May 16, 2011 [OPIS] - The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) has proposed a $425,000 fine against Kinder Morgan Products Pipelines for alleged pipeline safety violations in New Jersey.
The proposed fine follows a PHMSA investigation into Kinder Morgan’s October 2009 accident in Perth Amboy, N.J.
As a result of PHMSA’s investigation, the agency found a total of seven probable violations related to the accident.
These violations include allegations that the company failed to have and follow written startup and shutdown procedures, and failed to have and use other measures to detect abnormal operating conditions.
The accident caused about 8,600 gallons of hazardous liquid to be released into the dike containment area around the company’s Perth Amboy Terminal.
The proposed fine is part of PHMSA’s notice of probable violation. The company will have 30 days to respond.
PHMSA regulates more than 2.5 million miles of pipeline nationwide, as well as the terminals that store fuels and offer blending services for ethanol and other products. Kinder Morgan’s Perth Amboy and Carteret terminals are at the center of hazardous liquid product movement in the Northeast.
