{"operation":"document","citation":"CPF 420025010","title":"TEXAS EASTERN PRODUCTS PIPELINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-05-30","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.406(b), 199.105(b), 199.225(a)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025010.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025010.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420025010","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420025010","body":"Notice of Probable Violation involving TEXAS EASTERN PRODUCTS PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.406(b),  199.105(b),  199.225(a)(1). The case was opened on 2002-05-30 and is reported as closed as of 2004-08-12. Proposed civil penalty: $45,000. Assessed civil penalty: $45,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420025010_Final Order_07122004.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420025010/420025010_Final%20Order_07122004.pdf\n\n420025010_Final Order_07122004.pdf\n\nt}\nUS Deportmenl\nof Tronsporlolion\nneseorch ond\nSpeciol Progroms Adminiilrofion\n400 Sevenlh St . S.W\nWash rngton D C 20590\nJUL 1 2 2964\nBarry R. Pearl\nPresident\nTexas Eastern Products Pipeline Company LLC\n2929 AllenParkway\nHouston, TX77019\nRe: CPFNo.4-2002-5010\nDearMr. Pearl:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes findings ofviolation and assesses a civil penalty of$45,000. The\npenaltypal,rnenttermsaresetforthintheFinalOrder. Thisenforcementactionclosesautomatically\nupon palment. Your receipt ofthe Final Order constitutes service ofthat document under 49 C.F.R.\n6 190.5.\nSincerely,\n{\\ rA\n)h,*, l/lt--\nVu-.t Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\ncc: Leonard Mallett\nVice President, OPerations\nCERTIFIED MAIL - RETIIRN RECEIPT REOIIESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of\nTexas Eastem Products\nPipeline Company, LLC\nRespondent.\nCPF No. 4-2002-5010\nI\nFINAL ORDER\nPursuant to 49 U.S.C. $ 60117, representatives ofthe Office ofPipeline Safety (OPS) conducted an\ninvestigation of the Novemb er 17;2000 accident resulting in the release of crude oil at Respondent's\ntankfarmnear Texas City, Texas. As aresultoftheinvestigation, theDirector, SouthwestRegion,\nOPS, issued to Respondent, by letter dated May 30,2002, a Notice of Probable Violation and\nProposed Civil Penalty (Notice). In accordance with 49 C.F.R. $ 190.207, the Notice proposed\nfinding that Respondent had yiolated 49 C.F.R. $$ 195.4060), 199.1050),1 and 199.225(a)(l) and\nproposed assessing a civil penalty of$45,000 for the alleged violations.\nRespondent responded to the Notice by letter dated June27,2002 (Response). Respondent did not\ncontest the allegations ofviolation but provided information conceming the corrective actions it has\ntaken and requested that tlrc proposed civil penalty be reduced. Respondent did not request a\nhearing, and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the alleged violations in the Notice. Accordingly, I find\nthat Respondent violated the following sections of 49 C.F.R. Parts 195 and 199, as more fully\ndescribed in the Notice:\n49 C.F.R. $ 195.406(b) - failing to provide adequate controls and protective equipment to\ncontrol pipeline pressure within 1 l0 percent of the established maximum operating pressure\n(MOP) when the improper closure of an inlet valve (#15) to Tank No. 3 caused pressure to\nincrease above MOP:\nI The requirements previously imposed by 49 C.F.R, $ 199. 1 1(b) can now be found at\n$ 199.105(b), as redesignated by Final Rule dated September 11,2001 (66 Fed. Reg. 47114).\n\n\n\nz\n49 C.F'R. $ 199.105(b) -- failing to drug test, within 32 hours after the accident, the\nemployee responsible for closing the tank valve that caused the system pressure to exceed\nMOP;and\n49 C'F.R. $ 199'225(a)(1) - failing to test for alcohol, as soon as pracficable following the\naccident, the employee responsible for closing the tank valve that caused the system p...-rur\"\nto exceed MOP.\nThese findings ofviolation will be considered prior offenses in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OFPENALTY\nUnder 49 U.S.C' 5 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. 5 60122 and 49 C.F.R. $ 190.225 require that, in determining the amount of the civil\npenaltS I consider the following criteria: nature, circumstances, and gravit5r of the violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to puy ttr.\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondint's\nability to continue in business, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $45,000 for the violations.