{"operation":"document","citation":"CPF 520087003","title":"UNION OIL COMPANY OF CALIFORNIA (UOCC) — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2008-09-10","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.420, 195.426, 195.571, 195.581.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520087003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520087003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520087003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520087003","body":"Notice of Probable Violation involving UNION OIL COMPANY OF CALIFORNIA (UOCC). PHMSA's enforcement data identifies the cited regulations as 195.420,  195.426,  195.571,  195.581. The case was opened on 2008-09-10 and is reported as closed as of 2011-04-15. Proposed civil penalty: $29,000. Assessed civil penalty: $0. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520087003_closure letter_04152011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_closure%20letter_04152011.pdf\n\n520087003_closure letter_04152011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_closure%20letter_04152011_text.pdf\n\n520087003_FinalOrder_12132010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_FinalOrder_12132010.pdf\n\n520087003_FinalOrder_12132010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_FinalOrder_12132010_text.pdf\n\n520087003_NOPV PCO PCP_09102008.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_NOPV%20PCO%20PCP_09102008.pdf\n\n520087003_nopv pco pcp_09102008_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_nopv%20pco%20pcp_09102008_text.pdf\n\n520087003_operator_response_10142008.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520087003/520087003_operator_response_10142008.pdf\n\n520087003_nopv pco pcp_09102008_text.pdf\n\nU S. DePGrtment\nOf Tt GASPOttGtlOn\nPipsllmne and\nHmxmdous Mattsrialls Sa(sty\nAdmlniskmHon\n12300 W Dakota Ave, Suite 110\nLakewood, CO 80228\nSeptember 10, 2008\nMr. John Zager\nGeneral Manager\nUnion Oil Company of Cahfornia\n909 West 9\" Avenue\nAnchorage, AI& 99501\nCPF 5-2008-7003\nDear Mr. Zager:\nOn May 27 — 29, 2008, a representative of the Pipehne and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected the\nfollowing Union Oil Company of California (UOCC) crude oil facihties in the Cook Inlet,\nAlaska The Steelhead, Granite Point, and Dillon offshore oil platforms, the onshore facilities\nof Trading Bay Production Facility, and the Granite Point Tank farm.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipehne Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The items\ninspected and the probable violations are:\n\n\n\nUOCC did not properly inspect valve P-SDV-0002 on the Granite Point Platform\nduring 2007. The UOCC inspection did not attempt to operate or stroke the valve to\nensure it could function properly because crude oil was spraying out of the grease\ncenter pin.\nEvidence: Granite Point Valve Manitenance Records, 2 sheets\n$195. 426 Scraper and sphere facilities.\nNo operator may use a launcher or receiver that is not equipped with a rehef\ndevice capable of safely relieving pressure in the barrel before insertion or\nremoval of scrapers or spheres. The operator must use a suitable device to\nindicate that pressure has been reheved in the barrel or must provide a means to\nprevent insertion or removal of scrapers or spheres if pxessure has not been\nreheved in the barrel.\nThe Granite Point Platform crude oil pig launcher was found to be missing a pressure\nsensing device on the closure.\nEvidence: Photograph of closure on launcher\n$195. 571 What criteria must I use to determine the adequacy of cathodic\nprotections\nCathodic protection required by this subpart must comply with one or more of\nthe applicable criteria and other considerations for cathodic protection contained\nin paragraphs 6. 2 and 6. 3 of WACK Standard ~0169-96.\nDolly Varden Platform's incoming hnes were applying improper cathodic protection\n(CP) levels. The PHMSA inspector noted \"instant off\" readings, based on 2007\nClosure Interval Survey CIS) data, above 1400 mv and as high as 2200 mv These do\nnot meet NACE Standard RPO 169-96. Cathodic protection levels this high can cause\ncoating damage\nEvidence: 2007 CIS readings, 1 sheet\n4. $195. 581 Which pipelines must I protect against atmospheric corrosion and what\ncoating material may I use'7\n\n\n\nThe Granite Point and Bruce Platform pipehnes traverse the shorehne and are exposed\nat low tide UOCC has a maintenance program that attempts to stabihze and repair the\ncoating damage occurring on these lines whenever possible. However, during the field\ninspection of the pipeline right-of-way, extensive coating damage was found along\nwith a section of bare pipe. Photographs were taken, and UOCC recorded GPS\nlocations for future maintenance work.\nEvidence: Photographs of coating damage, 4 Pictures.