# LOOP LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 420135015
- **title:** LOOP LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2013-06-19
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.406(b).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420135015
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420135015
**body:**

Notice of Probable Violation involving LOOP LLC. PHMSA's enforcement data identifies the cited regulation as 195.406(b). The case was opened on 2013-06-19 and is reported as closed as of 2013-11-14. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420135015_Final Order_11142013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135015/420135015_Final%20Order_11142013.pdf

420135015_Final Order_11142013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135015/420135015_Final%20Order_11142013_text.pdf

420135015_NOPV PCO_06192013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135015/420135015_NOPV%20PCO_06192013.pdf

420135015_NOPV PCO_06192013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135015/420135015_NOPV%20PCO_06192013_text.pdf

420135015_Operator Response to Notice_07172013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135015/420135015_Operator%20Response%20to%20Notice_07172013.pdf

420135015_Final Order_11142013_text.pdf

NOVEMBER 14, 2013
Mr. Thomas Shaw
President
LOOP, LLC
137 Northpark Blvd.
Covington, LA 70433
Re: CPF No. 4-2013-5015
Dear Mr. Shaw:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and finds that LOOP, LLC, has completed the actions specified in the Notice to comply
with the pipeline safety regulations. Therefore, this case is now closed. Service of the Final
Order 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. R.M. Seeley, Director, Southwest Region, OPS
Ms. CaSandra J. Cooper-Gates, Senior Vice President - Administration, LOOP, LLC
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
LOOP, LLC, ) CPF No. 4-2013-5015
)
Respondent. )
____________________________________)
FINAL ORDER
Pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an investigation of an
accident that occurred on May 12, 2013, at the Clovelly Tank Facility operated by LOOP, LLC
(LOOP or Respondent), in Clovelly, Louisiana. LOOP has fifteen breakout tanks at this facility,
where crude oil is stored before it is distributed via connecting pipelines.
1 The investigation
arose out of an accident involving Tank 6416 which resulted in the release of 7.6 barrels of crude
oil.
As a result of the investigation, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated June 19, 2013, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that LOOP had violated 49 C.F.R. § 195.406 and proposed ordering Respondent to take
certain measures to correct the alleged violation.
LOOP responded to the Notice by letters dated July 17, 2013, and August 16, 2013 (Response).
The company did not contest the allegation of violation but provided information concerning the
corrective actions it had taken. Respondent did not request a hearing and therefore has waived
its right to one.
FINDING OF VIOLATION
LOOP did not contest the allegation in the Notice that it violated 49 C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.406(b), which states:
1 See http://www.loopllc.com/Services/Tank-Storage (last accessed September 27, 2013).



2
§ 195.406 – Maximum operating pressure.
(a) . . . .
(b) No operator may permit the pressure in a pipeline during surges or
other variations from normal operations to exceed 110 percent of the
operating pressure limit established under paragraph (a) of this section.
Each operator must provide adequate controls and protective equipment to
control the pressure within this limit.
The Notice alleged that Respondent violated 49 C.F.R. § 195.406(b) by failing to provide
adequate controls to ensure that the pressure in its pipeline did not exceed 110 percent of the
maximum operating pressure. Specifically, the Notice alleged that the technician performing
maintenance activity on flow valve 6416 closed the valve while a delivery was being made to
Tank 6416, and that the closure of this valve during the delivery caused an overpressure of the
pipeline. The Notice alleged that LOOP’s maintenance procedure did not specify that flow valve
6416 must remain open during deliveries to Tank 6416, and did not specify that no maintenance
of this flow valve can take place during deliveries to Tank 6416. Respondent did not contest this
allegation of violation. Accordingly, based upon a review of all of the evidence, I find that
Respondent violated 49 C.F.R. § 195.406(b) by failing to provide adequate controls to ensure
that the pressure in its pipeline did not exceed 110 percent of the maximum operating pressure.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of
49 C.F.R. § 195.406. Under 49 U.S.C. § 60118(a), each person who engages in the
transportation of hazardous liquids or who owns or operates a pipeline facility is required to
comply with the applicable safety standards established under Chapter 601. The Director
indicates that Respondent has taken the following actions specified in the proposed compliance
order:
1. With respect to the violation of § 195.406 (Item 1), Respondent has:
a. Performed a Root Cause Failure Analysis of the accident that occurred on
May 12, 2013, and determined corrective actions that would prevent
recurrence of similar overpressure events at the Clovelly Tank Facility;
b. Completed the corrective actions that were identified by the Root Cause
Failure Analysis;
c. Revised its procedure titled “Tank Facility Tank Hydraulic Valve
TFRHYDVLV Annual PM” to clarify notification and procedural
requirements for the preventative maintenance activity;
d. Provided training to technicians and Control Room personnel with
responsibility for the Clovelly Tank Facility to ensure that they understand
revised procedures, corrective actions, and maximum operating pressures.



3
Accordingly, I find that compliance has been achieved with respect to this violation. Therefore,
the compliance terms proposed in the Notice are not included in this Order.
The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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