# PLAINS PIPELINE, L.P. — Corrective Action Order

- **operation:** document
- **citation:** CPF 520155011H
- **title:** PLAINS PIPELINE, L.P. — Corrective Action Order
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2015-05-21
- **effective on:** Not available
- **summary:** CLOSED corrective action order.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-520155011h.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520155011h.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520155011h
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520155011H
**body:**

Corrective Action Order involving PLAINS PIPELINE, L.P.. The dataset does not identify a cited regulation for this case. The case was opened on 2015-05-21 and is reported as closed as of 2020-10-29. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

2-20-CV-02415_SANFRAN 195552 v1 Refugio Complaint ECF 01_03132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/2-20-CV-02415_SANFRAN%20195552%20v1%20Refugio%20Complaint%20ECF%2001_03132020.pdf

2-20-CV-02415_SANFRAN 195558 v1 Refugio-Consent Decree attached to Notice of Lodging ECF 6-1_03132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/2-20-CV-02415_SANFRAN%20195558%20v1%20Refugio-Consent%20Decree%20attached%20to%20Notice%20of%20Lodging%20ECF%206-1_03132020.pdf

2-20-CV-02415_US District Court Central Dist of California Consent Decree_03132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/2-20-CV-02415_US%20District%20Court%20Central%20Dist%20of%20California%20Consent%20Decree_03132020.pdf

520155011H_Amended Corrective Action Order_06032015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Amended%20Corrective%20Action%20Order_06032015.pdf

520155011H_Amended Corrective Action Order_06032015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Amended%20Corrective%20Action%20Order_06032015_text.pdf

520155011H_Amendment No 2 Corrective Action Order_11122015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Amendment%20No%202%20Corrective%20Action%20Order_11122015.pdf

520155011H_Amendment No 2 Corrective Action Order_11122015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Amendment%20No%202%20Corrective%20Action%20Order_11122015_text.pdf

520155011H_Amendment No 3 to the Corrective Action Order_061620116.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Amendment%20No%203%20to%20the%20Corrective%20Action%20Order_061620116.pdf

520155011H_Amendment No 3 to the Corrective Action Order_061620116_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Amendment%20No%203%20to%20the%20Corrective%20Action%20Order_061620116_text.pdf

520155011H_Closure Letter_10292020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Closure%20Letter_10292020.pdf

520155011H_Closure Letter_10292020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Closure%20Letter_10292020_text.pdf

520155011H_Corrective Action Order_05212015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Corrective%20Action%20Order_05212015.pdf

520155011H_Corrective Action Order_05212015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155011H/520155011H_Corrective%20Action%20Order_05212015_text.pdf

520155011H_Amendment No 2 Corrective Action Order_11122015_text.pdf

November 12, 2015
VIA CERTIFIED MAIL AND FAX TO: 713-646-4378
Mr. Troy Valenzuela
Vice President EHS
Plains Pipeline, LP
333 Clay Street, Suite 1600
Houston, TX 77002
Re: CPF No. 5-2015-5011H
Dear Mr. Valenzuela:
Enclosed is Amendment No. 2 to the Corrective Action Order issued in the above-referenced
case on May 21, 2015. It requires Plains Pipeline, LP, to take additional corrective actions with
respect to Line 903 of its pipeline system. Service is being made by certified mail and facsimile.
Service of the Amendment to the Corrective Action Order by electronic transmission is deemed
complete upon transmission and acknowledgement of receipt, or as otherwise provided under 49
C.F.R. § 190.5. The terms and conditions of this Order are effective upon completion of service.
Thank you for your continued cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, OPS
Director, Western Region, OPS



