# EXXONMOBIL PRODUCTION COMPANY, A DIVISION OF EXXON MOBIL CORPORATION — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.446(a), 195.588(b)(1).
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- **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.

Official case documents:

520176017_Final Order_09032019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Final%20Order_09032019.pdf

520176017_Final Order_09032019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Final%20Order_09032019_text.pdf

520176017_NOPV PCP PCO_05242017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_NOPV%20PCP%20PCO_05242017.pdf

520176017_NOPV PCP PCO_05242017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_NOPV%20PCP%20PCO_05242017_text.pdf

520176017_Operator Post-Hearing Statement_12082017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Operator%20Post-Hearing%20Statement_12082017.pdf

520176017_Operator Pre Hearing Submission_10302017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176017/520176017_Operator%20Pre%20Hearing%20Submission_10302017.pdf

520176017_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

520176017_Final Order_09032019_text.pdf

September 3, 2019
Mr. Darren W. Woods
Chairman and Chief Executive Officer
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, Texas 75039
Re: CPF No. 5-2017-6017
Dear Mr. Warren:
Enclosed please find the Final Order issued in the above-referenced case. It withdraws the
allegation of violation in the Notice of Probable Violation issued to Exxon Mobil Production
Company, a subsidiary of Exxon Mobil Corporation, on May 24, 2017. Accordingly, this case is
now closed. Service of the Final Order by certified mail is effective upon the date of mailing, as
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. Colin G. Harris, Faegre Baker Daniels, LLP, 1470 Walnut Street, Suite 300, Boulder,
Colorado, 80302
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 )
ExxonMobil Production Company, ) CPF No. 5-2017-6017
a subsidiary of Exxon Mobil Corporation, )
)
)
)
Respondent. )
__________________________________________)
FINAL ORDER
From May 16-19, 2016, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
conducted an on-site pipeline safety inspection of the facilities and records of ExxonMobil
Production Company’s (ExxonMobil or Respondent), Shute Creek carbon dioxide (CO2) facility
located near La Barge, Wyoming. ExxonMobil’s Shute Creek CO2 facility is one of the largest
CO2 capture plants in the world and has the capacity to capture approximately 365 million cubic
feet of CO2 per day from gas streams.1
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated May 24, 2017, a Notice of Probable Violation, Proposed Civil
Penalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to 49
C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that
ExxonMobil violated 49 C.F.R. § 195.446(a) and proposed assessing a civil penalty of $43,200
for the alleged violation. The Notice also proposed ordering Respondent to take certain
measures to correct the alleged violation. The warning item required no further action but
warned the operator to correct the probable violation or be subject to future enforcement action.
ExxonMobil responded to the Notice by letter dated June 30, 2017 (Response). Respondent
contested the allegation of violation, proposed civil penalty and compliance order, and requested
a hearing. A hearing was subsequently held on November 8, 2017, in Lakewood, Colorado, with
an attorney from the Office of Chief Counsel, PHMSA, presiding. At the hearing, Respondent
was represented by counsel.
1 ExxonMobil News and Updates, ExxonMobil Expands World’s Largest Carbon Capture Plant in Wyoming (Dec.
10, 2010), available at https://news.exxonmobil.com/press-release/exxonmobil-expands-worlds-largest-carbon-
capture-plant-wyoming (Last accessed June 5, 2019).



