{"operation":"document","citation":"CPF 520022001","title":"VENOCO, INC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2002-08-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 191.15(b), 192.479(b), 192.481, 192.605(a), 192.613(b), 192.706, 192.717(b), 192.739, 192.745.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520022001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520022001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520022001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520022001","body":"Notice of Probable Violation involving VENOCO, INC. PHMSA's enforcement data identifies the cited regulations as 191.15(b),  192,  192.479(b),  192.481,  192.605(a),  192.613(b),  192.706,  192.717(b),  192.739,  192.745. The case was opened on 2002-08-16 and is reported as closed as of 2005-03-07. Proposed civil penalty: $9,000. Assessed civil penalty: $9,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520022001_Final Order_11292004.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520022001/520022001_Final%20Order_11292004.pdf\n\n520022001_Final Order_11292004.pdf\n\no\nU.5. Deporlment\nol TronsDortotion\nReseorch ond\nSpeciol Progroms\nAdministrotbn\n400 Seveolh Sl . S.W\nWashrnglon. D C 20590\nI'l0V 2 g Zli;r\nMr. Roger Hamson\nVice President, Southem Assets\nVenoco. Inc.\n5464 Carpinteria Avenue, Suite J\nCarpinteria, CA 9301 3-1423\nR.e: CPF No. 5-2002-200i\nDear Mr. Hamson:\nEnclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the\nabove-referenced case. It makes findings of violation, assesses a civil penalty of $9,000, and\nspecifies actions to be taken to comply with the pipeline safety regulations, The Final Order also\nmakes a finding ofinadequate procedures and requires amendment ofcertain ofyour procedures for\noperations, maintenance, and emergencies. The penalty pa)rment terms are set forth in the Final\nOrder. When the civil penalty is paid and the terms of the Compliance Order and Amendment of\nProcedures are completed, as determined by the Director, Westem Region, OPS, this enforcement\naction will be closed. Your receipt of the Final Order constitutes service of that document under\n49 C.F.R. { 190.5.\nSincerely,\n\\r.\n--f\"'-'^ [ lt-- -\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline SafetY\nEnclosure\n\n\n\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPECIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON. DC 20590\nIn the Matter of\nVenoco, Inc.,\nRespondent.\nCPF No. 5-2002-2001\nFINAL ORDER\nBetween July 31 and August 2,2001, pursuant to 49 U.S.C. $ 601 17, a representative of the Office\nof Pipeline Safety (OPS) conducted an on-site pipeline safety inspection of Venoco, Inc.'s\n(Respondent's) facilities and records in Carpinteria, California. As a result of the inspection, the\nDirector, Western Region, OPS, issued to Respondent, by letter dated August16,2002, a Notice of\nProbableViolation, Proposed CivilPenalty,ProposedCompliance Order, andNotice ofAmendment\n(Notice). In accordance with 49 C.F.R. $ 190.207, the Notice proposed finding that Respondent had\ncommitted violations of 49 C.F.R. Part 192, proposed assessing a civil penalty of $9,000 for the\nalleged violations, and proposed that Respondent take certain measures to correct the alleged\nviolations. The Notice also proposed, in accordance with 49 C.F.R. $ 190.237, that Respondent\namend its procedures for operations, maintenance and emergencies.\nRespondent failed to respond within 30 days after it had received the Notice. Respondent's failure\nto respond constitutes a waiver of Respondent's right to contest the allegations in the Notice and\nauthorizes the entry of this Final Order.\nRespondent did not contest the alleged violations in the Notice. Accordingly, pursuant to 49 C.F.R.\ng 190.209(c) and 49 U.S.C. 5 60L22,I find that Respondent violated the following sections of\n49 C.F.R. Part 192, as more fully described in the Notice;\n49 C.F.R. $ 192.605 (item 1) - failing to maintain a written procedural manual having\nsuffrcient detail to allow its personnel to conduct operations in accordance with all\nrequirements of Pm 192;\n49 C.F.R. * 192.479 (Item 2) - failing to protect above-ground pipeline components from\natmospheric corrosion at the flange riser on the Platform Grace;\n\n\n\n2\n49 C.F.R. § 192.481 (Item 8) - failing to demonstrate that above-ground pipeline\ncomponents were evaluated for atmospheric corrosion as required in 1999;\n49 C.F.R. § 192.706 (Item 9) - failing to conduct leakage surveys at onshore locations within\nthe maximum required interval;\n49 C.F.R. § 192.739 (Item 10) - failing to conduct testing and inspections of a pressure\nlimiting and regulating station at an offshore location within the maximum required interval;\n49 C.F.R. § 192.745 (Item 11) - failing to conduct testing and inspections of two\ntransmission line valves at the Carpenteria Plant within the maximum required interval.