{"operation":"document","citation":"CPF 420195018","title":"DELEK CRUDE LOGISTICS, LLC. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-11-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.412(a), 195.440(a), 195.583(a), 195.61, 195.64(c)(2)(iv).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195018.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195018.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195018","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420195018","body":"Notice of Probable Violation involving DELEK CRUDE LOGISTICS, LLC.. PHMSA's enforcement data identifies the cited regulations as 195.412(a),  195.440(a),  195.583(a),  195.61,  195.64(c)(2)(iv). The case was opened on 2019-11-04 and is reported as closed as of 2020-08-18. Proposed civil penalty: $19,000. Assessed civil penalty: $19,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420195018_Closure Letter_08182020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_Closure%20Letter_08182020.pdf\n\n420195018_Closure Letter_08182020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_Closure%20Letter_08182020_text.pdf\n\n420195018_Final Order_05282020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_Final%20Order_05282020.pdf\n\n420195018_Final Order_05282020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_Final%20Order_05282020_text.pdf\n\n420195018_NOPV PCP PCO_11042019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_NOPV%20PCP%20PCO_11042019.pdf\n\n420195018_NOPV PCP PCO_11042019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_NOPV%20PCP%20PCO_11042019_text.pdf\n\n420195018_Operator Response to Notice_12132019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195018/420195018_Operator%20Response%20to%20Notice_12132019.pdf\n\n420195018_NOPV PCP PCO_11042019_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 4, 2019\nEzra Uzi Yemin\nPresident and CEO\nDelek US Holdings, Inc.\n7102 Commerce Way\nBrentwood, Tennessee 37027\nCPF 4-2019-5018\nDear Mr. Yemin:\nFrom December 17, 2018 through June 21, 2019, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.) inspected your subsidiary, Delek Crude Logistics, LLC,’s\n(Delek) - Healdton to Yantis, 8” hazardous liquid pipeline system near Dallas, Texas.\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 (CFR). The items inspected\nand the probable violations are:\n\n\n\n1. § 195.61 National Pipeline Mapping System.\n(a) Each operator of a hazardous liquid pipeline facility must provide the following\ngeospatial data to PHMSA for that facility:\n(1) Geospatial data, attributes, metadata and transmittal letter appropriate for use in\nthe National Pipeline Mapping System. Acceptable formats and additional\ninformation is specified in the NPMS Operator Standards manual available\nat www.npms.phmsa.dot.gov or by contacting the PHMSA Geographic Information\nSystems Manager at (202) 366-4595.\n(2) The name of and address for the operator.\n(3) The name and contact information of a pipeline company employee, to be\ndisplayed on a public Web site, who will serve as a contact for questions from the\ngeneral public about the operator’s NPMS data.\n(b) This information must be submitted each year, on or before June 15, representing\nassets as of December 31 of the previous year. If no changes have occurred since the\nprevious year’s submission, the operator must refer to the information provided in\nthe NPMS Operator Standards manual available at www.npms.phmsa.dot.gov or\ncontact the PHMSA Geographic Information Systems Manager at (202) 366-4595.\nDelek failed to submit National Pipeline Mapping System data for its 143 mile Healdton to Yantis,\n8” pipeline system to PHMSA on or before June 15, 2018, for calendar year 2017 as required by\n§ 195.61(b).\nDelek did not submit the required information until June 13, 2019, one year beyond the submittal\ndate for calendar year 2017.\n2. § 195.64 National Registry of Pipeline and LNG Operators.\n(c) Changes. Each operator must notify PHMSA electronically through the National\nRegistry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov, of certain\nevents.\n(2) An operator must notify PHMSA of any following event not later than 60 days\nafter the event occurs:\n(iv) The acquisition or divestiture of 50 or more miles of pipeline or pipeline system\nsubject to this part.\nDelek failed to notify PHMSA within 60 days of the acquisition of an existing pipeline facility as\nrequired by § 195.64(c)(2).\nDelek purchased the Healdton to Yantis, 8” pipeline from Plains Pipeline on September 15, 2017\n(Notification D-20171114-17567). Delek was required under § 195.64(c)(2) to file a notice of\nacquising within 60 days. The 60-day filing by Delek should have occurred no later than\nNovember 14, 2017. As of the date of this letter, Delek has not filed the notification.