{"operation":"document","citation":"CPF 520156002S","title":"SIGNATURE FLIGHT SUPPORT, M&O _ HONOLULU — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-06-22","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520156002s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520156002s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520156002s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520156002S","body":"Safety Order involving SIGNATURE FLIGHT SUPPORT, M&O _ HONOLULU. The dataset does not identify a cited regulation for this case. The case was opened on 2015-06-22 and is reported as closed as of 2017-11-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520156002S_Closure Letter_11222017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Closure%20Letter_11222017.pdf\n\n520156002S_Closure letter_11222017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Closure%20letter_11222017_text.pdf\n\n520156002S_Consent Order and Agreement_05252016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Consent%20Order%20and%20Agreement_05252016.pdf\n\n520156002S_Consent Order and Agreement_05252016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Consent%20Order%20and%20Agreement_05252016_text.pdf\n\n520156002S_Notice of Proposed Safety Order_06222015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Notice%20of%20Proposed%20Safety%20Order_06222015.pdf\n\n520156002S_Notice of Proposed Safety Order_06222015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Notice%20of%20Proposed%20Safety%20Order_06222015_text.pdf\n\n520156002S_Operator Response to Notice and Request for Consultation Meeting_08212015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Operator%20Response%20to%20Notice%20and%20Request%20for%20Consultation%20Meeting_08212015.pdf\n\n520156002S_Closure letter_11222017_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 22, 2017\nMr. Jason Maga\nGeneral Manager\nSignature Flight Support\nHonolulu International Airport\n3201 Aolele Street\nHonolulu, HI 96819\nCPF 5-2015-6002S\nClosure Letter\nDear Mr. Maga:\nOn May 25, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Aircraft Service International Group (ASIG) a Consent Order in the above-\nreferenced case. This Order incorporated the terms of a Consent Agreement, with\nrequirements to take certain corrective measures to remedy the alleged conditions at the Sand\nIsland Tank Facility in Oahu, Hawaii. Based on our review of the documentation you\nprovided, it has been determined that you have complied with all of the terms of the Consent\nAgreement and 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,\nKim West\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 R. Reineke\n\n520156002S_Notice of Proposed Safety Order_06222015_text.pdf\n\nTRANSMITTED VIA EMAIL &\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 22, 2015\nMr. Lawrence McMahon\nVice-President, Fuel Consortiums\nAircraft Services International Group (ASIG)\nASIG/LAX Fuel\n9900 LAXfuel Road\nLos Angeles, CA 90045\nCPF 5-2015-6002S\nSand Island Tank Facility\nDear Mr. McMahon:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The\nNotice proposes that Aircraft Services International Group (ASIG) take certain measures with\nrespect to the Hawaii Fueling Facilities Corporation’s Sand Island Tank Facility in Honolulu,\nHawaii. Your options for responding are set forth in the Notice. Your receipt of the Notice\nconstitutes service of that document under 49 C.F.R. §190.5.\nWe look forward to a successful resolution to ensure pipeline safety. Please direct any questions\non this matter to me at 720-963-3160.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: cc: Notice of Proposed Safety Order\nCopy of 49 C.F.R. § 190.239\nMr. Jason Maga, Assistant Treasurer, ASIG\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\n____________________________________\nIn the Matter of )\nAircraft Services International Group, ) CPF No. 5-2015-6002S\n)\n)\n)\nRespondent )\n____________________________________)\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose\nPursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) has initiated an investigation of the safe operation of the Sand\nIsland Tank Facility in Oahu, Hawaii. This tank facility is owned by Hawaii Fueling Facilities\nCorporation (HFFC) and operated by the Aircraft Services International Group (ASIG). The\nSand Island Tank Facility receives jet fuel from PHMSA-regulated pipelines operated by other\ncompanies. ASIG stores the jet fuel in PHMSA-regulated “breakout tanks” prior to being\ntransported by their pipelines to the Honolulu International Airport.