Mr. Charles C. Handly
Executive Vice President
Penn Octane Corporation
Two
820 Gessner,
Re: CPF No. 4-2004-5022
Dear Mr. Handly:
Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes a finding of violation and assesses a civil penalty. I acknowledge receipt of and accept your wire transfer for $5,000 as payment in full of the civil penalty assessed in the Final Order. The Final Order also acknowledges your completion of the proposed compliance order items to comply with the pipeline safety regulations. This case is now closed. Your receipt of the Final Order constitutes service of that document under
49 C.F.R. § 190.5.
Sincerely,
James Reynolds
Pipeline Compliance Registry
Office of Pipeline Safety
Enclosure
cc: Rod Seeley, Region Director
Southwest Region, OPS
CERTIFIED MAIL – RETURN RECEIPT REQUESTED
DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
______________________________
)
In the Matter of )
)
Penn Octane Corporation, ) CPF No. 4-2004-5022
)
Respondent )
______________________________)
FINAL ORDER
On May 20, 2004, in accordance with 49 C.F.R. § 190.207, the Director, Southwest Region, Office of Pipeline Safety (OPS), issued Respondent a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice). The Notice proposed finding that Respondent had violated 49 C.F.R. § 195.452(b)(2) and proposed assessing a civil penalty of $5,000 for the alleged violation. The Notice also proposed that Respondent take certain measures to correct the alleged violation.
After requesting
and receiving an extension of time to respond, Respondent submitted information
on September 16, September 20, and
Pursuant to 49 C.F.R. § 190.213 and 49 U.S.C. § 60122, I find that Respondent violated the following section of 49 C.F.R. Part 195, as more fully described in the Notice:
49 C.F.R. § 195.452(b)(2) – failing to include in the written integrity management program an identification of each Category 2 pipeline or pipeline segment by November 18, 2002.
This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. I assess Respondent a civil penalty of $5,000, already paid by Respondent.
The Notice also proposed a compliance order for the violation of 49 C.F.R. § 195.452(b)(2). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under Chapter 601. The Director, Southwest Region, OPS, has reviewed
2
the corrective action taken by Respondent and has indicated that the corrective action has achieved compliance with respect to this violation. Accordingly, since compliance has been achieved, it is not necessary to include the compliance terms in this order.
The terms and conditions of this Final Order are effective on receipt.
___________________________________ ____________________
Stacey Gerard Date Issued
Associate Administrator
for Pipeline Safety