# BETA OFFSHORE — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 52023011NOPV
- **title:** BETA OFFSHORE — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** current
- **official:** true
- **published on:** 2023-04-06
- **effective on:** Not available
- **summary:** OPEN notice of probable violation citing 195.401(a), 195.402(a), 195.446(a), 195.446(b)(5), 195.446(d)(2), 195.446(d)(3), 195.446(h), 195.505(b), 195.52(a)(4), 195.52(a)(5), 195.54(a).
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**body:**

Notice of Probable Violation involving BETA OFFSHORE. PHMSA's enforcement data identifies the cited regulations as 195.401(a),  195.402(a),  195.446(a),  195.446(b)(5),  195.446(d)(2),  195.446(d)(3),  195.446(h),  195.505(b),  195.52(a)(4),  195.52(a)(5),  195.54(a). The case was opened on 2023-04-06 and is reported as open. Proposed civil penalty: $3,389,734. Assessed civil penalty: $2,000,000. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

52023011NOPV_Consent Agreement and Order_12162025_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_Consent%20Agreement%20and%20Order_12162025_(21-225379).pdf

52023011NOPV_Consent Agreement and Order_12162025_(21-225379)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_Consent%20Agreement%20and%20Order_12162025_(21-225379)_text.pdf

52023011NOPV_Operator Post-Hearing Submission_06072024_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_Operator%20Post-Hearing%20Submission_06072024_(21-225379).pdf

52023011NOPV_Operator Pre-Hearing Submission (Part 1)_04292024_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_Operator%20Pre-Hearing%20Submission%20(Part%201)_04292024_(21-225379).pdf

52023011NOPV_Operator Pre-Hearing Submission (Part 2) _04292024_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_Operator%20Pre-Hearing%20Submission%20(Part%202)%20_04292024_(21-225379).pdf

52023011NOPV_Operator RtN and RfH and Request Inf Conf_05122023_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_Operator%20RtN%20and%20RfH%20and%20Request%20Inf%20Conf_05122023_(21-225379).pdf

52023011NOPV_PCP PCO_04062023_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_PCP%20PCO_04062023_(21-225379).pdf

52023011NOPV_PCP PCO_04062023_(21-225379)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_PCP%20PCO_04062023_(21-225379)_text.pdf

52023011NOPV_PHC Hearing Rescheduled_02202024_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_PHC%20Hearing%20Rescheduled_02202024_(21-225379).pdf

52023011NOPV_PHC Hearing Rescheduled_02202024_(21-225379)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_PHC%20Hearing%20Rescheduled_02202024_(21-225379)_text.pdf

52023011NOPV_PHC Hearing Scheduled_07132023_(21-225379).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_PHC%20Hearing%20Scheduled_07132023_(21-225379).pdf

52023011NOPV_PHC Hearing Scheduled_07132023_(21-225379)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023011NOPV/52023011NOPV_PHC%20Hearing%20Scheduled_07132023_(21-225379)_text.pdf

52023011NOPV_PHC Hearing Rescheduled_02202024_(21-225379)_text.pdf

Date: February 20, 2024
From: Larry White
To: File
Re: Continuance of Hearing, Amplify Energy/Beta Offshore
CPF No. 5-2023-011-NOPV
By letter dated February 13, 2024, Alexandra Iorio, Counsel for OPS Western Region, and James
Curry, Counsel for Amplify Energy/Beta Offshore, submitted a joint request for a continuance of
the hearing previously scheduled for March 6, 2024. The request explained that the parties were
engaged in settlement discussions to resolve the case which would make a hearing unnecessary and
additional time was needed to conclude the negotiations due to the complexity of the case.
I granted the request for a continuance until May 8, 2024 which will be the new hearing date if
resolution by consent agreement is not completed by that time.

52023011NOPV_PHC Hearing Scheduled_07132023_(21-225379)_text.pdf

July 13, 2023
VIA ELECTRONIC MAIL TO: chris.keegan@kirkland.com.com and
dustin.hubbard@dot.gov
Mr. Christopher W. Keegan, Esq.
Counsel for Amplify Energy Corporation
Kirkland & Ellis, LLP
555 California Street
San Francisco, CA 94104
Mr. Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
12300 W. Dakota Avenue, Suite 110
Lakewood, CO 80228
Re: Notice of Hearing, Amplify Energy Corporation
CPF No. 5-2023-011-NOPV
Dear Mr. Keegan and Mr. Hubbard:
In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of
Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline
and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take
place on March 6th, 2024, beginning at 8:30 a.m. Mountain Time.
The hearing will be held at the PHMSA Western Region office, 12300 W. Dakota Ave, Suite 110,
Lakewood, CO 80228. Upon arrival at the building, attendees will be required to present photo
identification to security personnel. A contact phone number for the day of the hearing is (720) 963-
3160.
At least 10 calendar days prior to the hearing (or by February 26, 2024), both parties must submit and
exchange any additional written materials they intend to present at the hearing and the name and email
address of each attendee. This information should be provided electronically. Materials not submitted
by this date may be excluded. If you have any questions, please do not hesitate to contact me.
Sincerely,
Larry White
Presiding Official