CPF 5-2017-6017
Page 2
WITHDRAWAL OF VIOLATION
At the hearing, ExxonMobil contested the allegation in the Notice that it violated 49 C.F.R. Part
195, as follows:
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.446(a), which states in
relevant part:
§ 195.446 Control room management.
(a) General. This section applies to each operator of a pipeline facility
with a controller working in a control room who monitors and controls all
or part of a pipeline facility through a SCADA system. Each operator must
have and follow written control room management procedures that
implement the requirements of this section. The procedures required by this
section must be integrated, as appropriate, with the operator's written
procedures required by §195.402. An operator must develop the procedures
no later than August 1, 2011, and must implement the procedures according
to the following schedule. The procedures required by paragraphs (b),
(c)(5), (d)(2) and (d)(3), (f) and (g) of this section must be implemented no
later than October 1, 2011. The procedures required by paragraphs (c)(1)
through (4), (d)(1), (d)(4), and (e) must be implemented no later than August
1, 2012. The training procedures required by paragraph (h) must be
implemented no later than August 1, 2012, except that any training required
by another paragraph of this section must be implemented no later than the
deadline for that paragraph.
The Notice alleged that Respondent violated 49 C.F.R. § 195.446(a) by failing to have and
follow written control room management procedures that implement the requirements of
§ 195.446. Specifically, the Notice alleged that ExxonMobil maintains an active control room at
the Shute Creek gas plant and failed to have the required control room management procedures
pursuant to § 195.446(a).
In its Recommendation, the Region stated that this Item should be withdrawn, along with the
associated civil penalty and compliance order. Therefore, I withdraw this Item without reaching
any of the jurisdictional or factual arguments raised by either the Respondent or the Region.
Accordingly, for the reasons discussed above, I withdraw Item 2.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.2 In determining the amount of a civil penalty under 49 U.S.C.
2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223; Revisions to Civil Penalty Amounts,
83 Fed. Reg. 60732, 60744 (Nov. 27, 2018).



CPF 5-2017-6017
Page 3
§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that
the penalty may have on its ability to continue doing business; and the good faith of Respondent
in attempting to comply with the pipeline safety regulations. In addition, I may consider the
economic benefit gained from the violation without any reduction because of subsequent
damages, and such other matters as justice may require. The Notice proposed a total civil
penalty of $43,200 for the violation cited above.
Item 2: The Notice proposed a civil penalty of $43,200 for Respondent’s violation of 49 C.F.R.
§ 195.446(a), for failing to have and follow written control room management procedures
required by § 195.446. For the reasons discussed above, this item was withdrawn. Accordingly,
I withdraw the civil penalty of $43,200.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 2 for violation of 49 C.F.R.
§ 195.446(a). As stated above, I am withdrawing the proposed Compliance Order.
WARNING ITEM
With respect to Item 1, the Notice alleged probable violations of Part 195 but did not propose a
civil penalty or compliance order for this item. Therefore, this is a warning item. The warning
was for:
49 C.F.R. § 195.588(b)(1) (Item 1) ─ Respondent’s alleged failure to follow the
requirements for performing External Corrosion Direct Assessment. Specifically,
ExxonMobil failed to follow the requirements of NACE Standard SP-0502-2010,
which is incorporated by reference in 49 CFR § 195.3(f)(2).
If OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject
to future enforcement action.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
September 3, 2019
___________________________________ _________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

520176017_NOPV PCP PCO_05242017_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
May 24, 2017
Mr. Thomas R. Walters
President
ExxonMobil Production Company
A Division of ExxonMobil Corporation
P.O Box 4358
Houston, Texas 77210
CPF 5-2017-6017
Dear Mr. Walters:
On May 16 through 19, 2016, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety, pursuant to Chapter 601 of 49 United
States Code, inspected ExxonMobil Production Company’s (ExxonMobil) CO2 pipeline
facility in the vicinity of La Barge, Wyoming.
As a result of the inspection, it is alleged that ExxonMobil has committed probable violations
of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The
items inspected and the probable violations are:
1. §195.588 What standards apply to direct assessment?
(b) The requirements for performing external corrosion direct assessment are as
follows:
(1) General. You must follow the requirements of NACE SP0502 (incorporated
by reference, see § 195.3). Also, you must develop and implement an - External



