# SIGNATURE FLIGHT SUPPORT, M&O _ HONOLULU — Safety Order

- **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:** Not available
- **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.

Official case documents:

520156002S_Closure Letter_11222017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Closure%20Letter_11222017.pdf

520156002S_Closure letter_11222017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Closure%20letter_11222017_text.pdf

520156002S_Consent Order and Agreement_05252016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Consent%20Order%20and%20Agreement_05252016.pdf

520156002S_Consent Order and Agreement_05252016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Consent%20Order%20and%20Agreement_05252016_text.pdf

520156002S_Notice of Proposed Safety Order_06222015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520156002S/520156002S_Notice%20of%20Proposed%20Safety%20Order_06222015.pdf

520156002S_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

520156002S_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

520156002S_Closure letter_11222017_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 22, 2017
Mr. Jason Maga
General Manager
Signature Flight Support
Honolulu International Airport
3201 Aolele Street
Honolulu, HI 96819
CPF 5-2015-6002S
Closure Letter
Dear Mr. Maga:
On May 25, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Aircraft Service International Group (ASIG) a Consent Order in the above-
referenced case. This Order incorporated the terms of a Consent Agreement, with
requirements to take certain corrective measures to remedy the alleged conditions at the Sand
Island Tank Facility in Oahu, Hawaii. Based on our review of the documentation you
provided, it has been determined that you have complied with all of the terms of the Consent
Agreement and Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Kim West
Acting Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 R. Reineke

520156002S_Notice of Proposed Safety Order_06222015_text.pdf

TRANSMITTED VIA EMAIL &
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
June 22, 2015
Mr. Lawrence McMahon
Vice-President, Fuel Consortiums
Aircraft Services International Group (ASIG)
ASIG/LAX Fuel
9900 LAXfuel Road
Los Angeles, CA 90045
CPF 5-2015-6002S
Sand Island Tank Facility
Dear Mr. McMahon:
Enclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The
Notice proposes that Aircraft Services International Group (ASIG) take certain measures with
respect to the Hawaii Fueling Facilities Corporation’s Sand Island Tank Facility in Honolulu,
Hawaii. Your options for responding are set forth in the Notice. Your receipt of the Notice
constitutes service of that document under 49 C.F.R. §190.5.
We look forward to a successful resolution to ensure pipeline safety. Please direct any questions
on this matter to me at 720-963-3160.
Sincerely,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: cc: Notice of Proposed Safety Order
Copy of 49 C.F.R. § 190.239
Mr. Jason Maga, Assistant Treasurer, ASIG



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
____________________________________
In the Matter of )
Aircraft Services International Group, ) CPF No. 5-2015-6002S
)
)
)
Respondent )
____________________________________)
NOTICE OF PROPOSED SAFETY ORDER
Background and Purpose
Pursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials
Safety Administration (PHMSA) has initiated an investigation of the safe operation of the Sand
Island Tank Facility in Oahu, Hawaii. This tank facility is owned by Hawaii Fueling Facilities
Corporation (HFFC) and operated by the Aircraft Services International Group (ASIG). The
Sand Island Tank Facility receives jet fuel from PHMSA-regulated pipelines operated by other
companies. ASIG stores the jet fuel in PHMSA-regulated “breakout tanks” prior to being
transported by their pipelines to the Honolulu International Airport.
The investigation was prompted after PHMSA was notified on January 21, 2015 by the National
Response Center of a jet fuel release from Tank 2 at the Sand Island Tank Facility. As a result of
the investigation, it appears conditions exist at this breakout tank facility posing an integrity risk
to public safety, property, or the environment. Pursuant to 49 U.S.C. § 60117(l), PHMSA issues
this Notice, notifying you of the preliminary findings of the investigation, and proposing that you
take measures to ensure that the public, property, and the environment are protected from the
potential risk.
Preliminary Findings
• The affected breakout tank facility is known as the Sand Island Tank Facility (Tank
Facility). The Tank Facility receives, stores, and delivers jet fuel for airplanes serviced at
the Honolulu International Airport. The Tanks Facility consists of 16 above ground
storage tanks that receive and supply fuel via both PHMSA and US Coast Guard regulated
pipelines which defines the tanks at the Tank Facility as PHMSA-regulated breakout tanks
subject to 49 CFR Part 195 regulations. The definition of a breakout tank is specified in
§195.2.



