{"operation":"document","citation":"CPF 420145025","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":"2014-09-30","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.404(a), 195.442(c)(5).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145025.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145025.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145025","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420145025","body":"Notice of Probable Violation involving CENTURION PIPELINE L.P.. PHMSA's enforcement data identifies the cited regulations as 195.404(a),  195.442(c)(5). The case was opened on 2014-09-30 and is reported as closed as of 2019-03-20. Proposed civil penalty: $165,600. Assessed civil penalty: $92,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420145025_Closure Letter_03202019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Closure%20Letter_03202019.pdf\n\n420145025_Closure Letter_03202019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Closure%20Letter_03202019_text.pdf\n\n420145025_Consent Order and Agreement_01312019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Consent%20Order%20and%20Agreement_01312019.pdf\n\n420145025_Consent Order and Agreement_01312019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Consent%20Order%20and%20Agreement_01312019_text.pdf\n\n420145025_Final Order_03312017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Final%20Order_03312017.pdf\n\n420145025_Final Order_03312017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Final%20Order_03312017_text.pdf\n\n420145025_NOPV PCP PCO_09302014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_NOPV%20PCP%20PCO_09302014.pdf\n\n420145025_NOPV PCP PCO_09302014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_NOPV%20PCP%20PCO_09302014_text.pdf\n\n420145025_Operator Petition for Reconsideration with Exhibits_04272017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Operator%20Petition%20for%20Reconsideration%20with%20Exhibits_04272017.pdf\n\n420145025_Operator Petition For Review (United Sates Court of Appeals For the Fifth Circuit)_11162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_Operator%20Petition%20For%20Review%20(United%20Sates%20Court%20of%20Appeals%20For%20the%20Fifth%20Circuit)_11162017.pdf\n\n420145025_PHC Decision on Petition Reconsideration_10242017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_PHC%20Decision%20on%20Petition%20Reconsideration_10242017.pdf\n\n420145025_PHC Decision on Petition Reconsideration_10242017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145025/420145025_PHC%20Decision%20on%20Petition%20Reconsideration_10242017_text.pdf\n\n420145025_Closure Letter_03202019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 20, 2019\nJennifer Fontenot\nChief Operating Officer\nCenturion Pipeline, LP\n5 Greenway Plaza, Suite 1600\nHouston, Texas 77046-7570\nCPF 4-2014-5025\nDear Ms. Fontenot:\nOn January 31, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Centurion Pipeline, LP a Consent Agreement and Order in the above-referenced case.\nThis Order included a Compliance Order and Civil Penalty assessment. Based on our review of\nthe documentation you provided and confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest\nPipeline and Hazardous Materials Safety Administration\n\n420145025_PHC Decision on Petition Reconsideration_10242017_text.pdf\n\nOctober 24, 2017\nMs. Vicki Hollub\nPresident and Chief Executive Officer\nOccidental Petroleum Corporation\n5 Greenway Plaza, Suite 110\nHouston, TX 77046\nRe: CPF No. 4-2014-5025\nDear Ms. Hollub:\nEnclosed please find the Decision on the Petition for Reconsideration filed by Centurion\nPipeline, LP, a subsidiary of Occidental Petroleum Corporation, in the above-referenced case.\nFor the reasons explained therein, the Decision affirms the violations in the Final Order and does\nnot modify the civil penalty or compliance terms. When the civil penalty has been paid and the\nterms of the Compliance Order completed, as determined by the Director, Southwest Region, this\nenforcement action will be closed. This Decision constitutes the final administrative action in\nthis proceeding. Service of this Decision is made pursuant to 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Scott Janoe, Esq., Baker Botts, LLP, 910 Louisiana St., Houston, TX 77002\nMr. Mike Morgan, General Manager – Operations, Centurion Pipeline, LP, 5 Greenway\nPlaza, Suite 110, Houston, TX 77046\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_________________________________________\nIn the Matter of )\nCenturion Pipeline, LP, ) CPF No. 4-2014-5025\na subsidiary of Occidental Petroleum Corp., )\n)\n)\n)\nPetitioner. )\n_________________________________________ )\nDECISION ON PETITION FOR RECONSIDERATION\nBetween January and June 2014, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an investigation of an accident that occurred January 30, 2014, on a pipeline operated\nby Centurion Pipeline, LP (Centurion or Petitioner),1 near Snyder, Texas. Centurion operates\napproximately 2,500 miles of pipeline transporting crude oil in Texas, Oklahoma, and New\nMexico.