\nPro osed Civil Penalt\nUnder 49 United States Code, ( 60122, you are subject to an administrative civil penalty not to\nexceed $100, 000 for each violation for each day the violation persists up to a maximum of\n$1, 000, 000 for any related series of violations The Comphance Officer has reviewed the\ncircumstances and supporting documentation involved in the above probable violations and\nhas recommended that you be prehminarily assessed a civil penalty of $29, 000 as follows\nItem Number PENALTY\n$29, 000\nPro osed Com hance Order\nWith respect to Items 1, 2, and 4 pursuant to 49 United States Code ( 60118, the Pipehne and\nHazardous Materials Safety Administration proposes to issue a Comphance Order to UOCC.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice\nWarnin Items\nWith respect to Item 3, we have reviewed the circumstances and supporting documents\ninvolved in this case and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time We advise you to promptly correct this item Be advised\nthat failure to do so may result in UOCC being subject to additional enforcement action\n\n\n\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 Be advised that all material you submit in response to this enforcement action is\nsubject to being made pubhcly available, If you beheve that any portion of your responsive\nmaterial qualifies for confidential treatment under 5 U S C 552(b), along with the complete\noriginal document you must provide a second copy of the document with the portions you\nbeheve quahfy for confidential treatment redacted and an explanation of why you beheve the\nredacted information quahfies for confidential treatment under 5 U. S. C 552(b) If you do not\nrespond within 30 days of receipt of this Notice, this constitutes a waiver of your right to\ncontest the allegations in this Notice and authorizes the Associate Administrator for Pipehne\nSafety to find facts as alleged in this Notice without further notice to you and to issue a Fmal\nOrder.\nIn your correspondence on this matter, please refer to CPF 5-2008-7003 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipehne and Hazardous Materials Safety Administration\ncc PHP-60 Comphance Registry\nPHP-500 B Flanders (¹120665, 120668, 120669)\nEnclosures Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n\n\n\nPursuant to 49 United States Code ) 60118, the Pipehne and Hazardous Materials Safety\nAdministration {PHMSA) proposes to issue to Union Oil Company of Cahfornia {UOCC) a\nComphance Order incorporating the following remedial requirements to ensure the comphance\nof UOCC with the pipehne safety regulations.\n3. 4. In regards to Item Number' 1 of the Notice pertaining to the lack of valve\nmaintenance, within three (3) months of receipt of the Final Order, UOCC shall\ntake appropriate action to repair the DOT-regulated valve, P-SDV-0002, so that\nit can be properly inspected per ) 195. 420\nIn regards to Bem Number 2 of the Notice pertaining to the missing pressure\nsensing device on the crude oil launcher closure on Granite Point Platforin,\nwithin three (3) months of receipt of the Final Order, UOCC shall install a\nsensing device on the launcher closure\nIn regards to Item Number 4 of the Notice pertaining to the exposed pipehnes\nand coating damage, within nme (9) months of receipt of the Final Order,\nUOCC shall provide evidence of repair of the coating damage.\nUOCC shall conduct the activities in Items 1 A 2 and submit documentation of\ncomphance within 120 days of receipt of the Final Order Documentation of-\ncompletion of Item 4 shall be submitted within 30 days of completion\n5 UOCC shall maintain documentation of the safety improvement costs\nassociated with fulfilhng this Compliance Order and submit the total to Chris\nHoidal, Director, Pipehne and Hazardous Materials Safety Administration\nCosts shall be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipehne\ninfrastructure\n\n520087003_closure letter_04152011_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 15, 2011\nMr. John Zager\nGeneral Manager\nUnion Oil Company of California\n3800 Centerpoint Drive, Suite 100\nAnchorage, AK 99503\nCPF 5-2008-7003\nDear Mr. Zager:\nOn December 13, 2010, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) issued to Union Oil Company of California a Final Order in the above-referenced\ncase. The Final Order issues by PHMSA included a Compliance Order. Based on our\nreview of the documentation you provided, it has been determined that you have complied\nwith the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDennis Hinnah\nDeputy Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 B. Flanders (#120665, 120668, 120669)\n\n520087003_FinalOrder_12132010_text.pdf\n\nDEC 13 2010\nMr. John Zager\nGeneral Manager\nUnion Oil Company of California\n3800 Centerpoint