• Tank 2 of the Tank Facility was constructed in 1973, with a new single-bottom floor
installed in 1989. The 15 other tanks on the Tank Facility were constructed between 1966
and 1989, and each can store between 25,000 barrels and 132,000 barrels of jet fuel.
• The Tank Facility is located adjacent to the Honolulu Harbor. The Tank Facility is
situated within an ecological Unusually Sensitive Area, as defined in 49 CFR 195.6, and a
densely populated industrial area near downtown Honolulu.
• In December 2014, ASIG controllers noted inventory discrepancies after filling Tank 2 via
ocean vessel. As a result, ASIG emptied, degassed, and cleaned Tank 2 beginning on
December 26, 2014. The floor was scanned by Magnetic Flux Leakage (MFL) tool and
metal loss was noted at a 6-inch repair patch of the floor near the tank’s center sump.
ASIG stated the leak was caused by a failure of the weld at this patch location.
• At approximately 7:02 pm HST on January 21, 2015, PHMSA was notified by the
National Response Center (NRC #1106276) of a leak at Tank 2 of the Tank Facility
(Accident). An estimated 42,000 gallons of jet fuel seeped from Tank 2.
• The last inspection per API Standard 653 Tank Inspection, Repair, Alteration and
Reconstruction (API 653 Out-of Service Inspection) on Tank 2 was performed in
September 2007. The next API 653 Out-of Service Inspection was scheduled for 2017.
An annual internal inspection and cleaning (Annual Cleaning Inspection) of Tank 2 was
performed in August 2014, with no issues found on the tank floor.
• On March 11, 2015, PHMSA inspectors initiated an investigation of the Tank 2 Accident.
This investigation identified numerous safety and regulatory issues relating to the
inspection, record keeping, ongoing floor corrosion, and previous floor repairs of Tank 2.
Specifically, the previous two API 653 Out-of-Service Inspections (in 2000 and 2007) on
Tank 2 did not:
o Identify that undersized patches were used to repair the tank floor.
o Identify all tank patch locations in the tank floor, including several that had been
installed between 1998 and the present.
o Identify that some of the patches were placed over lap welds between floor plates.
o Identify several recommendations made in a 1996 inspection report that were not
performed at that time because the tank had already been placed back in service,
including:
 Lap welds stepped in the wrong direction,
 Undersized fillet welds,
 Lack of an API required hydrotest after the floor to shell fillet weld was
repaired, and
 Use of both full penetration butt welds and lap welds on the annular ring.
o Use the proper data to determine the remaining life of the tank floor and the time
until the next scheduled API 653 Out-of-Service Inspection. The 2000 API 653
Out-of-Service Inspection report indicates pits in the annular ring of the tank but
the 2007 report does not indicate any pits. Furthermore, the operator had no
records of a floor repair between 2000 and 2007 and did not recall any floor
repairs taking place during this period.
o Include the bottom thickness UT readings in the 2007 report.



o Identify tank floor issues that required repair. No issues were indicated with the
tank floor in the 2007 inspection report, API 653 Appendix C, checklist despite the
fact that many issues existed.
• ASIG did not conduct an API 653 Out-of-Service Inspection within the timeframe
recommended by the last API 653 report. The time until the next inspection is listed as
5.33 years in the 2007 report; however, the tank did not have another API 653 Out-of-
Service Inspection performed on it prior to its failure in December 2014.
• There were deficiencies in ASIG’s records regarding Tank 2:
o The operator believed that the tank had a double floor when there was only a
single floor.
o No construction drawing records exist.
o The operator believed that there was a sand layer installed beneath the tank floor
when it is actually it appears to be a coarse material as observed by the PHMSA
inspector at that time.
o A 1998 inspection report documents several patches installed on the floor, but
subsequent inspection reports do not indicate any patches. Inspection of the tank
floor in March 2015 identified several more patches installed that were not
indicated on the 1998 drawing, but the operator had no record of them ever being
installed. No records exist of the additional patches installed between 1998 and
the present.
o The Tank 2 maintenance records and inspection reports do not properly document
floor repairs.
• The authorized tank inspector (AI), “Inspector A” who last inspected Tank 2 also
performed API 653 Out-of-Service Inspection on other tanks at the Tank Facility. The
quality level of previous API 653 Out-of-Service Inspection including record keeping and
analysis of results of the other 15 storage tanks at this facility is therefore questionable.
Based on the information provided by ASIG, Inspector A performed the last API 653 Out-
of-Service Inspection on the following tanks: 3, 4, 5, 6, 11, 12, 13, 15, 16, 17, and 18. A
different inspector, “inspector B”, performed the last API 653 Out-of-Service Inspection
on the four other tanks but inspector A had also performed API 653 Out-of-Service
Inspections on these tanks in the past. Based on inspector A’s involvement in inspecting
all of the other 15 tanks in the past and ASIG’s poor recordkeeping of the tanks, we have
concerns about the integrity of all 15 other tanks. ASIG has indicated that they have
concerns about many, but not all, of the tanks as well and has begun the process of
performing API 653 Out-of-Service Inspections on the tanks that they are most concerned
about.
Proposed Issuance of Safety Order
Section 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after
reasonable notice and the opportunity for a hearing, requiring corrective measures, which may
include physical inspection, testing, repair, or other action, as appropriate. The basis for making