cc: Mr. Dan Steward, Vice President, Beta Offshore, Amplify Energy Corporation,
dan.steward@amplifyenergy.com
Ms. Kathleen Maitland, Counsel, Western Region, Office of Pipeline Safety,
kathleen.maitland@dot.gov

52023011NOPV_Consent Agreement and Order_12162025_(21-225379)_text.pdf

U.S. Department
of Transportation
Pipeline and Hazardous
Materials Safety
Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
December 16, 2025
VIA ELECTRONIC MAIL TO: dan.furbee@amplifyenergy.com
Mr. Daniel Furbee
Chief Executive Officer
Amplify Energy Corp.
111 Ocean Boulevard, Suite 1240
Long Beach, California 90802
CPF No. 5-2023-011-NOPV
Dear Mr. Furbee:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Beta Offshore, which
was executed on December 10, 2025. Service of the Consent Order and Consent Agreement by
electronic mail is deemed effective upon the date of transmission and acknowledgement of receipt,
or as otherwise provided under 49 CFR § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Linda Daugherty
Acting Associate Administrator
for Pipeline Safety
Enclosure: Consent Order and Consent Agreement
cc: Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA
Brianne Kurdock, Esq., Babst Calland bkurdock@babstcalland.com
Eric Willis, General Counsel, Amplify Energy Corp., eric.willis@amplifyenergy.com



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Beta Offshore ) CPF No. 5-2023-011-NOPV
a subsidiary of Amplify Energy Corp. )
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated April 6, 2023, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed
Civil Penalty and Proposed Compliance Order (Notice) to Beta Offshore, a subsidiary of
Amplify Energy Corp. (Beta or Respondent).
In response to the Notice, Respondent requested a hearing on Items 1 through 9 (Response). On
May 8, 2024, Respondent and PHMSA (the Parties) participated in an administrative hearing in
Lakewood, Colorado before PHMSA’s Presiding Official. Prior to and continuing after the
hearing, the parties participated in settlement discussions regarding the issues in dispute. As a
result of those discussions, as explained in more detail below, the Parties have agreed to a
Consent Agreement by which PHMSA makes findings of violation, includes modified
compliance terms, acknowledges corrective actions by Respondent, and assesses a civil penalty
of $2,000,000.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. Beta is hereby ordered to comply with the terms of the Consent Agreement
pursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent
Order may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49
CFR § 190.223, or in referral to the Attorney General for appropriate relief in a district court of
the United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 CFR § 190.5.
_____________________ ______________________
Linda Daugherty Date Issued
Acting Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Beta Offshore ) CPF No. 5-2023-011-NOPV
a subsidiary of Amplify Energy Corp. )
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
On October 1, 2021, the San Pedro Bay Pipeline (the Pipeline), operated by Beta Operating
Company, LLC d/b/a Beta Offshore (Beta or Respondent), a subsidiary of Amplify Energy Corp.,
ruptured spilling approximately 588 barrels of crude oil into Federal waters off the coast of
Southern California (the Accident).
1 The Pipeline is a 17.79-mile, 16-inch hazardous liquid
transmission pipeline that transports crude oil from Platform Elly, an offshore oil platform in the
San Pedro Bay in Federal waters off the coast of Southern California, to Beta Pump Station in
Long Beach, California. The Pipeline runs along the seafloor until reaching the Long Beach
breakwater, where it is buried.
On October 3 through 22, 2021, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), responded
to the failure site to conduct an accident investigation.
As a result of that investigation, on April 6, 2023, the Director, Western Region, OPS (Director),
issued a Notice of Probable Violation, Proposed Compliance Order and Proposed Civil Penalty
(Notice) to the Respondent. In accordance with 49 CFR § 190.207, PHMSA alleged that Beta had
committed 9 violations of 49 CFR Part 195 (Items 1, 2, 3, 4, 5, 6, 7, 8, and 9) related to its response
to the Accident. PHMSA proposed a total civil penalty of $3,389,734 for these Items and proposed
ordering Respondent to take certain measures to correct the alleged violations. The Notice also
included a warning item (Item 10).
1 The National Transportation Safety Board investigated the accident and determined that the initial cause of the
spill was the result of anchors dragged by two cargo ships that hit the pipeline on the seafloor. National
Transportation Safety Board, “Anchor Strike of Underwater Pipeline and Eventual Crude Oil Release,” MIR-24-01,
Secs. 3.1.4 & 3.1.5 (Oct. 1, 2021)(Finding that “[a]s a result of the winds and seas generated by a strong cold front,
the containerships Beijing and MSC Danit dragged anchor, and the anchors struck, displaced, and damaged the San
Pedro Bay Pipeline…[a]lthough both ships’ anchors struck, damaged, and displaced the pipeline, the MSC Danit
anchor’s contact with the San Pedro Bay Pipeline was the initiating event that led to the eventual crude oil release.”).



