{"operation":"document","citation":"CPF 420105013","title":"MARATHON PIPE LINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2010-08-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.402(c)(6), 195.505(a), 195.505(b), 195.505(h), 195.52(a), 195.54(a), 199.105(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420105013.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420105013.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420105013","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420105013","body":"Notice of Probable Violation involving MARATHON PIPE LINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(6),  195.505(a),  195.505(b),  195.505(h),  195.52(a),  195.54(a),  199.105(b). The case was opened on 2010-08-24 and is reported as closed as of 2015-12-28. Proposed civil penalty: $1,071,400. Assessed civil penalty: $842,650. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420105013_Closure Letter_12282015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Closure%20Letter_12282015.pdf\n\n420105013_Closure Letter_12282015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Closure%20Letter_12282015_text.pdf\n\n420105013_Consent Agreement and Order_05112012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Consent%20Agreement%20and%20Order_05112012.pdf\n\n420105013_Consent Agreement and Order_05112012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Consent%20Agreement%20and%20Order_05112012_text.pdf\n\n420105013_NOPV PCP PCO_08242010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_NOPV%20PCP%20PCO_08242010.pdf\n\n420105013_NOPV PCP PCO_08242010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_NOPV%20PCP%20PCO_08242010_text.pdf\n\n420105013_Consent Agreement and Order_05112012_text.pdf\n\nMAY 11 2012\nMr. Craig O. Pierson\nPresident\nMarathon Pipe Line LLC\n539 South Main Street\nFindlay, Ohio 45840\nRe: In the Matter of Marathon Pipe Line LLC – CPF No. 4-2010-5013\nDear Mr. Pierson:\nPlease find enclosed two originals of the proposed Consent Agreement and Order in the above-\nreferenced enforcement action. It has been approved by the Associate Administrator, Jeffrey D.\nWiese, to transmit to you for execution.\nIt is my understanding that upon your execution, you will return both originals to me by\novernight mail for the Associate Administrator’s signature. Once they have been executed by\nhim, I will return an email copy to you and your attorney, Vince Murchison, and mail one\noriginal to you for your records.\nThank you again for your cooperation in this matter.\nSincerely,\nJames M. Pates, Esq.\nAssistant Chief Counsel for Pipeline Safety\nOffice of Chief Counsel, PHMSA\nEnclosure\ncc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nMr. Roderick Seeley, Director, Southern Region, OPS\nMr. Vince Murchison, Esq., SNR Denton US LLP, Counsel for Respondent\nOVERNIGHT MAIL VIA UPS\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\n_________________________________________\nIn the Matter of )\nMarathon Pipe Line LLC, ) CPF No. 4-2010-5013\n)\n)\n)\nRespondent. )\n_________________________________________ )\nCONSENT AGREEMENT AND ORDER\nWHEREAS, from March to October 2009, pursuant to Chapter 601 of 49 United States Code,\nrepresentatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice of Pipeline Safety (OPS), conducted an on-site investigation of the pipeline facilities of\nMarathon Pipe Line LLC (Marathon or Respondent), at its St. James Terminal near Garyville,\nLouisiana (St. James Terminal), in response to a March 10, 2009 accident at that facility.\nDuring the execution of a drain line tie-in project, a Marathon contractor ignited hazardous\nvapors in a crude oil sump at the St. James Terminal. The ensuing explosion resulted in one\nfatality and three injuries; and\nWHEREAS, Respondent operates one of the largest petroleum pipeline networks in the United\nStates, based on total volume delivered;1 and\nWHEREAS, pursuant to the OPS inspection and subsequent accident investigation, the\nDirector, Southwest Region, OPS (Director), issued to Respondent, by letter dated August 24,\n2010, a Notice of Probable Violation and Proposed Civil Penalty, and Proposed Compliance\nOrder (Notice), a copy of which is attached hereto as Appendix One. In accordance with\n49 C.F.R. § 190.207, the Notice proposed: (1) finding that Respondent had committed various\nviolations of 49 C.F.R. Parts 195 and 199; (2) assessing a total civil penalty of $1,071,400 for\nthe alleged violations; and (3) ordering Respondent to take certain measures to correct the\nalleged violations; and\nWHEREAS, Marathon responded to the Notice by letter dated January 25, 2011, and proposed\na settlement; and\nWHEREAS, PHMSA and Marathon entered into settlement negotiations and have reached\nagreement on the terms and conditions set forth herein; and\n1 http://www.marathonpetroleum.com/Operations/Pipeline_Transportation/ (last accessed 1/19/12).