{"operation":"document","citation":"CPF 520067001","title":"PACIFIC OPERATORS OFFSHORE — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2006-06-15","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.420(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520067001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520067001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520067001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520067001","body":"Notice of Probable Violation involving PACIFIC OPERATORS OFFSHORE. PHMSA's enforcement data identifies the cited regulation as 195.420(b). The case was opened on 2006-06-15 and is reported as closed as of 2010-09-16. Proposed civil penalty: $10,000. Assessed civil penalty: $10,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520067001_closure letter_09162010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520067001/520067001_closure%20letter_09162010.pdf\n\n520067001_closure letter_09162010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520067001/520067001_closure%20letter_09162010_text.pdf\n\n520067001_FinalOrder_04222010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520067001/520067001_FinalOrder_04222010.pdf\n\n520067001_FinalOrder_04222010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520067001/520067001_FinalOrder_04222010_text.pdf\n\n520067001_closure letter_09162010_text.pdf\n\nCERTIFIED MAIL – RETURN RECEIPT REQUIRED\nSeptember 16, 2010\nMr. Bruce Johnston\nOperations Superintendent\nPacific Operators Offshore, LLC\nP.O. Box 5565\nOxnard, CA 93031\nRe: CPF 5-2006-7001\nCase Closure Letter\nDear Mr. Johnston:\nOn July 25 and 27, 2005, a representative from Pipeline Hazardous Material Safety\nAdministration (PHMSA) Western Region, pursuant to Chapter 601 of 49 United States Code,\nconducted an on-site inspection of Pacific Operators Offshore LLC’s (Pacific Operators)\nwritten procedures contained within its Operations and Maintenance (O&M) Procedural\nManuals. Our representative also reviewed records to ensure that the O&M procedures were\nproperly implemented. As a result of the inspection, a Final Order was issued on April, 22,\n2010 ordering Pacific Operator to pay a civil penalty and complete certain corrective actions\noutlined in the terms of the compliance order.\nMy staff recently verified that Pacific Operators has paid the civil penalty and terms of the\ncompliance order have been satisfied. This letter is to inform you no further action is necessary\nand this case is considered closed. Thank you for your cooperation.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\n\n520067001_FinalOrder_04222010_text.pdf\n\nAPR 22 2010\nMr. Robert P. Carone\nPresident\nPacific Operators Offshore LLC\n1145 Eugenia Pl., Suite 200\nCarpinteria, CA 93013\nRe: CPF No. 5-2006-7001\nDear Mr. Carone:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $10,000, and specifies actions that need to be taken by\nPacific Operators Offshore LLC to comply with the pipeline safety regulations. The penalty\npayment terms are set forth in the Final Order. When the civil penalty has been paid and the\nterms of the compliance order completed, as determined by the Director, Western Region, this\nenforcement action will be closed. Service of the Final Order by certified mail is deemed\neffective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Chris Hoidal, Director, Western Region, PHMSA\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED [7009 1410 0000 2472 2438]\n\n\n\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)\nPacific Operators Offshore LLC, ) CPF No. 5-2006-7001\n)\nRespondent. )\n______________________________)\nFINAL ORDER\nOn July 25 to 26, 2005, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Pacific Operators\nOffshore LLC (PACOPS or Respondent) at its offices in Carpinteria, California. Respondent\noperates two platforms in federal waters off the coast of California, which are connected by two\npipelines, a 10-inch crude-oil line and a 12-inch produced gas line, to an onshore process facility\nin La Conchita, California.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated June 15, 2006, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that PACOPS had violated 49 C.F.R. § 195.420(b) and proposed\nassessing a civil penalty of $10,000 for the alleged violation. The Notice also proposed ordering\nRespondent to take certain measures to correct the alleged violation.\nPACOPS failed to respond within 30 days of receipt of service of the Notice.1 Such failure to\nrespond constitutes a waiver of Respondent’s right to contest the allegations in the Notice and\nauthorizes the entry of this Final Order.2\n1 49 C.F.R. 190.209(c) (stating that a “[f]ailure of the respondent to respond” within 30 days of receiving a Notice\n“constitutes a waiver of the right to contest the allegations in the notice of probable violation and authorizes the\nAssociate Administrator, OPS, without further notice to the respondent, to find facts to be as alleged in the notice of\nprobable violation and to issue a final order”).