{"operation":"document","citation":"CPF 420185016","title":"HARVEST MIDSTREAM COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-08-31","effective_on":null,"summary":"CLOSED notice of probable violation citing 194.107(c)(1)(ix), 194.121(a), 195.402(c)(13), 195.402(c)(5), 195.402(d)(5), 195.403(b), 195.403(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185016.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185016.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185016","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420185016","body":"Notice of Probable Violation involving HARVEST MIDSTREAM COMPANY. PHMSA's enforcement data identifies the cited regulations as 194.107(c)(1)(ix),  194.121(a),  195.402(c)(13),  195.402(c)(5),  195.402(d)(5),  195.403(b),  195.403(c). The case was opened on 2018-08-31 and is reported as closed as of 2020-02-04. Proposed civil penalty: $88,300. Assessed civil penalty: $88,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420185016_Closure Letter_02042020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_Closure%20Letter_02042020.pdf\n\n420185016_Closure Letter_02042020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_Closure%20Letter_02042020_text.pdf\n\n420185016_Final Order_09122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_Final%20Order_09122019.pdf\n\n420185016_Final Order_09122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_Final%20Order_09122019_text.pdf\n\n420185016_NOPV PCP PCO_08312018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_NOPV%20PCP%20PCO_08312018.pdf\n\n420185016_NOPV PCP PCO_08312018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_NOPV%20PCP%20PCO_08312018_text.pdf\n\n420185016_Operator Response to Notice_12182018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185016/420185016_Operator%20Response%20to%20Notice_12182018.pdf\n\n420185016_NOPV PCP PCO_08312018_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 31, 2018\nSteve Jacobs\nPresident\nHarvest Pipeline Company\n1111 Travis Street\nHouston, TX 77002\nCPF 4-2018-5016\nDear Mr. Jacobs:\nBetween November 3, 2016 and January 27, 2017, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code inspected your Eugene Island Facility in New Iberia, LA and the\nSouthwest Pass 24 Oil Terminal Facility in Venice, LA and the Harvest Pipeline Company records\nin Houston, TX.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violations are:\n1. §194.107 General response plan requirements\n(c) Each response plan must include:\n(1) A core plan consisting of-\n(ix) Drill program-an operator will satisfy the requirement for a drill\nprogram by following the National Preparedness for Response Exercise\nProgram (PREP) guidelines. An operator choosing not to follow PREP\n\n\n\nguidelines must have a drill program that is equivalent to PREP. The\noperator must describe the drill program in the response plan and OPS\nwill determine if the program is equivalent to PREP.\nHarvest Pipeline Company failed to follow their Facility Response Plan Section 1 Introduction and\nSection 4 Evaluation. Harvest Pipeline’s drill program references the PREP Guidelines; however,\ntheir records demonstrate that they did not follow the Guidelines when they conducted their drills.\nRecords provided by Harvest did not consistently document core components exercised, lessons\nlearned, or signatures of authorized representatives.\n2. §194.121 Response plan review and update procedures\n(a) Each operator shall update its response plan to address new or different operating\nconditions or information. In addition, each operator shall review its response plan\nin full at least every 5 years from the date of the last submission or the last approval\nas follows:\n(1) For substantial harm plans, an operator shall resubmit its response plan\nto OPS every 5 years from the last submission date.\n(2) For significant and substantial harm plans, an operator shall resubmit\nevery 5 years from the last approval date.\nHarvest Pipeline failed to resubmit its response plan to PHMSA within 5 years from the date of\nthe last submission or the last approval. The previous response plan was submitted and approved\nin 2010, and the current response plan should have been submitted/approved at the 5-year mark in\n2015, but was not submitted until September 2016.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(5) Analyzing pipeline accidents to determine their causes.\nHarvest Pipeline failed to follow their procedure, Liquid O&M Manual, P-195.402c5: Accident\nand Incident Investigation for conducting investigations to determine the probable cause of an\naccident. The procedures state “The investigation process is the same regardless of the level of\ninvestigation to be used. What is different is the investigation method or methods that will be used\nto identify cause and implement safeguards and corrective actions.” Harvest Pipeline failed to\nperform an analysis and document their findings for two reported accidents (PHMSA Form\nF7000.1 ID’s 20160310 and 20150070.)\n2\n\n\n\n4. §195.402 Procedural manual for operations, maintenance, and emergencies\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(13) Periodically reviewing the work done by operator personnel to determine\nthe effectiveness of the procedures used in normal operation and maintenance\nand taking corrective action where deficiencies are found.