{"operation":"document","citation":"CPF 120115009","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":"2011-10-12","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.266, 195.402(a), 195.404(a)(2), 195.404(a)(3), 195.412(b), 195.555, 195.585(a)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120115009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120115009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120115009","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120115009","body":"Notice of Probable Violation involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.266,  195.402(a),  195.404(a)(2),  195.404(a)(3),  195.412(b),  195.555,  195.585(a)(1). The case was opened on 2011-10-12 and is reported as closed as of 2015-11-19. Proposed civil penalty: $89,800. Assessed civil penalty: $63,100. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120115009_Closure Letter_11192015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_Closure%20Letter_11192015.pdf\n\n120115009_Closure Letter_11192015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_Closure%20Letter_11192015_text.pdf\n\n120115009_Consent Agreement and Order_07172013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_Consent%20Agreement%20and%20Order_07172013.pdf\n\n120115009_Consent Agreement and Order_07172013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_Consent%20Agreement%20and%20Order_07172013_text.pdf\n\n120115009_NOPV-PCP-PCO_10122011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_NOPV-PCP-PCO_10122011.pdf\n\n120115009_NOPV-PCP-PCO_10122011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_NOPV-PCP-PCO_10122011_text.pdf\n\n120115009_Operator's_Response_to_NOPV_11112011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120115009/120115009_Operator's_Response_to_NOPV_11112011.pdf\n\n120115009_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 )\n)\nKinder Morgan Liquids Terminals, LLC, ) CPF No. 1-2011-5009\n)\nRespondent. )\n)\nCONSENT AGREEMENT AND ORDER\nOn November 15-19, 2010, pursuant to Chapter 601 of 49 United States Code, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site inspection of the pipeline facilities of Kinder Morgan Liquids Terminals, LLC\n(KMLT or Respondent), at its terminal facilities in Carteret, New Jersey (Terminal).\nAs a result of this inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by\nletter dated October 12, 2011, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed\nCompliance Order (Notice), a copy of which is attached hereto as Appendix A. In accordance with\n49 C.F.R. § 190.207, the Notice proposed (1) finding that Respondent had committed various\nviolations of 49 C.F.R. Part 195, (2) assessing a total civil penalty of $89,800 for five of the alleged\nviolations, and (3) ordering Respondent to take certain measures to correct the alleged violations.\nKMLT responded to the Notice by letter dated November 11, 2011, and requested a hearing, which\nwas held on August 7, 2012. KMLT has proposed, as part of this proceeding and a related\nenforcement action, CPF No. 1-2011-5008, to resolve both matters via administrative consent\nagreements.\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:\nI. General Provisions.\n1. For purposes of this Consent Agreement and Order (Agreement), Respondent acknowledges\nthat as operator of the Terminal, KMLT and it 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\n\n\n\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 the\nTerminal, KMLT shall 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 Jersey\nAvenue, 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 action 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\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 for\nachieving and maintaining compliance with all applicable Federal, State, and local laws, regulations\nand permits.\n1 For a map showing the jurisdictional components of Respondent’s system at the Terminal, see drawings entitled,\n“Kinder Morgan Carteret, NJ, Liquids Terminal, East & West Tank Field P&ID’s,” prepared by STV Incorporated,\nconsisting of 105 sheets, dated May 6, 2013 (on file with PHMSA Eastern Region).- 2 -\n\n\n\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. Except as otherwise provided in this Paragraph, the Parties agree that the facts are as\nalleged in each item of the Notice and that each item may be considered by PHMSA to be a prior\noffense in any future PHMSA enforcement action against KMLT. This Agreement, however, does\nnot constitute a finding of violation of any Federal law or regulation and may not be used in any civil\nproceeding of any kind as evidence or proof of any fact, fault or liability, or as evidence of the\nviolation of any law, rule, regulation or requirement, except in a proceeding to enforce the provisions\nof this Agreement or in future PHMSA enforcement actions.\nAs for Item 5 of the Notice, PHMSA has reviewed the evidence and determined that the records\nsubmitted by KMLT in response to the alleged violation of 49 C.F.R. § 195.412(b) do, in fact, satisfy\nthe inspection requirements of that regulation. Therefore, this Item is hereby withdrawn.\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 VI (Civil Penalties).\nII. Work to be Performed.