# TE PRODUCTS PIPELINE COMPANY, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 420105011
- **title:** TE PRODUCTS PIPELINE COMPANY, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2010-06-22
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.54.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-420105011.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420105011.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420105011
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420105011
**body:**

Notice of Probable Violation involving TE PRODUCTS PIPELINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulation as 195.54. The case was opened on 2010-06-22 and is reported as closed as of 2012-12-14. Proposed civil penalty: $22,500. Assessed civil penalty: $22,500. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420105011_Final Order_12142012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105011/420105011_Final%20Order_12142012.pdf

420105011_Final Order_12142012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105011/420105011_Final%20Order_12142012_text.pdf

420105011_NOPV PCP PCO_06222010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105011/420105011_NOPV%20PCP%20PCO_06222010.pdf

420105011_NOPV PCP PCO_06222010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105011/420105011_NOPV%20PCP%20PCO_06222010_text.pdf

420105011_Final Order_12142012_text.pdf

DECEMBER 14, 2012
Mr. Terry Hurlburt
Group Senior Vice President, Operations & EHS&T
TE Products Pipeline Company, LLC
1100 Louisiana Street
Houston, TX 77002-5227
Re: CPF No. 4-2010-5011
Dear Mr. Hurlburt:
Enclosed please find the Final Order issued for the above-referenced case. It makes a finding of
violation and assesses a civil penalty of $22,500. This letter acknowledges receipt of payment of
the full penalty amount, by wire transfer, dated July 9, 2012. It further finds that TE Products
Pipeline Company, LLC has completed the actions specified in the Notice to comply with the
pipeline safety regulations. This enforcement action is now closed. Service of the Final Order
by certified mail is deemed effective upon the date of mailing, or as otherwise provided under
49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: 2893
BJ Walker, Esq., Rose Law Firm, 120 East Fourth Street, Little Rock, Arkansas 72201-
Mr. R. M. Seeley, Director, Southwest Region, OPS
Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
TE Products Pipeline Company, LLC, ) )
)
)
Respondent. )
____________________________________)
CPF No. 4-2010-5011
FINAL ORDER
Pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), initiated an investigation of an
accident involving the explosion of an out-of-service breakout tank operated by TE Products
Pipeline Company, LLC (TEPPCO or Respondent) at the McRae Product Terminal near Garner,
Arkansas on May 12, 2009. Respondent owns and operates refined products and liquefied
petroleum gas pipelines in the United States. TE Products Pipeline Company, LLC is a
subsidiary of TEPPCO Partners LP. In its correspondence with PHMSA throughout the course
of this case, Respondent has referred to itself as “TEPPCO.”
The explosion of the out-of-service breakout tank occurred during the installation of a gauge pole
in the tank. Gauge poles are intended to reduce emissions and product loss from aboveground
storage tanks and breakout tanks. After the tank was emptied and cleaned, hazardous vapors
were ignited when a welder used a flame cutter to cut the internal floating roof. The explosion
and destruction of the tank resulted in three fatalities of contract personnel working inside the
tank.
The Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated
June 22, 2010, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In
accordance with 49 C.F.R. § 190.207, the Notice proposed finding that TEPPCO had violated
49 C.F.R. § 195.54, and proposed assessing a civil penalty of $22,500 for the alleged violation.
TEPPCO responded to the Notice by letter dated July 22, 2010. Respondent contested the
allegation, presented information seeking mitigation and/or elimination of the proposed penalty,
and requested a hearing. The hearing was to include discussion of this case and also a follow up
case related to the May 12, 2009 incident concerning TEPPCO’s alleged failure to follow its own
procedures, C.P.F. 4-2010-5015.



