# SUNOCO PIPELINE L.P. — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.50(a), 195.50(d), 195.52(a)(1), 195.52(a)(2), 195.54(a).
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- **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.

Official case documents:

420175011_Closure Letter_12172018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Closure%20Letter_12172018.pdf

420175011_Closure Letter_12172018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Closure%20Letter_12172018_text.pdf

420175011_Final Order_06152018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Final%20Order_06152018.pdf

420175011_Final Order_06152018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_Final%20Order_06152018_text.pdf

420175011_NOPV PCO_04062017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_NOPV%20PCO_04062017.pdf

420175011_NOPV PCO_04062017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420175011/420175011_NOPV%20PCO_04062017_text.pdf

420175011_Final Order_06152018_text.pdf

June 15, 2018
Mr. Kelcy L. Warren
Chief Executive Officer
Energy Transfer Partners, LP
8111 Westchester Drive
Dallas, Texas 75225
Re: CPF No. 4-2017-5011
Dear Mr. Warren:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by your subsidiary, Sunoco Pipeline, LP, to
comply with the pipeline safety regulations. When the terms of the compliance order have been
completed, as determined by the Director, Southwest Region, this enforcement action will be
closed. Service of the Final Order by certified mail is effective upon the date of mailing, as
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. David R. Chalson, Sr. Vice President, Operations, Sunoco Pipeline, LP, 4041 Market
Street, Aston, Pennsylvania 19014
Mr. Ryan Coffey, Executive VP of Operations, Energy Transfer Partners, 1 Fluor Daniel
Drive, Bldg. A, Level 3, Sugar Land, Texas 77478
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 )
Sunoco Pipeline, LP, ) CPF No. 4-2017-5011
a subsidiary of Energy Transfer Partners, LP, )
)
)
)
Respondent. )
__________________________________________)
FINAL ORDER
Pursuant to 49 U.S.C. § 60117, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS), initiated an investigation of an accident involving
Sunoco Pipeline, LP’s (Sunoco or Respondent) Nederland Terminal (Terminal) in Nederland,
Texas. On August 12, 2016, OPS Southwest Region received a courtesy call regarding an
accident that had occurred at the Terminal, which is located at 2300 Twin City Highway in
Nederland, Texas. Sunoco is a subsidiary of Energy Transfer Partners, LP.1
The investigation revealed that Sunoco and its contractors were performing pipeline
modifications at the Terminal, when a release and ignition of crude oil occurred and seven
people were injured. The Terminal, located on the Sabine-Neches waterway between Beaumont
and Port Arthur, Texas, is a large marine terminal providing storage and distribution services for
refiners and other large transporters of crude oil and natural gas liquids. The Terminal receives,
stores, and distributes crude oil and bunker oils (used for fueling ships and other marine vessels),
and has a total crude-oil storage capacity of approximately 26 million barrels in approximately
150 aboveground storage tanks with individual capacities of up to 660,000 barrels.2
As a result of the investigation, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated April 6, 2017, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that Sunoco had violated 49 C.F.R. §§ 195.52(a) and 195.54(a) and proposed ordering
Respondent to take certain measures to correct the alleged violations.
1 According to PHMSA records, Sunoco Pipeline, LP, operates Sunoco Partners Marketing & Terminals’ Nederland
Terminal facility. However, in its Response, Energy Transfer Partners stated that “[Sunoco Partners Marketing &
Terminals] is a subsidiary of Energy Transfer Partners (ETP) and is the owner and operator of the terminal facility in
Nederland, Texas.” Sunoco Pipeline, LP, is also a subsidiary of ETP.
2 See http://www.sunocologistics.com/Customers/Business-Lines/Crude-Oil/253/ (last visited Apr. 3, 2018).