\n11. KMLT agrees to perform all the corrective actions set forth in the proposed Compliance Order,\nas included in the Notice and incorporated herein as part of Appendix A, except for Item 2 (see\nParagraph 12 below), Item 5 (see paragraph 13 below), and Item 7 (see Paragraph 14 below).\n12. With respect to Item 2 of the proposed Compliance Order, Respondent agrees to perform all\nthe corrective actions set forth in Appendix B to this Agreement, entitled “Carteret Terminal MOP\nSubstantiation” (Carteret Project), which is hereby incorporated into this Agreement. The Carteret\nProject may be revised to incorporate new information obtained during the evaluations and remedial\nactivities performed as a part of the Carteret Project. Respondent must submit any proposed Carteret\nProject revisions to the Director for approval. The Director may approve proposed revisions in whole\nor in part, or may direct KMLT to revise or modify the Carteret Project as necessary, as set forth in\nSection III (Review and Approval Process) and Section IV (Dispute Resolution) below.\n13. work to be performed for this Item.\nAs discussed above, Item 5 of the Notice has been withdrawn. Accordingly, there is no\n14. With respect to Item 7 of the proposed Compliance Order, Respondent agrees to complete all\ncorrective actions within 270 days of the Effective Date of this Agreement, as defined below.\n- 3 -\n\n\n\n15. 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\nRespondent’s request.\nIII. Review and Approval Process.\n16. With respect to any submission under Section II (Work to be Performed) of this Agreement\nthat requires the approval of the Director, the Director may: (a) approve, in whole or in part, the\nsubmission; (b) disapprove the submission on specified conditions; (c) disapprove, in whole or in part,\nthe submission; or (d) any combination of the foregoing. In the event of approval in whole, in part, or\nupon conditions, KMLT will proceed to take all actions required by the submission as modified by the\nDirector, subject to Respondent’s right to invoke the procedures in Section IV (Dispute Resolution)\nwith respect to any conditions identified by the Director. In the event that the Director does not\napprove all or any portion of the submission, the Director will provide KMLT with a written notice of\nthe deficiencies. Respondent will correct all deficiencies within the time specified by the Director and\nresubmit it for acceptance. If Respondent fails to correct the specified deficiencies, the Director may\ninvoke the dispute resolution process provided in Section IV below.\nIV. Dispute Resolution.\n17. 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\nis relevant 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 Regional Director or the Associate Administrator in\nwriting.\nV. Enforcement of Agreement and Order.\n18. 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 this\nAgreement in accordance with determinations made by the Director, or if appealed, in accordance\nwith decisions of the Associate Administrator. The Carteret 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.- 4 -\n\n\n\nVI. Civil Penalties.\n19. As discussed above, Item 5 of the Notice has been withdrawn. Therefore, the proposed civil\npenalty of $26,700 for such Item is also withdrawn.\n20. 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 Sixty-three Thousand One-Hundred Dollars\n($63,100.00), said amount being assessed by PHMSA for the following alleged violations set forth in\nthe Notice:\na. $30,500, as proposed for Item 3 in the Notice, for the alleged violation of\n49 C.F.R. § 195.402(a);\nb. $10,500, as proposed for Item 4 in the Notice, for the alleged violation of\n49 C.F.R.§ 195.266;\nc. $10,500, as proposed for Item 6 in the Notice, for the alleged violation of\n49 C.F.R. § 195.555; and\nd. $ 11,600, as proposed for Item 7 in the Notice, for alleged violation of\n49 C.F.R. § 195.585(a)(1).\n21. Payment of the $63,100 must be made within 15 days of the Effective Date, as defined below.\nFederal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer\nthrough 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) 954-8893.\n22. 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.\n23. 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 Carteret Project and other compliance\nterms of this Agreement are being undertaken in conformity with the terms of this Agreement.\n24. 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.- 5 -\n\n\n\n25. Each undersigned representative of the Parties certifies that he is fully authorized by the party\nrepresented to enter into the terms and conditions hereof and to execute and legally bind that party to\nit.\nVIII. Effective Date and Term.\n26. The “Effective Date” as used herein is the date on which this Agreement is signed by both\nKMLT and PHMSA. Unless specified to the contrary, all deadlines for actions required by the\nAgreement run from the Effective Date of the Agreement.\nIX. Termination.\n27. 