{"operation":"document","citation":"CPF 420115013","title":"CENTURION PIPELINE L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2011-08-17","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.505(g), 195.52(a)(3), 195.54(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420115013.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420115013.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420115013","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420115013","body":"Notice of Probable Violation involving CENTURION PIPELINE L.P.. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.505(g),  195.52(a)(3),  195.54(b). The case was opened on 2011-08-17 and is reported as closed as of 2012-04-30. Proposed civil penalty: $39,000. Assessed civil penalty: $39,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420115013_Final Order_04302012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115013/420115013_Final%20Order_04302012.pdf\n\n420115013_Final Order_04302012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115013/420115013_Final%20Order_04302012_text.pdf\n\n420115013_NOPV  PCP PCO_08172011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115013/420115013_NOPV%20%20PCP%20PCO_08172011.pdf\n\n420115013_NOPV PCP PCO_08172011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115013/420115013_NOPV%20PCP%20PCO_08172011_text.pdf\n\n420115013_Operator Response to NOPV_09162011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420115013/420115013_Operator%20Response%20to%20NOPV_09162011.pdf\n\n420115013_NOPV PCP PCO_08172011_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLAINCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 17, 2011\nCenturion Pipeline LP\nBill Boyer, President\n5 Greenway Plaza, Suite 100\nHouston, TX 77046\nCPF 4-2011-5013\nDear Mr. Boyer:\nFollowing an accident on October 10, 2010, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code investigated a\ncrude oil release that occurred at Slaughter Station, near Sundown, TX. PHMSA conducted its\ninvestigation (onsite and in-office) between October 2010 and July 2011.\nAs a result of the accident investigation, it appears that you have committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violation(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\nsection, of any failure that:\n(3) Caused estimated property damage, including cost of cleanup and recovery,\nvalue of lost product, and damage to the property of the operator or others, or both,\nexceeding $50,000;\n\n\n\nCenturion failed to give notice at the earliest practicable moment following discovery of\na crude oil release to the National Response Center (NRC). The crude oil release was\ndiscovered at approximately 7:35 AM on October 11, 2010 in Slaughter Station, near\nSundown, TX by the “Gauger,” and was reported to the Centurion control center in\nHouston, TX at approximately 7:45 AM. The control center Director then performed a\nquick calculation to determine the release amount utilizing breakout tanks hourly reports\nand meter snapshot reports. He estimated the release to be approximately 10,000 barrels.\nThis information was then immediately provided to the Vice President of Operations and\nDirector of HES/Regulatory/compliance. Centurion did not make a report to NRC\n(Report Number 956628) until 2:16 PM on 10/11/10, approximately 7 hours after the\ncrude oil release was discovered by the Gauger.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline commence, and\nappropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted\nCenturion failed to follow its written procedure P#195.432(b) “Inspection of In-service\nBreak out Tanks,” dated February 2004 in that it did not conduct a monthly inspection of\ntank #6688 for August, 2009. This procedure gives the steps required for periodic in-\nservice tank inspection including monthly external break out tank inspection. Centurion\nreviews and certifies annually that this procedure is accurate and current.\nCenturion did not conduct the tank inspection for tank #6688 in August, 2009 as required\nper procedure P# 195.432(b) despite leaks discovered on the flange and packing of the\nmixer during the preceding months: June 2009 and July 2009. PHMSA reviewed\nmonthly breakout tanks inspection records from March 2008 to September 2010 for tank\n#6688. There is no tank inspection record for August 2009. Centurion’s summary of\nmonthly breakout tank inspection records which were stored in the Maximo work order\ndata system showed a work order was generated to conduct inspection by 8/24/2009\n(target date), but the inspection was not conducted until 9/02/2009 and subsequent\ninspections were conducted on 10/06/2009 (9/24/2009-target date), 11/03/2009\n(10/24/2009-target date), and 12/03/2009 (11/03/2009-target date).