{"operation":"document","citation":"CPF 52022057NOPV","title":"SFPP, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-12-01","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.56(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022057nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022057nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022057nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52022057NOPV","body":"Notice of Probable Violation involving SFPP, LP. PHMSA's enforcement data identifies the cited regulation as 195.56(a). The case was opened on 2022-12-01 and is reported as closed as of 2023-11-10. Proposed civil penalty: $36,200. Assessed civil penalty: $36,200. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52022057NOPV_Final Order_10312023_(22-253086).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022057NOPV/52022057NOPV_Final%20Order_10312023_(22-253086).pdf\n\n52022057NOPV_Final Order_10312023_(22-253086)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022057NOPV/52022057NOPV_Final%20Order_10312023_(22-253086)_text.pdf\n\n52022057NOPV_Operator Response to Notice_12202022_(22-253086).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022057NOPV/52022057NOPV_Operator%20Response%20to%20Notice_12202022_(22-253086).pdf\n\n52022057NOPV_PCP_12012022_(22-253086).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022057NOPV/52022057NOPV_PCP_12012022_(22-253086).pdf\n\n52022057NOPV_PCP_12012022_(22-253086)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022057NOPV/52022057NOPV_PCP_12012022_(22-253086)_text.pdf\n\n52022057NOPV_Final Order_10312023_(22-253086)_text.pdf\n\nOctober 31, 2023\nVIA ELECTRONIC MAIL TO: Dax.Sanders@kindermorgan.com\nMr. Dax Sanders\nPresident, Products Pipeline\nKinder Morgan, Inc.\n1001 Louisiana St., Suite 1000\nHouston, Texas 77002\nRe: CPF No. 5-2022-057-NOPV\nDear Mr. Sanders:\nEnclosed please find the Final Order issued in the above-referenced case to SFPP, L.P., a subsidiary\nof Kinder Morgan, Inc. It makes a finding of violation and assesses a civil penalty of $36,200. The\npenalty payment terms are set forth in the Final Order. This enforcement action closes automatically\nupon receipt of payment. Service of the Final Order by e-mail is effective upon the date of\ntransmission and acknowledgement of receipt as provided 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 (Final Order)\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Wayne Simmons, Chief Operating Officer, Products Pipelines, Kinder Morgan, Inc.,\nWayne_Simmons@kindermorgan.com\nMr. Thomas Otjen, Vice President, Pipeline Integrity, Kinder Morgan, Inc.,\nThomas_Otjen@kindermorgan.com\nMr. Jaime Hernandez, Director, Engineering: Codes and Standards, Kinder Morgan, Inc.,\nJaime_Hernandez@kindermorgan.com\nCONFIRMATION OF 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 )\n)\n)\nSFPP, L.P., )\na subsidiary of Kinder Morgan, Inc., )\nRespondent. )\n____________________________________)\n) CPF No. 5-2022-057-NOPV\nFINAL ORDER\nOn August 26, 2022, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an\ninspection of a safety-related condition (SRC) report that was submitted to PHMSA by SFPP, L.P.\n(SFPP or Respondent), a subsidiary of Kinder Morgan, Inc. SFPP operates a hazardous liquid\n(petroleum products) pipeline system in Arizona, California, Nevada, New Mexico, Oregon, and\nTexas.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent,\nby letter dated December 1, 2022, a Notice of Probable Violation (Notice). In accordance with 49\nC.F.R. § 190.207, the Notice proposed finding that SFPP committed one violation of 49 C.F.R. Part\n195 and proposed assessing a civil penalty of $36,200.\nKinder Morgan, Inc., on behalf of SFPP, responded to the Notice by letter dated December 20, 2022\n(Response). The Response did not contest the alleged violation, but requested a reduction of the\nproposed civil penalty.\nSFPP did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.56(a), which states:\n§ 195.56 Filing safety-related condition reports.\n(a) Each report of a safety-related condition under § 195.55(a) must be\nfiled (received by OPS) within five working days (not including Saturday,\nSunday, or Federal Holidays) after the day a representative of the operator\nfirst determines that the condition exists, but not later than 10 working days\n\n\n\nafter the day a representative of the operator discovers the condition.