# TC OIL PIPELINE OPERATIONS INC — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.579(a).
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- **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.

Official case documents:

32022025NOPV_Closure Letter_05022023_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Closure%20Letter_05022023_(20-182827).pdf

32022025NOPV_Closure Letter_05022023_(20-182827)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_Closure%20Letter_05022023_(20-182827)_text.pdf

32022025NOPV_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

32022025NOPV_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

32022025NOPV_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

32022025NOPV_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

32022025NOPV_PCP PCO_10142022_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PCP%20PCO_10142022_(20-182827).pdf

32022025NOPV_PCP PCO_10142022_(20-182827)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PCP%20PCO_10142022_(20-182827)_text.pdf

32022025NOPV_PHC Hearing Scheduled_01112023_(20-182827).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022025NOPV/32022025NOPV_PHC%20Hearing%20Scheduled_01112023_(20-182827).pdf

32022025NOPV_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

32022025NOPV_Consent Agreement and Order_04122023_(20-182827)_text.pdf

April 12, 2023
VIA ELECTRONIC MAIL TO: richard prior@tcenergy.com
Richard Prior
President, Liquids
TC Oil Pipeline Operations, Inc.
700 Louisiana Street, Suite 700
Houston, Texas 77002
CPF No. 3-2022-025-NOPV
Dear Mr. Prior:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement
between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and TC Oil
Pipeline Operations, Inc., which was executed on April 11, 2023. Service of the Consent Order
and Consent Agreement by electronic mail is deemed effective upon the date of transmission and
acknowledgement of receipt, 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: Consent Order and Consent Agreement
cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
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 )
TC Oil Pipeline Operations, Inc., ) CPF No. 3-2022-025-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated October 14, 2022, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed
Civil Penalty, and Proposed Compliance Order (Notice) to TC Oil Pipeline Operations, Inc. (TC
Oil or Respondent).
In response to the Notice, Respondent requested a hearing on Item 1 (Response). TC Oil also
asked for the opportunity to meet informally with PHMSA to discuss Item 1 of the Notice.
Respondent and PHMSA (the Parties) subsequently met to discuss the issues raised in the
Response. As a result of those discussions, as explained in more detail below, the Parties have
agreed to a Consent Agreement, which finds a violation, finds that the terms of the proposed
compliance order have been completed, and assesses a reduced civil penalty of $259,200.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. TC Oil is hereby ordered to comply with the terms of the Consent Agreement
pursuant to its terms. 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 U.S.C. § 60122 and
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.
April 12, 2023
__________________________ ______________________
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 )
TC Oil Pipeline Operations, Inc., ) CPF No. 3-2022-025-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From May 12 to May 13, 2020, 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.), performed a specialized inspection of TC Oil Pipeline Operations,
Inc.’s (TC Oil or Respondent) Lucas delivery facility in Beaumont, Texas, following a crude oil
spill that occurred there on May 7, 2020.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated October 14, 2022, a Notice of Probable Violation, Proposed Compliance Order
and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice
proposed finding that TC Oil committed a violation of 49 C.F.R. Part 195 (Item 1), proposed
ordering Respondent to take certain measures to correct the alleged violation, and proposed a
civil penalty of $518,400.
TC Oil responded to the Notice by letter dated November 30, 2022 (Response). The company
requested a hearing on Item 1 of the Notice and an informal meeting to discuss the allegation of
violation. PHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in
the Response. As a result of those discussions and as explained in more detail below, the Parties
have agreed to a Consent Agreement, which finds a violation, finds that the terms of the
proposed compliance order have been completed and assesses a reduced civil penalty of
$259,200.
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 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent
and agreement, the Parties hereby agree as follows:



I. General Provisions
1. Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced pipeline facilities 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 Consent Agreement (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 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 for the Dispute Resolution
provisions set forth herein. Respondent agrees to withdraw its request for an administrative
hearing regarding the Notice upon receipt of the signed Agreement.
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,
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 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.
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. Except as set forth herein, this Agreement does not constitute a finding of
violation of any other federal law or regulation 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. Upon issuance of the Consent Order, the Parties agree to the following terms.
II. Findings of Violation:
12. Item 1- 49 C.F.R. § 195.579(a): The Notice alleged TC Oil failed to investigate
the corrosive effect of crude oil in the surge relief piping at the Lucas delivery facility and take
adequate steps to mitigate internal corrosion. Respondent does not contest the allegation of
violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.579(a).
13. Item 1 will be considered by PHMSA as a prior offense in any future PHMSA
enforcement action taken against Respondent for the five (5)-year period following the Effective
Date of this Agreement.
III. Civil Penalty:
14. Item 1: The Notice proposed assessing a civil penalty in the amount of $518,400
for Item 1. Respondent requested a reduction of the proposed civil penalty and provided
mitigating information. PHMSA agrees to a reduced civil penalty based on consideration of
additional information provided by Respondent. Specifically, PHMSA finds that there was little
or no known environmental damage. Respondent agrees to pay a reduced, total civil penalty in
the amount of $259,200 for the violation in Item 1, pursuant to the payment instructions at 49
C.F.R. § 190.227(a), to be paid in full no later than 20 days from the Effective Date of this
Agreement.
IV. Compliance Order:



