{"operation":"document","citation":"CPF 520020008","title":"VENOCO, INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-08-19","effective_on":null,"summary":"CLOSED notice of probable violation citing 191.15(b), 192.465(a), 192.465(b), 192.467(a), 192.491(c), 192.605, 192.605(a), 192.615(a), 192.616, 192.629(a), 192.705(a), 192.706.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520020008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520020008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520020008","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520020008","body":"Notice of Probable Violation involving VENOCO, INC. PHMSA's enforcement data identifies the cited regulations as 191.15(b),  192.465(a),  192.465(b),  192.467(a),  192.491(c),  192.605,  192.605(a),  192.615(a),  192.616,  192.629(a),  192.705(a),  192.706. The case was opened on 2002-08-19 and is reported as closed as of 2006-11-28. Proposed civil penalty: $46,500. Assessed civil penalty: $46,500. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520020008.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520020008/520020008.pdf\n\n520020008_Final Order_10302003.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520020008/520020008_Final%20Order_10302003.pdf\n\nClosure_CPF_No_5-2002-0008_Venoco.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520020008/Closure_CPF_No_5-2002-0008_Venoco.pdf\n\n520020008_Final Order_10302003.pdf\n\n(p\nU.S. Deporlment\nof Tronsoortotion\nR$eorchond\nSpeciol Progroms\nAdminislrofion\n400 Seventh Sl.. S W\nWashinqlon. D C 20590\nOcT 3 0 i:rl]3\nMr. Bruce Berwager\nChief Operations Offi cer\nVenoco, Inc.\n5464 Carpinteria Avenue, Suite J\nCarpinteria, CA 93013-1423\nRe: CPFNo.5-2002-0008\nDear Mr. Berwager:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes frndings ofviolation and assesses a civil penalty of $46,500. The\nFinal Order also requires certain conective actions and the amendment of your procedures for\noperations, maintenance, and emergencies. The penalty paynent terms are set forth in the Final\nOrder. YourreceiptoftheFinalOrderconstitutesserviceofthatdocumentunder49C.F.R.$190.5.\nSincerely,\nf)rur,*Lfu)h il,\"\n' Gwendolyn M. HiH\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\nMr. Keith Wenal\nSafety and Training/DOT Coordinator\nCERTIFIED MAIL - RETLIRN RECEIPT REOUESTED\n\n\n\nDEPARTMENT OF TRANS P ORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAT'ETY\nWASHINGTON,DC 20590\nIn the Matter of\nVenoco, Inc.,\nRespondent.\n)\n)\n)\n)\n)\nCPF No. 5-2002-0008\nFINAL ORDER\nOn September 25-26,2001, pursuant to 49 U.S.C. $ 60117, a representative of the Westem Region,\nOffice ofPipeline Safety(OPS) conducted anon-sitepipeline safetyinspectionofRespondent'sRyer\nSales Gas Pipeline (\"RyerPipeline\") facilities andrecords in Concord, California. As aresult of the\ninspection, the Director, Western Region, OPS, issued to Respondent, by letter dated August 19,\n2002, a Notice of Probable Violation, Proposed Civil Penalty, Proposed Compliance Order, and\nNoticeofAmendment(Notice). Inaccordancewith49C.F.R.$l90.207,theNotice: (1)proposed\nfinding that Respondent violated 49 C.F.R. $$ 192.491, 192.616,192.705, 192.706,192.465,\n192.467, and committed two violations of $ 192.605; (2) proposed assessing a civil penalty of\n$46,500 for six ofthe alleged violations; and (3) proposed that Respondent take certain measures\nto correct the alleged violations. The Notice also proposed, in accordancewith49 C.F.R. $ 190.237,\nthat Respondent amend its procedures for operations, maintenance and emergencies.\nRespondent responded to the Notice by letter dated September 18,2002 (Response). Respondent\ndid not contest the allegations of violation but offered information concerning the corrective\nmeasures it intended to initiate. Respondent did not request aheaing, consequently Respondent\nwaived its rieht to one.\nFINDINGS OF VIOLATION\nIn its Response, Respondent did not contest the alleged violations set forth in the Notice.