Stakeholder Communications

This report represents the full range of civil administrative enforcement actions that PHMSA brings against pipeline owners and operators. It does not reflect those cases which the agency has referred to other federal officials for criminal prosecution, nor does it include more egregious civil cases that are often referred to the U. S. Department of Justice for judicial enforcement. There are five different types of civil administrative enforcement actions, each described below in more detail. The chart shows the total number of Corrective Action Orders, Notices of Probable Violations, Notices of Amendment, and Warning Letters issued in a given year, including the amount of civil penalties that are proposed. With the exception of Warning Letters, PHMSA "closes" an enforcement case once all necessary corrective actions have been taken, all inadequate procedures corrected, and all civil penalties paid. (See also the Enforcement Actions Resolved Tab.)

Corrective Action Orders: PHMSA may issue a Corrective Action Order if it determines that a particular pipeline represents a serious hazard to life, property, or the environment. They usually address urgent situations arising out of an accident, spill, or other significant, immediate, or imminent safety or environmental concern. In a Corrective Action Order, PHMSA identifies actions that must be taken by the operator to assure safe operation. These actions may include the shutdown of a pipeline or operation at reduced pressure, physical inspection or testing of the pipeline, repair or replacement of defective pipeline segments, and similar measures. Corrective Action Orders are described in 49 CFR 190.233.

Notices of Probable Violation: Notices of Probable Violations (NOPVs) are commonly used as an enforcement tool. After routine inspections, incident investigations, or other oversight activity by authorized Federal or Interstate Agent pipeline inspectors, the PHMSA Regional Director will determine if probable violations have occurred, and, if appropriate, issue an NOPV to the operator. The NOPV alleges specific regulatory violations and, where applicable, proposes appropriate corrective action in a Compliance Order and/or civil penalties. The operator has a right to respond to the NOPV and to request an administrative hearing. The administrative enforcement procedures and other regulations governing the enforcement program are described in 49 CFR 190 Subpart B "Enforcement."

Notices of Amendment: PHMSA inspections, incident investigations, and other oversight activities routinely identify shortcomings in an operator's plans and procedures under PHMSA regulations. In these situations, PHMSA issues a Notice of Amendment (NOA) letter alleging that the operator's plans and procedures are inadequate and requiring that they be amended. The operator has a right to respond to the Notice and to request an administrative hearing. Notices of Amendment and the procedures for their issuance and enforcement are described in 49 CFR 190.237.

Warning Letters: For some lower risk probable violations and program deficiencies, PHMSA has the option of issuing a Warning Letter notifying the operator of alleged violations and directing it to correct them or be subject to further enforcement action. PHMSA then follows up on these items during subsequent inspections or through other interactions with the operator. Warning Letters are described in 49 CFR 190.205.

This report represents the resolution of various types of enforcement actions against operators, and shows the number of Corrective Action Orders, Final Orders, Notices of Amendment, and Consent Orders that have either been closed or issued in a given year, including the final amount of civil penalties that were assessed. When an enforcement action is shown as "closed", PHMSA has verified that all of the corrective actions have been successfully completed and that any inadequate procedures that were identified successfully addressed. Enforcement actions shown as "issued" mean that corrective actions have been established that are acceptable to PHMSA, and that civil penalty assessments have been finalized. (See also the Enforcement Actions Initiated Tab.)

Corrective Action Orders Closed: When PHMSA verifies that all of the corrective actions identified in a Corrective Action Order have been successfully completed by the operator, the Order is closed.

Final Orders Issued: After an operator has been given an opportunity to respond to a Notice of Probable Violation, the Associate Administrator for Pipeline Safety issues a Final Order, making findings of fact and ordering appropriate relief, if any. Civil penalties may be assessed and/or the operator may be required to comply with specified corrective actions. Only after PHMSA verifies that all corrective actions specified in Compliance Orders have been successfully completed and/or civil penalties paid are Final Orders considered "closed". Final Orders are described in 49 CFR 190.213.

Civil Penalties Assessed: Some Final Orders direct operators to pay civil penalties. This table shows the total civil penalties assessed in the Final Orders issued during a given calendar year. Because some Cases take more than a year to resolve, some of these assessed civil penalties are for Cases initiated in prior years.

Notices of Amendment Closed: After the operator has an opportunity respond, to defend its actions or provide further information to clarify the alleged inadequate procedures, PHMSA confirms whether or not improvements to procedures are required. After PHMSA verifies that the operator's procedures have been amended and each of the inadequacies successfully addressed, the enforcement Case is closed.

Consent Orders Issued: Once PHMSA has issued a Corrective Action Order or given notice to an operator of other proposed enforcement action, PHMSA and the operator may occasionally agree to the issuance of a Consent Order in lieu of a Compliance Order or the imposition of civil penalties. In a Consent Order, the operator agrees to the jurisdictional facts of the case and agrees to implement the specific actions in the Consent Order by the required deadlines. Should the operator not comply with the Consent Order terms, PHMSA can enforce its terms as the parties have agreed. Consent Orders can thus offer various advantages over more traditional enforcement remedies. They can expedite the resolution of cases, facilitate future enforcement action by PHMSA, and require operators to take additional measures beyond those required by regulation, thus achieving a greater level of safety. Consent Orders are described in 49 CFR 190.219.