{"operation":"document","citation":"CPF 32023006NOPV","title":"COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-05-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.579(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023006nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023006nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023006nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023006NOPV","body":"Notice of Probable Violation involving COFFEYVILLE RESOURCES CRUDE TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulation as 195.579(a). The case was opened on 2023-05-04 and is reported as closed as of 2025-03-03. Proposed civil penalty: $804,300. Assessed civil penalty: $268,100. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023006NOPV_Closure Letter_03032025_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Closure%20Letter_03032025_(22-235672).pdf\n\n32023006NOPV_Closure Letter_03032025_(22-235672)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Closure%20Letter_03032025_(22-235672)_text.pdf\n\n32023006NOPV_Consent Agreement and Order_01032024_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Consent%20Agreement%20and%20Order_01032024_(22-235672).pdf\n\n32023006NOPV_Consent Agreement and Order_01032024_(22-235672)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Consent%20Agreement%20and%20Order_01032024_(22-235672)_text.pdf\n\n32023006NOPV_Operator Response to Notice_06022023_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_Operator%20Response%20to%20Notice_06022023_(22-235672).pdf\n\n32023006NOPV_PCP PCO_05042023_(22-235672).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_PCP%20PCO_05042023_(22-235672).pdf\n\n32023006NOPV_PCP PCO_05042023_(22-235672)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023006NOPV/32023006NOPV_PCP%20PCO_05042023_(22-235672)_text.pdf\n\n32023006NOPV_Consent Agreement and Order_01032024_(22-235672)_text.pdf\n\nJanuary 3, 2024\nVIA ELECTRONIC MAIL TO: dllamp@cvrenergy.com\nDavid Lamp\nPresident and Chief Executive Officer\nCVR Partners, LP\nP.O. Box 3516\n411 N.E. Washington Boulevard\nBartlesville, Oklahoma 74006\nCPF No. 3-2023-006-NOPV\nDear Mr. Lamp:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Coffeyville Resources\nCrude Transportation, LLC (CRCT), which was executed on December 27, 2023. Service of the\nConsent Order and Consent Agreement by electronic mail is deemed effective upon the date of\ntransmission and acknowledgement 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 A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Keith Kuehn, Vice President, Crude Transportation, CRCT, kakuehn@cvrenergy.com\nMr. Blake Record, DOT Compliance Primary, CRCT, brecord@cvrenergy.com\nMr. Jeffrey Hunter, Outside Counsel for CRCT, jhunter@perkinscoie.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____________________________________\n)\nIn the Matter of )\n)\nCOFFEYVILLE RESOURCES )\nCRUDE TRANSPORTATION, LLC, ) CPF No. 3-2023-006-NOPV\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated May 4, 2023, 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 Coffeyville Resources Crude\nTransportation, LLC (CRCT or Respondent).\nIn response to the Notice, Respondent contested the allegation of violation contained in the\nNotice but did not request a formal hearing on the matter. CRCT did ask for the opportunity to\nmeet informally with PHMSA to discuss the calculation of the civil penalty in the Notice.\nRespondent and PHMSA (The Parties) subsequently met to discuss the issues raised in the\nResponse on August 30, 2023. Following the informal discussion, CRCT submitted\nsupplemental information in a response sent October 2, 2023. The supplemental response\nasserted further argument for Respondent’s position that the proposed civil penalty should be\nlowered. As a result of those discussions, as explained in more detail below, the Parties have\nagreed to a Consent Agreement by which the civil penalty is assessed to be $268,100.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. CRCT 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 49\nC.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of\nthe United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nJanuary 3, 2024\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 )\nCOFFEYVILLE RESOURCES )\nCRUDE TRANSPORTATION, LLC, ) CPF No. 3-2023-006-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom February through August 2022, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), investigated the February 10, 2022 reported release of\napproximately 720 barrels of crude oil from an eight-inch Valley pipeline controlled by\nCoffeyville Resources Crude Transportation, LLC (CRCT or Respondent) in Crowley County,\nKansas.\nAs a result of the investigation, the Director, Central Region, OPS (Director), issued to\nRespondent, by letter dated May 4, 2023, a Notice of Probable Violation, Proposed Compliance\nOrder, and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that CRCT committed violations of one provision of 49 C.F.R. Part 195 (Item\n1), proposed ordering Respondent to take certain measures to correct the alleged violation, and\nproposed a civil penalty of $804,300.\nCRCT responded to the Notice by letter dated June 2, 2023 (Response). Respondent contested\nthe allegation of violation contained in the Notice but did not request a hearing on the matter.\nCRCT requested an informal meeting with PHMSA to discuss the calculation of the civil penalty\nproposed in the Notice.\nPHMSA and Respondent (the Parties) subsequently met on August 30, 2023, to discuss the\nissues raised in the Response. As a result of those discussions and as explained in more detail\nbelow, the Parties have agreed to a Consent Agreement by which PHMSA makes a finding of\nviolation, assesses a reduced civil penalty of $268,100, and orders certain corrective action be\ncompleted.\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\n\n\n\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:\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, the\nAssociate 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.