{"operation":"document","citation":"CPF 32022025NOPV","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":"2022-10-14","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.579(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022025nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022025nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022025nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022025NOPV","body":"Notice of Probable Violation involving TC OIL PIPELINE OPERATIONS INC. PHMSA's enforcement data identifies the cited regulation as 195.579(a). The case was opened on 2022-10-14 and is reported as closed as of 2023-05-02. Proposed civil penalty: $518,400. Assessed civil penalty: $259,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022025NOPV_Closure Letter_05022023_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Closure%20Letter_05022023_(20-182827).pdf\n\n32022025NOPV_Closure Letter_05022023_(20-182827)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Closure%20Letter_05022023_(20-182827)_text.pdf\n\n32022025NOPV_Consent Agreement and Order_04122023_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Consent%20Agreement%20and%20Order_04122023_(20-182827).pdf\n\n32022025NOPV_Consent Agreement and Order_04122023_(20-182827)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Consent%20Agreement%20and%20Order_04122023_(20-182827)_text.pdf\n\n32022025NOPV_Operator RtN and Request for Hearing_11302022_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Operator%20RtN%20and%20Request%20for%20Hearing_11302022_(20-182827).pdf\n\n32022025NOPV_Operator Withdrawal of Hearing Request_04202023_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_04202023_(20-182827).pdf\n\n32022025NOPV_PCP PCO_10142022_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PCP%20PCO_10142022_(20-182827).pdf\n\n32022025NOPV_PCP PCO_10142022_(20-182827)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PCP%20PCO_10142022_(20-182827)_text.pdf\n\n32022025NOPV_PHC Hearing Scheduled_01112023_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PHC%20Hearing%20Scheduled_01112023_(20-182827).pdf\n\n32022025NOPV_PHC Hearing Scheduled_01112023_(20-182827)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PHC%20Hearing%20Scheduled_01112023_(20-182827)_text.pdf\n\n32022025NOPV_Consent Agreement and Order_04122023_(20-182827)_text.pdf\n\nApril 12, 2023\nVIA ELECTRONIC MAIL TO: richard prior@tcenergy.com\nRichard Prior\nPresident, Liquids\nTC Oil Pipeline Operations, Inc.\n700 Louisiana Street, Suite 700\nHouston, Texas 77002\nCPF No. 3-2022-025-NOPV\nDear Mr. Prior:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween the Pipeline and Hazardous Materials Safety Administration (PHMSA) and TC Oil\nPipeline Operations, Inc., which was executed on April 11, 2023. Service of the Consent Order\nand Consent Agreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise 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: Consent Order and Consent Agreement\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\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. 3-2022-025-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated October 14, 2022, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice) to TC Oil Pipeline Operations, Inc. (TC\nOil or Respondent).\nIn response to the Notice, Respondent requested a hearing on Item 1 (Response). TC Oil also\nasked for the opportunity to meet informally with PHMSA to discuss Item 1 of the Notice.\nRespondent and PHMSA (the Parties) subsequently met to discuss the issues raised in the\nResponse. As a result of those discussions, as explained in more detail below, the Parties have\nagreed to a Consent Agreement, which finds a violation, finds that the terms of the proposed\ncompliance order have been completed, and assesses a reduced civil penalty of $259,200.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. TC Oil is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and\n49 C.F.R. § 190.223.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nApril 12, 2023\n__________________________ ______________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\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. 3-2022-025-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom May 12 to May 13, 2020, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), performed a specialized inspection of TC Oil Pipeline Operations,\nInc.’s (TC Oil or Respondent) Lucas delivery facility in Beaumont, Texas, following a crude oil\nspill that occurred there on May 7, 2020.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated October 14, 2022, a Notice of Probable Violation, Proposed Compliance Order\nand Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that TC Oil committed a violation of 49 C.F.R. Part 195 (Item 1), proposed\nordering Respondent to take certain measures to correct the alleged violation, and proposed a\ncivil penalty of $518,400.\nTC Oil responded to the Notice by letter dated November 30, 2022 (Response). The company\nrequested a hearing on Item 1 of the Notice and an informal meeting to discuss the allegation of\nviolation. PHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in\nthe Response. As a result of those discussions and as explained in more detail below, the Parties\nhave agreed to a Consent Agreement, which finds a violation, finds that the terms of the\nproposed compliance order have been completed and assesses a reduced civil penalty of\n$259,200.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent\nand agreement, the Parties hereby agree as follows:\n\n\n\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,\nand the regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its request for an administrative\nhearing regarding the Notice upon receipt of the signed Agreement.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\n\n\n\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of\nviolation of any other federal law or regulation and may not be used in any civil proceeding of\nany kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any\nlaw, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this\nAgreement or in future PHMSA enforcement actions.\n11. Upon issuance of the Consent Order, the Parties agree to the following terms.\nII. Findings of Violation:\n12. Item 1- 49 C.F.R. § 195.579(a): The Notice alleged TC Oil failed to investigate\nthe corrosive effect of crude oil in the surge relief piping at the Lucas delivery facility and take\nadequate steps to mitigate internal corrosion. Respondent does not contest the allegation of\nviolation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.579(a).\n13. Item 1 will be considered by PHMSA as a prior offense in any future PHMSA\nenforcement action taken against Respondent for the five (5)-year period following the Effective\nDate of this Agreement.