ZENITH ENERGY TERMINALS JOLIET HOLDINGS LLC — Notice of Probable Violation

party submissionOfficial PDF32024038NOPV_Operator Response to Notice_06242024_(22-233382).pdf#

case documentOfficial PDF32024038NOPV_PCP PCO_05312024_(22-233382).pdf#

case documentOfficial PDF32024038NOPV_PCP PCO_05312024_(22-233382)_text.pdf#

32024038NOPV_Closure Letter_10222024_(22-233382)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: Jeff.armstrong@zenithterminals.com; Carlos.Munguia@zenithterminals.com; Jonathan.Patneau@zenithterminals.com October 22, 2024 Jeff Armstrong Chief Executive Officer Zenith Energy Terminals Joliet Holdings, LLC 1 Highland Lane Metuchen, NJ 08840 RE: CPF 3-2024-038-NOPV Dear Mr. Armstrong: On July 25, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Zenith Energy Terminals Joliet Holdings, LLC a Final Order in the above-referenced case. This Order included a Compliance Order and Civil Penalty assessment. Based on our review of the documentation you provided and confirmation of payment of the civil penalty, it has been determined that you have complied with the terms of this Order. Accordingly, this case is now closed and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Gregory A. Ochs Director, Central Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Carlos Munguia, VP of Operations and Engineering (Carlos.Munguia@zenithterminals.com) Jonathan Patneau, Joliet Terminal Manager (Jonathan.Patneau@zenithterminals.com)#

32024038NOPV_Final Order_07252024_(22-233382)_text.pdf, page 1Official PDFJuly 25, 2024 VIA ELECTRONIC MAIL TO: Jeff.Armstrong@zenithterminals.com Jeff Armstrong Chief Executive Officer Zenith Energy Terminals Joliet Holdings, LLC 1 Highland Lane Metuchen, New Jersey 08840 Re: CPF No. 3-2024-038-NOPV Dear Mr. Armstrong: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation, assesses a civil penalty of $37,900, and specifies actions that need to be taken to comply with the pipeline safety regulations. When the civil penalty has been paid and the terms of the compliance order are completed, as determined by the Director, Central Region, this enforcement action will be closed. Service of the Final Order by e-mail is effective upon the date of transmission and acknowledgement of receipt as 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 (Final Order and NOPV) cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Mr. Carlos Munguia, Vice President of Operations and Engineering, Zenith Energy Terminals Joliet Holdings, LLC, Carlos.Munguia@zenithterminals.com Mr. Jonathan Patneau, Joliet Terminal Manager, Zenith Energy Terminals Joliet Holdings, LLC, Jonathan.Patneau@zenithterminals.com CONFIRMATION OF RECEIPT REQUESTED#

32024038NOPV_Final Order_07252024_(22-233382)_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Zenith Energy Terminals Joliet ) CPF No. 3-2024-038-NOPV Holdings, LLC, ) ) ) ) Respondent. ) ____________________________________) FINAL ORDER On May 31, 2024, pursuant to 49 C.F.R. § 190.207, the Director, Central Region, Office of Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Zenith Energy Terminals Joliet Holdings, LLC (Respondent). The Notice proposed finding that Respondent had violated the pipeline safety regulations in 49 C.F.R. Part 195 and proposed a civil penalty of $37,900. The Notice also proposed certain measures to correct the violations. Respondent did not contest the allegations of violation, corrective measures, or proposed civil penalty. Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the pipeline safety regulations listed below, as more fully described in the enclosed Notice, which is incorporated by reference: 49 C.F.R. § 195.402(a) (Item 1) ─ Respondent failed to follow its manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. 49 C.F.R. § 195.452(l)(1)(ii) (Item 2) ─ Respondent failed to maintain records to support the decisions and analyses, including any modifications, justifications, deviations and determinations made, variances, and actions taken, to implement and evaluate each element of the integrity management program listed in § 195.452(f). These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a total civil penalty of $37,900. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal#

32024038NOPV_Final Order_07252024_(22-233382)_text.pdf, page 3Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire transfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845. Failure to pay the $37,900 civil penalty will result in accrual of interest at the current annual rate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same authorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty may result in referral of the matter to the Attorney General for appropriate action in a district court of the United States. Compliance Actions Pursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the actions proposed in the enclosed Notice to correct the violation. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Upon completion of the ordered actions, Respondent may request that the Director close the case. Failure to comply with this Order may result in the assessment of civil penalties under 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 order are effective upon service in accordance with 49 C.F.R. § 190.5. July 25, 2024 ___________________________________ _________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#