Mr. Leroy Anderson
Vice President
Kaneb Pipe Line Company
7340 21^st Street North
Suite 200
Wichita, KS 67205

RE: CPF No. 3-2000-5007

Dear Mr. Anderson:

Enclosed is a Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes findings of violations of pipeline safety standards. Your receipt of the Final Order constitutes service of that document under 49 C.F.R. §190.5.

I acknowledge receipt of, and accept your wire transfer dated July 7, 2000, in the amount of $10,000 as payment in full of the civil penalty assessed against Kaneb in the Final Order. This case is now closed and no further enforcement action is contemplated with the respect to the matters involved in this case. Thank you for your cooperation in our joint effort to ensure pipeline safety.

Sincerely,

Gwendolyn M. Hill

Pipeline Compliance Registry

Office of Pipeline Safety

Enclosure

CERTIFIED MAIL - RETURN RECEIPT REQUESTED

DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590

In the Matter of )

Kaneb Pipe Line Company )

CPF No. 3-2000-5007)

Respondent. )

FINAL ORDER

On November 8, 1999, pursuant to 49 U.S.C. § 60117, a representative of the Office of Pipeline Safety (OPS) conducted an on-site pipeline safety inspection of Respondent's facilities and records in Salina, Kansas. As a result of the inspection, the Director, Central Region, OPS, issued to Respondent, by letter dated June 27, 2000, a Notice of Probable Violation and Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Respondent had committed violations of 49 C.F.R. §§ 195.402 (a) and 195.442 (a) and proposed assessing a civil penalty of $10,000 for the alleged violations.

FINDINGS OF VIOLATION

Respondent did not contest alleged violations § 195.402 (a) and 195.442 (a) in the Notice. Accordingly, I find that Respondent violated the following sections of 49 C.F.R. Part 195, as more fully described in the Notice:

49 C.F.R. § 195.402 (a) -- failing to follow written procedures for conducting normal operations; and

49 C.F.R. § 195.442 (a) -- failing to mark its pipeline upon notification of intent to excavate as required by the written program to prevent damage.

These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. I assess a civil penalty in the amount of $10,000, already paid by Respondent.

______________

Stacey Gerard Date Issued
Associate Administrator
for Pipeline Safety