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Plains Pipeline, LP, ) CPF No. 5-2015-5011H
)
)
)
Respondent. )
____________________________________)
AMENDMENT NO. 2 TO THE CORRECTIVE ACTION ORDER
Purpose and Background:
On May 21, 2015, the Associate Administrator issued a Corrective Action Order (CAO) under
the authority of 49 U.S.C. Section 60112 to require Plains Pipeline, L.P. (Plains or Respondent),
to take certain corrective actions to protect the public, property, and the environment from
potential hazards associated with Line 901 (Affected Pipeline) in Santa Barbara County,
California. The CAO was issued in response to a May 19, 2015 failure on the Affected Pipeline
that caused a release of approximately 2500 barrels of heavy crude oil (Failure). On June 3,
2015, the Associate Administrator issued Amendment No. 1 to the CAO, which requires Plains
to take certain additional corrective actions on Line 901 and Line 903. Pursuant to 49 U.S.C.
§ 60117, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of
Pipeline Safety (OPS), initiated an investigation of the accident.
Additional Findings:
• Line 903 is a 30-inch diameter pipeline approximately 129.5 miles in length and is
composed of three segments: Gaviota Station to Sisquoc Station (38.5 miles long);
Sisquoc Pump Station to Pentland Station (76.1 miles long); and Pentland Station to
Emidio Station (14.9 miles long). Line 903 crosses Santa Barbara County, San Luis
Obispo County, and Kern County, California. Amendment No. 1 requires that the
operating pressure of Line 903 not exceed eighty percent (80%) of the highest pressure
sustained for a continuous 8-hour period between April 19, 2015, and May 19, 2015. The
Pentland to Emidio segment is currently operating intermittently at low pressures in
accordance with requirements of Amendment No. 1. The remaining portions of Line 903
are currently idled but are still full of crude oil.



CPF No. 5-2015-5011H
Page 2
• PHMSA’s independent review of in-line inspection (ILI) tool surveys for Line 901 and
903 over the past 10 years found that anomalies were “under-called” in areas of general
corrosion. Direct field examination and measurements of the anomalies revealed that the
actual length and width of the anomalies were greater than the measurements predicted
by the ILI tool. Specifically, on Line 901, direct measurement of the metal loss anomaly
at the failure site and other anomalies excavated in 2015 showed that these anomalies
were generally more significant than the ILI results indicated they would be.
• Common practice in the pipeline industry is to provide the ILI vendor with field data
from direct investigation of anomalies to validate the ILI tool’s detection capabilities and
limitations, the accuracy with which it can locate and size anomalies, and the confidence
associated with the tool’s measurements. After excavating, investigating, characterizing,
and measuring anomalies from the results of various ILI surveys, Plains did not share its
actual field findings with the ILI vendor so that it could enhance its interpretation of the
ILI data.
• PHMSA’s independent review of ILI surveys from the past 10 years show that Line 903,
particularly the Gaviota to Sisquoc segment, has similar corrosion characteristics as Line
901 and a number of the anomalies had characteristics consistent with the failure site.
Specifically, Line 903 has both localized and larger or “general” areas of external
corrosion.
• Freeport-McMoRan Oil & Gas (Freeport) operates a 37-mile pipeline system from its
Hidalgo, Hermosa and Harvest offshore platforms in the Point Arguello Offshore Field
that feeds into Plains’ Line 903 at Gaviota Station. Freeport shut down this pipeline
system on May 30, 2015, because Line 903 had ceased operation on May 28, 2015.
• Line 903 between Gaviota and Pentland Station is currently filled with raw, unprocessed
crude oil from Freeport’s offshore platforms. This unprocessed crude may contain water,
natural gas, and other impurities that contribute to internal corrosion. According to
Freeport, the biocide and rust inhibitor in this crude oil will begin to lose effectiveness
around November 2015, adding to the risk of accelerated internal corrosion on Line 903.
• Due to the number of corrosion-caused anomalies identified on Line 903 in past ILI
surveys, particularly on the Gaviota to Sisquoc segment, it does not appear that Plains has
an effective corrosion control program and the pipe can be expected to have degraded
(lost metal due to corrosion) since the last ILI survey. Furthermore, leaving crude oil in
Line 903 is likely to result in an increased potential for internal corrosion as the inhibitor
loses its effectiveness. The crude oil in Line 903 needs to be removed from the pipeline
and the line purged with an inert gas in order to prevent further degradation of the
pipeline, and eliminate the potential harm it poses from an unintended release.
• Stress corrosion cracking (SCC) or environmentally-assisted cracking can be induced on
a pipeline from the combined influence of tensile stress and a corrosive medium. As
noted in PHMSA’s Advisory Bulletin ADB-03-05 (issued October 7, 2003), SCC is