\n2 PACOPS attempted to respond to the Notice and request an informal hearing by letters dated February 18 and\nMarch 6, 2009. As PHMSA received those letters nearly four years after the issuance of the Notice and Respondent\nhas not provided any explanation for that delay, I am issuing the Final Order in this case without affording any\nconsideration to either.\n\n\n\n2\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that PACOPS violated 49 C.F.R. § 195.420(b), which states:\n§ 195.420 Valve maintenance.\n(a) . . . .\n(b) Each operator shall, at intervals not exceeding 7 1/2 months, but at\nleast twice each calendar year, inspect each mainline valve to determine\nthat it is functioning properly.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.420(b) by failing to, at intervals not\nexceeding 7 1/2 months, but at least twice each calendar year, inspect each mainline valve to\ndetermine it is functioning properly. Specifically, the Notice alleged that PACOPS’s personnel\nadmitted that it had not inspected the mainline block valve at the La Conchita plant twice a year\nfor the 2003 and 2004 calendar years. Respondent waived its right to contest these allegations\nby failing to submit a timely response to the Notice. Accordingly, based upon a review of all of\nthe evidence, I find that Respondent violated 49 C.F.R. § 195.420(b) by failing to, at intervals\nnot exceeding 7 1/2 months, but at least twice each calendar year, inspect each mainline valve to\ndetermine it is functioning properly.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations.\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; the Respondent’s ability to pay the penalty and any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $10,000 for the violations cited above.\n\n\n\n3\nItem 1: The Notice proposed a civil penalty of $10,000 for Respondent’s violation of 49 C.F.R.\n§ 195.420(b) for failing to, at intervals not exceeding 7 1/2 months, but at least twice each\ncalendar year, inspect each mainline valve to determine it is functioning properly. PACOPS\nwaived its right to contest the civil penalty by failing to submit a timely response to the Notice,\nand I find that proposed amount is justified by the record and statutory assessment criteria.\nAccordingly, having reviewed the record and considered the assessment criteria for the Item\ncited above, I assess Respondent a total civil penalty of $10,000.\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), made\npayable to “U.S. Department of Transportation,” to the Federal Aviation Administration, Mike\nMonroney Aeronautical Center, Financial Operations Division (AMZ-341), P.O. Box 269039,\nOklahoma City, OK 73125. Federal regulations (49 C.F.R. § 89.21(b)(3)) also permit payment\nto be made by wire transfer through the Federal Reserve Communications System (Fedwire), to\nthe account of the U.S. Treasury. Detailed instructions are contained in the enclosure. Questions\nconcerning wire transfers should be directed to: Financial Operations Division (AMZ-341),\nFederal Aviation Administration, Mike Monroney Aeronautical Center, P.O. Box 269039,\nOklahoma City, OK 73125; (405) 954-8893.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violations of 49\nC.F.R. § 195.420(b). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations:\n1. With respect to the violation of § 195.420(b) (Item 1), Respondent must:\na. Perform a biannual inspection of the mainline block valve at the La Conchita\nplant as required by 49 C.F.R. § 195.420(b) and keep a record of those inspections\nas required by 49 C.F.R. § 195.404(c)(3);\nb. Maintain documentation of the safety improvement costs associated with\nfulfilling this Compliance Order and submit the total to Chris Hoidal, Director,\nWestern Region, PHMSA. Costs shall be reported in two categories:\ni. Total cost associated with preparation/revision of plans, procedures,\nstudies, and analyses;\n\n\n\n4\nii. Total cost associated with replacements, additions, and other changes to\npipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590. A copy of the petition should also be sent to: Assistant Chief Counsel for Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590. The petition must be received no later than 20 days after service of this Final Order upon\nthe Respondent and must contain a brief statement of the issue(s) and meet all other requirements\nof 49 C.F.R. § 190.215. The filing of the petition automatically stays the payment of any civil\npenalty assessed. Unless the Associate Administrator, upon request, grants a stay, all other terms\nand conditions of this Final Order are effective upon receipt of service.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":12491}