On May 12, 2023, Beta filed a timely response to the Notice. Beta contested the allegations and
requested an informal conference, or alternatively, an administrative hearing.
On November 14, 2023, Respondent and PHMSA (collectively, the Parties) participated in an
informal conference in Lakewood, Colorado to discuss the issues. The parties were unable to
resolve the issues at that time.
On May 8, 2024, the Parties participated in an administrative hearing in Lakewood, Colorado
before PHMSA’s Presiding Official (the Hearing). Respondent filed post-hearing briefing on June
7, 2024, and a reply brief on August 7, 2024. OPS filed a Region Recommendation on July 8,
2024.
On March 27, 2025, the Parties were informed that the Presiding Official that presided over the
Hearing had left the agency, and on May 14, 2025 a new Presiding Official was assigned to this
matter.
On May 29, 2025, PHMSA revised its Policy for calculating proposed civil penalties in pipeline
enforcement proceedings.2 Under the new policy, which applies to pending cases such as this one,
OPS must calculate the penalty using the Civil Penalty Worksheet in effect at the time a violation
occurs, not when a case is brought. As a result, on June 3, 2025, PHMSA revised the proposed
civil penalty in this matter from $3,389,734 to $3,161,934.
Throughout this proceeding, the Parties have met several times to discuss a potential settlement.
As a result of these discussions, the Parties have agreed to resolve this matter via consent order
and agreement. Having agreed that settlement of this proceeding will avoid further administrative
proceedings and litigation and will serve the public interest by promoting safety and protection of
the environment, pursuant to 49 U.S.C. § 60101, et seq. and 49 CFR Part 190, and upon consent
and agreement, the Parties hereby agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the
Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent
acknowledges that it received proper notice of PHMSA’s action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and
the regulations and orders issued thereunder.
2. After Respondent returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending that
the Associate Administrator adopt the terms of this Agreement by issuing an administrative order
2 See Policy for Calculating Proposed Civil Penalties in Pipeline Safety Enforcement Proceedings, May 20, 2025,
available at https://www.phmsa.dot.gov/regulatory-compliance/phmsa-guidance/phmsa-policy-calculating-
proposed-civil-penalties-pipeline.



(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute
an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate
Administrator will issue a Consent Order incorporating the terms of this Agreement.
3. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except for the Dispute Resolution
provisions set forth herein. Respondent agrees to notify the Presiding Official that the parties have
resolved this matter via Consent Agreement.
4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its
officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Respondent’s officers, employees, and agents
whose duties might reasonably include compliance with this Agreement.
5. This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement. The
Parties acknowledge that there are no representations, agreements or understandings relating to
settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.
6. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et
seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's
right of access, entry, inspection, and information gathering or PHMSA's authority to bring
enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the
regulations and orders issued thereunder, or any other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Respondent’s pipeline
system referenced herein, Respondent will provide a copy of this Agreement to the prospective
transferee at least 30 days prior to such transfer. Respondent will provide written notice of the
transfer to the Director no later than 60 days after the transfer occurs.
8. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,
or a modification of any permit, under any Federal, State, or local laws or regulations. Respondent
remains responsible for achieving and maintaining compliance with all applicable Federal, State,
and local laws, regulations and permits.
9. This Agreement does not create rights in, or grant any cause of action to, any third
party, not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. Respondent
agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,