the determination that a pipeline facility has a condition or conditions that pose a pipeline
integrity risk to public safety, property, or the environment is set forth both in the above-
referenced statute and 49 C.F.R. § 190.239, a copy of which is enclosed.
After evaluating the foregoing preliminary findings of fact and considering the deficiencies in the
inspection, record keeping, floor corrosion, and floor repairs of Tank 2, the concern regarding the
quality and competence of the inspections of the other 15 tanks in the Tank Facility, the age of the
tanks involved, the hazardous nature of the product transported, the characteristics of the
geographical areas where the pipeline facility is located, and the likelihood that the conditions
could worsen or develop on other areas of the facility and potentially impact its serviceability, it
appears that the continued operation of the affected pipeline facility without corrective measures
would pose a pipeline integrity risk to public safety, property, or the environment.
Accordingly, PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the
proposed issuance of a safety order and to propose that Respondent take measures specified
herein to address the potential risk.
Response to this Notice
In accordance with § 190.239, you have 30 days following receipt of this Notice to submit a
written response to the official who issued the Notice. If you do not respond within 30 days, this
constitutes a waiver of your right to contest this Notice and authorizes the Associate
Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to
you and to issue a Safety Order. In your response, you may notify that official that you intend to
comply with the terms of the Notice as proposed, or you may request that an informal
consultation be scheduled. Informal consultation provides you with the opportunity to explain the
circumstances associated with the risk conditions alleged in the notice and, as appropriate, to
present a proposal for a work plan or other remedial measures, without prejudice to your position
in any subsequent hearing.
If you and PHMSA agree within 30 days of informal consultation on a plan and schedule for you
to address each identified risk condition, we may enter into a written consent agreement (PHMSA
would then issue an administrative consent order incorporating the terms of the agreement). If a
consent agreement is not reached, or if you have elected not to request informal consultation, you
may request an administrative hearing in writing within 30 days following receipt of the Notice or
within 10 days following the conclusion of an informal consultation that did not result in a
consent agreement, as applicable. Following a hearing, if the Associate Administrator finds the
facility to have a condition that poses a pipeline integrity risk to the public, property, or the
environment in accordance with § 190.239, the Associate Administrator may issue a safety order.
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).



In your correspondence on this matter, please refer to CPF 5-2015-6002S and for each document
you submit, please provide a copy in electronic format whenever possible.
Proposed Corrective Measures
Pursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue a safety
order to ASIG incorporating the following requirements with respect to the Tank Facility:
1. 2. 3. 4. 5. 6. 7. 8. Within 30 days of receiving this Safety Order, develop and submit to the Director a Work
Plan for performing an API 653 Out-of-Service Tank Inspection on each tank at the Tank
Facility that has not received an API 653 Out-of-Service Tank inspection since December
2014. The Work Plan must utilize a risk based prioritization methodology, include a
schedule, and must provide for all inspections and repairs to be complete by December 31,
2016. The Work Plan will be incorporated into the Safety Order.
Within 30 days of receiving this Safety Order, for any tank that has had an API 653 Out-
of-Service Inspection performed since December 2014, submit the date of the inspection,
and supporting inspection and repair documentation to the Director.
For API 653 Out of Service Inspections done before December 2014, the Director may
consider exemption from the Work Plan based on an explanation and supporting
documentation of the accuracy of the last API 653 Out-of-Service Inspection.
Once approved by the Director, implement the Work Plan according to the schedule set
forth in it. Submit any changes to the Work Plan to the Director for approval prior to
implementing the changes.
Within 30 days of receiving this Safety Order , submit the name, address and contact
information of a third party inspector to be used to review the results of all API 653 Out-
of-Service Tank Inspections performed as a result of this Safety Order for approval by the
Director.
Once approved by the Director, utilize the services of the third-party inspector to review
the records and results of each API 653 Out-of-Service Tank Inspection performed as a
result of this Safety Order. Submit a report with the results of this review to the Director
prior to placing the tank back into service.
Perform all necessary mandatory repairs required by the API 653 Out-of-Service Tank
Inspections and submit evidence to the Director that each repair was completed properly
prior to placing each tank back into service.
Perform all necessary non-mandatory repairs required by the API 653 Out-of-Service
Tank Inspections and submit evidence to the Director that each repair was completed
properly prior to placing each tank back into service. In lieu of performing the non-
mandatory repairs, submit an explanation as to why the non-mandatory repairs do not
need to be completed prior to placing the tank back into service to the Director for
approval prior to placing the tank back into service. The Director will make a