15. Item 1: The Notice proposed certain compliance order actions to address the
alleged non-compliance. Since the accident occurred, TC Oil committed to working with
PHMSA in investigating the cause of the release, evaluated integrity of surge relief lines, and
developed procedures to address internal corrosion at facilities. As such, TC Oil completed the
terms required by the proposed compliance order. Therefore, it is not necessary to include the
proposed compliance terms in this Consent Agreement.
V. Enforcement:
16. 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 $257,664 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 the
determinations made by the Director, or in accordance with decisions of the Associate
Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil
penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.
VI. Dispute Resolution:
17. The Director and Respondent will informally attempt to resolve any disputes
arising under this Agreement, including any decision of the Director under the terms of Section
IV. Compliance Order. 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.
VII. Effective Date:
18. 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.
VIII. Recordkeeping and Information Disclosure:
19. Unless otherwise required in this Agreement, Respondent agrees to maintain
records demonstrating compliance with all requirements of this Agreement for a period of at
least five (5) years following completion of all work to be performed. For any reports, plans, or
other deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent



may assert a claim of business confidentiality or other protections applicable to the release of
information by PHMSA, covering part or all of the information required to be submitted to
PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must
mark the claim of confidentiality in writing on each page, and include a statement specifying the
grounds for each claim of confidentially. PHMSA determines release of any information
submitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of
Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations
and Executive Orders.
IX. Modification:
20. 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. Termination:
21. This Agreement will remain in effect until the Civil Penalty in Section III is
satisfied, as reasonably and timely determined by the Director. The Agreement shall not
terminate until the Director confirms, in writing, that the Agreement is terminated in accordance
with this paragraph. Nothing in this Agreement prevents Respondent from completing any of the
obligations earlier than the deadlines provided for in this Agreement.
XI. Ratification:
22. 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.
23. The Parties hereby agree to all findings, conditions, and terms of this Agreement.
[Signature Lines on Following Page]



For TC Oil Pipeline Operations, Inc.:
___________________________________
Richard Prior
President, Liquids
________________________
Date
For PHMSA:
_____________________________________________
Gregory Ochs
Director, Central Region, Office of Pipeline Safety
________________________
Date

32022025NOPV_Closure Letter_05022023_(20-182827)_text.pdf

VIA ELECTRONIC MAIL TO: richard prior@tcenergy.com; erik hughes@tcenergy.com;
dan_cerkoney@tcenergy.com; jessica_kirstine@tcenergy.com
May 2, 2023
Richard Prior
President, Liquids
TC Oil Pipeline Operations, Inc.
700 Louisiana Street, Suite 700
Houston, Texas 77002
RE: CPF 3-2022-025-NOPV
Dear Mr. Prior:
On April 12, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to TC Oil Pipeline Operations, Inc. (TC) a Consent Order (Order) which included a
finding that the terms of the proposed Compliance Order set forth in the Consent Agreement
have been completed except for payment of a Civil Penalty Assessment in the above-referenced
case.. Based on confirmation of payment of the civil penalty on April 26, 2023, it has been
determined that TC has 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, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Erik Hughes, Senior Manager Regulatory Compliance, erik_hughes@tcenergy.com
Dan Cerkoney, Interim Director Regulatory Compliance, dan cerkoney@tcenergy.com
Jessica Kirstine; Vice-President, Systems Operations & Engineering,
jessica_kirstine@tcenergy.com

32022025NOPV_PHC Hearing Scheduled_01112023_(20-182827)_text.pdf

January 11, 2023
VIA ELECTRONIC MAIL TO: gary salsman@tcenergy.com and gregory.ochs@dot.gov
Mr. Gary Salsman
Vice President, Liquids Field Operations
TC Oil Operations, Inc.
450 1st Street, S.W.
Calgary, Alberta, T2P 5H1
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, TC Oil Operations, Inc.
CPF No. 3-2022-025-NOPV
Dear Mr. Salsman 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 May 10, 2023, beginning at 8:30 a.m. Central Time.
The hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480, Kansas
City, Missouri 64106. Upon arrival at the building, attendees will be required to present photo
identification to security personnel. A contact phone number for the day of the hearing is (816)
329-3800.
At least 10 calendar days prior to the hearing (or by May 1, 2023), 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,
Larry White
Presiding Official



cc: Mr. Dan Cerkoney, Interim Director, Regulatory Compliance, TC Oil Operations, Inc.,
dan_cerkoney@tcenergy.com
Mr. Erik Hughes, Senior Manager, Regulatory Compliance, TC Oil Operations, Inc.,
erik_hughes@tcenergy.com
Mr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety,
joseph.hainline@dot.gov
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