\nAccordingly, I find that Respondent violated the following sections of 49 C.F.R. Part 192, as more\nfully described in the Notrce:\n49 C.F.R. $ 192.605 -- failing to adequately prepare and follow a manual of written\nprocedures for conducting operations, maintenance, and emergency response activities in\naccordance with the requirements of 49 C.F.R. Partl92,\n\n\n\n2\n49 C.F.R. S 192.491 - failing to maintain records demonstrating the adequacy of corosion\ncontroi measures during the 1998-2001 period;\n49 C.F,R. 5 192.705 -- failing to conduct patrols of the pipeline right-of-way within the\nprescribed maximum intervals during the 1998-99 period;\n49 C.F.R. 5 192.706 - failing to adequately conduct leakage surveys within the prescribed\nmaximum interval during the 1998-99 period;\n49 C.F.R. $ 192.a65(a) - failing to adequately conduct pipe-to-soil testing to monitor\ncathodic protection levels within the prescribed maximum intervals during the 1998-2001\nperiod;\n49 C.F.R. $ 192.465(b) - failing to adequately inspect the Ryer Station cathodic protection\nrectifier within the prescribed maximum intewal during the 1998-2001 period;\n49C.F.R. $192.467(d)--failingtoproperlyconductelectricaltestingtoensuretheadequacy\nof electrical isolation at railroad casings.\nThese findings ofviolation will be considered prior offenses in any subsequent enforcement action\ntaken against Respondent,\nASSESSMENT OF PENAITY\nUnder 49 U.S.C. 5 60122, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for each day of the violation up to a maximum of $1,000,000 for any related series of\nviolations.\n49 U.S.C. $ 60122 and 49 C.F.R. $ 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation, degree\nof Respondent's culpability, history of Respondent's prior offenses, Respondent's ability to pay the\npenalty, good faith by Respondent in attempting to achieve compliance, the effect on Respondent's\nability to continue in business, and such other matters as justice may require.\nVenoce, Inc. is responsible for operating and maintaining the Ryer Pipeline in accordance with the\napplicable pipeline safety regulations. These regulations represent the minimum measures that must\nbe taken by pipeline operators to protect the public safety. In this case the violations involved,\namong other things, inadequate corrosion control measures and the failure to conduct periodic leak\ntesting. These are among the most fundamental requirements of the gas pipeline safety regulations.\nIn its response, Respondent acknowledged the deficiencies identified in the OPS inspection,\nincluding the fact that this pipeline was operated without cathodic protection for a significant period\nof time. Although a new impressed current cathodic protection system was eventually installed on\nthe Ryer Pipeline, the failure to protect against corrosion during the 1998 to 2001 period could have\n\n\n\n3\nresulted in deterioration of the pipe wall and a corresponding increase in the potential for pipeline\nfailures, putting the public safety at risk. Moreover, vital monitoring and inspections that were\nrequired on a semi-annual or annual basis were not missed by a matter of days or weeks, but rather,\nthere were no records of their being conducted for a period of nearly three years. In addition, careful\nmonitoring of the level of corrosion control is of particular importance on the Ryer Pipeline which\nis constructed of both 8-inch and 12-inch sections, potentially making periodic internal pipe wall\ninspections problematic.\nThe Notice proposed civil penalties for the violations as follows:\nItem 2:\nfailure to maintain corrosion control records\n=\n$18,000\nItem 9:\n2 missed patrolling x $2,500\n=\n$ 5,000\nItem 10:\n1 missed leakage survey\n=\n$ 2,500\nItem 1l:\nfailure to follow cathodic protection procedures\n=\n$15,000\nItem 12:\n1 missed rectifier survey\n=\n$ 3,000\nItem 13:\n1 missed electrical survey\n=\n$ 3,000\nTotal =\n$46,500\nRespondent has not presented information that warrants mitigation of the civil penalty amounts\nproposed for any of the violations committed. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a total civil penalty of $46,500 for failing\nto comply with the requirements of 49 C.F.R. §§ 192.491, 192.705, 192.706, 192.465, and 192.467.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require this payment be made by wire transfer, through the Federal Reserve\nCommunications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are\ncontained in the enclosure. Questions concerning wire transfers should be directed to: Financial\nOperations Division (AMZ-120), Federal Aviation Administration, Mike Monroney Aeronautical\nCenter, P.O. Box 25770, Oklahoma City, OK 73125; (405) 954-4719.\nFailure to pay the $46,500 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same\nauthorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not\nmade within 110 days of service. Furthermore, failure to pay the civil penalty may result in referral\nof the matter to the Attorney General for appropriate action in a United States District Court.