CPF No. 5-2015-5011H
Page 3
commonly associated with disbonded coatings. Disbonded coatings may prevent the
cathodic protection current used for corrosion control from reaching the pipe surface and
allow an SCC-susceptible environment to form between the pipe and coating. Tape
coatings and shrink wrap sleeves are both coatings susceptible to disbondment and may
lead to corrosion and possibly environmentally assisted cracking or SCC. Line 903 has
shrink wrap sleeves on the girth welds, which could contribute to SCC.
Determination of Necessity for Amendment to the Corrective Action Order and Right to
Hearing:
Section 60112 of Title 49, United States Code, provides for the issuance of a Corrective Action
Order, after reasonable notice and the opportunity for a hearing, requiring corrective action,
which may include the suspended or restricted use of a pipeline facility, physical inspection,
testing, repair, replacement, or other action, as appropriate. The basis for making the
determination that a pipeline facility is or would be hazardous, requiring corrective action, is set
forth both in the above-referenced statute and 49 C.F.R. § 190.233, a copy of which is enclosed.
Section 60112 and the regulations promulgated thereunder provide for the issuance of a
Corrective Action Order, without prior notice and opportunity for hearing, upon a finding that
failure to issue the Order expeditiously would result in the likelihood of serious harm to life,
property, or the environment. In such cases, an opportunity for a hearing and expedited review
will be provided as soon as practicable after the issuance of the Order.
After evaluating the preliminary findings in the CAO and Amendment No. 1 and the foregoing
additional preliminary findings of fact, I find that continued operation of Line 901 and Line 903
without corrective measures is or would be hazardous to life, property, or the environment.
Additionally, having considered the uncertainties as to the cause of the Failure, the location of
the Failure, the similarities between the characteristics of the Affected Pipeline and Line 903, the
material being transported, and the proximity of the pipelines to the Pacific Ocean and
environmentally sensitive areas, I find that a failure to issue this Order expeditiously to require
immediate corrective action would result in the likelihood of serious harm to life, property, or the
environment.
Accordingly, this Amendment to the Corrective Action Order mandating immediate corrective
action is issued without prior notice and opportunity for a hearing. The terms and conditions of
this Order are effective upon receipt.
The actions required by this Amendment No. 2 to the Corrective Action Order are in
addition to the requirements that apply to Respondent’s Affected Pipeline under the CAO
issued on May 21, 2015, and Amendment No. 1 issued on June 3, 2015.
Within 10 days of receipt of this Amendment, Respondent may contest its issuance and obtain
expedited review either by answering in writing or requesting a hearing under 49 C.F.R.
§ 190.211, to be held as soon as practicable under the terms of such regulation, by notifying the
Associate Administrator for Pipeline Safety in writing, with a copy to the Director, Western



CPF No. 5-2015-5011H
Page 4
Region, OPS (Director). If Respondent requests a hearing, it will be held telephonically or in-
person in Lakewood, Colorado, or Washington, D.C.
After receiving and analyzing additional data in the course of this investigation, PHMSA may
identify other corrective measures that need to be taken on the Affected Pipeline or Plains’ Line
903. In that event, PHMSA will notify Respondent of any additional measures that are required
and another Amendment Order will be issued, if necessary. To the extent consistent with safety,
Respondent will be afforded notice and an opportunity for a hearing prior to the imposition of
any additional corrective measures.
Required Corrective Actions:
Pursuant to 49 U.S.C. § 60112, I hereby order Plains to immediately take the following
corrective actions with respect to Line 903:
1. Empty and Purge Line 903: Plains must empty and purge Line 903 between Gaviota and
Pentland Stations and fill it with an inert gas.
a. Plains must submit a purge plan to the Director for review and approval within 15
days after receipt of this Order and prior to initiating purge activities.
b. The purge plan must include the following:
i. Identification and remediation of any anomalies with characteristics similar to
the Line 901 failure location. During the investigation of each anomaly
location, Plains must collect all appropriate data regarding the anomaly depth,
length, width, and physical characteristics, including sampling of any
corrosion by-products of any anomaly excavated.
Plains must provide the vendor who performed previous ILI tool runs and
analysis from 2012 to the present with the field measured data and request that
the ILI vendor use the field data to re-evaluate the ILI results in order to
identify any additional anomalies that must be remediated per § 195.452(h) or
that have characteristics similar to the Line 901 failure location. Plains must
provide a list of additional identified anomalies to the Director prior to
commencing the purge.
A step-by-step plan of how the purge will be executed, including operating
pressures and implementation schedule.
A list of enhanced preventive and mitigative measures that Plains will
implement to monitor the pipeline during the purge activity, including, but not
limited to, increased patrols of the pipeline right-of-way with attention to
nearby drainages, culverts, and highly populated areas, pressure monitoring,
and emergency response personnel’s ability to respond in a reasonable
timeframe.
Purging operations must commence during early daylight hours.
Training of personnel on the local operation of Line 903 during the purge,
including coordination of the Midland Control Room and training of
personnel on emergency response procedures.
ii. iii. iv. v. vi.



