{"operation":"document","citation":"CPF 120105004M","title":"KINDER MORGAN LIQUID TERMINALS, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2010-04-07","effective_on":null,"summary":"CLOSED notice of amendment citing 195.505(b), 195.505(g), 195.505(h).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120105004m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120105004m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120105004m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120105004M","body":"Notice of Amendment involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.505(b),  195.505(g),  195.505(h). The case was opened on 2010-04-07 and is reported as closed as of 2011-04-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120105004M_Closure Letter_04122011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Closure%20Letter_04122011.pdf\n\n120105004M_Closure Letter_04122011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Closure%20Letter_04122011_text.pdf\n\n120105004M_Notice of Amendment_04072010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Notice%20of%20Amendment_04072010.pdf\n\n120105004M_Notice of Amendment_04072010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Notice%20of%20Amendment_04072010_text.pdf\n\n120105004M_Operator_Response_to_NOA-(with_response_attachments_A-_E)_08272010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Operator_Response_to_NOA-(with_response_attachments_A-_E)_08272010.pdf\n\n120105004M_Order Directing Amendment_03042011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Order%20Directing%20Amendment_03042011.pdf\n\n120105004M_Order Directing Amendment_03042011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120105004M/120105004M_Order%20Directing%20Amendment_03042011_text.pdf\n\n120105004M_Order Directing Amendment_03042011_text.pdf\n\nMAR 04 2011\nMr. David C. Vattimo\nRegional Vice President for Terminals\nKinder Morgan Liquids Terminals, LLC\n8500 W. 68th Street\nArgo, IL 60501\nRe: CPF No. 1-2010-5004M\nDear Mr. Vattimo:\nEnclosed please find the Order Directing Amendment issued in the above-referenced case. It\nmakes a finding of inadequate procedures, finds that Kinder Morgan Liquids Terminals, LLC has\naddressed some of the inadequacies in its procedures that were cited in the Notice of\nAmendment, and requires that Kinder Morgan Liquids Terminals, LLC make a certain\namendment to its operator qualification program. When the amendment of procedure is\ncompleted, as determined by the Director, Eastern Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Byron E. Coy, Director, Eastern Region, PHMSA\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED [7005 1160 0001 0041 3528]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nKinder Morgan Liquids Terminals, LLC, ) CPF No. 1-2010-5004M\n)\n)\n)\nRespondent. )\n____________________________________)\nORDER DIRECTING AMENDMENT\nOn August 18-21, 2008, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of Kinder Morgan Liquids Terminal, LLC\n(Kinder Morgan or Respondent)’s Operator Qualification (OQ) records and procedures in Perth\nAmboy, New Jersey. Kinder Morgan, a subsidiary of Kinder Morgan Energy Partners, L.P.,\noperates more than 180 terminals with approximately 100 million barrels of capacity for\npetroleum products and chemicals.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated April 7, 2010, a Notice of Amendment (NOA). The NOA alleged inadequacies in\nRespondent’s operator qualification (OQ) program, and proposed in accordance with 49 C.F.R.\n§ 190.237, that Respondent amend its procedures.\nKinder Morgan responded to the Notice by letters dated August 4, 2010, August 27, 2010, and\nSeptember 29, 2010 (collectively, Response).\noffered additional information in response to the Notice, and requested additional guidance\nregarding this alleged inadequacy. Respondent also contested the allegations in Items 2, 3 and 4,\nbut nonetheless provided information concerning the corrective actions it had taken and\nsubmitted copies of its revised procedures with respect to Items 2, 3 and 4. Respondent did not\nrequest a hearing and therefore has waived its right to one.\n2 Respondent contested the allegation in Item 1,\nThe Director has reviewed the amended procedures submitted by Respondent. Based on the\nresult of the review, I find that Respondent’s amendments adequately address Items 2, 3, and 4 in\nthe NOA. For the reasons below, I find that Respondent failed to address all of the inadequacies\nin Item 1 and that Kinder Morgan must amend its OQ program to address the specified tasks.\nThe Notice alleged that Respondent violated 49 C.F.R. Part 195 as follows:\n1 Kinder Morgan, http://www.kindermorgan.com (last visited January 7, 2011).