\nCOMPLIANCE ORDER\nThe Notice proposed a Compliance Order with respect to the violations of 49 C.F.R. §§ 192.605 and\n192.491.\nUnder 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or\noperates a pipeline facility is required to comply with the applicable safety standards established\nunder Chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions with respect to its Ryer Sales Gas Pipeline to\nensure compliance with the pipeline safety regulations applicable to its operations:\n\n\n\nd,\n1.\nEstablish and follow a comprehensive manual ofwrittenprocedures for operations, maintenance,\nand emergencies developed specifically for the Ryer Sales Gas Pipeline that meets all\nrequirements of 49 C.F.R. Pafi 192, including Subparts E, I, L, and M as more fully described\nin the Notice.\n2.\nVerify the integrity of the pipeline by conducting a pressure test in accordance with 49 C.F.R.\nPart 192, Subpart J. Submit the pressure test results to the Director, Westem Region, OPS\nwithin 7 days of receiving them. Include information on the nature and location of any leak\nincidents should they occur.\nEvaluate the adequacy ofthe corrosion control measures by conducting a close-interval cathodic\nprotection survey ofthe pipeline, as well as interference current testing at all crossings and other\nareas where fault currents may be present, in accordance with 49 C.F.R. $$ 192.463,192.473,\nand Appendix D. Submit the results of the electrical surveys to the Director, Westem Region,\nOPS within 7 days of receiving them. hclude information on the nature and location of any\ndeficiencies identified during the electrical surveys and a summary evaluation of the adequacy\nof the corrosion control measures.\n4. lf any failures or deficiencies are identified as a result ofthe testing and evaluation actions\nrequired by this Order, or are otherwise known or suspected by Respondent, provide for further\nevaluations, appropriate repairs, or other remedial actions to bring the pipeline and its associated\nfacilities into compliance with the pipeline safety regulations and relevant industry standards.\nPrior to initiating any repairs, develop and submit a plan to the Director, with a schedule,\nincluding a description of the assessment criteria that will be used in the prioritizalion of any\ndeficiencies that are identified, and a description of the repair criteria and methods that will be\nused in undertaking any corrective measures.\n5.\nDevelop and maintain a formal corrosion control record keeping system in accordance with\n49 C.F.R. $ 192.491 that includes, among other things, maps showing the location of the\npipeline's cathodic protection facilities and any neighboring structures bonded to the pipeline\nor its cathodic protection systems, and records demonstrating the adequacy of the corrosion\ncontrol measures required for the pipeline under 49 C.F.R. Part 192, Subpart I. The record\nkeeping system must also ensure that any records created by maintenance contractors are\nregularly reviewed by Respondent to ensure that the pipeline is being operated in compliance\nwith the pipeline safety regulations applicable to its operations.\n6.\nRespondent must accomplish the above items within 60 days following receipt of this Final\nOrder. Submit all test results, evaluations, action plans, schedules, procedures, and other\ndocuments demonstrating compliance with this Order to the Director, Westem Region, Office\nof Pipeline Safety, Golden Hills Centre, Suite A-250, 12600 West Colfax Avenue, Lakewood,\nco 80215-3736.\n\n\n\nAi\\4ENDMENT OF PROCEDLIRES\nItems 3-6 of the Notice alleged inadequacies in Respondent's procedures for operations,\nmaintenance, and emergencies and proposed to require amendment of Respondent's procedures to\ncomply with the requirements of 49 C.F.R. Part 192. Respondent did not contest the proposed\nNotice of Amendment. Accordingly, I find that Respondent's procedures as described in the Notice\nare inadequate to ensure safe operation of its pipeline system. Pursuant to 49 U.S.C. $ 60108(a) and\n49 C.F.R. 5 190.237, Respondent is ordered to make the following amendments to its procedures:\ni. In accordance with 49 C.F.R. $ 191.15(b), amend the procedures to include directions Ibr\noperator personnel to make a supplemental incident report where additional related information\nis obtained after an incident report is originally submitted.\n2. In accordance with 49 C.F.R. $ 192.605(c), amend the procedures to include instructions for\npersorutel to follow in the event ofpersonnel error, operation of any safety device, component\nmalfunctions, or other instances of abnormal oneration.