{"operation":"document","citation":"CPF 32022002WL","title":"PATOKA TERMINAL COMPANY, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-05-31","effective_on":null,"summary":"CLOSED warning letter citing 195.505(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022002wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022002wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022002wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022002WL","body":"Warning Letter involving PATOKA TERMINAL COMPANY, LLC. PHMSA's enforcement data identifies the cited regulation as 195.505(b). The case was opened on 2022-05-31 and is reported as closed as of 2022-05-31. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022002WL_Warning Letter_05312022_(21-201332).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022002WL/32022002WL_Warning%20Letter_05312022_(21-201332).pdf\n\n32022002WL_Warning Letter_05312022_(21-201332)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022002WL/32022002WL_Warning%20Letter_05312022_(21-201332)_text.pdf\n\n32022002WL_Warning Letter_05312022_(21-201332)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: rclark@patokaterminal.com; jhinton@patokaterminal.com\nMay 31, 2022\nRichard Clark\nTerminal Manager and President\nPatoka Terminal Company, LLC\n1402 Dickey Pond Rd\nVernon, IL 62892\nCPF 3-2022-002-WL\nDear Mr. Clark:\nFrom September 13 through16, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Patoka Terminal Company, LLC (Patoka) procedures, records and field assets in\nVernon, IL.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n1. § 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(b) Ensure through evaluation that individuals performing covered tasks are\nqualified;\nPatoka failed to ensure through evaluation that individuals performing covered tasks were\nqualified. Specifically, Patoka failed to ensure certain individuals were properly qualified\nbetween 2017 and 2020 while performing the covered tasks of 1) Inspecting, operating and\nmaintaining valves, and 2) Inspecting and maintaining pressure limiting and regulating devices.\n\n\n\nA review of the records for performing the specified covered tasks and the associated operator\nqualification (OQ) records provided for the individuals who conducted these tasks indicated the\nfollowing:\n1. Three Patoka employees were not properly qualified on Covered Task ID “716OP-\nInspect, Maintain, and Operate Valves” due to the unfulfillment of the qualification\nrequirement from 2017 to 2020. One individual performed the inspection and\nmaintenance of a regulated mainline valve on May 19, 2019, under the qualification for\nCovered Task ID “007OP- Operate Valves”, which does not pertain to the inspection and\nmaintenance of regulated valves activity. The same individual later completed an online\ntraining course relevant to the proper covered task on June 19, 2019, and performed\nanother inspection and maintenance activity of the mainline valve on December 19,\n2019. However, providing online training appropriate to the task without evaluating the\nqualifying employee in the field through observation and oral examination does not\nsatisfy the qualification requirement. The qualification requirement was later fulfilled\nwhen Patoka conducted the in-field evaluation of the individual on April 20, 2020.\nA similar situation occurred with the other two Patoka employees who jointly completed\nthe inspection and maintenance of the mainline valve on April 22, 2020, while not being\nfully qualified nor working under the direction and observation of a qualified individual.\nThe two employees received online training appropriate to the task on March 18 and 23,\n2020 and passed the in-field observation and oral exam evaluation on September 14,\n2020 and April 23, 2020, respectively. The in-field evaluation of the two employees\nshould have been completed prior to the performance of the task.\n2. An employee was not properly qualified and did not work under the direction and\nobservation of a qualified individual during the performance of the Covered Task ID\n“714OP- Inspect and Maintain Pressure Limiting and Regulating Devices” in 2019 and\n2020. This employee performed a total of three inspection and maintenance activities of\na regulated thermal relief valve on January 23, 2019, June 07, 2019, and April 02, 2020,\nwhen the qualification requirement had not been fulfilled. The qualification requirement\nfor the covered task is based on completing the online training course and conducting an\nobservation and oral examination of the qualifying employee in the field. However, the\nOQ records for the employee do not show prior completion dates for online training\nappropriate to the task other than March 18, 2020. Furthermore, the in-field evaluation\nof the employee was conducted on September 14, 2020, as indicated by the OQ records.\nThe qualification requirement should have been satisfied for the employee to be\nconsidered qualified on the task.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a\nrelated series of violations. For violation occurring on or after May 3, 2021 and before March\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for2\n\n\n\na related series of violations. For violation occurring on or after July 31, 2019 and before\nJanuary 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the\nviolation persists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nPatoka Terminal Company, LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\n3-2022-002-WL. Be advised that all material you submit in response to this enforcement action\nis subject to being made publicly available. If you believe that any portion of your responsive\nmaterial qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete\noriginal document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Jesse Hinton, Terminal Manager Assistant, jhinton@patokaterminal.com\n3","truncated":false,"body_characters":7481}