# VALERO TERMINALING AND DISTRIBUTION COMPANY — Notice of Probable Violation

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

Official case documents:

42025002NOPV_Closure Letter_09292025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Closure%20Letter_09292025_(24-296561).pdf

42025002NOPV_Closure Letter_09292025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Closure%20Letter_09292025_(24-296561)_text.pdf

42025002NOPV_Final Order_07222025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Final%20Order_07222025_(24-296561).pdf

42025002NOPV_Final Order_07222025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_Final%20Order_07222025_(24-296561)_text.pdf

42025002NOPV_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

42025002NOPV_PCO_05152025_(24-296561).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_PCO_05152025_(24-296561).pdf

42025002NOPV_PCO_05152025_(24-296561)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025002NOPV/42025002NOPV_PCO_05152025_(24-296561)_text.pdf

42025002NOPV_Final Order_07222025_(24-296561)_text.pdf

July 22, 2025
VIA ELECTRONIC MAIL TO: fred.hampton@valero.com
Mr. Fred E. Hampton
Vice President, Pipeline & Terminals
Valero Energy Corporation
One Valero Way
San Antonio, Texas 78249
Re: CPF No. 4-2025-002-NOPV
Dear Mr. Hampton:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken to comply with the pipeline safety
regulations. When the terms of the compliance order are completed, as determined by the
Director, Southwest Region, this enforcement action will be closed. Service of the Final Order
by e-mail is effective upon the date of transmission and acknowledgement of receipt as provided
under 49 CFR § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Linda Daugherty
Acting Associate Administrator
for Pipeline Safety
Enclosures (Final Order and NOPV)



cc: Bryan Lethcoe, Director, Southwest Region, Office of Pipeline Safety
Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution
Company, darin.banther@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 Energy Corporation, ) CPF No. 4-2025-002-NOPV
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
On May 15, 2025, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of
Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Valero Energy
Corporation (Respondent). The Notice proposed finding that Respondent had violated the
pipeline safety regulations in 49 CFR Part 195. The Notice also proposed certain measures to
correct the violations. Respondent did not contest the allegations of violation or corrective
measures.
Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the
pipeline safety regulations listed below, as more fully described in the enclosed Notice, which is
incorporated by reference:
49 CFR § 195.403(b)(1) (Item 1) ─ Respondent failed to, at intervals not
exceeding 15 months, but at least once each calendar year, review with its
personnel their performance in meeting the objectives of the emergency response
training program.
49 CFR § 195.403(c) (Item 2) ─ Respondent failed to verify that its supervisors
maintain a thorough knowledge of that portion of the emergency response
procedures established under § 195.402 for which they are responsible to ensure
compliance.
49 CFR § 195.583(c) (Item 3) ─ Respondent failed to, upon finding atmospheric
corrosion during an inspection, provide protection against the corrosion.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.



Compliance Actions
In its June 13, 2025 response, Respondent submitted evidence to show appropriate actions have
been taken to correct the violation alleged for Notice Item 2. The Director, PHMSA Southwest
Region, Office of Pipeline Safety, has reviewed this evidence and has found that the proposed
compliance actions have been completed. No further compliance actions are necessary to
remediate the violation alleged for Notice Item 2.
Pursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the
actions proposed in the enclosed Notice to correct the violations alleged in Notice Items 1 and 3.
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. Upon completion of the ordered actions, Respondent may request that the Director
close the case. Failure to comply with this Order may result in the assessment of civil penalties
under 49 CFR § 190.223 or in referral to the Attorney General for appropriate relief in a district
court of the United States.
The terms and conditions of this order are effective upon service in accordance with 49 CFR
§ 190.5.
___________________________________ _________________________
Linda Daugherty Date Issued
Acting Associate Administrator
for Pipeline Safety