\n\n\n\nWHEREAS, the agreement includes a Supplemental Safety and Environmental Project, as\ndescribed in Appendix Two and attached hereto, that has been voluntarily agreed to by Marathon\nand includes safety measures not required by 49 U.S.C. § 60101, et seq., or 49 C.F.R. Part 195;\nand\nWHEREAS, the Parties agree that this Consent Agreement and Order (Agreement) will resolve\nthe Notice, pursuant to 49 C.F.R. Part 190, without further administrative proceedings or\nlitigation, that said Agreement is fair and reasonable, and that it will promote the public interest\nby improving the safety performance of Marathon’s pipeline system and by advancing the safety\ngoals of PHMSA;\nNOW, THEREFORE, upon consent and agreement of the Parties, it is hereby Ordered and\nAdjudged, as follows:\nI. General Provisions.\n1. Respondent acknowledges, as operator of the St. James Terminal, that Marathon and\nits pipeline system are subject to the jurisdiction of the Pipeline Safety Laws, 49 U.S.C. § 60101,\net seq., and the regulations and administrative orders issued thereunder. For purposes of this\nAgreement, Respondent further acknowledges that it received proper notice of PHMSA’s actions\nin this proceeding and that the Notice states claims upon which relief may be granted pursuant to\n49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder.\n2. Without admitting or denying the allegations of the Notice, Respondent consents to\nthe issuance of this Agreement, and hereby waives any further procedural requirements with\nrespect to its issuance. Respondent waives all rights to contest the adequacy of the notice\nprovided and the validity of this Agreement, including all rights to any administrative or judicial\nhearings or appeals; provided, however, that any dispute concerning the implementation of this\nAgreement shall be resolved in the manner hereinafter provided.\n3. This Agreement shall apply to and be binding upon PHMSA and upon Respondent,\nits officers, directors, employees, successors-in-interest, assigns, or any other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Marathon’s officers, employees, agents, and\nsuccessors-in-interest whose duties might reasonably include compliance with the terms of this\nAgreement.\n4. Respondent agrees that each allegation of violation cited in the Notice will be\nconsidered by PHMSA as a prior offense in any future enforcement action brought against\nRespondent. This Agreement, however, does not constitute a finding of violation of any Federal\nlaw or regulation and may not be used in any civil proceeding of any kind as evidence or proof\nof any fact, fault or liability, or as evidence of the violation of any law, rule, regulation or\nrequirement, except in a proceeding to enforce the provisions of this Agreement.\n5. In exchange, Marathon agrees to complete the corrective actions specified in Section\nII (Regulatory Compliance), Section IV (Supplemental Safety and Environmental Project), and\n2\n\n\n\nSection V (Same; Documentation and Verification of Work and Expenses) of this Agreement\nand to pay the civil penalties specified in Section III (Civil Penalties).\nII. Regulatory Compliance.\n6. Within 90 days following the Effective Date (as defined below), Respondent agrees\nto perform the corrective actions set forth in the Proposed Compliance Order included with the\nNotice, as follows:\na. Regarding Item 1 of the Proposed Compliance Order, Respondent will submit all\naccident reports on DOT Form 7000-1 to PHMSA, for the accident that occurred at\nSt. James Station on January 8, 2006, and the incident in the Martinsville, Illinois,\narea that occurred on November 13, 2007;\nb. Regarding Item 2 of the Proposed Compliance Order, Respondent will identify\nany deficiencies observed during its review of personnel performance in preparing\nand following Marathon’s Standard MPLOPR007 procedure, “Commissioning,\nDecommissioning, and/or Recommissioning Pipeline Systems (CDR),” during the\ndrain line tie-in project described above, integrate the findings of such review into its\ntraining program, and provide this training to its employees. Compliance with this\nItem is in addition to any work performed in connection with the Project described\nbelow;\nc. Regarding Item 4 of the Proposed Compliance Order, Respondent will\nincorporate the installation and operation of bentonite mud plugs as a vapor barrier to\nisolate hazardous vapors as a covered task(s) in its operator qualification (OQ)\nprogram. In addition, Marathon will also introduce appropriate OQ methodologies\nand training to ensure that individuals performing this covered task(s) have the\nnecessary knowledge and skills to perform the task(s) in a manner that ensures the\nsafe operation of Marathon’s pipeline facilities;\nd. Regarding Item 5 of the Proposed Compliance Order, Respondent will submit\nthe results of the corrective actions set forth in this Section to the Director, Office of\nPipeline Safety, Pipeline and Hazardous Materials Safety Administration, 8701 South\nGessner, Suite 1110, Houston, Texas 77074, no later than 90 days from completion;\nand\ne. Regarding Item 6 of the Proposed Compliance Order, Respondent will maintain\ndocumentation of the safety improvement costs associated with performing the\ncorrective actions set forth in this Paragraph and submit the total to the Director.