# ALON BAKERSFIELD PROPERTY, INC. — Warning Letter

- **operation:** document
- **citation:** CPF 52021027WL
- **title:** ALON BAKERSFIELD PROPERTY, INC. — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-06-11
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 191.22(c)(2)(iii).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-52021027wl.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-52021027wl.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-52021027wl
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/52021027WL
**body:**

Warning Letter involving ALON BAKERSFIELD PROPERTY, INC.. PHMSA's enforcement data identifies the cited regulation as 191.22(c)(2)(iii). The case was opened on 2021-06-11 and is reported as closed as of 2021-06-11. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

52021027WL_Warning Letter_06112021_(20-172629).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021027WL/52021027WL_Warning%20Letter_06112021_(20-172629).pdf

52021027WL_Warning Letter_06112021_(20-172629)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021027WL/52021027WL_Warning%20Letter_06112021_(20-172629)_text.pdf

52021027WL_Warning Letter_06112021_(20-172629)_text.pdf

WARNING LETTER
VIA E-MAIL TO MR. RICHARD PALMER
June 11, 2021
Mr. Richard Palmer
CEO - Global Clean Energy Holdings
Alon Bakersfield Property, Inc.
2792 Skypark Drive, #105
Torrance, CA 90505
CPF 5-2021-027-WL
Dear Mr. Palmer:
On May 11, 2021, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected
your pipeline system in Bakersfield, California. The inspection was done virtually due to the idle
status of the pipeline since 2014. Only record questions were reviewed for CP, patrolling,
general valve maintenance, and required notifications.
As a result of the inspection, it is alleged that you have committed probable violation(s) of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violation(s) are:
1. § 191.22 - National Registry of Pipeline and LNG operators.
(c) Changes. Each operator of a gas pipeline, gas pipeline facility, underground
natural gas storage facility, LNG plant, or LNG facility must notify PHMSA
electronically through the National Registry of Pipeline, Underground Natural Gas
Storage Facility, and LNG Operators at http://opsweb.phmsa.dot.gov of certain
events.
(2) An operator must notify PHMSA of any of the following events not later than 60
days after the event occurs:
(iii) A change in the entity (e.g., company, municipality) responsible for an existing
pipeline, pipeline segment, pipeline facility, underground natural gas storage
facility, or LNG facility;
null



On May 7, 2020, Delek US Holdings, Inc. sold Alon Bakersfield Property, Inc. to Bakersfield
Renewable Fuels, LLC, an affiliate of GCEH Global Clean Energy Holdings, Inc. The required
notification for this change of ownership was to be made within 60 days of May 7, 2020;
however, the notification was not completed until March 12, 2021.
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a
related series of violations. For violation occurring on or after July 31, 2019 and before January
11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation
persists, up to a maximum of $2,186,465 for a related series of violations. For violation
occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may
not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.
For violation occurring on or after November 2, 2015 and before November 27, 2018, the
maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not
to exceed $2,090,022.
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 identified in this letter. Failure to do so will result in
Alon Bakersfield Property, Inc. 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 5-2021-027-WL. 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,
Dustin Hubbard
Director, Western Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 J. Gilliam (#20-172629)
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