{"operation":"document","citation":"CPF 520070003","title":"PACIFIC OPERATORS OFFSHORE — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2007-02-16","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.745(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520070003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520070003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520070003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520070003","body":"Notice of Probable Violation involving PACIFIC OPERATORS OFFSHORE. PHMSA's enforcement data identifies the cited regulation as 192.745(a). The case was opened on 2007-02-16 and is reported as closed as of 2010-04-16. 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\n520070003_Final Order_03172010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/520070003_Final%20Order_03172010.pdf\n\n520070003_Final Order_03172010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/520070003_Final%20Order_03172010_text.pdf\n\n520070003_Operator Response_03012007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/520070003_Operator%20Response_03012007.pdf\n\nPOO 5-2007-0003 NOPV-PCP 2-16-07.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/POO%205-2007-0003%20NOPV-PCP%202-16-07.pdf\n\npoo 5-2007-0003 nopv-pcp 2-16-07_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/poo%205-2007-0003%20nopv-pcp%202-16-07_text.pdf\n\npoo 5-2007-0003 nopv-pcp 2-16-07_text.pdf\n\nO\nU. S. Department\nof Transportation\nPipeline and\nHazardous Materials Safety\nAdministration\n12300 W Dakota Ave, Suite 110\nLakewood, CO 80228\nSENT TO COMPLIANCE REGISTRY\nHardcopy Elec tronical\n¹ of Copiesd / Date i italo 1\nNOTICE OF PROBABLE VIOLATION\nAND\nPROPOSED CIVIL PENALTY\nCERTIFIED MAIL - RETURN RECEIPT RE UESTED\nFebruary 16, 2007\nMr. Bruce Johnston\nOperations Superintendent\nPacific Operators Offshore, LLC\nP. O. Box 5565\nOxnard, CA 93031\nCPF 5-2007-0003\nDear Mr, Johnston:\nOn July 26-27, 2005, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an\non-site pipeline safety inspection of the Pacific Operators Offshore (POO) pipeline and\nfacilities at your offices in Carpinteria, California.\nAs a result of the inspection, it appears that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected and\nthe probable violation is:\n192. 745 Valve maintenance: Transmission lines.\n(a) Each transmission line valve that might be required during any emergency\nmust be inspected and partially operated at intervals not exceeding 15-months,\nbut at least once each calendar year.\nPacific Operators Offshore did not inspect its mainline block valve, once a year, in the\nLa Conchita plant for the last two years. Pacific Operators Offshore staff admitted that\nthey failed to inspect this valve as required by Part 192. 745(a).\n\n\n\nPro osed Civil Penalt\nUnder 49 United States Code, $ 60122, you are subject to a civil penalty not to exceed\n$100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000\nfor any related series of violations. The Compliance Officer has reviewed the circumstances\nand supporting documentation involved in the above probable violation and has recommended\nthat you be preliminarily assessed a civil penalty of $10, 000 as follows:\nItem number PENALTY\n$10, 000\nRes onse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings Please refer to this document and note the response\noptions. If you do not respond within 30 days of receipt of this Notice, this constitutes a\nwaiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice\nto you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 5-2007-0003 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nChris oidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Response Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 H. Monfared (¹114345)\n\n520070003_Final Order_03172010_text.pdf\n\nMAR 17 2010\nMr. Robert P. Carone\nPresident\nPacific Operators Offshore, LLC\n1145 Eugenia Place\nCarpinteria, CA 93013\nRe: CPF No. 5-2007-0003\nDear Mr. Carone:\nEnclosed is the Final Order issued in the above-referenced case. It makes a finding of violation\nand assesses a civil penalty of $10,000. The penalty payment terms are set forth in the Final\nOrder. This enforcement action closes automatically upon payment. Service of the Final Order\nby certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49\nC.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\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED [7009 1410 0000 2472 5170]\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. 5-2007-0003\n)\nRespondent. )\n______________________________)\nFINAL ORDER\nOn July 26-27, 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 (Respondent or Pacific Operators), in Carpinteria, California. Respondent’s\npipeline consists of a 12-inch natural gas pipeline running approximately 5.8 miles from the\nHogan offshore platform to the La Conchita Plant in La Conchita, California.\nAs a result of the inspection, the Director, Western Region, PHMSA (Director), issued to\nRespondent, by letter dated February 16, 2007, a Notice of Probable Violation and Proposed\nCivil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding\nthat Respondent had violated 49 C.F.R. § 192.745(a) and proposed assessing a civil penalty of\n$10,000 for the alleged violation.\nPacific Operators responded to the Notice by letter dated March 1, 2007 (Response), and\nrequested a hearing. An informal hearing via telephone conference was held on August 8, 2007,\nwith Larry White, Office of Chief Counsel, PHMSA, presiding.