\nI have determined that Respondent has no financial circumstances that would prevent it from paying\non the assessed amounts and that Respondent's ability to continue in business will not be\nsignifi cantly affected.\nOPS staff took Respondent's good faith into account when proposing civil penalties in the Notice.\nI have also considered Respondent's good faith in determining the assessed penalty amounts,\nIn its Response, Respondent provided information on actions it has taken to ensure compliance with\nthe pipeline safety regulations subsequent to the accident at its Texas City Tank Farm. The actions\ndescribed in the Response, including incorporation of a new SCADA interlock and revisions to\nRespondent's drug and alcohol procedures and training, are commendable, but are also necessary\nto ensure compliance with the pipeline safety regulations. Therefore, I frnd that these actions do not\nmitigate the proposed civil penalties.\nThe Notice proposed a civil penalty of $25,000 for violation of 49 C.F.R. $ 195.406(b). Respondent\nfailed to provide adequate controls and protective equipment to control the oressure within 110\npercent of the established MOP at its Texas City Tark Farm. Having controls and equipment in\nplace to limit pressure in the event of a surge or other abnormal operating condition is critical to\nreducing the likelihood of a release and the risk posed to persons and the environment in the event\nof an accident. The nature and gravity of the violation justify the proposed civil penalty amount.\nTherefore, I assess a civil penalty of$25,000.\n\n\n\nJ\nThe Notice proposed a civil penalty of $ I 0,000 for violation of49 C.F.R. $ 199. 1 05(b). Respondent\nfailed to drug test its employee in a timely manner after the Texas City Tank Farm accident. Drug\ntesting an employee whose performance either contrjbuted to the accident or could not be completely\ndiscounted as a contributing factor to the accident is a necessary part of establishing accident\ncausation. Accordingly, failure to perform drug testing can deprive the operator and OPS of\nnecessary safety information to prevent future accidents. Therefore, I assess a civil penalty of\n$10,000.\nThe Notice proposed a civil penalty of $10,000 for violation of 49 C.F.R. $ 199.225(a)(1).\nRespondent failed to test its employee for alcohol in a timelymanner after the Texas City Tank Farm\naccident. Testing an employee for alcohol whose performance either contributed to the accident or\ncould not be completely discounted as a contributing factor to the accident is a necessary part of\nestablishing accident carrsa-tion. Aecordingly, failure to perform testing for alcohol can deprive the\noperator and OPS of necessary safety information to prevent future accidents. Therefore, I assess\na civil penalty of $ 1 0,000.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na total civil penalty of $45,000.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. $ 89.21(bX3) require this paymentbe made bywire transfer, throughtheFederal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are\ncontained in the enclosure. Questions conceming wire transfers should be directed to: Financial\nOperations Division (ANIZ-120), Federal Aviation Administration, Mike MonroneyAeronautical\nCenter, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-4719.\nFailure to pay the $45,000 civil penalty will result in accrual of interest at the current annual rate in\naccordancewith3lU.S.C.93777,31C.F.R.$901.9and49C.F.R.$89.23. Pursuanttothosesame\nauthorities, a late penalty charge of six percent (6%) per rurnum will be charged if payment is not\nmade within 1 I 0 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.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to submit a Petition for Reconsideration of this\nFinal Order. The petition must be received within 20 days of Respondent's receipt of this Final\nOrder and must contain a brief statement of the issue(s). The filing of the petition automatically\nstays the payment of any civil penalty assessed. However if Respondent submits paynent for the\ncivil penalty, the Final Order becomes the final administrative decision and the right to petition for\nrgeqnsideration is waived. The terms and conditions of this Final Order are effective on receipt.\nlt \\\nL+ ,r) \\\n'\nn\n\\;x J\nJUL l2 ztl\nStacey Gerard Date IssuedAssociate Administrator\nforPipeline Safety","truncated":false,"body_characters":9316}