\nHarvest Pipeline failed to follow their procedure, Liquid O&M Manual, P-195.402c13: Review of\nWork done by Operator. The procedure states “Each supervisor will review the work performed\nby the operations personnel reporting to him to ensure that the procedures in use are adequate and\nany deficiencies or recommendations are reported. This review should be documented on form F-\n195.402(c)(13) Review of Work Done by Operator.” Harvest Pipeline could not provide any\ncompleted copies of the form or confirmation that the review had been completed.\n5. §195.402 Procedural manual for operations, maintenance, and emergencies\n(d) Abnormal operation. The manual required by paragraph (a) of this section must\ninclude procedures for the following to provide safety when operating design limits\nhave been exceeded;\n(5) Periodically reviewing the response of operator personnel to determine the\neffectiveness of the procedures controlling abnormal operation and taking\ncorrective action where deficiencies are found.\nHarvest Pipeline failed to follow their procedure, Liquid Operations & Maintenance Manual P-\n195.402d: Abnormal Operations to document the periodic review required by §195.402(d)(5). The\nprocedure states “Periodically, or as needed (after a condition has occurred), members of the\nHarvest Control Center Management Team and or Lead Controllers designated shall review the\nresponse of control center personnel to ensure the effectiveness of the procedures controlling an\nabnormal condition.” Harvest Pipeline could not provide the required documentation to show that\nthis procedure was followed. In Table 3: Necessary Compliance Records, it shows that Review of\nPersonnel Response to Abnormal Operations records will be kept for 3 years. Harvest did not\nproduce any records at the time of the inspection, but stated that the Controller Supervisor conducts\nverbal reviews.\n6. §195.403 Emergency Response Training\n(b) At the intervals not exceeding 15 months, but at least once each calendar year,\neach operator shall:\n(1) Review with personnel their performance in meeting the objectives of the\nemergency response training program set forth in paragraph (a) of this\nsection; and\n(2) Make appropriate changes to the emergency response training program as\n3\n\n\n\nnecessary to ensure that it is effective.\nHarvest Pipeline failed to document and retain records when following their procedure, Liquid\nOperations & Maintenance Manual P-195.403: Training. The procedure states “At the intervals\nnot exceeding 15 months, but at least once each calendar year, each operator shall: 1. Review with\npersonnel their performance in meeting the objectives of the emergency response training program\nand review employee activities to determine whether the procedure was effectively followed in\neach emergency.”\n7. §195.403 Emergency Response Training\n(c) Each operator shall require and verify that its supervisors maintain a thorough\nknowledge of that portion of the emergency response procedures established under\n195.402 for which they are responsible to ensure compliance.\nHarvest Pipeline failed to document their verification of supervisors’ knowledge of emergency\nresponse procedures in accordance with their procedure, Liquid Operations & Maintenance\nManual P-195.403: Training. The procedure states that “A verification of supervisor knowledge\nis required, which should be documented on form (F-195.403c).” Harvest Pipeline has not been\nconsistently documenting their verification of supervisor knowledge. The Operator had one form,\ndated 12/1/16 (The HQ inspection was conducted Nov 28th\n– Dec 2nd 2016). The form was not\ncompletely filled out and did not include what topics were reviewed. There were no additional\nrecords.\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. For violations occurring prior to November 2, 2015, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000\nfor a related series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violations and has recommended that\nyou be preliminarily assessed a civil penalty of $88,300 as follows:\nItem number PENALTY\n3 $19,300\n4 $19,000\n5 $15,500\n6 $19,000\n7 $15,500\n4\n\n\n\nWarning Items\nWith respect to item 2, PHMSA reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct this item. Failure to do so may result\nin additional enforcement action.\nProposed Compliance Order\nWith respect to items 1, 3, 4, 5, and 6, pursuant to 49 United States Code § 60118, the Pipeline\nand Hazardous Materials Safety Administration proposes to issue a Compliance Order to Harvest\nPipeline Company. Please refer to the Proposed Compliance Order, which is enclosed and made\na 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\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). If you do not respond within 30 days of receipt of this Notice, this constitutes a\nwaiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 4-2018-5016 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\n5\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 Harvest Pipeline Company a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of Harvest Pipeline\nCompany with the pipeline safety regulations:\n1. 2. 3. 4. 5. 