed at the time of the
inspection and before the Notice was filed. In its Response, DAPL also requested an informal
settlement conference to discuss the alleged violations and warning items in the Notice in
advance of a hearing. Beginning on November 9, 2021 and on subsequent dates, DAPL and
PHMSA (collectively the Parties) met telephonically to discuss a possible resolution of the case



in lieu of proceeding to a hearing. During the meetings, the Parties offered additional information
regarding the allegations, and reached an agreement 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 Respondent
and PHMSA, the Parties hereby agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of the Dakota Access Pipeline
system in North Dakota and South Dakota, Respondent and the Dakota Access Pipeline 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 Respondent 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 Consent 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 Respondent,
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 Respondent’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,
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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 Respondent 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 Respondent’s
pipeline system referenced herein, Respondent will provide a copy of this Agreement to the
prospective transferee at least 30 days prior to such transfer. Respondent 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 system. This Agreement is not a permit,
or a modification of any permit, under any Federal, State, or local laws or regulations.
Respondent 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. Respondent
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. This Agreement does not constitute a finding of violation of any Federal law or
regulation, except as specifically noted as such in this Agreement, and may not be used in any
civil proceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of
a violation of any law, rule, regulation or requirement, except in a proceeding to enforce the
provisions of this Agreement or in future PHMSA enforcement actions.
11. PHMSA further acknowledges that DAPL has, without admission, already
addressed the issues raised in the Notice including the Proposed Compliance Order items to
PHMSA’s satisfaction.
12. Agreement.
Respondent neither admits nor denies any allegation or conclusion in the Notice
or this Agreement, but agrees for purposes of this Agreement to comply with the terms of this
13. II. Upon issuance of the Consent Order, the Parties agree to the following terms.
Items 2 and 5 of the Notice – Warning Items
14. Allegation of Violation - § 195.401(b)(1): With respect to Item 2 of the Notice,
the Parties agree that this item, specific to a nitrogen system at certain gathering system terminal
3



locations (upstream of the mainline at Johnson’s Corner, Watford City, Trenton, Ramberg,
Stanley and Epping), shall be reduced to a Warning Item based on additional information
reviewed by PHMSA regarding compliance with 49 C.F.R. § 195.401(b)(1), including the
actions taken by the DAPL, DAPL’s commitment to continue to monitor the nitrogen system
through the same alarming capabilities previously in place for the control room during all
seasons. Specifically, DAPL installed insulation around the nitrogen bottles located at Johnson’s
Corner, Watford City, Trenton, Ramberg, Stanley and Epping and this will reduce nitrogen
system fluctuations due to temperature. PHMSA acknowledges that DAPL, without admission,
implemented remedial measures in response to and in satisfaction of the Proposed Compliance
Order item summarized below in Section VI. Because this item will be issued as a Warning Item,
it will not constitute a finding of violation for any purpose, and no further action by DAPL is
necessary to achieve compliance.
15. Allegation of Violation - § 195.428(a): With respect to Item 5 of the Notice, the
Parties agree that this item shall be issued as a Warning Item, as set forth in the Notice. DAPL
provided information regarding improvements that have since been put in place, including the
scheduling of required inspection and maintenance via a computerized maintenance management
system and maintenance of completed inspection forms in an electronic database. This Warning
Item does not constitute a finding of violation for any purpose, and no further action by DAPL is
necessary to achieve compliance.
III. Items 4 and 6 of the Notice – Items Withdrawn
16. Allegation of Violation - § 195.406(b): With respect to Item 4 of the Notice, the
Parties agree that this Warning Item shall be withdrawn in its entirety in light of further
information provided by DAPL which confirms that the protective equipment at the Johnson’s
Corner pump station was set at the time of inspection to control the pressure from exceeding
110% maximum operating pressure as required by 49 C.F.R. § 195.406(b). Based on additional
information provided by Respondent and reviewed by PHMSA, PHMSA also agrees that DAPL
took steps, without admission, to address PHMSA’s concerns. DAPL will update its management
of change (MOC) procedures to provide for additional quality assurance / quality control
measures to ensure a cross-check between its engineering staff and field personnel for the
establishment and implementation of setpoints for pressure control. DAPL must provide an
updated procedure to the Director, Central Region within 30 days of the Effective Date of this
Agreement. Because this Warning Item will be withdrawn, it will not constitute a finding of
violation for any purpose. As such, the allegation of violation for Item 4 is withdrawn.
17. Allegation of Violation - § 195.440(c): With respect to Item 6, the Parties agree
that this item should be withdrawn in its entirety following PHMSA’s review of information
provided by DAPL confirming that supplemental enhancements were considered at the time of
inspection in compliance with 49 C.F.R. § 195.440(c), and applicable portions of industry
standards incorporated by reference. PHMSA further agrees that DAPL, without admission,
completed the actions set forth in the associated Proposed Compliance Order item and addressed
in Section VI below. Because this item will be withdrawn, it will not constitute a finding of
4



