{"operation":"document","citation":"CPF 42026004NOPV","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":"2026-02-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.428(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026004nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026004nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42026004nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42026004NOPV","body":"Notice of Probable Violation involving VALERO TERMINALING AND DISTRIBUTION COMPANY. PHMSA's enforcement data identifies the cited regulation as 195.428(a). 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\n42026004NOPV_Closure Letter_05072026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Closure%20Letter_05072026_(25-329817).pdf\n\n42026004NOPV_Closure Letter_05072026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Closure%20Letter_05072026_(25-329817)_text.pdf\n\n42026004NOPV_Final Order_04012026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Final%20Order_04012026_(25-329817).pdf\n\n42026004NOPV_Final Order_04012026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Final%20Order_04012026_(25-329817)_text.pdf\n\n42026004NOPV_Operator Response to Notice_03112026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_Operator%20Response%20to%20Notice_03112026_(25-329817).pdf\n\n42026004NOPV_PCO_02112026_(25-329817).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_PCO_02112026_(25-329817).pdf\n\n42026004NOPV_PCO_02112026_(25-329817)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42026004NOPV/42026004NOPV_PCO_02112026_(25-329817)_text.pdf\n\n42026004NOPV_Final Order_04012026_(25-329817)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, S.E.\nWashington, D.C. 20590\nApril 01, 2026\nVIA EMAIL TO: lane.riggs@valero.com\nLane Riggs\nPresident & CEO\nValero Partners Operating Co., LLC\nOne Valero Way\nSan Antonio, TX 78249\nRe: CPF No. 4-2026-004-NOPV\nDear Mr. Riggs:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding 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 Lethcoe, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nFred Hampton, Vice President, Valero Partners Operating Co., LLC,\nfred.hampton@valero.com\nCarlos Gauna, Director Pipeline and Facility Integrity, Valero Partners Operating Co.,\nLLC, carlos.gauna@valero.com\nDarin Banther, Manager Regulatory Compliance, Valero Partners Operating Co., LLC,\ndarin.banther@valero.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\n2\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nValero Terminaling and Distribution )\nCompany, a subsidiary of Valero ) CPF No. 4-2026-004-NOPV\nPartners Operating Co., LLC, )\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn February 11, 2026, pursuant to 49 CFR § 190.207, the Director, Southwest Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Valero Partners\nOperation Co., LLC, and Valero Terminaling and Distribution Company (Respondent). The\nNotice proposed finding that Respondent had violated the pipeline safety regulations in\n49 CFR Part 195. The Notice also proposed certain measures to correct the violation.\nRespondent did not contest the allegation of violation or corrective measures.\nBased upon a review of all of the evidence, pursuant to section 190.213, I find Respondent\nviolated the pipeline safety regulation listed below, as more fully described in the enclosed\nNotice, which is incorporated by reference:\n49 CFR § 195.428(a) (Item 1) ─ Respondent failed to properly inspect and test\nthe thermal relief devices on Tanks 813 and 816 at its West Memphis facility.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken 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 violation. 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. Respondent\npreviously submitted evidence to show appropriate actions have been taken to correct the\nviolation. This evidence is currently under review by the Director. Failure to comply with this\n\n\n\n3\nOrder may result in the assessment of civil penalties under 49 CFR § 190.223 or in referral to the\nAttorney 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\n49 CFR § 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 8701 S. Gessner, Suite 630\nHouston TX 77074\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: fred.hampton@valero.com\nFebruary 11, 2026\nFred E. Hampton\nVice President, Pipeline & Terminals\nValero Terminaling and Distribution Company\nOne Valero Way,\nSan Antonio, TX 78249\nCPF 4-2026-004-NOPV\nDear Mr. Hampton:\nFrom February 24 through June 30, 2025, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) inspected the procedures and facilities of Valero Partners Operating\nCo. LLC and Valero Terminaling and Distribution Company (Valero) in Arkansas, Mississippi,\nSan Antonio, Texas and Memphis, Tennessee.\nAs a result of the inspection, it is alleged that Valero has committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. § 195.428 Overpressure safety devices and overfill protection systems.\n(a) Except as provided in paragraph (b) of this section, each\noperator shall, at intervals not exceeding 15 months, but at least once\neach calendar year, or in the case of pipelines used to carry highly\nvolatile liquids, at intervals not to exceed 7½ months, but at least twice\neach calendar year, inspect and test each pressure limiting device, relief\nvalve, pressure regulator, or other item of pressure control equipment\nto determine that it is functioning properly, is in good mechanical\ncondition, and is adequate from the standpoint of capacity and\nreliability of operation for the service in which it is used.