\nThe investigation was prompted after PHMSA was notified on January 21, 2015 by the National\nResponse Center of a jet fuel release from Tank 2 at the Sand Island Tank Facility. As a result of\nthe investigation, it appears conditions exist at this breakout tank facility posing an integrity risk\nto public safety, property, or the environment. Pursuant to 49 U.S.C. § 60117(l), PHMSA issues\nthis Notice, notifying you of the preliminary findings of the investigation, and proposing that you\ntake measures to ensure that the public, property, and the environment are protected from the\npotential risk.\nPreliminary Findings\n• The affected breakout tank facility is known as the Sand Island Tank Facility (Tank\nFacility). The Tank Facility receives, stores, and delivers jet fuel for airplanes serviced at\nthe Honolulu International Airport. The Tanks Facility consists of 16 above ground\nstorage tanks that receive and supply fuel via both PHMSA and US Coast Guard regulated\npipelines which defines the tanks at the Tank Facility as PHMSA-regulated breakout tanks\nsubject to 49 CFR Part 195 regulations. The definition of a breakout tank is specified in\n§195.2.\n\n\n\n• Tank 2 of the Tank Facility was constructed in 1973, with a new single-bottom floor\ninstalled in 1989. The 15 other tanks on the Tank Facility were constructed between 1966\nand 1989, and each can store between 25,000 barrels and 132,000 barrels of jet fuel.\n• The Tank Facility is located adjacent to the Honolulu Harbor. The Tank Facility is\nsituated within an ecological Unusually Sensitive Area, as defined in 49 CFR 195.6, and a\ndensely populated industrial area near downtown Honolulu.\n• In December 2014, ASIG controllers noted inventory discrepancies after filling Tank 2 via\nocean vessel. As a result, ASIG emptied, degassed, and cleaned Tank 2 beginning on\nDecember 26, 2014. The floor was scanned by Magnetic Flux Leakage (MFL) tool and\nmetal loss was noted at a 6-inch repair patch of the floor near the tank’s center sump.\nASIG stated the leak was caused by a failure of the weld at this patch location.\n• At approximately 7:02 pm HST on January 21, 2015, PHMSA was notified by the\nNational Response Center (NRC #1106276) of a leak at Tank 2 of the Tank Facility\n(Accident). An estimated 42,000 gallons of jet fuel seeped from Tank 2.\n• The last inspection per API Standard 653 Tank Inspection, Repair, Alteration and\nReconstruction (API 653 Out-of Service Inspection) on Tank 2 was performed in\nSeptember 2007. The next API 653 Out-of Service Inspection was scheduled for 2017.\nAn annual internal inspection and cleaning (Annual Cleaning Inspection) of Tank 2 was\nperformed in August 2014, with no issues found on the tank floor.\n• On March 11, 2015, PHMSA inspectors initiated an investigation of the Tank 2 Accident.\nThis investigation identified numerous safety and regulatory issues relating to the\ninspection, record keeping, ongoing floor corrosion, and previous floor repairs of Tank 2.\nSpecifically, the previous two API 653 Out-of-Service Inspections (in 2000 and 2007) on\nTank 2 did not:\no Identify that undersized patches were used to repair the tank floor.\no Identify all tank patch locations in the tank floor, including several that had been\ninstalled between 1998 and the present.\no Identify that some of the patches were placed over lap welds between floor plates.\no Identify several recommendations made in a 1996 inspection report that were not\nperformed at that time because the tank had already been placed back in service,\nincluding:\n Lap welds stepped in the wrong direction,\n Undersized fillet welds,\n Lack of an API required hydrotest after the floor to shell fillet weld was\nrepaired, and\n Use of both full penetration butt welds and lap welds on the annular ring.\no Use the proper data to determine the remaining life of the tank floor and the time\nuntil the next scheduled API 653 Out-of-Service Inspection. The 2000 API 653\nOut-of-Service Inspection report indicates pits in the annular ring of the tank but\nthe 2007 report does not indicate any pits. Furthermore, the operator had no\nrecords of a floor repair between 2000 and 2007 and did not recall any floor\nrepairs taking place during this period.\no Include the bottom thickness UT readings in the 2007 report.\n\n\n\no Identify tank floor issues that required repair. No issues were indicated with the\ntank floor in the 2007 inspection report, API 653 Appendix C, checklist despite the\nfact that many issues existed.\n• ASIG did not conduct an API 653 Out-of-Service Inspection within the timeframe\nrecommended by the last API 653 report. The time until the next inspection is listed as\n5.33 years in the 2007 report; however, the tank did not have another API 653 Out-of-\nService Inspection performed on it prior to its failure in December 2014.