{"operation":"document","citation":"CPF 120115008","title":"KINDER MORGAN LIQUID TERMINALS, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2011-10-11","effective_on":null,"summary":"CLOSED notice of probable violation citing 194.107(c)(1)(iv), 195.262(b)(1), 195.264(a), 195.310(a), 195.402(c)(3), 195.404(a)(1), 195.404(a)(3), 195.404(c)(3), 195.505(a), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120115008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120115008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120115008","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120115008","body":"Notice of Probable Violation involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulations as 194.107(c)(1)(iv),  195.262(b)(1),  195.264(a),  195.310(a),  195.402(c)(3),  195.404(a)(1),  195.404(a)(3),  195.404(c)(3),  195.505(a),  195.589(c). The case was opened on 2011-10-11 and is reported as closed as of 2015-08-13. Proposed civil penalty: $41,000. Assessed civil penalty: $41,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120115008_ NOPV-PCP-PCO_10112011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115008/120115008_%20NOPV-PCP-PCO_10112011.pdf\n\n120115008_ NOPV-PCP-PCO_10112011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115008/120115008_%20NOPV-PCP-PCO_10112011_text.pdf\n\n120115008_Closure Letter_08132015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115008/120115008_Closure%20Letter_08132015.pdf\n\n120115008_Closure Letter_08132015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115008/120115008_Closure%20Letter_08132015_text.pdf\n\n120115008_Consent Agreement and Order_07172013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115008/120115008_Consent%20Agreement%20and%20Order_07172013.pdf\n\n120115008_Consent Agreement and Order_07172013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115008/120115008_Consent%20Agreement%20and%20Order_07172013_text.pdf\n\n120115008_Closure Letter_08132015_text.pdf\n\nU.S. Department Of Transportation Pipeline and 609.989.2171\nHazardous Materials\nSafety Administration\n820 Bear Tavern Road, Suite 103\nWest Trenton, NJ 08628\nOVERNIGHT EXPRESS DELIVERY\nAugust 13, 2015\nCarlos Munguia\nVice President, Operations & Engineering\nKinder Morgan Liquid Terminals, LLC\n8500 W. 68th Street\nArgo, IL 60501\nCPF 1-2011-5008\nDear Mr. Munguia:\nOn July 17, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued Kinder\nMorgan Liquid Terminals, LLC (KMLT) a Consent Agreement and Order (Order) in the above-\nreferenced case. This Order incorporated the terms of a Consent Agreement signed by both OPS and\nKMLT. This Consent Agreement resulted from a Notice of Probable Violation and Proposed Civil\nPenalty and Proposed Compliance Order that was issued to KMLT on October 11, 2011.\nOn May 29, 2015, we received your letter wherein you responded to this Order, and stated that the MOP\nsubstantiation project was completed at Perth Amboy on May 16, 2015.\nSubsequently, on June 23, 2015, we received your letter in which you stated that the final work set forth\nunder Section II of the Order was completed, and you requested that the agreement be terminated. Based\non our review of the documentation you provided within the May 29, 2015 submission, and confirmation\nof payment of the civil penalty, it has been determined that you have complied with the terms of this\nOrder.\nAccordingly, this case is now closed and no further action is contemplated with respect to the matters\ninvolved in this case. Thank you for your cooperation in this matter.\nSincerely,\nByron Coy\nDirector, Easter Region\nPipeline and Hazardous Materials Safety Administration\n\n120115008_Consent Agreement and Order_07172013_text.pdf\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\n__________________________________________\nIn the Matter of )\nKinder Morgan Liquids Terminals, LLC, ) CPF No. 1-2011-5008\n)\n)\n)\nRespondent. )\n__________________________________________)\nCONSENT AGREEMENT AND ORDER\nFrom May 2008 to December 2010, pursuant to Chapter 601 of 49 United States Code, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of\nPipeline Safety (OPS), conducted on-site inspections of the pipeline facilities of Kinder Morgan\nLiquids Terminals, LLC (KMLT or Respondent), at its terminal facilities in Perth Amboy, New\nJersey (Terminal).\nPursuant to the these inspections, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated October 11, 2011, a Notice of Probable Violation and Proposed Civil Penalty, and\nProposed Compliance Order (Notice), a copy of which is attached hereto as Appendix A. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed (1) finding that Respondent had\ncommitted various violations of 49 C.F.R. Part 195, (2) assessing a total civil penalty of $41,000 for\ntwo of the alleged violations, and (3) ordering Respondent to take certain measures to correct the\nalleged violations. The Notice also included a warning of a probable violation under 49 C.F.R. Part\n194 and advised KMLT to take corrective action or face future possible enforcement action.