{"operation":"document","citation":"CPF 32023021NOPV","title":"GARY CLIMATE SOLUTIONS, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2023-09-18","effective_on":null,"summary":"OPEN notice of probable violation citing 195.402(a), 195.440(a), 195.440(b), 195.505, 195.505(a), 195.505(b), 195.588(a), 195.588(b)(3)(ii)(A), 195.588(b)(3)(ii)(B), 195.588(b)(3)(iii), 195.588(b)(3)(iv), 195.588(b)(4)(ii), 195.588(b)(4)(iii), 195.588(b)(4)(iv), 195.61(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023021nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023021nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023021nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023021NOPV","body":"Notice of Probable Violation involving GARY CLIMATE SOLUTIONS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.440(a),  195.440(b),  195.505,  195.505(a),  195.505(b),  195.588(a),  195.588(b)(3)(ii)(A),  195.588(b)(3)(ii)(B),  195.588(b)(3)(iii),  195.588(b)(3)(iv),  195.588(b)(4)(ii),  195.588(b)(4)(iii),  195.588(b)(4)(iv),  195.61(b). The case was opened on 2023-09-18 and is reported as open. Proposed civil penalty: $108,100. Assessed civil penalty: $57,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023021NOPV_Consent Agreement and Order_07292024_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Consent%20Agreement%20and%20Order_07292024_(22-245404).pdf\n\n32023021NOPV_Consent Agreement and Order_07292024_(22-245404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Consent%20Agreement%20and%20Order_07292024_(22-245404)_text.pdf\n\n32023021NOPV_Consent Agreement Modification_09192025_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Consent%20Agreement%20Modification_09192025_(22-245404).pdf\n\n32023021NOPV_Consent Agreement Modification_09192025_(22-245404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Consent%20Agreement%20Modification_09192025_(22-245404)_text.pdf\n\n32023021NOPV_Operator RtN and RfH and SoI_10182023_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Operator%20RtN%20and%20RfH%20and%20SoI_10182023_(22-245404).pdf\n\n32023021NOPV_Operator Withdrawal of Hearing Request_07302024_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_07302024_(22-245404).pdf\n\n32023021NOPV_PCP PCO_09182023_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PCP%20PCO_09182023_(22-245404).pdf\n\n32023021NOPV_PCP PCO_09182023_(22-245404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PCP%20PCO_09182023_(22-245404)_text.pdf\n\n32023021NOPV_PHC Hearing Rescheduled_07012024_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PHC%20Hearing%20Rescheduled_07012024_(22-245404).pdf\n\n32023021NOPV_PHC Hearing Rescheduled_07012024_(22-245404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PHC%20Hearing%20Rescheduled_07012024_(22-245404)_text.pdf\n\n32023021NOPV_PHC Hearing Scheduled_11032023_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PHC%20Hearing%20Scheduled_11032023_(22-245404).pdf\n\n32023021NOPV_PHC Hearing Scheduled_11032023_(22-245404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PHC%20Hearing%20Scheduled_11032023_(22-245404)_text.pdf\n\n32023021NOPV_PHC Hearing Scheduled_11032023_(22-245404)_text.pdf\n\nNovember 3, 2023\nVIA ELECTRONIC MAIL TO: jeff@samgaryjr.com and gregory.ochs@dot.gov\nMr. Jeff Villalobos\nChief Operating Officer\nGary Climate Solutions, LLC\n1515 Wynkoop Street, Suite 700\nDenver, CO 80202\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, Gary Climate Solutions, LLC\nCPF No. 3-2023-021-NOPV\nDear Mr. Villalobos 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 June 26th, 2024, 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 June 17th, 2024), 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\n\n\n\nPresiding Official\ncc: Mr. Craig Ambler, President, Gary Climate Solutions, LLC, craig@samgaryjr.com\nMs. Catherine Little, Esq., Counsel for Tallgrass Energy, Bracewell, LLP,\ncatherine.little@bracewell.com\nMr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety,\nryan.mcclure@dot.gov\n\n32023021NOPV_PHC Hearing Rescheduled_07012024_(22-245404)_text.pdf\n\nDate: July 1, 2024\nFrom: Larry White\nTo: File\nRe: Continuance of Hearing, Gary Climate Solutions\nCPF No. 3-2023-021-NOPV\nBy electronic mail dated June 11, 2024, Ryan McClure, Counsel for OPS Central Region, and\nCatherine Little, Counsel for Gary Climate Solutions, submitted a joint request for a continuance of\nthe hearing previously scheduled for June 26, 2024. The request explained that the parties had\nreached an agreement to resolve the case which would make a hearing unnecessary, and the\nadditional time was needed to complete and execute the written consent agreement and order.\nI granted the request for a continuance until July 31, 2024, which will be the new hearing date if\nresolution by consent agreement is not completed by that time.\n\n32023021NOPV_Consent Agreement and Order_07292024_(22-245404)_text.pdf\n\nJuly 29, 2024\nVIA ELECTRONIC MAIL TO: craig@samgaryjr.com\nCraig Ambler\nPresident\nGary Climate Solutions, LLC\n1515 Wynkoop Street, Suite 700\nDenver, Colorado 80202\nRe: CPF No. 3-2023-021-NOPV\nDear Mr. Ambler:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Gary Climate Solutions,\nLLC, which was executed on July 22, 2024. Service of the Consent Order and Consent Agreement\nby electronic mail is deemed effective upon the date of transmission and acknowledgement of\nreceipt, 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\nEnclosures: Consent Order and Consent Agreement\ncc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Jeff Villalobos, Chief Operating Officer, Gary Climate Solutions, LLC,\njeff@samgaryjr.com\nMs. Catherine Little, Outside Counsel for Gary Climate Solutions, LLC, Bracewell, LLP,\ncatherine.little@bracewell.