{"operation":"document","citation":"CPF 420175011","title":"SUNOCO PIPELINE L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-04-06","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.50(a), 195.50(d), 195.52(a)(1), 195.52(a)(2), 195.54(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175011.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175011.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420175011","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420175011","body":"Notice of Probable Violation involving SUNOCO PIPELINE L.P.. PHMSA's enforcement data identifies the cited regulations as 195.50(a),  195.50(d),  195.52(a)(1),  195.52(a)(2),  195.54(a). The case was opened on 2017-04-06 and is reported as closed as of 2018-12-17. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420175011_Closure Letter_12172018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Closure%20Letter_12172018.pdf\n\n420175011_Closure Letter_12172018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Closure%20Letter_12172018_text.pdf\n\n420175011_Final Order_06152018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Final%20Order_06152018.pdf\n\n420175011_Final Order_06152018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Final%20Order_06152018_text.pdf\n\n420175011_NOPV PCO_04062017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_NOPV%20PCO_04062017.pdf\n\n420175011_NOPV PCO_04062017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_NOPV%20PCO_04062017_text.pdf\n\n420175011_Final Order_06152018_text.pdf\n\nJune 15, 2018\nMr. Kelcy L. Warren\nChief Executive Officer\nEnergy Transfer Partners, LP\n8111 Westchester Drive\nDallas, Texas 75225\nRe: CPF No. 4-2017-5011\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by your subsidiary, Sunoco Pipeline, LP, to\ncomply with the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is effective upon the date of mailing, as\nprovided under 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: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. David R. Chalson, Sr. Vice President, Operations, Sunoco Pipeline, LP, 4041 Market\nStreet, Aston, Pennsylvania 19014\nMr. Ryan Coffey, Executive VP of Operations, Energy Transfer Partners, 1 Fluor Daniel\nDrive, Bldg. A, Level 3, Sugar Land, Texas 77478\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 )\nSunoco Pipeline, LP, ) CPF No. 4-2017-5011\na subsidiary of Energy Transfer Partners, LP, )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nPursuant to 49 U.S.C. § 60117, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), initiated an investigation of an accident involving\nSunoco Pipeline, LP’s (Sunoco or Respondent) Nederland Terminal (Terminal) in Nederland,\nTexas. On August 12, 2016, OPS Southwest Region received a courtesy call regarding an\naccident that had occurred at the Terminal, which is located at 2300 Twin City Highway in\nNederland, Texas. Sunoco is a subsidiary of Energy Transfer Partners, LP.1\nThe investigation revealed that Sunoco and its contractors were performing pipeline\nmodifications at the Terminal, when a release and ignition of crude oil occurred and seven\npeople were injured. The Terminal, located on the Sabine-Neches waterway between Beaumont\nand Port Arthur, Texas, is a large marine terminal providing storage and distribution services for\nrefiners and other large transporters of crude oil and natural gas liquids. The Terminal receives,\nstores, and distributes crude oil and bunker oils (used for fueling ships and other marine vessels),\nand has a total crude-oil storage capacity of approximately 26 million barrels in approximately\n150 aboveground storage tanks with individual capacities of up to 660,000 barrels.2\nAs a result of the investigation, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 6, 2017, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Sunoco had violated 49 C.F.R. §§ 195.52(a) and 195.54(a) and proposed ordering\nRespondent to take certain measures to correct the alleged violations.\n1 According to PHMSA records, Sunoco Pipeline, LP, operates Sunoco Partners Marketing & Terminals’ Nederland\nTerminal facility. However, in its Response, Energy Transfer Partners stated that “[Sunoco Partners Marketing &\nTerminals] is a subsidiary of Energy Transfer Partners (ETP) and is the owner and operator of the terminal facility in\nNederland, Texas.” Sunoco Pipeline, LP, is also a subsidiary of ETP.\n2 See http://www.sunocologistics.com/Customers/Business-Lines/Crude-Oil/253/ (last visited Apr. 3, 2018).\n\n\n\nCPF No. 4-2017-5011\nPage 2\nAfter being granted several time extensions by the Region, Energy Transfer Partners, LP,\nresponded to the Notice on behalf of Respondent by letter dated September 6, 2017 (Response).\nThe company did not contest the allegations of violation but provided information concerning\nthe corrective actions it had taken and agreed to complete the proposed compliance actions.