{"operation":"document","citation":"CPF 52023031NOPV","title":"FREEPORT-MCMORAN OIL & GAS — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-10-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 194.117(b), 194.121(a), 194.7(b), 195.402(a), 195.403(b)(1), 195.403(c), 195.412(a), 195.420(b), 195.440(c), 195.452(h)(2), 195.573(a)(2), 195.583(b), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023031nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023031nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023031nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023031NOPV","body":"Notice of Probable Violation involving FREEPORT-MCMORAN OIL & GAS. PHMSA's enforcement data identifies the cited regulations as 194.117(b),  194.121(a),  194.7(b),  195.402(a),  195.403(b)(1),  195.403(c),  195.412(a),  195.420(b),  195.440(c),  195.452(h)(2),  195.573(a)(2),  195.583(b),  195.589(c). The case was opened on 2023-10-11 and is reported as closed as of 2026-03-20. Proposed civil penalty: $87,800. Assessed civil penalty: $0. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023031NOPV_Closure Letter_03202026_(22-232626).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_Closure%20Letter_03202026_(22-232626).pdf\n\n52023031NOPV_Closure Letter_03202026_(22-232626)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_Closure%20Letter_03202026_(22-232626)_text.pdf\n\n52023031NOPV_Final Order_09102025_(22-232626).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_Final%20Order_09102025_(22-232626).pdf\n\n52023031NOPV_Final Order_09102025_(22-232626)_txt.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_Final%20Order_09102025_(22-232626)_txt.pdf\n\n52023031NOPV_Operator Response to Notice Part 1_12082023_(22-232626).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_Operator%20Response%20to%20Notice%20Part%201_12082023_(22-232626).pdf\n\n52023031NOPV_PCP PCO_10112023_(22-232626).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_PCP%20PCO_10112023_(22-232626).pdf\n\n52023031NOPV_PCP PCO_10112023_(22-232626)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023031NOPV/52023031NOPV_PCP%20PCO_10112023_(22-232626)_text.pdf\n\n52023031NOPV_Final Order_09102025_(22-232626).pdf\n\nU.S. Department 1200 New Jersey Avenue, SE\nof Transportation Washington, DC 20590\nPipeline and Hazardous\nMaterials Safety\nAdministration September 10, 2025\nVIA ELECRONIC MAIL TO: tcantrall@fmi.com\nTodd Cantrall\nVice President of Operations Oil and Gas\nFreeport-McMoRan Oil & Gas\n21 Waterway Ave., Suite 250\nThe Woodlands, TX 77380\nRe: CPF No. 5-2023-031-NOPV\nDear Mr. Cantrall:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws two of\nthe allegations of violation, makes other findings of violation, withdraws the proposed civil\npenalty, and specifies actions that need to be taken by Freeport-McMoRan Oil & Gas to comply\nwith the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Western Region, this enforcement action will be\nclosed. Service of the Final Order by e-mail is effective upon the date of transmission and\nacknowledgement of receipt as provided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nDigitally signed by LINDA\nLINDA GAIL GAIL DAUGHERTY\nDate: 2025.09.08\nDAUGHERTY 17:08:19 -04'00'\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosures\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 2\nMr. Dave Willis, Pipeline Integrity Manager, DCOR LLC, dwillis@dcorllc.com\nMs. Heather Carreno, FMOG Primary Compliance, DCOR LLC, hcarreno@dcorllc.com\nMr. David Rose, Director, Environmental Health and Safety, FMOG, drose@dcorllc.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 )\nFreeport-McMoRan Oil & Gas, ) CPF No. 5-2023-031-NOPV\na subsidiary of Freeport-McMoRan, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom October 4 through 7, 2022, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of Freeport-McMoRan Oil & Gas’s (FMOG or\nRespondent) eight-inch hazardous liquid pipeline that originates at Platform Irene and terminates\nat the Lompoc Oil and Gas Plant in Lompoc, California. FMOG is a wholly owned subsidiary of\nFreeport-McMoRan, a U.S.-based natural resource company with a global portfolio of mineral\nassets.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated October 11, 2023, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 CFR § 190.207, the\nNotice proposed finding that FMOG had committed 11 violations of 49 CFR Parts 194 and 195,\nproposed assessing a civil penalty of $87,800 for the alleged violations, and proposed ordering\nRespondent to take certain measures to correct the alleged violations. The Notice also included\nan additional two warning items pursuant to 49 CFR § 190.205, which warned Respondent to\ncorrect the probable violations or face possible future enforcement action.