determination as to whether or not the non-mandatory repairs must be completed prior to
placing the tank back into service.
9. Submit monthly reports to the Director that: (1) include available data and results of the
inspections required by the Safety Order; (2) describe the progress of the repairs and other
remedial actions being undertaken; and (3) provide tank inventory data to demonstrate
that the tanks are not leaking. The reports must be submitted on the 1st of each month
beginning on July 1, 2015.
10. The Director may grant an extension of time for compliance with any of the terms of the
Safety Order upon a written request submitted in a timely manner demonstrating good
cause for an extension.
11. Respondent may appeal any decision of the Director to the Associate Administrator for
Pipeline Safety. Decisions of the Associate Administrator shall be final.
12. It is requested (not mandated) that ASIG maintain documentation of the safety
improvement costs associated with fulfilling this Safety Order and submit the total to the
Director. It is requested that these costs be reported in two categories: 1) total cost
associated with preparation/revision of plans, procedures, studies and analyses, and 2)
total cost associated with replacements, additions and other changes to pipeline
infrastructure will be made.
The actions proposed by this Notice of Proposed Safety Order are in addition to and do not waive
any requirements that apply to Respondent’s pipeline system under 49 C.F.R. Parts 190 through
199, 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.
After receiving and analyzing additional data in the course of this proceeding and implementation
of the work plan, PHMSA may identify other safety measures that need to be taken. In that event,
Respondent will be notified of any proposed additional measures and, if necessary, amendments
to the Work Plan or Safety Order will be made.
___________________________________ __________________
Chris Hoidal Date issued
Director, Western Region
Pipeline and Hazardous Materials Safety Administration

520156002S_Consent Order and Agreement_05252016_text.pdf

May 25, 2016
Mr. Tony Lefebvre
President and Chief Operating Officer
Aircraft Service International Group, Inc.
201 S. Orange Avenue, Suite 1100-A
Orlando, Florida 32801
Re: CPF No. 5-2015-6002S
Dear Mr. Lefebvre:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement
between Pipeline and Hazardous Materials Safety Administration (PHMSA) and Aircraft
Services International Group (ASIG) which was executed on April 26, 2016. Service of the
Consent Order and Consent Agreement by certified mail is deemed effective upon the date of
mailing, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Acting Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Chris Hoidal, Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. Lawrence McMahon, Vice President, Fuel Consortiums, ASIG/LAX Fuel,
9900 LAXfuel Road, Los Angeles, California 90045
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
)
In the Matter of )
)
Aircraft Service International Group, Inc., ) CPF No. 5-2015-6002S
)
Respondent. )
)
CONSENT ORDER
By letter dated June 22, 2015, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to
Aircraft Service International Group, Inc. (ASIG), a subsidiary of BBA Aviation plc,1 and which
operates the Sand Island Tank Facility in Oahu, Hawaii (Tank Facility). The Tank Facility
receives jet fuel in PHMSA-regulated breakout tanks prior to being transported by ASIG
pipelines to the Honolulu International Airport.
In accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions existed at the Tank
Facility that posed an integrity risk to public safety, property, or the environment. The Notice
also proposed that ASIG take certain corrective measures to remedy the alleged conditions and
ensure that the public, property, and the environment were protected from the potential risk.
In response to the Notice, Respondent requested an informal consultation, whereupon the parties
engaged in good-faith settlement discussions that resulted in the Consent Agreement attached to
this Order and that settles all of the allegations in the Notice.
Accordingly, the foregoing Consent Agreement is hereby approved and incorporated by
reference into this Order. The Respondent is hereby ordered to comply with the terms of the
Consent Agreement, effective immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case
for judicial enforcement.
1 http://www.bbaaviation.com/about-us/company-overview/company-structure.aspx (last viewed May 22, 2016).