\nCosts shall be reported in three categories: (a) any testing, evaluations and\ninformation analysis; (b) revisions of procedures and additional system monitoring\nand inspections; and (c) physical changes to pipeline infrastructure, including repairs,\nreplacements, and other modifications.\n3\n\n\n\n7. The Director may grant an extension of time for Respondent to complete any of the\nwork required by this Section II if Marathon submits a timely written request demonstrating\ngood cause for an extension.\nIII. Civil Penalties.\n8. Respondent agrees to pay to the United States a total civil penalty in the amount of\nEight Hundred Forty-two Thousand, Six Hundred Fifty Dollars ($842,650.00), said amount\nbeing assessed by PHMSA for the following alleged violations set forth in the Notice:\na. $41,700, as proposed for Item 1 in the Notice, for alleged violation of\n49 C.F.R. § 195.52(a);\nb. $41,700, as proposed for Item 2 in the Notice, for alleged violation of\n49 C.F.R. § 195.54(a);\nc. $100,000, as proposed for Item 3 in the Notice, for alleged violations of\n49 C.F.R. § 195.402(a);\nd. $559,250 for Item 6 in the Notice, for alleged violation of\n49 C.F.R. §§ 195.501(a)-(b) and 195.505(a); and\ne. $100,000, as proposed for Item 9 in the Notice, for alleged violation of\n49 C.F.R. § 199.105(b).\n9. Payment of the $842,650.00 must be made within 20 days of the Effective Date, as\ndefined below. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made\nby wire transfer through the Federal Reserve Communications System (Fedwire), to the account\nof the “U.S. Treasury.” Questions concerning wire transfers should be directed to: Financial\nOperations Division (AMZ-341), Federal Aviation Administration, Mike Monroney\nAeronautical Center, P. O. Box 269039, Oklahoma City, Oklahoma 73125. The telephone\nnumber of the Division is (405) 954-8893.\n10. Failure to pay the penalty set forth above within 20 days of the Effective Date, as\ndefined below, will result in the accrual of interest at the current annual rate in accordance with\n31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same authorities,\na late penalty charge of six percent (6%) per annum will be charged if payment is not made\nwithin 110 days of service of a Notice of Late Payment. Furthermore, failure to pay the civil\npenalty may result in referral of the matter to the Attorney General for appropriate action in a\nUnited States District Court.\n11. Respondent agrees that no portion of the total amount of the payment specified in\nthis Section III will be deductible by Respondent or any of its affiliates for tax purposes.\nIV. Supplemental Safety and Environmental Project.\n12. Respondent agrees to undertake and complete the Supplemental Safety and\nEnvironmental Project more fully described below and in Appendix Two (SSEP or Project) in\n4\n\n\n\nmitigation of the proposed penalty for Item 6 of the Notice. The Project will commence not\nlater than 30 days following the Effective Date (Start Date). The Parties agree that the Project is\nintended to improve the safety performance of the U.S. pipeline industry generally and to reduce\nthe likelihood of future pipeline safety violations by Respondent. Specifically, the primary\nobjective of the Project is to reduce the probability of releases and the risk of fire during\noperations and maintenance activities involving the isolation of energy in the form of hazardous\nvapors and liquids.\n13. The Project will consist of the development and dissemination of an “Energy\nIsolation Guidance Document and Training Program.” Respondent will complete the Project in\naccordance with the Project Scope of Work and Schedule, attached as Appendix Two hereto,\nwithin 42 months of the Effective Date and as outlined in three contractor proposals submitted\nby Marathon to PHMSA, as follows:\na. Proposal, Energy Isolation, Baker Engineering and Risk Consultants, Inc., dated\nJune 22, 2011;\nb. Video Project Estimate, SOS Video Communications, dated June 16, 2011; and\nc. Proposal, Technical Toolboxes, Inc., dated June 22, 2011.\nThese three proposals are hereby incorporated by reference into this Agreement. In the event of\na conflict between this Agreement and any of the three proposal documents listed above, this\nAgreement shall control.\n14. Respondent’s total expenditure for the Project will be at least $305,000 and must be\nexpended in accordance with the provisions of this Section IV and Appendix Two. Marathon\nwill receive no credit toward its obligation to spend at least $305,000 by charging for the labor of\nits own employees, equipment, overhead, or other internal costs. If the cost of completing the\nwork described in this Section IV and Appendix Two exceeds $305,000, Respondent agrees to\nbear such costs as may be necessary to complete all of the work described in this Section IV.