# GARY CLIMATE SOLUTIONS, LLC — Notice of Probable Violation

- **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:** Not available
- **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).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-32023021nopv.md
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- **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.

Official case documents:

32023021NOPV_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

32023021NOPV_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

32023021NOPV_Consent Agreement Modification_09192025_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_Consent%20Agreement%20Modification_09192025_(22-245404).pdf

32023021NOPV_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

32023021NOPV_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

32023021NOPV_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

32023021NOPV_PCP PCO_09182023_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PCP%20PCO_09182023_(22-245404).pdf

32023021NOPV_PCP PCO_09182023_(22-245404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PCP%20PCO_09182023_(22-245404)_text.pdf

32023021NOPV_PHC Hearing Rescheduled_07012024_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PHC%20Hearing%20Rescheduled_07012024_(22-245404).pdf

32023021NOPV_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

32023021NOPV_PHC Hearing Scheduled_11032023_(22-245404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023021NOPV/32023021NOPV_PHC%20Hearing%20Scheduled_11032023_(22-245404).pdf

32023021NOPV_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

32023021NOPV_PHC Hearing Scheduled_11032023_(22-245404)_text.pdf

November 3, 2023
VIA ELECTRONIC MAIL TO: jeff@samgaryjr.com and gregory.ochs@dot.gov
Mr. Jeff Villalobos
Chief Operating Officer
Gary Climate Solutions, LLC
1515 Wynkoop Street, Suite 700
Denver, CO 80202
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, Gary Climate Solutions, LLC
CPF No. 3-2023-021-NOPV
Dear Mr. Villalobos 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 June 26th, 2024, 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 June 17th, 2024), 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. Craig Ambler, President, Gary Climate Solutions, LLC, craig@samgaryjr.com
Ms. Catherine Little, Esq., Counsel for Tallgrass Energy, Bracewell, LLP,
catherine.little@bracewell.com
Mr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety,
ryan.mcclure@dot.gov

32023021NOPV_PHC Hearing Rescheduled_07012024_(22-245404)_text.pdf

Date: July 1, 2024
From: Larry White
To: File
Re: Continuance of Hearing, Gary Climate Solutions
CPF No. 3-2023-021-NOPV
By electronic mail dated June 11, 2024, Ryan McClure, Counsel for OPS Central Region, and
Catherine Little, Counsel for Gary Climate Solutions, submitted a joint request for a continuance of
the hearing previously scheduled for June 26, 2024. The request explained that the parties had
reached an agreement to resolve the case which would make a hearing unnecessary, and the
additional time was needed to complete and execute the written consent agreement and order.
I granted the request for a continuance until July 31, 2024, which will be the new hearing date if
resolution by consent agreement is not completed by that time.