\n3. §195.505 Qualification program. Each operator shall have and follow a written\nqualification program. The program shall include provisions to:\n2\n\n\n\n(g) Identify those covered tasks and the intervals at which evaluation of the individual's\nqualifications is needed\nCenturion failed to follow its OQ program by not re-qualifying control center personnel using the\nfrequency prescribed by the Centurion OQ program. Centurion OQ program (latest revision\nMarch 2010), cover task “O1- Operate Pipeline System from Control Center”\n, specifies the\nreevaluation frequency for this covered task to be 1 year “Due to the criticality of the Control\nCenter operations”\n. This has been in Centurion’s OQ program since 2004. During the\ninvestigation PHMSA reviewed the Performance Evaluation Form for task O1 for several\nemployees. The review revealed that several individuals were not evaluated every year but\napproximately every three or four years. The operations coordinator, who evaluates the control\ncenter controllers, confirmed the re-evaluation frequency practice at Centurion has been 3 years.\n4. §195.54 Accident reports\n(b) Whenever an operator receives any changes in the information reported or additions to\nthe original report on DOT Form 7000-1, it shall file a supplemental report within 30 days.\nCenturion failed to update the crude oil release amount on the accident report. The original\naccident report was filed on 11/10/2010 (report # 20100240-15363) and indicated 10,000 bbls\ncrude oil release. Centurion has filed 3 supplemental accident reports: 11/17/2010 (report\n#20100240-15375), 12/08/2010 (report #20100240-15436), and 12/10/2010 (report #20100240-\n15454), and no update on the spill amount was provided on the supplemental reports.\nCenturion reported 10,000 barrels of crude oil release based of an assumption that the leak began\nat approximately 7:45 AM 10/11/2010 and the Centurion’s “Leak, Maintenance and Exposed\nPipe Report” showed the crude oil release amount was 10,000 bbls. During the investigation,\nPHMSA reviewed the SCADA records and determined that the leak most likely occurred at 5:00\nPM on October 10, 2010 and that approximately 18,600 bbls were most likely released.\nPHMSA’s investigation also revealed that the vacuum truck records (99 loads) showed\napproximately 11,750 bbls of product were removed. Centurion did not update the written report\nfor the amount spilled.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for\neach violation for each day the violation persists up to a maximum of $1,000,000 for any related\nseries of violations. The Compliance Officer has reviewed the circumstances and supporting\ndocumentation involved in the above probable violation(s) and has recommended that you be\npreliminarily assessed a civil penalty of $ 39,000 as follows:\nItem number PENALTY\n1 $ 7,500\n3 $ 31,500\nWarning Items\nWith respect to item 2 we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\n3\n\n\n\nproceedings at this time. We advise you to promptly correct these item(s). Be advised that\nfailure to do so may result in Centurion being subject to additional enforcement action.\nProposed Compliance Order\nWith respect to items 3 and 4 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Centurion.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be advised\nthat all material you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b). If you do not respond within 30 days of receipt of this Notice, this\nconstitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 4-2011-5013 and for each document you\nsubmit, please provide a copy in electronic format whenever possible.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials\nSafety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Centurion a Compliance Order incorporating the\nfollowing remedial requirements to ensure the compliance of Centurion with the pipeline safety\nregulations:\n1. In regard to Item Number 3 of the Notice pertaining to Centurion’s OQ program.\nCenturion must review their written program and supporting documents and\nensure the instructions are internally consistent. Centurion must re-qualify all\nappropriate personnel for Task “O1- Operate Pipeline System from Control\nCenter” on an annual basis per their written program.\n2. In regard to Item Number 4 of the Notice pertaining to written accident reports.\nCenturion must file a supplemental report with the updated volume spilled.\n3. Centurion must complete items 1 and 2 within 30 days of final order.\n4. It is requested (not mandated) that Centurion maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to R. M. Seeley, Director, Southwest, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in\ntwo categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\n5\n\n420115013_NOPV  PCP PCO_08172011.pdf\n\nu.s. Department 8701 South Gessner, Suite 1110\nof Transportation Houston, TX 77074\npipeline and\nHazardous Materials Safety\nAdministration\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLAINCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 17,2011\nCenturion Pipeline LP\nBill Boyer, President\n5 Greenway Plaza, Suite 100\nHouston, TX 77046\nCPF 4-2011-5013\nDear Mr. Boyer:\nFollowing an accident on October 10, 2010, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code investigated a\ncrude oil release that occurred at Slaughter Station, near Sundown, TX. PHMSA conducted its\ninvestigation (onsite and in-office) between October 2010 and July 2011.