{"operation":"document","citation":"CPF 42020019WL","title":"VALERO PARTNERS OPERATING CO. LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-12-10","effective_on":null,"summary":"CLOSED warning letter citing 195.49.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42020019wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42020019wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42020019wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42020019WL","body":"Warning Letter involving VALERO PARTNERS OPERATING CO. LLC. PHMSA's enforcement data identifies the cited regulation as 195.49. The case was opened on 2020-12-10 and is reported as closed as of 2020-12-10. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42020019WL_Warning Letter_12102020_(20-182839).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020019WL/42020019WL_Warning%20Letter_12102020_(20-182839).pdf\n\n42020019WL_Warning Letter_12102020_(20-182839)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020019WL/42020019WL_Warning%20Letter_12102020_(20-182839)_text.pdf\n\n42020019WL_Warning Letter_12102020_(20-182839)_text.pdf\n\nWARNING LETTER\nELECTRONIC MAIL\nDecember 10, 2020\nFred Hampton\nVice President\nValero Partners Operating Company, LLC\nOne Valero Way\nSan Antonio, Texas 78249\nCPF 4-2020-019-WL\nDear Mr. Hampton:\nOn August 20, 2020, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nyour Lucas Terminal facility in Beaumont, Texas.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. §195.49 Annual report\nEach operator must annually complete and submit DOT Form PHMSA F 7000-1.1\nfor each type of hazardous liquid pipeline facility operated at the end of the previous\nyear. An operator must submit the annual report by June 15 each year, except that\nfor the 2010 reporting year the report must be submitted by August 15, 2011. A\nseparate report is required for crude oil, HVL (including anhydrous ammonia),\npetroleum products, carbon dioxide pipelines, and fuel grade ethanol pipelines. For\neach state a pipeline traverses, an operator must separately complete those sections\non the form requiring information to be reported for each state.\nValero Partners Operating, LLC (Valero) failed to determine the correct regulatory authority for\nits Lucas Terminal facility and file the correct PHMSA annual report PHMSA F 7000-1.1. Valero\nlisted the Lucas Terminal facility as an intrastate asset under the intrastate regulatory authority of\nthe Railroad Commission of Texas for 2017, 2018, and 2019.\n\n\n\n2\nPHMSA has determined that the Lucas Terminal facility is an interstate pipeline facility subject to\nthe regulatory authority of PHMSA as described in § 195.1. More specifically, this facility is used\nas surge relief from an interstate pipeline, as well as receiving and delivering commodity to\ninterstate pipeline facilities.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 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\npenalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015,\nthe maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. We have reviewed the circumstances\nand supporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct the\nitem identified in this letter. Failure to do so will result in Valero Partners Operating Company,\nLLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2020-019-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: James Trevino, Manager Regulatory Compliance, Valero, james.trevino@valero.com","truncated":false,"body_characters":4756}