COLONIAL PIPELINE CO — Notice of Amendment

case documentOfficial PDF120105002M_NOA_02162010.pdf#

case documentOfficial PDF120105002M_NOA_02162010_text.pdf#

party submissionOfficial PDF120105002M_Operator Response to NOA_03172010.pdf#

120105002M_Order Directing Amendment_06132011_text.pdf, page 1Official PDFMr. Tim Felt President and Chief Executive Officer Colonial Pipeline Company 1185 Sanctuary Parkway, Suite 100 Alpharetta, GA 30009-4738 Re: CPF No. 1-2010-5002M Dear Mr. Felt: Enclosed please find the Order Directing Amendment issued in the above-referenced case. It withdraws one allegation and finds that the other inadequate procedures cited in the Notice of Amendment have been satisfactorily amended. Therefore, this case is now closed. Service of the Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure cc: Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, Pipeline Safety Mr. Byron Coy, P.E., Director, Eastern Region, PHMSA Mr. Doug Belden, Vice President and General Manager-Operations, Colonial Pipeline Company CERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0075 9435]#

120105002M_Order Directing Amendment_06132011_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Colonial Pipeline Company, ) CPF No. 1-2010-5002M ) ) ) Respondent. ) ____________________________________) ORDER DIRECTING AMENDMENT On October 17, 2006, pursuant to 49 U.S.C. § 60117, a representative of the Virginia State Corporation Commission, as agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of Colonial Pipeline Company (Colonial or Respondent) in Chesapeake, Virginia. Colonial is the operator of a 5,519-mile pipeline system, which delivers petroleum products from refineries in Texas, Louisiana, Mississippi, and Alabama to terminals in the South and Eastern United States. The investigation arose out of an incident that occurred at the Chesapeake Terminal on October 16 and 17, 2006, when Tank #9 overflowed while receiving petroleum products from the Colonial pipeline. At the time of the incident, a high-level alarm failed to communicate the unsafe condition to the Colonial Operation and Control Center (OCC) in Atlanta, Georgia. As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated February 16, 2010, a Notice of Amendment. In accordance with 49 C.F.R. § 190.237, the Notice proposed finding that certain of Respondent’s written operations and maintenance procedures were inadequate and proposed that Respondent amend its procedures. Specifically, the Notice alleged inadequacies in: (1) Respondent’s procedures for correcting an unsafe condition as required by § 195.401(b); (2) Respondent’s procedures for monitoring unattended facilities not equipped to fail safe as required by § 195.402(c)(9); and (3) Respondent’s procedures for communications between the control center and the local tank facility as required by § 195.408. Colonial responded to the Notice by letters dated March 17, 2010, and April 12, 2010 (Response). Respondent contested two of the procedural inadequacies, presented information in response to the other inadequacies, and requested a hearing. Following discussions with Respondent, the Director agreed to modify the allegation that Colonial’s procedures for correcting an unsafe condition failed to comply with § 195.401(b) to clarify that it extended only#

120105002M_Order Directing Amendment_06132011_text.pdf, page 32 to Respondent’s pipeline facilities and not the tank (which was not operated by Colonial). Such allegation is hereby modified. The Director also agreed to withdraw the allegation that Respondent’s procedures for monitoring unattended facilities not equipped to fail safe required under § 195.402(c)(9) were inadequate. Such allegation is hereby withdrawn. Based on the Director’s actions, by letter dated August 3, 2010, Colonial withdrew its request for a hearing, thereby authorizing the entry of this Order without further notice. In its Response, Colonial explained that following the incident it amended its procedures for delivery of product and communications procedures to comply with §§ 195.401(b) and 195.408 and submitted copies of its amended procedures which the Director has reviewed and determined to be satisfactory. Accordingly, based on the results of such review, I find that Respondent’s original procedures for correcting an unsafe condition and Respondent’s communications procedures as described in the Notice were inadequate to ensure safe operation of its pipeline system, but that Respondent has corrected the identified inadequacies. As stated above, PHMSA has withdrawn the allegation that Respondent’s procedures for monitoring unattended facilities not equipped to fail safe were inadequate with respect to § 195.402(c)(9). Therefore, no need exists to order Colonial to amend its procedures. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#