\nFMOG responded to the Notice by letter dated December 8, 2023 (Response). FMOG contested\nseveral of the allegations, offered additional information in response to the Notice, and requested\nthat the proposed civil penalty be reconsidered. Respondent did not request a hearing and\ntherefore has waived its right to one.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 CFR Parts 194 and 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 CFR § 194.7(b), which states:\n§ 194.7 Operating restrictions and interim operating authorization.\n(a) . . . .\n(b) An operator must operate its onshore pipeline facilities in\naccordance with the applicable response plan.\nThe Notice alleged that Respondent violated 49 CFR § 194.7(b) by failing to operate its onshore\npipeline facilities in accordance with the applicable response plan. Specifically, the Notice\nalleged that FMOG failed to provide records to demonstrate that the oil spill response drill had\nbeen conducted as required by its Oil Spill Response Plan, Section 9.2 - Spill Response Drills.\nIn its Response, FMOG contested Item 1 and stated it provided records located after PHMSA’s\ninspection that indicated compliance with section 194.7(b).\nIn a recommendation for final action submitted pursuant to section 190.209(b)(7), the Director\nrecommended withdrawing the alleged violation of section 194.7(b).\nBased upon the foregoing, I hereby order that Item 1 be withdrawn.\nItem 2: The Notice alleged that Respondent violated 49 CFR § 194.117(b), which states:\n§ 194.117 Training.\n(a) . . . .\n(b) Each operator shall maintain a training record for each individual\nthat has been trained as required by this section. These records must be\nmaintained in the following manner as long as the individual is assigned\nduties under the response plan:\n(1) Records for operator personnel must be maintained at the operator’s\nheadquarters; and\n(2) Records for personnel engaged in response, other than operator\npersonnel, shall be maintained as determined by the operator.\nThe Notice alleged that Respondent violated 49 CFR § 194.117(b) by failing to maintain training\nrecords for each individual as required by section 194.117(b). Specifically, the Notice alleged\nthat FMOG failed to provide training records for 2019, 2020, 2021, and 2022 to show that its\nIncident Management Team had been trained as required by its Oil Spill Response Plan, Section\n9.1 – Training.\nIn its Response, FMOG contested Item 2 and stated it provided records located after PHMSA’s\ninspection that indicated compliance with section 194.117(b).\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 3\nFMOG provided training records for 2020, 2021, 2022, and 2023. However, FMOG failed to\nprovide training records for 2019.\nIn a recommendation for final action submitted pursuant to section 190.209(b)(7), the Director\nrecommended reducing the alleged violation of section 194.117(b) to a warning after reviewing\nthe additional records.\nBased upon the foregoing, I hereby order that Item 2 be reduced to a warning.\nItem 3: The Notice alleged that Respondent violated 49 CFR § 194.121(a), which states:\n§ 194.121 Response plan review and update procedures.\n(a) Each operator shall update its response plan to address new or\ndifferent operating conditions or information. In addition, each operator\nshall review its response plan in full at least every 5 years from the date of\nthe last submission or the last approval as follows:\n(1) For substantial harm plans, an operator shall resubmit its response\nplan to OPS every 5 years from the last submission date.\n(2) For significant and substantial harm plans, an operator shall resubmit\nevery 5 years from the last approval date.\nThe Notice alleged that Respondent violated 49 CFR § 194.121(a) by failing to review its\nresponse plan in full at least every five years from the date of the last submission or the last\napproval. Specifically, the Notice alleged that FMOG failed to resubmit its response plan to\nPHMSA in 2022, which was five years from the last submission date in 2017.\nIn its Response, FMOG contested Item 3 and stated that the response plan was under review by\ntwo other agencies during the inspection. FMOG submitted the response plan to PHMSA after\nthe inspection in December 2023.\nWhile FMOG ultimately resubmitted its response plan, it was done so more than five years from\nthe last submission date.