# HILCORP ALASKA, LLC — Warning Letter

- **operation:** document
- **citation:** CPF 520167003W
- **title:** HILCORP ALASKA, LLC — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2016-03-17
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.49.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-520167003w.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520167003w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520167003w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520167003W
**body:**

Warning Letter involving HILCORP ALASKA, LLC. PHMSA's enforcement data identifies the cited regulation as 195.49. The case was opened on 2016-03-17 and is reported as closed as of 2016-03-17. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520167003W_Warning Letter_03172016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520167003W/520167003W_Warning%20Letter_03172016.pdf

520167003W_Warning Letter_03172016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520167003W/520167003W_Warning%20Letter_03172016_text.pdf

520167003W_Warning Letter_03172016_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
March 17, 2016
Mr. Greg Lalicker
President
Hilcorp Alaska, LLC
1201 Louisiana Street, Ste. 1400
Houston, Texas 77002
CPF 5-2016-7003W
Dear Mr. Lalicker:
Between July 20, 2015 and November 6, 2015, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States
Code, inspected your Northstar Sales Oil Pipeline near Prudhoe Bay, Alaska. The inspection
included review of required regulatory records and procedures associated with that pipeline in
your Anchorage, Alaska office.
As a result of the inspection, it appears that you have committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations Part 195. The items
inspected and the probable violation is:
1. §195.49 Annual report.
Each operator must annually complete and submit DOT Form PHMSA F 7000-
1.1 for each type of hazardous liquid pipeline facility operated at the end of the
previous year. An operator must submit the annual report by June 15 each year,
except that for the 2010 reporting year the report must be submitted by August
15, 2011. A separate report is required for crude oil, HVL (including anhydrous
ammonia), petroleum products, carbon dioxide pipelines, and fuel grade ethanol
pipelines. For each state a pipeline traverses, an operator must separately
complete those sections on the form requiring information to be reported for
each state.



Hilcorp Alaska, LLC (Hilcorp) did not accurately complete its 2014 Annual Report for
hazardous liquid pipeline systems, Form PHMSA F 7000-1.1. Form PHMSA F 7000-1.1
requires submission of interstate pipeline data in several parts of the form. At the end of the
2014 calendar year, Hilcorp operated several interstate pipelines, including the Northstar Sales
Oil Pipeline. At the time of the inspection, Hilcorp’s initial submission of the 2014 Annual
Report for hazardous liquid pipeline systems, dated June 12, 2015, did not contain any
interstate pipeline data, including onshore and offshore interstate pipeline facilities.
It should be noted that Hilcorp’s January 16, 2015, Operator Registry Notification is similarly
inaccurate because the notification did not identify interstate pipeline facilities, including
onshore and offshore interstate pipeline facilities, and does not contain a Type C notification.
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a
related series of violations. For violations occurring prior to January 4, 2012, the maximum
penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed
$1,000,000 for a related series of violations. We have reviewed the circumstances and
supporting documents involved in this case, and have decided not to conduct additional
enforcement action or penalty assessment proceedings at this time. We advise you to correct
the item(s) identified in this letter. Failure to do so will result in Hilcorp being subject to
additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer
to CPF 5-2016-7003W. 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).
Sincerely,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Compliance Registry
PHP-500 Johnson (#150294)
Mr. Richard Novcaski, Vice President and Alaska Operations Manager for Harvest
Alaska, LLC
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