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____________________________________\nIn the Matter of )\nGARY CLIMATE SOLUTIONS, LLC, ) CPF No. 3-2023-021-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated September 18, 2023, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice) to Gary Climate Solutions, LLC (GCS or\nRespondent). GCS acquired the relevant pipeline facility from PetroSantander (USA), Inc., on April\n30, 2021.\nIn response to the Notice, Respondent contested the allegation of violation for Item 6, along with its\nproposed civil penalty and proposed compliance order, requested a reduction of the civil penalties\nassessed for Items 2 and 3, and provided additional information regarding the actions it had taken\ntowards compliance with PHMSA regulations since assuming ownership of the facility. Respondent\nrequested a hearing and the opportunity to meet informally with PHMSA to discuss Items 2 and 3 in\nthe Notice. Respondent and PHMSA (the Parties) subsequently met to discuss the issues raised in\nthe Response. As a result of those discussions, as explained in more detail below, the Parties have\nagreed to a Consent Agreement by which PHMSA makes findings of violation for each of the items\nalleged in the Notice, reduces the civil penalty for Item 2, withdraws the civil penalty for Item 6,\nassesses a reduced civil penalty of $57,500, and modifies the compliance order terms for Item 6.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. GCS 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 C.F.R.\n§ 190.223, or in referral to the Attorney General for appropriate relief in a district court of the\nUnited States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nJuly 29, 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 )\nGary Climate Solutions, ) CPF No. 3-2023-021-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom August 30 through September 1, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of Title 49, United States Code (U.S.C.), conducted an on-site pipeline safety inspection of\nthe facilities and records of Gary Climate Solutions, LLC (GCS or Respondent) in Garden City,\nKansas. GCS acquired the relevant pipeline facility from PetroSantander (USA), Inc., on April 30,\n2021.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated September 18, 2023, a Notice of Probable Violation, Proposed Compliance Order,\nand Proposed Civil Penalty (Notice), which also included two warnings pursuant to 49 C.F.R. §\n190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding four violations of\n49 C.F.R. Part 195 (Items 2, 3, 4, and 6), proposed ordering Respondent to take certain measures\nto correct the alleged violations, and proposed a civil penalty of $108,100. Other probable\nviolations (Items 1 and 5) were brought as warnings, advising the operator to correct the probable\nviolations or face potential future enforcement action. As a result of the informal consultations,\nthe Parties agree that the majority of the instances of probable violations alleged in the Notice\nrelated to actions or omissions of the prior operator, PetroSantander, from 2017-2021.\nRespondent responded to the Notice by letter dated October 18, 2023 (Response). In its Response,\nRespondent, without admission to the allegations set forth in the Notice, contested the allegation\nof violation for Item 6, along with its proposed civil penalty and proposed compliance order,\nrequested a reduction of the civil penalties associated with Items 2 and 3, provided additional\ninformation regarding the actions it had taken towards compliance with PHMSA regulations since\nassuming ownership of the facility from the previous operator in April 2021, and requested a\nhearing. PHMSA and Respondent (the Parties) subsequently met on February 1, 2023, to discuss\nthe issues raised in the Response, and continued discussion thereafter.\nAs a result of those discussions and as explained in more detail below, the Parties have agreed to\n\n\n\na Consent Agreement by which PHMSA makes findings of violations for each of the Items alleged\nin the Notice, reduces the civil penalty for Item 2, withdraws the civil penalty for Item 6, and\nmodifies the compliance order terms for Item 6. Respondent will pay a reduced civil penalty in the\namount of $57,500, and Respondent will complete certain compliance actions for Item 6.\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 environment,\npursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent and agreement,\nthe 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., and\nthe 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 that\nthe Associate Administrator adopt the terms of this Agreement by issuing an administrative order\n(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute\nan offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator 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.