\nKMLT responded to the Notice by letter dated October 17, 2011, and requested a hearing, which was\nheld on November 22, 2011. Subsequent to the hearing, on July 27, 2012, KMLT proposed to resolve\nthis matter, as well as another enforcement action, CPF No. 1-2011-5009, via an administrative\nconsent agreement.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation, pursuant to 49 C.F.R. Part 190, without adjudication of any issue of fact or law, and upon\nconsent and agreement of Respondent and PHMSA (Parties), the Parties agree as follows:\n\n\n\nI. General Provisions.\n1. For purposes of this Consent Agreement and Order (Agreement), Respondent acknowledges\nthat as operator of the Terminal, KMLT and its pipeline system located at the Terminal are subject to\nthe jurisdiction of the Federal pipeline safety laws, 49 U.S.C. 60101, et seq., and the regulations and\nadministrative orders issued thereunder.1 As used in this Agreement, the terms “pipeline system” and\n“pipeline facility” shall be defined as in 49 C.F.R. Part § 195.2. Respondent acknowledges that it\nreceived proper notice of PHMSA’s action in this proceeding and that the Notice states claims upon\nwhich relief may be granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders\nissued thereunder.\n2. Respondent consents to the issuance of this Agreement, and hereby waives any further\nprocedural requirements with respect to its issuance. Respondent waives all rights to contest the\nadequacy of notice or the validity of the Agreement, including all rights to administrative or judicial\nhearings or appeals.\n3. This Agreement shall apply to and be binding upon PHMSA, and upon Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons otherwise\nbound by law. Respondent agrees to provide a copy of this Agreement, and any incorporated work\nplans and schedules, to all of KMLT’s officers, employees, and agents whose duties might reasonably\ninclude compliance with this Agreement.\n4. For all transfers of ownership or operating responsibility of Respondent’s pipeline system at\nthe Terminal, KMLT will provide a copy of this Agreement to the prospective transferee at least 60\nbusiness days prior to such transfer and simultaneously provide written notice of the prospective\ntransfer to the Director and the Associate Administrator for Pipeline Safety, PHMSA, 1200 New\nJersey Avenue, SE, Washington, D.C. 20590.\n5. This Agreement constitutes the final, complete and exclusive agreement and understanding\nbetween the Parties with respect to the settlement embodied in this Agreement, and the Parties\nacknowledge that there are no representations, agreements or understandings relating to the settlement\nother than those expressly contained in this Agreement and its appendices.\n6. Nothing in this Agreement affects or relieves KMLT of its responsibility to comply with all\napplicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101 et seq., and the\nregulations and orders issued thereunder. Nothing in this Agreement alters PHMSA’s right of access,\nentry, inspection, and information gathering or its authority to bring any enforcement actions against\nRespondent pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder,\nor any other provision of Federal or State law.\n7. This Agreement does not waive or modify any Federal, State, or local laws or regulations that\n1 For a map showing the jurisdictional components of Respondent’s system at the Terminal, see drawings entitled,\n“Kinder Morgan Perth Amboy, NJ, Liquids Terminal, Tank Field P&ID’s,” prepared by STV Incorporated, consisting of\n41 sheets, dated May 6, 2013 (on file with PHMSA Eastern Region).\n- 2 -\n\n\n\nare applicable to KMLT or its pipeline systems. This Agreement is not a permit, or a modification of\nany permit, under any Federal, State, or local laws or regulations. Respondent remains responsible\nfor achieving and maintaining compliance with all applicable Federal, State, and local laws,\nregulations and permits.\n8. This Agreement does not create rights in, or grant any cause of action to, any third party not\nparty to this Agreement. The U.S. Department of Transportation (DOT) is not liable for any injuries\nor damages to persons or property arising from acts or omissions of Respondent or its officers,\nemployees, or agents carrying out the work required by this Agreement. KMLT agrees to hold\nharmless DOT, its officers, employees, agents, and representatives from any and all causes of action\narising from any acts or omissions of Respondent or its contractors in carrying out the work required\nby this Agreement.