CPF No. 5-2015-6002S
Page 2
The terms and conditions of this Consent Order are effective upon service in accordance with
49 C.F.R. § 190.5.
__________________________________ _________________________
Alan K. Mayberry Date Issued
Acting Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
)
In the Matter of )
)
Aircraft Services International Group, ) CPF No. 5-2015-6002S
)
Respondent. )
)
CONSENT AGREEMENT
On June 22, 2015, the Regional Director for the Western Region (the Region) of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS or the
Agency), issued a Notice of Proposed Safety Order (Notice) to Aircraft Services International
Group (ASIG), which operates the Sand Island Tank Facility in Oahu, Hawaii (Tank Facility),
owned by the Hawaii Fueling Facilities Corporation (HFFC). The Notice alleged that conditions
exist at the Tank Facility that might pose an integrity risk to public safety, property, or the
environment. The Notice also proposed that ASIG take certain corrective measures to remedy the
alleged conditions at the Tank Facility and ensure that the public, property, and the environment
were protected from the potential risk.
ASIG responded to the Notice by timely submitting a written response, including a proposed work
plan, and request for an informal consultation. An informal consultation was held on November
18, 2015.
During the informal consultation, the PHMSA and ASIG agreed that settlement of this proceeding
will avoid further administrative proceedings or litigation of this Notice and that entry into this
Consent Agreement is the most appropriate means of resolving issues raised in the Notice and in
the public interest. Therefore, pursuant to 49 C.F.R. Part 190, without adjudication of any issue of
fact or law, and upon consent and agreement of Respondent and the PHMSA (the Parties), the
Parties agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of the Tank Facility, Respondent
and its tank facility system are subject to the jurisdiction of the Federal pipeline safety laws, 49
U.S.C. § 60101 et seq. and the regulations and administrative orders issued thereunder. For
purposes of this Consent Agreement, Respondent acknowledges that it received proper notice of
the PHMSA’s action in this proceeding and that the Notice states claims upon which relief may be
granted pursuant to 49 U.S.C. § 60101 et seq. and the regulations and orders issued thereunder.



2. Respondent agrees, for purposes of this Consent Agreement, to address the integrity
risks identified in the Notice by completing the actions specified in Part III of this agreement
(Corrective Measures) and to abide by the terms of this Consent Agreement. This Consent
Agreement does not constitute a finding of violation of any Federal law or regulation and may not
be used in any civil or administrative proceeding of any kind as evidence or proof of any fact, fault
or liability, or as evidence of the violation of any law, rule, regulation or requirement, except in a
proceeding to enforce the provisions of this Consent Agreement.
3. After Respondent returns this signed agreement, the PHMSA’s representative will
present it to the Associate Administrator for Pipeline Safety recommending that the Associate
Administrator adopt the terms of this agreement by issuing an administrative order (Consent
Order) incorporating the terms of this Consent Agreement. The terms of this agreement constitute
an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate
Administrator will issue a Consent Order incorporating the terms of the agreement.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all the rights to
contest the adequacy of notice, or the validity of the Consent Order, including all rights to
administrative or judicial hearings or appeals, except as set forth herein.
5. This Consent Agreement shall apply to and be binding upon the PHMSA, and upon
Respondent, its officers, directors and employees, and its successors, assigns, or other entities or
persons otherwise bound by law. Respondent agrees to provide a copy of this Consent Agreement
and any incorporated work plans and schedules to all of Respondent’s officers, employees, and
agents whose duties might reasonably include compliance with this Consent Agreement.
6. For all transfers of operating responsibility of the Tank Facility, Respondent shall
provide a copy of this Consent Agreement to the prospective transferee at least 30 days prior to
such transfer and simultaneously provide written notice of the prospective transfer to the PHMSA
Region Director (Director) who issued the Notice.
7. This Consent Agreement constitutes the final, complete and exclusive agreement
and understanding between the Parties with respect to the settlement embodied in this Consent
Agreement, and resolves any claims that have been or could have been alleged regarding (1) the
PHMSA investigation of the Tank Facility that was conducted on March 11, 2015, in connection
with the January 21, 2015 leak at Tank 2 of the Tank Facility that resulted in an estimated 42,000
gallons of jet fuel seeping from Tank 2 and (2) a records review by PHMSA investigators
concerning the integrity of the other 15 tanks at the Tank Facility, which are included in this
Consent Agreement. The Parties acknowledge that there are no representations, agreements, or
understandings relating to the settlement other than those expressly contained in this Consent
Agreement, except that the terms of this Consent Agreement may be construed by reference to the
Notice. CPF 5-2015-6002S will be closed once ASIG submits its Final Report to the Director.
8. Nothing in this Consent Agreement affects or relieves Respondent of its
responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49
2