32023021NOPV_Consent Agreement and Order_07292024_(22-245404)_text.pdf

July 29, 2024
VIA ELECTRONIC MAIL TO: craig@samgaryjr.com
Craig Ambler
President
Gary Climate Solutions, LLC
1515 Wynkoop Street, Suite 700
Denver, Colorado 80202
Re: CPF No. 3-2023-021-NOPV
Dear Mr. Ambler:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Gary Climate Solutions,
LLC, which was executed on July 22, 2024. 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
Enclosures: Consent Order and Consent Agreement
cc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Jeff Villalobos, Chief Operating Officer, Gary Climate Solutions, LLC,
jeff@samgaryjr.com
Ms. Catherine Little, Outside Counsel for Gary Climate Solutions, LLC, Bracewell, LLP,
catherine.little@bracewell.com
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 )
GARY CLIMATE SOLUTIONS, LLC, ) CPF No. 3-2023-021-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated September 18, 2023, 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 Gary Climate Solutions, LLC (GCS or
Respondent). GCS acquired the relevant pipeline facility from PetroSantander (USA), Inc., on April
30, 2021.
In response to the Notice, Respondent contested the allegation of violation for Item 6, along with its
proposed civil penalty and proposed compliance order, requested a reduction of the civil penalties
assessed for Items 2 and 3, and provided additional information regarding the actions it had taken
towards compliance with PHMSA regulations since assuming ownership of the facility. Respondent
requested a hearing and the opportunity to meet informally with PHMSA to discuss Items 2 and 3 in
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 by which PHMSA makes findings of violation for each of the items
alleged in the Notice, reduces the civil penalty for Item 2, withdraws the civil penalty for Item 6,
assesses a reduced civil penalty of $57,500, and modifies the compliance order terms for Item 6.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. GCS 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, or in referral to the Attorney General for appropriate relief in a district court of the
United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 C.F.R. § 190.5.
July 29, 2024
______________________________ _________________________
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 )
Gary Climate Solutions, ) CPF No. 3-2023-021-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From August 30 through September 1, 2022, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter
601 of Title 49, United States Code (U.S.C.), conducted an on-site pipeline safety inspection of
the facilities and records of Gary Climate Solutions, LLC (GCS or Respondent) in Garden City,
Kansas. GCS acquired the relevant pipeline facility from PetroSantander (USA), Inc., on April 30,
2021.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated September 18, 2023, a Notice of Probable Violation, Proposed Compliance Order,
and Proposed Civil Penalty (Notice), which also included two warnings pursuant to 49 C.F.R. §
190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding four violations of
49 C.F.R. Part 195 (Items 2, 3, 4, and 6), proposed ordering Respondent to take certain measures
to correct the alleged violations, and proposed a civil penalty of $108,100. Other probable
violations (Items 1 and 5) were brought as warnings, advising the operator to correct the probable
violations or face potential future enforcement action. As a result of the informal consultations,
the Parties agree that the majority of the instances of probable violations alleged in the Notice
related to actions or omissions of the prior operator, PetroSantander, from 2017-2021.
Respondent responded to the Notice by letter dated October 18, 2023 (Response). In its Response,
Respondent, without admission to the allegations set forth in the Notice, contested the allegation
of violation for Item 6, along with its proposed civil penalty and proposed compliance order,
requested a reduction of the civil penalties associated with Items 2 and 3, provided additional
information regarding the actions it had taken towards compliance with PHMSA regulations since
assuming ownership of the facility from the previous operator in April 2021, and requested a
hearing. PHMSA and Respondent (the Parties) subsequently met on February 1, 2023, to discuss
the issues raised in the Response, and continued discussion thereafter.
As a result of those discussions and as explained in more detail below, the Parties have agreed to



a Consent Agreement by which PHMSA makes findings of violations for each of the Items alleged
in the Notice, reduces the civil penalty for Item 2, withdraws the civil penalty for Item 6, and
modifies the compliance order terms for Item 6. Respondent will pay a reduced civil penalty in the
amount of $57,500, and Respondent will complete certain compliance actions for Item 6.
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.
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. Except as noted below, Respondent neither admits nor denies any allegation or
conclusion in the Notice or this Agreement, but agrees for purposes of this Agreement to accept
the findings of violation and to comply with the terms of this Agreement.
II. Findings of Violation:
12. Item 2 - 49 C.F.R. § 195.402(a): The Notice alleged a failure to follow written
procedures by not performing and documenting emergency training of field personnel for years
2017 through 2021. Specifically, the Notice alleged that documentation on Form F-195.403 of
emergency training was not provided, nor was documentation of the supervisory review or training
of personnel on procedures or hazards specific to carbon dioxide. Although Respondent only
owned and operated the facility beginning in mid-2021, Respondent did not contest the allegation
of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.402(a).



13. Item 3 - 49 C.F.R. § 195.440(b): The Notice alleged a failure to follow the
recommendations of API RP 1162 (incorporated by reference, see § 195.3) by not performing an
annual audit of the implementation of its Public Awareness Plan for 2017 through 2021. Although
Respondent did not own or operate the facility until mid-2021, Respondent did not contest the
allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R. §
195.440(b).
14. Item 4 - 49 C.F.R. § 195.505(b): The Notice alleged a failure to follow the
requirements of the written qualification program by not reviewing and approving contractor
operator qualification requirements for 2017 through 2021. Although Respondent did not own or
operate the facility until mid-2021, Respondent did not contest the allegation of violation as alleged
in the Notice. As such, PHMSA finds a violation of 49 C.F.R. § 195.505(b).
15. Item 6 - 49 C.F.R. § 195.588(b): The Notice alleged that a 2018 External Corrosion
Direct Assessment (ECDA) was performed without developing and implementing an ECDA plan,
per the requirements of § 195.558. Specifically, the Notice alleged that the ECDA plan did not
include four elements required by the regulation. Respondent initially challenged the allegation of
violation in its Response, noting that Respondent did not own or operate the facility at that time.
While neither admitting nor denying the probable violation for this Item, Respondent, for purposes
of settlement, has agreed to accept the allegation of violation as alleged in the Notice. As such,
PHMSA finds a violation of 49 C.F.R. § 195.588(b).
16. Items 2, 3, 4, and 6 will be considered by PHMSA as prior offenses in any future
PHMSA enforcement action taken against Respondent.
III. Warning Items:
17. Item 1 - 49 C.F.R. § 195.61: The Notice alleged the annual submittal to the National
Pipeline Mapping System for the calendar year 2018 was not performed. This Item was brought
as a warning and does not constitute a finding of violation. While Respondent did not own or
operate the facility at the time, Respondent accepted the warning as alleged in the Notice without
admission.
18. Item 5 - 49 C.F.R. § 195.505: The Notice alleged that an annual OQ program
review was not performed for calendar years 2018 and 2020. This Item was brought as a warning
and does not constitute a finding of violation. While Respondent did not own or operate the facility
at this time, Respondent accepted the warning as alleged in the Notice without admission.
19. For Warning Items 1 and 5, if OPS finds a violation of these provisions in a
subsequent inspection, Respondent may be subject to future enforcement action.