\n15. The Director will have the authority, on the basis of reasonable justification and after\nconsultation with Respondent, to require or agree to any reasonable modification to the Scope of\nWork and Schedule of the Project that the Director deems necessary to accomplish the purposes\nand intent of this Agreement. Any such modification must be in writing and signed by the\nParties.\nV. Same; Documentation and Verification of Work and Expenses.\n16. Commencing 90 days after the Start Date and continuing every 90 days thereafter\nuntil submittal of the Project Completion Report, as described below, Marathon will submit\nquarterly progress reports to the Director describing all work performed pursuant to this\nAgreement during the preceding quarter and the safety impacts and implications of the Project to\ndate. All reports, including the Project Completion Report described in Paragraph 17 below,\nshall be submitted to the Director, Office of Pipeline Safety, Pipeline and Hazardous Materials\nSafety Administration, 8701 South Gessner, Suite 1110, Houston, Texas 77074. As the person\nresponsible for monitoring Respondent’s compliance with the terms of this Agreement, the5\n\n\n\nDirector may request any additional documentation, studies, or reports reasonably necessary to\nverify compliance with the terms hereof.\n17. Not later than 90 days after completion of all the work specified in Appendix Two,\nMarathon must file a Project Completion Report with the Director. This report must contain, at\nminimum, the following information:\na. A detailed description of the Project, as implemented;\nb. A description and analysis of the benefits of the Project, any potential or existing\nproblems, and any changes executed during the Project pursuant to Paragraph 15\n(including a quantification of the energy isolation benefits realized, if feasible);\nc. The total itemized costs of the Project; and\nd. Certification that the Project has been implemented pursuant to the provisions of this\nAgreement.\n18. In submitting all reports under this Section V, Marathon will provide acceptable\ndocumentation of all eligible costs. If the Project Completion Report includes costs not eligible\nfor credit under this Agreement, such costs shall be clearly identified as non-eligible expenses.\nFor purposes of this Paragraph, the term “acceptable documentation” includes invoices, purchase\norders, or other documentation that specifically identifies, itemizes, and establishes the\nindividual costs of the goods and services for which payment was made. Canceled drafts are not\nacceptable documentation, unless such drafts specifically identify and itemize the individual\ncosts of the goods and services.\n19. Upon reasonable notice, PHMSA will have the right to inspect the records and\nfacilities of Respondent to confirm that the Project is being carried out in conformity with the\nterms of this Agreement. Marathon further agrees, upon reasonable request from the Director, to\nprovide PHMSA with all such records in the possession of the company’s contractors that are\nreasonably related to execution of the Project.\n20. Marathon will maintain legible copies of all relevant documentation of the\nunderlying research and data for any and all documents or reports submitted to PHMSA pursuant\nto this Agreement and will provide the documentation of any such underlying research and data\nto PHMSA within 30 days of any written request from PHMSA. Such documentation must be\nretained for a period of at least five years from the date of submission of the Project Completion\nReport required under Paragraph 17 above. All reports required under this Agreement must\ninclude a certification signed by Marathon’s president or chief executive officer, verifying, under\npenalty of law, that the information and representations contained in such report are true,\naccurate, and complete. Such certification shall include the following statement:\nI certify under penalty of law that I have examined and am familiar with the\ninformation submitted in this document and in all attachments and, based on\nmy inquiry of those individuals immediately responsible for obtaining the\ninformation, I believe that the information is true, accurate, and complete. I\n6\n\n\n\nam aware that there are significant penalties for submitting false information,\nincluding the possibility of fines and imprisonment.\nVI. Same; PHMSA Approval of Project Completion Report.\n21. Within 45 days of receipt of the Project Completion Report described in Paragraph\n17 above, the Director will review such report and provide Respondent with written notice of his\ndetermination, stating either: (1) that the Project has been satisfactorily completed; (2) that there\nare certain deficiencies in the Project Completion Report and that Respondent will be afforded\nadditional time to correct them; or (3) that the Project has not been satisfactorily completed and\nwhether PHMSA seeks stipulated penalties in accordance with Section VII below. If the\nDirector’s written determination is delayed beyond 45 days, Respondent may avail itself of the\nprovisions of Paragraph 25 below.