\n9. The Parties agree that the facts are as alleged in each item of the Notice and that each item\nmay be considered by PHMSA to be a prior offense in any future PHMSA enforcement action against\nKMLT. This Agreement, however, does not constitute a finding of violation of any Federal law or\nregulation and may not be used in any civil proceeding of any kind as evidence or proof of any fact,\nfault or liability, or as evidence of the violation of any law, rule, regulation or requirement, except in\na proceeding to enforce the provisions of this Agreement or in future PHMSA enforcement actions.\n10. Respondent agrees to complete the corrective actions specified in Section II (Work to be\nPerformed) of this Agreement and to pay the civil penalties specified in Section III (Civil Penalties).\nII. Work to be Performed.\n11. KMLT agrees to perform all the corrective actions set forth in the proposed Compliance\nOrder, as included in the Notice and incorporated herein as part of Appendix A, except for Item 7 (see\nParagraph 12 below), and Item 11 (see Paragraph 13 below).\n12. With respect to Item 7 of the proposed Compliance Order, Respondent agrees to perform all\nthe corrective actions set forth in Appendix B to this Agreement, entitled “Perth Amboy Terminal\nMOP Substantiation” (Perth Amboy Project), which is hereby incorporated into this Agreement. The\nPerth Amboy Project may be revised to incorporate new information obtained during the evaluations\nand remedial activities performed as part of the Perth Amboy Project. Respondent must submit any\nproposed Perth Amboy Project revisions to the Director for approval. The Director may approve\nproposed revisions, in whole or in part, or may direct KMLT to revise or modify the Perth Amboy\nProject as necessary, as set forth in Section III (Review and Approval Process) and Section IV\n(Dispute Resolution) below.\n13. With respect to Item 11 of the proposed Compliance Order, Respondent agrees to complete\nall work within 180 days of the Effective Date of this Agreement, as defined below.\n14. The Director may grant an extension of time for completion of any of the work to be\nperformed under this Section II upon Respondent’s timely, written request that demonstrates both\ngood cause for an extension and provides sufficient detail to enable the Director to evaluate\n- 3 -\n\n\n\nRespondent’s request.\nIII. Review and Approval Process.\n15. With respect to any submission under Section II of this Agreement that requires the approval\nof the Director, the Director may: (a) approve, in whole or in part, the submission; (b) approve the\nsubmission on specified conditions; (c) disapprove, in whole or in part, the submission; or (d) any\ncombination of the foregoing. In the event of approval in whole, in part, or upon conditions, KMLT\nwill proceed to take all actions required by the submission as modified by the Director, subject to\nRespondent’s right to invoke procedures in Section IV with respect to any conditions identified by the\nDirector. In the event the Director does not accept all or any portion of a submission, the Director\nwill provide KMLT with a written notice of the deficiencies. Respondent will correct all deficiencies\nwithin the time specified by the Director and resubmit it for acceptance. If Respondent fails to\ncorrect the specified deficiencies, the Director may invoke the dispute resolution process provided in\nSection IV below.\nIV. Dispute Resolution.\n16. The Director and Respondent will informally attempt to resolve any disputes arising under\nthis Agreement. If KMLT and the Director are unable to informally resolve the dispute within 15\nbusiness days, Respondent may request in writing, within 10 business days, a written determination\nresolving the dispute by the Associate Administrator for Pipeline Safety, PHMSA. Along with its\nrequest, Respondent will provide the Associate Administrator with all information KMLT believes is\nrelevant to the dispute. If the request is submitted as provided herein, the Associate Administrator\nwill issue a written determination that shall be final. The existence of a dispute and PHMSA’s\nconsideration of matters placed in dispute shall not excuse, toll, or suspend any term or timeframe for\ncompletion of any work to be performed under this Agreement during the pendency of the dispute\nresolution process, except as agreed by the Director or the Associate Administrator in writing.\nV. Enforcement of Agreement and Order.\n17. This Agreement, including all plans and schedules incorporated by reference, is subject to all\nenforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part\n190, including administrative civil penalties under 49 U.S.C. § 60122 of up to $200,000 per violation\nfor each day the violation continues and referral of the case to the Attorney General for judicial\nenforcement, if PHMSA determines that Respondent is not complying with the terms of the\nAgreement, in accordance with determinations made by the Director, or if appealed, in accordance\nwith decisions of the Associate Administrator. The Perth Amboy Project and all other work plans and\nassociated schedules developed under Section II shall be automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVI. Civil Penalties.