{"operation":"document","citation":"CPF 420167003","title":"CHEVRON U.S.A. INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-08-29","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(l)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420167003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420167003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420167003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420167003","body":"Notice of Probable Violation involving CHEVRON U.S.A. INC. PHMSA's enforcement data identifies the cited regulation as 195.452(l)(1). The case was opened on 2016-08-29 and is reported as closed as of 2016-12-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420167003_Final Order_12012016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420167003/420167003_Final%20Order_12012016.pdf\n\n420167003_Final Order_12012016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420167003/420167003_Final%20Order_12012016_text.pdf\n\n420167003_NOPV PCO_08292016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420167003/420167003_NOPV%20PCO_08292016.pdf\n\n420167003_NOPV PCO_08292016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420167003/420167003_NOPV%20PCO_08292016_text.pdf\n\n420167003_Final Order_12012016_text.pdf\n\nDecember 1, 2016\nMr. John S. Watson\nChairman and Chief Executive Officer\nChevron U.S.A., Inc.\n100 Northpark Blvd.\nCovington, LA 70433\nRe: CPF No. 4-2016-7003\nDear Mr. Watson:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and finds that Chevron U.S.A., Inc. has completed the actions specified in the Notice to\ncomply with the pipeline safety regulations. Therefore, this case is now closed. Service of the\nFinal 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,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Rodrick M. Seeley, Director, Southwest Region, OPS\nMr. Michael Illanne, Vice President, Chevron U.S.A., Inc.\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 U.S.A., Inc., ) CPF No. 4-2016-7003\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May 23, 2016, through June 1, 2016, 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 on-site pipeline safety inspection of the records of Chevron U.S.A., Inc.\n(Chevron or Respondent) in Covington, Louisiana, and the facilities in Port Fourchon, Louisiana.\nChevron transports both crude oil and natural gas from platforms in the Gulf of Mexico to an\nonshore location in Louisiana.1 The portion of Chevron’s pipeline system in the Gulf of Mexico\nsubject to Department of Transportation (DOT) regulations is approximately 47 total miles.2\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated August 29, 2016, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Chevron had violated 49 C.F.R. § 195.452(l)(1) and proposed ordering Respondent\nto take certain measures to correct the alleged violation.\nChevron responded to the Notice by letter dated September 28, 2016 (Response). The company\ndid not contest the allegation of violation but provided information concerning the corrective\nactions it had taken and submitted copies of its revised procedures. Respondent did not request a\nhearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Chevron did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (Aug. 17, 2016) (on file with PHMSA), at 1.\n2 Id.\n\n\n\nCPF No. 4-2016-7003\nPage 2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(l)(1), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(l) What records must an operator keep to demonstrate compliance?\n(1) An operator must maintain, for the useful life of the pipeline,\nrecords that demonstrate compliance with the requirements of this subpart.\nAt a minimum, an operator must maintain the following records for review\nduring an inspection:\n(i) A written integrity management program in accordance with\nparagraph (b) of this section.\n(ii) Documents to support the decisions and analyses, including any\nmodifications, justifications, deviations and determinations made,\nvariances, and actions taken, to implement and evaluate each element of the\nintegrity management program listed in paragraph (f) of this section.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(l)(1) by failing to maintain\ndocuments to support the decisions and analyses, including any modifications, justifications,\ndeviations and determinations made, variances, and actions taken, to implement and evaluate\neach element of the integrity management program (IMP) listed in § 195.452(f). Specifically,\nthe Notice alleged that on two separate instances, Chevron could not produce documentation\ndemonstrating compliance with the IMP concerning periodic evaluations and overall program\neffectiveness.3 First, Chevron could not produce a record demonstrating preventative and\nmitigative measures were implemented in locations designated as “could affect” high\nconsequence areas. Chevron’s IMP Section 7.03 requires documentation of the justification of\nthese actions. Second, Chevron could not produce requested copies of the evaluation report\ndetermining the overall performance effectiveness of its IMP. Chevron’s IMP Section 9.02\nrequires annual completion of the report.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.452(l)(1) by failing to maintain\ndocuments to support the decisions and analyses, including any modifications, justifications,\ndeviations and determinations made, variances, and actions taken, to implement and evaluate\neach element of the IMP listed in § 195.452(f).\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49\nC.F.R. § 195.452(l)(1). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\n3 Notice of Probable Violation and Proposed Compliance Order (Notice), at 2.\n\n\n\nCPF No. 4-2016-7003\nPage 3\ncomply with the applicable safety standards established under chapter 601. The Director\nindicates that Respondent has taken the following actions specified in the proposed compliance\norder:\n1. With respect to the violation of § 195.452(l)(1) (Item 1), Respondent has\nidentified all preventative and mitigative actions considered and implemented\nfollowing the latest assessment on all PHMSA-regulated segments under the DOT\nHazardous Liquid IMP. Chevron has documented these activities in a manner\nrequired by the IMP, and provided to the Director a list of all recommended\npreventative measures including a timeline for completion, current status,\ncompletion date, and any justification for those identified measures that were\ndeemed not cost effective.\n2. With respect to the violation of § 195.452(l)(1) (Item 1), Respondent has provided\nto the Director a copy of the evaluation report required by Section 9.02 of the IMP\npertaining to the annual evaluation for the two most recent calendar years (2014\nand 2015).\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nDecember 1, 2016\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nActing Associate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":8091}