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 194.121(a) by failing to review its response plan in full at least every five years from the date\nof the last submission or the last approval.\nItem 4: The Notice alleged that Respondent violated 49 CFR § 195.402(a), which states:\n§ 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and\nemergencies. This manual shall be reviewed at intervals not exceeding 15\nmonths, but at least once each calendar year, and appropriate changes made\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 4\nas necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline system commence, and\nappropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 CFR § 195.402(a) by failing to review its\nprocedural manual for operations, maintenance, and emergencies at intervals not exceeding 15\nmonths, but at least once each calendar year. Specifically, the Notice alleged that FMOG failed\nto provide records indicating its emergency plan had been reviewed in 2019, 2020, 2021, and\n2022.\nIn its Response, FMOG contested Item 4 and stated it provided records located after PHMSA’s\ninspection that evidenced recent reviews of its emergency plan. FMOG also submitted a revised\nand updated emergency plan.\nFMOG submitted records indicating its emergency plan was reviewed in 2023, but it failed to\nprovide records indicating a review occurred in 2019, 2020, 2021, and 2022.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.402(a) by failing to review its procedural manual for operations, maintenance, and\nemergencies at intervals not exceeding 15 months, but at least once each calendar year.\nItem 5: The Notice alleged that Respondent violated 49 CFR § 195.403(b)(1), which states:\n§ 195.403 Emergency response training.\n(a) . . . .\n(b) At the intervals not exceeding 15 months, but at least once each\ncalendar year, each operator shall:\n(1) Review with personnel their performance in meeting the objectives\nof the emergency response training program set forth in paragraph (a) of\nthis section; and\nThe Notice alleged that Respondent violated 49 CFR § 195.403(b)(1) by failing to review with\npersonnel their performance in meeting the objectives of the emergency response training\nprogram set forth in section 195.403(a) at intervals not exceeding 15 months, but at least once\neach calendar year. Specifically, the Notice alleged that FMOG failed to provide records from\n2019, 2020, 2021, and 2022 records to demonstrate compliance with section 195.403(b)(1).\nIn its Response, FMOG contested Item 5. FMOG argued that Compliance Form 17.01\ndemonstrates compliance with section 195.403(b)(1) because it includes records of the\nEmergency Response Plan (ERP) annual drill and review.\nFMOG provided records related to its ERP annual drill and review for 2020, 2021, 2022, and\n2023. However, none of those records indicate that FMOG reviewed with personnel their\nperformance in meeting the objectives of the emergency response training. With respect to\nCompliance Form 17.01, FMOG only provided a blank copy.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 5\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.403(b)(1) by failing to review with personnel their performance in meeting the objectives\nof the emergency response training program set forth in section 195.403(a) at intervals not\nexceeding 15 months, but at least once each calendar year.\nItem 6: The Notice alleged that Respondent violated 49 CFR § 195.403(c), which states:\n§ 195.403 Emergency response training.\n(a) . . . .\n(c) Each operator shall require and verify that its supervisors maintain a\nthorough knowledge of that portion of the emergency response procedures\nestablished under § 195.402 for which they are responsible to ensure\ncompliance.\nThe Notice alleged that Respondent violated 49 CFR § 195.403(c) by failing to require and\nverify that its supervisors maintained a thorough knowledge of that portion of the emergency\nresponse procedures established under section 195.402 for which they are responsible to ensure\ncompliance. Specifically, the Notice alleged that FMOG failed to provide records from 2019,\n2020, 2021, and 2022 records to demonstrate compliance with section 195.403(c).\nIn its Response, FMOG contested Item 6. FMOG argued that Compliance Form 17.01\ndemonstrates compliance with section 195.403(c) because it includes records of the Emergency\nResponse Plan (ERP) annual drill, ERP review, and verification of supervisor knowledge.