# MARATHON PIPE LINE LLC — Notice of Probable Violation

- **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:** Not available
- **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).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420105013.md
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- **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.

Official case documents:

420105013_Closure Letter_12282015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Closure%20Letter_12282015.pdf

420105013_Closure Letter_12282015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Closure%20Letter_12282015_text.pdf

420105013_Consent Agreement and Order_05112012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Consent%20Agreement%20and%20Order_05112012.pdf

420105013_Consent Agreement and Order_05112012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_Consent%20Agreement%20and%20Order_05112012_text.pdf

420105013_NOPV PCP PCO_08242010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_NOPV%20PCP%20PCO_08242010.pdf

420105013_NOPV PCP PCO_08242010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420105013/420105013_NOPV%20PCP%20PCO_08242010_text.pdf

420105013_Consent Agreement and Order_05112012_text.pdf

MAY 11 2012
Mr. Craig O. Pierson
President
Marathon Pipe Line LLC
539 South Main Street
Findlay, Ohio 45840
Re: In the Matter of Marathon Pipe Line LLC – CPF No. 4-2010-5013
Dear Mr. Pierson:
Please find enclosed two originals of the proposed Consent Agreement and Order in the above-
referenced enforcement action. It has been approved by the Associate Administrator, Jeffrey D.
Wiese, to transmit to you for execution.
It is my understanding that upon your execution, you will return both originals to me by
overnight mail for the Associate Administrator’s signature. Once they have been executed by
him, I will return an email copy to you and your attorney, Vince Murchison, and mail one
original to you for your records.
Thank you again for your cooperation in this matter.
Sincerely,
James M. Pates, Esq.
Assistant Chief Counsel for Pipeline Safety
Office of Chief Counsel, PHMSA
Enclosure
cc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS
Mr. Roderick Seeley, Director, Southern Region, OPS
Mr. Vince Murchison, Esq., SNR Denton US LLP, Counsel for Respondent
OVERNIGHT MAIL VIA UPS



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
_________________________________________
In the Matter of )
Marathon Pipe Line LLC, ) CPF No. 4-2010-5013
)
)
)
Respondent. )
_________________________________________ )
CONSENT AGREEMENT AND ORDER
WHEREAS, from March to October 2009, pursuant to Chapter 601 of 49 United States Code,
representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA),
Office of Pipeline Safety (OPS), conducted an on-site investigation of the pipeline facilities of
Marathon Pipe Line LLC (Marathon or Respondent), at its St. James Terminal near Garyville,
Louisiana (St. James Terminal), in response to a March 10, 2009 accident at that facility.
During the execution of a drain line tie-in project, a Marathon contractor ignited hazardous
vapors in a crude oil sump at the St. James Terminal. The ensuing explosion resulted in one
fatality and three injuries; and
WHEREAS, Respondent operates one of the largest petroleum pipeline networks in the United
States, based on total volume delivered;1 and
WHEREAS, pursuant to the OPS inspection and subsequent accident investigation, the
Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated August 24,
2010, a Notice of Probable Violation and Proposed Civil Penalty, and Proposed Compliance
Order (Notice), a copy of which is attached hereto as Appendix One. In accordance with
49 C.F.R. § 190.207, the Notice proposed: (1) finding that Respondent had committed various
violations of 49 C.F.R. Parts 195 and 199; (2) assessing a total civil penalty of $1,071,400 for
the alleged violations; and (3) ordering Respondent to take certain measures to correct the
alleged violations; and
WHEREAS, Marathon responded to the Notice by letter dated January 25, 2011, and proposed
a settlement; and
WHEREAS, PHMSA and Marathon entered into settlement negotiations and have reached
agreement on the terms and conditions set forth herein; and
1 http://www.marathonpetroleum.com/Operations/Pipeline_Transportation/ (last accessed 1/19/12).



