{"operation":"document","citation":"CPF 520040005","title":"BREA CANON OIL COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2004-03-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.463(a), 192.465(a), 192.467(d), 192.706(a), 192.731.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520040005.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520040005.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520040005","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520040005","body":"Notice of Probable Violation involving BREA CANON OIL COMPANY. PHMSA's enforcement data identifies the cited regulations as 192.463(a),  192.465(a),  192.467(d),  192.706(a),  192.731. The case was opened on 2004-03-18 and is reported as closed as of 2006-10-02. Proposed civil penalty: $28,000. Assessed civil penalty: $4,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520040005_final order_09132006.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520040005/520040005_final%20order_09132006.pdf\n\nCPF_NO_5-2004-0005.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520040005/CPF_NO_5-2004-0005.pdf\n\n520040005_final order_09132006.pdf\n\n400 Seventh Street, S.W\nU.S. Department Washington, D.C. 20590\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration\nSEP 1 3 2006\nMr. Rey Javier\nVice President\nBrea Canyon Oil Company, Inc.\n23903 South Normandie\nHarbor City, California 907 10\nRe: CPF No. 5-2004-0005\nDear Mr. Javier:\nEnclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety\nin the above-referenced case. It withdraws two of the allegations of violation, makes a finding of\nviolation, and assesses a civil penalty of $4,000.00. It hrther finds that you have completed the\nactions specified in the Notice required to comply with the pipeline safety regulations with\nrespect to the remaining violation. The penalty payment terms are set forth in the Final Order.\nWhen the civil penalty is paid, this enforcement action will be closed. Your receipt of the Final\nOrder constitutes service under 49 C.F.R. 5 190.5.\nSincerely,\nJames Reynolds\nPipeline Compliance Registry\nPHMSA-Office of Pipeline Safety\nEnclosure\ncc: Mr. Chris Hoidal, P.E., Director, Western Region, PHMSA\nMr. Timothy Burch, Environmental & Construction Technician, Brea Canyon Oil Company,\nInc.\nCERTIFIED MAIL -RETURN RECEIPT REQUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTFUTION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of\nBrea Canyon Oil Company, Inc, 1 CPF NO. 5-2004-0005\n1\n1\nRespondent 1\nFINAL ORDER\nOn November 4 and 5,2002, pursuant to 49 U.S.C. $601 17, a representative of the Pipeline and\nHazardous Materials Safety Administration's (PHMSA'S)' Office of Pipeline Safety conducted\nan on-site pipeline safety inspection of Respondent's pipeline facilities, manuals, and records in\nLos Angeles, California. As a result of the inspection, the Director, Western Region, issued to\nRespondent, by letter dated March 18,2004, a Notice of Probable Violation, Proposed Civil\nPenalty, Proposed Compliance Order, (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Respondent had violated 49 C.F.R. Part 192, proposed assessing a\ncivil penalty of $28,000 for the alleged violations, and proposed ordering Respondent to take\ncertain measures to correct the alleged violations. The Notice also warned Respondent to take\nappropriate corrective action on other cited items.\nRespondent responded to the Notice by letter dated April 7,2004 (Response). Respondent\ncontested many of the allegations, offered information to explain the allegations, and requested\nthat the proposed civil penalty be reduced. Respondent did not request a hearing, and therefore\nhas waived its right to one.\nFINDING OF VIOLATION\n(Contested)\nItem 1 in the Notice alleged Respondent violated 49 C.F.R. $ 192.463(a) by failing to have each\ncathodic protection system required by Subpart I, \"Requirements for Corrosion Control,\" provide\n' Effective February 20,2005, the Pipeline and Hazardous Materials Safety Administration (PHMSA) succeeded\nResearch and Special Programs Administration as the agency responsible for regulating safety in pipeline\ntransportation and hazardous materials h-ansportation. See, section 108 of the Norman Y. Mineta Research and\nSpecial Programs Improvement Act (Public Law 108-426, 118 Stat. 2423-2429 (November 30,2004)). See also, 70\nFed. Reg. 8299 (February 18,2005) redelegating the pipeline safety authorities and functions to the PHMSA\nAdministrator.