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a), which states:\n§ 192.745 Valve maintenance: Transmission lines.\n(a) Each transmission line valve that might be required during any\nemergency must be inspected and partially operated at intervals not exceeding\n\n\n\n2\n15 months, but at least once each calendar year.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.745(a) by failing to inspect and\npartially operate, at least once each calendar year, each transmission line valve on its pipeline\nthat might be required during emergencies. Specifically, the Notice alleged that Pacific\nOperators failed to inspect its mainline block valve at the La Conchita Plant for years 2003 and\n2004.\nIn its Response and during the hearing, Pacific Operators acknowledged that it was unable to\nproduce inspection forms or records demonstrating that the required annual valve inspection was\nperformed for 2003 or 2004, but contended that periodic operation of the valve during the course\nof the year meant that it was operational and therefore met the inspection and partial operation\nrequirement of § 192.745(a).\nOPS stated that it had obtained a copy of the relevant section of Respondent’s written Operations\nand Maintenance Manual, entitled “Procedure 7.01 Emergency Valve Maintenance.” This\nwritten procedure required specific actions to be taken during annual valve inspections, including\ngreasing or lubricating the valve, introducing power to powered valves and fully or partially\noperating the valve, inspecting for atmospheric corrosion, inspecting the area around the valve to\nensure it was accessible by personnel, checking for blow-down obstructions, and checking\nsignage. In addition, Procedure 7.01 required that a record of such annual valve inspection be\ncreated by completion of Form 7.01. At the hearing, Respondent acknowledged that it had failed\nto follow its own written procedures for performing and documenting the valve inspection.\nMoreover, Respondent’s argument that the regular operation of a transmission line valve satisfies\nthe annual inspection requirement is unpersuasive. This argument amounts to the proposition\nthat OPS’s longstanding requirements for periodic maintenance inspections and recordkeeping\nfor pipeline components such as mainline valves can be disregarded. Periodic valve inspection\nrequirements, however, were included in the Federal pipeline safety regulations for good\nreason—to ensure the safe operation of pipeline facilities. If a pipeline valve needs service,\nwaiting to find out until the operator is in the midst of using the valve, such as during an\nunintended shut-down, could compromise safety. Compliance with the annual valve inspection\nrequirement is not optional.\nAccordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.745(a) by failing to perform documented annual inspections of its mainline block valve at\nthe La Conchita Plant for years 2003 and 2004.\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.\n\n\n\n3\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.\nThe Notice proposed a total civil penalty of $10,000 for Respondent’s violation of 49 C.F.R.\n§ 192.745(a), for failing to perform documented annual inspections of the company’s mainline\nblock valve at the La Conchita Plant for years 2003 and 2004. In its Response and during the\nhearing, Pacific Operators stated that compliance was important and that it gave regular attention\nto its valves. Respondent reiterated its contention that it believed it had “met the spirit of the\nrequirement” and characterized the non-compliance as a recordkeeping issue.\nAs stated above, compliance with periodic valve inspection requirements is a key part of pipeline\nsafety. Respondent’s own procedures required that a documented annual inspection be\nperformed; the company acknowledged that it failed to follow these procedures. Maintaining\ncomplete and accurate records is itself important to safety because, in the absence of complete\nrecords, an operator’s managers cannot perform effective oversight of personnel who perform\npipeline maintenance. Respondent has presented no information that would warrant a reduction\nin the civil penalty amount proposed in the Notice for this violation.\nAccordingly, having reviewed the record and considered the assessment criteria, I assess\nRespondent a total civil penalty of $10,000 for violating 49 C.F.R. § 192.745(a).\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\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, OK 73125; (405) 954-8893.\nFailure to pay the $10,000 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 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 110 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.\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\n\n\n\n4\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590. PHMSA is willing to accept petitions received no later than 20 days after receipt of\nservice of this Final Order by the Respondent, provided such petitions contain a brief statement\nof the issue(s) and meet all other requirements of 49 C.F.R. § 190.215. Unless the Associate\nAdministrator, upon request, grants a stay, the terms and conditions of this Final Order are\neffective upon receipt of service.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":13954}