\n3.\nIn accordance \\vith 49 C.F.R. $ 192,615, amend the procedures to include instructions for\npersorurel to follow to promptly and effectivelyrespond to a fire, natural disaster, or other gas\npipeline emergency.\nA\nIn accordance with 49 C.F.R. $ 192.629, amend the procedures to include instructions Ibr\npersonnel to safely and reliably perform purging of the pipeline, including measures to enswe\nthat lines containing air are properlypurged.\n5. Within 30 days following receipt of this Order, submit the amended procedures to the Director,\nWestem Region. OPS.\nWARNINGITEMS\nThe Notice did not propose a civil penalty or corective action for Items 7 and 8 in the Notice;\ntherefore, these are considered waming items. Respondent is warned that if it does not take\nappropriate action to correct these items, enforcement action will be taken if a subsequent inspection\nreveals a violation. The warninss were for:\n49 C.F.R. $ 192.605(a) - failing to conduct an annual review of the manual of written\nprocedures for operations, maintenarce, and emergencies during the 1999 period; and\n49 C.F.R. $ 192.616 -- failing to adequately establish a comprehensive public education\nprogram increasing awareness ofthe presence ofthe pipeline for potential excavators and\nenabling the public to recognize a gas pipeline emergency for the purpose of repor-ting it to\nthe operator or appropriate public authorities.\n\n\n\n6\nThe Director, Westem Region, OPS may grant an extension of time for compliance with any of the\nterms of this Order for good cause. A request for an extension must be in writing.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to petition for reconsideration of this Final\nOrder. The petition must be received within 20 days of Respondent's receipt of this Final Order and\nmust contain a brief statement of the issue(s). The filing of the petition automatically stays the\npayment of any civil penalty assessed. All other terms of the Order, including any required\ncorrective actions, remain in ftll effect unless the Associate Administrator, upon written request,\ngrants a stay.\nFailure to comply with this Final Order may result in the assessment of civil penalties of up to\n$ 100,000 per violation per day, or in the referral of the case for judicial enforcement. The terms and\nconditions ofthis Final Order are effective on receiot.\nOCT 3 0 ltiliiil\nDate Issued\niate Administrator\nfor Pipeline Safety\n\nClosure_CPF_No_5-2002-0008_Venoco.pdf\n\nof Transportation\nU.S. Department\nWashington, D.C. 20590\n400 Seventh Street, S.W.\nPipeline and Hazardous\nMaterials Safety Administration\nNOV 28 2006\nMr. William Schneider\nPresident\nVenoco, Inc.\n6267 Carpinteria Ave., Suite 100\nCarpinteria, CA 93013\nRe: CPF No. 5-2002-0008\nDear Mr. Schneider:\nOn October 30, 2003, the Pipeline and Hazardous Materials Safety Administration's\n(PHMSA's)* Office of Pipeline Safety issued a Final Order to Venoco, Inc. in the above-\nreferenced case. The Order assessed a civil penalty of $46,500 and specified actions to be taken\nto comply with the Federal pipeline safety regulations. The Order also required that Venoco,\nInc. address the inadequacies in its procedures. Based on the recommendation of the Director,\nWestern Region, PHMSA, it has been determined that Venoco, Inc. has paid the civil penalty,\ncomplied with the terms of that Order as well as addressed the inadequacies in its procedures.\nAccordingly, this case is now closed and no further enforcement action is contemplated with\nrespect to the matters involved in this case.\nSincerely,\nTams M\names Reynolds\nPipeline Compliance Registry\nPHMSA-Office of Pipeline Safety\ncc: Mr. Chris Hoidal, P.E., Director Western Region, PHMSA\nMr. Keith Wenal, Safety Manager, Venoco, Inc.\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nEffective February 20, 2005, the Pipeline and Hazardous Materials Safety Administration (PHMSA) succeeded\ntransportation and hazardous materials transportation. See, section 108 of the Norman Y. Mineta Research and\nResearch and Special Programs Administration as the agency responsible for regulating safety in pipeline\nFed. Reg. 8299 (February 18, 2005) redelegating the pipeline safety authorities and functions to the PHMSA\nSpecial Programs Improvement Act (Public Law 108-426, 118 Stat. 2423-2429 (November 30, 2004)). See also, 70\nAdministrator.","truncated":false,"body_characters":17981}