6. In regard to Item Number 1 of the Notice pertaining to satisfying the requirements\nfor a drill program by following the National Preparedness for Response Exercise\nProgram (PREP) Guidelines, Harvest Pipeline Company must, upon completion of\ntheir emergency response drills, perform an objective evaluation of personnel,\nprocedures, drill scenarios, and other factors, where lessons learned are used in\nresponse plan revisions. This must be done in accordance with their Facility\nResponse Plan Guidelines- Section 7.3.2: Certification to include a signature of an\nauthorized representative.\nIn regard to Item Number 3 of the Notice pertaining to the failure to analyze\npipeline accidents to determine their causes, Harvest Pipeline Company must\namend their procedure to include analysis techniques or methods to analyze\npipeline accidents to determine their causes. Section B: Conduct the Investigation,\ndoes not provide detail of how to actually conduct an accident investigation other\nthan to refer to a diagram that identifies the organization flow of conducting an\ninvestigation, yet there is no diagram.\nIn regard to Item Number 4 of the Notice pertaining to review of work done by\noperator personnel to determine the effectiveness of the procedures used in normal\noperation and maintenance and taking corrective action where deficiencies are\nfound. Harvest Pipeline must begin to conduct reviews of operations personnel and\ndocument those reviews on Harvest Pipeline Form F-195.402(c)(13) titled Review\nof Work Done by Operator. This must be done in accordance with their Liquid\nO&M Manual P-195.402c13: Review of Work Done by Operator.\nIn regard to Item Number 5 of the Notice pertaining to review of response of\noperator personnel to determine the effectiveness of the procedures controlling\nabnormal operation and taking corrective action where deficiencies are found.\nHarvest Pipeline failed to provide documentation of reviews of the response of\ncontrol center personnel to ensure the effectiveness of procedures controlling\nabnormal conditions. Harvest must begin documenting their verbal reviews of\nresponses of control center personnel for abnormal conditions. This must be done\nin accordance with their Liquid O&M Manual P-195.402d: Abnormal Operations.\nIn regard to Item Number 6 of the Notice pertaining to review of emergency\npersonnel performance in meeting the objectives of the emergency response\ntraining program. Harvest Pipeline failed to provide documentation of reviews of\nemergency personnel performance. Harvest must conduct reviews of emergency\npersonnel performance and document these reviews at the required interval. This\nmust be done in accordance with their Liquid O&M Manual P-195.403: Training.\nAforementioned to be accomplished within 30 days following receipt of the Final\nOrder.\n6\n\n\n\n7. It is requested (not mandated) that Harvest Pipeline Company maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Mary L. McDaniel, Director, Southwest\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n7\n\n420185016_Closure Letter_02042020_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nFebruary 4, 2020\nJason Rebrook\nChief Executive Officer\nHarvest Midstream Company\n1111 Travis Street\nHouston, Texas 77002\nCPF 4-2018-5016\nDear Mr. Rebrook:\nOn September 12, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Harvest Midstream Company a Final Order in the above-referenced case. This Order\nincluded a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation 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 Region\nPipeline and Hazardous Materials Safety Administration\n\n420185016_Final Order_09122019_text.pdf\n\nSeptember 12, 2019\nMr. Jason Rebrook\nChief Executive Officer\nHarvest Midstream Company\n1111 Travis Street\nHouston, Texas 77002\nRe: CPF No. 4-2018-5016\nDear Mr. Rebrook:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $88,300 and specifies actions that need to be taken by\nHarvest Midstream Company to comply with the pipeline safety regulations. The penalty\npayment terms are set forth in the Final Order. 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. Service of the Final Order by certified mail is effective upon\nthe date of mailing, as provided 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. Troy Brown, Sr., Regulatory Compliance Specialist, Harvest Midstream Company,\n1111 Travis Street, Houston, Texas 77002\nMr. Craig Murski, Integrity Manager, Harvest Midstream Company, 1111 Travis Street,\nHouston, Texas 77002\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 )\nHarvest Midstream Company, ) CPF No. 4-2018-5016\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom November 3, 2016 through January 27, 2017, pursuant to 49 U.S.C. § 60117,\nrepresentatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Harvest Midstream Company (Harvest or Respondent). Specifically, PHMSA\ninspected the Eugene Island Facility in New Iberia, Louisiana, the Southwest Pass 24 Oil\nTerminal Facility in Venice, Louisiana, and records of the company in Houston, Texas. Harvest\ntransports and processes oil, natural gas and natural gas liquids across the United States, with\nassets in Alaska, Louisiana, New Mexico, Ohio, Pennsylvania and Texas.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated August 31, 2018, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to 49\nC.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nHarvest had committed seven violations of 49 C.F.R. Parts 194 and 195, and proposed assessing\na civil penalty of $88,300 for the alleged violations. The Notice also proposed ordering\nRespondent to take certain measures to correct the alleged violations. The warning item required\nno further action, but warned the operator to correct the probable violation or face possible future\nenforcement action.