WHEREAS, the agreement includes a Supplemental Safety and Environmental Project, as
described in Appendix Two and attached hereto, that has been voluntarily agreed to by Marathon
and includes safety measures not required by 49 U.S.C. § 60101, et seq., or 49 C.F.R. Part 195;
and
WHEREAS, the Parties agree that this Consent Agreement and Order (Agreement) will resolve
the Notice, pursuant to 49 C.F.R. Part 190, without further administrative proceedings or
litigation, that said Agreement is fair and reasonable, and that it will promote the public interest
by improving the safety performance of Marathon’s pipeline system and by advancing the safety
goals of PHMSA;
NOW, THEREFORE, upon consent and agreement of the Parties, it is hereby Ordered and
Adjudged, as follows:
I. General Provisions.
1. Respondent acknowledges, as operator of the St. James Terminal, that Marathon and
its pipeline system are subject to the jurisdiction of the Pipeline Safety Laws, 49 U.S.C. § 60101,
et seq., and the regulations and administrative orders issued thereunder. For purposes of this
Agreement, Respondent further acknowledges that it received proper notice of PHMSA’s actions
in this proceeding and that the Notice states claims upon which relief may be granted pursuant to
49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder.
2. Without admitting or denying the allegations of the Notice, Respondent consents to
the issuance of this Agreement, and hereby waives any further procedural requirements with
respect to its issuance. Respondent waives all rights to contest the adequacy of the notice
provided and the validity of this Agreement, including all rights to any administrative or judicial
hearings or appeals; provided, however, that any dispute concerning the implementation of this
Agreement shall be resolved in the manner hereinafter provided.
3. This Agreement shall apply to and be binding upon PHMSA and upon Respondent,
its officers, directors, employees, successors-in-interest, assigns, or any other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Marathon’s officers, employees, agents, and
successors-in-interest whose duties might reasonably include compliance with the terms of this
Agreement.
4. Respondent agrees that each allegation of violation cited in the Notice will be
considered by PHMSA as a prior offense in any future enforcement action brought against
Respondent. This Agreement, however, does not constitute a finding of violation of any Federal
law or regulation and may not be used in any civil proceeding of any kind as evidence or proof
of any fact, fault or liability, or as evidence of the violation of any law, rule, regulation or
requirement, except in a proceeding to enforce the provisions of this Agreement.
5. In exchange, Marathon agrees to complete the corrective actions specified in Section
II (Regulatory Compliance), Section IV (Supplemental Safety and Environmental Project), and
2



Section V (Same; Documentation and Verification of Work and Expenses) of this Agreement
and to pay the civil penalties specified in Section III (Civil Penalties).
II. Regulatory Compliance.
6. Within 90 days following the Effective Date (as defined below), Respondent agrees
to perform the corrective actions set forth in the Proposed Compliance Order included with the
Notice, as follows:
a. Regarding Item 1 of the Proposed Compliance Order, Respondent will submit all
accident reports on DOT Form 7000-1 to PHMSA, for the accident that occurred at
St. James Station on January 8, 2006, and the incident in the Martinsville, Illinois,
area that occurred on November 13, 2007;
b. Regarding Item 2 of the Proposed Compliance Order, Respondent will identify
any deficiencies observed during its review of personnel performance in preparing
and following Marathon’s Standard MPLOPR007 procedure, “Commissioning,
Decommissioning, and/or Recommissioning Pipeline Systems (CDR),” during the
drain line tie-in project described above, integrate the findings of such review into its
training program, and provide this training to its employees. Compliance with this
Item is in addition to any work performed in connection with the Project described
below;
c. Regarding Item 4 of the Proposed Compliance Order, Respondent will
incorporate the installation and operation of bentonite mud plugs as a vapor barrier to
isolate hazardous vapors as a covered task(s) in its operator qualification (OQ)
program. In addition, Marathon will also introduce appropriate OQ methodologies
and training to ensure that individuals performing this covered task(s) have the
necessary knowledge and skills to perform the task(s) in a manner that ensures the
safe operation of Marathon’s pipeline facilities;
d. Regarding Item 5 of the Proposed Compliance Order, Respondent will submit
the results of the corrective actions set forth in this Section to the Director, Office of
Pipeline Safety, Pipeline and Hazardous Materials Safety Administration, 8701 South
Gessner, Suite 1110, Houston, Texas 77074, no later than 90 days from completion;
and
e. Regarding Item 6 of the Proposed Compliance Order, Respondent will maintain
documentation of the safety improvement costs associated with performing the
corrective actions set forth in this Paragraph and submit the total to the Director.
Costs shall be reported in three categories: (a) any testing, evaluations and
information analysis; (b) revisions of procedures and additional system monitoring
and inspections; and (c) physical changes to pipeline infrastructure, including repairs,
replacements, and other modifications.
3



