# PACIFIC OPERATORS OFFSHORE — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 192.745(a).
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- **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.

Official case documents:

520070003_Final Order_03172010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/520070003_Final%20Order_03172010.pdf

520070003_Final Order_03172010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/520070003_Final%20Order_03172010_text.pdf

520070003_Operator Response_03012007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520070003/520070003_Operator%20Response_03012007.pdf

POO 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

poo 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

poo 5-2007-0003 nopv-pcp 2-16-07_text.pdf

O
U. S. Department
of Transportation
Pipeline and
Hazardous Materials Safety
Administration
12300 W Dakota Ave, Suite 110
Lakewood, CO 80228
SENT TO COMPLIANCE REGISTRY
Hardcopy Elec tronical
¹ of Copiesd / Date i italo 1
NOTICE OF PROBABLE VIOLATION
AND
PROPOSED CIVIL PENALTY
CERTIFIED MAIL - RETURN RECEIPT RE UESTED
February 16, 2007
Mr. Bruce Johnston
Operations Superintendent
Pacific Operators Offshore, LLC
P. O. Box 5565
Oxnard, CA 93031
CPF 5-2007-0003
Dear Mr, Johnston:
On July 26-27, 2005, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an
on-site pipeline safety inspection of the Pacific Operators Offshore (POO) pipeline and
facilities at your offices in Carpinteria, California.
As a result of the inspection, it appears that you have committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected and
the probable violation is:
192. 745 Valve maintenance: Transmission lines.
(a) Each transmission line valve that might be required during any emergency
must be inspected and partially operated at intervals not exceeding 15-months,
but at least once each calendar year.
Pacific Operators Offshore did not inspect its mainline block valve, once a year, in the
La Conchita plant for the last two years. Pacific Operators Offshore staff admitted that
they failed to inspect this valve as required by Part 192. 745(a).



Pro osed Civil Penalt
Under 49 United States Code, $ 60122, you are subject to a civil penalty not to exceed
$100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000
for any related series of violations. The Compliance Officer has reviewed the circumstances
and supporting documentation involved in the above probable violation and has recommended
that you be preliminarily assessed a civil penalty of $10, 000 as follows:
Item number PENALTY
$10, 000
Res onse to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline
Operators in Compliance Proceedings Please refer to this document and note the response
options. If you do not respond within 30 days of receipt of this Notice, this constitutes a
waiver of your right to contest the allegations in this Notice and authorizes the Associate
Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice
to you and to issue a Final Order.
In your correspondence on this matter, please refer to CPF 5-2007-0003 and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Chris oidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Compliance Registry
PHP-500 H. Monfared (¹114345)

520070003_Final Order_03172010_text.pdf

MAR 17 2010
Mr. Robert P. Carone
President
Pacific Operators Offshore, LLC
1145 Eugenia Place
Carpinteria, CA 93013
Re: CPF No. 5-2007-0003
Dear Mr. Carone:
Enclosed is the Final Order issued in the above-referenced case. It makes a finding of violation
and assesses a civil penalty of $10,000. The penalty payment terms are set forth in the Final
Order. This enforcement action closes automatically upon payment. Service of the Final Order
by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49
C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Chris Hoidal, Director, Western Region
CERTIFIED MAIL – RETURN RECEIPT REQUESTED [7009 1410 0000 2472 5170]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
______________________________
)
In the Matter of )
)
Pacific Operators Offshore, LLC, ) CPF No. 5-2007-0003
)
Respondent. )
______________________________)
FINAL ORDER
On July 26-27, 2005, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
conducted an on-site pipeline safety inspection of the facilities and records of Pacific Operators
Offshore, LLC (Respondent or Pacific Operators), in Carpinteria, California. Respondent’s
pipeline consists of a 12-inch natural gas pipeline running approximately 5.8 miles from the
Hogan offshore platform to the La Conchita Plant in La Conchita, California.
As a result of the inspection, the Director, Western Region, PHMSA (Director), issued to
Respondent, by letter dated February 16, 2007, a Notice of Probable Violation and Proposed
Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding
that Respondent had violated 49 C.F.R. § 192.745(a) and proposed assessing a civil penalty of
$10,000 for the alleged violation.
Pacific Operators responded to the Notice by letter dated March 1, 2007 (Response), and
requested a hearing. An informal hearing via telephone conference was held on August 8, 2007,
with Larry White, Office of Chief Counsel, PHMSA, presiding.
FINDING OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a), which states:
§ 192.745 Valve maintenance: Transmission lines.
(a) Each transmission line valve that might be required during any
emergency must be inspected and partially operated at intervals not exceeding



