{"operation":"document","citation":"CPF 420067005","title":"CHEVRON U.S.A. INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2006-09-19","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(e)(1), 195.452(g)(4), 195.452(i)(2), 195.452(i)(3), 195.452(i)(4), 195.452(j)(2), 195.452(j)(3), 195.452(k).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420067005.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420067005.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420067005","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420067005","body":"Notice of Probable Violation involving CHEVRON U.S.A. INC. PHMSA's enforcement data identifies the cited regulations as 195.452(e)(1),  195.452(g)(4),  195.452(i)(2),  195.452(i)(3),  195.452(i)(4),  195.452(j)(2),  195.452(j)(3),  195.452(k). The case was opened on 2006-09-19 and is reported as closed as of 2008-02-13. 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\n420067005_Final Order_02062007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420067005/420067005_Final%20Order_02062007.pdf\n\nCPF_NO_4-2006-7005.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420067005/CPF_NO_4-2006-7005.pdf\n\n420067005_Final Order_02062007.pdf\n\n400 Seventh Street, S.W.\nU.S.Department Washington, D.C. 20590\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration\nMs. Melody Meyer\nVice President, Gulf of Mexico\nChevron USA, Inc.\n935 Gravier Street\nNew Orleans, LA 70 1 12\nRe: CPF No. 4-2006-7005\nDear Ms. Meyer:\nEnclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety\nin the above-referenced case. It makes findings of violation and assesses a civil penalty. I\nacknowledge receipt of and accept your October 19,2006 payment of $1 0,000 as payment in full\nof the civil penalty assessed in the Final Order. The Final Order also specifies actions to be\ntaken to comply with the pipeline safety regulations. When the terms of the compliance order\nare completed, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Your receipt of this Final Order constitutes service under 49 C.F.R. 5 190.5.\nSincerely,\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\nVU CERTIFIED MAIL -RETURN RECEIPT REQUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of\nChevron USA, Inc., CPF NO. 4-2006-7005\nRespondent\nFINAL ORDER\nOn June 12 through 16,2006, pursuant to 49 U.S.C. 5 601 17, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) and Louisiana Department of Natural\nResources conducted an on-site pipeline safety inspection of Respondent's integrity management\nprogram (IMP) and procedures in New Orleans, Louisiana. As a result of the inspection, the\nDirector, Southwest Region, PHMSA, issued to Respondent, by letter dated September 19, 2006,\na Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding that Respondent\ncommitted violations of 49 C.F.R. 5 195.452 and proposed assessing a civil penalty of $10,000\nfor the alleged violations. The Notice also proposed that Respondent take certain measures to\ncorrect the alleged violations.\nRespondent responded to the Notice by letter dated October 17, 2006. Respondent did not\ncontest the allegations, agreed to pay the proposed civil penalty, and stated its intent to comply\nwith the Proposed Compliance Order. Respondent paid the amount of the proposed civil penalty\n($10,000) on October 19, 2006, waiving further right to respond and authorizing the entry of this\nFinal Order.\nFINDINGS OF VIOLATION\nPursuant to 49 C.F.R. 5 190.213 and 49 U.S.C. 5 60122, I find that Respondent violated the\nfollowing sections of 49 C.F.R. Part 195, as more fully described in the Notice:\n49 C.F.R. 5 195.452(e)(l) - failing to establish an integrity assessment schedule that\nprioritizes pipeline segments for assessment based on relevant risk factors, including the\nfactors specified in 5 195.452(e)(l). In addition, Respondent failed to update the risk\nmodel with the most accurate information to reflect current conditions.\n\n\n\n49 C.F.R. 5 195.452(f)(4), (f)(8), (g), (h)(l) and (h)(2) - failing to develop sufficient\nprocesses for data integration and information analysis. Respondent's processes for data\nintegration and information analysis did not document in sufficient detail the processes\nperformed by the Facility Engineer to support evaluation of the condition of the pipeline\nor to make decisions related to the repair or remediation of pipeline defects.\n49 C.F.R. 5 195.452(f)(6), (i)(l) and (i)(2) -failing to develop a process for identification\nof preventive and mitigative measures that considers all relevant risk factors, including\nthose factors specified in 5 195.452(i)(l) and (i)(2).\n49 C.F.R. fj 195.452(f)(6) and (i)(3) -failing to develop a process for evaluation of leak\ndetection capabilities. In addition, Respondent failed to perform an evaluation of leak\ndetection capabilities and modify those capabilities, as necessary, to protect high\nconsequence areas (HCAs).\n49 C.F.R. 5 195.452(f)(6) and (i)(4) -failing to develop a process for determining the\nneed for emergency flow restricting devices (EFRD). Respondent failed to determine the\nneed for EFRD and install EFRD as necessary to protect HCAs.\n49 C.F.R. 5 195.452(f)(5), (j)(l) and (j)(2) - failing to develop a continual process for\nassessment and evaluation. In addition, Respondent failed to establish the frequency for\nevaluation based on applicable risk factors, including those factors specified in\n5 195.452Q)(2).\n49 C.F.R. 5 195.452(f)(5), Q)(1) and (j)(3) -failing to establish intervals and priorities\nfor continually assessing integrity that are based on applicable risk factors, including\nthose factors specified in 5 195.452(j)(3).\n49 C.F.R. 5 195.452(f)(7) and (k) - failing to develop a process to measure the\neffectiveness of its IMP, including methods to measure whether the program is effective\nin assessing and evaluating the integrity of each pipeline segment and in protecting\nHCAs.