\nAs a result of the accident investigation, it appears that you have committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violation(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\nsection, of any failure that:\n(3) Caused estimated property damage, including cost of cleanup and recovery,\nvalue of lost product, and damage to the property of the operator or others, or both,\nexceeding $50,000;\n\n\n\n2. 3. Centurion failed to give notice at the earliest practicable moment following discovery of\na crude oil release to the National Response Center (NRC). The crude oil release was\ndiscovered at approximately 7:35 AM on October 11, 2010 in Slaughter Station, near\nSundown, TX by the \"Gauger,\" and was reported to the Centurion control center in\nHouston, TX at approximately 7:45 AM. The control center Director then performed a\nquick calculation to determine the release amount utilizing breakout tanks hourly reports\nand meter snapshot reports. He estimated the release to be approximately 10,000 barrels.\nThis information was then immediately provided to the Vice President of Operations and\nDirector of HESlRegulatory/compliance. Centurion did not make a report to NRC\n(Report Number 956628) until 2:16 PM on 10/11/10, approximately 7 hours after the\ncrude oil release was discovered by the Gauger.\n§195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline commence, and\nappropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted\nCenturion failed to follow its written procedure P#195.432(b) \"Inspection of In-service\nBreak out Tanks,\" dated February 2004 in that it did not conduct a monthly inspection of\ntank #6688 for August, 2009. This procedure gives the steps required for periodic inservice\ntank inspection including monthly external break out tank inspection. Centurion\nreviews and certifies annually that this procedure is accurate and current.\nCenturion did not conduct the tank inspection for tank #6688 in August, 2009 as required\nper procedure P# 195.432(b) despite leaks discovered on the flange and packing of the\nmixer during the preceding months: June 2009 and July 2009. PHMSA reviewed\nmonthly breakout tanks inspection records from March 2008 to September 2010 for tank\n#6688. There is no tank inspection record for August 2009. Centurion's summary of\nmonthly breakout tank inspection records which were stored in the Maximo work order\ndata system showed a work order was generated to conduct inspection by 8/2412009\n(target date), but the inspection was not conducted until 9/0212009 and subsequent\ninspections were conducted on 10/0612009 (9124/2009-target date), 1110312009\n(l012412009-target date), and 12/0312009 (l1l0312009-target date).\n§ 195.505 Qualification program. Each operator shall have and follow a written\nqualification program. The program shall include provisions to:\n2\n\n\n\n(g) Identify those covered tasks and the intervals at which evaluation of the individual's\nqualifications is needed\nCenturion failed to follow its OQ program by not re-qualifying control center personnel using the\nfrequency prescribed by the Centurion OQ program. Centurion OQ program (latest revision\nMarch 2010), cover task \"01 Operate Pipeline System from Control Center\", specifies the\nreevaluation frequency for this covered task to be 1 year \"Due to the criticality of the Control\nCenter operations\". This has been in Centurion's OQ program since 2004. During the\ninvestigation PHMSA reviewed the Performance Evaluation Form for task 01 for several\nemployees. The review revealed that several individuals were not evaluated every year but\napproximately every three or four years. The operations coordinator, who evaluates the control\ncenter controllers, confirmed the re-evaluation frequency practice at Centurion has been 3 years.\n4. §195.54 Accident reports\n(b) Whenever an operator receives any changes in the information reported or additions to\nthe original report on DOT Form 7000-1, it shall file a supplemental report within 30 days.\nCenturion failed to update the crude oil release amount on the accident report. The original\naccident report was filed on 1111012010 (report # 20100240-15363) and indicated 10,000 bbls\ncrude oil release. Centurion has filed 3 supplemental accident reports: 11117/2010 (report\n#20100240-15375), 1210812010 (report #20100240-15436), and 12/1012010 (report #2010024015454),\nand no update on the spill amount was provided on the supplemental reports.\nCenturion reported 10,000 barrels of crude oil release based of an assumption that the leak began\nat approximately 7:45 AM 10/1112010 and the Centurion's \"Leak, Maintenance and Exposed\nPipe Report\" showed the crude oil release amount was 10,000 bbls. During the investigation,\nPHMSA reviewed the SCADA records and determined that the leak most likely occurred at 5:00\nPM on October 10, 2010 and that approximately 18,600 bbls were most likely released.\nPHMSA's investigation also revealed that the vacuum truck records (99 loads) showed\napproximately 11,750 bbls of product were removed. Centurion did not update the written report\nfor the amount spilled.