and representatives from any and all causes of action arising from any acts or omissions of
Respondent or its contractors in carrying out any work required by this Agreement.
10. Respondent neither admits nor denies any allegations or conclusions in the Notice.
Respondent agrees for purposes of this Agreement to accept the allegations in the Notice as
findings of violations and to comply with the terms of this Agreement.
11. Except as set forth herein, this Agreement does not constitute a finding of violation
of any other federal law or regulation and may not be used in any civil proceeding of any kind as
evidence or proof of any fact, fault or liability, or as evidence of a violation of any law, rule,
regulation, or requirement, except in a proceeding to enforce the provisions of this Agreement.
II. Findings of Violation
12. Item 1 - 49 CFR § 195.52(a): The Notice alleged Beta failed to notify the National
Response Center in accordance with 195.52(a) at the earliest practicable moment following
discovery, but no later than one hour after confirmed discovery of a failure that resulted in oil
being released into the San Pedro Bay. For purposes of settlement, Respondent does not contest
the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 CFR
§ 195.52(a).
13. Item 2 – 49 CFR § 195.401(a): The Notice alleged that Beta operated its pipeline
at a level of safety that was lower than that required by Part 195, Subpart F – Operations and
Maintenance, and the procedures required to be established under 49 CFR § 195.402(a). For
purposes of settlement, Respondent does not contest the allegation of violation as alleged in the
Notice. As such, PHMSA finds a violation of 49 CFR § 195.401(a).
14. Item 3 – 49 CFR § 195.402(a): The Notice alleged Beta failed to follow a manual
of written procedures for each pipeline system for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies. For purposes of settlement,
Respondent does not contest the allegation of violation as alleged in the Notice. As such, PHMSA
finds a violation of 49 CFR § 195.402(a).
15. Item 4 – 49 CFR § 195.446(a): The Notice alleged Beta failed to follow its written
control room management (CRM) procedures that implement the requirements of § 195.446. For
purposes of settlement, Respondent does not contest the allegation of violation as alleged in the
Notice. As such, PHMSA finds a violation of 49 CFR § 195.446(a).
16. Item 5 – 49 CFR § 195.446(a): The Notice alleged Beta failed to follow its CRM
procedure as it related to the requirement to monitor the content and volume of general activity
being directed to and required of each controller at least once each calendar year, but at intervals
not exceeding 15 months. For purposes of settlement, Respondent does not contest the allegation
of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 CF.R. § 195.446(a).
17. Item 6 – 49 CFR § 195.446(b)(5): The Notice alleged that Beta did not define in
its CRM procedures the roles, responsibilities and qualifications of others who have the authority



to direct or supersede the specific technical actions of controllers. For purposes of settlement,
Respondent does not contest the allegation of violation as alleged in the Notice. As such, PHMSA
finds a violation of 49 CFR § 195.446(b)(5).
18. Item 7 – 49 CFR § 195.446(d)(3): The Notice alleged Beta failed to educate
controllers and supervisors in fatigue mitigation strategies and how off-duty activities contribute
to fatigue, and train controllers and supervisors to recognize the effects of fatigue. For purposes
of settlement, Respondent does not contest the allegation of violation as alleged in the Notice. As
such, PHMSA finds a violation of 49 CFR § 195.446(d)(3).
19. Item 8 – 49 CFR § 195.446(h): The Notice alleged Beta failed to provide training
to its controllers to carry out the roles and responsibilities defined by the operator. For purposes of
settlement, Respondent does not contest the allegation of violation as alleged in the Notice. As
such, PHMSA finds a violation of 49 CFR § 195.446(h).
20. Item 9 – 49 CFR § 195.505(b): The Notice alleged Beta failed to ensure a thorough
evaluation that individuals performing covered tasks were qualified. For purposes of settlement,
Respondent does not contest the allegation of violation as alleged in the Notice. As such, PHMSA
finds a violation of 49 CFR § 195.505(b).
21. Items 1 through 9, will be considered by PHMSA as prior offenses in any future
PHMSA enforcement action taken against Respondent for the five (5)-year period following the
Effective Date of this Agreement.
III. Warning Item:
22. Item 10 – 49 CFR § 195.54(a): The Notice alleged Beta failed to file an accident
report on DOT Form 7000-1 as soon as practicable but not later than 30 days after the discovery
of the Failure. This Item was brought as a warning item and does not constitute a finding of
violation. If OPS finds a violation of this provision in a subsequent inspection, Respondent may
be subject to future enforcement action.
IV. Civil Penalty:
23. Item 1: PHMSA proposed a civil penalty in the amount of $50,200. On June 3,
2025, PHMSA reduced the proposed penalty to $46,600 as part of a change in its Civil Penalty
Policy. Respondent has agreed to pay the proposed civil penalty of $46,600 for this Item.
24. Item 2: PHMSA proposed a civil penalty in the amount of $225,134. Respondent
has agreed to pay the proposed civil penalty of $225,134 for this Item.
25. Item 3: PHMSA proposed a civil penalty in the amount of $1,526,800. On June 3,
2025, PHMSA reduced the proposed penalty to $1,416,900 as part of a change in its Civil Penalty
Policy. For purposes of settlement, PHMSA agrees to reduce the number of instances of violation
and further adjust the penalty for this Item as justice may require. As a result, the penalty is