\n• There were deficiencies in ASIG’s records regarding Tank 2:\no The operator believed that the tank had a double floor when there was only a\nsingle floor.\no No construction drawing records exist.\no The operator believed that there was a sand layer installed beneath the tank floor\nwhen it is actually it appears to be a coarse material as observed by the PHMSA\ninspector at that time.\no A 1998 inspection report documents several patches installed on the floor, but\nsubsequent inspection reports do not indicate any patches. Inspection of the tank\nfloor in March 2015 identified several more patches installed that were not\nindicated on the 1998 drawing, but the operator had no record of them ever being\ninstalled. No records exist of the additional patches installed between 1998 and\nthe present.\no The Tank 2 maintenance records and inspection reports do not properly document\nfloor repairs.\n• The authorized tank inspector (AI), “Inspector A” who last inspected Tank 2 also\nperformed API 653 Out-of-Service Inspection on other tanks at the Tank Facility. The\nquality level of previous API 653 Out-of-Service Inspection including record keeping and\nanalysis of results of the other 15 storage tanks at this facility is therefore questionable.\nBased on the information provided by ASIG, Inspector A performed the last API 653 Out-\nof-Service Inspection on the following tanks: 3, 4, 5, 6, 11, 12, 13, 15, 16, 17, and 18. A\ndifferent inspector, “inspector B”, performed the last API 653 Out-of-Service Inspection\non the four other tanks but inspector A had also performed API 653 Out-of-Service\nInspections on these tanks in the past. Based on inspector A’s involvement in inspecting\nall of the other 15 tanks in the past and ASIG’s poor recordkeeping of the tanks, we have\nconcerns about the integrity of all 15 other tanks. ASIG has indicated that they have\nconcerns about many, but not all, of the tanks as well and has begun the process of\nperforming API 653 Out-of-Service Inspections on the tanks that they are most concerned\nabout.\nProposed Issuance of Safety Order\nSection 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after\nreasonable notice and the opportunity for a hearing, requiring corrective measures, which may\ninclude physical inspection, testing, repair, or other action, as appropriate. The basis for making\n\n\n\nthe determination that a pipeline facility has a condition or conditions that pose a pipeline\nintegrity risk to public safety, property, or the environment is set forth both in the above-\nreferenced statute and 49 C.F.R. § 190.239, a copy of which is enclosed.\nAfter evaluating the foregoing preliminary findings of fact and considering the deficiencies in the\ninspection, record keeping, floor corrosion, and floor repairs of Tank 2, the concern regarding the\nquality and competence of the inspections of the other 15 tanks in the Tank Facility, the age of the\ntanks involved, the hazardous nature of the product transported, the characteristics of the\ngeographical areas where the pipeline facility is located, and the likelihood that the conditions\ncould worsen or develop on other areas of the facility and potentially impact its serviceability, it\nappears that the continued operation of the affected pipeline facility without corrective measures\nwould pose a pipeline integrity risk to public safety, property, or the environment.\nAccordingly, PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the\nproposed issuance of a safety order and to propose that Respondent take measures specified\nherein to address the potential risk.\nResponse to this Notice\nIn accordance with § 190.239, you have 30 days following receipt of this Notice to submit a\nwritten response to the official who issued the Notice. If you do not respond within 30 days, this\nconstitutes a waiver of your right to contest this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Safety Order. In your response, you may notify that official that you intend to\ncomply with the terms of the Notice as proposed, or you may request that an informal\nconsultation be scheduled. Informal consultation provides you with the opportunity to explain the\ncircumstances associated with the risk conditions alleged in the notice and, as appropriate, to\npresent a proposal for a work plan or other remedial measures, without prejudice to your position\nin any subsequent hearing.