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15 months, but at least once each calendar year.
The Notice alleged that Respondent violated 49 C.F.R. § 192.745(a) by failing to inspect and
partially operate, at least once each calendar year, each transmission line valve on its pipeline
that might be required during emergencies. Specifically, the Notice alleged that Pacific
Operators failed to inspect its mainline block valve at the La Conchita Plant for years 2003 and
2004.
In its Response and during the hearing, Pacific Operators acknowledged that it was unable to
produce inspection forms or records demonstrating that the required annual valve inspection was
performed for 2003 or 2004, but contended that periodic operation of the valve during the course
of the year meant that it was operational and therefore met the inspection and partial operation
requirement of § 192.745(a).
OPS stated that it had obtained a copy of the relevant section of Respondent’s written Operations
and Maintenance Manual, entitled “Procedure 7.01 Emergency Valve Maintenance.” This
written procedure required specific actions to be taken during annual valve inspections, including
greasing or lubricating the valve, introducing power to powered valves and fully or partially
operating the valve, inspecting for atmospheric corrosion, inspecting the area around the valve to
ensure it was accessible by personnel, checking for blow-down obstructions, and checking
signage. In addition, Procedure 7.01 required that a record of such annual valve inspection be
created by completion of Form 7.01. At the hearing, Respondent acknowledged that it had failed
to follow its own written procedures for performing and documenting the valve inspection.
Moreover, Respondent’s argument that the regular operation of a transmission line valve satisfies
the annual inspection requirement is unpersuasive. This argument amounts to the proposition
that OPS’s longstanding requirements for periodic maintenance inspections and recordkeeping
for pipeline components such as mainline valves can be disregarded. Periodic valve inspection
requirements, however, were included in the Federal pipeline safety regulations for good
reason—to ensure the safe operation of pipeline facilities. If a pipeline valve needs service,
waiting to find out until the operator is in the midst of using the valve, such as during an
unintended shut-down, could compromise safety. Compliance with the annual valve inspection
requirement is not optional.
Accordingly, after considering all the evidence, I find that Respondent violated 49 C.F.R.
§ 192.745(a) by failing to perform documented annual inspections of its mainline block valve at
the La Conchita Plant for years 2003 and 2004.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any
related series of violations.



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In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I
must consider the following criteria: the nature, circumstances, and gravity of the violation,
including adverse impact on the environment; the degree of Respondent’s culpability; the history
of Respondent’s prior offenses; the Respondent’s ability to pay the penalty and any effect that
the penalty may have on its ability to continue doing business; and the good faith of Respondent
in attempting to comply with the pipeline safety regulations. In addition, I may consider the
economic benefit gained from the violation without any reduction because of subsequent
damages, and such other matters as justice may require.
The Notice proposed a total civil penalty of $10,000 for Respondent’s violation of 49 C.F.R.
§ 192.745(a), for failing to perform documented annual inspections of the company’s mainline
block valve at the La Conchita Plant for years 2003 and 2004. In its Response and during the
hearing, Pacific Operators stated that compliance was important and that it gave regular attention
to its valves. Respondent reiterated its contention that it believed it had “met the spirit of the
requirement” and characterized the non-compliance as a recordkeeping issue.
As stated above, compliance with periodic valve inspection requirements is a key part of pipeline
safety. Respondent’s own procedures required that a documented annual inspection be
performed; the company acknowledged that it failed to follow these procedures. Maintaining
complete and accurate records is itself important to safety because, in the absence of complete
records, an operator’s managers cannot perform effective oversight of personnel who perform
pipeline maintenance. Respondent has presented no information that would warrant a reduction
in the civil penalty amount proposed in the Notice for this violation.
Accordingly, having reviewed the record and considered the assessment criteria, I assess
Respondent a total civil penalty of $10,000 for violating 49 C.F.R. § 192.745(a).
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 89.21(b)(3)) require this payment be made by wire transfer, through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P.O. Box 269039, Oklahoma City, OK 73125; (405) 954-8893.
Failure to pay the $10,000 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a United
States District Court.
Under 49 C.F.R. § 190.215, Respondent has a right to submit a petition for reconsideration of
this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline
Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590. A copy of the petition should also be sent to: Assistant Chief Counsel for Pipeline



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Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590. PHMSA is willing to accept petitions received no later than 20 days after receipt of
service of this Final Order by the Respondent, provided such petitions contain a brief statement
of the issue(s) and meet all other requirements of 49 C.F.R. § 190.215. Unless the Associate
Administrator, upon request, grants a stay, the terms and conditions of this Final Order are
effective upon receipt of service.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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