Drive, Suite 100\nAnchorage, AK 99503\nRe: CPF No. 5-2008-7003\nDear Mr. Zager:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws one of\nthe allegations of violation and the civil penalty, makes other findings of violation, and specifies\nactions that need to be taken by Union Oil Company of California to comply with the pipeline\nsafety regulations. When the terms of the compliance order have been completed, as determined\nby the Director, Western Region, this enforcement action will be closed. Service of the Final\nOrder by certified mail is deemed effective upon the date of mailing, or as otherwise provided\nunder 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\nMr. Dale A. Haines\nManager, Oil & Gas Operations\nUnion Oil Company of California\nP.O. Box 196247\nAnchorage, AK 99519-6247\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0041 0831]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nUnion Oil Company of California, ) CPF No. 5-2008-7003\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May 27-29, 2008, 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 of Union Oil Company of\nCalifornia (Union or Respondent) in the Cook Inlet area of Alaska.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated September 10, 2008, 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 Union committed violations of 49 C.F.R. Part 195, proposed\nassessing a civil penalty of $29,000 for the alleged violations, and proposed ordering Respondent\nto take certain measures to correct the alleged violations. The Notice also proposed finding that\nRespondent had committed another probable violation of 49 C.F.R. Part 195 and warning\nRespondent to take appropriate corrective action or be subject to future enforcement action.\nUnion responded to the Notice by letter dated October 14, 2008 (Response). The company\ncontested two of the allegations, offered additional information in response to the Notice, and\nrequested that the proposed civil penalty be eliminated. Respondent did not request a hearing\nand therefore has waived its right to one.\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195 as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.420, which states in\nrelevant part:\n§ 195.420 – Valve maintenance.\n(a) Each operator shall maintain each valve that is necessary for the\nsafe operation of its pipeline systems in good working order at all times.\n\n\n\n2\n(b) Each operator shall, at intervals not exceeding 7 ½ 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 by failing to inspect each\nmainline valve at intervals not exceeding 7 ½ months, but at least twice each calendar year.\nSpecifically, the Notice alleged that Union failed to operate or stroke a specific valve on the\nGranite Point Platform during 2007.\nIn its Response, Union contested this allegation of violation and provided information\ndemonstrating that the valve was stroked during 2007 in accordance with the requirements of\n§ 195.420. Accordingly, based upon a review of all of the evidence, I find that Respondent did\nnot violate 49 C.F.R. § 195.420 as alleged in this item. Based upon the foregoing, I hereby order\nthat Item 1 be withdrawn.\nPlease be advised that operators must provide PHMSA inspectors with required records at the\ntime of inspection, and failure to do so could be a violation of § 195.404(c)(3) that could result in\na separate allegation of violation and appropriate sanction.1\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.426, which states:\n§ 195.426 – Scraper and sphere facilities.\nNo operator may use a launcher or receiver that is not equipped with a\nrelief device capable of safely relieving pressure in the barrel before\ninsertion or removal of scrapers or spheres. The operator must use a\nsuitable device to indicate that pressure has been relieved in the barrel or\nmust provide a means to prevent insertion or removal of scrapers or\nspheres if pressure has not been relieved in the barrel.\nThe Notice alleged that Respondent violated § 195.426 by failing to: 1) use a suitable device to\nindicate that pressure has been relieved in the barrel, or 2) provide a means to prevent insertion\nor removal of scrapers or spheres if pressure has not been relieved in the barrel. Specifically, the\nNotice alleged that the crude oil pig launcher at Granite Point Platform did not have a closure.\nIn its Response, Union contested the allegation. It acknowledged that the launcher at issue did\nnot have a door equipped with a pressure warning device to prevent the door from opening when\npressurized. However, it argued that the launcher satisfied the requirements of the regulation\nbecause it had a pressure warning device and relief device capable of relieving the pressure\nbefore opening the door. While such devices do meet the first requirement of the provision, they\ndo not meet the requirement contained in the second sentence of the provision, because they do\nnot “indicate that pressure has been relieved in the barrel” or “prevent insertion or removal of\nscrapers or spheres if pressure has not been relieved in the barrel.” Thus, the launcher does not\nfully satisfy the requirements of § 195.426.