\nAfter requesting and receiving an extension of time to respond, Harvest responded to the Notice\nby letter dated December 18, 2018 (Response). The company did not contest the allegations of\nviolation but provided information concerning the corrective actions it had taken and would take\nin the future. Respondent did not request a hearing and therefore has waived its right to one.\n1 Harvest website, available at http://www.harvestmidstream.com/ (last accessed June 24, 2019).\n\n\n\nCPF No. 4-2018-5016\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Parts 194 and 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 194.107(c)(1)(ix), which states:\n§ 194.107 General response plan requirements.\n(a) ….\n(c) Each response plan must include:\n(1) A core plan consisting of -\n(i) ….\n(ix) Drill program - an operator will satisfy the requirement for a\ndrill program by following the National Preparedness for Response\nExercise Program (PREP) guidelines. An operator choosing not to follow\nPREP guidelines must have a drill program that is equivalent to PREP. The\noperator must describe the drill program in the response plan and OPS will\ndetermine if the program is equivalent to PREP.\nThe Notice alleged that Respondent violated 49 C.F.R. § 194.107(c)(1)(ix) by failing to follow\nthe PREP guidelines in its response plan. Specifically, the Notice alleged that Harvest did not\nfollow PREP guidelines when conducting drills, nor did the company consistently document core\ncomponents exercised, lessons learned, or signatures of authorized representatives.\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. § 194.107(c)(1)(ix) by failing to\nfollow PREP guidelines in its response plan.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 194.121(a), which states:\n§ 194.121 Response plan review and update procedures.\n(a) Each operator shall update its response plan to address new or\ndifferent operating conditions or information. In addition, each operator\nshall review its response plan in full at least every 5 years from the date of\nthe last submission or the last approval as follows:\n(1) For substantial harm plans, an operator shall resubmit its response\nplan to OPS every 5 years from the last submission date.\n(2) For significant and substantial harm plans, an operator shall\nresubmit every 5 years from the last approval date.\nThe Notice alleged that Respondent violated 49 C.F.R. § 194.121(a) by failing to timely resubmit\nits response plan to OPS. Specifically, the Notice alleged that Harvest failed to resubmit its\nresponse plan to OPS 5 years after the last plan was submitted and approved in 2010. Instead, of\nsubmitting it in 2015, Harvest’s response plan was submitted in September 2016.\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. § 194.121(a) by failing to timely\n\n\n\nCPF No. 4-2018-5016\nPage 3\nresubmit its response plan to OPS.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(5) which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) ….\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following to\nprovide safety during maintenance and normal operations:\n(1) ….\n(5) Analyzing pipeline accidents to determine their causes.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(5) by failing to prepare and\nfollow procedures for analyzing pipeline accidents to determine their causes. Specifically, the\nNotice alleged that Harvest’s Liquid Operations and Maintenance (O&M) Manual had\ninsufficient procedures regarding accident investigations. Further, the Notice alleged that\nHarvest failed to perform a root cause analysis and document its findings on two reported\naccidents (PHMSA Form 7000.1 ID 20160310 and 20150070).\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. § 195.402(c)(5) by failing to have\nprocedures for analyzing pipeline accidents to determine their causes.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(13), which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) ….\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following to\nprovide safety during maintenance and normal operations:\n(1) ....\n(13) Periodically reviewing the work done by operator personnel to\ndetermine the effectiveness of the procedures used in normal operation and\nmaintenance and taking corrective action where deficiencies are found.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(c)(13) by failing to prepare\nand follow procedures regarding periodically reviewing work done by operator personnel to\ndetermine the effectiveness of the procedures and taking corrective action when deficiencies are\nfound. Specifically, the Notice alleged that Harvest failed to provide any records evidencing that\nthis review had been completed.\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. § 195.402(c)(13) by failing to prepare\nand follow procedures on periodically reviewing work done by operator personnel to determine\n\n\n\nCPF No. 4-2018-5016\nPage 4\nthe effectiveness of the procedures used in normal operation and maintenance and taking\ncorrective action when deficiencies are found.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(d)(5) which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) ….