\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. The\nParties acknowledge that there are no representations, agreements or understandings relating to\nsettlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n\n\n\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, et\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's\nright of access, entry, inspection, and information gathering or PHMSA's authority to bring\nenforcement 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\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. Respondent\nremains responsible for achieving and maintaining compliance with all applicable Federal, State,\nand 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 violation\nof any other federal law or regulation and may not be used in any civil proceeding of any kind as\nevidence or proof of any fact, fault or liability, or as evidence of a violation of any law, rule,\nregulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or\nin future PHMSA enforcement actions.\n11. Except as noted below, Respondent neither admits nor denies any allegation or\nconclusion in the Notice or this Agreement, but agrees for purposes of this Agreement to accept\nthe findings of violation and to comply with the terms of this Agreement.\nII. Findings of Violation:\n12. Item 2 - 49 C.F.R. § 195.402(a): The Notice alleged a failure to follow written\nprocedures by not performing and documenting emergency training of field personnel for years\n2017 through 2021. Specifically, the Notice alleged that documentation on Form F-195.403 of\nemergency training was not provided, nor was documentation of the supervisory review or training\nof personnel on procedures or hazards specific to carbon dioxide. Although Respondent only\nowned and operated the facility beginning in mid-2021, Respondent did not contest the allegation\nof violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.402(a).\n\n\n\n13. Item 3 - 49 C.F.R. § 195.440(b): The Notice alleged a failure to follow the\nrecommendations of API RP 1162 (incorporated by reference, see § 195.3) by not performing an\nannual audit of the implementation of its Public Awareness Plan for 2017 through 2021. Although\nRespondent did not own or operate the facility until mid-2021, Respondent did not contest the\nallegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. §\n195.440(b).\n14. Item 4 - 49 C.F.R. § 195.505(b): The Notice alleged a failure to follow the\nrequirements of the written qualification program by not reviewing and approving contractor\noperator qualification requirements for 2017 through 2021. Although Respondent did not own or\noperate the facility until mid-2021, Respondent did not contest the allegation of violation as alleged\nin the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.505(b).\n15. Item 6 - 49 C.F.R. § 195.588(b): The Notice alleged that a 2018 External Corrosion\nDirect Assessment (ECDA) was performed without developing and implementing an ECDA plan,\nper the requirements of § 195.558. Specifically, the Notice alleged that the ECDA plan did not\ninclude four elements required by the regulation. Respondent initially challenged the allegation of\nviolation in its Response, noting that Respondent did not own or operate the facility at that time.\nWhile neither admitting nor denying the probable violation for this Item, Respondent, for purposes\nof settlement, has agreed to accept the allegation of violation as alleged in the Notice. As such,\nPHMSA finds a violation of 49 C.F.R. § 195.588(b).\n16. Items 2, 3, 4, and 6 will be considered by PHMSA as prior offenses in any future\nPHMSA enforcement action taken against Respondent.\nIII. Warning Items:\n17. Item 1 - 49 C.F.R. § 195.61: The Notice alleged the annual submittal to the National\nPipeline Mapping System for the calendar year 2018 was not performed. This Item was brought\nas a warning and does not constitute a finding of violation. While Respondent did not own or\noperate the facility at the time, Respondent accepted the warning as alleged in the Notice without\nadmission.\n18. Item 5 - 49 C.F.R. § 195.505: The Notice alleged that an annual OQ program\nreview was not performed for calendar years 2018 and 2020. This Item was brought as a warning\nand does not constitute a finding of violation. While Respondent did not own or operate the facility\nat this time, Respondent accepted the warning as alleged in the Notice without admission.\n19. For Warning Items 1 and 5, if OPS finds a violation of these provisions in a\nsubsequent inspection, Respondent may be subject to future enforcement action.\n\n\n\nIV. Civil Penalty:\n20. Item 2: The Notice proposed assessing a civil penalty in the amount of $17,100 for\nItem 2. Respondent requested a reduction of the proposed civil penalty, asserting that the gravity,\nculpability, and good faith factors should be reconsidered. PHMSA finds that these factors were\nappropriately selected in the violation report, but that a reduction to the number of instances of\nviolation is warranted based on evidence provided by Respondent during informal discussions.\nRespondent shall pay a reduced civil penalty in the amount of $16,700 for the violation in Item 2.