{"operation":"document","citation":"CPF 42025002NOPV","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":"2025-05-15","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.403(b)(1), 195.403(c), 195.583(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025002nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025002nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025002nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42025002NOPV","body":"Notice of Probable Violation involving VALERO TERMINALING AND DISTRIBUTION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.403(b)(1),  195.403(c),  195.583(c). The case was opened on 2025-05-15 and is reported as closed as of 2025-09-29. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42025002NOPV_Closure Letter_09292025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Closure%20Letter_09292025_(24-296561).pdf\n\n42025002NOPV_Closure Letter_09292025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Closure%20Letter_09292025_(24-296561)_text.pdf\n\n42025002NOPV_Final Order_07222025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Final%20Order_07222025_(24-296561).pdf\n\n42025002NOPV_Final Order_07222025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Final%20Order_07222025_(24-296561)_text.pdf\n\n42025002NOPV_Operator Response to Notice_06092025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Operator%20Response%20to%20Notice_06092025_(24-296561).pdf\n\n42025002NOPV_PCO_05152025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_PCO_05152025_(24-296561).pdf\n\n42025002NOPV_PCO_05152025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_PCO_05152025_(24-296561)_text.pdf\n\n42025002NOPV_Final Order_07222025_(24-296561)_text.pdf\n\nJuly 22, 2025\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nMr. Fred E. Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way\nSan Antonio, Texas 78249\nRe: CPF No. 4-2025-002-NOPV\nDear Mr. Hampton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken to comply with the pipeline safety\nregulations. When the terms of the compliance order are completed, as determined by the\nDirector, Southwest Region, this enforcement action will be closed. Service of the Final Order\nby e-mail is effective upon the date of transmission and acknowledgement of receipt as provided\nunder 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\n\n\n\ncc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety\nDarin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution\nCompany, 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 Energy Corporation, ) CPF No. 4-2025-002-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May 15, 2025, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Valero Energy\nCorporation (Respondent). The Notice proposed finding that Respondent had violated the\npipeline safety regulations in 49 CFR Part 195. The Notice also proposed certain measures to\ncorrect the violations. Respondent did not contest the allegations of violation or corrective\nmeasures.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\n49 CFR § 195.403(b)(1) (Item 1) ─ Respondent failed to, at intervals not\nexceeding 15 months, but at least once each calendar year, review with its\npersonnel their performance in meeting the objectives of the emergency response\ntraining program.\n49 CFR § 195.403(c) (Item 2) ─ Respondent failed to verify that its supervisors\nmaintain a thorough knowledge of that portion of the emergency response\nprocedures established under § 195.402 for which they are responsible to ensure\ncompliance.\n49 CFR § 195.583(c) (Item 3) ─ Respondent failed to, upon finding atmospheric\ncorrosion during an inspection, provide protection against the corrosion.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\n\n\n\nCompliance Actions\nIn its June 13, 2025 response, Respondent submitted evidence to show appropriate actions have\nbeen taken to correct the violation alleged for Notice Item 2. The Director, PHMSA Southwest\nRegion, Office of Pipeline Safety, has reviewed this evidence and has found that the proposed\ncompliance actions have been completed. No further compliance actions are necessary to\nremediate the violation alleged for Notice Item 2.\nPursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violations alleged in Notice Items 1 and 3.\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. Upon completion of the ordered actions, Respondent may request that the Director\nclose the case. Failure to comply with this Order may result in the assessment of civil penalties\nunder 49 CFR § 190.223 or in referral to the Attorney General for appropriate relief in a district\ncourt of the United States.\nThe terms and conditions of this order are effective upon service in accordance with 49 CFR\n§ 190.5.\n___________________________________ _________________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\n\n\n\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nMay 15, 2025\nMr. Fred E. Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way,\nSan Antonio, TX 78249\nCPF 4-2025-002-NOPV\nDear Mr. Hampton:\nFrom March 11 to September 27, 2024 of the on-site inspection, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\npursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected Valero Terminal and\nDistribution Company’s1 (Valero) hazardous liquid pipeline facilities in Oklahoma, Louisiana, and\nTexas.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 195.403 Emergency response training.\n(a) . . . .\n(b) At the intervals not exceeding 15 months, but at least once\neach calendar year, each operator shall:\n(1) Review with personnel their performance in meeting the\nobjectives of the emergency response training program set forth in\nparagraph (a) of this section; . . . .\n1 Valero Terminal and Distribution Co. is a subsidiary of Valero Energy Corp.\n\n\n\nValero failed to, at intervals not exceeding 15 months, but at least once each calendar year, review\nwith its personnel their performance in meeting the objectives of the emergency response training\nprogram set forth in paragraph (a) in accordance with § 195.403(b)(1).\n2 Specifically, Valero\ncompleted post-exercise evaluations for drill exercises completed in calendar years 2021, 2022,\nand 2023, but did not provide records demonstrating that it had reviewed the performance of its\nemergency response personnel in meeting each element of the continuing training program under\n§ 195.403(a).\nValero’s procedure, Emergency Response Training (Doc. No. OML-P610) (Rev. 7.0; Dec. 1,\n2022), section 5.2.2 Program Content, describes Valero’s continuing training program and\nrequires Valero to review with personnel their performance in meeting the objectives of its\nprogram. The records provided by Valero show that it did not perform a complete review of the\nperformance of its personnel in meeting the objectives of its continuing training program. The\npost-drill evaluations provide evidence of training employees to carry out Valero’s emergency\nprocedures, but do not include performance reviews of all required continuing training program\nelements under Valero’s procedure and § 195.403(a).\nTherefore, Valero failed to, at intervals not exceeding 15 months, but at least once each calendar\nyear, review with its personnel their performance in meeting the objectives of the emergency\nresponse training program set forth in paragraph (a) in accordance with § 195.403(b)(1).\n2. § 195.403 Emergency response training.\n(a) . . . .\n(c) Each operator shall require and verify that its supervisors\nmaintain a thorough knowledge of that portion of the emergency\nresponse procedures established under 195.402 for which they are\nresponsible to ensure compliance.\nValero failed to verify that its supervisors maintain a thorough knowledge of that portion of the\nemergency response procedures established under 195.402 for which they are responsible to ensure\ncompliance in accordance with § 195.403(c).3 Specifically, Valero failed to provide any records\ndemonstrating compliance with § 195.403(c) for calendar years 2021, 2022, and 2023.\n2 Section 195.403(a) requires operators to establish and conduct a continuing training program to instruct emergency\nresponse personnel to: (1) carry out emergency procedures related to their assignments; (2) know the characteristics\nand hazards of the hazardous liquid transported; (3) recognize potential emergency conditions, predict consequences\nof emergencies, and take appropriate corrective action; (4) take steps necessary to control any accidental release of\nhazardous liquid and minimize potential consequences; and (5) learn potential causes, sizes, and consequences of\nfire and appropriate use of portable fire extinguishers and other fire control equipment.\n3 Section 195.402(e) requires operators to have and follow for each pipeline a manual of written procedures to\nprovide safety when an emergency condition occurs.\n\n\n\n3. § 195.583 What must I do to monitor atmospheric corrosion control?\n(a) . . . .\n(c) If you find atmospheric corrosion during an inspection, you\nmust provide protection against the corrosion as required by §\n195.581.\nValero failed to, upon finding atmospheric corrosion during an inspection, provide protection\nagainst the corrosion in accordance with § 195.583(c). Specifically, Valero failed to maintain an\nadequate protective coating as required by § 195.581 on its facility manifold tied to the pumping\nunits at the McKee refinery pump station in McKee, Texas. During the inspection, PHMSA\nobserved areas of disbonded coating and surface corrosion on the facility manifold.\nTherefore, Valero failed to, upon finding atmospheric corrosion during an inspection, provide\nprotection against the corrosion in accordance with § 195.583(c).