# OCCIDENTAL CHEMICAL CORP — Safety Order

- **operation:** document
- **citation:** CPF 420115009S
- **title:** OCCIDENTAL CHEMICAL CORP — Safety Order
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2011-06-28
- **effective on:** Not available
- **summary:** CLOSED safety order.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-420115009s.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420115009s.md
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420115009S
**body:**

Safety Order involving OCCIDENTAL CHEMICAL CORP. The dataset does not identify a cited regulation for this case. The case was opened on 2011-06-28 and is reported as closed as of 2012-10-25. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420115009S_ Consent Agreement_11082011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_%20Consent%20Agreement_11082011.pdf

420115009S_ Consent Agreement_11082011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_%20Consent%20Agreement_11082011_text.pdf

420115009S_Closure_10252012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_Closure_10252012.pdf

420115009S_Closure_10252012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_Closure_10252012_text.pdf

420115009S_Consent Order_11082011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_Consent%20Order_11082011.pdf

420115009S_Consent Order_11082011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_Consent%20Order_11082011_text.pdf

420115009S_NOPSO_06282011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_NOPSO_06282011.pdf

420115009S_NOPSO_06282011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115009S/420115009S_NOPSO_06282011_text.pdf

420115009S_Closure_10252012_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
October 25, 2012
Mr. Michael G. Anderson
Vice President
Occidental Chemical Corporation
Occidental Tower
5005 LBJ Freeway
Dallas, Texas 75244-6119
CPF 4-2011-5009S
Dear Mr. Anderson:
During the week of May 16 – 20, 2011, a representative of the Pipeline and Hazardous Materials
Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the
Occidental Chemical Corporation’s (Occidental) Lake Charles/Orange Ethylene Line located in
LA. and TX.
As a result of this inspection a Notice of Proposed Safety Order, CPF No. 4-2011-5009S was
issued on June 28, 2012 and a Consent Agreement was finalized on October 19, 2011.
Occidental implemented all of the requirements of the Consent Agreement. This letter is to
inform you that no further action is necessary and this case is now closed. Thank you for your
cooperation.
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration

420115009S_Consent Order_11082011_text.pdf

NOV 8 2011
Mr. Michael G. Anderson
Vice-President
Occidental Chemical Corporation
Occidental Tower
5005 LBJ Freeway
Dallas, Texas 75244-6119
Re: CPF No. 4-2011-5009S
Dear Mr. Anderson:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement that you
signed on October 6, 2011. Service of the Consent Order and Consent Agreement 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: Mr. Rod Seeley, Director, Southwest Region, PHMSA
Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, Pipeline Safety
CERTIFIED MAIL - RETURN RECEIPT REQUESTED [1791000164202807180]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Occidental Chemical Corporation, ) CPF No. 4-2011-5009S
)
Respondent. )
____________________________________)
CONSENT ORDER
On October 6, 2011, Mr. Michael G. Anderson, Vice-President, Occidental Chemical
Corporation, signed a Consent Agreement in this case. I am signing the Consent Agreement on
this date and incorporating its terms into this Consent Order by reference.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

420115009S_ Consent Agreement_11082011_text.pdf

NOV 8 2011
U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
____________________________________
In the Matter of )
Occidental Chemical Corporation, ) CPF No. 4-2011-5009S
)
)
)
Respondent )
____________________________________)
CONSENT AGREEMENT
On June 28, 2011, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), U.S. Department of Transportation, issued a Notice of Proposed Safety Order
(Notice) to Occidental Chemical Corporation (Occidental or Respondent). The Notice
alleges that Respondent’s Lake Charles/Orange Ethylene Pipeline has a condition or
conditions that, without corrective measures, would pose a pipeline integrity risk to
public safety, property, or the environment. Specifically, the Notice alleges that
resuming transportation of hazardous liquids in the pipeline without corrective measures
would pose a pipeline integrity risk. The pipeline extends approximately 32.7 miles from
the Glenn Springs Holding Plant site in Sulphur, Louisiana to the Chevron Plant in West
Orange, Texas.
In connection with the issuance of the Notice, Respondent requested an informal
conference. Respondent and PHMSA engaged in good faith settlement discussions
resulting in this Consent Agreement (the “Agreement”).
Having agreed that settlement of this proceeding will avoid further administrative
proceedings or litigation and that entry of this Consent Agreement is the most appropriate
means of resolving the Notice, pursuant to 49 C.F.R. Part 190, without adjudication of
any issue of fact or law, and upon consent and agreement of Respondent and PHMSA
(“the Parties”), the Parties agree as follows:
I. General Provisions
1. Respondent acknowledges that as operator of the Lake Charles/Orange Ethylene
Pipeline, Respondent and the subject pipeline are subject to the jurisdiction of the Federal
pipeline safety laws, 49 U.S.C. 60101 et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Consent Agreement, Respondent



