{"operation":"document","citation":"CPF 52024001NOPV","title":"PAR HAWAII REFINING, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-12-12","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.420(b), 195.583(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024001nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024001nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52024001nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52024001NOPV","body":"Notice of Probable Violation involving PAR HAWAII REFINING, LLC. PHMSA's enforcement data identifies the cited regulations as 195.420(b),  195.583(a). The case was opened on 2024-12-12 and is reported as closed as of 2025-03-17. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52024001NOPV_Final Order_03172025 (24-297227).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024001NOPV/52024001NOPV_Final%20Order_03172025%20(24-297227).pdf\n\n52024001NOPV_Final Order_03172025 (24-297227)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024001NOPV/52024001NOPV_Final%20Order_03172025%20(24-297227)_text.pdf\n\n52024001NOPV_Operator Response to Notice_12262024_(24-297227).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024001NOPV/52024001NOPV_Operator%20Response%20to%20Notice_12262024_(24-297227).pdf\n\n52024001NOPV_PCO_12122024_(24-297227).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024001NOPV/52024001NOPV_PCO_12122024_(24-297227).pdf\n\n52024001NOPV_PCO_12122024_(24-297227)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52024001NOPV/52024001NOPV_PCO_12122024_(24-297227)_text.pdf\n\n52024001NOPV_Final Order_03172025 (24-297227)_text.pdf\n\nMarch 17, 2025\nVIA ELECTRONIC MAIL TO: ewright@parpacific.com\nEric Wright\nPresident\nPar Hawaii Refining, LLC\n91-325 Komohana Street\nKapolei, HI 96707\nRe: CPF No. 5-2024-001-NOPV\nDear Mr. Wright:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and finds that the proposed actions to comply with the pipeline safety regulations have\nbeen completed. This case is now closed. Service of the Final Order by e-mail is effective upon\nthe date of transmission and acknowledgement of receipt as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nfor Alan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMs. Maureen Burns, Transportation Safety Regulatory Manager, Par Hawaii Refining, LLC,\nmburns@parpacific.com\nMr. Chet L. Greene, Vice President, Mainland Logistics, Par Hawaii Refining, LLC,\n\n\n\nCPF No. 5-2024-001-NOPV\nPage 2\ncgreene@parpacific.com\nMs. Michelle Loveless, Pipeline Compliance Coordinator, Par Hawaii Refining, LLC,\nmloveless@parpacific.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nCPF No. 5-2024-001-NOPV\nPage 3\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\n)\n)\nPar Hawaii Refining, LLC, ) CPF No. 5-2024-001-NOPV\na subsidiary of Par Pacific Holdings, Inc., )\nRespondent. )\n)\n)\nFINAL ORDER\nOn December 12, 2024, pursuant to 49 C.F.R. § 190.207, the Director, Western Region, Office\nof Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Par Hawaii Refining,\nLLC (Respondent). The Notice proposed finding that Respondent had violated the pipeline\nsafety regulations in 49 C.F.R. Part 195 and proposed certain measures to correct the violations.\nRespondent did not contest the allegations of violation or corrective measures.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\n49 C.F.R. § 195.420(b) (Item 1) ─ Respondent failed to inspect each mainline valve\nto determine that it was functioning properly at least twice each calendar year but\nat intervals not exceeding 7 ½ months.\n49 C.F.R. § 195.583(a) (Item 2) ─ Respondent failed to inspect each onshore\npipeline or portion of pipeline exposed to the atmosphere for evidence of\natmospheric corrosion at least once every 3 calendar years, but with intervals not\nexceeding 39 months.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nThe Director has indicated that Respondent completed the actions proposed in the Notice to\ncorrect the violations. Therefore, it is not necessary to include the proposed compliance terms in\nthis Final Order.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n\n\n\n§ 190.5.\nfor Alan K. Mayberry Associate Administrator\nfor Pipeline Safety\nCPF No. 5-2024-001-NOPV\nPage 4\nDate Issued\n\n\n\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: EWright@parpacific.com\nDecember 12, 2024\nMr. Eric Wright\nPresident\nPar Hawaii\n91-325 Komohana Street\nKapolei, HI 96707\nCPF 5-2024-001-NOPV\nDear Mr. Wright:\nFrom November 5, 2024, to November 7, 2024, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.), inspected Par Hawaii’s Honolulu pipeline system in\nHonolulu, Hawaii.