\nFMOG provided records related to its ERP annual drill and review for 2020, 2021, 2022, and\n2023. However, none of those records indicate that FMOG verified that its supervisors\nmaintained a thorough knowledge of that portion of the emergency response procedures\nestablished under section 195.402 for which they are responsible to ensure compliance. With\nrespect to Compliance Form 17.01, FMOG only provided a blank copy.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.403(c) by failing to require and verify that its supervisors maintained a thorough\nknowledge of that portion of the emergency response procedures established under section\n195.402 for which they are responsible to ensure compliance.\nItem 9: The Notice alleged that Respondent violated 49 CFR § 195.440(c), which states:\n§ 195.440 Public awareness.\n(a) . . . .\n(c) The operator must follow the general program recommendations,\nincluding baseline and supplemental requirements of API RP 1162, unless\nthe operator provides justification in its program or procedural manual as to\nwhy compliance with all or certain provisions of the recommended practice\nis not practicable and not necessary for safety.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 6\nThe Notice alleged that Respondent violated 49 CFR § 195.440(c) by failing to follow the\ngeneral program recommendations of API RP 1162. Specifically, the Notice alleged that FMOG\nfailed to provide records that it established and maintained liaison with fire, police, and other\nappropriate public officials to learn the responsibility and resources of each government\norganization that may respond to a hazardous liquid pipeline emergency and acquaint the\nofficials with the operator’s ability in responding to a hazardous liquid or carbon dioxide pipeline\nemergency and means of communication for 2019, 2020, 2021, and 2022.\nIn its Response, FMOG contested Item 9 and stated that although the required activities were\nperformed and documented, they were not provided during the inspection. FMOG attached the\nreferenced records for 2019, 2020, 2021, and 2022 to its Response.\nAfter reviewing the additional operator records, I find there is insufficient evidence to conclude\nthat FMOG violated section 195.440(c).\nBased upon the foregoing, I hereby order that Item 9 be withdrawn.\nItem 10: The Notice alleged that Respondent violated 49 CFR § 195.452(h)(2), which states:\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(h) What actions must an operator take to address integrity issues? -\n(1) . . . .\n(2) Discovery of condition. Discovery of a condition occurs when an\noperator has adequate information to determine that a condition presenting\na potential threat to the integrity of the pipeline exists. An operator must\npromptly, but no later than 180 days after an assessment, obtain sufficient\ninformation about a condition to make that determination, unless the\noperator can demonstrate the 180-day interval is impracticable. If the\noperator believes that 180 days are impracticable to make a determination\nabout a condition found during an assessment, the pipeline operator must\nnotify PHMSA in accordance with paragraph (m) of this section and provide\nan expected date when adequate information will become available.\nThe Notice alleged that Respondent violated 49 CFR § 195.452(h)(2) by failing to promptly, but\nno later than 180 days after an assessment, obtain sufficient information about a condition.\nSpecifically, the Notice alleged that FMOG failed to evaluate and remediate 71 counts of 180-\nday conditions identified in a November 9, 2021 inline inspection (ILI) report (2021 ILI Report)\nin accordance with section 195.452(h)(4)(iii)(H).\nIn its Response, FMOG did not contest Item 10 but provided additional information. FMOG\nacknowledged that it was “unable to locate any formal review of the subject 2021 ILI report.”\nHowever, FMOG stated it hired a third-party engineer to review the data from the 2021 ILI\nReport. In addition, FMOG stated that the same 180-day conditions did not appear when it ran\nan improved ILI tool (MFL-A Ultra) in October and December 2022. FMOG attached the more\nrecent ILI report, dated March 20, 2023, to its Response (2023 ILI Report).\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 7\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.452(h)(2) by failing to promptly, but no later than 180 days after an assessment, obtain\nsufficient information about a condition.\nItem 11: The Notice alleged that Respondent violated 49 CFR § 195.573(a)(2), which states:\n§ 195.573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine\nwhether cathodic protection required by this subpart complies with §\n195.571:\n(1) . . . .