{"operation":"document","citation":"CPF 420205001","title":"VALERO PARTNERS OPERATING CO. LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-01-08","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.452(j)(1), 195.452(j)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420205001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420205001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420205001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420205001","body":"Notice of Probable Violation involving VALERO PARTNERS OPERATING CO. LLC. PHMSA's enforcement data identifies the cited regulations as 195.452(j)(1),  195.452(j)(2). The case was opened on 2020-01-08 and is reported as closed as of 2020-10-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420205001_Closure Letter_10012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Closure%20Letter_10012020.pdf\n\n420205001_Closure Letter_10012020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Closure%20Letter_10012020_text.pdf\n\n420205001_Final Order_07212020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Final%20Order_07212020.pdf\n\n420205001_Final Order_07212020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Final%20Order_07212020_text.pdf\n\n420205001_NOPV PCO_01082020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_NOPV%20PCO_01082020.pdf\n\n420205001_NOPV PCO_01082020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_NOPV%20PCO_01082020_text.pdf\n\n420205001_Operator Response to Notice and Request Time Extension_02072020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Operator%20Response%20to%20Notice%20and%20Request%20Time%20Extension_02072020.pdf\n\n420205001_Closure Letter_10012020_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nOctober 1, 2020\nFred Hampton\nVice President\nValero Partners Operating Company, LLC\nOne Valero Way\nSan Antonio, Texas 78249\nCPF 4-2020-5001\nDear Mr. Hampton:\nOn July 21, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Valero Operating Company, LLC (Valero), a Final Order in the above-referenced case. This\nOrder included a Compliance Order. Based on PHMSA’s review of the documentation provided\non September 3, 2020, it has been determined that Valero 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\n420205001_Final Order_07212020_text.pdf\n\nJuly 21, 2020\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nMr. Fred Hampton\nVice President\nValero Operating Company, LLC\nOne Valero Way\nSan Antonio, Texas 78249\nRe: CPF No. 4-2020-5001\nDear Mr. Hampton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and specifies actions that need to be taken by Valero Operating Company, LLC to\ncomply with the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Service of the Final Order by electronic mail is effective upon the date of transmission as\nprovided 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. James Trevino, Manager – Regulatory Programs and Permitting, Valero Operating\nCompany, LLC, james.trevino@valero.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 )\nValero Operating Company, LLC, ) CPF No. 4-2020-5001\na subsidiary of Valero Energy Corporation, )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom December 10, 2018 through August 9, 2019, 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 Valero Operating Company, LLC’s (Valero or Respondent) Panhandle Crude System\nin Oklahoma and Texas. Valero operates approximately 435 miles of hazardous liquid pipelines\ntransporting crude oil and refined products to support refinery operations. Valero is a subsidiary\nof Valero Energy Corporation, which is primarily a refiner that operates 10 hazardous liquid and\ngas pipeline companies including Valero.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated January 8, 2020, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Valero had violated 49 C.F.R. § 195.452 and proposed ordering Respondent to take\ncertain measures to correct the alleged violation.\nValero responded to the Notice by letter dated February 7, 2020 (Response). The company did\nnot contest the allegation of violation but provided information concerning the corrective actions\nit had taken and requested modification to the proposed compliance order. Respondent did not\nrequest a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Valero did not contest the allegation in the Notice that it violated 49 C.F.R. Part\n195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.452(j)(2), which states:\n1 See Pipeline Violation Safety Report, at 1 (on file with PHMSA).\n\n\n\nCPF No. 4-2020-5001\nPage 2\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(j) What is a continual process of evaluation and assessment to maintain\na pipeline's integrity?\n(2) Evaluation. An operator must conduct a periodic evaluation as\nfrequently as needed to assure pipeline integrity. An operator must base the\nfrequency of evaluation on risk factors specific to its pipeline, including the\nfactors specified in paragraph (e) of this section. The evaluation must\nconsider the results of the baseline and periodic integrity assessments,\ninformation analysis (paragraph (g) of this section), and decisions about\nremediation, and preventive and mitigative actions (paragraphs (h) and (i)\nof this section).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.452(j)(2) by failing to conduct\nperiodic evaluations as frequently as needed to ensure the integrity of each covered segment\nbased on the results of the risk assessments. Specifically, the Notice allege that Valero failed to\nreanalyze and reevaluate the need for Emergency Flow Restrictive Device (EFRD) locations to\ndetermine if the EFRDs would mitigate or enhance public safety in the current high consequence\narea (HCA) segments.\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. § 195.452(j)(2) by failing to conduct\nperiodic evaluations as frequently as needed to ensure the integrity of each covered segment\nbased on the results of the risk assessments.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 195.452(j)(2). 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.\nWith regard to the violation of § 195.452(j)(2) (Item 1), Respondent argued the compliance\nterms should be modified on two specific grounds. First, Valero argued that the proposed\ncompliance order should be modified because the violation relates to Valero’s failure to\ncomplete an updated EFRD evaluation. Valero stated that it remediated that violation by\nconducting the study in August 2019, and that it independently concluded that it would install the\nEFRD identified in the August 2019 evaluation by July 2020. Second, Valero objected to the\nproposed compliance order requirement of installing the EFRD within 60 days of a final order\nbeing issued on the grounds that it has already put plans in place to install the EFRD by July\n2020. Accordingly, Valero requested six months following the issuance of a final order to\ncomplete the check valve installation. The Director did not object to Valero’s request to modify\nthe terms of the proposed compliance order.\n\n\n\nCPF No. 4-2020-5001\nPage 3\nFor the above reasons, the Compliance Order is modified as set forth below.\nPursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is\nordered to take the following actions to ensure compliance with the pipeline safety regulations\napplicable to its operations:\n1. With respect to the violation of § 195.452(j)(2) (Item 1), Respondent must:\na. Valero must install the EFRD as identified in their August 9, 2019, HCA and\nEFRD analysis report.\nb. Valero must complete Item 1 within 6 months of receipt of the Final Order.\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\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.\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 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.\nJuly 21, 2020\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":11064}