\nAs a result of the inspection, it is alleged that Par Hawaii has committed probable violations of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violations are:\n1. § 195.420 Valve maintenance.\n(a) …\n(b) Each operator must, at least twice each calendar year, but at intervals not\n\n\n\nexceeding 7 ½ months, inspect each mainline valve to determine that it is\nfunctioning properly. Each rupture-mitigation valve (RMV), as defined in § 195.2\nand not contained in a gathering line, or alternative equivalent technology that is\ninstalled under § 195.258(c) or § 195.418, must also be partially operated. Operators\nare not required to close the valve fully during the inspection; a minimum 25\npercent valve closure is sufficient to demonstrate compliance, unless the operator\nhas operational information that requires an additional closure percentage for\nmaintaining reliability.\nPar Hawaii failed to inspect each mainline valve to determine that it was functioning properly at\nleast twice each calendar year, with inspection intervals not exceeding 7 ½ months, as required\nby § 195.420(b). Specifically, Par Hawaii failed to inspect mainline valve MOV-2307 (A7) to\nensure it was functioning properly at least twice each calendar year, with intervals not exceeding\n7 ½ months. During the review of the LFM032-01 Mainline Valve Inspection Reports from 2020\nto 2024, it was found that MOV-2307 (A7) was not inspected during the following intervals:\n3/25/2020, 9/8/2020, 2/11/2021, 9/15/2021, 3/7/2022, 3/20/2023, 10/4/2023, and 3/5/2024.\nTherefore, Par Hawaii failed to inspect MOV-2307 (A7) to ensure it was functioning properly at\nleast twice each calendar year, with intervals not exceeding 7 ½ months, as required by §\n195.420(b).\n2. § 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is located: Then the frequency of inspection is:\nOnshore At least once every 3 calendar years, but\nwith intervals not exceeding 39 months.\nOffshore At least once each calendar year, but with\nintervals not exceeding 15 months.\nPar Hawaii failed to inspect each onshore pipeline or portion of pipeline exposed to the\natmosphere for evidence of atmospheric corrosion at least once every 3 calendar years, with\nintervals not exceeding 39 months, as required by § 195.583(a). Specifically, Par Hawaii failed\nto inspect MLV-16, MLV-17, and MLV-18A for evidence of atmospheric corrosion at least once\nevery 3 calendar years, with intervals not exceeding 39 months. During the inspection, the\nLFM028-01 Atmospheric Corrosion Inspection Reports for 2022 and 2024 were reviewed.\nPrevious atmospheric corrosion inspections were conducted in 2019.\nAs indicated by the inspection reports, on 12/6/2022, an atmospheric corrosion inspection was\nperformed on MLV-16, with the recommended action being: \"Active moderate corrosion on\nbolting and flanges needs to be arrested, inspected, and recoated.\" On 11/18/2024, the follow-up\natmospheric corrosion inspection was performed on MLV-16. The inspection and repair report\nindicated that the flanges and bolting were cleaned with power hand tools to arrest the active\ncorrosion present. A visual inspection was then performed on all atmospheric pipe and valve\n2\n\n\n\ncomponents, with no additional active corrosion present and no further repairs or replacements\nneeded.\nAccording to the inspection reports, on 12/6/2022, an atmospheric corrosion inspection was\nperformed on MLV-17, with the recommended action being: \"Vault needs to be drained and\ninspected.\" On 11/18/2024, the follow-up atmospheric corrosion inspection was performed on\nMLV-17. The inspection and repair report indicated the vault was drained and water washed\nclean. A visual inspection was then performed on all atmospheric pipe and valve components,\nwith no additional active corrosion present and no further repairs or replacements needed.\nThe inspection reports indicate that on 12/6/2022, an atmospheric corrosion inspection was\nperformed on MLV-18A, with the recommended action being: \"Denso wrap on blind flange\nneeds to be removed and vault piping re-inspected.\" On 11/18/2024, the follow-up atmospheric\ncorrosion inspection was performed on MLV-18A. The inspection and repair report indicated the\nexisting Denso wrap was removed and water washed clean. A visual inspection was then\nperformed on all atmospheric pipe and valve components, with no additional active corrosion\npresent and no further repairs or replacements needed, besides the application of a new Denso\nDensyl wrap.