{"operation":"document","citation":"CPF 420025001","title":"RIO VISTA ENERGY PARTNERS, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-03-25","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.402(c), 195.412(a), 195.416, 195.436, 195.505(a), 195.505(b), 195.509(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420025001","body":"Notice of Probable Violation involving RIO VISTA ENERGY PARTNERS, LP. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c),  195.412(a),  195.416,  195.436,  195.505(a),  195.505(b),  195.509(b). The case was opened on 2002-03-25 and is reported as closed as of 2005-02-16. Proposed civil penalty: $10,000. Assessed civil penalty: $10,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420025001.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420025001/420025001.pdf\n\n420025001_Final Order_03152004.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420025001/420025001_Final%20Order_03152004.pdf\n\ncpf_420025001.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420025001/cpf_420025001.pdf\n\n420025001_Final Order_03152004.pdf\n\n7,\n- @\nU.S.Deportmenl\nof Tronsportotion\nReseorchond\nSpeciol Progrom3\nAdmini5trotion\n400 Sevenlh St.. S W\nWashrnglon. D.C 20590\nMAR 1 5 2004\nMr. Jerome B. Richter\nPresident\nPenn Octane Corporation '17-53}-Enfield Lane, Building D\nPalm Desert, Califomia 92211\nRE: CPF No. 4-2002-5001\nDear Mr. Richter:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes findings of violation, assesses a civil penalty of $10.'000' and\nrequires certain corrective action. The penaltypaynent terms are set forth in the Final Order. When\nthe civil penalty is paid and the terms of the compliance order completed, as determined by the\nDirector, Southwest Region, this enforcement action will be closed. Your receipt of the Final Order\nconstitutes service of that document under 49 C.F.R. I 190.5.\nSincerely,\nN l,a\netr-\nC,r\"\"\"rr\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pioeline Safetv\nEnclosure\nCERTIF'IED MAIL - RETURN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAT'ETY\nWASHINGTON, DC 20590\nIn the Matter of\nPenn Octane Corporation,\nRespondent.\nCPF No. 4-2002-5001\nFINAL ORDER\nOn September 26-27,200l,arepresentative ofthe Office ofPipeline Safety(OPS) conducted an on-\nsite pipeline safety inspection of R.espondent's facilities and records in Brownsville, Texas. As a\nresult of the inspection, the Director, Southwest Region, OPS, issued to Respondent by letter dated\nMarch 25, 2002, a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance\nOrder (Notice). In accordance with 49 C.F.R. $ 190.207, the Notice proposed finding that\nRespondent had violated 49 C,F.R. $$ 195.402, 195.416,195.436,195.505, and 195.509, and\nproposed assessing a civil penalty of$10,000 for the alleged violations.\nRespondent requested and was granted an extension to respond until May 26,2002. Respondent\nresponded to the Notice by letter dated May 23, 2002 (Response). Respondent did not contest the\nallegations of violation,but provided information concerning the corrective actions it has taken.\nRespondent did not request a hearing, and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the alleged violations contained in the Notice.\nAccordingly I find that Respondent violated the following sections of 49 C.F.R. Part 195, as more\nfully described in the Notice:\n49 C.F.R. $ 195.a02(a) (Item lin the Notice) for failing to include in its manual for operations,\nmaintenance, and emergencies, procedures for performing an annual review of the manual,\nincluding a requirement that a record of the review be maintained for two years;\n49 C.F.R. $ 195.a02(c)(2) (Item 2) for failing to include in its manual procedures for reporting\naccidents, as required by $$ 195.50, 195.52, and 195.4;\n\n\n\nL\n49 C.F.R. $ 195.a02(c)(3) (Item 3), which requires operators to operate, maintain, and repair their\nsystems in accordance with each requirement of subpart F of Part 195, for failing to have procedures\nin its manual for:\n(A) determining that none of its pipeline casings under roads, highways and\nrailroads are shorted and for failing to have procedures for remedial actions\nin the event a shorted casing is discovered, as required by $ 195.a01 @);\n(B) instructing its operating and maintenance personnel on the proper use of\nfirefighting procedures and equipment, fue suits, and breathing apparatus by\nutilizing, where feasible, a simulated pipeline emergency condition, as\nrequired by $ 1 95.a03(a)(5);\n(C) establishing the maximum operating pressure (MOP) on its pipeline, and\ncontrolling or limiting the pressure so it does not exceed the MOP, in\naccordance with $ 195.406;\n(D) determining the strength of generally corroded pipe, and repairing or\nreplacing generally corroded pipe, or reducing the operating pressure ofthe\npipe commensurate with the strength ofthe pipe based on the remaining wall\nthickness, in accordance with g 195.416(0-(h);\n(E) maintaining adequate firefighting equipment around its pump station, plainly\nmarking the equipment so it is clearly identified as firefrghting equipment,\nand locating the equipment so that it is easily accessible during a fire, in\naccordance with $ 195.430;\n(F) prohibiting smoking or open flames in the pump station area where there is\na possibility of the leakage of a flammable hazardous liquid or of the\npresence of flammable vapors and designating those areas where or