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By letter dated May 21, 2012, Respondent withdrew its request for a hearing and thereby
authorized entry of this Final Order without further notice. On July 7, 2012, Respondent paid the
proposed civil penalty of $22,500. Notwithstanding its payment of the civil penalty, TEPPCO
asked for permission to submit a formal response and documentation for consideration of the
hearing officer prior to preparation of this Final Order. On July 30, 2012, TEPPCO submitted
said document, which included deposition testimony related to ongoing litigation for tortious
suits, documents concerning the cleaning and planning for the gauge pole installation, and
contracts between Respondent and its contractors for the project. Respondent also requested that
PHMSA “acknowledge all that TEPPCO did to ensure the work was done safely, in accordance
with regulations and guiding safety principles.” Under 49 C.F.R. § 190.209(a)(1), however,
payment of the penalty serves to close the case with prejudice to Respondent. Therefore, the
additional information provided and the defenses asserted by Respondent are neither discussed
nor considered in this Order. The findings and conclusions set forth below are based entirely on
the information referenced in the Notice and discussed in this Order, insofar as such information
relates to the specific regulatory violations alleged in the Notice.
FINDING OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 195.54, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.54, which states:
§ 195.54 Accident reports.
(a) Each operator that experiences an accident that is required to be
reported under §195.50 shall as soon as practicable, but not later than 30
days after discovery of the accident, prepare and file an accident report on
DOT Form 7000-1, or a facsimile.
(b) Whenever an operator receives any changes in the information
reported or additions to the original report on DOT Form 7000-1, it shall
file a supplemental report within 30 days.
The Notice alleged that Respondent violated 49 C.F.R. § 195.54 by failing to file a supplemental
report after it received updated information about the cause of the May 12, 2009 incident.
Specifically, the Notice alleged that TEPPCO failed to file a supplemental report within 30 days
after it obtained a failure investigation report from Baker Engineering and Risk Consultants, Inc.
(BakerRisk) on March 5, 2010.1 The report concluded that the probable cause of the explosion
was ignition of a flammable gasoline/air mixture inside the floating roof pontoons, created by
leakage of gasoline vapors into the pontoons. As of May 19, 2010, a supplemental PHMSA
7000-1 report still had not been filed by Respondent to update the original report with the
information included in the BakerRisk report.
By May 19, 2010, Respondent had also not reported estimated losses as a result of the accident
in the PHMSA 7000-1 report on file (20090164-8872).
Respondent did not contest this allegation of violation. Accordingly, I find that Respondent
1 See The BakerRisk Report # 01-02565-001-09, as included in the Violation Report.



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violated 49 C.F.R. § 195.54 by failing to file a supplemental report after it received changes in
the information reported in the original report.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any
related series of violations. In determining the amount of a civil penalty under 49 U.S.C.
§ 60122 and 49 C.F.R. § 190.225, PHMSA must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s
ability to pay the penalty and any effect that the penalty may have on its ability to continue doing
business; and the good faith of Respondent in attempting to comply with the pipeline safety
regulations. In addition, PHMSA may consider the economic benefit gained from the violation
without any reduction because of subsequent damages, and such other matters as justice may
require. The Notice proposed a total civil penalty of $22,500 for the violations cited above.
Item 1: The Notice proposed a civil penalty of $22,500 for Respondent’s violation of 49 C.F.R.
§ 195.54, for failing to file a supplemental report after it received changes in the information
reported in the report. Accordingly, I assess Respondent a civil penalty of $22,500 for violation
of 49 C.F.R. § 195.54.
TEPPCO paid the proposed penalty, which serves to close the case with prejudice to Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49
C.F.R. § 195.54. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of
hazardous liquids or who owns or operates a pipeline facility is required to comply with the
applicable safety standards established under chapter 601. The Director indicates that
Respondent has taken the following actions specified in the proposed compliance order:
1. With respect to the violation of § 195.54 (Item 1), Respondent filed a supplemental report on
May 26, 2011.
Accordingly, I find that compliance has been achieved with respect to this violation. Therefore,
the compliance terms proposed in the Notice are not included in this Order.