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nPetitioner, by letter dated September 30, 2014, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Centurion had violated 49 C.F.R. §§ 195.404 and 195.442 and\nproposed a civil penalty of $165,600 for the alleged violations. The Notice also proposed\nordering certain compliance measures to correct the alleged violations.\nCenturion responded to the Notice by letter dated October 30, 2014 (Response), contested the\nallegations, and requested a hearing. Centurion submitted additional materials on April 20,\n2015. A hearing was held on April, 29, 2015, in Houston, Texas, with an attorney from the\nOffice of Chief Counsel, PHMSA, presiding. After the hearing, Petitioner provided post-hearing\nstatements for the record by letters dated June 26, 2015 (Closing), and August 14, 2015\n(Supplemental Closing). Pursuant to § 190.209(b)(7), the Director submitted a written\nevaluation of Petitioner’s response material on July 9, 2015 (Recommendation).\n1 Centurion is a subsidiary of Occidental Petroleum Corporation. See Centurion’s Petition for Reconsideration and\nBrief in Support, (April 27, 2017) (on file with PHMSA).\n2 This information is reported by Centurion for 2015 pursuant to 49 C.F.R. § 195.49.\n\n\n\nCPF No. 4-2014-5025\nPage 2\nOn March 31, 2017, pursuant to 49 C.F.R. § 190.213, PHMSA issued a Final Order in this\nproceeding, finding that Centurion committed violations of § 195.404(a) (Item 1) and § 195.442\n(Item 2), as alleged in the Notice. The Final Order assessed a reduced civil penalty of $122,400,\nand ordered corrective action with respect to Item 1, as set forth in the Compliance Order.\nIn accordance with 49 C.F.R. § 190.243, Centurion filed a timely Petition for Reconsideration\n(Petition) of the Final Order on April 27, 2017, seeking reconsideration of the violations, civil\npenalties, and Compliance Order. The filing of the petition automatically stayed payment of the\nassessed civil penalty pursuant to § 190.243(c), but did not stay the corrective actions required to\nbe completed under the Compliance Order.\nPursuant to 49 C.F.R. § 190.243, an operator may petition the Associate Administrator for\nreconsideration of a final order issued under § 190.213. Reconsideration does not constitute an\nappeal or an opportunity to seek a de novo review of the record. It is instead an opportunity for\npetitioners to request that errors in the final order be corrected or to present information that was\nnot previously available, provided the petitioner submits a valid reason explaining why such\ninformation was not presented prior to issuance of the final order. PHMSA may grant or deny,\nin whole or in part, a petition for reconsideration without further proceedings, but may request\nadditional information or comment if deemed appropriate. Under § 190.243(b), the petitioner\nmust submit reasoning why any additional facts or arguments were not presented prior to\nissuance of the final order.\nCenturion did not submit additional facts or arguments in the Petition. Rather, Centurion\ncontinued to argue against PHMSA’s interpretations of 49 C.F.R. §§ 195.404(a) and\n195.442(c)(5), repeating the same arguments and citing the same information contained in\nPetitioner’s previous submissions and discussed at the hearing. Centurion characterized its\nPetition as an attempt to clarify certain of its previous statements, which Petitioner asserted\nPHMSA “may have misinterpreted and/or misapplied.” 3\nBackground\nOn November 12, 2013, in response to a one-call ticket submitted by an excavation contractor,\nCenturion located and temporarily marked two of its pipelines within the proposed excavation\narea. The two pipelines were Centurion’s parallel eight-inch and six-inch pipelines. Centurion’s\nmaps indicated that the eight-inch pipeline was located south of Centurion’s parallel six-inch\npipeline, but the actual location of the eight-inch pipeline at the site of the excavation was north\nof the six-inch pipeline within the same right-of-way. Centurion used existing maps and a Radio\nDetection RD8000 locator to locate the pipes and mark them. The six-inch pipeline was marked\nafter the eight-inch line. The one-call ticket was renewed five times before excavation\neventually started, each time prompting a site visit from Centurion, which verified the two\npipelines were still marked.