\nIf you and PHMSA agree within 30 days of informal consultation on a plan and schedule for you\nto address each identified risk condition, we may enter into a written consent agreement (PHMSA\nwould then issue an administrative consent order incorporating the terms of the agreement). If a\nconsent agreement is not reached, or if you have elected not to request informal consultation, you\nmay request an administrative hearing in writing within 30 days following receipt of the Notice or\nwithin 10 days following the conclusion of an informal consultation that did not result in a\nconsent agreement, as applicable. Following a hearing, if the Associate Administrator finds the\nfacility to have a condition that poses a pipeline integrity risk to the public, property, or the\nenvironment in accordance with § 190.239, the Associate Administrator may issue a safety order.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\n\n\n\nIn your correspondence on this matter, please refer to CPF 5-2015-6002S and for each document\nyou submit, please provide a copy in electronic format whenever possible.\nProposed Corrective Measures\nPursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue a safety\norder to ASIG incorporating the following requirements with respect to the Tank Facility:\n1. 2. 3. 4. 5. 6. 7. 8. Within 30 days of receiving this Safety Order, develop and submit to the Director a Work\nPlan for performing an API 653 Out-of-Service Tank Inspection on each tank at the Tank\nFacility that has not received an API 653 Out-of-Service Tank inspection since December\n2014. The Work Plan must utilize a risk based prioritization methodology, include a\nschedule, and must provide for all inspections and repairs to be complete by December 31,\n2016. The Work Plan will be incorporated into the Safety Order.\nWithin 30 days of receiving this Safety Order, for any tank that has had an API 653 Out-\nof-Service Inspection performed since December 2014, submit the date of the inspection,\nand supporting inspection and repair documentation to the Director.\nFor API 653 Out of Service Inspections done before December 2014, the Director may\nconsider exemption from the Work Plan based on an explanation and supporting\ndocumentation of the accuracy of the last API 653 Out-of-Service Inspection.\nOnce approved by the Director, implement the Work Plan according to the schedule set\nforth in it. Submit any changes to the Work Plan to the Director for approval prior to\nimplementing the changes.\nWithin 30 days of receiving this Safety Order , submit the name, address and contact\ninformation of a third party inspector to be used to review the results of all API 653 Out-\nof-Service Tank Inspections performed as a result of this Safety Order for approval by the\nDirector.\nOnce approved by the Director, utilize the services of the third-party inspector to review\nthe records and results of each API 653 Out-of-Service Tank Inspection performed as a\nresult of this Safety Order. Submit a report with the results of this review to the Director\nprior to placing the tank back into service.\nPerform all necessary mandatory repairs required by the API 653 Out-of-Service Tank\nInspections and submit evidence to the Director that each repair was completed properly\nprior to placing each tank back into service.\nPerform all necessary non-mandatory repairs required by the API 653 Out-of-Service\nTank Inspections and submit evidence to the Director that each repair was completed\nproperly prior to placing each tank back into service. In lieu of performing the non-\nmandatory repairs, submit an explanation as to why the non-mandatory repairs do not\nneed to be completed prior to placing the tank back into service to the Director for\napproval prior to placing the tank back into service. The Director will make a\n\n\n\ndetermination as to whether or not the non-mandatory repairs must be completed prior to\nplacing the tank back into service.\n9. Submit monthly reports to the Director that: (1) include available data and results of the\ninspections required by the Safety Order; (2) describe the progress of the repairs and other\nremedial actions being undertaken; and (3) provide tank inventory data to demonstrate\nthat the tanks are not leaking. The reports must be submitted on the 1st of each month\nbeginning on July 1, 2015.\n10. The Director may grant an extension of time for compliance with any of the terms of the\nSafety Order upon a written request submitted in a timely manner demonstrating good\ncause for an extension.\n11. Respondent may appeal any decision of the Director to the Associate Administrator for\nPipeline Safety. Decisions of the Associate Administrator shall be final.\n12. It is requested (not mandated) that ASIG maintain documentation of the safety\nimprovement costs associated with fulfilling this Safety Order and submit the total to the\nDirector. It is requested that these costs be reported in two categories: 1) total cost\nassociated with preparation/revision of plans, procedures, studies and analyses, and 2)\ntotal cost associated with replacements, additions and other changes to pipeline\ninfrastructure will be made.