\n18. Within 15 days from the execution of this Agreement, Respondent agrees to pay to the\nUnited States a total civil penalty in the amount of Forty-One Thousand Dollars ($41,000.00), said\n- 4 -\n\n\n\namount being assessed by PHMSA for the following alleged violations set forth in the Notice:\na. $20,500, as proposed for Item 11 in the Notice, for the alleged violation of\n49 C.F.R. § 195.404(c)(3); and\nb. $20,500, as proposed for Item 12 in the Notice, for the alleged violation of\n49 C.F.R. § 195.404(c)(3).\n19. Payment of the $41,000.00 must be made within 15 days of the Effective Date, as defined\nbelow. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire\ntransfer through the Federal Reserve Communications System (Fedwire), to the account of the “U.S.\nTreasury.” Questions concerning wire transfers should be directed to: Financial Operations Division\n(AMZ-341), Federal Aviation Administration, Mike Monroney Aeronautical Center, P. O. Box\n269039, Oklahoma City, Oklahoma 73125. The telephone number of the Division is (405) 954-\n8893.\n20. Failure to pay the penalty set forth above within 15 days of the Effective Date will result in\nthe accrual of interest at the current annual rate in accordance with 31 U.S.C. § 3717,\n31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same authorities, a late penalty charge of\nsix percent (6%) per annum will be charged if payment is not made within 110 days of service of a\nNotice of Late Payment. Furthermore, failure to pay the civil penalty may result in referral of the\nmatter to the Attorney General for appropriate action in a United States District Court.\nVII. Miscellaneous.\n21. PHMSA will have the right to inspect the records and facilities of KMLT or any contractor\nor agent thereof upon reasonable notice, to confirm that the Perth Amboy Project and other\ncompliance terms of this Agreement are being undertaken in conformity with the terms of this\nAgreement.\n22. Except as otherwise provided herein, this Agreement may be modified only by the mutual\nagreement of the Parties and set forth in writing and signed by both Parties.\n23. Each undersigned representative of the Parties certifies that he is fully authorized by the\nparty represented to enter into the terms and conditions hereof and to execute and legally bind that\nparty to it.\nVIII. Effective Date and Term.\n24. The “Effective Date” as used herein is the date on which this Agreement has been signed by\nboth KMLT and PHMSA. Unless specified to the contrary, all deadlines for actions required by the\nAgreement run from the effective Date of the Agreement.\n- 5 -\n\n\n\nIX. Termination.\n25. This Agreement will terminate upon payment of the full penalty amount set forth in Section\nVI (Civil Penalties) and the completion of all terms set forth in Section II (Work to Be Performed), as\n26. determined by the Director. Respondent may request, and PHMSA will provide, written\nconfirmation when this Agreement is terminated. Nothing in this Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for herein.\nThe Parties hereby agree to all conditions and terms of this Agreement:\nFor PHMSA: For Kinder Morgan Liquids Terminals, LLC:\n___________________________ _____________________________________\nJeffrey D. Wiese Carlos Munguia\nAssociate Administrator for Vice-President\nPipeline Safety, PHMSA Kinder Morgan Liquids Terminals, LLC\n_____________________ _____________________\nDate Date\n- 6 -\n\n\n\nAPPENDIX A\n[INSERT COPY OF NOPV]\n\n\n\nAPPENDIX B\n[ INSERT COPY OF MOP PROTOCOL ]\n\n\n\nKinder Morgan Liquids Terminals, LLC\nPERTH AMBOY PROJECT\nSubstantiation of Terminal Piping Maximum\nOperating Pressure (MOP)\nPerth Amboy Terminal, Perth Amboy, NJ\n\n\n\n1.0 APPLICABILITY\nRefined Products/Natural Gasoline.\n2.0 PURPOSE AND SCOPE\nThis document provides Kinder Morgan Liquids Terminals, LLC (KMLT)\nNorth East Region procedures for establishing and documenting MOP for\neach DOT jurisdictional segment of pipe at its terminal facility located in Perth\nAmboy, New Jersey (the Perth Amboy Project or Project), as required pursuant\nto the Consent Agreement and Order between PHMSA and KMLT regarding\nCPF No. 1-2011-5008, dated\nThe Project includes 22 piping segments, and will involve pressure testing\neach jurisdictional segment in order to substantiate MOP in accordance with\nthe pipeline safety regulations, found at 49 C.F.R. Part 195. The Perth\nAmboy Terminal operates under an established MOP of 285 psi, based on\nmaximum pressure rating of installed flanges. The following procedures and\nschedule is designed to substantiate the established MOP in accordance with 49\nCFR Part 195. This procedure follows existing KMLT O&M Procedure T-\nO&M 1600 (Strength and Leak Testing) (attached), as applicable.\n3.0 TESTING PROCEDURES\nKMLT will implement the following methods for executing\nthe Project:\n3.1 Identify line segments and internal design pressure\n3.1.1 Using Piping and Instrumentation Diagrams (P&IDs),\nbreak down piping systems or segment details, number of\nflanges, appurtenances, measurements, etc.