when\nsmoking or open flames are permitted, in accordance with $ 195.438;\n(G) establishing a continuing educational program that enables the public,\nappropriate govemment organizations and persons engaged in excavation-\nrelated activities to recognize ahazardous liquid ora carbon dioxidepipeline\nemergency and to report it to the operator or the fire, police, or other\nappropriate public ofTicials, in accordance with $195.440; and\n(H) notifying excavators of the type of markings to be provided and how to\nidentify the markings, providing for temporary marking of buried pipelines\nin the area of excavation activity before, as far as practical, the activity\nbegins, providing for the inspection ofpipelines that the operator has reason\nto believe could be darnaged by excavation activities to veri$, the integrity\nof the pipeline, and, in the case of blasting, any inspection must include\nleakage surv€ys, in accordance with $ 195.442(c)(a)-(6).\n49 C.F.R. 5 195.416 (Item 5) for failing to clean and coat above-ground piping associated with two\nvalve locations that were covered with surface corosion:\n\n\n\n3\n49 C.F.R. § 195.436 (Item 6) for failing to adequately protect from vandalism and unauthorized entry\nthe valve facilities on the Titan Tire Company property and on the south side of U.S. Highway 281;\n49 C.F.R. § 195.505 (Items 7 and 8) for failing to include in its operator qualification program:\n(a) provisions to identify covered tasks;\n(b) methods Respondent intends to use to evaluate individuals performing covered tasks;\nand\n49 C.F.R. § 195.509 (Item 9) for failing to include in its operator qualification program a statement\nof when qualification of individuals performing covered tasks must be completed.\nThese findings of violation will be considered prior offenses in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations.\n49 U.S.C. § 60122 and 49 C.F.R. §190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other matters as justice may require.\nThe Notice proposed a penalty of $4,000 for violation of § 195.505(a), $3,000 for violation of\n} 195.505(b) and $3,000 for violation of § 195.509. In its Response, Respondent referred to sections\nin its manual that it alleged satisfy § 195.505(a). The sections are part of Respondent's writter\noperator qualification plan. However, Respondent did not submit those sections to OPS for review,\nand OPS is therefore unable to review these provisions to ensure compliance with the regulations.\nRespondent identified the sections in its manual that purported to satisfy § 195.505(b) and stated its\nprocedure to evaluate whether the individuals performing the covered tasks are qualified: \"Each\nOperator is to answer the written questions and review answers with their supervisor and then must\npass a separate written examination.\" Respondent attached a Memo from its Corporate Regulatory\nCompliance and Safety Manager which set forth deadlines for completing \"qualification tests\" on\nemergency procedures, normal and abnormal operations, and maintenance. Respondent did not\nsubmit these sections of its manual to OPS for its review. Again, OPS is therefore unable to review\nthese provisions in Respondent's manual to ensure compliance.\n\n\n\nSection $ 195.509 required Respondent to complete the qualification of individuals performing\ncovered tasks by October 28,2002. The Notice alleged that Respondent's operator qualification\nprogram did not contain a statement indicatingwhen qualification ofindividuals performing covered\ntasks was to be completed. In its Response, Respondent stated: \"Qualification test completion\ndeadline was reconfirmed as August 31, 2002.\" Respondent did not submit this section of its manual\nto OPS for review.\nIt is very important that operators maintain comprehensive, fully compliant operator qualification\nprograms. The safety of a pipeline system depends in large part on the competence of the personnel\noperating it. When covered tasks are not properly identified, the qualification process becomes\ncompromised. An operator cannot verify that its employees can correctly and safely perform tasks\nif its procedures are not thoroughly documented. Respondent has not provided documentation to\nsubstantiate that its procedures are adequate. It is also important that Respondent be held liabie for\nfailing to noie in its manual that all individuals performing work on its pipelines were required to\nbe qualified by October 28,2002. Therefore, the civil penalty must remain as proposed.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na civilpenaltyof$10,000. Respondenthastheabilitytopaythispenaltywithoutadverselyaffecting\nits ability to continue in business.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. $ 89.21(bX3)) require thispaymentbe made bywiretransfer, throughthe Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are\ncontained in the enclosure. Questions concerning wire transfers should be directed to: Financial\nOperations Division (AMZ-120), Federal Aviation Administration, Mike Monroney Aeronautical\nCenter, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-4719.\nFailure to pay the $10,000 civil penalty will result in accrual ofinterest at the current annual rate in\naccordance with 31 U.S.C. * 3717,31 C.F.R. $ 901.9 and 49 C.F.R. $ 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not\nmade within 1 10 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attomey General for appropriate action in a United States District Court.