\nIn the event the Director exercises option (2) above (i.e., it determines that the Project\nCompletion Report is deficient but the Director has not yet made a determination about the\nadequacy of the SSEP completion itself), Respondent may file a written objection to the\ndeficiency determination within 10 days from receipt of the notice. Thereafter, the Director and\nRespondent will have an additional 30 days to reach agreement on changes necessary to the\nProject Completion Report. If agreement cannot be reached on any such issue within this 30-day\nperiod, the Director will provide a written statement of his decision on adequacy of the\ncompletion of the SSEP to Respondent. The matter shall then be referred to and adjudicated by\nthe Associate Administrator, in accordance with Paragraph 25 below. In the event the SSEP is\nnot completed as contemplated herein, as determined by the Associate Administrator, stipulated\npenalties shall be due and payable by Respondent to PHMSA in accordance with Paragraph 22\nbelow.\nVII. Stipulated Penalties.\n22. If Marathon fails to comply with any of the terms of this Agreement relating to the\ncompletion of the Project or reporting thereon as provided by Paragraphs 16 and 17, Marathon\nwill be liable for stipulated penalties according to the following provisions:\na. For failure to complete the Project pursuant to this Agreement, Marathon will pay a\nstipulated penalty to the United States in the amount of one hundred fifty percent\n(150%) of the difference between the total amount of the Project (i.e., $305,000.00)\nand the amount of money actually spent by Marathon on the Project and verified by\nPHMSA; such stipulated penalty shall be in addition to the total civil penalty\npayments (i.e., $842,650.00) due and payable under Paragraph 8 above. For\npurposes of this Paragraph, the determination of whether the Project, or any portion\nthereof, has been satisfactorily completed shall be the decision of the Director, or as\notherwise provided under Paragraph 25;\nb. For failure to submit any quarterly progress report or the Project Completion Report\ndescribed in Paragraphs 16 and 17 above, Marathon agrees to pay a stipulated\npenalty in the amount of $300.00 for each day after such report was originally due\nuntil it is submitted;\n7\n\n\n\nc. Stipulated penalties under this Paragraph will begin to accrue on the day after\nperformance is due, and shall continue to accrue through the final day of completion\nof the activity;\nd. Respondent will pay any stipulated penalties not more than 30 days after receipt of\nwritten demand by PHMSA for such penalties. Method of payment shall be the\nsame as those set forth above in Paragraph 9; and\ne. Nothing in this Agreement shall be construed as prohibiting, altering or otherwise\nlimiting the ability of PHMSA to seek any other remedies or sanctions available to\nthe agency by virtue of Marathon’s violation of this Agreement or of any statutes\nand regulations upon which it is based, or any other applicable provision of law.\nVIII. Representations by Marathon.\n23. Marathon makes the following representations concerning this Agreement:\na. Marathon certifies that it is not required to perform or develop the Project, or any\nportion thereof, by any federal, state or local law or regulation, nor is Marathon\nrequired to perform or develop the Project by any other agreement, contract, grant,\nor as injunctive relief in this or any other proceeding. Marathon further certifies that\nit has not received, and is not presently negotiating to receive, credit in any other\nenforcement action for the Project outlined above.\nb. Marathon hereby agrees not to claim any funds expended in performance of the\nProject as a deductible business expense or credit for tax purposes.\nc. Any public statement, oral or written, in print, film, Internet or other media, made by\nRespondent making reference to the Project shall include the following language:\n“This project was undertaken in connection with the settlement of an enforcement\naction taken by the Pipeline and Hazardous Materials Safety Administration, U.S.\nDepartment of Transportation, for alleged violations of the federal Pipeline Safety\nLaws (49 U.S.C. § 60101, et seq.).”\nIX. Miscellaneous.\n24. This Agreement constitutes the entire agreement of the Parties and supersedes all\nprior and contemporaneous agreements, understandings, negotiations and discussions between\nthe Parties, whether oral or written, with respect to the subject matter herein. The terms of this\nAgreement will control in the event of any inconsistency with the record in this proceeding.\n25. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement. If Respondent and the Director are unable to informally resolve any\ndispute hereunder within 15 days of either party providing notice to the other of a dispute, either\nparty may request in writing, not later than 10 days following the expiration of said 15-day\nperiod, a written determination from the Associate Administrator for Pipeline Safety (Associate\nAdministrator) resolving the dispute. In connection with any such request for a written\n8\n\n\n\ndetermination by the Associate Administrator, Respondent shall provide all information that the\ncompany believes is relevant to the dispute.\nIf the request is submitted as provided herein, the Associate Administrator will issue a final\ndetermination in writing not more than 30 days following the date of Respondent’s request,\nwhich decision shall be final and binding on Respondent. The existence of a dispute and\nPHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term or\ntimeframe for completion of any work to be performed under this Agreement during the\npendency of the dispute resolution process, except as agreed in writing by the Director or the\nAssociate Administrator.\n26. In the event of any transfer of ownership or operating responsibility of the St. James\nTerminal facility during the term of this Agreement, Marathon will provide a copy of this\nAgreement to the prospective transferee at least 30 days prior to such transfer and simultaneously\nprovide written notice of the prospective transfer to the Director.\n27. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the federal Pipeline Safety Laws, 49 U.S.C. § 60101,\net seq., and the regulations and administrative orders issued thereunder. Nothing in this\nAgreement alters PHMSA’s right of access, entry, inspection, and information gathering or\nPHMSA’s authority to bring enforcement actions against Respondent pursuant to the federal\nPipeline Safety Laws, the regulations and administrative orders issued thereunder, or any other\nprovision of Federal or State law.\n28. This Agreement does not create rights in, or grant any cause of action to, any person\nnot a party to this Agreement. PHMSA is not liable for any injuries or damages to persons or\nproperty arising from acts or omissions of Respondent or its officers, employees, or agents\ncarrying out the work required by this Agreement. Marathon agrees to indemnify and hold\nharmless PHMSA, its officers, employees, agents, and representatives from any and all causes of\naction arising from any acts or omissions of Respondent or its contractors in carrying out the\nwork required by this Agreement.\n29. Except as otherwise provided herein, this Agreement may be modified only by the\nmutual agreement of the Parties and set forth in writing and signed by both Parties.\n30. Each undersigned representative of the Parties certifies that he is fully authorized by\nthe party represented to enter into the terms and conditions hereof and to execute and legally\nbind that party to it.\nX. Effective Date and Term.\n31. The “Effective Date” as used herein, is the date on which this Agreement has been\nsigned by both Respondent and PHMSA. The term of this Agreement commences upon the\nEffective Date and terminates upon the approval of the Project Completion Report as provided\nby Section VI above or as otherwise provided under Paragraph 25.\n9\n\n\n\nThe Parties hereby agree to all conditions and terms of this Agreement:\nFor PHMSA: For Respondent:\n___________________________ ____________________________\nJeffrey D. Wiese Craig O. Pierson\nAssociate Administrator for President\nPipeline Safety Marathon Pipe Line LLC\n_____________________ ___________________________\nDate Date\n10\n\n\n\nAPPENDIX ONE\n[INSERT COPY OF NOTICE]\nAPPENDIX ONE - Page 1\n\n\n\nAPPENDIX ONE - Page 2\n\n\n\nAPPENDIX TWO\nPROJECT SCOPE OF WORK AND SCHEDULE\nDEVELOPMENT OF ENERGY ISOLATION GUIDANCE DOCUMENT AND TRAINING PROGRAM\nIntroduction\nRespondent will undertake and complete a Supplemental Safety and Environmental Project\n(Project) intended to reduce the probability of releases and the risk of fire during operations and\nmaintenance activities involving the isolation of energy in the form of hazardous vapors and\nliquids. The Project seeks to accomplish this goal by reducing the likelihood that Marathon will\nexperience future accidents similar to the one giving rise to this Agreement, by developing a set\nof practices for energy isolation that can benefit the industry generally, and by encouraging\nindustry awareness of improved practices to protect life, property and the environment.\nThe Project will consist of four parts:\n(A) Energy Isolation Assessment and Improvement Study\n(1) Assess energy isolation practices and procedures applied by U.S.\nhazardous liquid (petroleum) pipeline operators and by Respondent and\ndevelop energy isolation techniques that can enable industry improvement.\n(2) Test mud plug installations to identify limitations and reliable installation\npractices.