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for\neach violation for each day the violation persists up to a maximum of $1,000,000 for any related\nseries of violations. The Compliance Officer has reviewed the circumstances and supporting\ndocumentation involved in the above probable violation(s) and has recommended that you be\npreliminarily assessed a civil penalty of $ 39,000 as follows:\nItem number PENALTY\n1 $ 7,500\n3 $ 31,500\nWarning Items\nWith respect to item 2 we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\n3\n\n\n\nproceedings at this time. We advise you to promptly correct these item(s). Be advised that\nfailure to do so may result in Centurion being subject to additional enforcement action.\nProposed Compliance Order\nWith respect to items 3 and 4 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to Centurion.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be advised\nthat all material you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.c. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 V.S.c. 552(b). If you do not respond within 30 days of receipt of this Notice, this\nconstitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 4-2011-5013 and for each document you\nsubmit, please provide a copy in electronic format whenever possible.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials\nSafety Administration\nEnclosure: Response Options/or Pipeline Operators in Compliance Proceedings\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Centurion a Compliance Order incorporating the\nfollowing remedial requirements to ensure the compliance of Centurion with the pipeline safety\nregulations:\n1. 2. 3. 4. In regard to Item Number 3 of the Notice pertaining to Centurion's OQ program.\nCenturion must review their written program and supporting documents and\nensure the instructions are internally consistent. Centurion must re-qualify all\nappropriate personnel for Task \"01- Operate Pipeline System from Control\nCenter\" on an annual basis per their written program.\nIn regard to Item Number 4 of the Notice pertaining to written accident reports.\nCenturion must file a supplemental report with the updated volume spilled.\nCenturion must complete items 1 and 2 within 30 days of final order.\nIt is requested (not mandated) that Centurion maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to R. M. Seeley, Director, Southwest, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in\ntwo categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\n5\n\n420115013_Final Order_04302012_text.pdf\n\nAPR 30 2012\nMr. Bill Boyer\nPresident\nCenturion Pipeline, LP\n5 Greenway Plaza\nHouston, TX 77046\nRe: CPF No. 4-2011-5013\nDear Mr. Boyer:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings\nof violation and assesses a civil penalty of $39,000. This is to acknowledge receipt of\npayment of the full penalty amount, by wire transfer, dated September 16, 2011. It further\nfinds that Centurion Pipeline, LP, has completed the actions specified in the Notice to\ncomply with the pipeline safety regulations. Therefore, this enforcement action is now\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of\nmailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Rod M. Seeley, Director, Southwest Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nCenturion Pipeline, LP, ) CPF No. 4-2011-5013\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween October 2010 and July 2011, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an investigation of an accident involving Centurion Pipeline, LP’s\n(Centurion or Respondent) hazardous liquid pipeline system at the company’s Slaughter\nStation near Sundown, Texas. Centurion, a subsidiary of Occidental Petroleum Corporation,\noperates approximately 2,750 miles of pipelines from southeast New Mexico to Cushing,\nOklahoma.\n1\nThe investigation arose out of an October 10, 2010 accident during which approximately\n10,000 barrels of crude oil were released at Slaughter Station. As a result of the\ninvestigation, the Director, Southwest Region, OPS (Director), issued to Respondent, by\nletter dated August 17, 2011, a Notice of Probable Violation, Proposed Civil Penalty and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that Centurion had failed to report the accident at the earliest practicable\nmoment, in violation of 49 C.F.R. § 195.52, and had committed various other violations of\n49 C.F.R. Part 195. The Notice proposed assessing a civil penalty of $39,000 and ordering\nRespondent to take certain measures to correct the alleged violations. The Notice also\nincluded a warning item, which required no further action but warned the operator to correct\nthe probable violation or face future possible enforcement action.\nCenturion responded to the Notice by letter dated September 16, 2011 (Response). The\ncompany did not contest the allegations of violation and paid the proposed civil penalty of\n$39,000, as provided in 49 C.F.R. § 190.227. The company also provided information\nconcerning the corrective actions it had taken and submitted copies of its revised procedures.