\n(2) Identify not more than 2 years after cathodic protection is installed,\nthe circumstances in which a close-interval survey or comparable\ntechnology is practicable and necessary to accomplish the objectives of\nparagraph 10.1.1.3 of NACE SP 0169 (incorporated by reference, see §\n195.3).\nThe Notice alleged that Respondent violated 49 CFR § 195.573(a)(2) by failing to identify not\nmore than 2 years after cathodic protection is installed, the circumstances in which a close-\ninterval survey or comparable technology is practicable and necessary to accomplish the\nobjectives of paragraph 10.1.1.3 of NACE SP 0169. PHMSA issued a warning letter to FMOG\nin 2020 that identified the same issue.1\nIn its Response, FMOG did not contest Item 11 and stated it would conduct a close-interval\nsurvey analysis and provide the results to PHMSA.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.573(a)(2) by failing to identify not more than 2 years after cathodic protection is installed,\nthe circumstances in which a close-interval survey or comparable technology is practicable and\nnecessary to accomplish the objectives of paragraph 10.1.1.3 of NACE SP 0169.\nItem 12: The Notice alleged that Respondent violated 49 CFR § 195.583(b), which states:\n§ 195.583 What must I do to monitor atmospheric corrosion control?\n(a) . . . .\n(b) During inspections you must give particular attention to pipe at soil-\nto-air interfaces, under thermal insulation, under disbonded coatings, at pipe\nsupports, in splash zones, at deck penetrations, and in spans over water.\nThe Notice alleged that Respondent violated 49 CFR § 195.583(b) by failing to give particular\nattention to pipe supports during atmospheric corrosion inspections. Specifically, the Notice\nalleged that it was impossible to conduct a visual inspection for atmospheric corrosion on a\n1 See Freeport-McMoRan Oil & Gas, Warning Letter, CPF No. 5-2020-7002W, Item 3 (Mar. 9, 2020),\nhttps://primis.phmsa.dot.gov/enforcement-data/case/520207002W.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 8\nportion of an above-ground pipe that was covered by a pipe support at Valve Site 1, Point\nPedernales. PHMSA issued a warning letter to FMOG in 2020 that identified the same issue.2\nIn its Response, FMOG did not contest Item 12 and stated it would modify the existing pipe\nsupports and inspect the contact points.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.583(b) by failing to give particular attention to pipe supports during atmospheric corrosion\ninspections.\nItem 13: The Notice alleged that Respondent violated 49 CFR § 195.589(c), which states:\n§ 195.589 What corrosion control information do I have to maintain?\n(a) . . . .\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by\nthis subpart in sufficient detail to demonstrate the adequacy of corrosion\ncontrol measures or that corrosion requiring control measures does not\nexist. You must retain these records for at least 5 years, except that records\nrelated to §§ 195.569, 195.573(a) and (b), and 195.579(b)(3) and (c) must\nbe retained for as long as the pipeline remains in service.\nThe Notice alleged that Respondent violated 49 CFR § 195.589(c) by failing to maintain a record\nof each analysis, check, demonstration, examination, inspection, investigation, review, survey,\nand test required in sufficient detail to demonstrate the adequacy of corrosion control measures\nor that corrosion requiring control measures did not exist. Specifically, the Notice alleged that\nFMOG failed to provide records that demonstrate that:\nItem 13(1) - the Lompoc Oil and Gas Plant facility had been inspected for evidence of\natmospheric corrosion at least once every 3 calendar years, but with intervals not\nexceeding 39 months as required by section 195.583(a);\nItem 13(2) - Platform Irene had been inspected for evidence of atmospheric corrosion at\nleast once each calendar year but with intervals not exceeding 15 months as required by\nsection 195.583(a); and\nItem 13(3) - that it corrected any identified deficiencies in corrosion control as required\nby section 195.401(b), such as the deficient cathodic protection (CP) readings at Valve\nStation #10 indicated in the 2020 and 2021 Pipe-to-Soil Annual Surveys.\nIn its Response, FMOG contested Item 13 and stated it provided the rectifier readings from 2019\nto 2022, the bi-monthly rectifier and bond surveys performed for 2022 and 2023, and\natmospheric corrosion inspection records for the Lompoc Oil and Gas Plant facility and Platform\n2 See Freeport-McMoRan Oil & Gas, Warning Letter, CPF No. 5-2020-7002W, Item 1 (Mar. 9, 2020),\nhttps://primis.phmsa.dot.gov/enforcement-data/case/520207002W.