7. The Director may grant an extension of time for Respondent to complete any of the
work required by this Section II if Marathon submits a timely written request demonstrating
good cause for an extension.
III. Civil Penalties.
8. Respondent agrees to pay to the United States a total civil penalty in the amount of
Eight Hundred Forty-two Thousand, Six Hundred Fifty Dollars ($842,650.00), said amount
being assessed by PHMSA for the following alleged violations set forth in the Notice:
a. $41,700, as proposed for Item 1 in the Notice, for alleged violation of
49 C.F.R. § 195.52(a);
b. $41,700, as proposed for Item 2 in the Notice, for alleged violation of
49 C.F.R. § 195.54(a);
c. $100,000, as proposed for Item 3 in the Notice, for alleged violations of
49 C.F.R. § 195.402(a);
d. $559,250 for Item 6 in the Notice, for alleged violation of
49 C.F.R. §§ 195.501(a)-(b) and 195.505(a); and
e. $100,000, as proposed for Item 9 in the Notice, for alleged violation of
49 C.F.R. § 199.105(b).
9. Payment of the $842,650.00 must be made within 20 days of the Effective Date, as
defined below. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made
by wire transfer through the Federal Reserve Communications System (Fedwire), to the account
of the “U.S. Treasury.” Questions concerning wire transfers should be directed to: Financial
Operations Division (AMZ-341), Federal Aviation Administration, Mike Monroney
Aeronautical Center, P. O. Box 269039, Oklahoma City, Oklahoma 73125. The telephone
number of the Division is (405) 954-8893.
10. Failure to pay the penalty set forth above within 20 days of the Effective Date, as
defined below, will result in the accrual of interest at the current annual rate in accordance with
31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same authorities,
a late penalty charge of six percent (6%) per annum will be charged if payment is not made
within 110 days of service of a Notice of Late Payment. Furthermore, failure to pay the civil
penalty may result in referral of the matter to the Attorney General for appropriate action in a
United States District Court.
11. Respondent agrees that no portion of the total amount of the payment specified in
this Section III will be deductible by Respondent or any of its affiliates for tax purposes.
IV. Supplemental Safety and Environmental Project.
12. Respondent agrees to undertake and complete the Supplemental Safety and
Environmental Project more fully described below and in Appendix Two (SSEP or Project) in
4



mitigation of the proposed penalty for Item 6 of the Notice. The Project will commence not
later than 30 days following the Effective Date (Start Date). The Parties agree that the Project is
intended to improve the safety performance of the U.S. pipeline industry generally and to reduce
the likelihood of future pipeline safety violations by Respondent. Specifically, the primary
objective of the Project is to reduce the probability of releases and the risk of fire during
operations and maintenance activities involving the isolation of energy in the form of hazardous
vapors and liquids.
13. The Project will consist of the development and dissemination of an “Energy
Isolation Guidance Document and Training Program.” Respondent will complete the Project in
accordance with the Project Scope of Work and Schedule, attached as Appendix Two hereto,
within 42 months of the Effective Date and as outlined in three contractor proposals submitted
by Marathon to PHMSA, as follows:
a. Proposal, Energy Isolation, Baker Engineering and Risk Consultants, Inc., dated
June 22, 2011;
b. Video Project Estimate, SOS Video Communications, dated June 16, 2011; and
c. Proposal, Technical Toolboxes, Inc., dated June 22, 2011.
These three proposals are hereby incorporated by reference into this Agreement. In the event of
a conflict between this Agreement and any of the three proposal documents listed above, this
Agreement shall control.
14. Respondent’s total expenditure for the Project will be at least $305,000 and must be
expended in accordance with the provisions of this Section IV and Appendix Two. Marathon
will receive no credit toward its obligation to spend at least $305,000 by charging for the labor of
its own employees, equipment, overhead, or other internal costs. If the cost of completing the
work described in this Section IV and Appendix Two exceeds $305,000, Respondent agrees to
bear such costs as may be necessary to complete all of the work described in this Section IV.
15. The Director will have the authority, on the basis of reasonable justification and after
consultation with Respondent, to require or agree to any reasonable modification to the Scope of
Work and Schedule of the Project that the Director deems necessary to accomplish the purposes
and intent of this Agreement. Any such modification must be in writing and signed by the
Parties.
V. Same; Documentation and Verification of Work and Expenses.
16. Commencing 90 days after the Start Date and continuing every 90 days thereafter
until submittal of the Project Completion Report, as described below, Marathon will submit
quarterly progress reports to the Director describing all work performed pursuant to this
Agreement during the preceding quarter and the safety impacts and implications of the Project to
date. All reports, including the Project Completion Report described in Paragraph 17 below,
shall be submitted to the Director, Office of Pipeline Safety, Pipeline and Hazardous Materials
Safety Administration, 8701 South Gessner, Suite 1110, Houston, Texas 77074. As the person
responsible for monitoring Respondent’s compliance with the terms of this Agreement, the5



