{"operation":"document","citation":"CPF 42025021NOPV","title":"SINCLAIR TRANSPORTATION COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2025-01-08","effective_on":null,"summary":"OPEN notice of probable violation citing 195.310(a), 195.310(b), 195.430, 195.452(b)(5).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025021nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025021nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42025021nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42025021NOPV","body":"Notice of Probable Violation involving SINCLAIR TRANSPORTATION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.310(a),  195.310(b),  195.430,  195.452(b)(5). The case was opened on 2025-01-08 and is reported as open. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42025021NOPV_Consent Agreement and Order_03062026_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Consent%20Agreement%20and%20Order_03062026_(23-266712).pdf\n\n42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Consent%20Agreement%20and%20Order_03062026_(23-266712)_text.pdf\n\n42025021NOPV_Final Order_09262025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Final%20Order_09262025_(23-266712).pdf\n\n42025021NOPV_Final Order_09262025_(23-266712)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Final%20Order_09262025_(23-266712)_text.pdf\n\n42025021NOPV_Operator Petition for Reconsideration (Part 1)_10162025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Operator%20Petition%20for%20Reconsideration%20(Part%201)_10162025_(23-266712).pdf\n\n42025021NOPV_Operator Petition for Reconsideration (Part 2)_10162025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Operator%20Petition%20for%20Reconsideration%20(Part%202)_10162025_(23-266712).pdf\n\n42025021NOPV_Operator Response to Notice (REVISED) and Request for Informal Discussion_06092025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Operator%20Response%20to%20Notice%20(REVISED)%20and%20Request%20for%20Informal%20Discussion_06092025_(23-266712).pdf\n\n42025021NOPV_Operator Response to Notice and Request for Time Extension_04012025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Operator%20Response%20to%20Notice%20and%20Request%20for%20Time%20Extension_04012025_(23-266712).pdf\n\n42025021NOPV_Operator Response to Notice_02142025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_Operator%20Response%20to%20Notice_02142025_(23-266712).pdf\n\n42025021NOPV_PCO_01082025_(23-266712).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_PCO_01082025_(23-266712).pdf\n\n42025021NOPV_PCO_01082025_(23-266712)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42025021NOPV/42025021NOPV_PCO_01082025_(23-266712)_text.pdf\n\n42025021NOPV_Final Order_09262025_(23-266712)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nSeptember 26, 2025\nVIA ELECTRONIC MAIL TO: steve.ledbetter@hfsinclair.com\nSteven Ledbetter\nExecutive Vice President, Commercial\nHF Sinclair Corporation\n2828 N. Harwood Street\nSuite 1300\nDallas, TX 75201\nRe: CPF No. 4-2025-021-NOPV\nDear Mr. Ledbetter:\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)\ncc: Bryan Jeffrey Lethcoe, Director, Southwest Region, Office of Pipeline Safety\nCharles Curl, Director Pipeline Excellence and Compliance, HF Sinclair Corporation,\ncharles.curl@hfsinclair.com\n\n\n\nDwight Brown, Pipeline Regulator Manager, HF Sinclair Corporation,\ndwight.brown@hfsinclair.com\nCONFIRMATION OF RECEIPT REQUESTED\n2\n\n\n\n3\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nHF Sinclair Corporation, ) CPF No. 4-2025-021-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn January 8, 2025, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation (Notice or NOPV) to HF Sinclair\nCorporation (HF Sinclair or Respondent). The Notice proposed finding that Respondent had\nviolated the pipeline safety regulations in 49 CFR Part 195. The Notice also proposed certain\nmeasures to correct the violations.\nHF Sinclair responded to the Notice on February 14, 2025, one week after the 30-day response\ndeadline stated in the Notice. In this response, Respondent did not contest the allegations of\nviolation or corrective measures and stated that it would comply with the Proposed Compliance\nOrder. Subsequently, on April 1, 2025, fifty-three days after the 30-day response deadline, HF\nSinclair submitted a second response, wherein it disputed all the NOPV items and requested\ninformal discussion with Southwest Region. Respondent provided a follow-up response on June\n9, 2025, one hundred and twenty-two days after the 30-day response deadline, wherein it\nprovided additional information and reiterated its request for informal discussion.