U.S.C. § 60101 et seq., and the regulations and orders issued thereunder. Nothing in this Consent
Agreement alters the PHMSA’s right of access, entry, inspection, and information gathering or the
PHMSA’s authority to bring enforcement actions against Respondent pursuant to the Federal
pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal
or State law.
9. This Consent Agreement does not waive or modify any Federal, State, or local laws
or regulations that are applicable to Respondent’s pipeline systems. This Consent Agreement is
not a permit, or a modification of any permit, under any Federal, State, local laws or regulations.
Respondent remains responsible for achieving and maintaining compliance with all applicable
Federal, State, and local laws, regulations and permits.
10. This Consent Agreement does not create rights in, or grant any cause of action to,
any third party not party to this Agreement. The U.S. Department of Transportation is not liable
for any injuries or damages to persons or property arising from acts or omissions of Respondent
or its officers, employees, or agents carrying out the work required by this Consent Agreement.
Respondent agrees to hold harmless the U.S. Department of Transportation, its officers,
employees, agents and representatives from any and all causes of action arising from any acts or
omissions of Respondent or its contractors in carrying out any work required by this Consent
Agreement.
I. Completed Corrective Measures
11. In response to the Safety-Related Condition described in the Notice, to date, ASIG
has completed the following corrective measures:
(A) ASIG has selected and the Director has approved an independent third party
inspector, Engineering and Inspections Hawaii, Inc., to review the records
and results of all API 651, 652, and 653 Inspections performed under this
Consent Agreement.
(B) ASIG has completed API 653 Out-of-Service Tank Inspections for Tanks
1 and 4. The results of those inspections were reviewed by Engineering and
Inspections Hawaii, Inc. Repairs to those tanks were performed and they
have been approved for continued service.
(C) ASIG has completed API 653 Out-of-Service Tank Inspections for Tanks
2 and 7. The results of those inspections were reviewed by Engineering and
Inspections Hawaii, Inc. These tanks require repair before they can be
returned to service.
III. Corrective Measures
12. Upon issuance of the Consent Order, Respondent agrees to perform the additional
Corrective Measures set forth below.
13. In regard to Tank Nos. 6, 11 and 12, in which a second liner, cathodic protection
system and tank floor were installed in 2014, and Tank No. 13, in which the tank floor was
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removed and a liner, cathodic protection system and tank floor were installed in 2013, ASIG must
hire a third-party inspector to conduct an independent review of the extensive work done on these
tanks to confirm compliance with API 651, 652, and 653. This must be completed by no later than
March 31, 2017, contingent on the extent of repairs required on each of the tanks in item 14. .If a
tank is taken out of service for an inspection, PHMSA agrees that an extension will be granted to
allow Respondent to delay inspection for the next tank to be inspected, until the preceding tank is
back in service. The intent of this extension is to prevent more than one tank at a time being taken
out of service.
14. ASIG must perform API 653 Out-of-Service Inspections on Tank Nos. 3, 5, 14, 15,
16, 17, 18, and 19, and hire a third-party inspector to conduct an independent review of the results
of these inspections. ASIG must perform all repairs that are critical to the integrity of the tank and
submit evidence to the Director that each repair was completed properly prior to placing each tank
back into service. This must be completed by no later than March 31, 2017, contingent on the
extent of repairs required on each of the tanks. If a tank is taken out of service for an inspection,
PHMSA agrees that an extension will be granted to allow Respondent to delay inspection for the
next tank to be inspected, until the preceding tank is back in service. The intent of this extension
is to prevent more than one tank at a time being taken out of service.
15. Respondent must create and submit on a quarterly basis a Consent Order
Documentation Report (CODR). The intent is for the CODR to summarize all activities and
documentation associated with this Order. The CODR should identify any activities or
documentation for the period reflected in previous report activities; so the status of any item in the
Order is reflected in each report. When the Respondent has concluded all required items in this
Order, it will submit a final CODR to the Director. This will allow the Director to complete a
thorough review of all actions taken by the Respondent with regard to this Order prior to approving
the closure of this Order.
16. The Director may grant an extension of time for compliance with any of the terms
of the Order upon a written request, timely submitted, demonstrating good cause for an extension.
