{"operation":"document","citation":"CPF 420025002","title":"PHILLIPS 66 PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-04-08","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.403(a), 195.404(c)(3), 195.416, 195.420(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420025002","body":"Notice of Probable Violation involving PHILLIPS 66 PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.403(a),  195.404(c)(3),  195.416,  195.420(b). The case was opened on 2002-04-08 and is reported as closed as of 2002-12-18. Proposed civil penalty: $37,500. Assessed civil penalty: $37,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420025002_Final Order_10232002.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420025002/420025002_Final%20Order_10232002.pdf\n\n420025002_Final Order_10232002.pdf\n\n@\nUS.Deponment dlronsportotion\nReseorch qnd\nSpeciol Progroms\nAchninirtrstlon\n400 Seventh Streel. S.W.\nWashington, D.C. 20590\nOcT 2 3 ?\"002\nMr. Dave Ysebaert\nPhillips Pipe Line Company\n252F-I Adams Building\nBartlesville, OK 74004\nRe: CPFNo.4-2002-5002\nDear Mr. Ysebaert:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes findings of violation and assesses a civil penalty of $ 37,500. The\npenalty payment terms are set forth in the Final Order. This enforcement action closes automatically\nupon pa)rynent. Your receipt ofthe Final Order constitutes service ofthat document under\n49 C.F.R.$ 190.5.\nSincerely,\nGwendolyn M. Hitl\nPipeline Compliance Registry\nOffrce of Pipeline Safety\nEncloswe\nCERTIFIED MAIL - RETURN RECEIPT REOUESTE,D\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON. DC 20590\nIn the Matter of\nPhillips Pipe Line Company,\nRespondent\n)\n)\n)\n)\n)\nCPF No. 4-2002-5002\nFINAL ORDER\nDuring the months of May, June, October, and November, 2001, pursuant to 49 U.S.C. $ 60117, a\nrepresentative ofthe Office of Pipeline Safety (OPS) conducted an on-site pipeline safety inspection\nof Respondent's facilities and records in Texas and Oklahoma. As a result of the inspection, the\nDirector, Southwest Region, OPS, issued to Respondent, by letter dated April 8,2002, a Notice of\nProbable Violation and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. $ 190.207,\nthe Notice proposed finding that Respondent violated 49 C.F;R. $$ 195.401, 195.403,195.404,\n195.416,and195.420 (Items 1-5 respectively), andproposed assessing a civil penalty of $37,500 for\nthe violations alleeed in Items 4 and 5 of the Notice.\nRespondent responded to the Notice by letter dated May 15, 2001 (Response). Respondent did not\ncontestthe allegations ofviolation butoffered an explanation and provided information inmitigation\nof the civil penalty proposed for Items 4 and 5. Respondent did not request a hearing; consequenfly,\nRespondent waived its right to one.\nFINDINGS OF VIOLATION\nUncontested Violations\nRespondent did not contest the violations alleged in the Notice. Accordingly, I find that Respondent\nviolated the following sections of 49 C.F.R. Part 195, as more fully described in the Notice:\n49 C.F.R. $ l95.al6(a) * failure to demonstrate that tests were conducted to determine the\nadequacy of the cathodic protection at the Amarillo Terminal facility within the specified\nmaximum interval;\n49 C.F.R. $ 195.420(b) - failure to demonstrate that certain mainline block valves were\ninspected within the specified maximum intervals.\nThese findings ofviolation will be considered prior offenses in any subsequent enforcement action\ntaken against Respondent.\n\n\n\nI ,\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. $ 60122, Respondent is subject to a civil penalty not to exceed $25,000 per\nviolation for each day of the violation up to a maximum of $500,000 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 considerthe 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.\nAs for the violation of 49 C.F.R. $ 195.416(a) (Item 4), a civil penalty of $5,000 was proposed in\nthe Notice. In its response, Respondent explained that it had informed OPS of the deficiency\nregarding cathodic protection testing at the Amarillo Terminal facility by letter dated October 16,\n2001 and that prompt corrective action had been taken. The failure to properly maintain a pipeline\nsystem can put the public safety at risk. Inspection and testing ofcorrosion control equipment are\nessential elements of pipeline maintenance. Faihue to perform documented testing within the\nrequired intervals can result in inadequate protection of the piping, potentially resulting in the\noccurrence of leaks. The last documented cathodic protection test at the Amarillo facility was\n. conducted on June 7, 2000. Therefore, it was due for re-inspection no later than September 6, 2001.