\nDuring excavation on January 30, 2014, two additional, unidentified pipes were discovered in the\nexcavation area. Where Centurion had marked what it expected to be its eight-inch and six-inch\npipelines, the excavator uncovered two six-inch pipes. Upon the discovery of a second six-inch\n3 Petition, at 2.\n\n\n\nCPF No. 4-2014-5025\nPage 3\npipeline, Centurion learned that its eight-inch pipeline had not been marked and attempted to\nlocate and correctly mark the line. The excavator then partially exposed an eight-inch pipeline,\nwhich Centurion presumed was its own pipeline. This pipeline, however, was not Centurion’s\nline, but another eight-inch pipeline located directly above Centurion’s eight-inch line.\nCenturion’s eight-inch line still could not be seen at the excavation site. Believing Centurion’s\neight-inch line had already been exposed, the excavation continued and Centurion’s eight-inch\npipeline was struck and damaged.\nAnalysis\nItem 1 in the Final Order found that Centurion violated 49 C.F.R. § 195.404(a), which states:\n§195.404 Maps and records.\n(a) Each operator shall maintain current maps and records of its pipeline\nsystems that include at least the following information;\n(1) Location and identification of the following pipeline facilities;\n(i) Breakout tanks;\n(ii) Pump stations;\n(iii) Scraper and sphere facilities;\n(iv) Pipeline valves;\n(v) Facilities to which §195.402(c)(9) applies;\n(vi) Rights-of-way; and\n(vii) Safety devices to which §195.428 applies.\n(2) All crossings of public roads, railroads, rivers, buried utilities, and\nforeign pipelines.\n(3) The maximum operating pressure of each pipeline.\n(4) The diameter, grade, type and nominal wall thickness of all pipe.\nThe Final Order determined that Petitioner violated 49 C.F.R. § 195.404(a) by failing to maintain\ncurrent maps of its pipeline systems. Specifically, PHMSA found that Centurion did not\nmaintain a current map of its eight-inch Snyder-to-Post crude pipeline. On January 30, 2014,\nCenturion’s eight-inch pipeline suffered third-party damage during excavation. Maps used by\nCenturion to temporarily mark the eight-inch pipeline prior to excavation incorrectly showed the\npipeline was south of a parallel six-inch pipeline also operated by Centurion. The correct\nlocation of the eight-inch pipeline was discovered to be north of the six-inch line.\nIn the Petition, Centurion argued the finding of violation in Item 1 should be reversed for several\nreasons. The specific assertions made by Petitioner were that: (1) Centurion’s maps complied\nwith regulatory and industry standards; (2) Centurion’s marking of the other eight-inch pipeline\nimmediately above Centurion’s eight-inch pipeline rendered the maps accurate; and (3)\nCenturion’s maps were not required to accurately indicate the position of Centurion’s eight-inch\npipeline relative to other pipelines in the area.\nThese arguments were previously raised in response to the Notice, at the hearing, and in\nsubsequent submissions and were rejected in the Final Order. Finding no reason to modify the\nfindings in the Final Order, PHMSA affirms the violation of § 195.404(a).\n\n\n\nCPF No. 4-2014-5025\nPage 4\nItem 2 in the Final Order found that Centurion violated 49 C.F.R. § 195.442(c)(5), which states:\n§ 195.442 Damage prevention program.\n(a) . . . .\n(c) The damage prevention program required by paragraph (a) of this\nsection must, at a minimum: …\n(5) Provide for temporary marking of buried pipelines in the area of\nexcavation activity before, as far as practical, the activity begins.\nThe Final Order determined that Petitioner violated 49 C.F.R. § 195.442(c)(5) by failing to\nprovide correct temporary markings in the area of the excavation activity before the activity\nbegan. Specifically, PHMSA found that Centurion failed to provide accurate temporary\nmarkings of its eight-inch pipeline when it twice mis-marked the pipe’s location. Petitioner\nattempted to locate and mark its eight-inch pipeline on November 12, 2013, and again on\nJanuary 30, 2014 (the day of the accident). Each time, Petitioner failed to accurately mark its\neight-inch pipeline, which eventually resulted in damage to the pipeline by a third-party\ncontractor using excavation equipment.