{"operation":"document","citation":"CPF 420075018","title":"CHEVRON PIPE LINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2007-05-21","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.432, 195.573(c), 195.573(d), 195.589.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420075018.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420075018.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420075018","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420075018","body":"Notice of Probable Violation involving CHEVRON PIPE LINE CO. PHMSA's enforcement data identifies the cited regulations as 195.432,  195.573(c),  195.573(d),  195.589. The case was opened on 2007-05-21 and is reported as closed as of 2009-06-08. Proposed civil penalty: $48,000. Assessed civil penalty: $48,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420075018_Final Order_06082009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420075018/420075018_Final%20Order_06082009.pdf\n\n420075018_Final Order_06082009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420075018/420075018_Final%20Order_06082009_text.pdf\n\n420075018_Notice Letter_05212007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420075018/420075018_Notice%20Letter_05212007.pdf\n\n420075018_Operator Response_08022007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420075018/420075018_Operator%20Response_08022007.pdf\n\n420075018_Final Order_06082009_text.pdf\n\nJUN 08 2009\nMs. Rebecca Roberts\nPresident\nChevron Pipe Line Company\nUnocal Pipeline Company – Eastern Region\n4800 Fournace Place\nBellaire, TX 77401-2324\nRe: CPF No. 4-2007-5018\nDear Ms. Roberts:\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. I\nacknowledge receipt of and accept your wire transfer for $48,000 as payment in full of the civil\npenalty assessed in the Final Order. The Order also acknowledges your completion of the\nproposed compliance order terms to comply with the pipeline safety regulations. This case is\nnow closed. Your receipt of the Final Order constitutes service of that document under 49\nC.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n__________________________________________\nIn the Matter of )\nChevron Pipe Line Company, )\nand ) CPF No. 4-2007-5018\nUnocal Pipeline Company – Eastern Region, )\n)\n)\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nOn June 13 – 17, 2005, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration, Office of Pipeline Safety (OPS) conducted an on-\nsite pipeline safety inspection of the facility and records associated with the Unocal Beaumont\nBreakout Tank Farm in Nederland, Texas, then owned by Unocal Pipeline Company – Eastern\nRegion (Unocal or Respondent). As a result of the inspection, by letter dated May 21, 2007, the\nDirector, Southwest Region, OPS (Director), issued to Unocal and the current owner of the\nfacility, Chevron Pipeline Company (Chevron or Respondent), a Notice of Probable Violation,\nProposed Civil Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R.\n§ 190.207, the Notice proposed finding that Unocal had committed certain violations of 49\nC.F.R. Part 195 and proposed assessing a civil penalty of $48,000 for the alleged violations. The\nNotice also proposed ordering Chevron to take certain measures to correct the alleged violations.\nAfter requesting an extension of time to respond, Chevron responded by letter dated August 2,\n2007 (Response), explaining that Chevron had merged with Unocal, and that certain corrective\nactions were being taken to address the issues raised in the Notice. Chevron also responded by\nsubmitting a wire transfer the same date, in the amount of the proposed civil penalty ($48,000),\nwaiving further right to respond and authorizing the entry of this Final Order.\nFINDINGS OF VIOLATION\nPursuant to 49 U.S.C. § 60122 and 49 C.F.R. §§ 190.209(a)(1) and 190.213, I find that\nRespondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.432(b) and (d), which\nstates:\n\n\n\n2\n§ 195.432 Inspection of in-service breakout tanks.\n(a) . . . .\n(b) Each operator shall inspect the physical integrity of in-service atmospheric\nand low-pressure steel aboveground breakout tanks according to section 4 of API\nStandard 653. However, if structural conditions prevent access to the tank\nbottom, the bottom integrity may be assessed according to a plan included in the\noperations and maintenance manual under §195.402(c)(3) . . . .\n(d) The intervals of inspection specified by documents referenced in\nparagraphs (b) and (c) of this section begin on May 3, 1999, or on the operator’s\nlast recorded date of the inspection, whichever is earlier.\nThe Notice alleged that Unocal failed to properly inspect the physical integrity of its breakout\ntanks in accordance with section 4 of API Standard 653. Although the company’s records\nindicated that inspections had been conducted, the actual conditions of the tanks as observed by\nthe PHMSA representative showed that necessary maintenance and repairs had not been properly\nidentified and performed to comply with section 4 of API Standard 653. In its Response,\nChevron explained that the tanks at issue and all former Unocal facilities are now being\ninspected and repaired under Chevron’s maintenance and inspection procedures to ensure\ncompliance with API 653 requirements. Accordingly, I find that Respondent violated 49 C.F.R.\n§ 195.432(b) and (d) as alleged in the Notice.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.573(c), which states:\n§ 195.573 What must I do to monitor external corrosion control?