\n3.1.2 Identify line segments for manageable testing.\n3.1.3 Research and document to ensure that all pipe components of the\nline segment are capable of the target test pressures. (Refer to test\npressures in 3.3.1)\n3.2 Testing Preparation\n\n\n\n3.2.3 3.2.5 3.2.1 Develop an air elimination procedure to mitigate risk of air\nbeing injected into tanks and potentially causing floating roof\ndamage and/or sinking of roofs.\n3.2.2 Assemble and issue specifications for piping, valves,\nblinds, fitting, flanges, gaskets, studs and nuts, etc.\n3.2.3 Secure and/or have on stand-by replacements for piping,\nvalves, fittings, gauges, gaskets, etc.\nEvacuate line segments to appropriate storage tank.\n3.2.4 Drain line segments of any residual products to vacuum\ntrucks and into storage tanks.\nRemove and plug all appurtenances on line segments, except\nfor 1-2 low point drains.\n3.2.6 Tag-Out.\nInstall slip blinds for segments to be tested. Employ Lock-Out\n3.2.7 Review contractor pressure test equipment calibration\nand verify equipment records.\n3.3 Conduct pressure tests2\n3.3.1 Conduct pressure tests at 1.25 x 285 psi or 357 psi for four hours\nfor above- ground pipe and an additional four hours at 1.10 x\n285 psi or 314 psi for underground pipe. Pressure test must be\nconducted in accordance with §195.304.\nUse water as a test medium for each line segment.\nCommence pressure test by slowly ramping up pressure in\nincrements until the test pressure is met. Four hours at 357 psi\nand an additional four hours at 314 psi, depending on line\nsegment. (Refer to calculations in 3.3.1)\n3.3.4 Record pressure, ambient temperature and pipe temperature\nand monitor pressure changes.\nInspect line segment for leakage for the duration of the test.\n3.3.2 3.3.3 3.3.5 2 For a map showing the jurisdictional components of Respondent’s system, see drawings entitled, “Kinder\nMorgan Perth Amboy, NJ, Liquids Terminal, Tank Field P&ID’s,” prepared by STV Incorporated, consisting\nof 41 sheets, dated May 6, 2013 (on file with PHMSA Eastern Region).\n\n\n\nUpon completion, begin system drain of test medium to vacuum\nPlace test medium in Baker style tanks for reuse in other pipe\n3.3.6. retested.\nIf a leak and/or failure occur, then that line segment must be\n3.3.7 Evaluate chart recorder and check that the test meets 49 C.F.R.\nPart 195 requirements.\n3.4 Completion\n3.4.1 trucks.\n3.4.2 segments.\n3.4.3 Dewater with nitrogen to remove as much water as possible\nfrom low point drains.\n3.4.4 Re-install appurtenances on pipe segments, utilizing new\nFlexitallic gaskets and new nuts and bolts.\n3.4.5 Remove Lock-Out Tag-Out controls and isolation blinds\nand return segment back to service.\n4.0 TESTING SAFETY\n4.1 4.2 4.3 4.4 4.5 Testing procedures should be in place to protect all employees,\ncontractors, and members of the public, including “essential personnel”\nwho are or might be in proximity to the facilities undergoing testing.\nMaintaining a safe distance for everyone, or providing adequate\nbarriers or other protections, if necessary to have personnel in the\nvicinity of the facilities being tested.\nEveryone on site during the test must be informed of the procedures\nand a pre- start up safety review must be conducted.\nThe testing team should also be asked to survey the site to identify and\nremove, as appropriate, any loose material that might present a hazard\nin the event of failure.\nDo not use swell plugs or plumber’s plugs / night caps for\nperforming pressure tests.\n5.0 PROJECT SCHEDULE\n\n\n\nKMLT has developed a schedule to complete all jurisdictional segment testing\non the Perth Amboy Terminal by November 1, 2014. This schedule will best\naccommodate KMLT’s efforts to conduct the work safely and with minimal\nfuel supply disruption to local markets. The following table reflects KMLT’s\nprojected schedule for segment testing, which will resume in the spring of\n2013. Designation and sequencing of specific segments for testing during a\ngiven season will be at KMLT’s discretion and guided by risk assessment\nprinciples. As outlined further below, KMLT will provide periodic progress\nreports to PHMSA so that the agency may track implementation of the Perth\nAmboy Project. In the first progress report, KMLT will also include\ndocumentation of the segments tested in 2012 for PHMSA’s review.\nProposed Perth Amboy Project Execution Plan\nTotal Segments 2012\nSegments\n2013\n2014\nSegments\nSegments\n22\nTotal:\n3\nTotal:\n8\nTotal:\n11\n6.0 TRAINING\nPersonnel performing the Project must meet the requirements of the KM\nOperator Qualification program.\n7.0 DOCUMENTATION\nSpecific records identified in this section are to be retained in accordance\nwith T-O&M Procedure 1404, Maps and Records and 49 C.F.R. Part 195.310.