PLAINS MARKETING, L.P. — Notice of Probable Violation

case documentOfficial PDF420185026_NOPV PCO_12202018.pdf#

case documentOfficial PDF420185026_NOPV PCP_12202018_text.pdf#

party submissionOfficial PDF420185026_Operator Response to Notice_01242019.pdf#

420185026_Final Order_08092019_text.pdf, page 1Official PDFAugust 9, 2019 Mr. Willie C. W. Chiang Chief Executive Officer and Director Plains All American Pipeline, LP 333 Clay Street, Suite 1600 Houston, Texas 77002 Re: CPF No. 4-2018-5026 Dear Mr. Chiang: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation against your subsidiary, Plains Marketing, LP, and assesses a civil penalty of $81,500. This is to acknowledge receipt of payment of the full penalty amount, by wire transfer, dated January 25, 2019. This enforcement action is now 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, Southwestern Region, Office of Pipeline Safety, PHMSA Mr. Dean Gore, Vice President, Environmental and Regulatory Compliance, Plains All American Pipeline, LP, 333 Clay Street, Suite 1600, Houston, Texas 77002 CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

420185026_Final Order_08092019_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ________________________________________________ In the Matter of ) ) ) Plains Marketing, LP, ) a subsidiary of Plains All American Pipeline, LP, ) Respondent. ) ________________________________________________) ) CPF No. 4-2018-5026 FINAL ORDER From May 7, 2018 through August 24, 2018, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Plains Marketing, LP’s (Plains or Respondent), tank terminal facilities in St. James, Louisiana and Cushing, Oklahoma. Plains Marketing, LP is an operating subsidiary of Plains All American Pipeline, LP (PAA).1 PAA operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids and natural gas.2 As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to Respondent, by letter dated December 20, 2018, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Plains had violated 49 C.F.R. § 195.505(b) and proposed assessing a civil penalty of $81,500 for the alleged violation. Plains responded to the Notice by letter dated January 24, 2019 (Response). The company did not contest the allegation of violation and paid the proposed civil penalty of $81,500. In accordance with 49 C.F.R. § 190.208(a)(1), such payment authorizes the Associate Administrator to make a finding of violation and to issue this final order without further proceedings. FINDING OF VIOLATION 1 US SEC Form 10-L, Plains All American Pipeline, LP, available at https://www.edgarexplorer.com/EFX dll/EdgarPro.dll?FetchFilingHTML1?SessionID=OzIxUFTZgRk1iwc&ID=1 3256218 (last accessed July 9, 2019). 2 Plains All American Pipeline, About Us, available at https://www.plainsallamerican.com/about-us (last accessed July 9, 2019).#

420185026_Final Order_08092019_text.pdf, page 3CPF 4-2018-5026 Page 2 In its Response, Plains did not contest the allegation 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. § 195.505(b), which states: § 195.505 Qualification program. Each operator shall have and follow a written qualification program. The program shall include provisions to: (a) …. (b) Ensure through evaluation that individuals performing covered tasks are qualified; The Notice alleged that Respondent violated 49 C.F.R. § 195.505(b) by failing to ensure through evaluation that individuals performing covered tasks were qualified. Specifically, the Notice alleged that two employees performed monthly tank inspections, covered task (CT) 27.1, in 2017 and 2018, without being qualified to perform that covered task and without the direct supervision of an individual qualified to perform that covered task. 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. § 195.505(b) by failing to ensure through evaluation that individuals performing covered tasks were qualified. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.3 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $81,500 for the violation cited above. Item 1: The Notice proposed a civil penalty of $81,500 for Respondent’s violation of 49 C.F.R. § 195.505(b), for failing to ensure through evaluation that individuals performing covered tasks were qualified. Plains neither contested the allegation nor presented any evidence or argument 3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts, 83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).#

420185026_Final Order_08092019_text.pdf, page 4CPF 4-2018-5026 Page 3 justifying a reduction in or elimination of the proposed penalty. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $81,500 for violation of 49 C.F.R. § 195.505(b). The total civil penalty of $81,500 was paid in full by wire transfer on January 25, 2019. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. August 9, 2019 ___________________________________ _________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#