\n1 See § 190.203(a).\n\n\n\n3\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.426 by failing to use a suitable device to indicate that pressure has been relieved in the\nbarrel or provide a means to prevent insertion or removal of scrapers or spheres if pressure has\nnot been relieved in the barrel.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.581, which states in\nrelevant part:\n§ 195.581 – Which pipelines must I protect against atmospheric\ncorrosion and what coating material may I use?\n(a) You must clean and coat each pipeline or portion of pipeline that is\nexposed to the atmosphere, except pipelines under paragraph (c) of this\nsection.\n(b) Coating material must be suitable for the prevention of\natmospheric corrosion.\nThe Notice alleged that Respondent violated § 195.581 by failing to maintain adequate coating\non portions of its pipeline that are exposed to the atmosphere. Specifically, the Notice alleged\nthat pipelines at Granite Point and Bruce Point are exposed to the atmosphere at low tide, and\nthat during the inspection, OPS identified sections of these pipelines that were bare or on which\nthe coating was extensively damaged. Respondent did not contest this allegation of violation.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated 49\nC.F.R. § 195.581 by failing to maintain adequate coating on portions of its pipeline that are\nexposed to the atmosphere.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nWITHDRAWAL OF PENALTY\nThe Notice proposed a civil penalty of $29,000 for the alleged violation described in Item 1.\nBecause I ordered that Item 1 be withdrawn, the proposed civil penalty is also withdrawn.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, and 4 in the Notice for\nviolations of 49 C.F.R. §§ 195.420, 195.426, and 195.581, respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of hazardous liquids or who owns or\noperates a pipeline facility is required to comply with the applicable safety standards established\nunder chapter 601.\nBecause I ordered that Item 1 be withdrawn, the corresponding compliance terms proposed in the\nNotice are not included in this Order.\n\n\n\n4\nThe Director indicates that Respondent has taken the following actions specified in the proposed\ncompliance order:\n1. With respect to the violation of § 195.581 (Item 4), Respondent has repaired the\ncoating damage in the relevant locations.\nAccordingly, I find that compliance has been achieved with respect to this violation.\nPursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is\nordered to take the following actions to ensure compliance with the pipeline safety regulations\napplicable to its operations:\n1. With respect to the violation of § 195.426 (Item 2), Respondent must, within 120\ndays of receipt of this Order, install a sensing device on the launcher closure on\nGranite Point Platform and submit documentation to this effect to the Director.\n2. Respondent must maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit that total to the\nDirector. Costs shall be reported in two categories: (1) total cost associated with\npreparation and revision of plans, procedures, studies, and analyses, and (2) total\ncost associated with replacements, additions, and other changes to pipeline\ninfrastructure.\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.\nWARNING ITEM\nWith respect to Item 3, the Notice alleged a probable violation of Part 195 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be a warning\nitem. The warning was for:\n49 C.F.R. § 195.571 (Item 3) ─ Respondent’s alleged failure to maintain\nadequate cathodic protection on lines at Dolly Varden Platform.\nUnion presented information in its Response showing that it had taken certain actions to address\nthe cited items. Accordingly, having considered such information, I find, pursuant to 49 C.F.R.\n§ 190.205, that a probable violation of 49 C.F.R. § 195.571 (Notice Item 3) has occurred, and\nRespondent is hereby advised to correct such condition. In the event that OPS finds a violation of\nthis provision in a subsequent inspection, Respondent may be subject to future enforcement\naction.\n\n\n\n5\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, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of this Final Order by the\nRespondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. Unless the Associate Administrator, upon request, grants a\nstay, the terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":21968}