\nThe Respondent was unable to demonstrate that an inspection was performed until October 1 I\n, 2001,\nexceeding the maximum interval offifteen months by over 30 days. Respondent has not presented\ninformation that warrants mitigation of the civil penalty proposed for this violation. Accordingly,\nhaving reviewed the record and considered the assessment criteria, Respondent is assessed a civil\npenalty of $5,000 for failing to comply with the requirements of 49 C.F.R. $ 195.a16(a).\nAs for the violation of 49 C.F.R. $ 195.420(b) (Item 5), a civil penalty of $32,500 was proposed in\nthe Notice. In its response, Respondent contended that the majority of the valves it failed to inspect\nin accordance with $ 195.420(b) were \"not actually necessary\" for operating its system in compliance\nwith the pipeline regulations. These valves, however, are described as regulated equipment and\nrequired to be tested by the Respondent's own procedural manual. Moreover, no evidence\ndemonstrating that these valves were unnecessary was provided, nor was any indication that\nRespondent had amended its procedures or trained its personnel to distinguish between \"necessary\"\nvalves and those it now contends are unnecessary. Respondent has not presented information that\nwarrants mitigation of the civil penalty proposed for this violation. Accordingly, having reviewed\nthe record and considered the assessment criteria, Respondent is assessed a civil penalty of $32,500\nfor failing to comply with the requirements of 49 C.F.R. $ 195.420(b).\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na total civil penalty of $37,500. A determination has been made that Respondent has the ability to\npay this penalty without adversely affecting its ability to continue business.\n\n\n\n3\nPayment of the civil penalties must be made within 20 days of service. Federal regulations\n(49 C.F.R. $ 89.21(bX3) require this paymentbe made bywiretransfer, throughthe Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are\ncontained in the enclosure. After completing the wire transfer, send a copy of the electronic funds\ntransfer receipt to the Office of the Chief Counsel (DCC-I), Research and Special Programs\nAdministration, Room 8407, U.S. Department of Transportation, 400 Seventh Street, S.W.,\nWashington, DC 20590-0001.\nQuestions conceming wire transfers should be directed to: Financial Operations Division (AlvIZ-\n120), Federal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 25770,\nOklahoma City, OK 731251. (405)9544719.\nFailwe to pay the $37,500 civil penalty will result in accrual of interest at the curent annual rate in\naccordance with 3l U.S.C. S 3717,31 C.F.R. g 901.9 and 49 C.F.R. $ 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per anmrm will be charged if payment is not\nmade within I l0 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attorney General for appropriate action in an United States District Court.\nWARNINGITEMS\nThe Notice did not propose a civil penalty or corrective action for the following Items; therefore,\nRespondent is warned that if it does not take appropriate corrective action to address the items and\nOPS finds a violation in a subsequent inspection, enforcement action will be taken.\nItem I in the Notice alleged that Respondent failed to utilize certain forms and procedures\nreferenced in its written procedural manual when conducting facility inspections.\nItem 2 in the Notice alleged that Respondent failed to properly conduct its training program\nin connection with break-out tank inspections in the Borger area.\nItem 3 in the Notice alleged that Respondent failed to properly record the month, day, and\nyear that various inspections were performed.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to petition for reconsideration of this Final\nOrder. However, upon payment of the civil penalty, the case closes automatically and Respondent\nwaives the right to petition for reconsideration. The filing of the petition automatically stays the\npayment of any civil penalty assessed. The petition must be received within 20 days of\nRespondent's receipt of this Final Order and must contain a brief statement ofthe issue(s). The terms\nand conditions ofthis Final Orderare effective on receipt.\nOcT ? 3 ?0i1?\nDate Issued\nStacey Gerard\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":9503}