\n(B) Develop a comprehensive Energy Isolation Guidance Document.\n(C) Develop two Training Programs, one that will be provided to all affected\nRespondent employees and one that will be made available to the pipeline\nindustry and the pipeline contractor industry.\n(D) Share the Energy Isolation Guidance Document and the Training Program within\nthe pipeline industry and the pipeline contractor industry.\nThese four parts are more particularly described as follows:\nA. Energy Isolation Assessment and Improvement Study\nThe assessment of industry practices and procedures will be based upon a detailed review of\npolicies and procedures solicited from a sampling of pipeline companies operating hazardous\nliquids (petroleum) pipelines, as well as from observation of Respondent field practices.\nRespondent or its contractor will solicit policies and procedures from at least 15 companies and\nexercise reasonable efforts to secure useful responses from at least 10. For purposes of such\nsolicitations, the identities of the responding pipeline companies shall remain anonymous, and\nRespondent’s contractor shall remove identifying information from documentation they submit.\nAPPENDIX TWO - Page 1\n\n\n\nThe findings of the assessment will be compiled into a report. Mud plug effectiveness testing\nwill involve a range of variables such as pipe size, temperature and humidity, along with\ndetermining optimum mud mix ratios.\nB. Development of Guidance Document\nBased upon the findings of the foregoing assessment and testing, a comprehensive Energy\nIsolation Guidance Document will be developed that will present the findings of the assessment\nand testing and will present recommended guidance for appropriate application of energy\nisolation practices in various situations. The recommended guidance will be consistent with\nexisting PHMSA requirements and relevant guidance documents. Marathon will submit the draft\nGuidance Document to the Director for review and approval before proceeding with Parts C and\nD of the Project. The Director will provide Respondent with a response within 30 days of\nsubmission of the draft Guidance Document.\nRespondent shall contract with Baker Engineering and Risk Consultants, Inc. to execute the\nwork described within BakerRisk Proposal No. P5009, Energy Isolation, dated June 22, 2011, for\nParts A and B of the Project.\nProject Cost Estimate: $185,000 – $225,000\nProject Schedule – Weeks from Start Date:\nTask Weeks to Completion\n• Conduct Detailed Review of Industry Standards, 12 weeks.\nPractices and Procedures\n• Assess Respondent Energy Isolation Standards and Procedures 12 weeks.\n• Testing of Mud Plugs 14 weeks.\n• Develop Paper on Single and Double Block and Bleed 12 weeks.\nValve Isolation\n• Develop Draft Comprehensive Energy Isolation Guidance Document 25 weeks.\n• Director Review and Approval of Guidance Document 29 weeks.\nC. Development of Training Programs\n(1) Respondent will contract with SOS Video Communications to develop video\npresentations based upon the Energy Isolation Guidance Document as described within SOS\nVideo Communications Proposal and Estimate, Project No. 43366, dated June 16, 2011.\nAPPENDIX TWO - Page 2\n\n\n\n(2) A professionally produced Training Program will be developed by Respondent’s training\nprofessionals, based upon the Energy Isolation Guidance Document and the resulting video\npresentations. The Training Program will be the basis for the training of affected Respondent\nemployees. Respondent’s training personnel will use visual aids and written materials for the\nclassroom, along with hands-on training.\nProject Cost Estimate: $82,533 (SOS Video Communications)\nProject Schedule – Weeks from Start Date:\nTask Weeks to Completion\n• Develop Video Presentations 49 weeks.\n• Train Respondent Employees 75 weeks.\nD. Sharing/Dissemination of the Energy Isolation Guidance Document and Training\nProgram\nAvailability of both the Energy Isolation Guidance Document and the Training Program video\npresentations will be publicized within the pipeline industry and the pipeline contractor industry\nthrough a plan of dissemination (Communications Plan) to be executed by Technical Toolboxes,\nInc. (Technical Toolboxes), a pipeline consulting and training firm, which plan will include\npackaging and promotion over a 2-year period.\nRespondent will contract with Technical Toolboxes to execute the Communications Plan and\ndisseminate the Energy Isolation Guidance Document and Training Program as described within\nthe Technical Toolboxes Proposal dated June 22, 2011.\nProject Cost Estimate: $16,000\nProject Schedule – Weeks from Start Date:\nTask Weeks to Completion\n• Communications Plan: 59 weeks.\nAvailability of the Energy Isolation Guidance Document and the Training Program will be\nsubject to appropriate disclaimers and limitations on liability.