Director may request any additional documentation, studies, or reports reasonably necessary to
verify compliance with the terms hereof.
17. Not later than 90 days after completion of all the work specified in Appendix Two,
Marathon must file a Project Completion Report with the Director. This report must contain, at
minimum, the following information:
a. A detailed description of the Project, as implemented;
b. A description and analysis of the benefits of the Project, any potential or existing
problems, and any changes executed during the Project pursuant to Paragraph 15
(including a quantification of the energy isolation benefits realized, if feasible);
c. The total itemized costs of the Project; and
d. Certification that the Project has been implemented pursuant to the provisions of this
Agreement.
18. In submitting all reports under this Section V, Marathon will provide acceptable
documentation of all eligible costs. If the Project Completion Report includes costs not eligible
for credit under this Agreement, such costs shall be clearly identified as non-eligible expenses.
For purposes of this Paragraph, the term “acceptable documentation” includes invoices, purchase
orders, or other documentation that specifically identifies, itemizes, and establishes the
individual costs of the goods and services for which payment was made. Canceled drafts are not
acceptable documentation, unless such drafts specifically identify and itemize the individual
costs of the goods and services.
19. Upon reasonable notice, PHMSA will have the right to inspect the records and
facilities of Respondent to confirm that the Project is being carried out in conformity with the
terms of this Agreement. Marathon further agrees, upon reasonable request from the Director, to
provide PHMSA with all such records in the possession of the company’s contractors that are
reasonably related to execution of the Project.
20. Marathon will maintain legible copies of all relevant documentation of the
underlying research and data for any and all documents or reports submitted to PHMSA pursuant
to this Agreement and will provide the documentation of any such underlying research and data
to PHMSA within 30 days of any written request from PHMSA. Such documentation must be
retained for a period of at least five years from the date of submission of the Project Completion
Report required under Paragraph 17 above. All reports required under this Agreement must
include a certification signed by Marathon’s president or chief executive officer, verifying, under
penalty of law, that the information and representations contained in such report are true,
accurate, and complete. Such certification shall include the following statement:
I certify under penalty of law that I have examined and am familiar with the
information submitted in this document and in all attachments and, based on
my inquiry of those individuals immediately responsible for obtaining the
information, I believe that the information is true, accurate, and complete. I
6



