{"operation":"document","citation":"CPF 32024038NOPV","title":"ZENITH ENERGY TERMINALS JOLIET HOLDINGS LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-05-31","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.452(l)(1)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024038nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024038nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024038nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32024038NOPV","body":"Notice of Probable Violation involving ZENITH ENERGY TERMINALS JOLIET HOLDINGS LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.452(l)(1)(ii). The case was opened on 2024-05-31 and is reported as closed as of 2024-10-22. Proposed civil penalty: $37,900. Assessed civil penalty: $37,900. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32024038NOPV_Closure Letter_10222024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Closure%20Letter_10222024_(22-233382).pdf\n\n32024038NOPV_Closure Letter_10222024_(22-233382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Closure%20Letter_10222024_(22-233382)_text.pdf\n\n32024038NOPV_Final Order_07252024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Final%20Order_07252024_(22-233382).pdf\n\n32024038NOPV_Final Order_07252024_(22-233382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Final%20Order_07252024_(22-233382)_text.pdf\n\n32024038NOPV_Operator Response to Notice_06242024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Operator%20Response%20to%20Notice_06242024_(22-233382).pdf\n\n32024038NOPV_PCP PCO_05312024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_PCP%20PCO_05312024_(22-233382).pdf\n\n32024038NOPV_PCP PCO_05312024_(22-233382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_PCP%20PCO_05312024_(22-233382)_text.pdf\n\n32024038NOPV_Closure Letter_10222024_(22-233382)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Jeff.armstrong@zenithterminals.com;\nCarlos.Munguia@zenithterminals.com; Jonathan.Patneau@zenithterminals.com\nOctober 22, 2024\nJeff Armstrong\nChief Executive Officer\nZenith Energy Terminals Joliet Holdings, LLC\n1 Highland Lane\nMetuchen, NJ 08840\nRE: CPF 3-2024-038-NOPV\nDear Mr. Armstrong:\nOn July 25, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Zenith Energy Terminals Joliet Holdings, LLC a Final Order in the above-referenced case. This\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation you provided and confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of this 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\nPipeline and Hazardous Materials Safety Administration\ncc: Carlos Munguia, VP of Operations and Engineering\n(Carlos.Munguia@zenithterminals.com)\nJonathan Patneau, Joliet Terminal Manager\n(Jonathan.Patneau@zenithterminals.com)\n\n32024038NOPV_Final Order_07252024_(22-233382)_text.pdf\n\nJuly 25, 2024\nVIA ELECTRONIC MAIL TO: Jeff.Armstrong@zenithterminals.com\nJeff Armstrong\nChief Executive Officer\nZenith Energy Terminals Joliet Holdings, LLC\n1 Highland Lane\nMetuchen, New Jersey 08840\nRe: CPF No. 3-2024-038-NOPV\nDear Mr. Armstrong:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $37,900, and specifies actions that need to be taken to\ncomply with the pipeline safety regulations. When the civil penalty has been paid and the terms\nof the compliance order are completed, as determined by the Director, Central Region, this\nenforcement action will be closed. Service of the Final Order by e-mail is effective upon the\ndate of transmission and acknowledgement of receipt as 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 (Final Order and NOPV)\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Carlos Munguia, Vice President of Operations and Engineering, Zenith Energy\nTerminals Joliet Holdings, LLC, Carlos.Munguia@zenithterminals.com\nMr. Jonathan Patneau, Joliet Terminal Manager, Zenith Energy Terminals Joliet\nHoldings, LLC, Jonathan.Patneau@zenithterminals.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 )\nZenith Energy Terminals Joliet ) CPF No. 3-2024-038-NOPV\nHoldings, LLC, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May 31, 2024, pursuant to 49 C.F.R. § 190.207, the Director, Central Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Zenith Energy\nTerminals Joliet Holdings, LLC (Respondent). The Notice proposed finding that Respondent\nhad violated the pipeline safety regulations in 49 C.F.R. Part 195 and proposed a civil penalty of\n$37,900. The Notice also proposed certain measures to correct the violations. Respondent did\nnot contest the allegations of violation, corrective measures, or proposed civil penalty.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\n49 C.F.R. § 195.402(a) (Item 1) ─ Respondent failed to follow its manual of\nwritten procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies.\n49 C.F.R. § 195.452(l)(1)(ii) (Item 2) ─ Respondent failed to maintain records to\nsupport the decisions and analyses, including any modifications, justifications,\ndeviations and determinations made, variances, and actions taken, to implement\nand evaluate each element of the integrity management program listed in\n§ 195.452(f).\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a\ntotal civil penalty of $37,900.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\n\n\n\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $37,900 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCompliance Actions\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violation. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof the ordered actions, Respondent may request that the Director close the case. Failure to\ncomply with this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223\nor in referral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nJuly 25, 2024\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":8276}