\nIn the Petition, Centurion argued the finding of violation in Item 2 should be reversed for several\nreasons. The specific assertions made by Petitioner were that: (1) Centurion properly marked its\npipelines in compliance with regulatory and industry standards; (2) but for the existence of the\nother eight-inch pipeline immediately above Centurion’s eight-inch pipeline, no damage would\nhave resulted to Centurion’s line; (3) the finding of violation in Item 2 imposed a strict liability\nstandard on Petitioner; and (4) but for the excavator’s failure to comply with Texas law\nconcerning the area of excavation, no damage would have resulted to Centurion’s line.\nArguments (1), (2), and (4) were previously raised in response to the Notice, at the hearing, and\nin subsequent submissions and were rejected in the Final Order. With regard to argument (3),\nPetitioner did not articulate how the finding of violation in Item 2 of the Final Order imposed a\nstrict liability standard on Centurion. Presumably, Petitioner intended to assert that Item 2 was\npremised entirely on the fact that excavation activity resulted in damage to Centurion’s eight-\ninch line. This argument is without merit; the finding of violation documented in the Final Order\ndemonstrated that Centurion did not mark its own pipeline, but, rather marked an unidentified\npipeline operated by another company. Finding no reason to modify the findings in the Final\nOrder, PHMSA affirms the violation of § 195.442(c)(5).\nConclusion\nBased on a review of the record and the information provided in the Petition, I hereby deny the\nPetition and affirm the Final Order without modification, for the reasons set forth above.\nPayment of the $122,400 civil penalty assessed in the Final Order is now due and must be made\nwithin 20 days of service of this Decision. The payment instructions were set forth in detail in\nthe Final Order. Failure to pay the $122,400 civil penalty will result in accrual of interest at the\n\n\n\nCPF No. 4-2014-5025\nPage 5\ncurrent annual rate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9, and 49 C.F.R.\n§ 89.23. Pursuant to those same authorities, a late penalty charge of six percent (6%) per annum\nwill be charged if payment is not made within 110 days of service. Furthermore, failure to pay\nthe civil penalty may result in referral of the matter to the Attorney General for appropriate\naction in a United States District Court.\nAll other terms of the Final Order remain in effect, including terms of the Compliance Order,\nwhich were required to be completed by Centurion and submitted to the Director, Southwest\nRegion no later than 90 days from receipt of the Final Order, or no later than July 5, 2017.\nThis Decision constitutes final agency action taken by PHMSA in the enforcement proceeding.\nThe terms and conditions of this Decision are effective upon service in accordance with\n49 C.F.R. § 190.5.\nOctober 24, 2017\n_____________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420145025_Consent Order and Agreement_01312019_text.pdf\n\nCPF No. 4-2014-5025\nPage 1\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of )\nCenturion Pipeline, LP, ) CPF No. 4-2014-5025\na subsidiary of Occidental Petroleum Corp., )\nRespondent. )\n)\n)\n)\n)\nCONSENT AGREEMENT AND ORDER\nThe U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration\n(PHMSA), and Centurion Pipeline, LP (Centurion or Respondent) have engaged in settlement\ndiscussions regarding the resolution of the enforcement action listed above and the Petition for\nReview filed by Centurion in the U.S. Court of Appeals for the Fifth Circuit, Case No. 17-60775.\nHaving concluded those discussions, PHMSA and Centurion (collectively, Parties) agree that a\nsettlement of this matter is in the best interests of the Parties and the public and will avoid further\nadministrative proceedings or litigation. The Parties further agree that the entry of this Consent\nAgreement and Order (Agreement) is the most appropriate means of accomplishing that\nobjective.\nI. Procedural History\nOn September 30, 2014, PHMSA issued to Centurion a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice). The Notice alleged that Centurion had\ncommitted violations of 49 C.F.R. §§ 195.404 and 195.442 and proposed an administrative civil\npenalty of $165,600 for the alleged violations. The Notice also proposed ordering certain\ncompliance measures to correct the alleged violations.