CPF No. 4-2017-5011
Page 2
After being granted several time extensions by the Region, Energy Transfer Partners, LP,
responded to the Notice on behalf of Respondent by letter dated September 6, 2017 (Response).
The company did not contest the allegations of violation but provided information concerning
the corrective actions it had taken and agreed to complete the proposed compliance actions.
Respondent did not request a hearing and therefore has waived its right to one.
FINDINGS OF VIOLATION
In its Response, Sunoco did not contest the allegations 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. § 195.52(a), which states, in
relevant part:
§ 195.52 Immediate notice of certain accidents.
(a) Notice requirements. At the earliest practicable moment following
discovery of a release of the hazardous liquid or carbon dioxide transported
resulting in an event described in §195.50, the operator of the system must
give notice, in accordance with paragraph (b) of this section, of any failure
that:
(1) Caused a death or a personal injury requiring hospitalization;
(2) Resulted in either a fire or explosion not intentionally set by the
operator;…
The Notice alleged that Respondent violated 49 C.F.R. § 195.52(a) by failing to give notice, at
the earliest practicable moment following discovery of a release of a hazardous liquid being
transported and resulting in an event described in § 195.50, of any failure that: (1) caused a death
or a personal injury requiring hospitalization; or (2) resulted in either a fire or explosion not
intentionally set by the operator. Specifically, the Notice alleged that Sunoco failed to provide
immediate notice to the National Response Center of an accident that occurred on August 12,
2016, at the Terminal. The accident involved a release of crude oil, ignition of the crude oil, and
seven injuries, four of which required in-patient hospitalization. While a courtesy call was made
to PHMSA regarding the accident, the National Response Center had no record of a report being
filed by the operator for the accident.
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. § 195.52(a) by failing to give notice,
at the earliest practicable moment following discovery of a release of a hazardous liquid being
transported and resulting in an event described in § 195.50, of any failure that: (1) caused a death
or a personal injury requiring hospitalization; or (2) resulted in either a fire or explosion not
intentionally set by the operator.



CPF No. 4-2017-5011
Page 3
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.54(a), which states:
§ 195.54 Accident reports.
(a) Each operator that experiences an accident that is required to be
reported under § 195.50 must, as soon as practicable, but not later than 30
days after discovery of the accident, file an accident report on DOT Form
7000-1.
The Notice alleged that Respondent violated 49 C.F.R. § 195.54(a) by failing to file an accident
report on DOT Form 7000-1 as soon as practicable, but no later than 30 days, after discovery of a
reportable accident. Specifically, the Notice alleged that Sunoco failed to submit a written DOT
Form 7000-1 for an accident that occurred on August 12, 2016, at the Terminal in Nederland,
Texas. Section 195.50 requires an accident report for each failure on a pipeline system in which
there is a release of the hazardous liquid transported and resulting in an explosion or fire not
intentionally set by the operator or personal injury necessitating hospitalization. The August 12,
2016 accident involved a release of crude oil, ignition of the crude oil, and injuries requiring in-
patient hospitalization.
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. § 195.54(a) by failing to file an
accident report on DOT Form 7000-1 as soon as practicable, but no later than 30 days, after
discovery of a reportable accident.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 2 in the Notice for violation of
49 C.F.R. § 195.54(a). 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. Pursuant to the
authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the
following actions to ensure compliance with the pipeline safety regulations applicable to its
operations:
1. With respect to the violation of § 195.54(a) (Item 2), Respondent has submitted
Form 7000-1; however, Sunoco must still provide to PHMSA any incident
investigation report(s) completed by Respondent and identify any corrective action(s)
taken to date to prevent recurrence of a similar event, within 10 calendar days of the
issuance of this Final Order.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.



CPF No. 4-2017-5011
Page 4
It is requested that Respondent maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to the Director. It is
requested that these costs be reported in two categories: (1) total cost associated with
preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for
each day the violation continues or in referral to the Attorney General for appropriate relief in a
district court of the United States.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this
Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and
meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective
action, remain in effect unless the Associate Administrator, upon request, grants a stay. The
terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R.
§ 190.5.
June 15, 2018
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

420175011_Closure Letter_12172018_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
December 17, 2018
Greg McIlwain
Senior Vice President of Operations
Sunoco Partners Marketing & Terminals
1300 Main Street
Houston, Texas 77002
CPF 4-2017-5011
Dear Mr. McIlwain:
On June 15, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to Sunoco Pipeline, LP a Final Order in the above-referenced case. This Order included a
Compliance Order. Based on our review of the documentation you provided, it has been
determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
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