am aware that there are significant penalties for submitting false information,
including the possibility of fines and imprisonment.
VI. Same; PHMSA Approval of Project Completion Report.
21. Within 45 days of receipt of the Project Completion Report described in Paragraph
17 above, the Director will review such report and provide Respondent with written notice of his
determination, stating either: (1) that the Project has been satisfactorily completed; (2) that there
are certain deficiencies in the Project Completion Report and that Respondent will be afforded
additional time to correct them; or (3) that the Project has not been satisfactorily completed and
whether PHMSA seeks stipulated penalties in accordance with Section VII below. If the
Director’s written determination is delayed beyond 45 days, Respondent may avail itself of the
provisions of Paragraph 25 below.
In the event the Director exercises option (2) above (i.e., it determines that the Project
Completion Report is deficient but the Director has not yet made a determination about the
adequacy of the SSEP completion itself), Respondent may file a written objection to the
deficiency determination within 10 days from receipt of the notice. Thereafter, the Director and
Respondent will have an additional 30 days to reach agreement on changes necessary to the
Project Completion Report. If agreement cannot be reached on any such issue within this 30-day
period, the Director will provide a written statement of his decision on adequacy of the
completion of the SSEP to Respondent. The matter shall then be referred to and adjudicated by
the Associate Administrator, in accordance with Paragraph 25 below. In the event the SSEP is
not completed as contemplated herein, as determined by the Associate Administrator, stipulated
penalties shall be due and payable by Respondent to PHMSA in accordance with Paragraph 22
below.
VII. Stipulated Penalties.
22. If Marathon fails to comply with any of the terms of this Agreement relating to the
completion of the Project or reporting thereon as provided by Paragraphs 16 and 17, Marathon
will be liable for stipulated penalties according to the following provisions:
a. For failure to complete the Project pursuant to this Agreement, Marathon will pay a
stipulated penalty to the United States in the amount of one hundred fifty percent
(150%) of the difference between the total amount of the Project (i.e., $305,000.00)
and the amount of money actually spent by Marathon on the Project and verified by
PHMSA; such stipulated penalty shall be in addition to the total civil penalty
payments (i.e., $842,650.00) due and payable under Paragraph 8 above. For
purposes of this Paragraph, the determination of whether the Project, or any portion
thereof, has been satisfactorily completed shall be the decision of the Director, or as
otherwise provided under Paragraph 25;
b. For failure to submit any quarterly progress report or the Project Completion Report
described in Paragraphs 16 and 17 above, Marathon agrees to pay a stipulated
penalty in the amount of $300.00 for each day after such report was originally due
until it is submitted;
7



c. Stipulated penalties under this Paragraph will begin to accrue on the day after
performance is due, and shall continue to accrue through the final day of completion
of the activity;
d. Respondent will pay any stipulated penalties not more than 30 days after receipt of
written demand by PHMSA for such penalties. Method of payment shall be the
same as those set forth above in Paragraph 9; and
e. Nothing in this Agreement shall be construed as prohibiting, altering or otherwise
limiting the ability of PHMSA to seek any other remedies or sanctions available to
the agency by virtue of Marathon’s violation of this Agreement or of any statutes
and regulations upon which it is based, or any other applicable provision of law.
VIII. Representations by Marathon.
23. Marathon makes the following representations concerning this Agreement:
a. Marathon certifies that it is not required to perform or develop the Project, or any
portion thereof, by any federal, state or local law or regulation, nor is Marathon
required to perform or develop the Project by any other agreement, contract, grant,
or as injunctive relief in this or any other proceeding. Marathon further certifies that
it has not received, and is not presently negotiating to receive, credit in any other
enforcement action for the Project outlined above.
b. Marathon hereby agrees not to claim any funds expended in performance of the
Project as a deductible business expense or credit for tax purposes.
c. Any public statement, oral or written, in print, film, Internet or other media, made by
Respondent making reference to the Project shall include the following language:
“This project was undertaken in connection with the settlement of an enforcement
action taken by the Pipeline and Hazardous Materials Safety Administration, U.S.
Department of Transportation, for alleged violations of the federal Pipeline Safety
Laws (49 U.S.C. § 60101, et seq.).”
IX. Miscellaneous.
24. This Agreement constitutes the entire agreement of the Parties and supersedes all
prior and contemporaneous agreements, understandings, negotiations and discussions between
the Parties, whether oral or written, with respect to the subject matter herein. The terms of this
Agreement will control in the event of any inconsistency with the record in this proceeding.
25. The Director and Respondent will informally attempt to resolve any disputes arising
under this Agreement. If Respondent and the Director are unable to informally resolve any
dispute hereunder within 15 days of either party providing notice to the other of a dispute, either
party may request in writing, not later than 10 days following the expiration of said 15-day
period, a written determination from the Associate Administrator for Pipeline Safety (Associate
Administrator) resolving the dispute. In connection with any such request for a written
8