\nThe actions proposed by this Notice of Proposed Safety Order are in addition to and do not waive\nany requirements that apply to Respondent’s pipeline system under 49 C.F.R. Parts 190 through\n199, under any other order issued to Respondent under authority of 49 U.S.C. § 60101 et seq., or\nunder any other provision of Federal or state law.\nAfter receiving and analyzing additional data in the course of this proceeding and implementation\nof the work plan, PHMSA may identify other safety measures that need to be taken. In that event,\nRespondent will be notified of any proposed additional measures and, if necessary, amendments\nto the Work Plan or Safety Order will be made.\n___________________________________ __________________\nChris Hoidal Date issued\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\n\n520156002S_Consent Order and Agreement_05252016_text.pdf\n\nMay 25, 2016\nMr. Tony Lefebvre\nPresident and Chief Operating Officer\nAircraft Service International Group, Inc.\n201 S. Orange Avenue, Suite 1100-A\nOrlando, Florida 32801\nRe: CPF No. 5-2015-6002S\nDear Mr. Lefebvre:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween Pipeline and Hazardous Materials Safety Administration (PHMSA) and Aircraft\nServices International Group (ASIG) which was executed on April 26, 2016. Service of the\nConsent Order and Consent Agreement by certified mail is deemed effective upon the date of\nmailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Chris Hoidal, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Lawrence McMahon, Vice President, Fuel Consortiums, ASIG/LAX Fuel,\n9900 LAXfuel Road, Los Angeles, California 90045\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\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 )\n)\nAircraft Service International Group, Inc., ) CPF No. 5-2015-6002S\n)\nRespondent. )\n)\nCONSENT ORDER\nBy letter dated June 22, 2015, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to\nAircraft Service International Group, Inc. (ASIG), a subsidiary of BBA Aviation plc,1 and which\noperates the Sand Island Tank Facility in Oahu, Hawaii (Tank Facility). The Tank Facility\nreceives jet fuel in PHMSA-regulated breakout tanks prior to being transported by ASIG\npipelines to the Honolulu International Airport.\nIn accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions existed at the Tank\nFacility that posed an integrity risk to public safety, property, or the environment. The Notice\nalso proposed that ASIG take certain corrective measures to remedy the alleged conditions and\nensure that the public, property, and the environment were protected from the potential risk.\nIn response to the Notice, Respondent requested an informal consultation, whereupon the parties\nengaged in good-faith settlement discussions that resulted in the Consent Agreement attached to\nthis Order and that settles all of the allegations in the Notice.\nAccordingly, the foregoing Consent Agreement is hereby approved and incorporated by\nreference into this Order. The Respondent is hereby ordered to comply with the terms of the\nConsent Agreement, effective immediately.\nPursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case\nfor judicial enforcement.\n1 http://www.bbaaviation.com/about-us/company-overview/company-structure.aspx (last viewed May 22, 2016).\n\n\n\nCPF No. 5-2015-6002S\nPage 2\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n__________________________________ _________________________\nAlan K. Mayberry Date Issued\nActing Associate Administrator\nfor Pipeline Safety\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 )\n)\nAircraft Services International Group, ) CPF No. 5-2015-6002S\n)\nRespondent. )\n)\nCONSENT AGREEMENT\nOn June 22, 2015, the Regional Director for the Western Region (the Region) of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS or the\nAgency), issued a Notice of Proposed Safety Order (Notice) to Aircraft Services International\nGroup (ASIG), which operates the Sand Island Tank Facility in Oahu, Hawaii (Tank Facility),\nowned by the Hawaii Fueling Facilities Corporation (HFFC). The Notice alleged that conditions\nexist at the Tank Facility that might pose an integrity risk to public safety, property, or the\nenvironment. The Notice also proposed that ASIG take certain corrective measures to remedy the\nalleged conditions at the Tank Facility and ensure that the public, property, and the environment\nwere protected from the potential risk.\nASIG responded to the Notice by timely submitting a written response, including a proposed work\nplan, and request for an informal consultation. An informal consultation was held on November\n18, 2015.