acknowledges that it received proper notice of PHMSA’s action 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 orders issued thereunder.
2. Respondent does not admit or deny any allegation or conclusion in the Notice but
agrees, for purposes of this proceeding, that the integrity risk identified in the Notice
exists as described in the Notice and agrees to address it by completing the actions
specified in Section II of this Consent Agreement (“Work to be Performed”), including
the actions set forth in any work plans and schedules each of which shall automatically be
incorporated into this agreement upon approval. Respondent’s participation in this
Consent Agreement does not constitute an admission of liability for any purpose except
in a proceeding to enforce the provisions of this Agreement.
3. After Respondent returns this signed Consent Agreement, PHMSA’s
representative will present it to the Associate Administrator for Pipeline Safety
recommending that the Associate Administrator adopt the terms of this Agreement by
issuing an administrative order (Consent Order) incorporating the terms of this Consent
Agreement. The terms of this Consent Agreement constitute an offer of settlement until
accepted by the Associate Administrator. Upon the effective date of this Agreement, any
request for a hearing submitted by Respondent shall be automatically withdrawn.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Except as provided in Item
18 and Section IV of this Agreement, Respondent waives all rights to contest the
adequacy of notice, or the validity of the Consent Order or this Consent Agreement,
including all rights to administrative or judicial hearings or appeals.
5. This Consent Agreement shall apply to and be binding upon PHMSA, and upon
Respondent, its officers, directors, and employees, and its successors, assigns, or other
entities or persons otherwise bound by law. Respondent agrees to provide a copy of this
Consent Agreement and any incorporated work plans and schedules to all of
Respondent’s officers, employees, and agents whose duties might reasonably include
compliance with this Agreement.
6. For all transfers of ownership or operating responsibility of the Lake
Charles/Orange Ethylene Pipeline, Respondent shall provide a copy of this Consent
Agreement to the prospective transferee at least 30 days prior to such transfer and
simultaneously provide written notice of the prospective transfer to the PHMSA
Southwest Region Director (Director).
7. This Consent Agreement constitutes the final, complete and exclusive agreement
and understanding between the Parties with respect to the settlement embodied in this
Agreement, and the Parties acknowledge that there are no representations, agreements or
understandings relating to the settlement other than those expressly contained in this
Agreement, except that the terms of this Agreement may be construed by reference to the
Notice.
2



8. Nothing in this Consent 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 orders issued thereunder.
Nothing in this Consent 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 orders issued
thereunder, or any other provision of Federal or State law.
9. This Consent Agreement does not waive or modify any Federal, State, or local
laws or regulations that are applicable to Respondent’s pipeline systems. This Consent
Agreement is not a permit, or a modification of any permit, under any Federal, State, or
local laws or regulations. Respondent remains responsible for achieving and maintaining
compliance with all applicable Federal, State, and local laws, regulations and permits.
10. This Consent Agreement does not create rights in, or grant any cause of action to,
any third party not party to this Agreement. The U.S. Department of Transportation 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 Consent Agreement. Respondent agrees to indemnify and hold harmless
the U.S. Department of Transportation, 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.
II. Work to be Performed
11. Within 60 days of receipt of the Consent Order, Occidental must develop all
applicable written procedures required by 49 C.F.R. Part 195, such as operating and
maintenance procedures, emergency procedures and spill response plans, and operator
qualifications procedures for the pipeline and submit the procedures to the Director,
Southwest Region (Director) for compliance review.
12. Within 60 days of receipt of the Consent Order, Occidental must develop and
submit to the Director for prior approval a pipeline reactivation work plan that includes
evaluations of anomalies and coating deficiencies, repair plans, and corrective measures
to ensure the long term integrity of the pipeline and the safe restart of operations on the
pipeline. The work plan must include:
(A) Repair of the 33 dents and anomalies already identified by the in-line
inspection; and performance of additional field testing, inspections, and
evaluations necessary to determine the extent to which anomalies, coating
deficiencies, corrosion control deficiencies, other conditions described in
the Notice, or any other integrity risk conditions, are present elsewhere on
the pipeline. Make the results of the inspections, field excavations, and
evaluations available to PHMSA or its representative;
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(B) The performance of repairs or other corrective measures that fully
remediate the additional risk conditions identified in the course of the field
testing, inspections, and evaluations;
(C) A plan for final integrity validation testing and the submission of
supporting documentation for the establishment of the maximum operating
pressure (MOP) for the pipeline;
(D) Provisions for mitigating measures for any remaining risks and continuing
long-term periodic inspection and monitoring to ensure the ongoing safe
and environmentally sound operation of the pipeline considering the
results of the analyses, inspections, and corrective measures undertaken
pursuant to this Agreement and all available information about the
pipeline; and
(E) A proposed schedule for completion of the actions and plans required by
this Item.
13. Upon approval by the Director, the reactivation work plan automatically becomes
incorporated into the Agreement and must be revised by Occidental as necessary to
incorporate the results of actions undertaken pursuant to the Agreement and whenever
necessary to incorporate new information obtained during the failure investigations and
remedial activities. Occidental must submit any such plan revisions to the Director for
prior approval and such revisions automatically become incorporated into the Agreement
upon approval. The Director may approve plan elements incrementally.
14. Occidental must implement the reactivation work plan as approved by the
Director, including any revisions to the plan, as scheduled and make the results of all
actions taken in accordance with the approved plan available for review by PHMSA or its
representative.
15. Occidental must submit quarterly reports to the Director that: (1) include available
data and results of the testing and evaluations required by the Agreement and plans; and
(2) describe the progress of the repairs and other actions being undertaken as a result of
the Agreement. The first quarterly report is due on the last day of the third month
following receipt of the Order. The Director may adjust the regular intervals for
submitting reports.
16. The Director may grant an extension of time for compliance with any of the terms
of the Agreement upon a written request timely submitted demonstrating good cause for
an extension.
17. Occidental may appeal any decision of the Director to the Associate
Administrator for Pipeline Safety. Decisions of the Associate Administrator shall be
final.
4