\n21. Item 3: The Notice proposed assessing a civil penalty in the amount of $20,400 for\nItem 3. Respondent initially requested a reduction of the proposed civil penalty, asserting that the\ngravity, culpability, and good faith factors should be reconsidered, which was withdrawn following\ninformal discussion. Respondent shall pay a civil penalty in the amount of $20,400 for the violation\nin Item 3.\n22. Item 4: The Notice proposed assessing a civil penalty in the amount of $20,400 for\nItem 4. Respondent did not contest the proposed civil penalty for this Item. As such, Respondent\nshall pay a civil penalty in the amount of $20,400 for Item 4.\n23. Item 6: The Notice proposed assessing a civil penalty in the amount of $50,200 for\nItem 6. Respondent requested a reduction or withdrawal of the civil penalty. PHMSA agrees that\na withdrawal of the proposed civil penalty is appropriate based on a review of evidence provided\nby Respondent during informal discussion and reconsideration of the specific circumstances of the\nviolation occurring prior to Respondent’s ownership.\n24. Respondent will pay a total reduced civil penalty in the amount of $57,500,\npursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be paid in full no later than 20\ndays from the Effective Date of this Agreement.\nV. Compliance Order:\n25. Item 6: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent contested the Proposed Compliance Order.\nFollowing discussion of the proposed terms, PHMSA agrees to modify the Proposed Compliance\nOrder to better facilitate completion of an adequate ECDA. As such, Respondent agrees to\nundertake the following corrective measures:\na. Respondent must revise its written plans and procedures to satisfy all the applicable\nrequirements of 49 C.F.R. § 195.588 and NACE SP0502 (incorporated by reference,\nsee § 195.3). Respondent must complete these revisions within 90 days of the\nEffective Date and provide documentation confirming completion to the Central\nRegion Director for review and approval.\nRespondent must complete an ECDA on the 14.1 miles of the Garden City carbon\ndioxide pipeline subject to 49 C.F.R. § 195.452 reported in the May 13, 2024,\nAnnual Report in accordance with the above-referenced rules and standards and its\nrevised procedures, and provide documentation confirming its completion, within\nb.\n\n\n\ntwo years of the Effective Date. Respondent must submit quarterly updates to the\nCentral Region Director beginning 90 days from the Central Region’s approval of\nthe revised procedures required under this paragraph until the ECDA is completed.\nVI. Enforcement:\n26. This Agreement is subject to all enforcement authorities available to PHMSA under\n49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under\n49 U.S.C. § 60122, of up to $266,015 per violation for each day the violation continues and referral\nof the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent\nis not complying with the terms of this Agreement in accordance with the determinations made by\nthe Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to\nthe Dispute Resolution process herein. The maximum civil penalty amounts are adjusted annually\nfor inflation. See 49 C.F.R. § 190.223. All work plans and associated schedules set forth or\nreferenced in Section V (Compliance Order) are automatically incorporated into this Agreement\nand are enforceable in the same manner.\nVII. Review and Approval Process:\n27. With respect to any submission under Section V (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\nDirector approves, approves in part, or approves with conditions, Respondent will take all actions\nas approved by the Director, subject to Respondent’s right to invoke the dispute resolution\nprocedures with respect to any conditions the Director identifies. If the Director disapproves all or\nany portion of the submission, the Director will provide Respondent a written notice of the\ndeficiencies. Respondent will correct all deficiencies within the time specified by the Director and\nresubmit it for approval.\nVIII. Dispute Resolution:\n28. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement, including any decision of the Director under the terms of Sections V\n(Compliance Order) and VII (Review and Approval Process). If Respondent and the Director are\nunable to informally resolve the dispute within 15 calendar days after the dispute is first raised, in\nwriting, to the Director, Respondent may submit a written request for a determination resolving\nthe dispute from the Associate Administrator. Such request must be made in writing and provided\nto the Director, counsel for the Central Region, and to the Associate Administrator, no later than\n10 calendar days from the 15-day deadline for informal resolution referenced in this paragraph.\nAlong with its request, Respondent must provide the Associate Administrator with all information\nRespondent believes is relevant to the dispute. Decisions of the Associate Administrator under this\nparagraph will constitute final agency action. The existence of a dispute and PHMSA’s\nconsideration of matters placed in dispute will not excuse, toll, or suspend any term or timeframe\nfor completion of any work to be performed under this Agreement during the pendency of the\ndispute resolution process.\n\n\n\nIX. Effective Date:\n29. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator incorporating the terms of this Agreement.