\nCenturion responded to the Notice by letter dated October 30, 2014, contested the allegations, and\nrequested a hearing. A hearing was held on April 29, 2015, in Houston, Texas, with an attorney\nfrom the Office of Chief Counsel, PHMSA, presiding. After the hearing, Centurion provided\npost-hearing statements for the record on June 26, 2015, and August 14, 2015. Pursuant to\n§ 190.209(b)(7), the Director of the Southwest Region, Office of Pipeline Safety, PHMSA,\nsubmitted a written evaluation of Centurion’s response material on July 9, 2015.\n\n\n\nCPF No. 4-2014-5025\nPage 2\nOn March 31, 2017, pursuant to 49 C.F.R. § 190.213, PHMSA issued a Final Order in this\nproceeding, finding that Centurion committed violations of § 195.404(a) (Item 1) and § 195.442\n(Item 2), as alleged in the Notice. The Final Order assessed a reduced civil penalty of $122,400,\nand ordered corrective action with respect to Item 1, as set forth in the Compliance Order.\nIn accordance with 49 C.F.R. § 190.243, Centurion filed a timely Petition for Reconsideration of\nthe Final Order on April 27, 2017, seeking reconsideration of the violations, civil penalties, and\nCompliance Order. The filing automatically stayed payment of the assessed civil penalty pursuant\nto § 190.243(c), but did not stay the corrective actions required to be completed under the\nCompliance Order. On October 24, 2017, PHMSA issued a Decision on Petition for\nReconsideration, denying the Petition and affirming the Final Order without modification.\nOn November 17, 2017, Centurion filed a petition for review in the United States Court of Appeals\nfor the Fifth Circuit challenging the Associate Administrator's findings of violation, in a case styled\nCenturion Pipeline, L.P. v. TRAN, et al., Agency No. 4-2014-5025, Case No. 17-60775 (Petition).\nUnder the terms and conditions set forth in this Agreement, the Parties have now resolved the\nissues underlying the Notice, Final Order, and Petition, and Centurion will dismiss its Petition as\nprovided in Paragraph 13 of this Agreement.\nII. General Provisions.\n1. Respondent acknowledges that its pipeline system is subject to the jurisdiction of\nthe federal Pipeline Safety Laws, 49 U.S.C. §§ 60101, et seq., and the regulations and\nadministrative orders issued thereunder. As used in this Agreement, the term “pipeline system”\nshall be defined as in 49 C.F.R. Part 195. Respondent acknowledges that it received proper notice\nof PHMSA’s action in this proceeding and that the Notice states claims upon which relief may be\ngranted pursuant to 49 U.S.C. §§ 60101, et seq., and the regulations and orders issued thereunder.\n2. Respondent consents to the issuance of this Agreement and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice or the validity of this Agreement, including all rights to\nadministrative or judicial hearings, reviews, or appeals.\n3. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement, and\nthe Parties acknowledge that there are no representations, agreements, or understandings relating\nto the settlement other than those expressly contained in this Agreement.\n4. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the federal Pipeline Safety Laws, 49 U.S.C. §§ 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA’s right of access, entry, inspection, and information-gathering or its authority to bring\nany enforcement action against Respondent pursuant to the federal Pipeline Safety Laws, the\nregulations and orders issued thereunder.\n\n\n\nCPF No. 4-2014-5025\nPage 3\n5. This Agreement does not waive or modify any federal, state, or local laws or\nregulations that are applicable to Respondent or its pipeline system. This Agreement is not a\npermit, or a modification of any permit, under any federal, state, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nfederal, state, and local laws, regulations and permits.\n6. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not a party to this Agreement.\n7. This Agreement shall apply to and be binding on PHMSA and Centurion, its\nofficers, directors, employees, successors and assigns, including, but not limited to, any\nsubsequent purchaser of the at issue pipelines.\nIII. Amendments to Final Order and Related Provisions\n8. By entry of this Agreement, PHMSA amends the provisions in the Final Order as\nthey relate to Item 1, the alleged violation of 49 C.F.R. § 195.404(a). PHMSA amends Item 1 to a\nWarning Item pursuant to 49 C.F.R. § 190.205. PHMSA’s determination that Centurion violated\n49 C.F.R. § 195.442(c)(5) (Item 2) is not amended in any way, and remains in place. PHMSA\nmay choose to consider Item 1 and Item 2 to be prior findings of violation in future PHMSA\nenforcement actions brought against Centurion.