\n7.1 Test Reporting\nPrepare a test report for every pressure test using T-OM1600-01, Pressure Test\nReport. This report will be a permanent record and may be used to satisfy\nregulatory agencies. Retain the test report for as long as the facility is in use.\n\n\n\nBe sure that the data is complete, self-explanatory, and in accordance with 49\nC.F.R. 195.310. Attach the following to the test report:\n7.1.1 Pressure recording chart signed by the person responsible for\nmaking the test.\n7.1.2 Temperature recording chart signed by the person responsible\nfor making the test.\n7.1.3 certification.\nDead weight gauges and pressure recorder calibration\n7.1.4 Where elevation difference in the section under test exceeds\n100 feet, a profile of the pipeline that shows the elevation and\ntest sites over the entire length of the test section.\n7.1.5 Complete all sections of T-OM1600-01, Pressure Test Report.\nIf a part of the form is not applicable, insert N/A (not\napplicable) so every section is completed. A company\nrepresentative must sign all reports.\n7.1.6 information:\nThe “Pressure Test Report” shall contain the following\n• Kinder Morgan’s Business Unit’s name.\n• The name of the person responsible for making the test (Test\nSupervisor).\n• The name of the test company used, if any (Test Contractor).\n• The date and time of the test.\n• The minimum test pressure.\n• The test medium.\n• A description of the facility tested and the test apparatus.\n• A description of any pressure discontinuities, including test\nfailures and temperature deviations that appear on the pressure\nrecording charts.\n\n\n\n7.2 Additional Testing Reports\nIn addition to the strength test report, complete the following if\napplicable when testing pipeline facilities:\n7.2.1 T-OM200-02, Pipeline Inspection/Repair Report distribute as\nstated on form.\n7.2.2 Retain Survey Notes: Include all pressure test report\nnumbers in the survey notes. Forward completed notes to the\nproject management group.\n7.3 PHMSA Reporting\nPHMSA has requested that KMLT provide progress reports and other\nopportunities for information-sharing during implementation of the\nProject.\n7.3.1 Commencing no more than 90 days after the Effective\nDate of the Agreement and continuing every 90 days\nthereafter, until the Perth Amboy Project Completion Report,\nas described below, has been filed and accepted by PHMSA,\nKMLT will submit quarterly progress reports to PHMSA,\ndescribing all work performed during the preceding quarter\nand the safety impacts and implications of the Perth\nAmboy Project to date. The quarterly reports will include a\nsegment completion inventory spreadsheet, attached as\nAttachment A.\n7.3.2 Within 90 days after completion of the Perth Amboy Project.\nKMLT will file a Perth Amboy Project Completion Report\nwith the Director. Said report will contain, at minimum, the\nfollowing information:\n• A detailed description of the work performed, as implemented;\n• The total itemized costs of the work performed; and\n• Certification that the works has been implemented\npursuant to the provisions of the Project plan.\n• Verification that all jurisdictional assets have been pressure\ntested.\n7.3.3 All reports, including the Perth Amboy Project Completion\nReport, shall be submitted to the Director. As the person\nresponsible for monitoring Respondent’s compliance with the\n\n\n\nterms of this Agreement, the Director may request any\nadditional documentation, studies, or reports reasonably\nnecessary to verify compliance with the terms of the\nProject plan.\n\n\n\nATTACHMENT A\nQUARTERLY PROGRESS REPORT\n[DATE]\nKinder Morgan Liquids Terminals, LLC\nTerminal Maximum Operating Pressure (MOP) Substantiation Project\nPERTH AMBOY TERMINAL, PERTH AMBOY, NJ\nSegment\nP&ID\nTest Pressure\nName\nNumbers Test Date Pass / Fail\n(psi) Test Medium\n\n\n\nATTACHMENT B\n[ INSERT COPY OF KMLT O&M PROCEDURE\nT-O&M 1600 (STRENGTH AND LEAK TESTING) ]\n\n120115008_ NOPV-PCP-PCO_10112011_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\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS MAIL\nOctober 11, 2011\nDavid Vattimo\nRegional Vice President\nKinder Morgan Liquid Terminals, LLC\n8500 West 68th Street\nArgo, IL 60501\nCPF 1-2011-5008\nDear Mr. Vattimo:\nDuring the months of May 2008 through December 2010, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code conducted\ninspections the Kinder Morgan Liquid Terminals, LLC (KM) facility in Perth Amboy, New Jersey.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety\nRegulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are:\n1. §195.589 What corrosion control information do I have to maintain?\n(c) You must maintain a record of each analysis, check, demonstration, examination,\ninspection, investigation, review, survey, and test required by this subpart in sufficient\ndetail to demonstrate the adequacy of corrosion control measures or that corrosion\nrequiring control measures does not exist. You must retain these records for at least 5 years,\nexcept that records related to Secs. 195.569, 195.573(a) and (b), and 195.579(b)(3) and (c)\nmust be retained for as long as the pipeline remains in service.