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 9\nIrene. FMOG stated it remediated the deficient CP readings and included a more recent Pipe-to-\nSoil Annual Survey with the new readings.\nWith respect to the deficient CP readings, FMOG provided records indicating that the deficient\nCP readings were remediated (Item 13(3)). However, FMOG failed to provide atmospheric\ncorrosion inspection records for the Lompoc Oil and Gas Plant facility and Platform Irene (Items\n13(1) and 13(2)).\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 CFR\n§ 195.589(c) by failing to maintain a record of each analysis, check, demonstration, examination,\ninspection, investigation, review, survey, and test required in sufficient detail to demonstrate the\nadequacy of corrosion control measures or that corrosion requiring control measures did not\nexist.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, 33 U.S.C. § 1321(j), and 49 CFR § 190.223(b), Respondent is subject\nto an administrative civil penalty for the violations.\nIn determining the amount of a civil penalty under 49 CFR § 190.225, I must consider the\nfollowing criteria: the nature, circumstances, and gravity of the violation, including adverse\nimpact on the environment; the degree of Respondent’s culpability; the history of Respondent’s\nprior offenses; any effect that the penalty may have on its ability to continue doing business; the\ngood faith of Respondent in attempting to comply with the pipeline safety regulations; and self-\ndisclosure or actions to correct a violation prior to discovery by PHMSA. In addition, I may\nconsider the economic benefit gained from the violation without any reduction because of\nsubsequent damages, and such other matters as justice may require. The Notice proposed a total\ncivil penalty of $87,800 for the violations cited above. Effective May 20, 2025, PHMSA revised\nits proposed civil penalty calculation policy to use the version of the Civil Penalty Worksheet in\neffect when the alleged violation occurred. The new policy reduces the total proposed civil\npenalty in this case to $81,500.\nItem 9: The Notice proposed a civil penalty of $87,800 for Respondent’s violation of 49 CFR §\n195.440(c). The new policy for calculating a proposed civil penalty reduces the proposed civil\npenalty for this item to $81,500. Since this alleged violation has been withdrawn, the proposed\npenalty is not assessed.\nCOMPLIANCE ORDER\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 10\nThe Notice proposed a compliance order with respect to Items 1, 2, 3, 4, 5, 6, 9, 10, 11, 12, and\n13 in the Notice for violations of 49 CFR Parts 194 and 195. Under 49 U.S.C. § 60118(a), each\nperson who engages in the transportation of hazardous liquids or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. Under 33 U.S.C. § 1321(b)(6)(A) and (m)(2), PHMSA may assess a civil penalty\nor require corrective action for any owner, operator, or person subject to Part 194 who fails or\ncomply with an applicable regulation in Part 194. As discussed above, Items 1 and 9 have been\nwithdrawn. Therefore, the compliance terms proposed in the Notice for those Items are not\nincluded in this Order. The Director has indicated that Respondent has taken the following\nactions to address some of the cited violations:\nFor Item 2, Respondent provided training records for its Qualified Individual and\nIncident Management Team. For Item 3, Respondent resubmitted its response plan.\nFor Item 4, Respondent provided a revised and updated emergency plan. For Item\n10, Respondent provided a 2023 ILI Report that did not include the same 180-day\nconditions referenced in the Notice using a more advanced ILI tool. For Item 13(3),\nRespondent provided records indicating the deficient CP readings were remediated.\nAccordingly, I find that compliance has been achieved with respect to these violations.\nTherefore, the compliance terms proposed in the Notice for Items 2, 3, 4, 10, and 13(3) are not\nincluded in this Order.\nAs for the remaining compliance terms, pursuant to the authority of 49 U.S.C. § 60118(b) and 49\nCFR § 190.217, Respondent is ordered to take the following actions to ensure compliance with\nthe pipeline safety regulations applicable to its operations:\n1. With respect to the violation of section 195.403(b)(1) (Item 5), Respondent must\nreview and update its emergency response training program as required by section\n195.403(b)(1) and provide evidence of compliance to the Director, Western Region\nwithin six months of receipt of the Final Order.