\nRespondent did not request a hearing and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, Sunoco did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.52(a), which states, in\nrelevant part:\n§ 195.52 Immediate notice of certain accidents.\n(a) Notice requirements. At the earliest practicable moment following\ndiscovery of a release of the hazardous liquid or carbon dioxide transported\nresulting in an event described in §195.50, the operator of the system must\ngive notice, in accordance with paragraph (b) of this section, of any failure\nthat:\n(1) Caused a death or a personal injury requiring hospitalization;\n(2) Resulted in either a fire or explosion not intentionally set by the\noperator;…\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.52(a) by failing to give notice, at\nthe earliest practicable moment following discovery of a release of a hazardous liquid being\ntransported and resulting in an event described in § 195.50, of any failure that: (1) caused a death\nor a personal injury requiring hospitalization; or (2) resulted in either a fire or explosion not\nintentionally set by the operator. Specifically, the Notice alleged that Sunoco failed to provide\nimmediate notice to the National Response Center of an accident that occurred on August 12,\n2016, at the Terminal. The accident involved a release of crude oil, ignition of the crude oil, and\nseven injuries, four of which required in-patient hospitalization. While a courtesy call was made\nto PHMSA regarding the accident, the National Response Center had no record of a report being\nfiled by the operator for the accident.\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. § 195.52(a) by failing to give notice,\nat the earliest practicable moment following discovery of a release of a hazardous liquid being\ntransported and resulting in an event described in § 195.50, of any failure that: (1) caused a death\nor a personal injury requiring hospitalization; or (2) resulted in either a fire or explosion not\nintentionally set by the operator.\n\n\n\nCPF No. 4-2017-5011\nPage 3\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.54(a), which states:\n§ 195.54 Accident reports.\n(a) Each operator that experiences an accident that is required to be\nreported under § 195.50 must, as soon as practicable, but not later than 30\ndays after discovery of the accident, file an accident report on DOT Form\n7000-1.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.54(a) by failing to file an accident\nreport on DOT Form 7000-1 as soon as practicable, but no later than 30 days, after discovery of a\nreportable accident. Specifically, the Notice alleged that Sunoco failed to submit a written DOT\nForm 7000-1 for an accident that occurred on August 12, 2016, at the Terminal in Nederland,\nTexas. Section 195.50 requires an accident report for each failure on a pipeline system in which\nthere is a release of the hazardous liquid transported and resulting in an explosion or fire not\nintentionally set by the operator or personal injury necessitating hospitalization. The August 12,\n2016 accident involved a release of crude oil, ignition of the crude oil, and injuries requiring in-\npatient hospitalization.\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. § 195.54(a) by failing to file an\naccident report on DOT Form 7000-1 as soon as practicable, but no later than 30 days, after\ndiscovery of a reportable accident.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 2 in the Notice for violation of\n49 C.F.R. § 195.54(a). 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\ncomply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations:\n1. With respect to the violation of § 195.54(a) (Item 2), Respondent has submitted\nForm 7000-1; however, Sunoco must still provide to PHMSA any incident\ninvestigation report(s) completed by Respondent and identify any corrective action(s)\ntaken to date to prevent recurrence of a similar event, within 10 calendar days of the\nissuance of this Final Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\n\n\n\nCPF No. 4-2017-5011\nPage 4\nIt is requested that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay. The\nterms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nJune 15, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420175011_Closure Letter_12172018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 17, 2018\nGreg McIlwain\nSenior Vice President of Operations\nSunoco Partners Marketing & Terminals\n1300 Main Street\nHouston, Texas 77002\nCPF 4-2017-5011\nDear Mr. McIlwain:\nOn June 15, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Sunoco Pipeline, LP a Final Order in the above-referenced case. This Order included a\nCompliance Order. Based on our review of the documentation you provided, 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 Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":13038}