{"operation":"document","citation":"CPF 520176017","title":"EXXONMOBIL PRODUCTION COMPANY, A DIVISION OF EXXON MOBIL CORPORATION — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-05-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.446(a), 195.588(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520176017.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520176017.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520176017","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520176017","body":"Notice of Probable Violation involving EXXONMOBIL PRODUCTION COMPANY, A DIVISION OF EXXON MOBIL CORPORATION. PHMSA's enforcement data identifies the cited regulations as 195.446(a),  195.588(b)(1). The case was opened on 2017-05-24 and is reported as closed as of 2019-09-03. Proposed civil penalty: $43,200. Assessed civil penalty: $0. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520176017_Final Order_09032019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Final%20Order_09032019.pdf\n\n520176017_Final Order_09032019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Final%20Order_09032019_text.pdf\n\n520176017_NOPV PCP PCO_05242017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_NOPV%20PCP%20PCO_05242017.pdf\n\n520176017_NOPV PCP PCO_05242017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_NOPV%20PCP%20PCO_05242017_text.pdf\n\n520176017_Operator Post-Hearing Statement_12082017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Operator%20Post-Hearing%20Statement_12082017.pdf\n\n520176017_Operator Pre Hearing Submission_10302017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Operator%20Pre%20Hearing%20Submission_10302017.pdf\n\n520176017_Operator Response to Notice and Request for Hearing_06302017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing_06302017.pdf\n\n520176017_Final Order_09032019_text.pdf\n\nSeptember 3, 2019\nMr. Darren W. Woods\nChairman and Chief Executive Officer\nExxon Mobil Corporation\n5959 Las Colinas Boulevard\nIrving, Texas 75039\nRe: CPF No. 5-2017-6017\nDear Mr. Warren:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws the\nallegation of violation in the Notice of Probable Violation issued to Exxon Mobil Production\nCompany, a subsidiary of Exxon Mobil Corporation, on May 24, 2017. Accordingly, this case is\nnow closed. Service of the Final Order by certified mail is effective upon the date of mailing, as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Colin G. Harris, Faegre Baker Daniels, LLP, 1470 Walnut Street, Suite 300, Boulder,\nColorado, 80302\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 )\nExxonMobil Production Company, ) CPF No. 5-2017-6017\na subsidiary of Exxon Mobil Corporation, )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nFrom May 16-19, 2016, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of ExxonMobil\nProduction Company’s (ExxonMobil or Respondent), Shute Creek carbon dioxide (CO2) facility\nlocated near La Barge, Wyoming. ExxonMobil’s Shute Creek CO2 facility is one of the largest\nCO2 capture plants in the world and has the capacity to capture approximately 365 million cubic\nfeet of CO2 per day from gas streams.1\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated May 24, 2017, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to 49\nC.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that\nExxonMobil violated 49 C.F.R. § 195.446(a) and proposed assessing a civil penalty of $43,200\nfor the alleged violation. The Notice also proposed ordering Respondent to take certain\nmeasures to correct the alleged violation. The warning item required no further action but\nwarned the operator to correct the probable violation or be subject to future enforcement action.\nExxonMobil responded to the Notice by letter dated June 30, 2017 (Response). Respondent\ncontested the allegation of violation, proposed civil penalty and compliance order, and requested\na hearing. A hearing was subsequently held on November 8, 2017, in Lakewood, Colorado, with\nan attorney from the Office of Chief Counsel, PHMSA, presiding. At the hearing, Respondent\nwas represented by counsel.\n1 ExxonMobil News and Updates, ExxonMobil Expands World’s Largest Carbon Capture Plant in Wyoming (Dec.\n10, 2010), available at https://news.exxonmobil.com/press-release/exxonmobil-expands-worlds-largest-carbon-\ncapture-plant-wyoming (Last accessed June 5, 2019).\n\n\n\nCPF 5-2017-6017\nPage 2\nWITHDRAWAL OF VIOLATION\nAt the hearing, ExxonMobil contested the allegation in the Notice that it violated 49 C.F.R. Part\n195, as follows:\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.446(a), which states in\nrelevant part:\n§ 195.446 Control room management.