\nPursuant to 49 CFR § 190.208(d), failure to respond within 30 days of receipt of a NOPV\nconstitutes a waiver of the right to contest the allegations in the Notice and authorizes the\nAssociate Administrator, without further notice to the respondent, to find the facts as alleged in\nthe NOPV and to issue a final order. If a respondent states that they are not contesting a Notice\nwith a Proposed Compliance Order, the Associate Administrator is authorized to make a finding\nof violation and to issue a final order. See 49 CFR 190.208(b)(1). Here, Respondent did not\nrespond within 30 days of receipt of the NOPV. Thus, HF Sinclair waived its right to contest the\nallegations and this waiver authorized finding the facts as alleged in the Notice and issuance of a\nfinal order. Respondent’s subsequent submissions were untimely and will not be considered.\nBased upon a review of all of the evidence, pursuant to section 190.213, I find Respondent\nviolated the pipeline safety regulations listed below, as more fully described in the enclosed\nNotice, which is incorporated by reference:\n\n\n\n4\n49 CFR § 195.310(b) (Item 1) ─ Respondent failed to maintain pressure test\nrecords with the required information.\n49 CFR § 195.430 (Item 2) ─ Respondent failed to maintain adequate firefighting\nequipment at each pump station and breakout tank area.\n49 CFR § 195.452(b)(5) (Item 3) ─ Respondent failed to implement and follow\nits integrity management program.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCompliance Actions\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. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof the ordered actions, Respondent may request that the Director close the case. Failure to\ncomply with this Order may result in the assessment of civil penalties under 49 CFR § 190.223\nor in referral to the Attorney General for appropriate relief in a district court 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\nU.S. Department of Transportation\nPipeline and Hazardous Materials\nSafety Administration\n8701 S. Gessner, Suite 630\nHouston TX 77074\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: steve.ledbetter@hfsinclair.com\nJanuary 8, 2025\nSteven Ledbetter\nExecutive Vice President, Commercial\nHF Sinclair Corporation\n2828 N. Harwood St, Suite 1300\nDallas, TX 75201\nCPF 4-2025-021-NOPV\nDear Mr. Ledbetter:\nFrom February 27 to May 11, 2023, of the onsite inspection, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCode (U.S.C.) inspected the pipeline facilities and records of Sinclair Transportation Company,\nLLC1 (Sinclair).\nAs a result of the inspection, it is alleged that Sinclair has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 195.310 Records.\n(a) A record must be made of each pressure test required by this\nsubpart, and the record of the latest test must be retained as long as the\nfacility tested is in use.\n(b) The record required by paragraph (a) of this section must\ninclude:\n(1) The pressure recording charts;\n(2) Test instrument calibration data;\n1 Sinclair Transportation Company, LLC, is a subsidiary of HF Sinclair Corporation.\n\n\n\n2\n(3) The name of the operator, the name of the person responsible\nfor making the test, and the name of the test company used, if any;\n(4) The date and time of the test;\n(5) The minimum test pressure;\n(6) The test medium;\n(7) A description of the facility tested and the test apparatus;\n(8) An explanation of any pressure discontinuities, including test\nfailures, that appear on the pressure recording charts;\n(9) Where elevation differences in the section under test exceed 100\nfeet (30 meters), a profile of the pipeline that shows the elevation and\ntest sites over the entire length of the test section; and\n(10) Temperature of the test medium or pipe during the test period.\nSinclair failed to maintain pressure test records with the required information in accordance with\n§ 195.310(b)(1)-(10). Specifically, for the 10-inch Casper Station to Poison Spider Rd. segment,\nSinclair provided the hydrotest chart, which only included the segment name, minimum test\npressure, and date/time of the test.\n2. § 195.430 Firefighting equipment.\nEach operator shall maintain adequate firefighting equipment at\neach pump station and breakout tank area. The equipment must be-\n(a) In proper operating condition at all times;\n(b) Plainly marked so that its identity as firefighting equipment is\nclear; and,\n(c) Located so that it is easily accessible during a fire.\nSinclair failed to maintain adequate firefighting equipment at each pump station and breakout tank\narea in accordance with § 195.430. Specifically, Sinclair failed to maintain adequate firefighting\nequipment at Tanks 1325 and 1326 at Bairoil Pump Station.\n3. § 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) . . . .\n(5) Implement and follow the program.\nSinclair failed to implement and follow its integrity management program in accordance with §\n195.452(b)(5). Specifically, Sinclair failed to perform spill modeling for Cheyenne Station in\naccordance with its procedure, Sinclair Transportation Company – Pipeline Integrity Management\nProgram, IM-100 Volume Release & HCA Impact Procedure, section 103.1 (Rev. Jan. 24, 2022).