\n(a) . . . .\n(c) Rectifiers and other devices. You must electrically check for proper\nperformance each device in the first column at the frequency stated in the second\ncolumn.\nDevice Check frequency\nRectifier . . . . At least six times each calendar year, but with\nintervals not exceeding 2 1/2 months . . . .\nThe Notice alleged Unocal failed to electrically check for proper performance each rectifier at\nleast six times each calendar year, with intervals not exceeding 2 1/2 months. Specially, one\nrectifier was allowed to fail (or taken off line) and not repaired or replaced for almost 2 years.\nAll rectifier readings were late or missed for several required intervals during 2003 and 2004. In\naddition, the operator’s records were incomplete and did not explain the addition of a new\nrectifier. In its Response, Chevron explained that Unocal technicians have been trained to use\nChevron’s software for record keeping and maintenance management. Accordingly, I find that\nRespondent violated 49 C.F.R. § 195.573(c) as alleged in the Notice.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.573(d), which states:\n§ 195.573 What must I do to monitor external corrosion control?\n(a) . . . .\n\n\n\n3\n(d) Breakout tanks. You must inspect each cathodic protection system\nused to control corrosion on the bottom of an aboveground breakout tank to\nensure that operation and maintenance of the system are in accordance with\nAPI Recommended Practice 651. However, this inspection is not required if\nyou note in the corrosion control procedures established under §195.402(c)(3)\nwhy compliance with all or certain operation and maintenance provisions of\nAPI Recommended Practice 651 is not necessary for the safety of the tank.\nThe Notice alleged that Unocal failed to ensure that operation and maintenance of the cathodic\nprotection system used to control corrosion on the bottom of breakout tanks was in accordance\nwith API Recommended Practice 651. Cathodic protection on some tank bottoms and piping did\nnot meet the applicable -850 mV “on” potential criterion. Unocal also did not perform testing to\ndetermine and account for voltage (IR) drop. In its Response, Chevron explained that it will\nreview and revise the design of the cathodic protection systems to bring cathodic protection up to\nadequate levels. Accordingly, I find that Respondent violated 49 C.F.R. § 195.573(d) as alleged\nin the Notice.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.589, which states:\n§ 195.589 What corrosion control information do I have to maintain?\n(a) You must maintain current records or maps to show the location of—\n(1) Cathodically protected pipelines;\n(2) Cathodic protection facilities, including galvanic anodes, installed\nafter January 28, 2002; and\n(3) Neighboring structures bonded to cathodic protection systems.\n(b) Records or maps showing a stated number of anodes, installed in a\nstated manner or spacing, need not show specific distances to each buried\nanode.\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by\nthis subpart in sufficient detail to demonstrate the adequacy of corrosion\ncontrol measures or that corrosion requiring control measures does not exist.\nYou must retain these records for at least 5 years, except that records related\nto §§195.569, 195.573(a) and (b), and 195.579(b)(3) and (c) must be retained\nfor as long as the pipeline remains in service.\nThe Notice alleged that Unocal failed to maintain current records or maps showing the type of\ncathodic protection being used on each tank. The Notice further alleged that the operator failed\nto maintain current records documenting and explaining the details of a new rectifier added to\nthe system. In its Response, Chevron explained that it has prepared hard copies and electronic\ndrawings of the terminal showing the location and details of cathodic protection devices, bonds,\nand test stations. Accordingly, I find that Respondent violated 49 C.F.R. § 195.589 as alleged in\nthe Notice.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n\n\n\n4\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. The Notice proposed a total civil penalty of $48,000 for the violation of § 195.573(c)\nin Item 2.\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: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; the Respondent’s ability to pay the penalty and any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require.\nHaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $48,000 for the violation of § 195.573(c), which has already been paid by Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, 3, and 4 in the Notice for\nviolations of §§ 195.432(b) and (d), 195.573(c), 195.573(d), and 195.589, respectively. Under\n49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids by\npipeline or who owns or operates a hazardous liquid pipeline facility is required to comply with\nthe applicable safety standards established under chapter 601. The Director has indicated that\nRespondent has taken the following actions to comply with the terms of the proposed compliance\norder:\n• Chevron has initiated an inspection and repair program for breakout tanks to ensure\ncompliance with § 195.432(b) and (d) (Item 1). On June 19, 2008, a representative from\nthe Southwest Region, OPS, performed a specialized inspection of Chevron’s procedures\nand records, and verified field conditions at the breakout tank facility in Nederland,\nTexas.