\nDuring the informal consultation, the PHMSA and ASIG agreed that settlement of this proceeding\nwill avoid further administrative proceedings or litigation of this Notice and that entry into this\nConsent Agreement is the most appropriate means of resolving issues raised in the Notice and in\nthe public interest. Therefore, pursuant to 49 C.F.R. Part 190, without adjudication of any issue of\nfact or law, and upon consent and agreement of Respondent and the PHMSA (the Parties), the\nParties agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the Tank Facility, Respondent\nand its tank facility system are subject to the jurisdiction of the Federal pipeline safety laws, 49\nU.S.C. § 60101 et seq. and the regulations and administrative orders issued thereunder. For\npurposes of this Consent Agreement, Respondent acknowledges that it received proper notice of\nthe PHMSA’s action in this proceeding and that the Notice states claims upon which relief may be\ngranted pursuant to 49 U.S.C. § 60101 et seq. and the regulations and orders issued thereunder.\n\n\n\n2. Respondent agrees, for purposes of this Consent Agreement, to address the integrity\nrisks identified in the Notice by completing the actions specified in Part III of this agreement\n(Corrective Measures) and to abide by the terms of this Consent Agreement. This Consent\nAgreement does not constitute a finding of violation of any Federal law or regulation and may not\nbe used in any civil or administrative proceeding of any kind as evidence or proof of any fact, fault\nor liability, or as evidence of the violation of any law, rule, regulation or requirement, except in a\nproceeding to enforce the provisions of this Consent Agreement.\n3. After Respondent returns this signed agreement, the PHMSA’s representative will\npresent it to the Associate Administrator for Pipeline Safety recommending that the Associate\nAdministrator adopt the terms of this agreement by issuing an administrative order (Consent\nOrder) incorporating the terms of this Consent Agreement. The terms of this agreement constitute\nan offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator will issue a Consent Order incorporating the terms of the agreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all the rights to\ncontest the adequacy of notice, or the validity of the Consent Order, including all rights to\nadministrative or judicial hearings or appeals, except as set forth herein.\n5. This Consent Agreement shall apply to and be binding upon the PHMSA, and upon\nRespondent, its officers, directors and employees, and its successors, assigns, or other entities or\npersons otherwise bound by law. Respondent agrees to provide a copy of this Consent Agreement\nand any incorporated work plans and schedules to all of Respondent’s officers, employees, and\nagents whose duties might reasonably include compliance with this Consent Agreement.\n6. For all transfers of operating responsibility of the Tank Facility, Respondent shall\nprovide a copy of this Consent Agreement to the prospective transferee at least 30 days prior to\nsuch transfer and simultaneously provide written notice of the prospective transfer to the PHMSA\nRegion Director (Director) who issued the Notice.\n7. This Consent Agreement constitutes the final, complete and exclusive agreement\nand understanding between the Parties with respect to the settlement embodied in this Consent\nAgreement, and resolves any claims that have been or could have been alleged regarding (1) the\nPHMSA investigation of the Tank Facility that was conducted on March 11, 2015, in connection\nwith the January 21, 2015 leak at Tank 2 of the Tank Facility that resulted in an estimated 42,000\ngallons of jet fuel seeping from Tank 2 and (2) a records review by PHMSA investigators\nconcerning the integrity of the other 15 tanks at the Tank Facility, which are included in this\nConsent Agreement. The Parties acknowledge that there are no representations, agreements, or\nunderstandings relating to the settlement other than those expressly contained in this Consent\nAgreement, except that the terms of this Consent Agreement may be construed by reference to the\nNotice. CPF 5-2015-6002S will be closed once ASIG submits its Final Report to the Director.\n8. Nothing in this Consent Agreement affects or relieves Respondent of its\nresponsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49\n2\n\n\n\nU.S.C. § 60101 et seq., and the regulations and orders issued thereunder. Nothing in this Consent\nAgreement alters the PHMSA’s right of access, entry, inspection, and information gathering or the\nPHMSA’s authority to bring enforcement actions against Respondent pursuant to the Federal\npipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal\nor State law.