{"operation":"document","citation":"CPF 420125013","title":"CHEVRON PIPE LINE CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-04-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.54(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125013.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125013.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125013","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420125013","body":"Notice of Probable Violation involving CHEVRON PIPE LINE CO. PHMSA's enforcement data identifies the cited regulation as 195.54(b). The case was opened on 2012-04-16 and is reported as closed as of 2013-04-18. Proposed civil penalty: $22,500. Assessed civil penalty: $22,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420125013_Final Order_04052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125013/420125013_Final%20Order_04052013.pdf\n\n420125013_Final Order_04052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125013/420125013_Final%20Order_04052013_text.pdf\n\n420125013_NOPV PCP_04162012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125013/420125013_NOPV%20PCP_04162012.pdf\n\n420125013_NOPV PCP_04162012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125013/420125013_NOPV%20PCP_04162012_text.pdf\n\n420125013_Operator Response to Notice_05102012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125013/420125013_Operator%20Response%20to%20Notice_05102012.pdf\n\n420125013_Final Order_04052013_text.pdf\n\nAPRIL 05, 2013\nMr. Randall L. Curry\nPresident\nChevron Pipe Line Company\n4800 Fournace Place\nBellaire, TX 77401\nRe: CPF No. 4-2012-5013\nDear Mr. Curry:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a civil penalty of $22,500. The penalty payment terms are set forth in the\nFinal Order. This enforcement action closes automatically upon receipt of payment. Service of\nthe Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise\nprovided 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. Jim Barnum, Vice President, Chevron Pipe Line Company\nMr. Rodrick 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)\nChevron Pipe Line Company, ) CPF No. 4-2012-5013\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn September 8-11, 2011, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS) initiated\nan investigation of an accident that occurred on September 8, 2011, on the 10-inch West Texas\nCoahoma LPG pipeline operated by Chevron Pipe Line Company (Chevron or Respondent).\nThe accident occurred approximately 40 feet west of Chevron’s 148.8 block valve located in\nMitchell County, Texas. The Coahoma pipeline runs approximately 2,750 miles, beginning at\nnatural gas processing facilities in Western Texas and in Mexico and terminating at product\nstorage facilities in Mt. Belvieu, Texas.1\nThe Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated\nApril 16, 2012, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that Chevron violated\n49 C.F.R. § 195.54 and proposed assessing a civil penalty of $22,500 for the alleged violation.\nChevron responded to the Notice by letter dated May 11, 2012 (Response). The company\ncontested the allegation, offered additional information in response to the Notice, and requested\nthat the proposed civil penalty be reduced.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195.54, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.54(b), which states:\n1 Pipeline Safety Violation Report (April 16, 2012) (Violation Report), 1.\n\n\n\n2\n§ 195.54 Accident reports.\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 report within 30 days of receiving any changes in or additions to the information\nreported on the original DOT Form 7000-1 report (7000-1 report). Specifically, the Notice\nalleged that Chevron failed to file a supplemental report to the 7000-1 report after receiving a\nmetallurgical report in December 2011.\nIn its Response, Chevron denies that it violated 195.54(b). While Respondent admits that it\nreceived a metallurgical report from Stress Engineering Services, Inc. dated December 5, 2011, it\nclaims there was no need to file a supplemental report given that the metallurgical report findings\nconcurred with the original 7000-1 report. Chevron also asserts that, since PHMSA also\nreceived a copy of the metallurgical report in early December, it was reasonable for the company\nto infer that there was no need to update the initial report.\nThe language of § 195.54(b) speaks for itself. The regulation requires filing a supplemental\nreport whenever “the operator receives any changes … or additions (emphasis added)” to the\noriginal report. The metallurgical report contains information that was not provided in the\noriginal 7000-1 report. For example, Chevron indicated in Section G5 – Material Failure of\nPipe or Weld of the 7000-1 report that, as determined by its field examination, mechanical stress\nwas a contributing failure in the cracking of the pipeline. However, the metallurgical report\ndetermined that the cause of the crack was “a result of a combination of bending loads and\nexcessive hardness in the weld heat affected zone (HAZ).” Contrary to Respondent’s statement\nthat a supplemental report was not required because it concurred with the 7000-1 report, the\nmetallurgical report contains additional information that clearly falls under § 195.54 and\ntherefore should have been submitted.\nEven assuming that Chevron did not receive the report until December 15, 2011, the\nsupplemental report was due by January 15, 2012. After prodding from the agency, Chevron\nfirst attempted to submit the required report on March 6, 2012, approximately three months later.\nChevron’s technological difficulties are immaterial to the disposition of this case. Chevron\nexceeded the 30-day time limit, irrespective of whether it complied as of March 6 or\nMarch 27, 2012.\nAccordingly, after considering all of the evidence, I find that Respondent violated\n49 C.F.R. § 195.54(b) by failing to file a supplemental report within 30 days of receiving any\nchanges in the information reported or additions to the original report on DOT Form 7000-1.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n\n\n\n3\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 $22,500 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $22,500 for Respondent’s violation of\n49 C.F.R. § 195.54(b), for failing to file a supplemental report within 30 days whenever an\noperator receives any changes in the information reported or additions to the original DOT Form\n7000-1. The Respondent argues that, if it violated § 195.54, the penalty calculation should\nutilize the date at which it attempted to comply, March 6, 2012, and not the date it actually\nuploaded the supplemental report, March 27, 2012. By referencing either date, the penalty\ncalculation is unaffected. The reporting forms and procedures are clearly stated in the\nregulations and serve an important function for the agency and overall safety. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $22,500 for violation of 49 C.F.R. § 195.54(b).\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8893.\nFailure to pay the $22,500 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nUnder 49 C.F.R. § 190.215, Respondent has the right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of the Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\n\n\n\n4\nrequirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of\nany civil penalty assessed but does not stay any other provisions of the Final Order, including\nany required corrective actions. If Respondent submits payment of the civil penalty, the Final\nOrder becomes the final administrative decision and the right to petition for reconsideration is\nwaived.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11139}