\n(a) General. This section applies to each operator of a pipeline facility\nwith a controller working in a control room who monitors and controls all\nor part of a pipeline facility through a SCADA system. Each operator must\nhave and follow written control room management procedures that\nimplement the requirements of this section. The procedures required by this\nsection must be integrated, as appropriate, with the operator's written\nprocedures required by §195.402. An operator must develop the procedures\nno later than August 1, 2011, and must implement the procedures according\nto the following schedule. The procedures required by paragraphs (b),\n(c)(5), (d)(2) and (d)(3), (f) and (g) of this section must be implemented no\nlater than October 1, 2011. The procedures required by paragraphs (c)(1)\nthrough (4), (d)(1), (d)(4), and (e) must be implemented no later than August\n1, 2012. The training procedures required by paragraph (h) must be\nimplemented no later than August 1, 2012, except that any training required\nby another paragraph of this section must be implemented no later than the\ndeadline for that paragraph.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.446(a) by failing to have and\nfollow written control room management procedures that implement the requirements of\n§ 195.446. Specifically, the Notice alleged that ExxonMobil maintains an active control room at\nthe Shute Creek gas plant and failed to have the required control room management procedures\npursuant to § 195.446(a).\nIn its Recommendation, the Region stated that this Item should be withdrawn, along with the\nassociated civil penalty and compliance order. Therefore, I withdraw this Item without reaching\nany of the jurisdictional or factual arguments raised by either the Respondent or the Region.\nAccordingly, for the reasons discussed above, I withdraw Item 2.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.2 In determining the amount of a civil penalty under 49 U.S.C.\n2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,\n83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).\n\n\n\nCPF 5-2017-6017\nPage 3\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that\nthe penalty may have on its ability to continue doing business; and the good faith of Respondent\nin attempting to comply with the pipeline safety regulations. In addition, I may consider the\neconomic benefit gained from the violation without any reduction because of subsequent\ndamages, and such other matters as justice may require. The Notice proposed a total civil\npenalty of $43,200 for the violation cited above.\nItem 2: The Notice proposed a civil penalty of $43,200 for Respondent’s violation of 49 C.F.R.\n§ 195.446(a), for failing to have and follow written control room management procedures\nrequired by § 195.446. For the reasons discussed above, this item was withdrawn. Accordingly,\nI withdraw the civil penalty of $43,200.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 2 for violation of 49 C.F.R.\n§ 195.446(a). As stated above, I am withdrawing the proposed Compliance Order.\nWARNING ITEM\nWith respect to Item 1, the Notice alleged probable violations of Part 195 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is a warning item. The warning\nwas for:\n49 C.F.R. § 195.588(b)(1) (Item 1) ─ Respondent’s alleged failure to follow the\nrequirements for performing External Corrosion Direct Assessment. Specifically,\nExxonMobil failed to follow the requirements of NACE Standard SP-0502-2010,\nwhich is incorporated by reference in 49 CFR § 195.3(f)(2).\nIf OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject\nto future enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nSeptember 3, 2019\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n520176017_NOPV PCP PCO_05242017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 24, 2017\nMr. Thomas R. Walters\nPresident\nExxonMobil Production Company\nA Division of ExxonMobil Corporation\nP.O Box 4358\nHouston, Texas 77210\nCPF 5-2017-6017\nDear Mr. Walters:\nOn May 16 through 19, 2016, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety, pursuant to Chapter 601 of 49 United\nStates Code, inspected ExxonMobil Production Company’s (ExxonMobil) CO2 pipeline\nfacility in the vicinity of La Barge, Wyoming.\nAs a result of the inspection, it is alleged that ExxonMobil has committed probable violations\nof the Pipeline Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The\nitems inspected and the probable violations are:\n1. §195.588 What standards apply to direct assessment?\n(b) The requirements for performing external corrosion direct assessment are as\nfollows:\n(1) General. You must follow the requirements of NACE SP0502 (incorporated\nby reference, see § 195.3). Also, you must develop and implement an - External\n\n\n\nCorrosion Direct Assessment (ECDA) plan that includes procedures addressing\npre-assessment, indirect examination, direct examination, and post-assessment.\nNACE SP0502\n5.1.3 A minimum of one dig is required regardless of the results of the indirect\ninspection and preassessment steps. Guidelines for determining location and\nminimum of excavations and direct examinations are given in Paragraph 5.3.\n6.7 Assessment of ECDA Effectiveness\n6.7.2 At least one additional direct examination at a randomly selected location\nshall be performed to provide additional confirmation that the ECDA process\nhas been successful.