\n2 By letter dated August 11, 2010, PHMSA granted Respondent an extension until August 31, 2010 to respond.\n\n\n\n2\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.505(h), which states:\n§ 195.505 Qualification program.\nEach operator shall have and follow a written qualification program.\nThe program shall include provisions to:\n(a) ….\n(h) After December 16, 2004, provide training, as appropriate, to\nensure that individuals performing covered tasks have the necessary\nknowledge and skills to perform the tasks in a manner that ensures safe\noperation of pipeline facilities….\nThe NOA alleged that Respondent’s procedures were inadequate with respect to 49 C.F.R\n§ 195.505(h) because the training material for some of Kinder Morgan’s covered tasks did not\ninclude task-specific abnormal operating conditions (AOCs).\nKinder Morgan indicated in its Response that it found it difficult to address this alleged\nprocedural inadequacy because OPS did not identify the specific covered tasks that lacked task-\nspecific AOCs in the training material. Kinder Morgan requested additional guidance regarding\nthis alleged inadequacy. However, Kinder Morgan noted that it was transitioning to a task list\nbased on ASME B31Q (Pipeline Personnel Qualification Standard) in January 2011 that will\nexplicitly state the task-specific AOCs.\nWhile there were some questions in the online test that related to AOCs, Respondent was not\nable to produce training materials that identified task-specific AOCs. Having reviewed the\nevidence, I find that on account of this inadequacy in the training materials, Kinder Morgan did\nnot have an adequate OQ program at the time of the inspection. Accordingly, pursuant to 49\nU.S.C. § 60108(a) and 49 C.F.R § 190.237, Respondent is ordered to make the following\nrevisions to its integrity management program procedures. Respondent must –\n1. Modify its Covered Task 102.10 – Atmospheric Corrosion –Surface Preparation\nEvaluation Reference Manual to include identification of the task-specific AOCs and/or\nreactions to AOCs.\n2. Modify its Covered Task 105.08 – Operations of Pipeline System – Start Pipeline\nEvaluation Reference Manual – to include identification of the task-specific AOCs and/or\nreactions to AOCs.\n3. Modify its Covered Task 102.5 – Read Rectifier Evaluation Reference Manual – to\ninclude identification of the task-specific AOCs.\n4. Submit the amended procedures from Items 1 through 3 above to the Director, Eastern\nRegion, Office of Pipeline Safety, Pipeline and Hazardous Materials Safety\nAdministration, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628 within 30\ndays of receipt of this Order Directing Amendment.\n\n\n\n3\n5. Kinder Morgan must also provide a copy of the proposed revision to the OQ program\nprocedure noted in Respondent’s August 27, 2010 letter (a task list based on B31Q that\nexplicitly states the task-specific AOCs) within 30 days following receipt of this Order\nDirecting Amendment.\nWith respect to the submission of amended procedures, the Director may notify\nRespondent if any or all of the procedures have been amended satisfactorily. If further\nmodification is necessary, the Director may require Respondent to modify the submission\nto cure the deficiencies. If the Director finds deficiencies and orders further\nmodification, Respondent must proceed to take all action to correct its procedures to\ncomply with the Director’s order. Respondent must correct all deficiencies within the\ntime specified by the Director and resubmit the procedures for review.\n6. If a resubmitted item is disapproved in whole or in part, the Director may again require\nRespondent to correct the deficiencies in accordance with the forgoing procedures, or the\nDirector may otherwise proceed to enforce the terms of the Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Order Directing Amendment are effective upon service in\naccordance with 49 C.F.R § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n120105004M_Closure Letter_04122011_text.pdf\n\nU.S. Department 820 Bear Tavern Road, Suite 103\nOf Transportation West Trenton, NJ 08628\nPipeline and 609.989.2171\nHazardous Materials\nSafety Administration\nOVERNIGHT EXPRESS MAIL\nApril 12, 2011\nKinder Morgan Liquids Terminals LLC\nMr. David Vattimo, Regional Vice President for Terminal\n8500 West 68th Street\nArgo, IL 60501-0409\nCPF 1-2010-5004M\nDear Mr. Vattimo:\nOn August 18-21, 2008, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to chapter 601 of 49 United States Code, inspected Kinder\nMorgan Liquids Terminals LLC (KM) Operator Qualification (OQ) records and procedures in\nPerth Amboy, New Jersey. As a result of the inspection, KM was issued a Notice of Amendment\non April 7, 2010, which proposed amendment of your procedures.