\nIII. Civil Penalty:\n14. Item 1: The Notice proposed assessing a civil penalty in the amount of $518,400\nfor Item 1. Respondent requested a reduction of the proposed civil penalty and provided\nmitigating information. PHMSA agrees to a reduced civil penalty based on consideration of\nadditional information provided by Respondent. Specifically, PHMSA finds that there was little\nor no known environmental damage. Respondent agrees to pay a reduced, total civil penalty in\nthe amount of $259,200 for the violation in Item 1, pursuant to the payment instructions at 49\nC.F.R. § 190.227(a), to be paid in full no later than 20 days from the Effective Date of this\nAgreement.\nIV. Compliance Order:\n\n\n\n15. Item 1: The Notice proposed certain compliance order actions to address the\nalleged non-compliance. Since the accident occurred, TC Oil committed to working with\nPHMSA in investigating the cause of the release, evaluated integrity of surge relief lines, and\ndeveloped procedures to address internal corrosion at facilities. As such, TC Oil completed the\nterms required by the proposed compliance order. Therefore, it is not necessary to include the\nproposed compliance terms in this Consent Agreement.\nV. Enforcement:\n16. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $257,664 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\nVI. Dispute Resolution:\n17. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including any decision of the Director under the terms of Section\nIV. Compliance Order. If Respondent and the Director are unable to informally resolve the\ndispute within 15 calendar days after the dispute is first raised, in writing, to the Director,\nRespondent may submit a written request for a determination resolving the dispute from the\nAssociate Administrator for Pipeline Safety, PHMSA. Such request must be made in writing and\nprovided to the Director, counsel for the Central Region, and to the Associate Administrator for\nPipeline Safety, no later than 10 calendar days from the 15-day deadline for informal resolution\nreferenced in this paragraph. Along with its request, Respondent must provide the Associate\nAdministrator with all information Respondent believes is relevant to the dispute. Decisions of\nthe Associate Administrator under this paragraph will constitute final agency action. The\nexistence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse,\ntoll, or suspend any term or timeframe for completion of any work to be performed under this\nAgreement during the pendency of the dispute resolution process.\nVII. Effective Date:\n18. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nVIII. Recordkeeping and Information Disclosure:\n19. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed. For any reports, plans, or\nother deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent\n\n\n\nmay assert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be submitted to\nPHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must\nmark the claim of confidentiality in writing on each page, and include a statement specifying the\ngrounds for each claim of confidentially. PHMSA determines release of any information\nsubmitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of\nInformation Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations\nand Executive Orders.\nIX. Modification:\n20. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nX. Termination:\n21. This Agreement will remain in effect until the Civil Penalty in Section III is\nsatisfied, as reasonably and timely determined by the Director. The Agreement shall not\nterminate until the Director confirms, in writing, that the Agreement is terminated in accordance\nwith this paragraph. Nothing in this Agreement prevents Respondent from completing any of the\nobligations earlier than the deadlines provided for in this Agreement.\nXI. Ratification:\n22. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n23. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor TC Oil Pipeline Operations, Inc.:\n___________________________________\nRichard Prior\nPresident, Liquids\n________________________\nDate\nFor PHMSA:\n_____________________________________________\nGregory Ochs\nDirector, Central Region, Office of Pipeline Safety\n________________________\nDate\n\n32022025NOPV_Closure Letter_05022023_(20-182827)_text.pdf\n\nVIA ELECTRONIC MAIL TO: richard prior@tcenergy.com; erik hughes@tcenergy.com;\ndan_cerkoney@tcenergy.com; jessica_kirstine@tcenergy.com\nMay 2, 2023\nRichard Prior\nPresident, Liquids\nTC Oil Pipeline Operations, Inc.\n700 Louisiana Street, Suite 700\nHouston, Texas 77002\nRE: CPF 3-2022-025-NOPV\nDear Mr. Prior:\nOn April 12, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to TC Oil Pipeline Operations, Inc. (TC) a Consent Order (Order) which included a\nfinding that the terms of the proposed Compliance Order set forth in the Consent Agreement\nhave been completed except for payment of a Civil Penalty Assessment in the above-referenced\ncase.. Based on confirmation of payment of the civil penalty on April 26, 2023, it has been\ndetermined that TC has complied with the terms of this Order.\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, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Erik Hughes, Senior Manager Regulatory Compliance, erik_hughes@tcenergy.com\nDan Cerkoney, Interim Director Regulatory Compliance, dan cerkoney@tcenergy.com\nJessica Kirstine; Vice-President, Systems Operations & Engineering,\njessica_kirstine@tcenergy.com\n\n32022025NOPV_PHC Hearing Scheduled_01112023_(20-182827)_text.pdf\n\nJanuary 11, 2023\nVIA ELECTRONIC MAIL TO: gary salsman@tcenergy.com and gregory.ochs@dot.gov\nMr. Gary Salsman\nVice President, Liquids Field Operations\nTC Oil Operations, Inc.\n450 1st Street, S.W.\nCalgary, Alberta, T2P 5H1\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, MO 64106-2641\nRe: Notice of Hearing, TC Oil Operations, Inc.\nCPF No. 3-2022-025-NOPV\nDear Mr. Salsman and Mr. Ochs:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on May 10, 2023, beginning at 8:30 a.m. Central Time.\nThe hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480, Kansas\nCity, Missouri 64106. Upon arrival at the building, attendees will be required to present photo\nidentification to security personnel. A contact phone number for the day of the hearing is (816)\n329-3800.\nAt least 10 calendar days prior to the hearing (or by May 1, 2023), both parties must submit and\nexchange any additional written materials they intend to present at the hearing and the name and\nemail address of each attendee. This information should be provided electronically. Materials not\nsubmitted by this date may be excluded. If you have any questions, please do not hesitate to contact\nme.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Mr. Dan Cerkoney, Interim Director, Regulatory Compliance, TC Oil Operations, Inc.,\ndan_cerkoney@tcenergy.com\nMr. Erik Hughes, Senior Manager, Regulatory Compliance, TC Oil Operations, Inc.,\nerik_hughes@tcenergy.com\nMr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety,\njoseph.hainline@dot.gov","truncated":false,"body_characters":22100}