\nCOMPLIANCE ORDER\nTheNoticeproposedacomplianceorderforviolationsof 49C.F.R. $$ 195.402, 195.416,195.436,\ni95.505, and 195.509.\nUnder 49 U.S.C. $ 601 18(a), each person who engages in the transportation of hazardous liquids or\nwho owns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. Pursuant to the authority of 49 U.S.C. $ 60118(b) and 49 C.F.R.\n\n\n\n5\n5190.217, Respondent is ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to its operations. Respondent must establish written\nprocedures to:\nl. Ensure that an annual review of its operations and maintenance manual is performed, and a\nrecord ofthat review is retained for fwo years, in accordance with $ 195.402(a);\n2. Identify reportable accidents and ensure the proper data is provided within two hours of\ndiscovery, as requiredby $$ 195.50, 195.52,ard195.4;\n3. Test casings under roads, highway and railroads to determine that none are shorted. The\nprocedures must include remedial actions to address shorted casing(s), in accordance with\n$ 1e5.a0l(b);\n4.\nInstruct operating and maintenance personnel on the proper use of firefighting equipment, fire\nsuits, and breathing apparatus by utilizing, where feasible, a simulated pipeline emergency\ncondition, in accordance with $ 195.403(a);\n5.\nDetermine maximum operatingpressure(MOP) on thepipeline and control orlimitthepressure\nso that it does not exceed the MOP in accordance with the restrictions found in $ 195.a06;\no_\nDetermine the shength of generally corroded pipe and repair or replace generally corroded pipe,\nor reduce the operating pressure of the pipe commensurate with the strength of the pipe based\non the remaining wall thickness,. in accordance with $ 195.416;\n7.\nMaintain adequate firefighting equipment around the pump station. The manual should also\nspecify that the equipment be clearly identified and located in an accessible location in\naccordance with $ 195.430;\n8.\nProhibit smoking or open flames in the pump station area and designate those areas where\nsmoking or open flames are permitted, in accordance with $ 195.438;\n9.\nCreate a continuing educational program that enables the public, appropriate government\norganizations and persons engaged in excavation-related activities to recognize a hazardous\nliquid or a carbon dioxide pipeline emergency and to report it to the operator or the fire, police,\nor other appropriate public officials, in accordance with $195.440;\n10.\nNotify excavators of the type of markings to be provided and how to identify the markings,\nprovide for temporary marking of buried pipelines in the area of excavation activity before the\nactivity begins, and provide for the inspection of pipelines that the operator has reason to\nbelieve could be damaged by excavation activities, in accordance with $ 195.aa2@)@)-(6);\n11. Identify covered tasks that are performed on the pipeline facility, in accordance with\n$ 19s.505(a);\n\n\n\nb\n12.\nIdentify the methods used to evaluate individuals performing covered tasks, in accordance with\n$195.505(b);and\nInciude in your operator qualification plan the date by which individuals performing covered\ntasks were qualihed, in accordance with $195.509.\nItems 1 through 13 must be completed within 90 days following receipt of the Final Order. Upon\ncompletion, submit them to the Director, Southwest Region, OPS, for his review and approval, at\n2320LaBranch, Suite 2100, Houston,TX77004. The Regional Director will consider granting an\nextension of time if a written request containing the reasons for the request is submitted within a\nreasonable period of time.\nTheNotice proposed a compliance order with respect to items 5 and 6 for violations of 49 C.F.R.\n$$ 195.416 and195.436, respectively. Respondent has demonstrated correcfive action addressing\nthe items in the proposed compliance order. With respect to $ 195.416, Respondent has submitted\nphotos to demonstrate that the valves referred to in the Notice have been cleaned and coated. With\nrespect to $ 195.436, Respondent submitted photos to demonstrate that the valves have been chained\nand locked. Because Respondent's actions satisfied the proposed compliance terms, no need exists\nto issue a compliance order with respect to these items.\nWARNING ITEM\nThe Notice did not propose a civil penalty or corrective action with respect to Item 4 in the\nNotice. Respondent is wamed that if it does not take appropriate corrective action and OPS finds\na violation in a subsequent inspection, enforcement action will be taken with respect to that item.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to petition for reconsideration of this Final\nOrder. The petition must be received within 20 days of Respondent's receipt of this Final Order\nand must contain a brief statement of the issue(s). The filing of the pefition automatically stays\nthe palirnent of any civil penalty assessed. All other terms of the order, including any required\nconective action, remain in full effect unless the Associate Administrator, upon request, grants a\nstay. Failure to comply with this Final Order may result in the assessment of civil penalties of up\nto$l00,000perviolationperday,orinthereferralofthecaseforjudicialenforcement. The\nterms and conditions of this Final Order are effective on receipt'\nl'4AR I 5 2004\nDate Issued\niate Administrator\nfor Pioeline Safetv","truncated":false,"body_characters":17095}