Corrosion Direct Assessment (ECDA) plan that includes procedures addressing
pre-assessment, indirect examination, direct examination, and post-assessment.
NACE SP0502
5.1.3 A minimum of one dig is required regardless of the results of the indirect
inspection and preassessment steps. Guidelines for determining location and
minimum of excavations and direct examinations are given in Paragraph 5.3.
6.7 Assessment of ECDA Effectiveness
6.7.2 At least one additional direct examination at a randomly selected location
shall be performed to provide additional confirmation that the ECDA process
has been successful.
6.7.2.1 For initial ECDA applications, at least two additional direct examinations
are required for process validation. The direct examinations shall be performed
at randomly selected locations, one of which contains scheduled indication (or
monitored indication if no scheduled indications exist) and one in an area where
no indication was detected.
ExxonMobil failed to follow the requirements for performing External Corrosion Direct
Assessment (ECDA). Specifically, ExxonMobil failed to follow the requirements of NACE
Standard SP-0502-2010 (NACE Standard), which is incorporated by reference in 49 CFR
195.3(f)(2). NACE Standard Section 6.7.2.1 provides that for initial ECDA application, at
least two additional direct examinations are required for process validation. During the
inspection, ExxonMobil presented only two direct examination locations for its initial
assessment. ExxonMobil is required to perform at least four direct examinations for its initial
assessment. Accordingly, ExxonMobil violated §195.588(b)(1) by failing to follow the
requirements of NACE SP0502 when performing ECDA.
2. § 195.446 Control room management.
(a) General. This section applies to each operator of a pipeline facility with a
controller working in a control room who monitors and controls all or part of a
pipeline facility through a SCADA system. Each operator must have and follow
written control room management procedures that implement the requirements
of this section. The procedures required by this section must be integrated, as
appropriate, with the operator's written procedures required by §195.402. An
operator must develop the procedures no later than August 1, 2011, and must
implement the procedures according to the following schedule. The procedures
required by paragraphs (b), (c)(5), (d)(2) and (d)(3), (f) and (g) of this section
must be implemented no later than October 1, 2011. The procedures required by
paragraphs (c)(1) through (4), (d)(1), (d)(4), and (e) must be implemented no
2



later than August 1, 2012. The training procedures required by paragraph (h)
must be implemented no later than August 1, 2012, except that any training
required by another paragraph of this section must be implemented no later than
the deadline for that paragraph.
ExxonMobil failed to comply with §195.466(a) by not having and following written control
room management procedures that implement the requirements of §195.446. ExxonMobil has
an active control room at the Shute Creek gas plant that controls and monitors its 160 miles
CO2 pipeline, which starts at the Shute Creek compressor station about 2 miles east of the
Shute Creek gas plant. As such, ExxonMobil is required to have control room management
procedures pursuant to §195.446(a) in place for its Shute Creek gas plant.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a
related series of violations. For violations occurring between January 4, 2012 to August 1,
2016, the maximum penalty may not exceed $200,000 per violation per day, with a maximum
penalty not to exceed $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 related series of violations.
Item number PENALTY
Item 2 $43,200
Warning Items
With respect to Item 1, 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 promptly correct this item.
Failure to do so may result in additional enforcement action.
Proposed Compliance Order
With respect to Item 2, pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to
ExxonMobil. Please refer to the Proposed Compliance Order, which is enclosed and made a
part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline
Operators in Compliance Proceedings. Please refer to this document and note the response
options. All material you submit in response to this enforcement action may be made publicly
available. If you believe that any portion of your responsive material qualifies for3



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). If you do not respond
within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the
allegations in 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 Final Order.
In your correspondence on this matter, please refer to CPF 5-2017-6017 and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Compliance Registry
PHP-500 G. Ogirima (#153157)
4



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Exxon Mobil a Compliance Order
incorporating the following remedial requirements to ensure the compliance of ExxonMobil
with the pipeline safety regulations:
1. 2. 3. In regard to Item 2 of the Notice, Exxon Mobil must comply with 49 C.F.R.
§195.446(a)(1) by having and following written control room management
procedures that implement the requirement of 195.446.
ExxonMobil must respond within 30-days of receipt of this Notice
It is requested (not mandated) that ExxonMobil maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and
submit the total to Chris Hoidal, Director, Western Region, Pipeline and
Hazardous Materials Safety Administration. 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.
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