III. Review and Approval Process
18. With respect to any submission under Section II of this Agreement that requires
the approval of the Director, the Director may: (a) approve, in whole or in part, the
submission, (b) approve the submission on specified conditions, (c) disapprove, in whole
or in part, the submission, or (d) any combination of the foregoing. In the event of
approval, approval in part, or approval upon conditions, Respondent will proceed to take
all action required by the submission as approved by the Director, subject to
Respondent’s right to invoke the dispute resolution procedures in Section IV with respect
to any conditions identified by the Director. In the event that the Director disapproves all
or any portion of the submission, the Director will provide Respondent with a written
notice of the deficiencies. Respondent will correct all deficiencies within the time
specified by the Director and resubmit it for approval, subject to Respondent’s right to
invoke the dispute resolution procedures in Section IV with respect to any conditions
identified by the Director.
IV. Dispute Resolution
19. 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 the dispute within 15 days, Respondent may request in writing, within 10 days, a
written determination resolving the dispute from the Associate Administrator for Pipeline
Safety providing all information that Respondent believes is relevant to the dispute. If
the request is submitted as provided herein, the Associate Administrator will issue a
determination in writing which shall be final. The existence of a dispute and PHMSA’s
consideration of matters placed in dispute shall not excuse, toll, or suspend any term or
timeframe for completion of any work to be performed under this Consent Agreement
during the pendency of the dispute resolution process except as agreed by the Director or
the Associate Administrator in writing.
V. Enforcement
20. This Agreement, as adopted by the Consent Order, is subject to all enforcement
authorities available to PHMSA under 49 U.S.C. § 60101 et seq. and 49 C.F.R. Part 190,
including administrative civil penalties under § 60122 of up to $100,000 per violation for
each day the non-compliance continues, if PHMSA determines that Respondent is not
materially proceeding in accordance with terms of this Agreement, with determinations
made by the Director, or if such determinations are appealed with decisions of the
Associate Administrator. All work plans and associated schedules set forth or referenced
in Section II shall be automatically incorporated into this Agreement and are enforceable
in the same manner.
VI. Record Keeping and Information Disclosure
21. Respondent agrees to maintain records demonstrating compliance with all
requirements of this Agreement for a period of at least five years following completion of5



all work to be performed. For any reports, plans, or other deliverables required to be
submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim of
business confidentiality or other protections applicable to the release of information by
PHMSA, covering part or all of the information required to be submitted to PHMSA
pursuant to this Agreement in accordance with 49 C.F.R. Part 7. The claim of
confidentiality shall be marked in writing on each page, and shall include a statement
specifying the grounds for each claim of confidentially. PHMSA shall determine release
of any information submitted pursuant to this Consent Agreement in accordance with 49
C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and/or PHMSA
policies, and other applicable regulations and Executive Orders.
VII. Effective Date
22. The “Effective Date” as used herein is the date on which this Agreement has
been signed by both Respondent and PHMSA. Unless specified to the contrary, all
deadlines for actions required by this Agreement run from the date of issuance of the
Consent Order adopting this Agreement.
VIII. Modification
23. The terms of this Agreement may be modified by mutual agreement of the
Parties. Such modifications shall be in writing and shall be signed by both Parties.
IX. Termination
24. This Agreement shall terminate upon the completion of all terms set forth in
Section II (Work to Be Performed). Respondent may request written confirmation from
PHMSA when this Agreement is terminated. To the extent ongoing monitoring is
required, PHMSA may terminate this Agreement with respect to all other requirements
with the exception of such monitoring. Nothing in this Agreement prevents Respondent
from completing any of the obligations earlier than the deadlines provided for herein.
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X. Ratification
25. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind
such party to this document.
26. The Parties hereby agree to all conditions and terms of this Consent Agreement:
For PHMSA: For Respondent:
___________________________ ____________________________
Mr. Rod M. Seeley Mr. Michael G. Anderson
Director, Southwest Region Vice-President
Pipeline and Hazardous Materials Occidental Chemical Corporation
Safety Administration
_____________________ _____________________
Date Date
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