\n\n\n\na level of cathodic protection that complies with one or more of the applicable criteria contained\nin Appendix D of Part 192. At the time of inspection, Respondent failed to provide an adequate\nlevel of cathodic protection on its pipelines for years 1999,2000, and 200 1. Respondent uses the\ncriteria for cathodic protection of Appendix D, section I (A)(l). The locations, as charted in the\nNotice, did not have at least a negative cathodic pipe-to-soil potential of 850 mV and some were\nnot adequate for two or more inspection cycles. The Response acknowledges the problem and\ncites its replacement and other upgrading efforts.\nAccordingly, I find that Respondent violated 49 C.F.R. 5 192.463(a) as alleged in the Notice.\nThis finding of violation will be considered a prior offense in any subsequent action taken\nagainst Respondent.\nWITHDRAWAL OF ALLEGATIONS\nItem 4, as more fully described in the Notice, alleged that Respondent had violated 49 C.F.R.\n5 192.706(a), by failing to conduct leakage surveys of transmission lines at the prescribed\nintervals. The subject jurisdictional gas gathering pipelines are transferring un-odorized gas\nfrom production sites to a dehydration plant. 49 C.F.R. 5 192.706(a) requires Respondent to leak\nsurvey its pipeline twice a year. However, this system is under negative (suction) pressure and,\ntherefore, a hole in the pipe would allow air in as opposed to allowing gas out. In this instance,\nthe performance of a leak survey would be moot. Based on the information at hand, I am\nwithdrawing this allegation of violation.\nItem 5, as more fully described in the Notice, alleged that Respondent had violated 49 C.F.R.\n5 192.731 by failing to properly inspect and test its compressor station pressure relief valve\n(PRV) in accordance with 49 C.F.R. 5 5 192.739 and 192.743 at the time. Respondent has one\npressure relief device (PRV) downstream from a compressor in its dehydration plant. Based on\ninformation from Respondent and senior engineers in the Western Region, it was determined that\nthe compressor and the PRV are within the Respondent's plant property and not regulated by\nDOT. Therefore, I am withdrawing this allegation of violation based on the information at hand.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. 5 60122, Respondent is subject to a civil penalty not to exceed $25,000 per\nviolation for each day of the violation up to a maximum of $500,000 for any related series of\nviolation^.^\n49 U.S.C. 5 601 22 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil\npenalty, I consider the following criteria: nature, circumstances, and gravity of the violation,\ndegree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability\nto pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on\nRespondent's ability to continue in business, and such other matters as justice may require.\nThe Pipeline Safety Improvement Act of 2002, Pub. L. No. 107-355, § 8(b)(l), 116 Stat. 2992, increased the civil\npenalty liability for violating a pipeline safety standard to $100,000 per violation for each day of the violation up to\na maximum of $1,000,000 for any related series of violations.\n\n\n\nThe Notice proposed a total civil penalty of $28,000.00 for three of the violations.\nItem 1 of the Notice proposed a civil penalty of $9000.00 for violation of 49 C.F.R.\n5 192.463(a). Respondent violated 49 C.F.R. 192.463(a) by failing to provide the applicable\nlevel of cathodic protection. Although Respondent failed to provide an adequate level of\ncathodic protection for the three years on its pipelines, Respondent appears to have expressed its\nwillingness to achieve compliance with applicable regulations. Respondent has aggressively\ntried to and fixed its external corrosion problem. Respondent acknowledged the problem and\nrequested that the proposed civil penalty be lowered. Based on the amount of effort and expense\nRespondent has incurred to remediate this deficiency, the penalty is reduced and I assess\nrespondent a civil penalty of $4,000.00 for violation of 49 C.F.R. 5 192.463(a).