NOTICE OF PROBABLE VIOLATION
and
PROPOSED COMPLIANCE ORDER
VIA ELECTRONIC MAIL TO: fred.hampton@valero.com
May 15, 2025
Mr. Fred E. Hampton
Vice President, Pipeline & Terminals
Valero Energy Corporation
One Valero Way,
San Antonio, TX 78249
CPF 4-2025-002-NOPV
Dear Mr. Hampton:
From March 11 to September 27, 2024 of the on-site inspection, a representative of the Pipeline
and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected Valero Terminal and
Distribution Company’s1 (Valero) hazardous liquid pipeline facilities in Oklahoma, Louisiana, and
Texas.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 195.403 Emergency response training.
(a) . . . .
(b) At the intervals not exceeding 15 months, but at least once
each calendar year, each operator shall:
(1) Review with personnel their performance in meeting the
objectives of the emergency response training program set forth in
paragraph (a) of this section; . . . .
1 Valero Terminal and Distribution Co. is a subsidiary of Valero Energy Corp.



Valero failed to, at intervals not exceeding 15 months, but at least once each calendar year, review
with its personnel their performance in meeting the objectives of the emergency response training
program set forth in paragraph (a) in accordance with § 195.403(b)(1).
2 Specifically, Valero
completed post-exercise evaluations for drill exercises completed in calendar years 2021, 2022,
and 2023, but did not provide records demonstrating that it had reviewed the performance of its
emergency response personnel in meeting each element of the continuing training program under
§ 195.403(a).
Valero’s procedure, Emergency Response Training (Doc. No. OML-P610) (Rev. 7.0; Dec. 1,
2022), section 5.2.2 Program Content, describes Valero’s continuing training program and
requires Valero to review with personnel their performance in meeting the objectives of its
program. The records provided by Valero show that it did not perform a complete review of the
performance of its personnel in meeting the objectives of its continuing training program. The
post-drill evaluations provide evidence of training employees to carry out Valero’s emergency
procedures, but do not include performance reviews of all required continuing training program
elements under Valero’s procedure and § 195.403(a).
Therefore, Valero failed to, at intervals not exceeding 15 months, but at least once each calendar
year, review with its personnel their performance in meeting the objectives of the emergency
response training program set forth in paragraph (a) in accordance with § 195.403(b)(1).
2. § 195.403 Emergency response training.
(a) . . . .
(c) Each operator shall require and verify that its supervisors
maintain a thorough knowledge of that portion of the emergency
response procedures established under 195.402 for which they are
responsible to ensure compliance.
Valero failed to verify that its supervisors maintain a thorough knowledge of that portion of the
emergency response procedures established under 195.402 for which they are responsible to ensure
compliance in accordance with § 195.403(c).3 Specifically, Valero failed to provide any records
demonstrating compliance with § 195.403(c) for calendar years 2021, 2022, and 2023.
2 Section 195.403(a) requires operators to establish and conduct a continuing training program to instruct emergency
response personnel to: (1) carry out emergency procedures related to their assignments; (2) know the characteristics
and hazards of the hazardous liquid transported; (3) recognize potential emergency conditions, predict consequences
of emergencies, and take appropriate corrective action; (4) take steps necessary to control any accidental release of
hazardous liquid and minimize potential consequences; and (5) learn potential causes, sizes, and consequences of
fire and appropriate use of portable fire extinguishers and other fire control equipment.
3 Section 195.402(e) requires operators to have and follow for each pipeline a manual of written procedures to
provide safety when an emergency condition occurs.



3. § 195.583 What must I do to monitor atmospheric corrosion control?
(a) . . . .
(c) If you find atmospheric corrosion during an inspection, you
must provide protection against the corrosion as required by §
195.581.
Valero failed to, upon finding atmospheric corrosion during an inspection, provide protection
against the corrosion in accordance with § 195.583(c). Specifically, Valero failed to maintain an
adequate protective coating as required by § 195.581 on its facility manifold tied to the pumping
units at the McKee refinery pump station in McKee, Texas. During the inspection, PHMSA
observed areas of disbonded coating and surface corrosion on the facility manifold.
Therefore, Valero failed to, upon finding atmospheric corrosion during an inspection, provide
protection against the corrosion in accordance with § 195.583(c).
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a related
series of violations. For violation occurring on or after December 28, 2023 and before December
30, 2024, the maximum penalty may not exceed $266,015 per violation per day the violation
persists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring
on or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed
$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related
series of violations. For violation occurring on or after March 21, 2022 and before January 6,
2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists,
up to a maximum of $2,391,412 for a related series of violations. For violation occurring on or
after May 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134
per violation per day the violation persists, up to a maximum of $2,251,334 for a related series of
violations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the
maximum penalty may not exceed $222,504 per violation per day the violation persists, up to a
maximum of $2,225,034 for a related series of violations. For violation occurring on or after July
31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per
violation per day the violation persists, up to a maximum of $2,186,465 for a related series of
violations.
We have reviewed the circumstances and supporting documents involved in this case, and have
decided not to propose a civil penalty assessment at this time.
Proposed Compliance Order
With respect to Items 1, 2, and 3 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous
Materials Safety Administration proposes to issue a Compliance Order to Valero. Please refer to
the Proposed Compliance Order, which is enclosed and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in
Enforcement Proceedings. Please refer to this document and note the response options. All