\n2. With respect to the violation of section 195.403(c) (Item 6), Respondent must\nrequire and verify that its supervisors maintain a thorough knowledge of that portion\nof the emergency response procedures which they are responsible to ensure\ncompliance with section 195.403(c) and provide evidence of compliance to the\nDirector, Western Region within six months of receipt of the Final Order.\n3. With respect to the violation of section 195.573(a)(2) (Item 11), Respondent must\nperform a close-interval survey and provide records of the completed work to the\nDirector, Western Region within six months of receipt of the Final Order.\n4. With respect to the violation of section 195.583(b) (Item 12), Respondent must\nmodify its existing fixed pipe support at Valve Site 1, Point Pedernales, to be\nadjustable to allow for atmospheric corrosion inspections of the above-ground pipe\nsurface at pipe-pipe support interface and provide records of the completed work to\nthe Director, Western Region within six months of receipt of the Final Order.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 11\n5. With respect to the violation of section 195.589(c) (Items 13(1) and 13(2)),\nRespondent must inspect the pipelines or portions of its pipelines that are exposed to\nthe atmosphere at the Lompoc Oil and Gas Plant facility and Platform Irene for\nevidence of atmospheric corrosion as required by section 195.583(a) and provide the\ninspection records to the Director, Western Region within six months of receipt of the\nFinal Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nPHMSA requests that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $200,000, as adjusted for inflation (see 49 CFR § 190.223 for adjusted amounts), for\neach violation for each day the violation continues or in referral to the Attorney General for\nappropriate relief in a district court of the United States.\nWARNING ITEMS\nWith respect to Items 7 and 8, the Notice alleged probable violations of Part 195, but identified\nthem as warning items pursuant to section 190.205. The warnings were for:\n49 CFR § 195.412(a) (Item 7) ─ Respondent’s alleged failure to provide right-of-\nway inspection records from 2019 and 2020 for the onshore segment of its eight-\ninch hazardous liquid pipeline; and\n49 CFR § 195.420(b) (Item 8) ─ Respondent’s alleged failure to provide\ninspection records for each mainline valve from 2019 and 2020.\nFMOG presented information in its Response showing that it had taken certain actions to address\nthe cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nUnder 49 CFR § 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 CFR § 190.243. The terms of the\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 12\norder, including corrective action, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay. The terms and conditions of this Final Order are effective upon service in\naccordance with 49 CFR § 190.5.\nDigitally signed by LINDA\nLINDA GAIL GAIL DAUGHERTY\nDate: 2025.09.08\nDAUGHERTY 17:09:07 -04'00' September 10, 2025\n___________________________________ __________________________\nLinda Daugherty Date Issued\nActing Associate Administrator\nfor Pipeline Safety\n\n52023031NOPV_Closure Letter_03202026_(22-232626)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\nVIA ELECTRONIC MAIL TO: TCantral@fmi.com\n12300 W. Dakota Ave., Suite 340\nLakewood, CO 80228\nMarch 20, 2026\nTodd Cantrall\nVice President of Operations Oil and Gas\nFreeport-McMoRan Oil & Gas\n21 Waterway Ave., Suite 250\nThe Woodlands, TX 77380\nCPF 5-2023-031-NOPV\nClosure Letter\nDear Mr. Cantrall:\nOn September 10, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Freeport-McMoRan Oil and Gas a Final Order in the above-referenced case. This\nOrder included a Compliance Order. Based on our review of the documentation you provided, it\nhas been determined that you have complied with the terms of this Order for Item 5, 6, 12, 13(1),\nand 13(2).\nWith respect to the violation of section 195.573(a)(2) (Item 11), the Compliance Order stated,\nthe Respondent must perform a close-interval survey and provide records of the completed work\nto the Director, Western Region within six months of receipt of the Final Order. PHMSA\nacknowledges the idle status of this asset since December 2023 and hereby approves the\npostponement of the close-interval survey until the pipeline returns to service.\nAccordingly, this case is now closed, and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\n\n\n\nSincerely,\nFor Dustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 T. Nguyen (22-232626)\nAndrew Kendrick, Director of Pipelines, Akendrick@dcorllc.com\n2\n\n52023031NOPV_Final Order_09102025_(22-232626)_txt.