\nKinder Morgan submitted its amended procedures on April 8, 2011. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120105004M_Notice of Amendment_04072010_text.pdf\n\nU.S. Department 820 Bear Tavern Road, Suite 306\nOf Transportation West Trenton, NJ 08628\nPipeline and 609.989.2171\nHazardous Materials\nSafety Administration\nNOTICE OF AMENDMENT\nEXPRESS OVERNIGHT DELIVERY\nApril 7, 2010\nKinder Morgan Liquids Terminals LLC\nMr. David Vattimo, Regional Vice President for Terminals\n8500 West 68th Street\nArgo, IL 60501-0409\nCPF 1-2010-5004M\nDear Mr. Vattimo:\nOn August 18-21, 2008, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Kinder\nMorgan Liquids Terminals LLC (KM) Operator Qualification (OQ) records and procedures in\nPerth Amboy, New Jersey.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nKM’s OQ Program, as described below:\n1. § 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(h) After December 16, 2004, provide training, as appropriate, to ensure that\nindividuals performing covered tasks have the necessary knowledge and skills to\nperform the tasks in a manner that ensures the safe operation of pipeline facilities;\nTraining material on task-specific abnormal operating conditions (AOCs) for KM’s covered\ntasks are not provided for all covered tasks.\n\n\n\nCPF 1-2010-5004M\nKM uses multiple sources of training material to train operator personnel. This includes new\nemployee orientation, computer based training, O&M Procedures, Performance Evaluation Study\nGuides, Evaluation Reference Manuals, Skill Checklists, and Knowledge Tests, to train operator\npersonnel. This material was reviewed for selected covered tasks. Some covered tasks had no\ntask specific AOCs identified in the training material, nor did KM have documentation showing\nthat these covered tasks were evaluated for potential task specific AOCs.\n2. §195.505 Qualification program\n§195.505 (b) Each operator shall have and follow a written qualification program. The\nprogram shall include provisions to: (b) Ensure through evaluation that individuals\nperforming covered tasks are qualified.\nThe OQ Program does not identify a level of performance criteria for passing written\nevaluations. While the operator states that 80% is used for passing an evaluation, this is not\nidentified in the OQ Program.\n3. §195.505 Qualification program\n§195.505(g) Each operator shall have and follow a written qualification program. The\nprogram shall include provisions to: (g) Identify those covered tasks and the\nintervals at which evaluation of the individual’s qualifications is needed.\nThe reevaluation intervals identified for the covered tasks noted below, and referenced in the\nKM OQ Program, are inconsistent with actual practice.\n• “welding on existing pipeline systems” (KM covered task 104.21) and\n• “general pipeline repair – Clock Spring” (KM covered task 104.12)\nKM follows API 1104 and ASME Section 9 for determining the reevaluation interval for\nwelding qualifications, which both require annual requalification. The KM OQ Program\nspecifies a requalification interval of every 3 years for “welding on existing pipeline systems”\n(KM covered task 104.21).\nKM follows the Clock Spring manufacturer’s recommended requalification interval of 1 year for\npersonnel performing this task. The KM OQ Plan specifies a requalification interval of every 3\nyears for “general pipeline repair – Clock Spring” (KM covered task 104.12).\n4. §195.505 Qualification program\n§195.505(g) Each operator shall have and follow a written qualification program. The\nprogram shall include provisions to: (g) Identify those covered tasks and the\nintervals at which evaluation of the individual’s qualifications is needed.\n120105004M_Notice of Amendment_04072010 2 of 3\n\n\n\nCPF 1-2010-5004M\nThe OQ Program does not specify the number of times an individual will be allowed to attempt\nto pass the evaluation process before a qualification is revoked.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue a Final Order.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the inadequacies\n(49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that you submit your\namended procedures to my office within 60 days of receipt of this Notice. This period may be\nextended by written request for good cause. Once the inadequacies identified herein have been\naddressed in your amended procedures, this enforcement action will be closed.\nIn correspondence concerning this matter, please refer to CPF 1-2010-5004M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n120105004M_Notice of Amendment_04072010 3 of 3","truncated":false,"body_characters":16965}