\n6.7.2.1 For initial ECDA applications, at least two additional direct examinations\nare required for process validation. The direct examinations shall be performed\nat randomly selected locations, one of which contains scheduled indication (or\nmonitored indication if no scheduled indications exist) and one in an area where\nno indication was detected.\nExxonMobil failed to follow the requirements for performing External Corrosion Direct\nAssessment (ECDA). Specifically, ExxonMobil failed to follow the requirements of NACE\nStandard SP-0502-2010 (NACE Standard), which is incorporated by reference in 49 CFR\n195.3(f)(2). NACE Standard Section 6.7.2.1 provides that for initial ECDA application, at\nleast two additional direct examinations are required for process validation. During the\ninspection, ExxonMobil presented only two direct examination locations for its initial\nassessment. ExxonMobil is required to perform at least four direct examinations for its initial\nassessment. Accordingly, ExxonMobil violated §195.588(b)(1) by failing to follow the\nrequirements of NACE SP0502 when performing ECDA.\n2. § 195.446 Control room management.\n(a) General. This section applies to each operator of a pipeline facility with a\ncontroller working in a control room who monitors and controls all or part of a\npipeline facility through a SCADA system. Each operator must have and follow\nwritten control room management procedures that implement the requirements\nof this section. The procedures required by this section must be integrated, as\nappropriate, with the operator's written procedures required by §195.402. An\noperator must develop the procedures no later than August 1, 2011, and must\nimplement the procedures according to the following schedule. The procedures\nrequired by paragraphs (b), (c)(5), (d)(2) and (d)(3), (f) and (g) of this section\nmust be implemented no later than October 1, 2011. The procedures required by\nparagraphs (c)(1) through (4), (d)(1), (d)(4), and (e) must be implemented no\n2\n\n\n\nlater than August 1, 2012. The training procedures required by paragraph (h)\nmust be implemented no later than August 1, 2012, except that any training\nrequired by another paragraph of this section must be implemented no later than\nthe deadline for that paragraph.\nExxonMobil failed to comply with §195.466(a) by not having and following written control\nroom management procedures that implement the requirements of §195.446. ExxonMobil has\nan active control room at the Shute Creek gas plant that controls and monitors its 160 miles\nCO2 pipeline, which starts at the Shute Creek compressor station about 2 miles east of the\nShute Creek gas plant. As such, ExxonMobil is required to have control room management\nprocedures pursuant to §195.446(a) in place for its Shute Creek gas plant.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a\nrelated series of violations. For violations occurring between January 4, 2012 to August 1,\n2016, the maximum penalty may not exceed $200,000 per violation per day, with a maximum\npenalty not to exceed $2,000,000 for a related series of violations. For violations occurring\nprior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per\nday, with a maximum penalty not to exceed $1,000,000 for related series of violations.\nItem number PENALTY\nItem 2 $43,200\nWarning Items\nWith respect to Item 1, we have reviewed the circumstances and supporting documents\ninvolved in this case and have decided not to conduct additional enforcement action or\npenalty assessment proceedings at this time. We advise you to promptly correct this item.\nFailure to do so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to Item 2, pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to\nExxonMobil. Please refer to the Proposed Compliance Order, which is enclosed and made a\npart of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the response\noptions. All material you submit in response to this enforcement action may be made publicly\navailable. If you believe that any portion of your responsive material qualifies for3\n\n\n\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\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond\nwithin 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to\nfind facts as alleged in this Notice without further notice to you and to issue a Final Order.\nIn your correspondence on this matter, please refer to CPF 5-2017-6017 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 G. Ogirima (#153157)\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Exxon Mobil a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of ExxonMobil\nwith the pipeline safety regulations:\n1. 2. 3. In regard to Item 2 of the Notice, Exxon Mobil must comply with 49 C.F.R.\n§195.446(a)(1) by having and following written control room management\nprocedures that implement the requirement of 195.446.\nExxonMobil must respond within 30-days of receipt of this Notice\nIt is requested (not mandated) that ExxonMobil maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Chris Hoidal, Director, Western Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n5","truncated":false,"body_characters":18203}