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The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

420105011_NOPV PCP PCO_06222010_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
June 22, 2010
Mr. Terry Hurlburt
Senior Vice President
Texas Eastern Products Pipeline Company, LLC
P. O. Box 4735
Houston, Texas 77210-4735
CPF 4-2010-5011
Mr. Hurlburt:
In May, 2009, representatives of the Pipeline and Hazardous Materials Safety Administration
(PHMSA) pursuant to Chapter 601 of 49 United States Code investigated an accident that
occurred on May 12, 2009 at Texas Eastern Products Pipeline Company, LLC’s (TEPPCO)
McRae Product Terminal near Garner, AR.
As a result of the accident investigation, it appears that you have committed a probable violation
of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected
and the probable violation is:
1. §195.54 Accident reports.
(a) Each operator that experiences an accident that is required to be reported under
§195.50 shall as soon as practicable, but not later than 30 days after discovery of the
accident, prepare and file an accident report on DOT Form 7000-1, or a facsimile.
(b) Whenever an operator receives any changes in the information reported or
additions to the original report on DOT Form 7000-1, it shall file a supplemental
report within 30 days.



TEPPCO failed to file a supplemental report for the McRae Product Terminal facility accident
that occurred on May 12, 2009 within 30 days after the failure investigation report was obtained
that provided information on the probable cause of failure. On May 12, 2009, at approximately
2:17 p.m. CST, an explosion occurred in a gasoline storage tank, Tank 1303, at TEPPCO’s
McRae Product Terminal near Garner, AR. Three contractor employees were fatally injured in
the explosion. A failure analysis was performed by Baker Engineering and Risk Consultants, Inc
(BakerRisk) of San Antonio, TX. The probable cause of the explosion was determined to be
deflagration of a flammable gasoline/air mixture inside the floating roof pontoons, created by
leakage of gasoline vapors into the pontoons, and which was ignited by an oxygen/acetylene
cutting torch being used by C&C Welding personnel. The BakerRisk Report # 01-02565-001-09
was provided by BakerRisk to the operator on or about March 5, 2010. As of May 19, 2010, a
supplemental PHMSA 7000-1 report has not been filed, updating the original report with the
final failure report information as to the cause of the accident. There have also not been any
losses estimated by TEPPCO as a result of this accident in the PHMSA 7000-1 report on file
(20090164-8872).
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000
for each violation for each day the violation persists up to a maximum of $1,000,000 for any
related series of violations. The Compliance Officer has reviewed the circumstances and
supporting documentation involved in the above probable violation(s) and has recommended that
you be preliminarily assessed a civil penalty of $22,500 as follows:
Item number PENALTY
1 $ 22,500
Proposed Compliance Order
With respect to item number 1 pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to TEPPCO.
Please refer to the Proposed Compliance Order, which is enclosed and made a part of this
Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Compliance Proceedings. Please refer to this document and note the response options. Be
advised that all material you submit in response to this enforcement action is subject to being
made publicly available. If you believe that any portion of your responsive material qualifies for
confidential treatment under 5 U.S.C. 552(b), along with the complete original document you
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must provide a second copy of the document with the portions you believe qualify for
confidential treatment redacted and an explanation of why you believe the redacted information
qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30 days
of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this
Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in
this Notice without further notice to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPF 4-2010-5011 and for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous
Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
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PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Texas Eastern Products Pipeline Company, LLC
(TEPPCO) a Compliance Order incorporating the following remedial requirements to ensure the
compliance of TEPPCO with the pipeline safety regulations:
1. In regard to Item Number 1 of the Notice pertaining to failure to comply with the
requirements of §195.54, TEPPCO must immediately file a supplemental DOT
Form 7000-1 report for number 20090164 specifying the cause of failure of the
Tank 1303 explosion at the McRae Products Terminal near Garner, AR on May
12, 2009 and updating any other information obtained since the accident. If all of
the information about the accident is known, this information must be included
and the accident report filed as a final report.
2. TEPPCO shall maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to R.M.
Seeley, Director, Southwest Region, Pipeline and Hazardous Materials Safety
Administration. Costs shall be reported in two categories: 1) total cost associated
with preparation/revision of plans, procedures, studies and analyses, and 2) total
cost associated with replacements, additions and other changes to pipeline
infrastructure.
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