material you submit in response to this enforcement action may be 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 your receipt of this Notice, you have 30 days to respond as described in the enclosed
Response Options. 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 a Final Order. If you are responding to this Notice, we propose that you submit
your correspondence to my office within 30 days from receipt of this Notice. The Region Director
may extend the period for responding upon a written request timely submitted demonstrating good
cause for an extension.
In your correspondence on this matter, please refer to CPF 4-2025-002-NOPV and, for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Bryan Lethcoe
Director, Southwest Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Enforcement Proceedings
cc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution
Company, darin.banther@valero.com



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA), proposes to issue to Valero Terminal and Distribution Company
(Valero) a Compliance Order incorporating the following remedial requirements to ensure the
compliance of Valero with the pipeline safety regulations:
A. B. C. D. In regard to Item 1 of the Notice pertaining to Valero’s failure to review with its
personnel their performance in meeting the objectives of the emergency response
training program set forth in § 195.403(a) in accordance with § 195.403(b)(1),
Valero must review with each emergency responder their performance in meeting
the objectives of its emergency response continuing training program, make
appropriate changes to the emergency response training program as necessary to
ensure that it is effective, and provide records demonstrating that the performance
reviews were completed, and records of any necessary changes made to the
program to the Director, Southwest Region, within 60 days of receipt of the Final
Order.
In regard to Item 2 of the Notice pertaining to Valero’s failure to require and verify
that its supervisors maintain a thorough knowledge of that portion of the emergency
response procedures for which they are responsible to ensure compliance in
accordance with § 195.403(c), Valero must evaluate each supervisor’s knowledge
of Valero’s emergency response procedures for which they are responsible and
provide training as necessary to ensure supervisors have a thorough knowledge of
their responsibilities, and must provide records documenting the evaluations and
any training conducted to the Director, Southwest Region, within 60 days of receipt
of the Final Order.
In regard to Item 3 of the Notice pertaining to Valero’s failure to, upon finding
atmospheric corrosion during an inspection, provide protection against the
corrosion in accordance with § 195.583(c), Valero must remediate any corrosion,
and clean and coat the pipeline facilities at the McKee, Texas, pump station, and
provide documentation of the repairs and re-coating to the Director, Southwest
Region, within 60 days of receipt of the Final Order.
It is requested (not mandated) that Valero maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the
total to Bryan Lethcoe, Director, Southwest Region, Pipeline and Hazardous
Materials Safety Administration. 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.

42025002NOPV_Closure Letter_09292025_(24-296561)_text.pdf

VIA ELECTRONIC MAIL TO: fred.hampton@valero.com
September 29, 2025
Fred Hampton
Vice President, Pipeline & Terminals
Valero Energy Corporation
One Valero Way
San Antonio, TX 78249
CPF 4-2025-002-NOPV
Dear Mr. Hampton:
On July 22, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to Valero Energy Corporation (Valero), a Final Order in the above-referenced case. This Order
included a Compliance Order requirement to take corrective actions on your pipeline. Based on
our review of the documentation you provided, it has been determined that you have 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,
Bryan Lethcoe
Director, Southwest Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Darin Banther, Manager Regulatory Compliance, Valero Terminaling and Distribution
Company, darin.banther@valero.com
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