CPF No. 5-2015-5011H
Page 5
c. Plains must notify the Director and local and state responders 5 business days prior to
commencing the purging operations.
2. Shutdown: After purging Line 903, Plains must not operate Line 903 between Gaviota and
Pentland stations until authorized to do so by the Director. The Pentland to Emidio segment
of Line 903 may continue to operate under the 80% pressure restriction requirement of
Amendment No. 1.
3. Plains must provide the Director with 5 business days’ notice prior to commencing any
investigation and remediation of anomalies (i.e., digs and repairs) and ILI tool runs.
4. Plains must use a third-party American Society of Non-Destructive Testing (ASNT) Level III
certified contractor to complete a non-destructive testing analysis at the specific location of
each ILI feature or anomaly that requires investigation and remediation under the
requirements of the CAO, Amendment No. 1, and this Amendment No. 2. If the ILI feature
or anomaly is at a girth weld with shrink sleeves, the contractor must perform a magnetic
particle inspection of the weld area or use other appropriate technology to check for stress
corrosion cracking (SCC).
5. The Corrective Action Order Documentation Report required by Item 12 of the CAO must
include a summary of all inspections, assessments, evaluations, and analysis required by this
Amendment No. 2 to the CAO.
The actions required by this Amendment No. 2 to the Corrective Action Order are in addition to
and do not waive any requirements that apply to Respondent’s pipeline system under the CAO,
49 C.F.R. Part 195, under any other order issued to Respondent under authority of 49 U.S.C.
§ 60101, et seq., or under any other provision of Federal or State law.
Respondent may appeal any decision of the Director to the Associate Administrator for Pipeline
Safety. Decisions of the Associate Administrator shall be final.
Be advised that all material you submit in response to this enforcement action is subject to being
made publicly available. If you believe that any portion of your responsive material qualifies for
confidential treatment under 5 U.S.C. 552(b), along with the complete original document you
must provide a second copy of the document with the portions you believe qualify for
confidential treatment redacted and an explanation of why you believe the redacted information
qualifies for confidential treatment under 5 U.S.C. 552(b).
Failure to comply with this Order may result in the assessment of civil penalties and in referral to
the Attorney General for appropriate relief in United States District Court pursuant to 49 U.S.C.
§ 60120.
In your correspondence on this matter, please refer to CPF No. 5-2015-5011H and for each
document you submit, please provide a copy in electronic format whenever possible.



CPF No. 5-2015-5011H
Page 6
The terms and conditions of this Amendment No. 2 to the Corrective Action Order are effective
upon receipt.
__________________________________ __________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety

520155011H_Closure Letter_10292020_text.pdf

VIA E-MAIL TO MR. PATRICK HODGINS
October 29, 2020
Mr. Patrick D. Hodgins
VP Health, Safety & Environmental
Plains All American
333 Clay Street
Suite 1600
Houston Texas 77002
RE: CPF 5-2015-5011H and its amendments
Closure Letter
Dear Mr. Hodgins:
On May 21, 2015, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Plains
Pipeline, LP a Corrective Action Order (CAO), and three subsequent amendments, in the above-
referenced case. This Order included a requirement to take corrective actions on your pipeline. On
October 14, 2020, the United States District Court for the Central District of California entered an Order
to Enter Consent Decree in the case of United States of America et al. v. Plains All American Pipeline,
L.P. et al. Upon entry, the Consent Decree (CD) closed the CAO and its amendments. Para. 25 of CD.
Appendix D of the CD transferred all outstanding corrective actions in PHMSA’s closed CAO, and
amendments, to the sole regulatory oversight of the California Department of Forestry and Fire
Protection’s - Office of the State Fire Marshal.
Accordingly, this case is now closed with PHMSA. Thank you for your cooperation in this matter.
Sincerely,
Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
James Hosler (james.hosler@fire.ca.gov), Assistant Deputy Director, Pipeline Safety Division,
Office of the State Fire Marshal

2-20-CV-02415_SANFRAN 195558 v1 Refugio-Consent Decree attached to Notice of Lodging ECF 6-1_03132020.pdf