IV. Civil Penalty:
20. Item 2: The Notice proposed assessing a civil penalty in the amount of $17,100 for
Item 2. Respondent requested a reduction of the proposed civil penalty, asserting that the gravity,
culpability, and good faith factors should be reconsidered. PHMSA finds that these factors were
appropriately selected in the violation report, but that a reduction to the number of instances of
violation is warranted based on evidence provided by Respondent during informal discussions.
Respondent shall pay a reduced civil penalty in the amount of $16,700 for the violation in Item 2.
21. Item 3: The Notice proposed assessing a civil penalty in the amount of $20,400 for
Item 3. Respondent initially requested a reduction of the proposed civil penalty, asserting that the
gravity, culpability, and good faith factors should be reconsidered, which was withdrawn following
informal discussion. Respondent shall pay a civil penalty in the amount of $20,400 for the violation
in Item 3.
22. Item 4: The Notice proposed assessing a civil penalty in the amount of $20,400 for
Item 4. Respondent did not contest the proposed civil penalty for this Item. As such, Respondent
shall pay a civil penalty in the amount of $20,400 for Item 4.
23. Item 6: The Notice proposed assessing a civil penalty in the amount of $50,200 for
Item 6. Respondent requested a reduction or withdrawal of the civil penalty. PHMSA agrees that
a withdrawal of the proposed civil penalty is appropriate based on a review of evidence provided
by Respondent during informal discussion and reconsideration of the specific circumstances of the
violation occurring prior to Respondent’s ownership.
24. Respondent will pay a total reduced civil penalty in the amount of $57,500,
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.
V. Compliance Order:
25. Item 6: The Notice proposed certain compliance order actions to address the non-
compliance alleged in the Notice. Respondent contested the Proposed Compliance Order.
Following discussion of the proposed terms, PHMSA agrees to modify the Proposed Compliance
Order to better facilitate completion of an adequate ECDA. As such, Respondent agrees to
undertake the following corrective measures:
a. Respondent must revise its written plans and procedures to satisfy all the applicable
requirements of 49 C.F.R. § 195.588 and NACE SP0502 (incorporated by reference,
see § 195.3). Respondent must complete these revisions within 90 days of the
Effective Date and provide documentation confirming completion to the Central
Region Director for review and approval.
Respondent must complete an ECDA on the 14.1 miles of the Garden City carbon
dioxide pipeline subject to 49 C.F.R. § 195.452 reported in the May 13, 2024,
Annual Report in accordance with the above-referenced rules and standards and its
revised procedures, and provide documentation confirming its completion, within
b.



two years of the Effective Date. Respondent must submit quarterly updates to the
Central Region Director beginning 90 days from the Central Region’s approval of
the revised procedures required under this paragraph until the ECDA is completed.
VI. Enforcement:
26. 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 $266,015 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. All work plans and associated schedules set forth or
referenced in Section V (Compliance Order) are automatically incorporated into this Agreement
and are enforceable in the same manner.
VII. Review and Approval Process:
27. With respect to any submission under Section V (Compliance Order) of this
Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or
in part, the submission; (b) approve the submission on specified, reasonable conditions; (c)
disapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the
Director approves, approves in part, or approves with conditions, Respondent will take all actions
as approved by the Director, subject to Respondent’s right to invoke the dispute resolution
procedures with respect to any conditions the Director identifies. If the Director disapproves all or
any portion of the submission, the Director will provide Respondent a written notice of the
deficiencies. Respondent will correct all deficiencies within the time specified by the Director and
resubmit it for approval.
VIII. Dispute Resolution:
28. 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 Sections V
(Compliance Order) and VII (Review and Approval Process). 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. Such request must be made in writing and provided
to the Director, counsel for the Central Region, and to the Associate Administrator, 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.