\nPayment of the penalty serves to close the case with prejudice to Respondent. Centurion did\nnot request a hearing and therefore has waived its right to one.\n1 http://www.centurionpipeline.com (last accessed April 20, 2012).\n\n\n\n2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.52(a)(3), which states:\n§ 195.52 Telephonic notice of certain accidents.\n(a) At the earliest practicable moment following discovery of a\nrelease of the hazardous liquid or carbon dioxide transported resulting in\nan event described in § 195.50, the operator of the system shall give\nnotice, in accordance with paragraph (b) of this section, of any failure that:\n(1) . . .\n(3) Caused estimated property damage, including cost of cleanup\nand recovery, value of lost product, and damage to the property of the\noperator or others, or both, exceeding $50,000.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.52(a)(3) by failing to file a\ntelephonic notice with the National Response Center (NRC) at the earliest practicable moment\nfollowing discovery of a release of product that met the threshold of § 195.50. The Notice\nalleged that Centurion’s accident at Slaughter Station met the reporting criteria of § 195.52\nbecause it caused estimated property damage, including cleanup and recovery, value of lost\nwas discovered at 7:35 a.m. on the morning of October 11, 2010, and was reported to\nproduct, and damage to the property of the operator or others exceeding $50,000.2 The release\nCenturion’s Central Control at 7:45 a.m. However, Centurion did not make the telephonic notice\nto the NRC until 2:16 p.m., almost seven hours later (Report No. 956628).\nSection 195.52 requires that operators report accidents meeting the criteria in § 195.50 at the\n“earliest practicable moment following discovery.” Historically, PHMSA has interpreted this as\nbeing between 1-2 hours because the circumstances surrounding most liquid pipeline accidents\nhave shown that operators generally have sufficient opportunity within a few hours to make an\ninformed decision as to whether or not they must make an emergency notification to the NRC.\nIn addition, PHMSA has consistently communicated to the industry its need to evaluate the cause\nof incidents early on and not to wait until after evidence has become outdated or stale. PHMSA\nhas issued two alert notices, dated April 15, 1991 (ALN-91-01) and August 30, 2002 (ADB-02-\n04), providing guidance to the industry on PHMSA’s understanding of the term “earliest\npracticable moment.\nbulletins state that PHMSA interprets the term “earliest practicable moment” as being between 1-\n2 hours.\n”3 This guidance and the interpretation letters preceding the advisory\nIn its Response, Centurion did not contest this allegation of violation. Accordingly, after\nconsidering all of the evidence, I find that Centurion violated 49 C.F.R. § 195.52(a)(3) by failing\nto report this accident at the earliest practicable moment.\n2 Centurion notified the NRC after making the decision that the cleanup costs could exceed $50,000. Centurion\nlisted the estimated costs to the operator in its initial Accident Report at $64,130. See Report No. 20100240-15363,\nPipeline Safety Violation Report (Violation Report), (August 17, 2011) (on file with PHMSA), Exhibit D.\n3 See http://www.phmsa.dot.gov/pipeline/regs/advisory-bulletin for a list of PHMSA advisory bulletins.\n\n\n\n3\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.505(g), which states:\n§ 195.505 Qualification program.\nEach operator shall have and follow a written qualification program.\nThe program shall include provisions to:\n(a) . . .\n(g) Identify those covered tasks and the intervals at which\nevaluation of the individual’s qualifications is needed.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.505(g) by failing to follow its own\noperator qualification (OQ) program. Specifically, it alleged that Centurion failed to re-qualify\ncontrol center personnel as frequently as prescribed by the company’s OQ program, which stated\nthat the re-evaluation interval for Task O-1, “Operate Pipeline System from Control Center,” was\none year. PHMSA inspectors discovered, however, that Centurion had only been re-evaluating\ncontrol center personnel every three to four years.\nIn its Response, Centurion did not contest the alleged violation and confirmed that it had re-\nqualified all Control Center operators as of May 25, 2011. Centurion also reviewed and revised\nits procedures to ensure that the required annual frequency of review was consistently applied.\nAccordingly, I find that Respondent violated 49 C.F.R. § 195.505(g) by failing to follow its own\nwritten OQ program.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.54(b), which states:\n§ 195.54 Accident reports.\n(a) Each operator that experiences an accident that is required to be\nreported under § 195.50 shall as soon as practicable, but not later than 30\ndays after discovery of the accident, prepare and file an accident report on\nDOT Form 7000-1, or a facsimile.