\n\n\n\nValero failed to, at intervals not exceeding 15 months, but at least once each calendar year, inspect\nand test each pressure limiting device, relief valve, pressure regulator, or other item of pressure\ncontrol equipment to determine that it is functioning properly, is in good mechanical condition,\nand is adequate from the standpoint of capacity and reliability of operation for the service in which\nit is used in accordance with § 195.428(a). Specifically, Valero has failed to properly inspect and\ntest the thermal relief devices on Tanks 813 and 816 at its West Memphis facility since 2022.\nRelief Valve Inspection Reports from Nov. 29, 2022 and Nov. 27, 2023 show the thermal relief\ndevices on Tanks 813 and 816 as set to 150 psig. On Nov. 29, 2022 the valves were tested at 81\nand 91 psig, respectively. On Nov. 27, 2023 the valves were tested to 95 and 90 psig, respectively.\nThe differentials between the set points and testing points indicate that the valves were not properly\ntested.\nA separate inspection report from Nov. 30, 2023 lists the setting for the thermal relief device on\nTank 813 as 60 psig and states that it was tested to 80 psig. On Nov. 11, 2024, the device was\nlisted as set to 60 psig and was tested to 70 psig. Similarly, an inspection report from Nov. 11,\n2024 lists the setting for the thermal relief device on Tank 816 as 55 psig and states that it was\ntested to 83 psig. Changes to the set point were not documented by any management of change\nrecord, the test points differ from the settings considerably, and there are no records indicating\nwhy either device was tested to a higher psig than its setting.\nTesting substantially below the established set pressure does not verify that the valve will open at\nits required activation pressure and therefore fails to confirm proper overpressure protection.\nConversely, if a valve were to open above its set point, it could allow the tank to exceed its\nmaximum allowable working pressure before relieving. In either case, a significant differential\nbetween the set pressure and the actual lift (test) pressure is problematic because it demonstrates\nthat the valve’s performance is not aligned with its design set point, undermining confidence that\nthe tank is adequately protected against overpressure conditions.\nTherefore, Valero failed to, at intervals not exceeding 15 months, but at least once each calendar\nyear, inspect and test each pressure limiting device, relief valve, pressure regulator, or other item\nof pressure control equipment to determine that it is functioning properly, is in good mechanical\ncondition, and is adequate from the standpoint of capacity and reliability of operation for the\nservice in which it is used in accordance with § 195.428(a).\nProposed Compliance Order\nWith respect to Item 1, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to Valero. Please refer to the Proposed\nCompliance Order, which is enclosed and made a part of this Notice.\n2\n\n\n\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\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 4-2026-004-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\n3\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 Partners Operating Company (Valero) a\nCompliance Order incorporating the following remedial requirements to ensure the compliance of\nValero Partners with the pipeline safety regulations:\nA. In regard to Item 1 of the Notice pertaining to Valero’s failure to properly inspect\nand test the thermal relief devices on Tanks 813 and 816, Valero Partners must\nperform the following:\na. Review the set points for the thermal relief devices on Tanks 813 and 816 and\nensure they are correctly calibrated within 30 days of receipt of the Final Order.\nb. Review thermal relief device settings and required testing points with personnel\nat its West Memphis and ensure that personnel have access to required records\nshowing the set points within 30 days of receipt of the Final Order.\nc. Review the personnel qualifications for personnel performing inspections of the\nthermal relief devices at its West Memphis facility and determine if they require\nretraining within 30 days of receipt of the Final Order.\nD. It 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, Office of Pipeline Safety,\nPipeline and Hazardous Materials Safety Administration. It is requested that these\ncosts 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.\n4\n\n42026004NOPV_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 4-2026-004-NOPV\nDear Mr. Hampton:\nOn April 1, 2026, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Valero Partners Operation Co., LLC, and Valero Terminaling and Distribution Company\n(Respondent) a Final Order in the above-referenced case. This Order included a Compliance Order\nrequirement to take corrective actions on your pipeline facility.\nBased on our review of the documentation you provided, it has been determined that you have\ncomplied with 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\nCarlos Gauna, Director Pipeline and Facility Integrity, Valero Partners Operating\nCompany, LLC, carlos.gauna@valero.com","truncated":false,"body_characters":15450}