# VALERO PARTNERS OPERATING CO. LLC — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

420205001_Closure Letter_10012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Closure%20Letter_10012020.pdf

420205001_Closure Letter_10012020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Closure%20Letter_10012020_text.pdf

420205001_Final Order_07212020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Final%20Order_07212020.pdf

420205001_Final Order_07212020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_Final%20Order_07212020_text.pdf

420205001_NOPV PCO_01082020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_NOPV%20PCO_01082020.pdf

420205001_NOPV PCO_01082020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205001/420205001_NOPV%20PCO_01082020_text.pdf

420205001_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

420205001_Closure Letter_10012020_text.pdf

ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
October 1, 2020
Fred Hampton
Vice President
Valero Partners Operating Company, LLC
One Valero Way
San Antonio, Texas 78249
CPF 4-2020-5001
Dear Mr. Hampton:
On July 21, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to Valero Operating Company, LLC (Valero), a Final Order in the above-referenced case. This
Order included a Compliance Order. Based on PHMSA’s review of the documentation provided
on September 3, 2020, it has been determined that Valero complied with the terms of this Order.
Accordingly, this case is now closed, and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration

420205001_Final Order_07212020_text.pdf

July 21, 2020
VIA ELECTRONIC MAIL TO: fred.hampton@valero.com
Mr. Fred Hampton
Vice President
Valero Operating Company, LLC
One Valero Way
San Antonio, Texas 78249
Re: CPF No. 4-2020-5001
Dear Mr. Hampton:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and specifies actions that need to be taken by Valero Operating Company, LLC to
comply with the pipeline safety regulations. When the terms of the compliance order have been
completed, as determined by the Director, Southwest Region, this enforcement action will be
closed. Service of the Final Order by electronic mail is effective upon the date of transmission 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, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. James Trevino, Manager – Regulatory Programs and Permitting, Valero Operating
Company, LLC, james.trevino@valero.com
CONFIRMATION OF 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 )
Valero Operating Company, LLC, ) CPF No. 4-2020-5001
a subsidiary of Valero Energy Corporation, )
)
)
)
Respondent. )
__________________________________________)
FINAL ORDER
From December 10, 2018 through August 9, 2019, pursuant to 49 U.S.C. § 60117,
representatives 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 Valero Operating Company, LLC’s (Valero or Respondent) Panhandle Crude System
in Oklahoma and Texas. Valero operates approximately 435 miles of hazardous liquid pipelines
transporting crude oil and refined products to support refinery operations. Valero is a subsidiary
of Valero Energy Corporation, which is primarily a refiner that operates 10 hazardous liquid and
gas pipeline companies including Valero.1
As a result of the inspection, the Director, Southwest Region, OPS (Director), issued to
Respondent, by letter dated January 8, 2020, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that Valero had violated 49 C.F.R. § 195.452 and proposed ordering Respondent to take
certain measures to correct the alleged violation.
Valero responded to the Notice by letter dated February 7, 2020 (Response). The company did
not contest the allegation of violation but provided information concerning the corrective actions
it had taken and requested modification to the proposed compliance order. Respondent did not
request a hearing and therefore has waived its right to one.
FINDING OF VIOLATION
In its Response, Valero 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. § 195.452(j)(2), which states:
1 See Pipeline Violation Safety Report, at 1 (on file with PHMSA).



CPF No. 4-2020-5001
Page 2
§ 195.452 Pipeline integrity management in high consequence areas.
(a) . . . .
(j) What is a continual process of evaluation and assessment to maintain
a pipeline's integrity?
(2) Evaluation. An operator must conduct a periodic evaluation as
frequently as needed to assure pipeline integrity. An operator must base the
frequency of evaluation on risk factors specific to its pipeline, including the
factors specified in paragraph (e) of this section. The evaluation must
consider the results of the baseline and periodic integrity assessments,
information analysis (paragraph (g) of this section), and decisions about
remediation, and preventive and mitigative actions (paragraphs (h) and (i)
of this section).
The Notice alleged that Respondent violated 49 C.F.R. § 195.452(j)(2) by failing to conduct
periodic evaluations as frequently as needed to ensure the integrity of each covered segment
based on the results of the risk assessments. Specifically, the Notice allege that Valero failed to
reanalyze and reevaluate the need for Emergency Flow Restrictive Device (EFRD) locations to
determine if the EFRDs would mitigate or enhance public safety in the current high consequence
area (HCA) segments.
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. § 195.452(j)(2) by failing to conduct
periodic evaluations as frequently as needed to ensure the integrity of each covered segment
based on the results of the risk assessments.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of
49 C.F.R. § 195.452(j)(2). Under 49 U.S.C. § 60118(a), each person who engages in the
transportation of hazardous liquids or who owns or operates a pipeline facility is required to
comply with the applicable safety standards established under chapter 601.
With regard to the violation of § 195.452(j)(2) (Item 1), Respondent argued the compliance
terms should be modified on two specific grounds. First, Valero argued that the proposed
compliance order should be modified because the violation relates to Valero’s failure to
complete an updated EFRD evaluation. Valero stated that it remediated that violation by
conducting the study in August 2019, and that it independently concluded that it would install the
EFRD identified in the August 2019 evaluation by July 2020. Second, Valero objected to the
proposed compliance order requirement of installing the EFRD within 60 days of a final order
being issued on the grounds that it has already put plans in place to install the EFRD by July
2020. Accordingly, Valero requested six months following the issuance of a final order to
complete the check valve installation. The Director did not object to Valero’s request to modify
the terms of the proposed compliance order.



CPF No. 4-2020-5001
Page 3
For the above reasons, the Compliance Order is modified as set forth below.
Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is
ordered to take the following actions to ensure compliance with the pipeline safety regulations
applicable to its operations:
1. With respect to the violation of § 195.452(j)(2) (Item 1), Respondent must:
a. Valero must install the EFRD as identified in their August 9, 2019, HCA and
EFRD analysis report.
b. Valero must complete Item 1 within 6 months of receipt of the Final Order.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
It is requested (not mandated) that Respondent maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the total to the
Director. It is requested that these costs be reported in two categories: (1) total cost associated
with preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated
with replacements, additions and other changes to pipeline infrastructure.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for
each day the violation continues or in referral to the Attorney General for appropriate relief in a
district court of the United States.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this
Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and
meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective
action, remain in effect unless the Associate Administrator, upon request, grants a stay.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
July 21, 2020
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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