\n\n\n\n120115008\nKM failed to maintain records in sufficient detail to demonstrate the adequacy of corrosion\ncontrol measures for the replaced line segment from Station 47+59 to 52+69 at the intersection of\nState Street and High Street in Perth Amboy, New Jersey.\nDuring the inspection, a PHMSA representative discovered that the subject line segment had been\nreplaced in the third quarter of 2007. PHMSA representative subsequently requested that KM\npersonnel provide any and all records that showed the replacement pipe was coated in accordance\nwith §195.557(a). KM personnel indicated that the subject line segment was coated when\nrelocated; however, KM could not produce any records or documentation that showed the pipe\nwas coated.\n2. §195.310 Records.\n(a) A record must be made of each pressure test required by this subpart, and the record of\nthe latest test must be retained as long as the facility tested is in use.\nKM failed to retain the pressure test record of the replaced pipeline segment from Station 47+59\nto 52+69 at the intersection of State Street and High Street in Perth Amboy, New Jersey. The\nsubject line was in service at the time of the inspection.\nAccording to KM personnel, a section of pipeline at State Street and High Street was replaced\nand tied in to an existing pipe. Under §195.308, a pipe associated with a tie-in section must be\npressure tested, either with the section to be tied into or separately. KM could not produce any\nrecords that showed compliance with the requirements prescribed in §195.310.\n3. §195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline systems\nthat include at least the following information;\n(1) Location and identification of the following pipeline facilities;\n(iv) Pipeline valves;\nKM failed to maintain current maps and records of the Perth Amboy facility that included\nthe location and identification of its pipeline valves.\nAt the time of the inspection, PHMSA requested that KM personnel provide\ndocumentation of its pipeline valves at the Perth Amboy facility. KM had no records or\ndocumentation illustrating all the pipeline valves at the Perth Amboy facilityand KM\npersonnel confirmed to a PHMSA representative that the current system maps did not\nidentify pipeline valves.\n4. §195.262 Pumping equipment.\n(b) The following must be provided in each pump station:\n(1) Safety devices that prevent overpressuring of pumping equipment, including the\nauxiliary pumping equipment within the pumping station.\n120115008_NOPV-PCP-PCO_10112011 Page 2 of 9\n\n\n\n120115008\nKM failed to provide safety devices that prevent overpressuring of pumping equipment, including\nthe auxiliary pumping equipment within the pumping station at the Perth Amboy facility.\nDuring the field inspection, a PHMSA representative observed that no safety devices to prevent\nequipment overpressure were installed to protect pump station equipment. KM personnel stated\nthat overpressure safety devices were not installed and that there was no need for safety devices.\nKM personnel did not produce any documentation to substantiate that safety devices were not\nrequired.\n5. §195.589 What corrosion control information do I have to maintain?\n(c) You must maintain a record of each analysis, check, demonstration, examination,\ninspection, investigation, review, survey, and test required by this subpart in sufficient\ndetail to demonstrate the adequacy of corrosion control measures or that corrosion\nrequiring control measures does not exist. You must retain these records for at least 5 years,\nexcept that records related to Secs. 195.569, 195.573(a) and (b), and 195.579(b)(3) and (c)\nmust be retained for as long as the pipeline remains in service.\nKM failed to maintain records of each atmospheric corrosion inspection required by §195.583(a)\nin sufficient detail to demonstrate the adequacy of corrosion control measures.\nDuring the inspection, a PHMSA representative requested that KM personnel provide any and all\natmospheric corrosion inspection records for the Perth Amboy facility. KM personnel could not\nproduce any documentation relating to atmospheric corrosion inspection.\n6. §195.404 Maps and Records.\n(c) Each operator shall maintain the following records for the periods specified;\n(3) A record of each inspection and test required by this subpart shall be maintained for at\nleast 2 years or until the next inspection or test is performed, whichever is longer.\nSection 195.430(a) requires operators to ensure all firefighting equipment is in proper operating\ncondition at all times. During the inspection, KM personnel stated that they did not have any\nrecords to show the inspection and testing of firefighting equipment at each pump station and\nbreakout tank area in the Perth Amboy facility. KM failed to maintain records of each\nfirefighting equipment inspection and/or test, ensuring that it is in proper operating condition.