Chapter 02. Enforcement and Penalties
Regulation .01 Inspections.LinkCopy Citation
The Engineering Division may conduct periodic inspections of records and property in the possession, custody, or control of a hazardous liquid pipeline operator to determine compliance with the federal Hazardous Liquid Pipeline Safety Act, 49 U.S.C. Chapter 601 or Public Utilities Article, Annotated Code of Maryland.
Regulation .02 Inspection Follow-Up — Specific Information Request.LinkCopy Citation
A.
After a complaint, report, or inspection, the Engineering Division may send an operator a specific information request.
B.
An operator shall respond to the Engineering Division within 5 working days after receipt of a specific information request relating to an accident reportable under 49 CFR §195.50.
C.
Except as provided under §B of this regulation, an operator shall respond within 30 days after receipt of a specific information request.
D.
The Commission may waive the requirements of §B or C of this regulation upon written request from an operator demonstrating sufficient cause.
Regulation .03 Reportable Accident Investigation.LinkCopy Citation
A.
After an accident reportable under 49 CFR 195, a representative of the Commission may:
(1)
Interview personnel;
(2)
Examine equipment or pipe;
(3)
Request issuance of a subpoena for production of equipment or pipe relating to the incident for independent preservation;
(4)
Examine related documents;
(5)
Order independent laboratory tests of equipment or pipe; or
(6)
Take other investigative measures as needed to complete a comprehensive independent investigation.
B.
An operator shall preserve all equipment or pipe which may have contributed to an accident until the investigation by the Division is completed.
Regulation .04 Reportable Accident Testing.LinkCopy Citation
A.
Testing.
(1)
After a reportable accident, an operator shall test all piping directly associated with the accident or which may have contributed to the accident, unless evidence clearly indicates the cause and origin of the accident.
(2)
As early as possible, an operator shall properly tag and secure for examination or testing all pipeline components which may have contributed to the accident.
(3)
If appropriate, the Commission or the operator may select a sample of the failed pipeline facility or equipment for laboratory examination.
B.
Results Reported.
(1)
An operator shall report the results of a test under §A of this regulation to the Division within 10 days of the completion of the test, or as soon as possible.
(2)
Test results under §A(1) of this regulation shall include the:
(a)
Time and date of the test;
(b)
Specific location of the pipeline or pipeline section tested, including a suitable map of the pipeline route;
(c)
Results; and
(d)
Name of the person responsible for testing.
Regulation .05 Notice of Probable Violation (NOPV).LinkCopy Citation
A.
General.
(1)
The Division may issue to an operator an NOPV upon finding good cause to believe a violation of the federal pipeline safety laws under 49 U.S.C. Chapter 601 or Public Utilities Article, §§11-201—11-206, Annotated Code of Maryland, has occurred.
(2)
An NOPV may contain a proposed compliance order.
(3)
An operator shall respond to the Division in writing within 30 days after receipt of an NOPV.
(4)
The Commission may waive the requirements of §A(3) of this regulation after a written request from an operator demonstrating sufficient cause.
B.
Contents of the Notice of Probable Violation. An NOPV shall include:
(1)
A statement identifying the statute, regulation, or rule allegedly violated by an operator;
(2)
A description of the evidence indicating a possible violation;
(3)
Notice of response options available to the operator;
(4)
If appropriate, the amount of the proposed civil penalty and the maximum civil penalty applicable under law; and
(5)
If appropriate, a statement of the required remedial action.
C.
Response Options. An operator shall respond to an NOPV as follows:
(1)
If an NOPV contains a proposed compliance order, an operator may:
(a)
Agree to the proposed compliance order;
(b)
Request the execution of a consent order;
(c)
Object to the proposed compliance order and submit a written explanation, information, or other material in answer to the allegations in the notice; or
(d)
Request a hearing under Public Utilities Article, Annotated Code of Maryland; or
(2)
If an NOPV contains a proposed civil penalty, an operator may:
(a)
Pay the penalty;
(b)
Submit a compromise to the proposed civil penalty;
(c)
Object to the proposed civil penalty and submit a written explanation, information, or other material to mitigate the proposed civil penalty; or
(d)
Request a hearing under Public Utilities Article, Annotated Code of Maryland.