violation for any purpose, and no further action by Respondent is necessary to achieve
compliance. As such, the allegation of violation for Item 6, the related proposed civil penalty
associated with this item, and the Proposed Compliance Order associated with this item are
withdrawn.
IV. Item 1, 3, and 7 of the Notice – Findings of Violation
18. Allegation of Violation - § 195.264(b)(1)(i): With respect to Item 1 of the Notice,
and based upon further information provided by DAPL, the Parties agree that the terminal
facilities at issue were designed to use a nitrogen discharged foam fire suppression system in lieu
of water given the unavailability of water firefighting resources in the region. Based on that
unique design, the valves inside the dikes were not intended to control drainage in the event of
fire or be operated during a fire event. Respondent nevertheless acknowledges that 49 C.F.R. §
195.264(b)(1)(i) and, through incorporation by reference, National Fire Protection Association
Code 30 (NFPA-30) Section 22.11.2.7.1, requires that “control of drainage shall be accessible
under fire conditions from outside the dike.” As such, PHMSA finds a violation of 49 C.F.R. §
195.264(b)(1)(i) (Item 1). This violation shall be considered by PHMSA as a prior offense in any
future PHMSA enforcement action taken against DAPL. PHMSA acknowledges that DAPL has
undertaken remedial measures, without admission, to satisfy the associated Proposed Compliance
Order item as set forth in Section VI below, and DAPL has additionally agreed that going
forward it will install any future stormwater dike valves outside of the dike. Within 30 days of
the Effective Date of this Agreement, DAPL must provide a written design procedure to the
Director, Central Region, which will require any stormwater dike valves to be installed outside of
the dike areas for its aboveground breakout tanks.
19. Allegation of Violation - § 195.402(a): With respect to Item 3 of the Notice, the
Parties acknowledge, as recognized in PHMSA guidance such as PHMSA’s Gas Transmission
Integrity Management FAQ-10, that it is a detailed and time intensive effort to integrate new
assets into existing Operations and Maintenance (O&M) procedures and Integrity Management
(IM) plans. While DAPL believes the retired O&M procedures referenced in the DAPL IM plan
at the time of inspection were nevertheless compliant with applicable requirements of 49 C.F.R.
Part 195 at the time, PHMSA finds a violation of 49 C.F.R. § 195.402(a). This violation shall be
considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against
DAPL. PHMSA recognizes that DAPL corrected this issue without admission during the
underlying inspection by updating the procedures to remove reference to the previously included
retired procedures that were no longer applicable, and that no further action is required by DAPL
to achieve compliance.
20. Allegation of Violation - § 195.452(f)(1): With respect to Item 7 of the Notice,
DAPL explained that the risk of high consequence areas (HCAs) was considered in the original
facility design through preventative and mitigative measures which addressed the risk of
impacting additional HCAs. Respondent has, without admission, satisfied the associated
Proposed Compliance Order item as set forth in Section VI below. While no additional action is
required of Respondent, PHMSA finds a violation of 49 C.F.R. § 195.452(f)(1). This violation
5



shall be considered by PHMSA as a prior offense in any future PHMSA enforcement action
taken against DAPL.
V. Proposed Civil Penalty
21. The Notice alleged one instance of violation for Items 3 and 6 and proposed a
civil penalty of $46,600 for each violation, for a total of $93,200. During the informal meetings
between the Parties, and as summarized above, DAPL provided additional documentation for
PHMSA review demonstrating that a reduced penalty is appropriate from Item 3, and that no
violation occurred for Item 6, resulting in no civil penalty for that item.
Accordingly, the civil penalty for Item 3 shall be $20,000 and the proposed civil penalty
for Item 6 of $46,600 is withdrawn in its entirety.
VI. Proposed Compliance Order Items
22. Item 1: The Parties agree that DAPL, without admission, has demonstrated that it
satisfied the associated Proposed Compliance Order by relocating the relevant valves for the
drainage of stormwater outside of the diking at Epping Terminal, Johnson's Corner Terminal,
Ramberg Terminal, Stanley Terminal, Trenton Terminal, and Watford City Terminal.
23. Item 2: The Parties agree that DAPL, without admission, has satisfied PHMSA’s
Proposed Compliance Order seeking modifications to its nitrogen operated relief valves
operations for Johnson’s Corner, Watford City, Trenton, Ramburg, Stanley, and Epping
locations.
24. Item 6: The Parties agree that DAPL, without admission, has satisfied PHMSA’s
Proposed Compliance Order regarding supplemental program enhancements greater than the
standard 660-foot buffer where warranted.
25. Item 7: The Parties agree that DAPL, without admission, has previously
demonstrated compliance with the Proposed Compliance Order by developing procedures to
review spill volume calculations and the potential impact to an HCA or could affect area,
pursuant to the requirements of 49 CFR § 195.452, including evaluation of drain down volumes
associated with common station valve configurations, operations, and elevations should a failure
occur outside of secondary containment such as in the manifold area of facilities.
VII. Enforcement
26. 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 $225,134 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
6



Associate Administrator. The maximum civil penalty amounts are adjusted annually for inflation.
See 49 C.F.R. § 190.223.
VIII. Dispute Resolution
27. The Director and Respondent will informally attempt to resolve any disputes
arising under this Agreement, including but not limited to any decision of the Director. If
Respondent and the Director are unable to informally resolve the dispute within 15 calendar days
after the dispute is first raised, in writing, to the Director, Respondent may submit a written
request for a determination resolving the dispute from the Associate Administrator for Pipeline
Safety, PHMSA. Such request must be made in writing and provided to the Director, counsel for
the Central Region, and to the Associate Administrator for Pipeline Safety, no later than 10
calendar days from the 15 day deadline for informal resolution referenced in this paragraph.
Along with its request, Respondent must provide the Associate Administrator with all
information Respondent believes is relevant to the dispute. Decisions of the Associate
Administrator under this paragraph will constitute final agency action. The existence of a dispute
and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any
term or timeframe for completion of any work to be performed under this Agreement during the
pendency of the dispute resolution process, except as agreed by the Director or the Associate
Administrator in writing, or ordered by a court of competent jurisdiction.
IX. Effective Date
28. 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.
X. Modification
29. 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.
X. Ratification
30. 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.
31. The Parties hereby agree to all conditions and terms of this Agreement.
[Signature Lines on Following Page]
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For DAPL-ETCO Operations, LLC:
Date
For PHMSA:
Date
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