\n• Chevron will use computerized record keeping software to track maintenance and\nrecurring inspections to ensure compliance with § 195.573(c) (Item 2).\n• Chevron has developed and implemented a plan to revise the design of the cathodic\nprotection system at the breakout tank facility in accordance with § 195.573(d) (Item 3).\n• Chevron has developed and implemented a plan to show the source of cathodic protection\ncurrents to breakout tanks on a spreadsheet in accordance with § 195.589 (Item 4).\nChevron also completed terminal drawings showing the locations of all cathodic\nprotection devices, bonds, and test stations. In addition, the company will use computer\nsoftware programs for standardized record keeping.\n\n\n\n5\nAccordingly, since compliance has been achieved with respect to these violations, the\ncompliance terms are not included in this Order.\nThe terms and conditions of this Final Order shall be effective upon receipt.\n___________________________________ __________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420075018_Notice Letter_05212007.pdf\n\n,t \\t\nU.S. Deportmenl\nof Tronsportotion\nPlpetlne ono\nHozorclou3 ltoterlots\nlcmlnlsrotlon\n8701 Soutr Gessner, Suite 1110\nHouston, TX 77074\nsot€ily\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 2'1,20A7\nMs. Rebecca Roberts\nChevron Pipe Line Company\n4800 Fournace Place\nBeflaire, Texas 77 401 -2324\nMr Terry Duhon\nUnocal Pipeline Co. Eastern Region\nOne Sugar Creek Place\n14141SW Freeway\nSugarfand, TX 77478\ncPF 4-2007-5018\nDear Ms Rebecca Roberts and Mr. Terry Duhon:\nOn June 13 - 17,2005, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected\nthe Unocal Beaumont Breakout Tank Farm, now owned by Chevron Pipeline Company.\nAt that time the O & M procedures and records were reviewed in Nederland, Texas.\nAs a result of the inspection, it appears that you have committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items\ninspected and the probable violations are:\n1. 5195.432 Breakout tanks.\n(b) Each operator shall inspect the physical integrity of in-service\natmospheric and low-pressure steel aboveground breakout tanks\naccording to section 4 of API Standard 653. However, if structural\nconditions prevent access to the tank bottom, the bottom integrity may\n\n\n\nbe assessed according to a plan included in the operations and\nmaintenance manual under $19S.a02(cX3).\n(d) The intervals of inspection specified by documents referenced in\nparagraphs (b) and (c) of this section begin on May 3, 1999, or on the\noperator's last recorded date of the inspection, whichever is earlier.\nThe inspection of your tank farm revealed that many of the tanks did not meet\nAPI 653 requirements. API 653 requires periodic inspections of breakout tanks,\non specific schedules. Records wero reviewed that indicate the required\ninspections are being conducted. Actual conditions of the tanks indicate that no\nactions are being generated from the inspection reports. The conditions of the\ntanks show that the tanks are being neglected and the regulatory required repairs\nand maintenance have not been conducted.\n2. 5195.573 What must I do to monitor external corrosion control?\n(c) Rectifiers and other devices. You must electrically check for proper\nperformance each device in the first column at the frequency stated in the\nsecond column.\nRectifier...........At least six times each calendar year, but with intervals not\nexceeding 2 % months.\nThe Bighill Rectifier @ BMT terminal, RSB 458 was off line from some time after\nthe July 2002 reading, through the latest reading at the time of the inspection.\nRectifier records for January 2004 indicate that the rectifier is'down', otherwise\nthere is no note to explain why this rectifier was down for so long, and not\nrepaired.\nReadings were taken on all rectifiers through the July 2003 set of readings. No\nreadings were taken on the 24 rectifiers for the September, November, or\nJanuary, 2004 reading'window'. Afterthe June 2004 readings were taken, 80\ndays elapsed before the next readings were taken on September 2,2Q04, over\nthe 2 % month window for readings on all24 rectifiers. From the September 02,\n2004 readings, 109 days elapsed before the next readings were taken on the 24\nrectifiers, on December20,2004, overthe 2/zmonth window. Afterthe\nDecember 20, 2A04, readings were taken ,77 days elapsed before the next\nreadings taken on 31812005, over the 2lzmonth window.\nln June 2OC/', a 25th rectifier was added to the list. No explanation was given.\nTo summarize, one rectifler was allowed to fail/ taken off line, and not replaced\nfor almost 2 years. All rectifier readings were late or missed for several required\nreadings during 2004. Operator records are incomplete and do not explain the\naddition of a 25th rectifier into the system.\n3. 5195.573 What must I do to monitor external corrosion control?\n(d) Breakout tanks. You must inspect each cathodic protection system\nused to control corrosion on the bottom of an aboveground breakout tank\nto ensure that operation and maintenance of the system are in accordance\nwith API Recommended Practice 651. However, this inspection is not\n\n\n\nrequired if you note in the corrosion control procedures established under\n$195.402(cX3) why compliance with all or certain operation and\nmaintenance provisions of APlRecommended Practice 651 is not\nnecessary for the safety of the tank.