\n2\n\n\n\n3. § 195.412 Inspection of rights-of-way and crossings under navigable waters.\n(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each\ncalendar year, inspect the surface conditions on or adjacent to each pipeline right-of-\nway. Methods of inspection include walking, driving, flying or other appropriate\nmeans of traversing the right-of-way.\nDelek failed to inspect the surface conditions on and adjacent to its pipeline right-of-way at\nintervals not exceeding 3 weeks, but at least 26 times each calendar year as required by §\n195.412(a).\nDuring the PHMSA inspection, Delek provided only 19 records for calendar year 2018, 7 less than\nthe required 26 minimum. Delek personnel were not able to provide the remaining records or\nprovide information regarding the lack of the required record. There is therefore no evidence that\nDelek conducted the missing 7 inspections.\n4. § 195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written continuing public\neducation program that follows the guidance provided in the American Petroleum\nInstitute’s (API) Recommended Practice (RP) 1162 (incorporated by\nreference, see §195.3).\nDelek’s written Public Awareness Program (PAP) failed to follow the guidance provided in the\nAmerican Petroleum Institute’s (API) Recommended Practice (RP) 1162 in 6 areas as required by\n§ 195.440(a). Delek’s PAP was inadequate because it failed to follow general program\nrecommendations of API 1162 as required in Sections 2, 3, 6 and 8.\n1. Delek failed to demonstrate adequate management support as required by API RP 1162.\nSection 2.5 in API RP 1162 requires that management “demonstrate its support [of PAP]\nthrough [1] company policy, [2] management participation, and [3] allocation of\nresources and funding.”\n2. During the review of the Delek’s PAP contained within its Operations & Maintenance\nManual (OM-ADM-195), it was noted that the procedure did not contain a company\npolicy statement concerning public awareness or provide any indication that management\nhad committed to assuring resources and funding would be allocated to ensure the\nsuccessful implementation of the Delek PAP.\nDelek failed to identify the specific systems and assets that are to be included in the Delek\nPAP.\n3\n\n\n\n3. 4. 5. 6. Section 2.7 in API RP 1162 requires identification of pipeline assets to be included\nwithin the program for overall program administration and development of a program\nthat applies to each identified asset-specific program.\nDuring the PHMSA inspection, Delek personnel referenced Section 1.1.4-Pipelines\nCovered; Table 1-2: Delek Logistics Assets. However, upon review, the table was blank\nand did not identify any assets. According to the notification received from Plains\nPipeline (D-20171114-17567), Delek acquired the Healdton to Yantis, 8” effective\nSeptember 15, 2017 and those assets were not included in the PAP.\nDelek failed to identify the audience that should received the PAP’s messages and failed\nto define the communication coverage area (buffer) and include detail on how this\ncoverage area for outreach and notification, delivery methods and delivery frequencies\nfit its particular pipeline, location and potential impact consequences in the Delek PAP.\nSection 3.0 in API RP 1162 requires a PAP to “identify the audience(s) that should\nreceive the program’s messages.”\nDelek failed to include a procedure to ensure that a supplemental review is conducted as\nprescribed by API RP 1162 Section 6.1 in the Delek PAP.\nSection 6.1 in API RP 1162 states that “an operator should consider external factors\nalong the pipeline system and determine if some additional level of public awareness\ncommunications is warranted, beyond the recommended baseline program.” During the\nreview of the Delek PAP in its Operations & Maintenance Manual (OM-ADM-195), it\nwas noted that there were no procedures that included criteria or relevant factors to\nconsider for determining whether supplemental enhancements are necessary.\nDelek failed to include a procedure that measures the bottom-line results of the PAP by\ntracking third-party incidents and consequences including: (1) near misses, (2)\nexcavation damages resulting in pipeline failures and (3) excavation damages that do\nnot result in pipeline failures in the Delek PAP.\nSection 8.4.4 in API RP 1162 states that “One measure of the “bottom-line results” is\nthe damage prevention effectiveness of an operator’s Public Awareness Program and\nthe change in the number and consequences of third-party incidents.” During the\nreview of the Delek PAP, it was noted that it did not include a procedure that specifies\nhow Delek will track near misses, hits and failures, and will measure these results.\nDelek failed to include a procedure that specifies how self-assessments and\neffectiveness evaluations will be conducted in the Delek PAP.