\nThese findings of violation will be considered prior offenses in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to a civil penalty not to exceed $100,000 per\nviolation for cach 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.\nThe Notice proposed a total civil penalty of $9,000 for the violation of §§ 192.481, 192.706,\n192.739, and 192.745 (Items 8, 9, 10, and 11, respectively). With respect to Item 8 - failure to\ndemonstrate that above-ground pipeline components were evaluated for atmospheric corrosion as\nrequired in 1999 - the Notice proposed a civil penalty of $2,000. Failure to timely evaluate and take\nremedial measures to protect the above-ground portions of the pipeline could potentially jeopardize\nthe integrity of those areas of pipe. Respondent did not offer any information that would justify a\nreduction in the penalty amount proposed in the Notice for this violation. Accordingly, having\nreviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of\n$2,000 for its violation of § 192.481.\nWith respect to Item 9- failure to conduct leakage surveys at onshore locations within the maximum\nrequired interval - the Notice proposed a civil penalty of $2,000. Failure to timely conduct leakage\nsurveys could have adversely impacted public safety. Respondent did not offer any information that\nwould justify a reduction in the penalty amount proposed in the Notice for this violation.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na civil penalty of $2,000 for its violation of § 192.706.\n\n\n\nJ\nWith respect to Item l0 - failure to conduct testing and inspections of a pressure limiting and\nregulating station at an offshore location within the maximum required interval - the Notice\nproposed a civil penalty of $2,000. Failure to timely inspect pressure relief valves could increase\nthe risk of an overpressure incident. Respondent did not offer any information that would justify a\nreduction in the penalty amount proposed in the Notice for this violation. Accordingly, having\nreviewed the record and considered the assessment criteria. I assess Respondent a civil oenaltv of\n$2,000 for its violation of g 192.739.\nWith respect to Item I 1 - failure to conduct testing and inspections of fwo transmission line valves\nat the Carpenteria Plant within the maximum required intewal - the Notice proposed a civil penalty\nof $3,000. Failure to timely inspect transmission line valve operation could result in a situation\nwhere the valve does not fully close when necessary, such as in response to a release incident.\nRespondent did not oflbr any information that would justify a reduction in the penalty amount\nproposed in the Notice for this violation. Accordingly having reviewed the record and considered\ntheassessmentcriteria, IassessRespondentacivilpenaltyof$3,000foritsviolationof$ 192.745.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess Respondent\na total civil penalty of $9,000.\nPayrnent of the civil penalty must be made within 20 days of service. Payment may be made by\nsending acertified check ormoneyorder(containingthe CPFNumber forthis case) payableto \"U.S.\nDepartment ofTransportation\" to theFederal Aviation Administration, MikeMonroneyAeronautical\nCenter, Financial Operations Division (ANIZ-120), P.O. Box 25082, Oklahoma City, OK 73125.\nFederal regulations (49 C.F.R. $ 89.21(bX3) also permit this payrnent to be made by wire transfer,\nthroughthe Federal Reserve Communications System (Fedwire), to the account oftheU.S. Treasury.\nDetailed instructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (,\\NIZ-120), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893.\nFailure to pay the $9,000 civil penalty will result in accrual of interest at the current annual rate in\naccordance with 31 U.S.C. fi3717,31 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 payrnent is not\nmade within I I 0 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.\n\n\n\n4\nCOMPLLANCE ORDER\nThe Notice proposed a Compliance Order for violations of $$ 192.605 and 192.419 (Items I and 2,\nrespectively). Respondent did not contest the proposed Compliance Order. Under 49 U.S.C.