Case 2:20-cv-02415 Document 6-1 Filed 03/13/20 Page 1 of 102 Page ID #:94
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Senior Attorney
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Trial Attorney
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Tel: (202) 514-1707
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Assistant Attorney General
Environment and Natural Resources Division
United States Department of Justice
Washington, D.C. 20530
BRADLEY R. O’BRIEN (CA Bar Number: 189425)
ANGELA MO (CA Bar Number: 262113)
Environmental Enforcement Section
United States Department of Justice
301 Howard Street, Suite 1050
San Francisco, California 94105
Tel: (415) 744-6484;
E-mail: brad.obrien@usdoj.gov
E-mail: angela.mo@usdoj.gov
Counsel for Plaintiff United States of America
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
UNITED STATES OF AMERICA, and the PEOPLE
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OF THE STATE OF CALIFORNIA, ex rel.
DEPARTMENT OF FISH AND WILDLIFE,
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PEOPLE OF THE STATE OF CALIFORNIA, ex rel.
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CENTRAL COAST REGIONAL WATER QUALITY
CONTROL BOARD, ex rel. CALIFORNIA
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DEPARTMENT OF PARKS AND RECREATION, ex
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rel. CALIFORNIA STATE LANDS COMMISSION,
ex rel. CALIFORNIA DEPARTMENT OF
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FORESTRY AND FIRE PROTECTION’S OFFICE
OF STATE FIRE MARSHAL, and THE REGENTS
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OF THE UNIVERSITY OF CALIFORNIA,
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Plaintiffs,
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PLAINS ALL AMERICAN PIPELINE, L.P. and
PLAINS PIPELINE, L.P.,
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Defendants.
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Civil Action No.
2:20-cv-02415
CONSENT DECREE
v.
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree



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Case 2:20-cv-02415 Document 6-1 Filed 03/13/20 Page 2 of 102 Page ID #:95
XAVIER BECERRA
Attorney General of California
ERIC M. KATZ
Supervising Deputy Attorney General
MICHAEL ZARRO (CA Bar Number: 110171)
JESSICA BARCLAY-STROBEL (CA Bar Number: 280361)
Deputy Attorneys General
300 South Spring Street, Suite 1702
Los Angeles, California 90013
Tel: (213) 269-6635
E-mail: Jessica.BarclayStrobel@doj.ca.gov
Counsel for Plaintiffs California Department of Fish and Wildlife, Central Coast
Regional Water Quality Control Board, and California Department of Forestry
and Fire Protection’s Office of State Fire Marshal
XAVIER BECERRA
Attorney General of California
CHRISTINA BULL ARNDT
Supervising Deputy Attorney General
NICOLE RINKE (CA Bar Number: 257510)
MITCHELL E. RISHE (CA Bar Number: 193503)
Deputy Attorney General
300 South Spring Street, Suite 1702
Los Angeles, California 90013
Tel: (213) 269-6394
E-mail: Mitchell.Rishe@doj.ca.gov
Counsel for Plaintiffs California Department of Parks and Recreation and
California State Lands Commission
MARGARET WU (CA Bar Number: 116588)
Deputy General Counsel
BARTON LOUNSBURY (CA Bar Number: 253895)
Senior Counsel
University of California
Office of the General Counsel
1111 Franklin Street, 8th Floor
Oakland, California 94607-5200
Tel: (510) 987-9800
E-mail: barton.lounsbury@ucop.edu
Counsel for Plaintiff The Regents of the University of California
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree



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Case 2:20-cv-02415 Document 6-1 Filed 03/13/20 Page 3 of 102 Page ID #:96
TABLE OF CONTENTS
I. BACKGROUND ................................................................................... - 5 -
II. JURISDICTION AND VENUE ............................................................ - 6 -
III. APPLICABILITY ................................................................................. - 7 -
IV. DEFINITIONS ...................................................................................... - 7 -
V. CIVIL PENALTIES ............................................................................ - 13 -
VI. NATURAL RESOURCE DAMAGES ............................................... - 17 -
VII. TRUSTEES’ MANAGEMENT AND APPLICABILITY
OF JOINT NRD FUNDS ............................................................... - 21 -
VIII. TRUSTEES’ MANAGEMENT OF RECREATIONAL
USE FUNDS .................................................................................. - 22 -
IX. INJUNCTIVE RELIEF ....................................................................... - 23 -
X. CORRECTIVE ACTION ORDER ..................................................... - 27 -
XI. STIPULATED PENALTIES .............................................................. - 27 -
XII. FORCE MAJEURE ............................................................................. - 35 -
XIII. DISPUTE RESOLUTION .................................................................. - 37 -
XIV. REPORTING ....................................................................................... - 39 -
XV. CERTIFICATION ............................................................................... - 40 -
XVI. INFORMATION COLLECTION AND RETENTION ...................... - 40 -
XVII. EFFECT OF SETTLEMENT/RESERVATION OF RIGHTS ........... - 43 -
XVIII. TRANSFER AND ACQUISITION OF ASSETS .............................. - 49 -
XIX. COSTS ................................................................................................. - 50 -
XX. NOTICES ............................................................................................ - 51 -
XXI. EFFECTIVE DATE ............................................................................ - 54 -
XXII. RETENTION OF JURISDICTION .................................................... - 54 -
XXIII. MODIFICATION ................................................................................ - 54 -
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
- i -



Case 2:20-cv-02415 Document 6-1 Filed 03/13/20 Page 4 of 102 Page ID #:97
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XXIV. TERMINATION ................................................................................. - 55 -
XXV. PUBLIC PARTICIPATION ................................................................ - 56 -
XXVI. SIGNATORIES/SERVICE ................................................................. - 56 -
XXVII. INTEGRATION .................................................................................. - 57 -
XXVIII. FINAL JUDGMENT ........................................................................... - 57 -
XXIX. 26 U.S.C. SECTION 162(f)(2)(A)(ii) IDENTIFICATION ................ - 57 -
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
- ii -