\n4\n\n\n\nSection 8 in API RP 1162 states that “The overall written plan for the Public\nAwareness Program should include a section describing the operator’s evaluation\nprogram that includes the baseline elements.” During the review of the Delek PAP, it\nwas noted that it did not include a procedure that specifies how program\nimplementation and effectiveness will be periodically evaluated.\n5. § 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline\nis\nlocated:\nThen the frequency of inspection is:\nOnshore At least once every 3 calendar years, but with intervals not exceeding\n39 months.\nOffshore At least once each calendar year, but with intervals not exceeding 15\nmonths.\nDelek failed to conduct an inspection of each pipeline that is exposed to the atmosphere for\nevidence of atmospheric corrosion at least once every 3 calendar years, but with intervals not\nexceeding 39 months.\nDelek acquired the Healdton to Yantis, 8” pipeline system in September 2017. During the\nPHMSA inspection, records of atmospheric corrosion inspections were requested, however,\nDelek representatives stated that no atmospheric corrosion inspections had been conducted and\ncould find no records to show the previous operator had conducted the inspection. The Delek\nHazardous Liquids Operations & Maintenance Manual (OM-ADM-195); Section 14-\nAtmospheric Corrosion; 14.5.4.2 notes the requirement for the inspection as “Onshore pipelines\nexposed to the atmosphere are inspected every 3 years at intervals not exceeding 39 months for\nsigns of corrosion as described in Delek Logistics Corrosion Control Manual. Delek Logistics\npersonnel must record atmospheric corrosion inspections on Appendix 14.2, Atmospheric\nCorrosion Inspection Report.” There is therefore no evidence that Delek inspected the pipeline\nfor evidence of atmospheric corrision.\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$218,467 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31,\n2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum\n5\n\n\n\npenalty not to exceed $2,132,679. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to\nexceed $2,000,000 for a related series of violations. The Compliance Officer has reviewed the\ncircumstances and supporting documentation involved for the above probable violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $19,000 as follows:\nItem number PENALTY\nItem Number 2 $19,000\nWarning Items\nWith respect to Items 1 and 3, we have reviewed the circumstances and supporting documents\ninvolved in this case and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to promptly correct these item(s). Failure to\ndo so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to items 2, 4, and 5 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Delek Crude Logistics,\nLLC. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice.\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.\n6\n\n\n\nIn your correspondence on this matter, please refer to CPF 4-2019-5018 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest\nPipeline and Hazardous Materials Safety Administration\ncc: Michael Odigie, Vice President of Integrity, Delek Crude Logistics, LLC, 12700 Park Central\nDrive, Suite 1500, Dallas, Texas 75251\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n7\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 Delek Crude Logistics, LLC, (Delek) a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Delek with\nthe pipeline safety regulations:\n1. 2. 5. 6. In regard to Item Number 2 of the Notice pertaining to Delek’s failure to notify\nPHMSA of the acquisition of the Healdton to Yantis, 8” pipeline system, Delek\nmust file this notification in accordance with § 195.64.\nIn regard to Item Number 4 of the Notice pertaining to Delek’s failure to\nfollow general Public Awareness Program (PAP) recommendations of API 1162 as\nrequired in Sections 2, 3, 6 and 8, Delek must:\na. Provide adequate management support through its policy, participation and\nallocation of resources as required by § 195.440(a).\nb. Provide an update to Section 1.1.4 Pipelines Covered: Table 1-2 to include all\npipeline assets covered under the PAP.\nc. Define the communication coverage area (buffer) for outreach and notification,\ndelivery methods and delivery frequencies that are to be covered by the written\nDelek PAP. Delek must identify audience that receives PAP messages in\ncoverage area for outreach and notification in accordance with §195.440(c).\nd. Include a procedure for a supplemental review in the written Delek PAP, Delek\nmust consider external factors along the pipeline system and determine if\nadditional levels of public awareness communications are warrented beyond the\nrecommended baseline program in accordance with § 195.440(c).