\nSeparate conditions may be described in a single report if they are closely\nrelated. Reports may be transmitted by electronic mail to\nInformationResourcesManager@dot.gov, or by facsimile at (202) 366-7128.\nThe Notice alleged SFPP failed to submit an SRC report within five working days after the\nexistence of a condition was determined, and no later than 10 working days after the condition was\ndiscovered. Specifically, SFPP indicated on its SRC report the safety-related condition was\ndiscovered on July 27, 2022, and the relevant determination date was August 3, 2022. Therefore,\nthe SRC report should have been filed no later than August 10, 2022. However, the SRC report was\nnot filed until August 24, 2022.\nRespondent did not contest the allegation in the Notice, but requested a reduction in the proposed\ncivil penalty. Accordingly, after considering all of the evidence, I find that Respondent violated 49\nC.F.R. § 195.56(a) by failing to submit an SRC report within five working days after the existence\nof a condition was determined, and no later than 10 working days after the condition was\ndiscovered.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\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.1\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require.\nItem 1: The Notice proposed a civil penalty of $36,200 for the violation of 49 C.F.R.\n§ 195.56(a), for failing to submit a SRC report within five working days after the existence of a\ncondition was determined, and no later than 10 working days after the condition was discovered.\nIn the Response, SFPP requested a reduction of the proposed civil penalty. SFPP stated it reviewed\nits internal processes and procedures with the appropriate personnel after the events described in the\nNotice, and stated that the “delay in submitting the SRCR report did not delay any inspection of this\nnoted feature. At no time was pipeline safety compromised.” SFPP requested that PHMSA treat the\n1 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223 for adjusted amounts.\n\n\n\nviolation of § 195.56(a) as a “records” violation in its calculation of the civil penalty rather than an\n“activities” violation.\n2\nIn reviewing the record in this matter, I note the Pipeline Safety Violation Report (Violation Report;\nsee Part E4-Nature), correctly reflects the violation of § 195.56(a) as an “activities” violation.3 The\nViolation Report addresses examples of “activities” violations, which includes violations involving\nmaking required notifications and reports as occurred here.4 SFPP failed to affirmatively make a\nrequired notification to PHMSA within the prescribed timelines. This violation—a failure to timely\nnotify PHMSA of a safety-related condition by submitting an SRC report—clearly falls within the\n“activities” category.\nFurther, the Violation Report (Part E6-Gravity) already accounts for Respondent’s argument that\nthe delayed filing did not delay any inspection or compromise safety. The proposed civil penalty in\nthis instance reflected that “pipeline safety was minimally affected”. There is no lower Gravity\nvalue to assign in calculating a civil penalty via PHMSA’s civil penalty worksheet than “pipeline\nsafety was minimally affected”.\n5 Therefore, no reduction in the proposed civil penalty is warranted.\nBased upon the foregoing, I assess the proposed civil penalty amount of $36,200 for the violation of\n49 C.F.R. § 195.56(a).\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address. The written petition must be received no later than\n20 days after receipt of the Final Order by Respondent. Any petition submitted must contain a\nstatement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing of a\npetition automatically stays the payment of any civil penalty assessed. The other terms of the\norder, including any corrective actions, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nOctober 31, 2023\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n2 See 81 Fed. Reg. 71,566 (Oct. 17, 2016); available online at: https://www.govinfo.gov/content/pkg/FR-2016-10-\n17/pdf/2016-25000.pdf.\n3 Violation Report, at 6 (on file with PHMSA).\n4 See also 81 Fed. Reg. at 71,567\n5 Id.","truncated":false,"body_characters":10308}