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent. Having reviewed the record and considered the assessment\ncriteria, I assess Respondent a civil penalty of $10,000 for the violations of 5 195.452(f)(6),\n( ( 3 , and ()(4). The civil penalty has already been paid by Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to the violations. Under 49 U.S.C.\n5 601 18(a), each person who engages in the transportation of hazardous liquid by pipeline or\nwho owns or operates a hazardous liquid pipeline facility is required to comply with the\napplicable safety standards established under Chapter 601. Pursuant to the authority of 49\nU.S.C. 5 601 18(b) and 49 C.F.R. 5 190.2 17, Respondent is ordered to take the following actions\n' These violations were numbered Items 4 and 5 in the Notice.\n\n\n\nto ensure compliance with the pipeline safety regulations applicable to its operations.\nRespondent must-\n1. Establish an integrity assessment schedule that prioritizes pipeline segments for\nassessment in accordance with 5 195.452(e)(l). The schedule must be based on relevant\nrisk factors, including those factors specified in 5 195.452(e)(l). Modify the current \"risk\nevaluation\" process for analyzing risks (threats and consequences) to ensure all risk\nfactors are considered. Develop and document a process to ensure the risk model is\nupdated with accurate information to reflect current conditions and operating\nenvironment. Develop and document guidelines for the use of subject matter experts to\nensure consistent application of the process and repeatability. The risk evaluation\nprocess must provide a means for identification of significant threats to pipeline integrity.\n2. Develop data integration and information analysis processes (5 195.452(g)) to ensure\nconsistent application and repeatability when those processes are performed by the\nFacility Engineer. The processes must integrate additional sources of pertinent risk-\nfactor data and assessment results to support evaluation of the condition of the pipeline,\nor to make decisions related to the repair or remediation of pipeline defects. The\nprocesses must include specified inputs; a detailed process to collect and evaluate the\ndata; and a description of expected outputs for quality assurance/quality control.\n3. Develop a process for identification of additional preventive and mitigative measures in\naccordance with 5 195.452(0(6), (i)(l) and (i)(2). The process must be based on an\nanalysis of relevant risk factors, including those factors specified in 5 195.452(i)(l) and\n(i)(2). The process must be documented in sufficient detail to ensure consistent\napplication. Respondent may integrate its Prevention and Mitigation Manuals, which\naddress other required programs, into the IMP as appropriate.\n4. Develop and document a process for evaluating leak detection capabilities and for\nmodifying those capabilities, as necessary, in accordance with 5 195.452(0(6) and (i)(3).\nPerform an evaluation and any necessary modifications in accordance with the process\ndeveloped and 5 195.452(0(6) and (i)(3).\n5. Develop and document a process for determining the need for EFRD in accordance with\n9 195.452(0(6) and (i)(4). Perform the evaluation and install EFRD where needed to\nprotect an HCA in accordance with the process developed and 5 195.452(0(6) and (i)(4).\n6. Develop and document a continual process for assessment and evaluation in accordance\nwith 5 195.452(0(5), (j)(l) and (j)(2). The process must document detailed requirements\nfor performing periodic evaluation as frequently as needed to assure pipeline integrity.\nThe frequency for evaluation must be based on applicable risk factors, including those\nfactors specified in 5 195.452(j)(2).\n7. Develop and document a process for determining reassessment intervals and priorities for\ncontinually assessing integrity in accordance with 5 195.452(0(5), (j)(l), and (j)(3). The\nprocess must be based on applicable risk factors, including those factors specified in\n\n\n\n§ 195.4526)(3), and must provide sufficient detail to ensure that the process can be\nconsistently applied across all pipeline segments in the IMP.\n8. Develop and document a process to measure the effectiveness of its IMP in accordance\nwith § 195.452(f)(7) and (k). The process must include methods to measure whether the\nprogram is effective in assessing and evaluating the integrity of each pipeline segment\nand in protecting HCAs. The process must be sufficiently detailed to ensure consistent\napplication and must ensure that the results of the evaluation are communicated within\nthe organization.\n9. Maintain documentation of the safety improvement costs associated with fulfilling this\nCompliance Order. Report the total costs as follows: (a) total cost associated with\npreparation, revision of plans and procedures, and performance of studies and analyses;\nand (b) total cost associated with physical changes to the pipeline infrastructure, if\napplicable, including replacements and additions.\n10. Complete each of the above items and submit documentation of compliance within 30\ndays of receipt of this Final Order. Documentation shall be submitted to the Director,\nSouthwest Region, Office of Pipeline Safety, 870 1 South Gessner Dr, Suite 1 1 10,\nHouston, TX 77074-2949.\nIn a letter dated October 24, 2006, Respondent requested additional time to comply with the\nterms of the compliance order. An extension of time is not granted by this order, because\nRespondent has had additional time by virtue of the effective date of this order. However, the\nDirector, Southwest Region, may grant an extension of time to comply with any of the above\nrequired items upon a written request timely submitted by the Respondent demonstrating good\ncause for an extension.\nFailure to comply with this Order may result in administrative assessment of civil penalties up to\n$100,000 per day for each violation and in referral to the Attorney General for appropriate relief\nin a district court of the United States. The terms and conditions of this Final Order are effective\non receipt.\nFEB - 6 2007\nate Issued\n~ c t i n ~ Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":12052}