\nSection 103.1 states that Sinclair will perform spill modeling on facilities with breakout tanks.\nCheyenne Station has three breakout tanks, but Sinclair failed to perform the requisite spill\nmodeling.\n\n\n\n3\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$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a related\nseries of violations. For violation occurring on or after January 6, 2023 and before December 28,\n2023, the maximum penalty may not exceed $257,664 per violation per day the violation persists,\nup to a maximum of $2,576,627 for a related series of violations. For violation occurring on or\nafter March 21, 2022 and before January 6, 2023, the maximum penalty may not exceed $239,142\nper violation per day the violation persists, up to a maximum of $2,391,412 for a related series of\nviolations. For violation occurring on or after May 3, 2021 and before March 21, 2022, the\nmaximum penalty may not exceed $225,134 per violation per day the violation persists, up to a\nmaximum of $2,251,334 for a related series of violations. For violation occurring on or after\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679.\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(b), the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Sinclair Transportation\nCompany. Please refer to the Proposed Compliance Order, which is enclosed and made a part of\nthis 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\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 the 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.\n\n\n\n4\nIn your correspondence on this matter, please refer to CPF 4-2024-021-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\nEnclosure: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: Charles Curl, Director Pipeline Excellence and Compliance, charles.curl@hfsinclair.com\nDwight Brown, Pipeline Regulator Manager, dwight.brown@hfsinclair.com\n\n\n\n5\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Sinclair Transportation Company, LLC (Sinclair),\na Compliance Order incorporating the following remedial requirements to ensure the compliance\nof Sinclair with the pipeline safety regulations:\nA. In regard to Item 1 of the Notice pertaining to Sinclair’s failure to maintain pressure\ntest records with the required information in accordance with § 195.310(b)(1)-(10),\nSinclair must complete a pressure test for Casper Station to Poison Spider Rd\nsegment and provide pressure test records that includes the information required by\n§ 195.310(b)(1)-(10) to the Director, Southwest Region, PHMSA within 90 days\nof receipt of the Final Order.\nB. In regard to Item 2 of the Notice pertaining to Sinclair’s failure to maintain adequate\nfirefighting equipment at each pump station and breakout tank area in accordance\nwith § 195.430, Sinclair must install a fire protection system on Tanks 1325 and\n1326 and provide records of the installed system to the Director, Southwest Region,\nPHMSA within 90 days of receipt of the Final Order.\nC. In regard to Item 3 of the Notice pertaining to Sinclair’s failure to implement and\nfollow its integrity management program in accordance with § 195.452(b)(5),\nSinclair must perform overland spread spill modeling for Cheyenne Station and\nprovide records of the modeling to the Director, Southwest Region, PHMSA within\n90 days of receipt of the Final Order.\nD. It is requested (not mandated) that Sinclair Transportation Company maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Bryan Lethcoe, Director, Southwest\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n\n42025021NOPV_Consent Agreement and Order_03062026_(23-266712)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nMarch 6, 2026\nVIA ELECTRONIC MAIL TO: steve.ledbetter@hfsinclair.com\nSteven Ledbetter\nExecutive Vice President, Commercial\nHF Sinclair Corporation\n2828 N. Harwood Street\nSuite 1300\nDallas, TX 75201\nCPF No. 4-2025-021-NOPV\nDear Mr. Ledbetter:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and HF Sinclair\nCorporation, which was executed on March 3, 2026. Service of the Consent Order and Consent\nAgreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise provided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure: Consent Order and Consent Agreement\ncc: Charles Curl, Director Pipeline Excellence and Compliance, HF Sinclair Corporation,\nCharles.curl@hfsinclair.com\nDwight Brown, Pipeline Regulatory Manager, HF Sinclair Corporation,\nDwight.brown@hfsinclair.com\nRichard Alonso, Counsel, HF Sinclair Corporation, rich.alonso@hfsinclair.com\nJames Curry, outside counsel for HF Sinclair Corporation, jcurry@babstcalland.com\nLee Banse, outside counsel for HF Sinclair Corporation, lbanse@babstcalland.