{"operation":"document","citation":"CPF 420185014","title":"WESTERN REFINING LOGISTICS, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-07-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(g).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185014.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185014.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185014","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420185014","body":"Notice of Probable Violation involving WESTERN REFINING LOGISTICS, LP. PHMSA's enforcement data identifies the cited regulation as 195.452(g). The case was opened on 2018-07-20 and is reported as closed as of 2019-07-12. Proposed civil penalty: $50,100. Assessed civil penalty: $50,100. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420185014_Final Order_07122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185014/420185014_Final%20Order_07122019.pdf\n\n420185014_Final Order_07122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185014/420185014_Final%20Order_07122019_text.pdf\n\n420185014_NOPV PCP PCO_07202018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185014/420185014_NOPV%20PCP%20PCO_07202018.pdf\n\n420185014_NOPV PCP PCO_07202018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185014/420185014_NOPV%20PCP%20PCO_07202018_text.pdf\n\n420185014_Operator Response to Notice and Request for Time Extension_08242018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185014/420185014_Operator%20Response%20to%20Notice%20and%20Request%20for%20Time%20Extension_08242018.pdf\n\n420185014_Final Order_07122019_text.pdf\n\nJuly 12, 2019\nMr. Gary R. Heminger\nChairman and Chief Executive Officer\nMarathon Petroleum Corporation\n539 South Main Street\nFindlay, Ohio 45840\nRe: CPF No. 4-2018-5014\nDear Mr. Heminger:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nWestern Refining Pipeline, LLC (Western). It makes a finding of violation and assesses a civil\npenalty of $50,100. This is to acknowledge receipt of payment of the full penalty amount, by\nwire transfer, dated March 27, 2019. It also finds that Western has completed the actions\nspecified in the Notice to comply with the pipeline safety regulations. Therefore, this case is\nnow closed. 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. Stoney Vining, Senior Counsel, Andeavor Logistics, LP, 19100 Ridgewood\nParkway, San Antonio, Texas 78259\nMr. Aaron W. Martinez, Director, Compliance-Logistics, Andeavor Logistics, LP, 19100\nRidgewood Parkway, San Antonio, Texas 78259\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 )\nWestern Refining Pipeline, LLC, ) CPF No. 4-2018-5014\na subsidiary of Marathon Petroleum Corp., )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom March 7 through September 28, 2017, pursuant to 49 U.S.C. § 60117, representatives of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Western\nRefining Pipeline, LLC (Western or Respondent) in Texas and New Mexico. Western was\nacquired by Tesoro Corporation on June 1, 2018, and the two companies combined to become\nAndeavor Logistics, LP (Andeavor),1 which is owned by Marathon Petroleum Corporation\n(Marathon).2 Western operates the Texas-New Mexico and Bisti Station-Gallup Pipeline\nsystems.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated July 20, 2018, 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 Western had violated 49 C.F.R. § 195.452(g) and proposed\nassessing a civil penalty of $50,100 for the alleged violation. The Notice also proposed ordering\nRespondent to take certain measures to correct the alleged violation.\nAndeavor, on behalf of Western, responded to the Notice by letter dated August 24, 2018\n(Response). The company did not contest the allegation of violation but provided an explanation\nof its actions, requested that the proposed civil penalty be reduced, and requested additional time\nto comply with the proposed compliance order. Respondent did not request a hearing and\ntherefore has waived its right to one.\nThrough a wire transfer dated March 27, 2019, Andeavor paid the proposed civil penalty of\n$50,100. In accordance with 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate\n1 Western Refining Pipeline, LLC website, available at https://jobs.wnr.com/ (last accessed May 24, 2019).\n2 Andeavor Logistics, LP website, available at http://www.andeavor.com/# (last accessed May 24, 2019).\n\n\n\nCPF No. 4-2018-5014\nPage 2\nAdministrator to make a finding of violation and to issue this final order without further\nproceedings.\nFINDING OF VIOLATION\nIn its Response, Andeavor did not contest the allegation 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. § 195.452(g), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(g) What is an information analysis? In periodically evaluating the\nintegrity of each pipeline segment (paragraph (j) of this section), an operator\nmust analyze all available information about the integrity of the entire\npipeline and the consequences of a failure. This information includes:\n(1) Information critical to determining the potential for, and preventing,\ndamage due to excavation, including current and planned damage\nprevention activities, and development or planned development along the\npipeline segment;\n(2) Data gathered through the integrity assessment required under this\nsection;\n(3) Data gathered in conjunction with other inspections, tests,\nsurveillance and patrols required by this Part, including, corrosion control\nmonitoring and cathodic protection surveys; and\n(4) Information about how a failure would affect the high consequence\narea, such as location of the water intake.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(g) by failing to demonstrate\nthat the company had sufficiently evaluated the integrity of its pipeline system and the\nconsequences of failure on high-consequence areas (HCAs). Specifically, the Notice alleged that\nWestern failed to analyze all available information concerning the integrity of its entire pipeline\nand the consequences of a failure, including a failure to: integrate all relevant threats such as\nthird-party damage; account for changes in physical characteristics or operating conditions of\ndifferent pipeline segments; and provide a risk-comparison study showing how threats had been\nmitigated or eliminated after the company employed preventative and mitigative measures.\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(g) by failing to analyze all\navailable information about the integrity of the entire pipeline and the consequences of failure on\nHCAs.