\n(d) Abnormal operation. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety when\noperating design limits have been exceeded:\n(1) ….\n(5) Periodically reviewing the response by operator personnel to\ndetermine the effectiveness of the procedures controlling abnormal\noperation and taking corrective action where deficiencies are found.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(d)(5) by failing to prepare and\nfollow procedures regarding periodically reviewing the response of operator personnel to\ndetermine the effectiveness of the procedures controlling abnormal operation and taking\ncorrective action where deficiencies are found. Specifically, the Notice alleged that Harvest\nfailed to provide any records evidencing that this review had been completed, despite the\nrequirement in its O&M Manual, Table 3: Necessary Compliance Records requiring this\ndocumentation be kept for three years.\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. § 195.402(d)(5) by failing to prepare\nand follow procedures regarding periodically reviewing the response of operator personnel to\ndetermine the effectiveness of the procedures controlling abnormal operation and taking\ncorrective action where deficiencies are found.\nItem 6: The Notice alleged that Respondent violated 49 C.F.R. § 195.403(b) which states:\n§ 195.403 Emergency response training.\n(a) ….\n(b) At intervals not exceeding 15 months, but at least once each calendar\nyear, each operator shall:\n(1) Review with personnel their performance in meeting the objectives\nof the emergency response training program set forth in paragraph (a) of\nthis section; and\n(2) Make appropriate changes to the emergency response training\nprogram as necessary to ensure that it is effective.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.403(b) by failing to document and\nretain records of reviewing with personnel their performance in meeting the objectives of the\nemergency response training program and making appropriate changes as necessary to ensure\nthat it is effective. Specifically, the Notice alleged that Harvest failed to provide any records\n\n\n\nCPF No. 4-2018-5016\nPage 5\nevidencing that this review had been completed, despite the requirement in its O&M Manual, P-\n195.403: Training requiring this review at intervals not exceeding 15 months but at least once\neach calendar year.\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. § 195.403(b) by failing to establish\nand conduct a training program that required review with personnel of their performance in\nmeeting the objectives of the emergency response training program and making appropriate\nchanges as necessary to ensure that it is effective.\nItem 7: The Notice alleged that Respondent violated 49 C.F.R. § 195.403(c), which states:\n§ 195.403 Emergency response training.\n(a) ….\n(c) Each operator shall require and verify that its supervisors maintain\na thorough knowledge of that portion of the emergency response procedures\nestablished under 195.402 for which they are responsible to ensure\ncompliance.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.403(c) by failing to require and\nverify that its supervisors maintain a thorough knowledge of that portion of the emergency\nresponse procedures established under § 195.402 for which they are responsible to ensure\ncompliance. Specifically, the Notice alleged that Harvest failed to provide any records\nevidencing verification of supervisor knowledge for emergency response procedures they are\nresponsible for ensuring compliance, despite the requirement in its O&M P-195.403: Training\nthat requires verification of supervisor knowledge be documented on form F195.403c. During\nthe inspection, Harvest only provided one form, dated 12/1/2016, which was not completely\nfilled out.\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. § 195.403(c) by failing to require and\nverify that its supervisors maintain a thorough knowledge of that portion of the emergency\nresponse procedures established under § 195.402 for which they are responsible to ensure\ncompliance.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\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\n\n\n\nCPF No. 4-2018-5016\nPage 6\nrelated series of violations.2 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 $88,300 for the violations cited above.\nItem 3: The Notice proposed a civil penalty of $19,300 for Respondent’s violation of 49 C.F.R.\n§ 195.402(c)(5) for failing to prepare and follow procedures for analyzing pipeline accidents to\ndetermine their causes. In its Response, Harvest stated that it was performing accident\ninvestigations as evidenced by completed F7000.1 forms, but recognized that it could improve\nthe detail, methods, and documentation it uses in this process. Since the Notice, Harvest has\nmade changes to its Accident and Incident Investigation procedure. Harvest neither contested\nthe allegation nor presented any evidence or argument justifying a reduction in or elimination of\nthe proposed penalty. As a result, Harvest failed to comply with a requirement that was clearly\napplicable. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $19,300 for violation of 49 C.F.R. § 195.402(c)(5).\nItem 4: The Notice proposed a civil penalty of $19,000 for Respondent’s violation of 49 C.F.R.