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 )\nHF Sinclair Corporation, ) CPF No. 4-2025-021-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated January 8, 2025, pursuant to 49 CFR § 190.207, the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of\nProbable Violation and Proposed Compliance Order (Notice) to HF Sinclair Corporation (HF\nSinclair or Respondent).\nHF Sinclair responded to the Notice by letter dated February 14, 2025 (Response). Respondent\ndid not contest the alleged violations or the proposed compliance order. On April 1, 2025,\nRespondent submitted a second response, in which it contested Items 1-3 and the proposed\ncompliance order, requested an additional 90 days to respond to the Notice, and requested to\nmeet with PHMSA regarding the findings. On June 9, 2025, Respondent submitted a third\nresponse, providing additional reasons contesting the items described in the Notice. On\nSeptember 26, 2025, the Associate Administrator issued to Respondent a Final Order including\nthe violations and proposed compliance order alleged in the Notice, finding that Respondent had\nwaived its right to contest the allegation. On October 16, 2025, Respondent filed a petition for\nreconsideration of the Final Order. HF Sinclair also requested to meet informally with PHMSA\nto discuss the matters raised in its petition. Respondent and PHMSA (the Parties) subsequently\nmet on November 21, 2025. As a result of those discussions, the Parties have agreed to a\nConsent Agreement by which PHMSA affirms the findings of violations for two of the Items\nalleged in the Notice, withdraws one of the findings of violation from the Final Order, and\nRespondent agrees to complete certain compliance actions.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order issued pursuant to section 190.219. HF Sinclair is hereby ordered to comply\nwith the terms of the Consent Agreement pursuant to its terms. Pursuant to 49 U.S.C. § 60101,\net seq., failure to comply with this Consent Order may result in the assessment of civil penalties\nas set forth in 49 U.S.C. § 60122 and 49 CFR § 190.223, or in referral to the Attorney General\nfor appropriate relief in a district court of the United States.\n\n\n\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 CFR § 190.5.\n______________________ ______________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\n\n\n\nDocusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530\nPage 1\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nHF Sinclair Corporation, ) CPF No. 4-2025-021-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom February 27 through May 11, 2023, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of Title 49, United States Code (U.S.C.), conducted an on-site pipeline safety inspection of\nthe facilities and records of HF Sinclair Corporation (HF Sinclair or Respondent) in Wyoming.\nThe inspection covered 540 miles of pipeline carrying crude oil products between Sinclair\nRefinery, Casper Refinery, Guernsey Tank Farm, and Cheyenne Station.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated January 8, 2025, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 CFR § 190.207, the Notice proposed finding\nthat HF Sinclair committed three violations of 49 CFR Part 195 (Items 1 – 3), and proposed\nordering Respondent to take certain measures to correct the alleged violations.\nHF Sinclair responded to the Notice by letter dated February 14, 2025 (Response). Respondent\ndid not contest the alleged violations or the proposed compliance order. On April 1, 2025,\nRespondent submitted a second response, in which it contested Items 1-3 and the proposed\ncompliance order, requested an additional 90 days to respond to the Notice, and requested to\nmeet with the Director regarding the Notice. On June 9, 2025, Respondent submitted a third\nresponse, providing additional reasons contesting the items described in the Notice. On\nSeptember 26, 2025, the Associate Administrator issued to Respondent a Final Order including\nthe violations and proposed compliance order alleged in the Notice, finding that Respondent had\nwaived its right to contest the allegation. On October 16, 2025, Respondent filed a petition for\nreconsideration of the Final Order.\nThe Director and Respondent (the Parties) subsequently met to discuss the issues raised in the\npetition for reconsideration. As a result of those discussions and as explained in more detail\nbelow, the Parties have agreed to a Consent Agreement by which PHMSA affirms the findings of\nviolations for two of the Items alleged in the Notice, withdraws one of the findings of violation\n\n\n\nDocusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530\nPage 2\nfrom the Final Order, and Respondent agrees to complete certain compliance actions.