\n$ 601 1 8(a), each person who engages in the transportation of gas or who owns or operates a pipeline\nfacility is required to comply with the applicable safety standards established under Chapter 601.\nPursuant to the authority of 49 U.S.C. $ 601 l8(b) and 49 C.F.R. $ 190.217, Respondent is ordered\nto take the following actions to ensure compliance with the pipeline safety regulations applicable to\nits operations. Within 60 days following receipt of this Order, Respondent must:\nI . With respect to the violation of $ 192.605 (Item 1), establish and follow written procedures\nfor operations, maintenance and emergencies for the pipeline fully meeting all requirements\nof Par+\" 192:\n2.\nWith respect to the violation of $ 192.479 (Item 2), perform an atmospheric corrosion control\nevaluation in accordance with the requirements of $ I 92.481 ;\nJ .\nWithin 60 days following receipt of this Order, submit documentation demonstrating that\nthese actions have been completed to the Director, Western Region, Ofhce of Pipeline\nSafety, 12600 Colfax Avenue, Suite 4.-250, Lakewood, CO 0215.\nThe Regional Director may extend the period for complying with any of the required items if the\nRespondent requests an extension and adequatelyjustifies the reasons for the extension.\nFailure to comply with this Order may result in the assessment of civil penalties of up to S100,000\nper vioiation per day, or in the referral of the case for judicial enforcement.\nAMENDMENT OF PROCEDURES\nThe Notice alleged inadequacies in Respondent's procedures for operations, maintenance and\nemergencies and proposed to require amendment of Respondent's procedures to comply with the\nrequirementsof49C.F.R.Partl92. RespondentdidnotcontesttheproposedNoticeofAmendment.\nAccordingly, I find that Respondent's procedures are inadequate to ensure safe operation of its\npipeline system. Pursuant to 49 U.S.C. $ 60108(a) and 49 C.F.R. S 190.237, Respondent is ordered\nto make the following amendments to its procedures. Within 30 days following receipt ofthis Order,\nRespondent must:\nl. With respect to Item 3 of the Notice, amend tlre procedures to include directions for\nsubmitting supplemental incident reports in accordance with $ 191 . 1 5.\n2. With respect to Item 4 ofthe Notice, amend the procedures to include step-by-step processes\nfor conductins continuins surveillance in accordance with 6 192.613.\n\n\n\n5\n3.\nWith respect to Item 5 of the Notice, amend the procedures for line repairs to include the\nprocedure(s) to be used for the permanent field repair of leaks in accordance with $ 192.717.\nA\nWithin 30 days following receipt of this Order, submit copies of the amended procedures to\nthe Director. Westem Reeion, OPS.\nThe Regional Director may extend the period for complying with any of the required items if the\nRespondent roquests an extension and adequatelyjustifies the reasons for the extension.\nFailure to complywith this Amendment ofProcedures mayresult in the assessment of civil penalties\nofup to $100,000 per violation per day, or in the referral ofthe case forjudicial enforcement.\nWARNINGITEMS\nThe Notice did not propose a civil penalty or corrective action for Item 6, failing to demonstrate that\nthe written manual ofprocedures for operations, maintenance, and emergencies had been reviewed\nand updated in years 1999 and 2000 in accordance with $ 195.605; or Itun 7, failing to demonstrate\nthat rectifier R-1 was inspected in accordance with the maximum required interval in $ 192.465.\nTherefore, these are considered to be warning items. Respondent is warned that if it does not take\nappropriate action to corect these items, enforcement action will be taken if a subsequent inspection\nreveals a violation.\nUnder 49 C.F.R. $ 190.215, Respondent has a right to submit a petition for reconsideration of this\nFinal Order. Should Respondent elect to do so, the petition must be received within 20 days of\nRespondent'sreceiptofthisFinalOrderandmustcontainabriefstatementoftheissue(s). Thefiling\nof a petition automatically stays the payrnent of any civil penalty assessed. All other terms of the\nOrder, including anyrqquired corrective action and amendment ofprocedures, remain in full effect\nunless the Associate Administrator, upon request, grants a stay. The terms and conditions of this\nFinal Order are effective on receipt.\nli0y 2 3 l]ltll\nDate Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":14016}