\n9. This Consent Agreement does not waive or modify any Federal, State, or local laws\nor regulations that are applicable to Respondent’s pipeline systems. This Consent Agreement is\nnot a permit, or a modification of any permit, under any Federal, State, local laws or regulations.\nRespondent remains responsible for achieving and maintaining compliance with all applicable\nFederal, State, and local laws, regulations and permits.\n10. This Consent Agreement does not create rights in, or grant any cause of action to,\nany third party not party to this Agreement. The U.S. Department of Transportation is not liable\nfor any injuries or damages to persons or property arising from acts or omissions of Respondent\nor its officers, employees, or agents carrying out the work required by this Consent Agreement.\nRespondent agrees to hold harmless the U.S. Department of Transportation, its officers,\nemployees, agents and representatives from any and all causes of action arising from any acts or\nomissions of Respondent or its contractors in carrying out any work required by this Consent\nAgreement.\nI. Completed Corrective Measures\n11. In response to the Safety-Related Condition described in the Notice, to date, ASIG\nhas completed the following corrective measures:\n(A) ASIG has selected and the Director has approved an independent third party\ninspector, Engineering and Inspections Hawaii, Inc., to review the records\nand results of all API 651, 652, and 653 Inspections performed under this\nConsent Agreement.\n(B) ASIG has completed API 653 Out-of-Service Tank Inspections for Tanks\n1 and 4. The results of those inspections were reviewed by Engineering and\nInspections Hawaii, Inc. Repairs to those tanks were performed and they\nhave been approved for continued service.\n(C) ASIG has completed API 653 Out-of-Service Tank Inspections for Tanks\n2 and 7. The results of those inspections were reviewed by Engineering and\nInspections Hawaii, Inc. These tanks require repair before they can be\nreturned to service.\nIII. Corrective Measures\n12. Upon issuance of the Consent Order, Respondent agrees to perform the additional\nCorrective Measures set forth below.\n13. In regard to Tank Nos. 6, 11 and 12, in which a second liner, cathodic protection\nsystem and tank floor were installed in 2014, and Tank No. 13, in which the tank floor was\n3\n\n\n\nremoved and a liner, cathodic protection system and tank floor were installed in 2013, ASIG must\nhire a third-party inspector to conduct an independent review of the extensive work done on these\ntanks to confirm compliance with API 651, 652, and 653. This must be completed by no later than\nMarch 31, 2017, contingent on the extent of repairs required on each of the tanks in item 14. .If a\ntank is taken out of service for an inspection, PHMSA agrees that an extension will be granted to\nallow Respondent to delay inspection for the next tank to be inspected, until the preceding tank is\nback in service. The intent of this extension is to prevent more than one tank at a time being taken\nout of service.\n14. ASIG must perform API 653 Out-of-Service Inspections on Tank Nos. 3, 5, 14, 15,\n16, 17, 18, and 19, and hire a third-party inspector to conduct an independent review of the results\nof these inspections. ASIG must perform all repairs that are critical to the integrity of the tank and\nsubmit evidence to the Director that each repair was completed properly prior to placing each tank\nback into service. This must be completed by no later than March 31, 2017, contingent on the\nextent of repairs required on each of the tanks. If a tank is taken out of service for an inspection,\nPHMSA agrees that an extension will be granted to allow Respondent to delay inspection for the\nnext tank to be inspected, until the preceding tank is back in service. The intent of this extension\nis to prevent more than one tank at a time being taken out of service.\n15. Respondent must create and submit on a quarterly basis a Consent Order\nDocumentation Report (CODR). The intent is for the CODR to summarize all activities and\ndocumentation associated with this Order. The CODR should identify any activities or\ndocumentation for the period reflected in previous report activities; so the status of any item in the\nOrder is reflected in each report. When the Respondent has concluded all required items in this\nOrder, it will submit a final CODR to the Director. This will allow the Director to complete a\nthorough review of all actions taken by the Respondent with regard to this Order prior to approving\nthe closure of this Order.\n16. The Director may grant an extension of time for compliance with any of the terms\nof the Order upon a written request, timely submitted, demonstrating good cause for an extension.