\n9. By entry of this Agreement, PHMSA amends the Final Order to assess a total civil\npenalty of Ninety-Two Thousand Dollars ($92,000.00).\n10. Centurion will pay the civil penalty amount in Paragraph 10 within 30 calendar\ndays of the Effective Date of this Agreement. Payment shall be made by wire transfer through the\nFederal Reserve Communications System (Fedwire), to the account of the U.S. Treasury, as\noutlined in the Final Order.\n11. Centurion stipulates that the facts as alleged in the Notice are true and correct, but\ndenies that it violated the Federal pipeline safety regulations.\n12. the Compliance Order.\nPHMSA finds that Centurion has completed all compliance measures contained in\nIV. Dismissal of Petition for Review\n13. Within three (3) business days after the Effective Date of this Agreement,\nCenturion shall file with the U.S. Court of Appeals for the Fifth Circuit a motion to dismiss the\nPetition pursuant to Rule 42(b) of the Federal Rules of Appellate Procedure, specifying that the\nParties will bear their own costs and fees.\n\n\n\nCPF No. 4-2014-5025\nPage 4\nV. Effective Date\n14. The “Effective Date,” as used herein, is the date on which this Agreement is\nsigned by both Respondent and PHMSA.\nThe Parties hereby agree to all conditions and terms of this Agreement:\nFor PHMSA: For Centurion Pipeline, LP:\n_______________________________ _________________________________\nAlan K. Mayberry _________\nAssociate Administrator for\nPipeline Safety, PHMSA Centurion Pipeline, LP\n\n420145025_NOPV PCP PCO_09302014_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 30, 2014\nBill Boyer\nPresident\nCenturion Pipeline, L.P.\n5 Greenway Plaza, Suite 110\nHouston, TX 77046\nCPF 4-2014-5025\nDear Mr. Boyer:\nOn January 30, 2014, Centurion Pipeline Company, L.P. (Centurion) experienced an excavated related\naccident on its Snyder-to-Post 8-inch line near Snyder, TX. As a result of this accident, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), pursuant to Chapter 601 of 49 United States Code conducted an accident investigation and\nperformed an inspection of your related Damage Prevention practices.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety\nRegulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation(s)\nare:\n1. §195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline systems that\ninclude at least the following information;\n(1) Location and identification of the following pipeline facilities;\n(i) Breakout tanks;\n(ii) Pump stations;\n\n\n\n(iii) Scraper and sphere facilities;\n(iv) Pipeline valves;\n(v) Facilities to which §195.402(c)(9) applies;\n(vi) Rights-of-way; and\n(vii) Safety devices to which §195.428 applies.\n(2) All crossings of public roads, railroads, rivers, buried utilities, and foreign\npipelines.\n(3) The maximum operating pressure of each pipeline.\n(4) The diameter, grade, type and nominal wall thickness of all pipe.\nCenturion did not maintain a current map of the 8-inch Snyder-to-Post crude pipeline system at\nmilepost 3.63, as required by §195.404. On January 30, 2014, Centurion’s incorrectly marked\npipeline, ¼ miles Northwest of the City of Snyder, (Scurry County) Texas, was damaged while\nexcavation was being performed in the area by an excavator. Maps used to temporarily mark the\n8-inch pipeline prior to excavation, indicated the pipeline was south of a parallel 6-inch pipeline,\nalso operated by Centurion. The accurate location of the 8-inch pipeline at milepost 3.63 was\ndiscovered to be north of the 6-inch within the same right-of-way.\nADB-02-03 issued by DOT advised owners and operators to review information and mapping\nsystems for accurate and useable information. The existing mapping data for the 8-inch pipeline\nwas not confirmed to be accurate by Centurion.\n2. §195.442 Damage Prevention Program.\n(c) The damage prevention program required by paragraph (a) of this section must, at a\nminimum:\n(5) Provide for temporary marking of buried pipelines in the area of excavation\nactivity before, as far as practical, the activity begins.\nCenturion failed to provide accurate temporary markings of the Snyder-to-Post 8-inch pipeline at\nMP 3.63 in Scurry County, Texas. Prior to the start of excavation, the Snyder-to-Post line was\ntemporarily marked by Centurion personnel in response to a one-call request received in\nNovember 2013. On January 30, 2014, the pipeline was punctured with excavation equipment by a\nthird-party contractor, causing an estimated 475 barrels to be released to the environment.