\nAlternate Service Providers\nIn the event that a service provider becomes unable or unwilling to provide the service that is the\nsubject of a proposal to conduct a portion of the Project, Respondent promptly will retain a\nqualified alternate provider of the same or similar services in consultation with the Director.\nRespondent will provide the name and qualifications of such alternate provider in advance for\nthe review and approval of the Director.\nAPPENDIX TWO - Page 3\n\n420105013_NOPV PCP PCO_08242010_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nAND\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 24, 2010\nMr. John Swearingen, President\nMarathon Pipe Line LLC\n539 South Main Street\nFindley, Ohio 45840\nCPF 4-2010-5013\nDear Mr. Swearingen:\nFrom March to October 2009, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code conducted an investigation\nof a Marathon Pipe Line (Marathon) accident that occurred at the St. James Terminal, Louisiana on\nMarch 10, 2009. The accident involved the explosion of a crude oil sump located in the terminal that\noccurred during Marathon’s execution of a Drain Line Tie-in project. Hazardous vapors were ignited by\na welder beveling the drain lines for welding, using a flame cutter. The accident resulted in one fatality\nand three injuries.\nAs a result of this investigation, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolation(s) are:\n1. §195.52 Telephonic notice of certain accidents.\n(a) At the earliest practicable moment following discovery of a release of the hazardous\nliquid or carbon dioxide transported resulting in an event described in §195.50, the\noperator of the system shall give notice, in accordance with paragraph (b) of this section, of\nany failure that:\n(1) Caused a death or an injury requiring hospitalization;\n(2) Resulted in either a fire or explosion not intentionally set by the operator;\n(3) Caused estimated property damage, including cost of cleanup and recovery, value of\nlost product, and damage to the property of the operator or others, or both, exceeding\n$50,000;\n1\n\n\n\n(4) Resulted in pollution of any stream, river, lake, reservoir, or other similar body of\nwater that violated applicable water quality standards, caused a discoloration of the\nsurface of the water or adjoining shoreline, or deposited a sludge or emulsion beneath\nthe surface of the water or upon adjoining shorelines; or\n(5) In the judgment of the operator was significant even though it did not meet the\ncriteria of any other paragraph of this section.\nDuring the investigation, it was discovered that Marathon failed to make telephonic reports to the\nNational Response Center for two accidents that met telephonic reporting criteria, as follows:\n• On January 8, 2006 an inflatable bladder type plumber’s plug failed on Marathon’s Garyville 30-inch\ncrude oil pipeline located at the LOCAP St. James Station resulting in a release of crude oil and\nvapors. Grinding by a contract welder ignited the crude oil vapors. The welder suffered slight burns\nfrom the resulting fire.\n• On November 13, 2007 a mud plug failed on Marathon’s Lima 22-inch crude oil Pipe Line\n(Rosedale-Roachdale) in the Martinsville, IL area resulting in a release of crude oil and vapors. The\nvapors ignited. No injuries resulted from the accident.\nMarathon did not believe these releases were reportable due to the lack of volume released. Condition 2\ndoes not require a specific volume release to be reportable. The fact that there was a liquid (vapor)\nreleased and a fire resulted from the release of that liquid means a notification is required.\n2. §195.54 Accident reports.\n(a) Each operator that experiences an accident that is required to be reported under\n§195.50 shall as soon as practicable but not later than 30 days after discovery of the\naccident, prepare and file an accident report on DOT Form 7000-1, or a facsimile.\nAs a result of this investigation, it was learned that Marathon failed to prepare and file an accident report\non DOT Form 7000-1 for two accidents that met accident reporting criteria, as follows:\n• On January 8, 2006 an inflatable bladder type plumber’s plug failed on Marathon’s Garyville 30-inch\ncrude oil pipeline located the LOCAP St. James Station resulting in a release of crude oil and vapors.\nGrinding by a contract welder ignited the crude oil vapors, and the welder suffered slight burns.\n• On November 13, 2007 a mud plug failed on Marathon’s Lima 22-inch crude oil Pipe Line\n(Rosedale-Roachdale) in the Martinsville, IL area resulting in a release of crude oil and vapors. The\nvapors ignited. No injuries resulted from the accident.\nMarathon did not believe these releases required a report due to the lack of volume released. The fact that\nthere was liquid (vapor) released and a fire resulted from the release of that liquid requires a written\nreport.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each Pipe Line system a manual of\nwritten procedures for conducting normal operations and maintenance activities a","truncated":true,"body_characters":62613}