\nX. Recordkeeping and Information Disclosure:\n30. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at least\nfive (5) years following completion of all work to be performed, unless a longer period of time is\nrequired pursuant to 49 C.F.R. parts 190-199. For any reports, plans, or other deliverables required\nto be submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim of business\nconfidentiality or other protections applicable to the release of information by PHMSA, covering\npart or all of the information required to be submitted to PHMSA pursuant to this Agreement in\naccordance with 49 C.F.R. Part 7. Respondent must mark the claim of confidentiality in writing\non each page, and include a statement specifying the grounds for each claim of confidentially.\nPHMSA determines release of any information submitted pursuant to this Agreement in\naccordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and\nPHMSA policies, and other applicable regulations and Executive Orders.\nXI. Modification:\n31. 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.\nXII. Termination:\n32. This Agreement will remain in effect until the Civil Penalty in Section IV is paid\nin full and the Compliance Order in Section V is satisfied, as determined by the Director. The\nAgreement shall not terminate until the Director confirms, in writing, that the Agreement is\nterminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement.\nXIII. Ratification:\n33. 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.\n34. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n[Signature Lines on Following Page]\nFor Gary Climate Solutions, LLC:\n___________________________________\n\n\n\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, PHMSA Central Region, Office of Pipeline Safety\n________________________\nDate\n\n32023021NOPV_Consent Agreement Modification_09192025_(22-245404)_text.pdf\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 )\nGary Climate Solutions, LLC, ) CPF No. 3-2023-021-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nMODIFICATION TO CONSENT AGREEMENT\nFrom August 30 through September 1, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of Title 49, United States Code (U.S.C.), conducted an on-site pipeline safety inspection of\nthe facilities and records of Gary Climate Solutions, LLC (GCS or Respondent) in Garden City,\nKansas. GCS acquired the pipeline facility from PetroSantander (USA), Inc., on April 30, 2021.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to GCS, by letter\ndated September 18, 2023, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed\nCompliance Order (Notice).\nOn July 22, 2024, PHMSA and GCS (the Parties) entered into a Consent Agreement (Agreement)\nto resolve the Notice. The Agreement was approved by the Associate Administrator for Pipeline\nSafety, PHMSA, and incorporated by reference into a Consent Order that was issued pursuant to\n49 CFR § 190.219 on July 29, 2024.\nParagraph 31 of the Agreement states that the Agreement may be modified by mutual agreement\nof the Parties and that such modifications must be in writing and signed by both parties.\nIn accordance with Paragraph 31 of the Agreement, the Parties hereby agree to modify\nParagraph 25(b) of the Agreement. The modification to Paragraph 25(b) does not otherwise change\nany of the other terms of the Agreement, which remain in full force and effect unmodified.\nI. Modification:\n1. Paragraph 25(b) of the Agreement stated:\nRespondent must complete an ECDA on the 14.1 miles of the Garden City carbon\n\n\n\ndioxide pipeline subject to 49 C.F.R. § 195.452 reported in the May 13, 2024,\nAnnual Report in accordance with the above-referenced rules and standards and its\nrevised procedures, and provide documentation confirming its completion, within\ntwo years of the Effective Date. Respondent must submit quarterly updates to the\nCentral Region Director beginning 90 days from the Central Region’s approval of\nthe revised procedures required under this paragraph until the ECDA is completed.\n2. Paragraph 25(b) of the Agreement is hereby struck and replaced with the following:\nRespondent must complete an In-Line Inspection (ILI) of the 14.1 miles of the\nGarden City carbon dioxide pipeline, as reported in the June 16, 2025 Annual\nReport, in accordance with 49 CFR Part 195, including but not limited to 49 CFR\n§§ 195.452 and 195.591. GCS must provide documentation confirming its\nsuccessful completion within two years of the date PHMSA signs this modification\nto the Agreement. Until the ILI is completed, GCS must submit quarterly updates\nto the Central Region regarding the status of the ILI beginning 30 days from the\ndate PHMSA signs this modification to the Agreement.\nII. Ratification:\n1. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this modification and to execute and legally bind such party\nto this document.\n2. The Parties hereby agree to all findings, conditions, and terms of this modification.\n[Signature Lines on Following Page]\n\n\n\nFor Gary Climate Solutions, LLC:\n_______________________________\n________________________\nDate\nFor PHMSA:\n________________________________________\nActing Director, Central Region, Office of Pipeline Safety\n________________________\nDate","truncated":false,"body_characters":33974}