reduced to $747,633. Respondent has agreed to pay a reduced civil penalty in the amount of
$747,633 for this Item.
26.
Item 4: PHMSA proposed a civil penalty in the amount of $1,228,900. On June 3,
2025, PHMSA reduced the proposed penalty to $1,140,400 as part of the agency's modifications
to its Civil Penalty Policy. For the purposes of settlement, PHMSA agrees to reduce the number
of instances of violation and further adjust the penalty for this Item as justice may require. As a
result, the penalty is reduced to $747,633. Respondent has agreed to pay a civil penalty in the
amount of $747,633 for this Item.
27. Item 5: The Notice proposed assessing a civil penalty in the amount of $50,200.
On June 3, 2025, PHIMSA reduced the proposed penalty to $46,600 as part of a change in its Civil
Penalty Policy. Respondent has agreed to pay the proposed civil penalty of $46,600 for this Item.
28. Item 6: The Notice proposed assessing a civil penalty in the amount of $50,200.
On June 3, 2025, PHMSA reduced the proposed penalty to $46,600 as part of a change in its Civil
Penalty Policy. Respondent has agreed to pay the proposed civil penalty of $46,600 for this Item.
29. Item 7: The Notice proposed assessing a civil penalty in the amount of $50,200.
On June 3, 2025, PHMSA reduced the proposed penalty to $46,600 as part of a change in its Civil
Penalty Policy. Respondent has agreed to pay the proposed civil penalty of $46,600 for this Item.
30. Item 8: The Notice proposed assessing a civil penalty in the amount of $81,900.
On June 3, 2025, PHMSA reduced the proposed penalty to $76,000 as part of a change in its Civil
Penalty Policy. For the purposes of settlement, PHMSA agrees to reduce the number of instances
of violation for this Item. As a result, the penalty is reduced to $46,600. Respondent has agreed
to pay the proposed civil penalty of $46,600 for this Item.
31. Item 9: The Notice proposed assessing a civil penalty in the amount of $126,200.
On June 3, 2025, PHMSA reduced the proposed penalty to $117,100 as part of a change in its Civil
Penalty Policy. For the purposes of settlement, PHMSA agrees to reduce the number of instances
of violation for this Item. As a result, the penalty is reduced to $46,600. Respondent has agreed
to pay the proposed civil penalty of $46,600 for this Item.
32. Respondent shall pay an adjusted civil penalty in the amount of $2,000,000, pursuant
to the payment instructions at 49 CFR § 190.227(a), to be paid in full no later than 20 days from
the Effective Date of this Agreement.
V. Compliance Terms:
33.
Items 2 through 5 - PHMSA proposed certain compliance actions to address the
allegations in Items 2, 3,
4 and 5 (violations of §§ 195.401(a), 195.402(a), and 195.446(a)).
Respondent developed revised procedures and submitted them to PHMSA for review. PHMSA
finds these revisions acceptable.
34.
Item 6 - 49 CFR § 195.446(b)(5): The Notice proposed that Beta must amend its
procedure for defining who has the authority and the qualifications to direct or supersede the



