{"operation":"document","citation":"CPF 42025001NOA","title":"VALERO TERMINALING AND DISTRIBUTION COMPANY — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-22","effective_on":null,"summary":"CLOSED notice of amendment citing 195.452(b)(1), 195.452(b)(4), 195.452(f)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025001noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025001noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025001noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42025001NOA","body":"Notice of Amendment involving VALERO TERMINALING AND DISTRIBUTION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.452(b)(1),  195.452(b)(4),  195.452(f)(3). The case was opened on 2025-05-22 and is reported as closed as of 2025-07-29. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42025001NOA_Closure Letter_07292025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025001NOA/42025001NOA_Closure%20Letter_07292025_(24-296561).pdf\n\n42025001NOA_Closure Letter_07292025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025001NOA/42025001NOA_Closure%20Letter_07292025_(24-296561)_text.pdf\n\n42025001NOA_Notice of Amendment_05222025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025001NOA/42025001NOA_Notice%20of%20Amendment_05222025_(24-296561).pdf\n\n42025001NOA_Notice of Amendment_05222025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025001NOA/42025001NOA_Notice%20of%20Amendment_05222025_(24-296561)_text.pdf\n\n42025001NOA_Operator Response to Notice_06092025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025001NOA/42025001NOA_Operator%20Response%20to%20Notice_06092025_(24-296561).pdf\n\n42025001NOA_Notice of Amendment_05222025_(24-296561)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nMay 22, 2025\nMr. Fred E. Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way,\nSan Antonio, TX 78249\nCPF 4-2025-001-NOA\nDear Mr. Hampton:\nFrom March 11 to September 27, 2024 of the video-conferenced inspection, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601\nof 49 United States Code (U.S.C.), inspected Valero Terminal and Distribution Company’s1\n(Valero) integrity management program procedures.\nAs a result of the inspection, PHMSA has identified the apparent inadequacies found within\nValero’s procedures. The item inspected and the inadequacies are described below:\n1. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(b) What program and practices must operators use to manage\npipeline integrity? Each operator of a pipeline covered by this section\nmust:\n(1) Develop a written integrity management program that\naddresses the risks on each segment of pipeline in the first column of\nthe following table no later than the date in the second column: . . . .\n(4) Include in the program a framework that –\n(i) Addresses each element of the integrity management program\nunder paragraph (f) of this section, including continual integrity\nassessment and evaluation under paragraph (j) of this section; and\n(ii) Initially indicates how decisions will be made to implement\neach element.\n1 Valero Terminal and Distribution Co. is a subsidiary of Valero Energy Corp.\n\n\n\n(5) . . . .\n(f) What are the elements of an integrity management program? An\nintegrity management program begins with the initial framework. An\noperator must continually change the program to reflect operating\nexperience, conclusions drawn from results of the integrity\nassessments, and other maintenance and surveillance data, and\nevaluation of consequences of a failure on the high consequence area.\nAn operator must include, at minimum, each of the following elements\nin its written integrity management program:\n(1) . . . .\n(3) An analysis that integrates all available information about the\nintegrity of the entire pipeline and the consequences of a failure (see\nparagraph (g) of this section);\nValero’s written integrity management program was inadequate to provide safe operation of a\npipeline facility in accordance with § 195.452(f)(3). Specifically, Valero’s Liquid Pipeline\nIntegrity Management Program (Rev. 4.5; Eff. May 1, 2024), Section 6.6. Facility Risk\nManagement, does not include an analysis that integrates all available information about the\nintegrity of the entire pipeline and the consequences of failure in periodically evaluating the\nintegrity of each pipeline segment under paragraph (g).\nTherefore, PHMSA proposes Valero revise its integrity management program procedure to include\na procedure for analyzing all information about the integrity of its entire pipeline and the\nconsequences of a failure in accordance with § 195.452(f)(3).\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 CFR § 190.206. Enclosed as part\nof this Notice is a document entitled Response Options for Pipeline Operators in Enforcement\nProceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 CFR § 190.206). If you are not contesting this\n\n\n\nNotice, we propose that you submit your amended procedures to my office within 60 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that Valero maintain documentation of the safety improvement costs\nassociated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures)\nand submit the total to Bryan Lethcoe, Director, Southwest Region, Pipeline and Hazardous\nMaterials Safety Administration. In correspondence concerning this matter, please refer to CPF 4-\n2025-001-NOA and, for each document you submit, please provide a copy in electronic format\nwhenever possible.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution\nCompany, darin.banther@valero.com\n\n42025001NOA_Closure Letter_07292025_(24-296561)_text.pdf\n\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nJuly 29, 2025\nMr. Fred E. Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way,\nSan Antonio, TX 78249\nCPF 4-2025-001-NOA\nDear Mr. Hampton:\nFrom March 11, 2024 to September 27, 2024, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted inspection of Valero Terminal and Distribution Company’s (Valero) integrity\nmanagement program procedures. As a result of the inspection, Valero was issued a Notice of\nAmendment on May 22, 2025, which proposed amendment of your procedures.\nValero submitted its amended procedures on July 23, 2025. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\nThis letter is to inform you that no further action is necessary and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Darin P. Banther, Manager Regulator Compliance, Valero Energy Corporation,\nDarin.Banther@valero.com","truncated":false,"body_characters":8289}