\n17. ASIG may appeal any decision of the Director to the Associate Administrator for\nPipeline Safety. Decisions of the Associate Administrator are final.\nIV. Review and Approval Process\n18. With respect to any submission under Part III (Corrective Measures) of this Consent\nAgreement that requires the approval of the Region Director, the Director may: (a) approve, in\nwhole or in part, the submission, (b) approve the submission on specified conditions; (c)\ndisapprove, in whole or in part, the submission, or (d) any combination of the foregoing. If the\nRegion Director approves, approves in part, or approves with conditions, Respondent will take all\nactions as approved by the Director, subject to Respondent’s right to invoke the dispute resolution\nprocedures in Section V with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent with a\nwritten notice of the deficiencies. Respondent will correct all deficiencies within the time specified\n4\n\n\n\nby the Director and resubmit it for approval, subject to the dispute resolution procedures in Section\nV.\nV. Dispute Resolution\n19. The Region Director and Respondent will informally attempt to resolve any\ndisputes arising under this Consent Agreement. If Respondent and the Region Director are unable\nto informally resolve the dispute within 15 days of submittal of Respondent’s invoking dispute\nresolution, Respondent may request in writing, within 10 days thereafter, a written determination\nresolving the dispute from the Associate Administrator for Pipeline Safety providing all\ninformation that Respondent believes is relevant to the dispute. If the request is submitted as\nprovided herein, the Associate Administrator will issue a final determination in writing. The\nexistence of a dispute and the PHMSA’s consideration of matters placed in dispute will not excuse,\ntoll, or suspend any term or timeframe for completion of any work to be performed under this\nagreement during the pendency of the dispute resolution process except as reasonably agreed by\nthe Region Director or the Associate Administrator in writing.\nVI. Enforcement\n20. This Consent Agreement, as adopted by the Consent Order, is subject to all\nenforcement authorities available to the PHMSA under 49 U.S.C. § 60101 et seq. and 49 C.F.R.\nPart 190. All work plans and associated schedules set forth or referenced in Part III will be\nautomatically incorporated into this Consent Agreement and are enforceable in the same manner.\nVII. Recordkeeping and Information Disclosure\n21. Unless otherwise required by this Consent Agreement, Respondent agrees to\nmaintain the material records demonstrating compliance with all requirements of this Consent\nAgreement for a period of at least 5 years following completion of all work to be performed. For\nany reports, plans or other deliverables required to be submitted to the PHMSA pursuant to this\nConsent Agreement, Respondent may assert a claim of business confidentiality or other protections\napplicable to the release of information by the PHMSA, covering part or all of the information\nrequired to be submitted to the PHMSA pursuant to this agreement in accordance with C.F.R. Part\n7. Respondent must mark the claim of confidentiality in writing on each page, and include a\nstatement specifying the grounds for each claim of confidentiality. The PHMSA determines release\nof any information submitted pursuant to this Consent Agreement in accordance with 49 C.F.R.\nPart 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and/or the PHMSA policies, and\nother applicable regulations and Executive Orders.\nVIII. Effective Date\n22. The “Effective Date” as used herein is the date on which the Order is issued by the\nAssociate Administrator incorporating the terms of this Agreement. Unless specified to the\ncontrary, all deadlines for actions required by this Consent Agreement run from the Effective Date\nof this Order.\n5\n\n\n\nIX. Modification\n23. The terms of this Consent Agreement may be modified by mutual agreement of the\nParties. Such modifications must be in writing and signed by both parties.\nX. Termination\n24. This Consent Agreement terminates upon completion of all terms set forth in Part\nIII (Corrective Measures) as determined by the Director, Western Region. Respondent may request\nwritten confirmation from the PHMSA when this Consent Agreement is terminated and the\nDirector, Western Region will provide such confirmation. To the extent ongoing monitoring is\nrequired, PHMSA may terminate this Consent Agreement with respect to all other requirements\nwith the exception of such monitoring. Nothing in this Consent Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement.\nXI. Ratification\n25. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Consent Agreement and","truncated":true,"body_characters":40516}