# ZENITH ENERGY TERMINALS JOLIET HOLDINGS LLC — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

32024038NOPV_Closure Letter_10222024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Closure%20Letter_10222024_(22-233382).pdf

32024038NOPV_Closure Letter_10222024_(22-233382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Closure%20Letter_10222024_(22-233382)_text.pdf

32024038NOPV_Final Order_07252024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Final%20Order_07252024_(22-233382).pdf

32024038NOPV_Final Order_07252024_(22-233382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_Final%20Order_07252024_(22-233382)_text.pdf

32024038NOPV_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

32024038NOPV_PCP PCO_05312024_(22-233382).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_PCP%20PCO_05312024_(22-233382).pdf

32024038NOPV_PCP PCO_05312024_(22-233382)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024038NOPV/32024038NOPV_PCP%20PCO_05312024_(22-233382)_text.pdf

32024038NOPV_Closure Letter_10222024_(22-233382)_text.pdf

VIA 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

July 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



U.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



Reserve 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
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