Regulation .06 Review by the Chief Engineer.LinkCopy Citation
If an operator objects to the proposed compliance order or civil penalty and submits a written explanation, information, or other material in response to an NOPV, the chief engineer shall review the submission and determine whether to:
A.
Negotiate further, modify, or withdraw the NOPV; or
B.
File a complaint under Public Utilities Article, §3-102, Annotated Code of Maryland.
Regulation .07 Consent Order.LinkCopy Citation
A.
Before the issuance of a compliance order, the Division may execute a consent order jointly with an operator.
B.
An executed consent order shall contain:
(1)
An admission by an operator of all jurisdictional facts; and
(2)
A description of any actions required by an operator and the time by which the actions shall be accomplished.
Regulation .08 Civil Penalties.LinkCopy Citation
A.
Procedure. After an investigation and a determination by the Division that there is good cause to believe an operator violated a minimum pipeline safety requirement, the Commission may assess or negotiate a civil penalty under Public Utilities Article, §11-206, Annotated Code of Maryland.
B.
Penalty Considerations. In proposing a civil penalty, the Division shall consider the criteria in Public Utilities Article, §11-206, Annotated Code of Maryland.
C.
Payment Procedures. An operator shall pay the proposed or negotiated civil penalty by submitting to the Commission a certified check or money order in the correct amount, payable to the Public Service Commission of Maryland.
Regulation .09 Hazardous Facility Notice.LinkCopy Citation
A.
General. After an inspection, report, or complaint, the Division may find a particular pipeline facility to be hazardous to life, property, or the environment if:
(1)
The equipment, material, or technique used in the construction of the pipeline facility or its components poses a hazard to life, property, or the environment; or
(2)
The operation of the pipeline facility poses a hazard to life, property, or the environment.
B.
Determining Factors. In determining if a pipeline facility is hazardous to life or property, the Division may consider the following:
(1)
The characteristics of the pipe and other equipment used in a pipeline facility, including age, manufacturer, physical properties, resistance to corrosion and deterioration, and methods of manufacture, construction, and assembly;
(2)
The nature of the materials transported by the facility, including the corrosive and deteriorative qualities, and the sequence in which the materials are transported through the pipeline;
(3)
The location of the pipeline facility;
(4)
The climatic and geologic conditions associated with the area in which the pipeline is located;
(5)
The population, population density, and growth patterns of the area in which the pipeline is located; or
(6)
The adequacy of records demonstrating the absence of a hazardous condition.
C.
Notice.
(1)
If the Division finds a pipeline facility to be hazardous to life or property, the chief engineer shall issue a hazardous pipeline facility notice.
(2)
A hazardous pipeline facility notice shall provide an opportunity for a Commission hearing.
(3)
The chief engineer may request that the Commission issue an order setting a hearing date and finalizing a hazardous pipeline facility order before a hearing under this section, if failure to do so would result in the likelihood of serious harm to life or property.
D.
Content.
(1)
A hazardous pipeline facility notice shall contain:
(a)
A finding that the pipeline facility is hazardous to life, property, or the environment;
(b)
The facts on which the finding is based;
(c)
The legal basis of the notice;
(d)
The nature and description of the particular corrective action required of the operator; and
(e)
The date by which the required action shall be taken or completed and, if appropriate, the duration of the notice.
(2)
Corrective action under §D(1)(d) of this regulation may include:
(a)
Suspended or restricted use of the pipeline facility;
(b)
Physical inspection;
(c)
Testing;
(d)
Repair;
(e)
Replacement; or
(f)
Other action as appropriate.
Chapter annotations
Authority: Public Utilities Article, §§11-201—11-206, Annotated Code of Maryland
History: Effective date: January 20, 2003 (30:1 Md. R. 29)