\nAccording to its inspection reports, Par Hawaii failed to inspect MLV-16, MLV-17, and MLV-\n18A for evidence of atmospheric corrosion by the end of 2022, since previous atmospheric\ncorrosion inspections were conducted in 2019, and Par Hawaii was unable to perform the\nrequired follow-up atmospheric corrosion inspections until 2024. Therefore, Par Hawaii failed to\ninspect MLV-16, MLV-17, and MLV-18A for evidence of atmospheric corrosion at least once\nevery 3 calendar years, with intervals not exceeding 39 months, as required by § 195.583(a).\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a\nrelated series of violations. For violation occurring on or after January 6, 2023, and before\nDecember 28, 2023, the maximum penalty may not exceed $257,664 per violation per day the\nviolation persists, up to a maximum of $2,576,627 for a related series of violations. For violation\noccurring on or after March 21, 2022, and before January 6, 2023, the maximum penalty may not\nexceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,412 for\na related series of violations. For violation occurring on or after May 3, 2021, and before March\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021, and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related series of violations. For violation occurring on or after July 31, 2019, and before\nJanuary 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the\nviolation persists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018, and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\n3\n\n\n\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to propose a civil penalty assessment at this time.\nProposed Compliance Order\nWith respect to Items 1 and 2 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to Par Hawaii. Please\nrefer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Enforcement Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If\nyou believe that any portion of your responsive material qualifies for confidential treatment\nunder 5 U.S.C. §552(b), along with the complete original document, you must provide a second\ncopy of the document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. § 552(b).\nFollowing your receipt of this Notice, you have 30 days to respond as described in the enclosed\nResponse Options. If you do not respond within 30 days of receipt of this Notice, this constitutes\na waiver of your right to contest the allegations in this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\nyou and to issue a Final Order. If you are responding to this Notice, we propose that you submit\nyour correspondence to my office within 30 days from receipt of this Notice. The Region\nDirector may extend the period for responding upon a written request timely submitted\ndemonstrating good cause for an extension.\nIn your correspondence on this matter, please refer to CPF 5-2024-001-NOPV, and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 J. Luo (#24-297227)\nMichelle Loveless, Pipeline Compliance Coordinator - MLoveless@parpacific.com\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Par Hawaii a Compliance Order incorporating the\nfollowing remedial requirements to ensure the compliance of Par Hawaii with the pipeline safety\nregulations:\nA. B. C. In regard to Item 1 of the Notice pertaining to failure to inspect mainline valve\nMOV-2307 (A7) to ensure it was functioning properly at least twice each calendar\nyear, with intervals not exceeding 7 ½ months, Par Hawaii must inspect each\nmainline valve to determine that it was functioning properly at least twice each\ncalendar year, with inspection intervals not exceeding 7 ½ months, as required by\n§ 195.420(b).\nIn regard to Item 2 of the Notice pertaining to failure to inspect MLV-16, MLV-\n17, and MLV-18 for evidence of atmospheric corrosion at least once every 3\ncalendar years, with intervals not exceeding 39 months, Par Hawaii must inspect\neach onshore pipeline or portion of pipeline exposed to the atmosphere for\nevidence of atmospheric corrosion at least once every 3 calendar years, with\nintervals not exceeding 39 months, as required by § 195.583(a).\nIt is requested (not mandated) that Par Hawaii maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Dustin Hubbard, Director, Western Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n5","truncated":false,"body_characters":16025}