\nDuring the investigation, it was discovered the pipeline was twice mismarked by personnel. The\nfirst instance occurred during the initial response to the one-call request on November 12, 2013.\nThe initial marking was performed with the assistance of electronic maps and locating equipment\n(Radio Detection RD8000 locator) available to Centurion personnel. The second occurrence took\nplace during excavation activities on January 30, 2014 after field personnel recognized the\nerroneous markings, and attempted to accurately mark the lines by exposing the pipelines. An\nunaccounted for 8-inch pipeline discovered during excavation was incorrectly marked as\nbelonging to Centurion. As the third party contractor was excavating this line, the unmarked\nSnyder-to-Post 8-inch was damaged.\n2\n\n\n\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of violations.\nFor violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per\nviolation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations.\nThe Compliance Officer has reviewed the circumstances and supporting documentation involved in the\nabove probable violation(s) and has recommended that you be preliminarily assessed a civil penalty of\n$165,600 as follows:\nItem number PENALTY\n1 $ 21,600\n2 $144,000\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Centurion Pipeline, L.P. Please refer to\nthe Proposed Compliance Order, which is enclosed and made a part of this Notice.\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. All material you\nsubmit in response to this enforcement action may be made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with\nthe complete original document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30\ndays of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this\nNotice without further notice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 4-2014-5025 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 Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n3\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) proposes to issue to Centurion Pipeline, L.P. (Centurion) a Compliance Order incorporating the\nfollowing remedial requirements to ensure the compliance of Centurion with the pipeline safety\nregulations:\n1. 2. 3. In regard to Item 1 of the Notice pertaining to maps of the Snyder-to-Post pipeline,\nCenturion must revise/update information and mapping systems for the Snyder-to-Post 8-\ninch pipeline from milepost 0 through 5 to accurately reflect the location and identification\nof the pipeline facilities.\nProvide PHMSA with documentation that verifies completion of Item 1 within 90 days\nfollowing the receipt of the Final Order.\nIt is requested (not mandated) that Centurion maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to\nR. M. Seeley, Director, Southwest, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1) total cost\nassociated with preparation/revision of plans, procedures, studies and analyses, and 2) total\ncost associated with replacements, additions and other changes to pipeline infrastructure.\n4\n\n420145025_Final Order_03312017_text.pdf\n\nMarch 31, 2017\nMr. Mike Morgan\nGeneral Manager - Operations\nCenturion Pipeline L.P.\n5 Greenway Plaza, Suite 110\nHouston, TX 77046\nRe: CPF No. 4-2014-5025\nDear Mr. Morgan:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a reduced civil penalty of $122,400, and specifies corrective action that must\nbe completed. The penalty payment terms are set forth in the Final Order. When the civil\npenalty has been paid and the terms of the compliance order completed, as determined by the\nDirector, Southwest Region, this enforcement action will be closed. Service of the Final Order is\nmade pursuant to 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. R. M. Seeley, Director, Southwest Region, PHMSA, OPS\nMr. Ahren Tryon, Tryon Law Firm\n4148 Hockaday Drive, Dallas, Texas 75229\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, )\na subsidiary of Occidental )\nPetroleum Corp., ) CPF No. 4-2014-5025\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nBetween January and June 2014, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an investigation of an accident that occurred January 30, 2014, on a pipeline operated\nby Centurion Pipeline, LP (Centurion or Respondent), in Houston, Texas. Centurion operates\napproximately 2,500 miles of pipeline transporting crude oil in Texas, Oklahoma and New\nMexico.