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 U.S.C. § 60101, et seq. and 49 CFR Part 190, and upon consent and\nagreement, the Parties hereby agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice and Final Order, Respondent and its referenced pipeline facilities are subject to the\njurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations\nand administrative orders issued thereunder. For purposes of this Consent Agreement\n(Agreement), Respondent acknowledges that it received proper notice of PHMSA’s action in this\nproceeding and that the Notice and Final Order state claims upon which relief may be granted\npursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending\nthat the Associate Administrator adopt the terms of this Agreement by issuing an administrative\norder (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its petition for reconsideration\nregarding the Final Order.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice and Final Order.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\n\n\n\nDocusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530\nPage 3\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a\npermit, or a modification of any permit, under any Federal, State, or local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of\nviolation of any other federal law or regulation and may not be used in any civil proceeding of\nany kind as evidence or proof of any fact, fault or liability, or as evidence of a violation of any\nlaw, rule, regulation, or requirement, except in a proceeding to enforce the provisions of this\nAgreement or in future PHMSA enforcement actions.\nII. Findings of Violation:\n11. Item 2 - 49 CFR § 195.430: The Final Order found that HF Sinclair failed to\nmaintain adequate firefighting equipment at each pump station and breakout tank area.\nSpecifically, the Final Order found that HF Sinclair failed to maintain adequate firefighting\nequipment at Tanks 1325 and 1326 at Bairoil Pump Station. HF Sinclair does not contest the\nfinding of violation in the Final Order. As such, PHMSA finds a violation of 49 CFR § 195.430.\n12. Item 3 - 49 CFR § 195.452(b)(5): The Final Order found that HF Sinclair failed to\nimplement and follow its integrity management program. Specifically, the Final Order found that\nHF Sinclair failed to perform spill modeling for three out-of-service breakout tanks at the\nCheyenne Station in accordance with its procedure. HF Sinclair does not contest the finding of\nviolation in the Final Order. As such, PHMSA finds a violation of 49 CFR § 195.452(b)(5).\n13. Items 2 and 3 will be considered by PHMSA as prior offenses in any future PHMSA\nenforcement action taken against Respondent.\n\n\n\nDocusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530\nPage 4\nIII. Item Withdrawn:\n14. Item 1 - CFR § 195.310(b)(1)-(10): With respect to Item 1 of the Final Order, the\nParties agree that this Item should be withdrawn following review of additional documentation\nprovided by Respondent regarding its compliance with the applicable regulation. Because this\nItem is withdrawn, it will not constitute a finding of violation for any purpose, but Respondent\nagrees to take the corrective actions in paragraph 16. The finding of violation for Item 1 is\nwithdrawn.\nIV. Compliance Order:\n15. In paragraphs 16, 17, 18 of this Consent Agreement, the term Sinclair Assets shall\nbe defined as the hazardous liquids facilities covered under the notice of divestiture filed by the\nSinclair Transportation Company with the National Registry of Operators on April 4, 2022 that\nprovided notice of the transfer of pipeline facilities to Holly Energy Partners-Operating, L.P.\n16. Item 1: The Final Order included certain compliance order actions related to Item\n1. Following informal consultation, the Parties agreed to the following modified actions to be\ntaken by Respondent. As such, Respondent agrees to undertake the following corrective\nmeasures:\na. Within 60 days of issuance of the Consent Order, HF Sinclair must conduct a\nreview of its classifications of the Sinclair Assets and ensure that each system is correctly\nclassified as intrastate or interstate in accordance with 49 CFR Part 195 Appendix A.\nWithin 60 days of issuance of the Consent Order, HF Sinclair must submit any updates\nrelated to the intrastate or interstate classification of the relevant facilities to the National\nPipeline Mapping System (NPMS). HF Sinclair must notify the Director when the review\nis complete, and provide an electronic map (in GIS format) showing interstate and\nintrastate pipeline status.\n17. Item 2: The Final Order included certain compliance order actions to address the\nnon-compliance found under Item 2. Following informal consultation, the Parties agreed to the\nfollowing modified actions to be taken by Respondent. As such, Respondent agrees to undertake\nthe following corrective measures:\na. Within 60 days of issuance of the Consent Order, HF Sinclair will conduct a\nrefresher training of its existing procedures for operators for remote facilities in the\nSinclair Assets that do not have fixed firewater systems and locations where one of the\nfire response strategies may be a controlled burn-out. HF Sinclair must provide records to\nthe Director of the refresher training.