{"operation":"document","citation":"CPF 42023031NOPV","title":"VALERO TERMINALING AND DISTRIBUTION COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-04-20","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.505(i), 195.573(d), 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023031nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023031nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42023031nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42023031NOPV","body":"Notice of Probable Violation involving VALERO TERMINALING AND DISTRIBUTION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.505(i),  195.573(d),  195.583(a). The case was opened on 2023-04-20 and is reported as closed as of 2024-03-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42023031NOPV_Final Order_03052024_(22-242818).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023031NOPV/42023031NOPV_Final%20Order_03052024_(22-242818).pdf\n\n42023031NOPV_Final Order_03052024_(22-242818)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023031NOPV/42023031NOPV_Final%20Order_03052024_(22-242818)_text.pdf\n\n42023031NOPV_Operator Response to Notice_05162023_(22-242818).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023031NOPV/42023031NOPV_Operator%20Response%20to%20Notice_05162023_(22-242818).pdf\n\n42023031NOPV_PCO_04202023_(22-242818).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023031NOPV/42023031NOPV_PCO_04202023_(22-242818).pdf\n\n42023031NOPV_PCO_04202023_(22-242818)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42023031NOPV/42023031NOPV_PCO_04202023_(22-242818)_text.pdf\n\n42023031NOPV_Final Order_03052024_(22-242818)_text.pdf\n\nMarch 5, 2024\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nFred Hampton\nVice President, Pipeline and Terminals\nValero Terminaling and Distribution Company\nOne Valero Way\nSan Antonio, Texas 78249\nRe: CPF No. 4-2023-031-NOPV\nDear Mr. Hampton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and finds that Valero Terminaling and Distribution Company (Valero) has completed\nthe actions specified in the Notice to comply with the pipeline safety regulations. Therefore, this\ncase is now closed. Service of the Final Order by e-mail is effective upon the date of\ntransmission and acknowledgement of receipt 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: Mr. Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Carlos Guana, Director, Pipeline Facility Integrity, Valero, carlos.guana@valero.com\nMr. Darin Banther, Manager, Regulatory Compliance, Valero, darin.banther@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 Terminaling and Distribution Co., ) CPF No. 4-2023-031-NOPV\n)\n)\n)\nRespondent. )\n______________________________________)\nFINAL ORDER\nFrom May 16 through June 24, 2022, pursuant to 49 U.S.C. § 60117, representatives of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Valero\nTerminaling and Distribution Company’s (Valero or Respondent) transmission pipeline system\nin Alsip, Illinois and Hammond, Indiana.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 20, 2023, 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 committed one violation of 49 C.F.R. Part 195 and proposed ordering\nRespondent to take certain measures to correct the alleged violation. The Notice also included\nan additional two warning items pursuant to 49 C.F.R. § 190.205, which warned Valero to\ncorrect the probable violations or face possible future enforcement action.\nRespondent responded to the Notice by letter dated May 16, 2023 (Response). Respondent did\nnot contest the violation, but requested modification to the proposed compliance order.\nRespondent provided additional information regarding actions taken to comply with its proposed\nmodified compliance terms on July 3, 2023 (Supplemental Response). The Respondent did not\nrequest a hearing and therefore waived its right to one.\nFINDING 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. § 195.573(d), which states:\n§ 195.573 What must I do to monitor corrosion control?\n(a)….\n\n\n\n(d) Breakout tanks. You must inspect each cathodic protection system\nused to control corrosion on the bottom of an aboveground breakout tank\nto ensure that operation and maintenance of the system are in accordance\nwith API RP 651 (incorporated by reference, see § 195.3). However, this\ninspection is not required if you note in the corrosion control procedures\nestablished under § 195.402(c)(3) why complying with all or certain\noperation and maintenance provisions of API RP 651 is not necessary for\nthe safety of the tank.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.573(d) by failing to inspect each\ncathodic protection system used to control corrosion on the bottom of an aboveground breakout\ntank to ensure that operation and maintenance of the system are in accordance with API RP 651.\nSpecifically, the Notice alleged that Valero failed to inspect the cathodic protection system on\nthe bottom of aboveground breakout tank #1 at Hammond Terminal for calendar years 2019 and\n2021. The Notice also alleged Respondent inspected the cathodic protection system on breakout\ntank #1 on May 14, 2020, and many of the cathodic protection readings were below criteria.\nIn its Response, Respondent did not contest the underlying allegation. Accordingly, after\nconsidering all of the evidence, I find that Respondent violated 49 C.F.R. § 195.573(d) by failing\nto inspect each cathodic protection system used to control corrosion on the bottom of an\naboveground breakout tank.\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 2 in the Notice for a violation of\n49 C.F.R. § 195.573(d). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601.\nWith respect to the violation of § 195.573(d) (Item 2), Respondent requested modification of the\nproposed compliance order. Valero requested that the proposed compliance order be modified to\nrequire that breakout tank #1 at Hammond Terminal be formally removed from DOT Service\nthrough a Management of Change (MOC). Respondent also provided documentation to show it\nhad taken actions to complete the proposed modified compliance terms. In a Region\nRecommendation dated October 18, 2023, the Director recommended modifying the Compliance\nOrder as proposed by Respondent.\nThe Director indicated that Respondent has taken the following actions specified in the proposed\ncompliance order:\n1. With respect to the violation of § 195.573(d) (Item 2), Respondent has\nsubmitted a MOC #205534 that was completed to remove all Part 195\noperations, maintenance, and reporting requirements related to breakout tank #1\n\n\n\nat Hammond Terminal. Breakout tank #1 at Hammond Terminal has been\nremoved from service in October 2018, has not been operated since that time,\nand has been formally removed from DOT service through the MOC.\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\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. § 195.505(a)(i) (Item 1) ─ Respondent’s alleged failure to follow its\nwritten qualification program in accordance with § 195.505. Specifically, Valero\nfailed to notify the Texas Railroad Commission (TRRC) of significant\nmodifications of its Operator Qualification Program (OQ Program) in 2021 in\naccordance with § 195.505 and section 2.7.2 of its OQ Program; and\n49 C.F.R. § 195.583(a) (Item 3) ─ Respondent’s alleged failure to inspect each\npipeline or portion of pipeline that is exposed to the atmosphere for evidence of\natmospheric corrosion at least once every three calendar years, but with intervals\nnot exceeding 39 months, in accordance with § 195.583(a). Specifically, for the\nEast Chicago 12-inch pipeline, Hammond 8-inch pipeline, and Natural Gasoline\n6-inch pipeline, Valero conducted atmospheric corrosion inspections at a 41-\nmonth interval.\nIf OPS finds a violation of any of these items in a subsequent inspection, Respondent may be\nsubject 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. The written petition must be received no later than\n20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a\nstatement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The terms of\nthe order, including corrective action, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nMarch 5, 2024\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":9809}