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Case 2:20-cv-02415 Document 6-1 Filed 03/13/20 Page 5 of 102 Page ID #:98
A. WHEREAS, on or about May 19, 2015, a hazardous liquid pipeline
known as the Line 901 pipeline (“Line 901”) owned and operated by Plains
Pipeline, L.P., a wholly owned subsidiary of Plains All American Pipeline, L.P.,
(jointly, “Plains” or “Defendants”), failed and discharged approximately 2,934
barrels of heavy crude-oil (“Refugio Incident”) in Santa Barbara County,
California. A portion of the oil reached the Pacific Ocean and coastal areas such
as Refugio State Beach. The Refugio Incident adversely impacted Natural
Resources belonging to, managed by, held in trust by, appertaining to, or
otherwise controlled by the United States and the State of California
(“California” or the “State”).
B. WHEREAS, cleanup actions began immediately after the Refugio
Incident at the direction of a Unified Command established by the United States
Coast Guard (“USCG”) and the State of California Department of Fish and
Wildlife (“CDFW”), Office of Spill Prevention and Response (“OSPR”). The
Unified Command was comprised of the United States, State agencies, the
County of Santa Barbara, and Plains.
C. WHEREAS, on May 21, 2015, the United States Department of
Transportation’s Pipeline and Hazardous Materials Safety Administration
(“PHMSA”) issued Plains a Corrective Action Order (“Original CAO”), CPF No.
5-2015-5011H, which was subsequently amended on June 3, 2015 (“CAO
Amendment No. 1”), November 12, 2015 (“CAO Amendment No. 2”), and June
16, 2016 (“CAO Amendment No. 3”), (collectively, “the PHMSA CAO”). The
PHMSA CAO directed Plains, among other things, to purge Line 901 and a
portion of the adjoining Line 903 pipeline (“Line 903”), between Plains’ Gaviota
and Pentland pump stations, and to keep Line 901 and the purged sections of
Line 903 shut down until the actions required by the PHMSA CAO were
satisfactorily completed.
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
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D. WHEREAS, on May 19, 2016, PHMSA issued a Failure
Investigation Report, which included PHMSA’s findings of the “proximate or
direct” causes and the “contributing” causes of the Refugio Incident.
E. WHEREAS, Defendants reimbursed Plaintiffs’ costs incurred for
cleanup, and Plaintiffs have no known unreimbursed claims for cleanup costs
arising from the Refugio Incident.
F. WHEREAS, CDFW incurred certain additional costs arising from
the administration and civil enforcement of pollution laws, including attorneys’
fees that have been reimbursed by Plains.
G. WHEREAS, Plains represents that it has implemented and will
continue to utilize an electronic tracking tool and software for maintenance
activities, including those activities related to mainline valves. The software
tracks which maintenance activities are performed, who performs the activity,
when prior notifications of maintenance activities by field personnel are received,
when problems requiring maintenance are first discovered, and when
maintenance problems are corrected. Plains maintains a separate software
program to track the training and qualifications of all maintenance personnel.
H. WHEREAS, Plains represents that, following the Refugio Incident
and pursuant to PHMSA’s CAO, Plains performed a comprehensive review of its
Emergency Response Plan and Training Program, and revised and updated its
Response Plan for Onshore Oil Pipelines for Line 901 and Line 903 (“Bakersfield
District Response Zone Plan”) to reflect modifications resulting from the review
and the incorporation of lessons learned. As part of the revision, Plains identified
the locations of culverts along the pipelines’ rights-of-way and provided
containment and recovery techniques for responding to spills that may occur near
those culverts. Plains provided drafts of the updated Bakersfield District
Response Zone Plan to PHMSA, incorporated comments provided by PHMSA,
and received approval of the revised plan from PHMSA on September 26, 2017.
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
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I. WHEREAS, Plains represents that it also created a more detailed
Geographic Information System (“GIS”) based online Tactical Response Plan for
its onshore oil pipelines in Southern California, including Line 2000 and the
operational portion of Line 903, that, among other things, identifies culverts
along the pipelines’ rights-of-way, potential receptors and the equipment,
supplies and resources that would be necessary to respond to a spill occurring at
any given location along those pipelines, identifies the sources and locations for
obtaining those resources, and, in some instances, establishes stored inventories
of those resources in specific locations. Plains represents that it intends to keep
its Tactical Response Plan updated and available for use in drills and spill
response, and that it will make the Tactical Response Plan available to the
Plaintiffs upon reasonable request and as needed in connection with a drill or
response to a spill.
J. WHEREAS, Plains represents that Plains personnel responding to
incidents that trigger the standup of an incident command structure (“ICS”) have
been provided ICS training appropriate to their responsibilities.
K. WHEREAS, the relevant Natural Resources trustees (“Trustees”) for
the Refugio Incident are the United States Department of the Interior (“DOI”);
United States Department of Commerce, on behalf of the National Oceanic and
Atmospheric Administration (“NOAA”); CDFW; California Department of Parks
and Recreation (“CDPR”); California State Lands Commission (“CSLC”); and
The Regents of the University of California (“UC”).
L. WHEREAS, pursuant to Section 1006 of the Oil Pollution Act
(‘‘OPA’’), 33 U.S.C. 2701, et seq., the United States and the State Trustees
allege that oil from the Refugio Incident caused injuries to Natural Resources,
including birds, marine mammals, shoreline and subtidal habitats, and also had
an impact upon human uses of Natural Resources and other public resources.
The Federal Trustees are designated pursuant to the National Contingency Plan,