\nThe cathodic protection on tank bottom and piping is not adequate. From the\n2005 DOT inspection it was noted that some tanks that do not meet -850 mV on\npotential. The operator has not done testing to determine lR drop or otherwise\naccount for lR drop.\n4. 5195.589 What corrosion control information do I have to maintain?\na) You must maintain current records or maps to show the location of-\n(1) Gathodically protected pipelines;\n(2) Cathodic protection facilities, including galvanic anodes,\ninstalled after January 28,2002; and\n(3) Neighboring structures bonded to cathodic protection systems.\nb) Records or maps showing a stated number of anodes, installed in a\nstated manner or spacing, need not show specific distances to each\nburied anode.\nc) You must maintain a recorcl of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test\nrequired by this subpart in sufficient detailto demonstrate the\nadequacy of corrosion control measures or that corrosion requiring\ncontrol measures does not exist. You must retain these records for\nat least 5 years, except that records related to Secs. 195.569,\n195.573(a) and (b), and 195.579(bX3) and (c) must be retained for as\nlong as the pipeline remains in service.\nThe operator's conosion records do not have maps and records of what type\nof cathodic protection is being used on all the tanks. Operator records are\nincomplete and do not explain the addition of a 25h rectifier into the system.\nUnder 49 United States Code, S 60122, you are subject to a civil penalty not to exceed\n$100,000 for each violation for each day the violations persists up to a maximum of\n$1,000,000 for any related series of violations. The Compliance Officer has reviewed\nthe circumstances and supporting documentation involved in the above probable\nviolation(s) and has recommended that you be preliminarily assessed a civil penalty of\n$ITOTAL AMOUNT] as follows:\nItem number\n2\nPENALTY\n$48,000\nWith respect to items 1 through 4 pursuant to 49 United States Code $ 60118, the\nPipeline and Hazardous Materials Safety Administration proposes to issue a Compliance\nOrder to Chevron Pipe Line Company. Please refer to the Proposed Compliance arder\nwhich is enclosed and made a part of this Notice.\n\n\n\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the\nresponse options. lf you do not respond within 30 days of receipt of this Notice, this\nconstitutes a waiver of your right to contest the allegations in this Notice and authorizes\nthe Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue a Final Order.\nln your correspondence on this matter, please refer to CPF 4-2007-5018 and for each\ndocument you submit, please provide a copv in electronic format whenever possible.\nSincerely,\n-/il(/r/\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous\nMaterials Safety Ad min istration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code $ 60118, the Pipeline and Hazardous Materials\nSafety Administration (PHMSA)proposes to issue to Chevron Pipe Line Company a\nCompliance Order incorporating the following remedial requirements to ensure the\ncompliance of Chevron Pipe Line Company with the pipeline safety regulations:\n1. Perform an audit to ensure Chevron Pipe Line Company is in compliance\nS195.432(b). This audit shall consist of:\n. Demonstrate that the Chevron Pipe Line Company break-out tanks meet\nAPl653 requirements.\n2. Perform an audit to ensure Chevron Pipe Line Company is in compliance\n$195.573(c). This audit shall consist of:\n. Demonstrate that all Chevron Pipe Line Company breakout tanks\nrectifiers are being read to meet the minimum safety requirement, as\nprescribed by 195.573 (c), and are in compliance with applicable\nprocedures.\n. Based upon the review, develop a plan for conducting rectifier readings to\nkeep Chevron Pipe Line Company in compliance.\n3. Perform an audit to ensure Chevron Pipe Line Company is in compliance\nS195.573(d). This audit shall consist of:\n. Demonstrate that all Chevron Pipe Line Company breakout tianks meet\ncathodic protection requirements and that they are in compliance with\napplicable procedures.\n. Based upon the review, develop a plan for conducting cathodic protection\nsurveys to keep Chevron Pipe Line Company in compliance.\n4. Perform an audit to ensure Chevron Plpe Line Company is in compliance with\n5195.589. This audit shallconsist of:\n. Review allapplicable records of Chevron Pipe Line Company to which\ntanks have complete records and which have incomplete records, showing\nwhat type of CP system is protecting the respective tank.\n. Based upon the review, develop a plan for updating the cathodic\nprotection records to bring Chevron Pipe Line Company into compliance.\n5. Chevron shall maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to Rod\nSeeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety\nAdministration. Costs shall be reported in two categories: 1) total cost\nassociated with preparation/revision of plans, procedures, studies and analyses,\n\n\n\nand 2) total cost associated with replacements, additions and other changes to\npipeline infrastructure.\nSubmit to the Director, Southwest Region, Pipeline and Hazardous Materials\nSafety Administration, 8701 South Gessner, Suite 1110, Houston, Texas 77074.\nResults of surveys and plans, with time tables, must be submifted within 30 days\nfollowing the receipt of the FinalOrder. All items shallbe completed within 365\ndays following the receipt of the Final Order.","truncated":false,"body_characters":23510}