determination by the Associate Administrator, Respondent shall provide all information that the
company believes is relevant to the dispute.
If the request is submitted as provided herein, the Associate Administrator will issue a final
determination in writing not more than 30 days following the date of Respondent’s request,
which decision shall be final and binding on Respondent. The existence of a dispute and
PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term or
timeframe for completion of any work to be performed under this Agreement during the
pendency of the dispute resolution process, except as agreed in writing by the Director or the
Associate Administrator.
26. In the event of any transfer of ownership or operating responsibility of the St. James
Terminal facility during the term of this Agreement, Marathon will provide a copy of this
Agreement to the prospective transferee at least 30 days prior to such transfer and simultaneously
provide written notice of the prospective transfer to the Director.
27. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the federal Pipeline Safety Laws, 49 U.S.C. § 60101,
et seq., and the regulations and administrative orders issued thereunder. Nothing in this
Agreement alters PHMSA’s right of access, entry, inspection, and information gathering or
PHMSA’s authority to bring enforcement actions against Respondent pursuant to the federal
Pipeline Safety Laws, the regulations and administrative orders issued thereunder, or any other
provision of Federal or State law.
28. This Agreement does not create rights in, or grant any cause of action to, any person
not a party to this Agreement. PHMSA is not liable for any injuries or damages to persons or
property arising from acts or omissions of Respondent or its officers, employees, or agents
carrying out the work required by this Agreement. Marathon agrees to indemnify and hold
harmless PHMSA, its officers, employees, agents, and representatives from any and all causes of
action arising from any acts or omissions of Respondent or its contractors in carrying out the
work required by this Agreement.
29. Except as otherwise provided herein, this Agreement may be modified only by the
mutual agreement of the Parties and set forth in writing and signed by both Parties.
30. Each undersigned representative of the Parties certifies that he is fully authorized by
the party represented to enter into the terms and conditions hereof and to execute and legally
bind that party to it.
X. Effective Date and Term.
31. The “Effective Date” as used herein, is the date on which this Agreement has been
signed by both Respondent and PHMSA. The term of this Agreement commences upon the
Effective Date and terminates upon the approval of the Project Completion Report as provided
by Section VI above or as otherwise provided under Paragraph 25.
9



The Parties hereby agree to all conditions and terms of this Agreement:
For PHMSA: For Respondent:
___________________________ ____________________________
Jeffrey D. Wiese Craig O. Pierson
Associate Administrator for President
Pipeline Safety Marathon Pipe Line LLC
_____________________ ___________________________
Date Date
10



APPENDIX ONE
[INSERT COPY OF NOTICE]
APPENDIX ONE - Page 1



APPENDIX ONE - Page 2



APPENDIX TWO
PROJECT SCOPE OF WORK AND SCHEDULE
DEVELOPMENT OF ENERGY ISOLATION GUIDANCE DOCUMENT AND TRAINING PROGRAM
Introduction
Respondent will undertake and complete a Supplemental Safety and Environmental Project
(Project) intended to reduce the probability of releases and the risk of fire during operations and
maintenance activities involving the isolation of energy in the form of hazardous vapors and
liquids. The Project seeks to accomplish this goal by reducing the likelihood that Marathon will
experience future accidents similar to the one giving rise to this Agreement, by developing a set
of practices for energy isolation that can benefit the industry generally, and by encouraging
industry awareness of improved practices to protect life, property and the environment.
The Project will consist of four parts:
(A) Energy Isolation Assessment and Improvement Study
(1) Assess energy isolation practices and procedures applied by U.S.
hazardous liquid (petroleum) pipeline operators and by Respondent and
develop energy isolation techniques that can enable industry improvement.
(2) Test mud plug installations to identify limitations and reliable installation
practices.
(B) Develop a comprehensive Energy Isolation Guidance Document.
(C) Develop two Training Programs, one that will be provided to all affected
Respondent employees and one that will be made available to the pipeline
industry and the pipeline contractor industry.
(D) Share the Energy Isolation Guidance Document and the Training Program within
the pipeline industry and the pipeline contractor industry.
These four parts are more particularly described as follows:
A. Energy Isolation Assessment and Improvement Study
The assessment of industry practices and procedures will be based upon a detailed review of
policies and procedures solicited from a sampling of pipeline companies operating hazardous
liquids (petroleum) pipelines, as well as from observation of Respondent field practices.
Respondent or its contractor will solicit policies and procedures from at least 15 companies and
exercise reasonable efforts to secure useful responses from at least 10. For purposes of such
solicitations, the identities of the responding pipeline companies shall remain anonymous, and
Respondent’s contractor shall remove identifying information from documentation they submit.
APPENDIX TWO - Page 1



