# CITGO PIPELINE CO — Notice of Amendment

- **operation:** document
- **citation:** CPF 42021003NOA
- **title:** CITGO PIPELINE CO — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-01-08
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.402(c)(13).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-42021003noa
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/42021003NOA
**body:**

Notice of Amendment involving CITGO PIPELINE CO. PHMSA's enforcement data identifies the cited regulation as 195.402(c)(13). The case was opened on 2021-01-08 and is reported as closed as of 2021-05-25. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

42021003NOA_Closure Letter_05252021_(20-171906).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021003NOA/42021003NOA_Closure%20Letter_05252021_(20-171906).pdf

42021003NOA_Closure Letter_05252021_(20-171906)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021003NOA/42021003NOA_Closure%20Letter_05252021_(20-171906)_text.pdf

42021003NOA_Notice of Amendment_01082021_(20-171906).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021003NOA/42021003NOA_Notice%20of%20Amendment_01082021_(20-171906).pdf

42021003NOA_Notice of Amendment_01082021_(20-171906)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021003NOA/42021003NOA_Notice%20of%20Amendment_01082021_(20-171906)_text.pdf

42021003NOA_Notice of Amendment_01082021_(20-171906)_text.pdf

NOTICE OF AMENDMENT
ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
January 8, 2021
Karl Schmidt
President
CITGO Pipeline Company
P.O. Box 4689
Houston, Texas 77210
CPF 4-2021-003-NOA
Dear Mr. Schmidt:
From July 20, 2020 through October 28, 2020, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected CITGO Pipeline
Company's (CITGO) hazardous liquid pipeline facilities, records, and procedures located in Louisiana and Texas.
Based on the inspection, PHMSA has identified the apparent inadequacy found within CITGO’s plans or
procedures as described below:
1. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) …
(c) Maintenance and normal operations. The manual required by paragraph (a) of this section must
include procedures for the following to provide safety during maintenance and normal operations:
(1) …
(13) Periodically reviewing the work done by operator personnel to determine the effectiveness of
the procedures used in normal operation and maintenance and taking corrective action where
deficiencies are found.
CITGO’s Terminal and Pipeline Operations Manual (All Areas) Revision Date 5/27/2020 is inadequate
because it does not limit the review required by § 195.402(c)(13) to the performance of its employees
while following a specific procedure used in normal operations and maintenance. Specifically, the section
titled “Implementation – Responsibility” of CITGO’s procedure states “If deficiencies are found regarding
an employee’s work practices or failure to follow the procedures in this manual, MANAGEMENT will
take corrective actions to assure the quality of future work. MANAGEMENT shall document these
reviews through the Employee Development Plan (EDP) annual assessment process or they may utilize
forms provided on SHAREPOINT for this purpose.” The procedure does not provide a means to evaluate
the effectiveness of the procedure itself or provide a process to modify the procedures as needed following
the effectiveness review. Instead, the procedure focuses on the employee’s individual performance.
An operator is required to periodically review the work done by its employees to determine the
effectiveness of the procedures used in normal operation and maintenance activities. CITGO procedures
do not specify how the periodic review will be conducted. CITGO must amend its procedure to ensure



2
that CITGO periodically reviews the work done by its employees during the normal operations and
maintenance to determine if the procedure was or was not effective rather than if the employee’s
performance was.
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as part of this
Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer
to this document and note the response options. Be advised that all material you submit in response to this
enforcement action is subject to being made publicly available. If you believe that any portion of your responsive
material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document
you must provide a second copy of the document with the portions you believe qualify for confidential treatment
redacted and an explanation of why you believe the redacted information qualifies for confidential treatment
under 5 U.S.C. 552(b).
Following the receipt of this Notice, you have 30 days to submit written comments, revised procedures, or a
request for a hearing under § 190.211. If you do not respond within 30 days of receipt of this Notice, this
constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate
Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue
an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you
may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are
not contesting this Notice, we propose that you submit your amended procedures to my office within 60 days of
receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies
identified herein have been addressed in your amended procedures, this enforcement action will be closed.
It is requested (not mandated) that CITGO Pipeline Company maintain documentation of the safety improvement
costs associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit
the total to Mary L. McDaniel, Director, Southwest Region, Pipeline and Hazardous Materials Safety
Administration. In correspondence concerning this matter, please refer to CPF 4-2021-003-NOA, and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Mary L. McDaniel. P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings

42021003NOA_Closure Letter_05252021_(20-171906)_text.pdf

ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
May 25, 2021
Karl Schmidt
President
CITGO Pipeline Company
P.O. Box 4689
Houston, Texas 77210
CPF 4-2021-003 NOA
Dear Mr. Schmidt:
From July 20, 2020 through October 28, 2020, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
(U.S.C.) inspected CITGO Pipeline Company's (CITGO) hazardous liquid pipeline facilities,
records, and procedures located in Louisiana and Texas via a remote inspection. As a result of the
inspection, CITGO was issued a Notice of Amendment on January 8, 2021, which required
amendments to its procedures. On May 5, 2021, CITGO submitted its amended procedures to its
operations and maintenance plan. PHMSA reviewed the updated procedures, and it appears that
the inadequacies outlined in this Notice of Amendment have been corrected.
This letter is to inform you no further action is necessary, and this case is now closed. Thank you
for your cooperation.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
cc: John McCrossin, Manager, EHS&S, jmccros@citgo.com
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