\nb. Within 240 days of issuance of the Consent Order, HF Sinclair will conduct a\ntabletop drill to train operators on the execution of its fire response plan for remote\nfacilities in the Sinclair Assets that do not have fixed firewater systems and locations\nwhere one of the fire response strategies may be a controlled burn-out. HF Sinclair will\ninvite local first responders to participate in the tabletop drill and provide notification to\n\n\n\nDocusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530\nPage 5\nPHMSA, at least 60 days before the expected date of the drill, to allow for PHMSA\npersonnel to attend and observe the drill.\nc. Within 60 days of completion of the tabletop drill, HF Sinclair will provide the\nDirector updated fire response procedures and training materials for facilities that do not\nhave fixed firewater systems and locations where one of the fire response strategies may\nbe a controlled burn-out. HF Sinclair will provide notification to local first responders to\npermit them to participate in future drills.\n18. Item 3: The Final Order included certain compliance order actions to address the\nnon-compliance found under Item 3. Following informal consultation, the Parties agreed to the\nfollowing modified actions to be taken by Respondent. As such, Respondent agrees to undertake\nthe following corrective measures:\na. Within 60 days of the issuance of the Consent Order, HF Sinclair must provide the\nDirector records confirming the integration into its integrity management program of each\nsegment on the Sinclair Assets for which IM integration is required per 49 CFR Part 195.\nb. Within 60 days of the issuance of the Consent Order, HF Sinclair shall submit to\nthe Director draft revisions to its integrity management plan requiring verification that out-\nof-service pipelines and breakout tanks are confirmed in compliance with all applicable\nrequirements of its integrity management plan prior to return to service.\nc. Within 60 days of receiving any feedback or proposed revisions from the Director,\nHF Sinclair will finalize and submit to the Director the updated integrity management plan\nsections related to out-of-service pipelines and breakout tanks.\nV. Enforcement:\n19. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $272,926 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 CFR § 190.223. All work plans and\nassociated schedules set forth or referenced in Section IV (Compliance Order) are automatically\nincorporated into this Agreement and are enforceable in the same manner.\nVI. Review and Approval Process:\n20. With respect to any submission under Section IV (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all\n\n\n\nDocusign Envelope ID: 39BC4857-F4CB-466E-ADA7-CE155850E530\nPage 6\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute\nresolution procedures with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent a written\nnotice of the deficiencies. Respondent will correct all deficiencies within the time specified by\nthe Director and resubmit it for approval.\nVII. Dispute Resolution:\n21. The Director and Respondent will informally attempt to resolve any disputes\narising under this Agreement, including any decision of the Director under the terms of Sections\nIV (Compliance Order) and VI (Review and Approval Process). If Respondent and the Director\nare unable to informally resolve the dispute within 15 calendar days after the dispute is first\nraised, in writing, to the Director, Respondent may submit a written request for a determination\nresolving the dispute from the Associate Administrator. Such request must be made in writing\nand provided to the Director, counsel for the Southwest Region, and to the Associate\nAdministrator, no later than 10 calendar days from the 15-day deadline for informal resolution\nreferenced in this paragraph. Along with its request, Respondent must provide the Associate\nAdministrator with all information Respondent believes is relevant to the dispute. Decisions of\nthe Associate Administrator under this paragraph will constitute final agency action. The\nexistence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse,\ntoll, or suspend any term or timeframe for completion of any work to be performed under this\nAgreement during the pendency of the dispute resolution process.\nVIII. Effective Date:\n22. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator incorporating the terms of this Agreement.\nIX. Recordkeeping and Information Disclosure:\n23. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at\nleast five (5) years following completion of all work to be performed, unless a longer period of\ntime is required pursuant to 49 ","truncated":true,"body_characters":42143}