specific technical actions of a controller and disallow others to direct controller actions. Within 90
days of the Effective Date, Beta must provide to PHMSA for review and approval its revised
procedures reflecting a detailed process for defining who has authority to direct or supersede the
specific technical actions of a controller and disallowing others to direct controller actions (in any
operating mode), including the circumstances in which he or she may do so, and how this practice
is documented.
35. Item 7 – 49 CFR § 195.446(d)(3): The Notice proposed that Beta must provide
training on fatigue risk management to all controllers and supervisors and provide a copy of the
Fatigue Risk Management training materials that will be used to train all controllers and
supervisors. Within 120 days of the Effective Date, Beta must provide training on fatigue risk
management to all controllers and supervisors and submit a copy of the Fatigue Risk Management
training materials to PHMSA.
36. Item 8 – 49 CFR § 195.446(h): The Notice proposed that Beta must amend its
CRM Procedure to include the name or title of the training modules that the controllers are required
to take and how often they have to take the trainings, and a detailed process for providing an
opportunity for controllers to review relevant procedures in advance of their application for setups
that are periodically, but infrequently used. The procedures must include who operationally
collaborates with control room personnel, define the frequency of new and recurring team training,
address all operational modes and operational collaboration and incorporate lessons learned from
actual historical events and other oil and gas industry events. Within 90 days of the Effective
Date, Beta must amend its procedures accordingly and submit the revisions to PHMSA for its
review and approval.
37. Within 90 days of PHMSA’s approval of all amended procedures, Beta must
provide a training simulation on all amended procedures to all facility operators, control room
operators, persons-in-charge, supervisors, superintendents, and safety personnel.
38. Beta must provide records to PHMSA to demonstrate that this training has been
conducted within 30 days of training completion.
VI. Enforcement:
39. This Agreement is subject to all enforcement authorities available to PHMSA under
49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including administrative civil penalties under 49
U.S.C. § 60122, of up to $266,015 per violation for each day the violation continues and referral of
the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent
is not complying with the terms of this Agreement in accordance with the determinations made by
the Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to
the Dispute Resolution process herein. The maximum civil penalty amounts are adjusted annually
for inflation. See 49 CFR § 190.223. All time frames to complete the compliance terms referenced
in Section V (Compliance Terms) are automatically incorporated into this Agreement and are
enforceable in the same manner.



VII. Review and Approval Process:
40. With respect to any submission under Section V (Compliance Terms) of this
Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or
in part, the submission; (b) approve the submission on specified, reasonable conditions; (c)
disapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the
Director approves, approves in part, or approves with conditions, Respondent will take all actions
as approved by the Director, subject to Respondent’s right to invoke the dispute resolution
procedures with respect to any conditions the Director identifies. If the Director disapproves all
or any portion of the submission, the Director will provide Respondent a written notice of the
deficiencies. Respondent will correct all deficiencies within the time specified by the Director and
resubmit it for approval.
VIII. Dispute Resolution:
41. The Director and Respondent will informally attempt to resolve any disputes arising
under this Agreement, including any decision of the Director under the terms of Section V
(Compliance Terms). If Respondent and the Director are unable to informally resolve the dispute
within 15 calendar days after the dispute is first raised, in writing, to the Director, Respondent may
submit a written request for a determination resolving the dispute from the Associate Administrator
for Pipeline Safety, PHMSA. Such request must be made in writing and provided to the Director,
counsel for the Western Region, and to the Associate Administrator for Pipeline Safety, no later
than 10 calendar days from the 15-day deadline for informal resolution referenced in this
paragraph. Along with its request, Respondent must provide the Associate Administrator with all
information Respondent believes is relevant to the dispute. Decisions of the Associate
Administrator under this paragraph will constitute final agency action. The existence of a dispute
and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term
or timeframe for completion of any work to be performed under this Agreement during the
pendency of the dispute resolution process.
IX. Effective Date:
42. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.
X. Recordkeeping and Information Disclosure:
43. Unless otherwise required in this Agreement, Respondent agrees to maintain
records demonstrating compliance with all requirements of this Agreement for a period of at least
five (5) years following completion of all work to be performed. For any reports, plans, or other
deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may
assert a claim of business confidentiality or other protections applicable to the release of
information by PHMSA, covering part or all of the information required to be submitted to
PHMSA pursuant to this Agreement in accordance with 49 CFR Part 7. Respondent must mark
the claim of confidentiality in writing on each page and include a statement specifying the grounds
for each claim of confidentiality. PHMSA determines release of any information submitted



pursuant to this Agreement in accordance with 49 CFR Part 7, the Freedom of Information Act, 5
U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.
XI. Modification:
44. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
XII. Termination:
45. This Agreement will remain in effect until the Civil Penalty in Section IV and
Compliance Terms in Section V are deemed satisfied, as determined by the Director. The
Agreement shall not terminate until the Director confirms, in writing, that the Agreement is
terminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent
from completing any of the obligations earlier than the deadlines provided for in this Agreement.
XIII. Ratification:
46. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
47. The Parties hereby agree to all findings, conditions, and terms of this Agreement.
[Signature Lines on Following Page]



For Beta Operating Company, LLC:
___________________________________
________________________
Date
For PHMSA:
________________________________________
Director, Western Region, Office of Pipeline Safety
________________________
Date
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