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

- **operation:** document
- **citation:** CPF 420185026
- **title:** PLAINS MARKETING, L.P. — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2018-12-20
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.505(b).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-420185026.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420185026.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420185026
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420185026
**body:**

Notice of Probable Violation involving PLAINS MARKETING, L.P.. PHMSA's enforcement data identifies the cited regulation as 195.505(b). The case was opened on 2018-12-20 and is reported as closed as of 2019-08-09. Proposed civil penalty: $81,500. Assessed civil penalty: $81,500. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420185026_Final Order_08092019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185026/420185026_Final%20Order_08092019.pdf

420185026_Final Order_08092019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185026/420185026_Final%20Order_08092019_text.pdf

420185026_NOPV PCO_12202018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185026/420185026_NOPV%20PCO_12202018.pdf

420185026_NOPV PCP_12202018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185026/420185026_NOPV%20PCP_12202018_text.pdf

420185026_Operator Response to Notice_01242019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185026/420185026_Operator%20Response%20to%20Notice_01242019.pdf

420185026_Final Order_08092019_text.pdf

August 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



U.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).



CPF 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).



CPF 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
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