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\n\n\n\nCPF No. 4-2018-5014\nPage 3\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.3 In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $50,100 for the violation cited above.\nItem 1: The Notice proposed a civil penalty of $50,100 for Respondent’s violation of 49 C.F.R.\n§ 195.452(g), for failing to analyze all available information about the integrity of the entire\npipeline and the consequences of failure on HCAs. Respondent initially requested a reduction in\nthe amount of the civil penalty in its Response, arguing that Western did conduct an analysis\nunder 49 C.F.R. § 195.452(g) and explaining that Andeavor did not have any prior relationship\nwith Western prior to its recent acquisition of the company. Respondent offered no evidence that\ndocumented Western’s alleged information analysis was conducted prior to PHMSA’s\ninspection. Further, the fact that Andeavor acquired Western after PHMSA’s inspection does not\nabsolve either entity from culpability for violations of the Pipeline Safety Regulations.\nRespondent subsequently paid the civil penalty in full, which serves to withdraw its request for\npenalty reduction pursuant to 49 C.F.R. § 190.208.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $50,100 for violation of 49 C.F.R. § 195.452(g), which amount\nwas paid in full by wire transfer on March 27, 2019.\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(g). 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. 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(g) (Item 1), Respondent has provided\ndocumentation sufficient to demonstrate that a comprehensive analysis of all\ninformation concerning the integrity of its pipeline system and the consequences of a\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,\n83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).\n\n\n\nCPF No. 4-2018-5014\nPage 4\nfailure was thoroughly performed after PHMSA’s inspection.\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\n49 C.F.R. § 190.5.\nJuly 12, 2019\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420185014_NOPV PCP PCO_07202018_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 20, 2018\nDon J. Sorensen\nSenior Vice President, Logistics\nWestern Refining Pipeline, LLC\n19100 Ridgewood Parkway\nSan Antonio, Texas 78259\nCPF 4-2018-5014\nDear Mr. Sorensen:\nFrom March 7, 2017 to September 28, 2017, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Western Refining Pipelines, LLC (Western Refining) procedures for the Texas-New\nMexico and Bisti Station-Gallup Pipeline Systems.\nAs a result of the inspection, it is alleged that you have committed probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n§195.452 Pipeline integrity management in high consequence areas.\n(g) What is an information analysis? In periodically evaluating the integrity of each pipeline\nsegment (paragraph (j) of this section), an operator must analyze all available information\nabout the integrity of the entire pipeline and the consequences of a failure. This information\nincludes:\n(1) Information critical to determining the potential for, and preventing, damage due to\nexcavation, including current and planned damage prevention activities, and development\n\n\n\nor planned development along the pipeline segment;\n(2) Data gathered through the integrity assessment required under this section;\n(3) Data gathered in conjunction with other inspections, tests, surveillance and patrols\nrequired by this Part, including, corrosion control monitoring and cathodic protection\nsurveys; and\n(4) Information about how a failure would affect the high consequence area, such as location\nof the water intake.\nWestern Refining failed to demonstrate that a comprehensive analysis of all information\nconcerning the integrity of their pipeline system and the consequence of a failure were thoroughly\nperformed.\nDuring PHMSA’s 2017 inspection of the Integrity Management Plan at Western Refining’s\nBloomfield, NM office, PHMSA requested that Western Refining provide any information or risk\nanalysis of completed by Western Refining.\nBased on the information provided, PHMSA identified that Western Refining failed to analyze all\navailable information concerning the integrity of the entire pipeline and the consequences of a\nfailure:\n Western refining failed to appropriately integrate all of the relevant threats such as third\nparty damage, internal corrosion, external corrosion and flood damage.\n Western Refining did not account for either changes in physical characteristics or operating\nconditions of different pipeline segments throughout their pipeline system.\n Western Refining failed to provide a risk comparisons study showing how threats had been\neliminated and/or reduced from higher to lower risk after preventive and mitigative\nmeasures had been employed.\nTherefore, Western Refining’s Integrity Management Plan failed to demonstrate an information\nanalysis that considers all available information relative to the integrity of entire pipeline system\nto ensure compliance with §195.452(g).\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$209,002 per violation per day the violation persists up to a maximum of $2,090,022 for a related\nseries of violations. The Compliance Officer has reviewed the circumstances and supporting\ndocumentation involved in the above probable violations and has recommended that you be\npreliminarily assessed a civil penalty of $50,100.\n2\n\n\n\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\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF-4-2018-5014 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\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\nAdministration (PHMSA) proposes to issue to Western Refining Pipelines, LLC a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Western\nRefining Pipelines, LLC with the pipeline safety regulations:\n1. In regard to Item Number 1 of the Notice pertaining to Western Refining’s failure to\nprovide documentation sufficient to demonstrate that a comprehensive analysis of all\ninformation concerning the integrity of their pipeline system and the consequences of\na failure were thoroughly performed, Western Refining shall develop, perform and\nimplement an information analysis to ensure compliance with §195.452(g).\n2. Provide PHMSA Southwest Region with documentation that verifies completion of\nItem Number 1 within 60 days following the receipt of Final Order.\n3. It is requested (not mandated) that Western Refining Pipelines, LLC maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to the Regional Director, Southwest, Pipeline\nand Hazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\n4","truncated":false,"body_characters":17954}