\ne. Include a procedure that measures the bottom-line results of the program by\ntracking third-party incidents and consequences including: (1) near misses, (2)\nexcavation damages resulting in pipeline failures and (3) excavation damages\nthat do not result in pipeline failures in the written Delek PAP, Delek must\nprovide bottom line result measures in accordance with § 195.440(c).\nf. Include a procedure that specifies how self-assessments and effectiveness\nevaluations will be conducted in the written Delek PAP, Delek must specify\nhow program implementation and effectiveness will be evaluated in accordance\nwith § 195.440(i).\nIn regard to Item Number 5 of the Notice pertaining to Delek’s failure to conduct\natmospheric corrosion control inspections of exposed pipeline, Delek must conduct\natmospheric corrosion inspections of exposed pipeline and pipeline facilities as\nrequired by § 195.583(a).\nDelek must complete Item Number 2 within 30 days, and Item Numbers 4 and 5\nwithin 60 days following the receipt of Final Order.\n8\n\n\n\n7. It is requested (not mandated) that Delek maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to Mary L. McDaniel, Director, Southwest, Pipeline and Hazardous Materials\nSafety Administration. It is requested that these costs be reported in two categories:\n1) total cost associated with preparation/revision of plans, procedures, studies and\nanalyses, and 2) total cost associated with replacements, additions and other\nchanges to pipeline infrastructure.\n9\n\n420195018_Closure Letter_08182020_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nAugust 18, 2020\nEzra Uzi Yemin\nPresident and CEO\nDelek US Holdings, Inc.\n7102 Commerce Way\nBrentwood, Tennessee 37027\nCPF 4-2019-5018\nDear Mr. Yemin,\nOn May 28, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Delek Logistics Partners, LP (Delek) a Final Order in the above-referenced case to include a\nCompliance Order and civil penalty. Based on our review of the documentation provided on July\n29, 2020 and confirmation of payment of the civil penalty paid on June 16, 2020, 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 required with respect to the matters\ninvolved 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\n420195018_Final Order_05282020_text.pdf\n\nMay 28, 2020\nVIA ELECTRONIC MAIL TO: ezra.yemin@delekus.com\nMr. Ezra Uzi Yemin\nChairman, President, and Chief Executive Officer\nDelek US Holdings, Inc.\n7102 Commerce Way\nBrentwood, Tennessee 37027\nRe: CPF No. 4-2019-5018\nDear Mr. Yemin:\nEnclosed please find the Final Order issued in the above-referenced case to your subsidiary,\nDelek Crude Logistics, LLC. It makes three findings of violation, assesses a civil penalty of\n$19,000, and specifies actions that need to be taken to comply with the pipeline safety\nregulations. The penalty payment terms are set forth in the Final Order. When the civil penalty\nhas been paid and the terms of the compliance order completed, as determined by the Director,\nSouthwest Region, this enforcement action will be closed. Service of the Final Order by\nelectronic mail is effective upon the date of transmission, 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. Michael Odigie, Vice President, Asset Integrity, Delek Logistics Partners, LP,\nmichael.odigie@deleklogistics.com\nCONFIRMATION OF 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 )\nDelek Crude Logistics, LLC, ) CPF No. 4-2019-5018\na subsidiary of Delek US Holdings, Inc., )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom December 17, 2018, through June 21, 2019, pursuant to 49 U.S.C. § 60117, a\nrepresentative 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 Delek Crude Logistics, LLC’s (DCL or Respondent) Healdton to Yantis eight-inch\nhazardous liquid pipeline system near Dallas, Texas. DCL is a wholly-owned subsidiary of\nDelek Logistics Partners, LP (DLP), which is, in turn, majority-owned by Delek US Holdings,\nInc.1 DLP operates a system of crude-oil pipelines and refineries across the United States.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated November 4, 2019, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included warnings pursuant to\n49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nDCL had violated 49 C.F.R. §§ 195.64(c)(2)(iv), 195.440(a), and 195.583(a) and proposed\nassessing a civil penalty of $19,000 for one of the alleged violations. The Notice also proposed\nordering Respondent to take certain measures to correct the alleged violations. The warning\nitems required no further action but warned the operator to correct the probable violations or face\npossible future enforcement action.\nDLP responded to the Notice on behalf of DCL by letter dated December 13, 2019 (Response).\nThe company contested one of the allegations of violation, provided information concerning the\ncorrective actions it had taken, offered additional information in response to the Notice, and\nrequested that the proposed civil penalty be reduced. Respondent did not request a hearing and\ntherefore has waived its right to one.