The findings of the assessment will be compiled into a report. Mud plug effectiveness testing
will involve a range of variables such as pipe size, temperature and humidity, along with
determining optimum mud mix ratios.
B. Development of Guidance Document
Based upon the findings of the foregoing assessment and testing, a comprehensive Energy
Isolation Guidance Document will be developed that will present the findings of the assessment
and testing and will present recommended guidance for appropriate application of energy
isolation practices in various situations. The recommended guidance will be consistent with
existing PHMSA requirements and relevant guidance documents. Marathon will submit the draft
Guidance Document to the Director for review and approval before proceeding with Parts C and
D of the Project. The Director will provide Respondent with a response within 30 days of
submission of the draft Guidance Document.
Respondent shall contract with Baker Engineering and Risk Consultants, Inc. to execute the
work described within BakerRisk Proposal No. P5009, Energy Isolation, dated June 22, 2011, for
Parts A and B of the Project.
Project Cost Estimate: $185,000 – $225,000
Project Schedule – Weeks from Start Date:
Task Weeks to Completion
• Conduct Detailed Review of Industry Standards, 12 weeks.
Practices and Procedures
• Assess Respondent Energy Isolation Standards and Procedures 12 weeks.
• Testing of Mud Plugs 14 weeks.
• Develop Paper on Single and Double Block and Bleed 12 weeks.
Valve Isolation
• Develop Draft Comprehensive Energy Isolation Guidance Document 25 weeks.
• Director Review and Approval of Guidance Document 29 weeks.
C. Development of Training Programs
(1) Respondent will contract with SOS Video Communications to develop video
presentations based upon the Energy Isolation Guidance Document as described within SOS
Video Communications Proposal and Estimate, Project No. 43366, dated June 16, 2011.
APPENDIX TWO - Page 2



(2) A professionally produced Training Program will be developed by Respondent’s training
professionals, based upon the Energy Isolation Guidance Document and the resulting video
presentations. The Training Program will be the basis for the training of affected Respondent
employees. Respondent’s training personnel will use visual aids and written materials for the
classroom, along with hands-on training.
Project Cost Estimate: $82,533 (SOS Video Communications)
Project Schedule – Weeks from Start Date:
Task Weeks to Completion
• Develop Video Presentations 49 weeks.
• Train Respondent Employees 75 weeks.
D. Sharing/Dissemination of the Energy Isolation Guidance Document and Training
Program
Availability of both the Energy Isolation Guidance Document and the Training Program video
presentations will be publicized within the pipeline industry and the pipeline contractor industry
through a plan of dissemination (Communications Plan) to be executed by Technical Toolboxes,
Inc. (Technical Toolboxes), a pipeline consulting and training firm, which plan will include
packaging and promotion over a 2-year period.
Respondent will contract with Technical Toolboxes to execute the Communications Plan and
disseminate the Energy Isolation Guidance Document and Training Program as described within
the Technical Toolboxes Proposal dated June 22, 2011.
Project Cost Estimate: $16,000
Project Schedule – Weeks from Start Date:
Task Weeks to Completion
• Communications Plan: 59 weeks.
Availability of the Energy Isolation Guidance Document and the Training Program will be
subject to appropriate disclaimers and limitations on liability.
Alternate Service Providers
In the event that a service provider becomes unable or unwilling to provide the service that is the
subject of a proposal to conduct a portion of the Project, Respondent promptly will retain a
qualified alternate provider of the same or similar services in consultation with the Director.
Respondent will provide the name and qualifications of such alternate provider in advance for
the review and approval of the Director.
APPENDIX TWO - Page 3