\nItem 4 of the Notice proposed a civil penalty of $5,000.00. Since I have withdrawn the\nallegation of violation of 49 C.F.R. 5 192.706(a) regarding leak surveys, I withdraw the\nassociated penalty of $5,000.00.\nItem 5 of the Notice proposed a civil penalty of $14,000.00. Since I have withdrawn the\nallegation of violation 49 C.F.R. 5 192.73 1 for failing to inspect and test in accordance with\n49 C.F.R. 5 5 192.739 and 192.743 at the time, I withdraw the associated penalty of $14,000.00.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a total civil penalty of $4,000.00 for violation of 49 C.F.R. 5 192.463(a).\nRespondent has the ability to pay this penalty without adversely affecting its ability to continue\nin business.\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\n\"U.S. Department of Transportation\" to the Federal Aviation Administration, Mike Monroney\nAeronautical Center, Financial Operations Division (AMZ-300), P.O. Box 25082, Oklahoma\nCity, OK 73 125.\nFederal regulations (49 C.F.R. 5 89.21(b)(3)) also permit this payment to be made by wire\ntransfer, through the Federal Reserve Communications System (Fedwire), to the account of the\nU.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire\ntransfers should be directed to: Financial Operations Division (AMZ-300), Federal Aviation\nAdministration, Mike Monroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK\n73 125; (405) 954-8893.\nFailure to pay the $4,000.00 civil penalty will result in accrual of interest at the current annual\nrate in accordance with 3 1 U.S.C. 5 371 7,3 1 C.F.R. 5 901.9 and 49 C.F.R. 5 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 1 10 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a United\nStates District Court.\n\n\n\nCOMPLIANCE ORDER\nThe Notice proposed a Compliance Order with respect to Item 1 in the Notice for violation of\n49 C.F.R. $ 192.463(a). Under 49 U.S.C. $ 601 18(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under Chapter 601. The Director, Western Region,\nPHMSA has indicated that Respondent has aggressively tried to and fixed its external corrosion\nproblem by replacing anode wells and redirecting the different isolation points between its\nrectifiers as well as taking other corrective actions. Accordingly, since compliance has been\nachieved with respect to this violation, the compliance terms are not included in this Order.\nWARNING ITEMS\nThe Notice did not propose a civil penalty or corrective action for Items 2 and 3 in the Notice but\nwarned Respondent that it should take appropriate corrective action to correct the items.\nItem 2, as more fully described in the Notice, was for failing to take action in compliance with\n49 C.F.R. $ 192.465(a) with respect to monitoring external corrosion. In its Response,\nRespondent interpreted that it only had to survey 10% of its pipeline per the exception in 49\nC.F.R. $ 192.465(a). 49 C.F.R. $ 192.465(a) applies to all regulated lines but it does give an\nexception for separately protected short sections of mains or transmission pipelines, not in excess\nof 100 feet in length. This exception does not apply to Respondent's pipelines subject to the\nNotice. Therefore, this is considered to be a warning item. Respondent is warned that if it does\nnot take appropriate action to correct the citation, enforcement action will be taken if a\nsubsequent inspection reveals a violation.\nItem 3, as more fully described in the Notice, was a warning with respect to 49 C.F.R. 192.467\n(a-d) External corrosion control: Electrical isolation. Respondent presented information in its\nResponse showing that it has taken action towards addressing the cited item.\nUnder 49 C.F.R. $ 190.2 15, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be received within 20 days of Respondent's receipt of this\nFinal Order and must contain a brief statement of the issue(s). The filing of the petition\nautomatically stays the payment of any civil penalty assessed. However, if Respondent submits\npayment for the civil penalty, the Final Order becomes the final administrative decision and the\nright to petition for reconsideration is waived. The terms and conditions of this Final Order are\neffective on receipt.\nSEP 1 3 '?oliF,\nDate Issued\nctin Associate Administrator\nr ipeline Safety","truncated":false,"body_characters":13103}