\n1 Delek Logistics Partners, LP website, available at https://www.deleklogistics.com/node/10576/html (last accessed\nMay 20, 2020); Delek US Holdings, Inc. website, available at https://ir.delekus.com/node/16021/html (last accessed\nMay 20, 2020).\n\n\n\nCPF No. 4-2019-5018\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.64(c)(2)(iv), which states:\n§ 195.64 National Registry of Pipeline and LNG Operators.\n(a) . . . .\n(c) Changes. Each operator must notify PHMSA electronically through\nthe National Registry of Pipeline and LNG Operators at\nhttp://opsweb.phmsa.dot.gov, of certain events.\n(1) . . . .\n(2) An operator must notify PHMSA of any following event not later\nthan 60 days after the event occurs:\n(i) . . . .\n(iv) The acquisition or divestiture of 50 or more miles of pipeline or\npipeline system subject to this part; or\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.64(c)(2)(iv) by failing to notify\nPHMSA within 60 days of the acquisition of an existing pipeline facility. Specifically, the\nNotice alleged that DCL purchased the Healdton to Yantis pipeline on September 15, 2017, and\nshould have notified PHMSA of the acquisition no later than November 14, 2017. However,\nDCL did not file the required notification until December 13, 2019. In its Response, DLP did\nnot contest the violation of § 195.64(c)(2)(iv), but requested a reduction in the proposed civil\npenalty, which is addressed in the “Assessment of Penalty” section below.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.64(c)(2)(iv) by failing to notify PHMSA within 60 days of the acquisition of an existing\npipeline facility.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.440(a), which states:\n§ 195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written\ncontinuing public education program that follows the guidance provided in\nthe American Petroleum Institute's (API) Recommended Practice (RP)\n1162 (incorporated by reference, see §195.3).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.440(a) by failing to develop and\nimplement a written continuing public education program that follows the guidance provided in\nAPI RP 1162. Specifically, the Notice alleged that DCL’s Public Awareness Plan (PAP) failed\nto follow the guidance in API RP 1162, sections 2, 3, 6, and 8, for six aspects of the public\nawareness program (PAP). DLP did not contest the allegation of violation.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.440(a) by failing to develop and implement a written continuing public education program\n\n\n\nCPF No. 4-2019-5018\nPage 3\nthat follows the guidance provided in API RP 1162.\nItem 5: The Notice alleged that Respondent violated 49 C.F.R. § 195.583(a), which states:\n§ 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed\nto the atmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is located: Onshore Offshore Then the frequency of inspection is:\nAt least once every 3 calendar years, but with\nintervals not exceeding 39 months.\nAt least once each calendar year, but with\nintervals not exceeding 15 months.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.583(a) by failing to inspect each\nonshore pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion at least\nonce every 3 calendar years, but with intervals not exceeding 39 months. Specifically, the\nNotice alleged that DCL did not have any records demonstrating that the Healdton to Yantis\npipeline system had been inspected for atmospheric corrosion, either since Respondent’s\nacquisition of the system in September 2017 or by the previous owner/operator. DLP did not\ncontest this allegation of violation.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.583(a) by failing to inspect each onshore pipeline that is exposed to the atmosphere for\nevidence of atmospheric corrosion at least once every 3 calendar years, but with intervals not\nexceeding 39 months.\nThese findings of violation will be considered as 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\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 $19,000 for the violation cited above in Item 2.\n2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n\n\n\nCPF No. 4-2019-5018\nPage 4\nItem 2: The Notice proposed a civil penalty of $19,000 for Respondent’s violation of 49 C.F.R.\n§ 195.64(c)(2)(iv), for failing to notify PHMSA within 60 days of the acquisition of an existing\npipeline facility. Although DLP did not contest the violation, the company noted that it had filed\nwith PHMSA other required annual reports and submissions pertaining to the pipeline facility\nsince its September 2017 acquisition. While Respondent’s compliance with other requirements\nof the Pipeline Safety Regulations in 49 C.F.R. Parts 191 and 195 are commendable, such\nactions do not constitute grounds to reduce the civil penalty for the company’s noncompliance\nwith this particular requirement. Accordingly, having reviewed the record and considered the\nassessment criteria, I assess Respondent a civil penalty of $19,000 for violation of 49 C.F.R.