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\ndetermined by the Director. Respondent may request, and PHMSA will provide, written confirmation\nwhen this Agreement is terminated. Nothing in this Agreement prevents Respondent from completing any\nof 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- 6 -\n\n\n\nAPPENDIX A\n[INSERT COPY OF NOPV]\n\n\n\nKinder Morgan Liquids Terminals, LLC\nTERMINALS PROCEDURE\nSubstantiation of Terminal Piping Maximum\nOperating Pressure (MOP)\nCarteret Terminal, Carteret, 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) North East\nRegion procedures for establishing and documenting MOP for each DOT jurisdictional\nsegment of pipe at its terminal facility located in Carteret, New Jersey (the Carteret Project\nor Project), as required pursuant to the Consent Agreement and Order between PHMSA\nand KMLT regarding CPF No. 1-2011-5009, dated\nThe Project includes 100 piping segments, and will involve pressure testing each\njurisdictional segment in order to substantiate MOP in accordance with the pipeline\nsafety regulations, found at 49 C.F.R. Part 195. The Carteret Terminal operates under an\nestablished MOP of 285 psi, based on maximum pressure rating of installed flanges. The\nfollowing procedures and schedule is designed to substantiate the established MOP in\naccordance with 49 C.F.R. Part 195. This procedure follows existing KMLT O&M\nProcedure T-O&M 1600 (Strength and Leak Testing) (attached), as applicable.\n3.0 TESTING PROCEDURES\nKMLT will implement the following methods for executing the Project:\n3.1 Identify line segments and internal design pressure\n3.1.1 Using Piping and Instrumentation Diagrams (P&ID’s), break down\npiping systems or segment details, number of flanges, appurtenances,\nmeasurements, etc.\n3.1.2 Identify line segments for manageable testing.\n3.1.3 Research and document to ensure that all pipe components of the line\nsegment are capable of the target test pressures. (Refer to test pressures in 3.3.1)\n3.2 Testing Preparation\n3.2.1 Develop an air elimination procedure to mitigate risk of air being injected\ninto tanks and potentially causing floating roof damage and/or sinking of\nroofs.\n3.2.2 Assemble and issue specifications for piping, valves, blinds, fittings,\nflanges, gaskets, studs, and nuts, etc.\nSecure and/or have on stand-by replacements for piping, valves, fittings,\n3.2.3\n\n\n\n3.2.3 3.2.4 3.2.5 3.2.6 gauges, gaskets, etc.\nEvacuate line segments to appropriate storage tank.\nDrain line segments of any residual products to vacuum trucks and into\nstorage tanks.\nRemove and plug all appurtenances on line segments, except for 1-2 low\npoint drains.\nInstall slip blinds for segments to be tested. Employ Lock-Out Tag-Out.\n3.2.7 Review contractor pressure test equipment calibration and verify\nequipment records.\n3.3 Conduct pressure tests2\n3.3.1 Conduct pressure tests at 1.25 x 285 psi or 357 psi for four hours for above-\nground pipe and an additional four hours at 1.10 x 285 psi or 314 psi for\nunderground pipe. Pressure test must be conducted in accordance with\n§195.304.\nUse water as a test medium for each line segment.\nCommence pressure test by slowly ramping up pressure in increments until\nthe test pressure is met. Four hours at 357 psi and an additional four hours\nat 314 psi, depending on line segment. (Refer to calculations in 3.3.1)\nRecord pressure, ambient temperature and pipe temperature and monitor\npressure changes.\nInspect line segment for leakage for the duration of the test.\nIf a leak and/or failure occur, then that line segment must be retested.\nEvaluate chart recorder and check that the test meets 49 C.F.R. Part 195\nrequirements.\n3.4 Completion\n3.4.1 3.3.2 3.3.3 3.3.4 3.3.5 3.3.6. 3.3.7 Upon completion, begin system drain of test medium to vacuum trucks.\n2 For a map showing the jurisdictional components of Respondent’s system, see drawings entitled, “Kinder Morgan\nCarteret, NJ, Liquids Terminal, East & West Tank Field P&ID’s,” prepared by STV Incorporated, consisting of 105\nsheets, dated May 6, 2013 (on file with PHMSA Eastern Region).\n\n\n\n3.4.2 3.4.3 3.4.4 3.4.5 Place test medium in Baker style tanks for reuse in other pipe segments.\nDe-water with nitrogen to remove as much water as possible from low\npoint drains.\nRe-install appurtenances on pipe segments, utilizing new Flexitallic\ngaskets and new nuts and bolts.\nRemove Lock-Out Tag–Out controls and isolation blinds and returns\nsegment 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, contractors, and\nmembers of the public, including “essential personnel” who are or might be in\nproximity to the facilities undergoing testing.\nMaintaining a safe distance for everyone, or providing adequate barriers or other\nprotections, if necessary to have personnel in the vicinity of the facilities being\ntested.\nEveryone on site during the test must be informed of the procedures and a pre-\nstart up safety review must be conducted.\nThe testing team should also be asked to survey the site to identify and remove, as\nappropriate, any loose material that might present a hazard in the event of failure.\nDo not use swell plugs or plumber’s plugs/night caps for performing pressure\ntests.\n5.0 PROJECT SCHEDULE\nKMLT has developed a schedule to complete all jurisdictional segment testing on the\nCarteret Terminal by May 31, 2015. This schedule will best accommodate KMLT’s\nefforts to conduct the work safely and with minimal fuel-supply disruption to local\nmarkets. The following table reflects KMLT’s projected schedule for segment testing,\nwhich will resume in the spring of 2013. Designation and sequencing of specific\nsegments for testing during a given season will be at KMLT’s discretion and guided by risk\nassessment principles. As outlined further below, KMLT will provide periodic progress\nreports to PHMSA so that the agency may track implementation of the Carteret Project.