IX. Effective Date:
29. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator incorporating the terms of this Agreement.
X. Recordkeeping and Information Disclosure:
30. 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, unless a longer period of time is
required pursuant to 49 C.F.R. parts 190-199. 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.
XI. Modification:
31. 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.
XII. Termination:
32. This Agreement will remain in effect until the Civil Penalty in Section IV is paid
in full and the Compliance Order in Section V is satisfied, as 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.
XIII. Ratification:
33. 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.
34. The Parties hereby agree to all findings, conditions, and terms of this Agreement.
[Signature Lines on Following Page]
For Gary Climate Solutions, LLC:
___________________________________



________________________
Date
For PHMSA:
________________________________________
Director, PHMSA Central Region, Office of Pipeline Safety
________________________
Date

32023021NOPV_Consent Agreement Modification_09192025_(22-245404)_text.pdf

U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Gary Climate Solutions, LLC, ) CPF No. 3-2023-021-NOPV
)
)
)
Respondent. )
____________________________________)
MODIFICATION TO CONSENT AGREEMENT
From August 30 through September 1, 2022, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter
601 of Title 49, United States Code (U.S.C.), conducted an on-site pipeline safety inspection of
the facilities and records of Gary Climate Solutions, LLC (GCS or Respondent) in Garden City,
Kansas. GCS acquired the pipeline facility from PetroSantander (USA), Inc., on April 30, 2021.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to GCS, by letter
dated September 18, 2023, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed
Compliance Order (Notice).
On July 22, 2024, PHMSA and GCS (the Parties) entered into a Consent Agreement (Agreement)
to resolve the Notice. The Agreement was approved by the Associate Administrator for Pipeline
Safety, PHMSA, and incorporated by reference into a Consent Order that was issued pursuant to
49 CFR § 190.219 on July 29, 2024.
Paragraph 31 of the Agreement states that the Agreement may be modified by mutual agreement
of the Parties and that such modifications must be in writing and signed by both parties.
In accordance with Paragraph 31 of the Agreement, the Parties hereby agree to modify
Paragraph 25(b) of the Agreement. The modification to Paragraph 25(b) does not otherwise change
any of the other terms of the Agreement, which remain in full force and effect unmodified.
I. Modification:
1. Paragraph 25(b) of the Agreement stated:
Respondent must complete an ECDA on the 14.1 miles of the Garden City carbon



dioxide pipeline subject to 49 C.F.R. § 195.452 reported in the May 13, 2024,
Annual Report in accordance with the above-referenced rules and standards and its
revised procedures, and provide documentation confirming its completion, within
two years of the Effective Date. Respondent must submit quarterly updates to the
Central Region Director beginning 90 days from the Central Region’s approval of
the revised procedures required under this paragraph until the ECDA is completed.
2. Paragraph 25(b) of the Agreement is hereby struck and replaced with the following:
Respondent must complete an In-Line Inspection (ILI) of the 14.1 miles of the
Garden City carbon dioxide pipeline, as reported in the June 16, 2025 Annual
Report, in accordance with 49 CFR Part 195, including but not limited to 49 CFR
§§ 195.452 and 195.591. GCS must provide documentation confirming its
successful completion within two years of the date PHMSA signs this modification
to the Agreement. Until the ILI is completed, GCS must submit quarterly updates
to the Central Region regarding the status of the ILI beginning 30 days from the
date PHMSA signs this modification to the Agreement.
II. Ratification:
1. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this modification and to execute and legally bind such party
to this document.
2. The Parties hereby agree to all findings, conditions, and terms of this modification.
[Signature Lines on Following Page]



For Gary Climate Solutions, LLC:
_______________________________
________________________
Date
For PHMSA:
________________________________________
Acting Director, Central Region, Office of Pipeline Safety
________________________
Date
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