\n7. §195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline systems\nthat include at least the following information;\n(3) The maximum operating pressure of each pipeline.\nKM failed to maintain current maps and records that included the maximum operating\npressure (MOP) of each of their jurisdictional pipeline segments in or affiliated with the\nPerth Amboy facility.\n120115008_NOPV-PCP-PCO_10112011 Page 3 of 9\n\n\n\n120115008\nAt the time of the inspection during the field review, a PHMSA representative requested\nthat KM personnel provide documentation of the MOP of each pipeline segment. KM\ndid not have any records or other related documentation demonstrating an established\nMOP of each pipeline segment at its Perth Amboy facility.\n8. §195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program shall\ninclude provisions to:\n(a) Identify covered tasks;\nKM failed to identify tank painting or the application of coatings and their repair as a covered\ntask in its written qualification program. During the field review, it was observed that in-service\nbreakout tanks 52 and 53 were being sand-blasted and painted by a third-party contractor. A\nPHMSA representative requested that KM personnel provide a list of covered tasks performed on\nthe pipeline facility. KM personnel could not produce any documentation that showed tank\npainting or the application of coatings and their repair as a covered task.\n9. §195.404 Maps and Records.\n(c) Each operator shall maintain the following records for the periods specified;\n(3) A record of each inspection and test required by this subpart shall be maintained for at\nleast 2 years or until the next inspection or test is performed, whichever is longer.\nKM failed to maintain records of each breakout tank high level alarm inspection and test required\nby §195.428(d) for at least 2 years. In accordance with §195.428(d), overfill protection systems\nare required to be inspected and tested. KM could not produce any records of inspection and tests\nfor each of the breakout tank’s hi-level alarms, which are part of the overfill protection system at\nthe Perth Amboy facility.\n10. §195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline systems that\ninclude at least the following information;\n(1) Location and identification of the following pipeline facilities;\n(i) Breakout tanks;\nKM failed to maintain current maps and records of its pipeline systems that include the location\nand identification of Department of Transportation (DOT) jurisdictional breakout tanks at the\nPerth Amboy facility.\nAt the time of the inspection, KM personnel provided a copy of a list dated 4/3/2008 that\nidentified all the DOT breakout tanks at the facility. KM personnel also provided maps and\ndrawings, all of which were inconsistent with the list. Therefore, the drawings did not accurately\ndepict the current location and identification of breakout tanks. KM personnel acknowledged that\nthe maps and drawings were not current.\n120115008_NOPV-PCP-PCO_10112011 Page 4 of 9\n\n\n\n120115008\n11. §195.404 Maps and Records.\n(c) Each operator shall maintain the following records for the periods specified;\n(3) A record of each inspection and test required by this subpart shall be maintained for at\nleast 2 years or until the next inspection or test is performed, whichever is longer.\nKM failed to maintain records of forty-four (44) tank thermal relief valve inspections on breakout\ntanks required by §195.428(a) for at least 2 years.\nDuring the field inspection, a PHMSA representative observed that each of the twenty-two (22)\nbreakout tanks had a thermal relief valve at an inlet and an outlet valve totaling forty-four (44)\nthermal relief valves. A PHMSA representative requested KM personnel provide any and all\nrecords pertaining to tank thermal relief valves inspection pursuant to §195.428(a). However,\nKM personnel could not produce any records of tank thermal relief valve inspections at the time\nof the inspection.\n12. §195.404 Maps and Records.\n(c) Each operator shall maintain the following records for the periods specified;\n(3) A record of each inspection and test required by this subpart shall be maintained for at\nleast 2 years or until the next inspection or test is performed, whichever is longer.\nKM failed to maintain records of routine in-service inspections on all atmospheric and low-\npressure steel aboveground breakout tanks required by §195.432(b). Accordingly, API 653\nparagraph 6.3.1.2 requires the interval of such inspection be consistent with conditions at the\nparticular site, but shall not exceed one month . At the time of the inspection, KM could not\nproduce records of monthly routine in-service inspections.\n13. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual of\nwritten procedures for conducting normal operations and maintenance activities and\nhandling abnormal operatio","truncated":true,"body_characters":54020}