\n(b) Whenever an operator receives any changes in the information\nreported or additions to the original report on DOT Form 7000-1, it shall\nfile a supplemental report within 30 days.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.54(b) by failing to file a\nsupplemental accident report within 30 days of receiving changes in the information originally\nreported. Specifically, it alleged that Centurion failed to update the release amount for its\nOctober 10, 2010 accident after learning of revised spill estimates. The original report filed on\nNovember 10, 2010 (report # 20100240-15363) indicated that 10,000 barrels had been released.\nCenturion filed three supplemental accident reports (report #s 20100240-15375, 20100240-\n15436, and 20100240-15454) yet provided no updated release amount in any of these reports.\nDuring the investigation, PHMSA reviewed Centurion’s Supervisory Control and Data\nAcquisition (SCADA records and determined that the leak most likely occurred at 5:00 p.m. on\nOctober 10, 2010, and that approximately 18,600 barrels had most likely been released. PHMSA\ninspectors also discovered that the vacuum trucks deployed for cleanup of the accident had\nremoved approximately 11,750 barrels of product, which exceeded Centurion’s original 10,000-\nbarrel release estimate.\n\n\n\n4\nCenturion did not contest the probable violation but stated that it had made its best estimate of\nthe release amount using data from its Control Center and volumetric calculations from the\namount of oil recovered and the amount of product in the remediated soil. Centurion also stated\nthat in its experience, vacuum trucks usually picked up 4-8% sediment and therefore the 11,750\nbarrel estimate may not have been accurate.\nAfter considering all of the evidence, I find that Respondent violated 49 C.F.R. § 195.54(b) by\nfailing to submit a supplemental accident report (DOT Form 7000-1) with an updated spill\namount.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under\n49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $39,000 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $7,500 for Respondent’s violation of\n49 C.F.R. § 195.52, for failing to submit a telephonic notice at the earliest practicable moment\nafter discovering a crude oil release at its facility. Centurion did not contest either the allegation\nof violation or the proposed penalty amount. Accordingly, having reviewed the record and\nconsidered the penalty assessment criteria, I assess Respondent a civil penalty of $7,500 which\nhas already been remitted.\nItem 3: The Notice proposed a civil penalty of $31,500 for Respondent’s violation of\n49 C.F.R. § 195.505(g), for failing to follow the company’s own OQ procedures for re-\nqualifying personnel. Centurion did not contest either the allegation of violation or the proposed\npenalty amount. Accordingly, having reviewed the record and considered the penalty assessment\ncriteria, I assess Respondent a civil penalty of $31,500, which has already been remitted.\nIn summary, upon review of all the evidence and consideration of the assessment criteria for\neach of the Items cited above, I assess Respondent a total civil penalty of $39,000, which has\nalready been remitted.\n\n\n\n5\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 3 and 4 in the Notice for\nviolations of 49 C.F.R. §§ 195.505 and 195.54, respectively. Under 49 U.S.C. § 60118(a), each\nperson who engages in the transportation of hazardous liquids or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. The Director has indicated that Respondent has taken the following actions to\naddress the cited violations:\nItem 3: Centurion has made revisions to its OQ program and supporting documents\nto ensure that personnel are annually re-qualified for Task O1, “Operate Pipeline\nSystem from Control Center.” In addition, on May 25, 2011, Centurion completed\nre-qualification of all Control Center operators as required by the Proposed\nCompliance Order.\nItem 4: Centurion has revised the release volume stated in the DOT 7000-1\nSupplemental Accident Form for the October 10, 2010 accident.\nAccordingly, I find that compliance has been achieved with respect to these violations.\nTherefore, the compliance terms proposed in the Notice are not included in this Order.\nWARNING ITEM\nWith respect to Item 2, the Notice alleged a probable violation of Part 195 specifically\nconsidered to be a warning item. The warning was for:\n49 C.F.R. § 195.402(a) (Item 2) ─ Respondent’s alleged failure to follow its own\nwritten procedure for the inspection of in-service breakout tanks (P#195.432(b)).\nSpecifically, the Notice alleged that Respondent failed to conduct a monthly inspection\nof tank #6688 for August 2009. In its Response, Centurion acknowledged that although\nit should have completed the inspection in August 2009, it conducted this particular tank\ninspection on September 2, 2009.\nIf OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject\nto future enforcement action.\nThe terms and conditions of this Final Order are effective upon receipt of service.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":37370}