{"operation":"document","citation":"CPF 520035001","title":"NUSTAR LOGISTICS, L.P. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2003-01-14","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.406(a)(2), 195.412(a), 195.432, 195.432(b), 195.54(b), 195.551, 195.573(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520035001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520035001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520035001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520035001","body":"Notice of Probable Violation involving NUSTAR LOGISTICS, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.406(a)(2),  195.412(a),  195.432,  195.432(b),  195.54(b),  195.551,  195.573(c). The case was opened on 2003-01-14 and is reported as closed as of 2004-12-02. Proposed civil penalty: $18,000. Assessed civil penalty: $8,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520035001_Final Order_11032004.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520035001/520035001_Final%20Order_11032004.pdf\n\n520035001_final order_11032004_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520035001/520035001_final%20order_11032004_text.pdf\n\n520035001_final order_11032004_text.pdf\n\n2 — 21 — 07, 10 29AM , 202 366 704' ¹ 21 6\nU 5 Department\nof Transportation\nResearch and\nSpeciat Programs\nAdministration\n400 Seventh Si S W\nWashington D C 20sg0\nNOV -3 ZOe\nMr. Rodney Reese\nVice President\nValero Logistics Operations, LP\n6000 North Loop, 1604 West\nSan Antonio, TX 78249-1112\nRe: CPF No. 5-2003-5001\nDear Mr Reese:\nEnclosed is the Final Order issued by the Associate Adrrunistrator for Pipeline Safety in the\nabove-referenced case. It withdraws one of the allegations of violation, makes a finding of violation,\nand assesses a civil penalty of $8, 000. The Order also finds that you have addressed the\ninadequacies in your procedures that were cited in the Notice of Amendment. The penalty payment\nterms are set forth in the Final Order This enforcerinent action closes automatically upon payment.\nYour receipt of the Final Order constitutes service of that document under 49 C. F. R. g 190. 5.\nSincerely,\nJames Reynolds\nPipeline Compliance Registry\nOffice of Pipeline Safety\nEnclosure\nCERTIFIED MAIL — RETURN RECEIPT RE UES TED\n\n\n\n2. — 21 — 07; 10 29WI 202 366 &04&\nDEPARTMENT OF TRANSPORTATION\nRESEARCH AND SPFCIAL PROGRAMS ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of\n)\n)\nValero Logistics Operations, LP )\nRespondent\n)\n)\n)\nCPF No. 5-2003-5001\nFINAL ORDER\nOn March 11, 2002, pursuant to 49 U S C. f 60117, a representative of the Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of Respondent's Colorado Springs Pipeline\nfacilities and records. As a result of the mspection, the Director, Western Region, OPS, issued to\nRespondent, by letter dated January 14, 2003, a Notice of Probable Violation, Proposed Civil\nPenalty, and Notice of Amendment (Notice). In accordance with 49 C. F. R $ 190. 207, the Notice\nproposed finding that Respondent had committed violations of 49 C. F. R. Part 195 and proposed\nassessing a civil penalty of $18, 000 for the alleged violations. The Notice also proposed, in\naccordance with 49 C. F. R. g 190237, that Respondent amend its procedures for operations,\nmaintenance and emergencies. The Notice also warned Respondent to take appropriate corrective\naction with respect to maintaiiimg records of certain rectifier inspections.\nRespondent responded to the Notice by letter dated February 14, 2003 {Response). Respondent\noffered information in explanation of the allegations, offered information concerning the corrective\nactions it has taken, requested the reduction or elimination of the proposed civil penalty, and\nrequested a hearing. The hearing was held via teleconference on May 19, 2003. After this hearing,\nRespondent provided additional information for the record on May 27 and June 16, 2003.\nFINDING OF VIOLATION\nItem 3 in the Notice alleged that Respondent had violated 49 C. F. R. g 195. 412 by failing to\nadequately perform right-of-way inspections between Mile Post (MP) 84 and MP 357 during the\n2000-2001 period. In its response and at the hearing, Respondent did not contest the alleged\nviolation. Accordingly, I find that Respondent violated the following section of 49 C. F. R. Part 195,\nas more fully described in the Notice:\n49 C. F. R. $ 195. 412 — failing to adequately perforin right-of-way inspections between Mile\nPost (MP) 84 and MP 357 during the 2000-2001 period.\n\n\n\n202 366 204 42 6\n2 — 21 — 07, 10 29AM\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent\nWITHDRAWAL OF ALLEGATION\nItem 4 in the Notice alleged that Respondent violated 49 C. F. R. $ 195. 432 by failing to adequately\ninspect eight breakout tanks at the Colorado Spnngs Terminal between May 2001 and March 2002.\nIn its response and at the hearing, Respondent submitted information demonstrating that with respect\nto the specified tanks, although at the time it did not use a form of the kind suggested in API 653 to\nrecord the mspections, its inspection practices were in substantial compliance with regulatory\nrequirements and these inspections were documented on alternative forms. Based on this\ninformation demonstrating compliance with the regulation, I am withdrawing this allegation of\nviolation, Respondent should note, however, that use of standard monthly forms ensures that best\npractices are employed on a consistent basis and facilitates the OPS inspector's compliance\ndeterminations.