\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.\n\n\n\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\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 permit,\nor 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. Agreement.\nRespondent neither admits nor denies any allegation or conclusion in the Notice\nor this Agreement but agrees for purposes of this Agreement to comply with the terms of this\nII. Finding of Violation:\n12. Item 1- 49 C.F.R. § 195.579: The Notice alleged Respondent failed to investigate\nthe corrosive effect of the hazardous liquid on its pipeline or take adequate steps to mitigate\ninternal corrosion. Specifically, the Notice alleged that during the investigation of the February\n10, 2022, reported release, PHMSA found that the leak originated from a dead leg segment of\npipe that had not been included in the Valley pipeline threat matrix due to ineffective CRCT\ninternal communications. Respondent contested the allegation in the Notice. Upon further\ndiscussions between the Parties, without admitting or denying the allegation of violation for this\nitem, Respondent agrees to accept the finding of the violation for purposes of settlement.\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.\n\n\n\nIII. Civil Penalty:\n14. Item 1: The Notice proposed assessing a civil penalty in the amount of $804,300\nfor Item 1. Respondent requested a reduction of the proposed civil penalty, and, with its\nresponses, provided new information and evidence to support its request. After consideration of\nthe new information and evidence provided by Respondent, PHMSA agrees to a reduced civil\npenalty. Specifically, Respondent provided evidence in the form of a report from the Kansas\nDepartment of Health and Environment indicating there was little or no known environmental\nharm from the release. Consequently, a reduction of the civil penalty calculation multiplier\nreflecting the limited impact of the release is appropriate, which results in a civil penalty of\n$268,100. Respondent agrees to pay a reduced civil penalty in the amount of $268,100 for the\nviolation in Item 1.\n15. Respondent shall pay a total civil penalty in the amount of $268,100, pursuant to\nthe payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20 days from\nthe Effective Date of this Agreement.\nIV. Compliance Order:\n16. Item 1: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order.\nAs such, Respondent agrees to perform the following corrective measures:\nA. In regard to Item 1 of the Notice pertaining to CRCT’s failure to monitor and\nmitigate internal corrosion, CRCT must, within 90 days of the Final Order,\nprovide an updated internal corrosion monitoring procedure that includes a\nprocess to periodically survey its pipeline segments for dead leg segments.\nV. Enforcement:\n17. 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. All work plans and\nassociated schedules set forth or referenced in Section IV are automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVI. Review and Approval Process:\n18. With respect to any submission under Section IV (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\n\n\n\nDirector approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent a written\nnotice of the deficiencies. Respondent will correct all deficiencies within the time specified by\nthe Director and resubmit it for approval.\nVII. Dispute Resolution:\n19. 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.\nVIII. Effective Date:\n20. 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.\nIX. Recordkeeping and Information Disclosure:\n21. 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\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 mark\nthe 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.\n\n\n\nX. Modification:\n22. 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.\nXI. Termination:\n23. This Agreement will remain in effect until the Compliance Order in Section IV\nand the Civil Penalty in Section III are satisfied, as determined by the Director. The Agreement\nshall not terminate until the Director confirms, in writing, that the Agreement is terminated in\naccordance with this paragraph. Nothing in this Agreement prevents Respondent from\ncompleting any of the obligations earlier than the deadlines provided for in this Agreement.\nXII. Ratification:\n24. 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.\n25. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor Coffeyville Resources Crude Transportation, LLC:\n___________________________________\nKeith Kuehn, Vice President Pipelines, Coffeyville Resources Crude Transportation, LLC\n________________________\nDate:\nFor PHMSA:\n________________________________________\nDirector, Central Region, Office of Pipeline Safety\n________________________\nDate:\n\n32023006NOPV_Closure Letter_03032025_(22-235672)_text.pdf\n\nVIA ELECTRONIC MAIL TO: dgsloan@CVREnergy.com; brecord@cvrenergy.com;\nbrandon@enservsolutions.com\nMarch 3, 2025\nMr. Don Sloan – VP, Crude Transportation Pipeline\nCoffeyville Resources Crude Transportation, LLC\nP.O. Box 3516\n411 N.E. Washington Boulevard\nBartlesville, Oklahoma 74006\nRE: CPF 3-2023-006-NOPV\nDear Mr. Sloan:\nOn January 3, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Coffeyville Resources Crude Transportation, LLC (Coffeyville) a Consent Order,\nincorporating the terms of the Consent Agreement in the above-referenced case. The Consent\nAgreement included a Compliance Order and Civil Penalty assessment. Based on our review of\nthe documentation provided, and confirmation of payment of the civil penalty, it has been\ndetermined that Coffeyville has complied with the terms of the Consent Agreement and 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\ncc: Blake Record, Safety and DOT Compliance, brecord@cvrenergy.com\nBrandon Clemons, Compliance Manager, brandon@enservsolutions.com","truncated":false,"body_characters":22204}