420105013_NOPV PCP PCO_08242010_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
AND
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
August 24, 2010
Mr. John Swearingen, President
Marathon Pipe Line LLC
539 South Main Street
Findley, Ohio 45840
CPF 4-2010-5013
Dear Mr. Swearingen:
From March to October 2009, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code conducted an investigation
of a Marathon Pipe Line (Marathon) accident that occurred at the St. James Terminal, Louisiana on
March 10, 2009. The accident involved the explosion of a crude oil sump located in the terminal that
occurred during Marathon’s execution of a Drain Line Tie-in project. Hazardous vapors were ignited by
a welder beveling the drain lines for welding, using a flame cutter. The accident resulted in one fatality
and three injuries.
As a result of this investigation, it appears that you have committed probable violations of the Pipeline
Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable
violation(s) are:
1. §195.52 Telephonic notice of certain accidents.
(a) At the earliest practicable moment following discovery of a release of the hazardous
liquid or carbon dioxide transported resulting in an event described in §195.50, the
operator of the system shall give notice, in accordance with paragraph (b) of this section, of
any failure that:
(1) Caused a death or an injury requiring hospitalization;
(2) Resulted in either a fire or explosion not intentionally set by the operator;
(3) Caused estimated property damage, including cost of cleanup and recovery, value of
lost product, and damage to the property of the operator or others, or both, exceeding
$50,000;
1



(4) Resulted in pollution of any stream, river, lake, reservoir, or other similar body of
water that violated applicable water quality standards, caused a discoloration of the
surface of the water or adjoining shoreline, or deposited a sludge or emulsion beneath
the surface of the water or upon adjoining shorelines; or
(5) In the judgment of the operator was significant even though it did not meet the
criteria of any other paragraph of this section.
During the investigation, it was discovered that Marathon failed to make telephonic reports to the
National Response Center for two accidents that met telephonic reporting criteria, as follows:
• On January 8, 2006 an inflatable bladder type plumber’s plug failed on Marathon’s Garyville 30-inch
crude oil pipeline located at the LOCAP St. James Station resulting in a release of crude oil and
vapors. Grinding by a contract welder ignited the crude oil vapors. The welder suffered slight burns
from the resulting fire.
• On November 13, 2007 a mud plug failed on Marathon’s Lima 22-inch crude oil Pipe Line
(Rosedale-Roachdale) in the Martinsville, IL area resulting in a release of crude oil and vapors. The
vapors ignited. No injuries resulted from the accident.
Marathon did not believe these releases were reportable due to the lack of volume released. Condition 2
does not require a specific volume release to be reportable. The fact that there was a liquid (vapor)
released and a fire resulted from the release of that liquid means a notification is required.
2. §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.
As a result of this investigation, it was learned that Marathon failed to prepare and file an accident report
on DOT Form 7000-1 for two accidents that met accident reporting criteria, as follows:
• On January 8, 2006 an inflatable bladder type plumber’s plug failed on Marathon’s Garyville 30-inch
crude oil pipeline located the LOCAP St. James Station resulting in a release of crude oil and vapors.
Grinding by a contract welder ignited the crude oil vapors, and the welder suffered slight burns.
• On November 13, 2007 a mud plug failed on Marathon’s Lima 22-inch crude oil Pipe Line
(Rosedale-Roachdale) in the Martinsville, IL area resulting in a release of crude oil and vapors. The
vapors ignited. No injuries resulted from the accident.
Marathon did not believe these releases required a report due to the lack of volume released. The fact that
there was liquid (vapor) released and a fire resulted from the release of that liquid requires a written
report.
3. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each Pipe Line system a manual of
written procedures for conducting normal operations and maintenance activities a
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