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\nAdministration\n1200 New Jersey Avenue, SE\nWashington, DC 20590\nSeptember 10, 2025\nVIA ELECRONIC MAIL TO: tcantrall@fmi.com\nTodd Cantrall\nVice President of Operations Oil and Gas\nFreeport-McMoRan Oil & Gas\n21 Waterway Ave., Suite 250\nThe Woodlands, TX 77380\nRe: CPF No. 5-2023-031-NOPV\nDear Mr. Cantrall:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws two of\nthe allegations of violation, makes other findings of violation, withdraws the proposed civil\npenalty, and specifies actions that need to be taken by Freeport-McMoRan Oil & Gas to comply\nwith the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Western Region, this enforcement action will be\nclosed. Service of the Final Order by e-mail is effective upon the date of transmission and\nacknowledgement of receipt as provided under 49 CFR § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nActing Associate Administrator\nfor Pipeline Safety\nEnclosures\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 2\nMr. Dave Willis, Pipeline Integrity Manager, DCOR LLC, dwillis@dcorllc.com\nMs. Heather Carreno, FMOG Primary Compliance, DCOR LLC, hcarreno@dcorllc.com\nMr. David Rose, Director, Environmental Health and Safety, FMOG, drose@dcorllc.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 )\nFreeport-McMoRan Oil & Gas, ) CPF No. 5-2023-031-NOPV\na subsidiary of Freeport-McMoRan, )\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom October 4 through 7, 2022, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of Freeport-McMoRan Oil & Gas’s (FMOG or\nRespondent) eight-inch hazardous liquid pipeline that originates at Platform Irene and terminates\nat the Lompoc Oil and Gas Plant in Lompoc, California. FMOG is a wholly owned subsidiary of\nFreeport-McMoRan, a U.S.-based natural resource company with a global portfolio of mineral\nassets.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated October 11, 2023, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 CFR § 190.207, the\nNotice proposed finding that FMOG had committed 11 violations of 49 CFR Parts 194 and 195,\nproposed assessing a civil penalty of $87,800 for the alleged violations, and proposed ordering\nRespondent to take certain measures to correct the alleged violations. The Notice also included\nan additional two warning items pursuant to 49 CFR § 190.205, which warned Respondent to\ncorrect the probable violations or face possible future enforcement action.\nFMOG responded to the Notice by letter dated December 8, 2023 (Response). FMOG contested\nseveral of the allegations, offered additional information in response to the Notice, and requested\nthat the proposed civil penalty be reconsidered. Respondent did not request a hearing and\ntherefore has waived its right to one.\n\n\n\nCPF No. 5-2023-031-NOPV\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 CFR Parts 194 and 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 CFR § 194.7(b), which states:\n§ 194.7 Operating restrictions and interim operating authorization.\n(a) . . . .\n(b) An operator must operate its onshore pipeline facilities in\naccordance with the applicable response plan.\nThe Notice alleged that Respondent violated 49 CFR § 194.7(b) by failing to operate its onshore\npipeline facilities in accordance with the applicable response plan. Specifically, the Notice\nalleged that FMOG failed to provide records to demonstrate that the oil spill response drill had\nbeen conducted as required by its Oil Spill Response Plan, Section 9.2 - Spill Response Drills.\nIn its Response, FMOG contested Item 1 and stated it provided records located after PHMSA’s\ninspection that indicated compliance with section 194.7(b).\nIn a recommendation for final action submitted pursuant to section 190.209(b)(7), the Director\nrecommended withdrawing the alleged violation of section 194.7(b).\nBased upon the foregoing, I hereby order that Item 1 be withdrawn.\nItem 2: The Notice alleged that Respondent violated 49 CFR § 194.117(b), which states:\n§ 194.117 Training.\n(a) . . . .\n(b) Each operator shall maintain a training record for each individual\nthat has been trained as required by this section. These records must be\nmaintained in the following manner as long as the individual is assigned\nduties under the response plan:\n(1) Records for operator personnel must be maintained at the operator’s\nheadquarters; and\n(2) Records for personnel engaged in res","truncated":true,"body_characters":65910}