17. ASIG may appeal any decision of the Director to the Associate Administrator for
Pipeline Safety. Decisions of the Associate Administrator are final.
IV. Review and Approval Process
18. With respect to any submission under Part III (Corrective Measures) of this Consent
Agreement that requires the approval of the Region Director, the Director may: (a) approve, in
whole or in part, the submission, (b) approve the submission on specified conditions; (c)
disapprove, in whole or in part, the submission, or (d) any combination of the foregoing. If the
Region Director approves, approves in part, or approves with conditions, Respondent will take all
actions as approved by the Director, subject to Respondent’s right to invoke the dispute resolution
procedures in Section V with respect to any conditions the Director identifies. If the Director
disapproves all or any portion of the submission, the Director will provide Respondent with a
written notice of the deficiencies. Respondent will correct all deficiencies within the time specified
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by the Director and resubmit it for approval, subject to the dispute resolution procedures in Section
V.
V. Dispute Resolution
19. The Region Director and Respondent will informally attempt to resolve any
disputes arising under this Consent Agreement. If Respondent and the Region Director are unable
to informally resolve the dispute within 15 days of submittal of Respondent’s invoking dispute
resolution, Respondent may request in writing, within 10 days thereafter, a written determination
resolving the dispute from the Associate Administrator for Pipeline Safety providing all
information that Respondent believes is relevant to the dispute. If the request is submitted as
provided herein, the Associate Administrator will issue a final determination in writing. The
existence of a dispute and the PHMSA’s consideration of matters placed in dispute will not excuse,
toll, or suspend any term or timeframe for completion of any work to be performed under this
agreement during the pendency of the dispute resolution process except as reasonably agreed by
the Region Director or the Associate Administrator in writing.
VI. Enforcement
20. This Consent Agreement, as adopted by the Consent Order, is subject to all
enforcement authorities available to the PHMSA under 49 U.S.C. § 60101 et seq. and 49 C.F.R.
Part 190. All work plans and associated schedules set forth or referenced in Part III will be
automatically incorporated into this Consent Agreement and are enforceable in the same manner.
VII. Recordkeeping and Information Disclosure
21. Unless otherwise required by this Consent Agreement, Respondent agrees to
maintain the material records demonstrating compliance with all requirements of this Consent
Agreement for a period of at least 5 years following completion of all work to be performed. For
any reports, plans or other deliverables required to be submitted to the PHMSA pursuant to this
Consent Agreement, Respondent may assert a claim of business confidentiality or other protections
applicable to the release of information by the PHMSA, covering part or all of the information
required to be submitted to the PHMSA pursuant to this agreement in accordance with C.F.R. Part
7. Respondent must mark the claim of confidentiality in writing on each page, and include a
statement specifying the grounds for each claim of confidentiality. The PHMSA determines release
of any information submitted pursuant to this Consent Agreement in accordance with 49 C.F.R.
Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and/or the PHMSA policies, and
other applicable regulations and Executive Orders.
VIII. Effective Date
22. The “Effective Date” as used herein is the date on which the Order is issued by the
Associate Administrator incorporating the terms of this Agreement. Unless specified to the
contrary, all deadlines for actions required by this Consent Agreement run from the Effective Date
of this Order.
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IX. Modification
23. The terms of this Consent Agreement may be modified by mutual agreement of the
Parties. Such modifications must be in writing and signed by both parties.
X. Termination
24. This Consent Agreement terminates upon completion of all terms set forth in Part
III (Corrective Measures) as determined by the Director, Western Region. Respondent may request
written confirmation from the PHMSA when this Consent Agreement is terminated and the
Director, Western Region will provide such confirmation. To the extent ongoing monitoring is
required, PHMSA may terminate this Consent Agreement with respect to all other requirements
with the exception of such monitoring. Nothing in this Consent Agreement prevents Respondent
from completing any of the obligations earlier than the deadlines provided for in this Agreement.
XI. Ratification
25. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Consent Agreement and
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