\n§ 195.402(c)(13) for failing to prepare and follow procedures regarding periodically reviewing\nwork done by operator personnel to determine the effectiveness of the procedures and taking\ncorrective action when deficiencies are found. Harvest neither contested the allegation nor\npresented any evidence or argument justifying a reduction in or elimination of the proposed\npenalty. As a result, Harvest failed to comply with a regulation that was clearly applicable.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a civil penalty of $19,000 for violation of 49 C.F.R. § 195.402(c)(13).\nItem 5: The Notice proposed a civil penalty of $15,500 for Respondent’s violation of 49 C.F.R.\n§ 195.402(d)(5) for failing to prepare and follow procedures regarding periodically reviewing the\nresponse of operator personnel to determine the effectiveness of the procedures controlling\nabnormal operation and taking corrective action where deficiencies are found. In its Response,\nHarvest stated that it transitioned to operational control of the Louisiana assets at issue on June\n28, 2016 and was currently evaluating how it can update its procedures. Recent acquisition of\nassets, however, does not absolve an operator of its regulatory duties. Harvest failed to comply\nwith a regulation that was clearly applicable. Based upon the foregoing, I assess Respondent a\ncivil penalty of $15,500 for violation of 49 C.F.R. § 195.402(d)(5).\nItem 6: The Notice proposed a civil penalty of $19,000 for Respondent’s violation of 49 C.F.R.\n§ 195.403(b) for failing to document and retain records of reviewing with personnel their\nperformance in meeting the objectives of the emergency response training program and making\n2 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. 4-2018-5016\nPage 7\nappropriate changes as necessary to ensure that it is effective. Harvest neither contested the\nallegation nor presented any evidence or argument justifying a reduction in or elimination of the\nproposed penalty. As a result, Harvest failed to comply with a regulation that was clearly\napplicable. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $19,000 for violation of 49 C.F.R. § 195.403(b).\nItem 7: The Notice proposed a civil penalty of $15,500 for Respondent’s violation of 49 C.F.R.\n§ 195.403(c) for failing to require and verify that its supervisors maintain a thorough knowledge\nof that portion of the emergency response procedures established under § 195.402 for which they\nare responsible to ensure compliance. Harvest neither contested the allegation nor presented any\nevidence or argument justifying a reduction in or elimination of the proposed penalty. As a\nresult, Harvest failed to comply with a regulation that was clearly applicable. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $15,500 for violation of 49 C.F.R. § 195.403(c).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $88,300.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $88,300 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 3, 4, 5, and 6 in the Notice for\nviolations of 49 C.F.R. §§ 194.107(c)(1)(ix), 195.402(c)(5), 195.402(c)(13), 195.402(d)(5) and\n195.403(b), respectively. 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:\n\n\n\nCPF No. 4-2018-5016\nPage 8\n1. With respect to the violation of § 194.107(c)(1)(ix) (Item 1), Respondent must,\nupon completion of their emergency response drills, perform an objective evaluation\nof personnel, procedures, drill scenarios, and other factors, where lessons learned are\nused in response plan revisions in accordance with Harvest’s Facility Response Plan\nGuidelines – Section 7.3.2 Certification, to include a signature of an authorized\nrepresentative. This must be completed within 30 days of any drills that are\nscheduled, in the normal course, on or after the receipt of the Final Order.\n2. With respect to the violation of § 195.402(c)(5) (Item 3), Respondent must amend\nthe procedures contained in its Liquid O&M Manual, Section B: Conduct the\nInvestigation to identify analyses, techniques, or methods to analyze pipeline\naccidents to determine their causes. These procedures should also include detailed\ninformation on how to conduct an accident investigation with updated diagrams. This\nmust be completed within 30 days of receipt of the Final Order.\n3. With respect to the violation of § 195.402(c)(13) (Item 4), Respondent must\nconduct reviews of operations personnel and document those reviews on form F-\n195.402(c)(13),3 entitled Review of Work Done by Operator in accordance with\nHarvest’s Liquid O&M Manual P-195.402c13: Review of Work Done by Operator.\nThis must be completed within 30 days of receipt of the Final Order.\n4. With respect to the violation of § 195.402(d)(5) (Item 5), Respondent must begin\ndocumenting its reviews of responses of control center personnel to abnormal\noperating conditions in accordance with Harvest’s Liquid O&M Manual P-\n195.402d5: Abnormal Operations.4 This must be completed within 30 days of receipt\nof the Final Order.\n5. With respect to the violation of § 195.403(b) (Item 6), Respondent must conduct\nreviews of emergency personnel performance and document these reviews at the\nrequired interval, in accordance with Harvest’s Liquid O&M Manual P-195.403:\nTraining. This must be completed within 30 days of any drills that are scheduled, in\nthe normal course, on or after the receipt of the Final Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten reques","truncated":true,"body_characters":42897}