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
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Case 2:20-cv-02415 Document 6-1 Filed 03/13/20 Page 8 of 102 Page ID #:101
40 C.F.R. § 300.600 and Executive Order 12777. CDFW and CDPR are
designated state trustees pursuant to the National Contingency Plan, 40 C.F.R.
§ 300.605, and the Governor’s Designation of State Natural Resource Trustees
pursuant to Section 1006(b)(3) of OPA and the Comprehensive Environmental
Response, Compensation and Liability Act of 1980. In addition, CDFW has state
natural resource trustee authority pursuant to California Fish and Game Code
§§ 711.7 and 1802 and the Lempert-Keene-Seastrand Oil Spill Prevention and
Response Act (California Government Code § 8670.1 et seq.). CDPR and UC
have jurisdiction over natural resources within the state park system and the UC
Natural Reserve System, respectively, which are held in trust for the people of
the State of California. CSLC is a state trustee pursuant to its jurisdiction under
Public Resources Code § 6301 and Civil Code § 670.
M. WHEREAS, after the Refugio Incident, the Trustees and Defendants
entered into a cooperative Natural Resource Damage Assessment process
pursuant to 15 C.F.R. § 990.14, whereby the Trustees and Defendants jointly and
independently planned and conducted a number of injury assessment activities.
These activities included gathering and analyzing data and other information that
the Trustees used to determine and quantify resource injuries and damages. As a
result of this process and other activities, the Trustees identified several
categories of injured and damaged Natural Resources, including birds, marine
mammals, and shoreline and subtidal habitats, as well as effects to human
use/recreation resulting from impacts on these Natural Resources, and determined
the cost to restore, rehabilitate, replace, or acquire the equivalent of injured
Natural Resources. By entering this Consent Decree, Defendants do not admit or
agree that the Trustees’ NRD findings and determinations are accurate.
N. WHEREAS, due to the specific facts surrounding the Refugio
Incident, including the timing, degree, and nature of the spill and the affected
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
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environment, the Trustees will not seek additional damages, costs, or expenses
for Natural Resources resulting from the Refugio Incident.
O. WHEREAS, Plains agrees to reimburse costs incurred by the
Trustees in connection with the NRDA through November 15, 2018, and will not
reimburse costs incurred by the Trustees in connection with the NRDA after that
date.
P. WHEREAS, by entering into this Consent Decree, Plains does not
admit the allegations in the Complaint filed in this action, or any liability to the
Plaintiffs.
Q. WHEREAS, on January 28, 2019, PHMSA initiated a regularly-
scheduled “Integrated Inspection” of a portion of Defendants’ Regulated
Pipelines, as described below, and other pipeline facilities and records, pursuant
to 49 U.S.C. § 60117.
R. WHEREAS, the Parties agree that settlement of this matter without
further litigation is in the public interest and that the entry of this Consent Decree
is the most appropriate means of resolving this action.
S. WHEREAS, the Parties agree and the Court by entering this Consent
Decree finds, that this Consent Decree: (1) has been negotiated by the Parties at
arm’s-length and in good faith; (2) will avoid prolonged litigation between the
Parties; (3) is fair and reasonable; and (4) furthers the objectives of the federal
and state environmental protections, and the federal and state pipeline safety
laws.
I. BACKGROUND
The United States, on behalf of PHMSA, the United States Environmental
Protection Agency (“EPA”), DOI, NOAA, and USCG; and the People of the
State of California Ex Relatione CDFW, CDPR, CSLC, UC, the California
Central Coast Regional Water Quality Control Board (“RWQCB”), and the
California Department of Forestry and Fire Protection’s - Office of the State Fire
United States of America and the People of the State of California v.
Plains All American Pipeline, L.P. and Plains Pipeline, L.P.
Consent Decree
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Marshal (“OSFM”), filed a Complaint in this matter pursuant to the Clean Water
Act (“CWA”), 33 U.S.C. §§ 1251 et seq., and associated regulations and orders;
OPA, 33 U.S.C. §§ 2701 et seq., and associated regulations and orders; the
federal Pipeline Safety Laws, 49 U.S.C. §§ 60101 et seq., and associated
regulations and orders; the Lempert-Keene-Seastrand Oil Spill Prevention and
Response Act, California Government Code §§ 8670.1 et seq. and associated
regulations; California Fish and Game Code §§ 2014, 5650, 5650.1, 12016,
13013; California Water Code §§ 13350, 13385; and the Elder California
Pipeline Safety Act of 1981, California Government Code §§ 51010 et seq. The
Complaint against Plains, inter alia, asserts allegations of violations, and seeks
penalties, injunctive relief, and Natural Resource Damages.
NOW, THEREFORE, before the trial of any claims and without
adjudication or admission of any issue of fact or law and with the consent of the
Parties, IT IS HEREBY ADJUDGED, ORDERED, AND DECREED as follows:
II. JURISDICTION AND VENUE
1. This Court has jurisdiction over the subject matter of the United
States’ claims in this action pursuant to Section 311(b)(7)(E) and (n) of the CWA,
33 U.S.C. § 1321(b)(7)(E) and (n), Section 1017(b) of OPA, 33 U.S.C. § 2717(b);
Sections 60120 and 60122 of the Pipeline Safety Laws, 49 U.S.C. §§ 60120 and
60122; and 28 U.S.C. §§ 1331, 1345, and 1355. This Court has supplemental
jurisdiction over the State law claims pursuant to 28 U.S.C. § 1367. To the extent
the OPA presentment requirement described in 33 U.S.C. § 2713 applies, the
United States and the State Agencies have satisfied the requirement.
2. Venue is proper in this District pursuant to Section 311(b)(7)(E) of
the CWA, 33 U.S.C. § 1321(b)(7)(E), Section 1017(b) of OPA,
33 U.S.C. § 2717(b); Section 60120 of the Pipeline Sa
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