{"operation":"document","citation":"CPF 42026003NOA","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":"2026-02-11","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(3), 195.587.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026003noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026003noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026003noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42026003NOA","body":"Notice of Amendment involving VALERO TERMINALING AND DISTRIBUTION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  195.587. The case was opened on 2026-02-11 and is reported as closed as of 2026-05-07. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42026003NOA_Closure Letter_05072026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026003NOA/42026003NOA_Closure%20Letter_05072026_(25-329817).pdf\n\n42026003NOA_Closure Letter_05072026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026003NOA/42026003NOA_Closure%20Letter_05072026_(25-329817)_text.pdf\n\n42026003NOA_Notice of Amendment_02112026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026003NOA/42026003NOA_Notice%20of%20Amendment_02112026_(25-329817).pdf\n\n42026003NOA_Notice of Amendment_02112026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026003NOA/42026003NOA_Notice%20of%20Amendment_02112026_(25-329817)_text.pdf\n\n42026003NOA_Operator Response to Notice_03112026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026003NOA/42026003NOA_Operator%20Response%20to%20Notice_03112026_(25-329817).pdf\n\n42026003NOA_Notice of Amendment_02112026_(25-329817)_text.pdf\n\nU.S. Department of Transportation\nPipeline and Hazardous Materials\nSafety Administration 8701 S. Gessner, Suite 630\nHouston TX 77074\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nFebruary 11, 2026\nFred E. Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way,\nSan Antonio, TX 78249\nCPF 4-2026-003-NOA\nDear Mr. Hampton:\nFrom February 24 through June 30, 2025, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Valero Energy Terminaling and Distribution Company’s (Valero) procedures for\noperations and maintenance in San Antonio, Texas.\nAs a result of the inspection, PHMSA has identified the apparent inadequacies found within\nValero’s plans or procedures.\nThe items inspected and the inadequacy is described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline system a manual of written procedures for conducting\nnormal operations and maintenance activities and handling abnormal\noperations and emergencies. This manual shall be reviewed at\nintervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to insure that the\nmanual is effective. This manual shall be prepared before initial\noperations of a pipeline system commence, and appropriate parts\nshall be kept at locations where operations and maintenance activities\nare conducted.\n(b) . . . .\n\n\n\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the\nfollowing to provide safety during maintenance and normal\noperations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in\naccordance with each of the requirements of this subpart and subpart\nH of this part.\n§ 195.587 What methods are available to determine the strength of corroded pipe?\nUnder § 195.585, you may use the procedure in ASME/ANSI B31G\n(incorporated by reference, see § 195.3) or in PRCI PR-3-805 (R-\nSTRENG) (incorporated by reference, see § 195.3) to determine the\nstrength of corroded pipe based on actual remaining wall thickness.\nThese procedures apply to corroded regions that do not penetrate the\npipe wall, subject to the limitations set out in the respective\nprocedures.\nValero’s written procedures are inadequate to ensure the safe operation of a pipeline facility in\naccordance with § 195.402(c)(3). Specifically, Valero’s written procedure for calculating the\nremaining strength of corroded pipe, OME P415 (Rev. 8, 3/1/2025), is inadequate for determining\nthe remaining strength of corroded pipe wall in accordance with § 195.587. Valero’s procedure,\nin Sections 5.2.1 and 5.2.2, provides the formulas to calculate remaining strength from\nASME/ANSI B31G and R-STRENG. However, Sections 5.2.1 and 5.2.2 fail to provide an\nexplanation for many of the variables used in the identified formulas, and fails to inform personnel\nof where they can acquire the variables to be used in the equation. Without definitions for these\nvariables or instructions on how to acquire them, the formulas and procedure are unusable by\nValero personnel. PHMSA proposes that Valero must amend its procedure to include explanations\nfor each of the variables in the formulas provided in the procedure.\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).\n2\n\n\n\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\nNotice, we propose that you submit your amended procedures to my office within 30 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, Office of Pipeline Safety,\nPipeline and Hazardous Materials Safety Administration. In correspondence concerning this\nmatter, please refer to CPF 4-2026-003-NOA and, for each document you submit, please provide\na copy in electronic format whenever 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\n3\n\n42026003NOA_Closure Letter_05072026_(25-329817)_text.pdf\n\nU.S. Department of Transportation\nPipeline and Hazardous Materials\nSafety Administration\n8701 S. Gessner, Suite 630\nHouston TX 77074\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nMay 7, 2026\nFred E. Hampton\nVice President, Pipeline & Terminals\nValero Energy Corporation\nOne Valero Way,\nSan Antonio, TX 78249\nCPF 4-2026-003-NOA\nDear Mr. Hampton:\nFrom February 24 through June 30, 2025, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of Valero Energy Terminaling and Distribution\nCompany’s (Valero) procedures in San Antonio, Texas.\nAs a result of the inspection, Valero was issued a Notice of Amendment on February 11, 2026,\nwhich proposed amendment of your procedures.\nValero submitted its amended procedures on March 11, 2026. 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 no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n\n\n\ncc: Darin P. Banther, Manager Regulator Compliance, Valero Terminaling and Distribution\nCompany, darin.banther@valero.com\nCarlos Gauna, Director Pipeline and Facility Integrity, Valero Partners Operating\nCompany, LLC, carlos.gauna@valero.com\n2","truncated":false,"body_characters":9002}