\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a related\nseries of violations. For violation occurring on or after December 28, 2023 and before December\n30, 2024, the maximum penalty may not exceed $266,015 per violation per day the violation\npersists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring\non or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related\nseries of violations. For violation occurring on or after March 21, 2022 and before January 6,\n2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists,\nup to a maximum of $2,391,412 for a related series of violations. For violation occurring on or\nafter May 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134\nper violation per day the violation persists, up to a maximum of $2,251,334 for a related series of\nviolations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to propose a civil penalty assessment at this time.\nProposed Compliance Order\nWith respect to Items 1, 2, and 3 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Valero. Please refer to\nthe Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement Proceedings. Please refer to this document and note the response options. All\n\n\n\nmaterial you submit in response to this enforcement action may be 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 your receipt of this Notice, you have 30 days to respond as described in the enclosed\nResponse Options. If you do not respond within 30 days of receipt of this Notice, this constitutes\na waiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order. If you are responding to this Notice, we propose that you submit\nyour correspondence to my office within 30 days from receipt of this Notice. The Region Director\nmay extend the period for responding upon a written request timely submitted demonstrating good\ncause for an extension.\nIn your correspondence on this matter, please refer to CPF 4-2025-002-NOPV and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution\nCompany, darin.banther@valero.com\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), proposes to issue to Valero Terminal and Distribution Company\n(Valero) a Compliance Order incorporating the following remedial requirements to ensure the\ncompliance of Valero with the pipeline safety regulations:\nA. B. C. D. In regard to Item 1 of the Notice pertaining to Valero’s failure to review with its\npersonnel their performance in meeting the objectives of the emergency response\ntraining program set forth in § 195.403(a) in accordance with § 195.403(b)(1),\nValero must review with each emergency responder their performance in meeting\nthe objectives of its emergency response continuing training program, make\nappropriate changes to the emergency response training program as necessary to\nensure that it is effective, and provide records demonstrating that the performance\nreviews were completed, and records of any necessary changes made to the\nprogram to the Director, Southwest Region, within 60 days of receipt of the Final\nOrder.\nIn regard to Item 2 of the Notice pertaining to Valero’s failure to require and verify\nthat its supervisors maintain a thorough knowledge of that portion of the emergency\nresponse procedures for which they are responsible to ensure compliance in\naccordance with § 195.403(c), Valero must evaluate each supervisor’s knowledge\nof Valero’s emergency response procedures for which they are responsible and\nprovide training as necessary to ensure supervisors have a thorough knowledge of\ntheir responsibilities, and must provide records documenting the evaluations and\nany training conducted to the Director, Southwest Region, within 60 days of receipt\nof the Final Order.\nIn regard to Item 3 of the Notice pertaining to Valero’s failure to, upon finding\natmospheric corrosion during an inspection, provide protection against the\ncorrosion in accordance with § 195.583(c), Valero must remediate any corrosion,\nand clean and coat the pipeline facilities at the McKee, Texas, pump station, and\nprovide documentation of the repairs and re-coating to the Director, Southwest\nRegion, within 60 days of receipt of the Final Order.\nIt is requested (not mandated) that Valero maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to Bryan Lethcoe, Director, Southwest Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in two\ncategories: 1) total cost associated with preparation/revision of plans, procedures,\nstudies and analyses, and 2) total cost associated with replacements, additions and\nother changes to pipeline infrastructure.\n\n42025002NOPV_Closure Letter_09292025_(24-296561)_text.pdf\n\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nSeptember 29, 2025\nFred Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way\nSan Antonio, TX 78249\nCPF 4-2025-002-NOPV\nDear Mr. Hampton:\nOn July 22, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Valero Energy Corporation (Valero), a Final Order in the above-referenced case. This Order\nincluded a Compliance Order requirement to take corrective actions on your pipeline. Based on\nour review of the documentation you provided, it has been determined that you have complied\nwith 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,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution\nCompany, darin.banther@valero.com","truncated":false,"body_characters":18976}