\n§ 195.64(c)(2)(iv).\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.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 $19,000 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 2, 4, and 5 in the Notice for\nviolations of 49 C.F.R. §§ 195.64(c)(2)(iv), 195.440(a), and 195.583(a), respectively. Under\n49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who\nowns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. The Director has indicated that Respondent has taken the\nfollowing actions to address several of the cited violations:\nWith regard to the violation of § 195.64(c)(2)(iv) (Item 2), Respondent filed a copy of the\nrequired acquisition notification with PHMSA on December 13, 2019. Accordingly, I find that\ncompliance has been achieved with respect to this violation. Therefore, the compliance terms\nproposed in the Notice for Item 2 is not included in this Order.\nAs for the remaining compliance terms, pursuant to the authority of 49 U.S.C. § 60118(b) and\n49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance\nwith the pipeline safety regulations applicable to its operations, within 60 days following receipt\nof this Order:\n\n\n\nCPF No. 4-2019-5018\nPage 5\n1. With respect to the violation of § 195.440(a) (Item 4), Respondent must follow\nthe general recommendations of API RP 1162, sections 2, 3, 6, and 8, including\nupdating its PAP to:\na. Provide adequate management support through its policy, participation,\nand allocation of resources, as required by § 195.440(a);\nb. Provide an update to Section 1.1.4, Pipelines Covered: Table 1-2 of its\nPAP to include all pipeline assets covered under the PAP;\nc. Define the communication coverage area (buffer) for outreach and\nnotification, delivery methods and delivery frequencies that are to be\ncovered by the written PAP. DLP must identify the audience(s) that\nreceives PAP messages in the coverage area for outreach and notification,\nin accordance with § 195.440(c);\nd. Include a procedure for a supplemental review in the written PAP, DLP\nmust consider external factors along the pipeline system and determine if\nadditional levels of public awareness communications are warranted\nbeyond the recommended baseline program in accordance with\n§ 195.440(c).\ne. Include a procedure in the written PAP that measures the bottom-line\nresults of the program by tracking third-party incidents and their\nconsequences, including: (1) “near misses,” (2) excavation damages\nresulting in pipeline failures, and (3) excavation damages that do not result\nin pipeline failures. DLP must provide bottom-line result measures, in\naccordance with § 195.440(c); and\nf. Include a procedure in the written PAP that specifies how self-assessments\nand effectiveness evaluations will be conducted. DLP must specify how\nprogram implementation and effectiveness will be evaluated, in\naccordance with § 195.440(i).\n2. With respect to the violation of § 195.583(a) (Item 5), Respondent must conduct\natmospheric corrosion inspections of exposed pipeline and pipeline facilities, as\nrequired by § 195.583(a).\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nIt is requested (not mandated) that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to the\nDirector. It is requested that these costs be reported in two categories: (1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated\n\n\n\nCPF No. 4-2019-5018\nPage 6\nwith replacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nWARNING ITEMS\nWith respect to Items 1 and 3, the Notice alleged probable violations of Part 195, but identified\nthem as warning items pursuant to § 190.205. The warnings were for:\n49 C.F.R. § 195.61 (Item 1) ─ Respondent’s alleged failure to submit National\nPipeline Mapping System (NPMS) data for the Healdton to Yantis pipeline\nsystem for calendar year 2017; and\n49 C.F.R. § 195.412(a) (Item 3) ─ Respondent’s alleged failure to inspect the\nsurface conditions on and adjacent to its pipeline right-of-way at intervals not\nexceeding 3 weeks, but at least 26 times each calendar year.\nDLP presented information in its Response showing that it had taken certain actions to address\nItem 1. Under § 190.205, PHMSA does not adjudicate warning items to determine whether a\nprobable violation occurred. If OPS finds a violation of any of these items in a subsequent\ninspection, Respondent may be subject to future enforcement action.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The other terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMay 28, 2020\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":36333}