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director) issued to\nRespondent, by letter dated September 30, 2014, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Centurion had violated 49 C.F.R. §§ 195.404 and 195.442 and\nproposed a civil penalty of $165,600 for the alleged violations. The Notice also proposed\nordering certain compliance measures to correct the alleged violations.\nCenturion responded to the Notice by letter dated October 30, 2014 (Response), contested the\nallegations, and requested a hearing. Centurion submitted additional materials on April 20,\n2015. A hearing was held on April, 29, 2015, in Houston, Texas, with an attorney from the\nOffice of Chief Counsel, PHMSA, presiding. After the hearing, Respondent provided post-\nhearing statements for the record by letters dated June 26, 2015 (Closing) and August 14, 2015\n(Supplemental Closing). Pursuant to § 190.209(b)(7), the Director submitted a written\nevaluation of Respondent’s response material on July 9, 2015 (Recommendation).\n1 This information is reported by Centurion for 2015 pursuant to 49 C.F.R. § 195.49.\n\n\n\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. § 195.404(a), which states in\nrelevant part:\n§195.404 Maps and records.\n(a) Each operator shall maintain current maps and records of its pipeline\nsystems that include at least the following information;\n(1) Location and identification of the following pipeline facilities;\n(i) Breakout tanks;\n(ii) Pump stations;\n(iii) Scraper and sphere facilities;\n(iv) Pipeline valves;\n(v) Facilities to which §195.402(c)(9) applies;\n(vi) Rights-of-way; and\n(vii) Safety devices to which §195.428 applies.\n(2) All crossings of public roads, railroads, rivers, buried utilities, and\nforeign pipelines.\n(3) The maximum operating pressure of each pipeline.\n(4) The diameter, grade, type and nominal wall thickness of all pipe.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.404(a) by failing to maintain\ncurrent maps of its pipeline systems. Specifically, the Notice alleged that Centurion did not\nmaintain a current map of the eight-inch Snyder-to-Post crude pipeline. On January 30, 2014,\nCenturion’s pipeline suffered third-party damage during excavation. Maps used by Centurion to\ntemporarily mark the eight-inch pipeline prior to excavation incorrectly showed the pipeline was\nsouth of a parallel six-inch pipeline also operated by Centurion. The correct location of the\neight-inch pipeline was discovered to be north of the six-inch line.\nRespondent argued that the alleged violation should be withdrawn because OPS did not apply a\nproper standard for determining compliance with § 195.404. In particular, Respondent noted that\nthe regulation requires maps to be “current,” but the Notice alleged Respondent’s maps were not\n“accurate.” Respondent argued that its maps were indeed current. For example, when\nRespondent acquired the pipelines in 2007, the Company used in-line inspection data to create\nthe maps and also purchased geospatial data. The pipelines then underwent “mapping data\naccuracy verification via an internal inspection tool equipped with an inertial mapping unit.”2\nCenturion also planned to use information from the excavation on January 30, 2014, to update its\nsystem maps.\nRespondent also contended that its maps were far more accurate than the standard for accuracy\nthat applies to the submission of location information in the National Pipeline Mapping\n2 Closing, at 10.\n\n\n\nSystem (NPMS). The NPMS, Respondent argued, requires accuracy within 500 feet, while\nRespondent’s maps were only off by eight feet. Respondent argued that it should not be\npenalized for using “best practices” to maintain its system maps.3 Respondent also asserted that\nit was under no obligation to map the Company’s six-inch line that was near the damaged eight-\ninch line because the six-inch line was not subject to the pipeline safety regulations in Part 195.\nAt the Hearing, the Director explained that Respondent’s map depicted the eight-inch pipeline in\nthe wrong place. Specifically, the map incorrectly depicted the eight-inch pipeline in relation to\nthe six-inch unregulated pipeline. This is what the Notice meant by alleging the maps were not\n“accurate.” The Director also noted that an Advisory Bulletin previously issued by PHMSA\nadvises operators that documents, including maps, used in the performance of operations\nrequired under Part 195 shou","truncated":true,"body_characters":62478}