\nASSESSMEN1. OF PENALTY\nUnder 49 U. S. C. g 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, g 60122 and 49 C. F. R. f 190. 225 require that, in determining the amount of the civil\npenalty, I consider the followmg 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 civil penalty of $8, 000 for the violation of g 195. 412 (Item 3) and a civil\npenalty of $10, 000 for the violation of g 195. 432 (Item 4). As indicated above, Item 4 has been\nwithdrawn. %ith respect to Item 3, Respondent acknowledged that the right-of-way inspections\nbetween Mile Post (MP) 84 and MP 357 were not adequately performed dunng the 2000-2001\nperiod. Specifically, 14 instances were identified where the maximum interval of 21 days between\npatrols was exceeded for various sections of the line. Right of way patrolling is the primary means\nby which a pipeline operator monitors the conditions along a pipeline's route and identifies potential\nsafety concerns such as the exposure of pipe due to soil erosion or encroachment on the nght-of-way\ndue to new construction.\nIn its response and at the hearing, Respondent explained that its right-of-way inspections were\nconducted via aerial patrols performed by a third-party contractor and mdicated that it was unaware\nat the time that the contractor had failed to conduct the patrols in accordance with $ 195 412.\nRespondent further explained that it has replaced this contractor with a new service provider and\nnow requires the contractor to submit a written report documenting each aerial patrol within 24hours\n\n\n\n2 — 21 — 07, 10 29AM, 202 36b 7J4&\nof conducting it and that these patrols are now conducted on a weekly basis. We recognize that '\nRespondent has no history of noncompliance in this area and took prompt action to correct the lack\nof compliance Nevertheless, Respondent is responsible for the actions of its third-party contractor\nand because portions of the right-of-way are near populated and environmentally sensitive areas near\nColorado Springs and Denver, the failure to conduct right-of-way patrols within the specified\nintervals could have adversely impacted public safety Respondent has not presented any\ninformation that would warrant a reduction in the civil penalty amount proposed for this item in the\nNotice. Accordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a total civil penalty of $8, 000 for its violation of g 195. 412.\npayment of the civil penalty must be made within 20 days of service. Payment may be made by\nsending a certified check or money order (containing the CPF Number for this case) payable to \"u S.\nDepartment of Transportation\" to the Federal AvIation Administration, Mike Monroney Aeronautical\nCenter, Financial Operations Division (AMZ-120), P O. Box 25082, Oklahoma City, OK 73125.\nFederal regulations (49 C. F. R g 89. 21(b)(3)) also permit this payment to be made by wire transfer,\nthrough the Federal Reserve Communications System (Fedwire), to the account of the U. S. Treasury.\nDetailed instructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-120), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P. O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893.\nFailure to pay the $8, 000 civil penalty will result in accrual of interest at the current annual rate m\naccordance with 31 U. S. C. $ 3717, 31 C. F. R. ) 901 9 and 49 C. F. R. g 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.\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\nrequirements of 49 C. F. R. Part 195 Specifically, Item 1 of the Notice alleged inadequacies in\nRespondents procedures for submitting supplemental accident reports and Item 2 of the Notice\nalleged inadequacies in Respondent's procedures for operating laterals in accordance with maximum\npressure limits, breakout tank inspections, and coriosion control.\nIn its response, Respondent acknowledged the inadequacies in its procedures cited in the Notice,\nstated that it subsequently amended its procedures, and submitted copies of the amended procedures\nwhich the Director, Western Region, OPS reviewed. Based on the results of this review, I find that\nRespondent's original procedures as described in the Notice were inadequate to ensure safe operation\nof its pipeline systein, but that Respondent has corrected the identified inadequacies. Therefore,\nissuance of an order directing amendment of Respondent's procedures is unnecessary.\n\n\n\n2 — 2 1 — 07, 10 29AM pOP 366 704' ¹ 6l\nWARNING ITEM\nThe Notice did not propose a civil penalty or corrective action for Item 5, failing to mamtain records\ndemonstrating that the inspection of certain rectifiers had been performed in accordance with the\nmax&mum intervals in g 195 573, but warned Respondent that it should take appropriate corrective\naction to correct the item Respondent presented information in its response showing that it has\naddressed the cited item. Respondent is again warned that if OPS finds a violation for any of this\nitem in a subsequent inspection, enforcement action mill be taken.\nUnder 49 C. F. R. g 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's receipt of this Final Order and must contain a brief statement of the issue(s). The filing\nof a petition automatically stays the payment of any civil penalty assessed. However if Respondent\nsubmits payment for the civil penalty, the Final Order becomes the final administrative decision and\nthe right to petition for reconsideration is waived. The terms and conditions of this Final Order are\neffective on receipt,\nStacey Gerard\nAssociate Administrator\nfor Pipeline Safety\nDate Issued","truncated":false,"body_characters":11874}