\nIn the first progress report, KMLT will also include documentation of the segments tested\nin 2012 for PHMSA’s review.\n\n\n\nProposed Carteret Project Execution Plan\nTotal\n2012\n2013\n2014\n2015\nSegments\nSegments\nSegments\nSegments\nSegments\n100 Total:\n3\nTotal:\n45\nTotal:\n43\nTotal:\n9\n6.0 TRAINING\nPersonnel performing the Project must meet the requirements of the KM Operator\nQualification program.\n7.0 DOCUMENTATION\nSpecific records identified in this section are to be retained in accordance with T-O&M\nProcedure 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 Report.\nThis report will be a permanent record and may be used to satisfy regulatory agencies.\nRetain the test report for as long as the facility is in use. Be sure that the data is\ncomplete, self-explanatory, and in accordance with 49 C.F.R. 195.310. Attach the\nfollowing to the test report:\n7.1.1 Pressure recording chart signed by the person responsible for making the\ntest.\n7.1.2 Temperature recording chart signed by the person responsible for making\nthe test.\n7.1.3 Dead weight gauges and pressure recorder calibration certification.\n7.1.4 Where elevation difference in the section under test exceeds 100 feet, a\nprofile of the pipeline that shows the elevation and test sites over the entire\nlength of the test section.\n\n\n\n7.1.5 Complete all sections of T-OM1600-01, Pressure Test Report. If a part of\nthe form is not applicable, insert N/A (not applicable) so every section is\ncompleted. A company representative must sign all reports.\n7.1.6 The “Pressure Test Report” shall contain the following information:\n• Kinder Morgan’s Business Unit’s name.\n• The name of the person responsible for making the test (Test Supervisor).\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 failures and\ntemperature deviations that appear on the pressure recording charts.\n7.2 Additional Testing Reports\nIn addition to the strength test report, complete the following if applicable when\ntesting pipeline facilities:\n7.2.1 T-OM200-02, Pipeline Inspection/Repair Report distribute as stated on\nform.\n7.2.2 Retain Survey Notes: Include all pressure test report numbers in the\nsurvey notes. Forward completed notes to the project management group.\n7.3 PHMSA Reporting\nPHMSA has requested that KMLT provide progress reports and other\nopportunities for information-sharing during implementation of the Project.\n7.3.1 Commencing no more than 90 days after the Effective Date of\nthe Agreement and continuing every 90 days thereafter, until the\nCarteret Project Completion Report, as described below, has been filed\nand accepted by PHMSA, KMLT will submit quarterly progress reports to\nPHMSA, describing all work performed during the preceding quarter\nand the safety impacts and implications of the Carteret Project to date.\n\n\n\n7.3.2 7.3.3 The quarterly reports will include a segment completion inventory\nspreadsheet, attached as Attachment A.\nWithin 90 days after completion of the Carteret Project. KMLT will file a\nCarteret Project Completion Report with the Director. Said report will\ncontain, at minimum, the following 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 pursuant to the\nprovisions of the Project plan.\n• Verification that all jurisdictional assets have been pressure tested.\nAll reports, including the Carteret Project Completion Report, shall be\nsubmitted to the Director. As the person responsible for monitoring\nRespondent’s compliance with the terms of this Agreement, the Director\nmay request any additional documentation, studies, or reports reasonably\nnecessary to verify compliance with the terms of the Project plan.\n* * * *\n\n\n\nATTACHMENT A\nQUARTERLY PROGRESS\nREPORT\n[DATE]\nKinder Morgan Liquids Terminals,\nLLC\nTerminal Maximum Operating Pressure (MOP) Substantiation Project\nCARTERET TERMINAL, CARTERET, NJ\nSegment\nP&ID\nName\nNumbers\nTest Date Pass / Fail Test Pressure\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\n120115009_NOPV-PCP-PCO_10122011_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 Safety Administration\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nExpress Overnight Mail\nOctober 12, 2011\nMr. David Vattimo\nRegional Vice President\nKinder Morgan Liquid Terminals, LLC\n8500 West 68th Street\nArgo, IL 60501\nCPF 1-2011-5009\nDear Mr. Vattimo:\nOn November 15-19, 2010, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the\nfacility of Kinder Morgan Liquid Terminal LLC (KM) in Carteret, New Jersey.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violations are:\n1. §195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline\nsystems that include at least the following information;\n\n\n\n120115009\n(2) All crossings of public roads, railroads, rivers, buried utilities, and\nforeign pipelines.\nKM failed to maintain maps and records of the Carteret facility that included all\ncrossings of public roads, railroads, rivers, buried utilities and foreign pipelines.\nDuring the field review of Carteret Terminal, a PHMSA representative requested\nKM personnel to provide documentation of the location of each pipeline within\nthe Carteret facility. KM did not have any maps, records or documentation\ndepicting the crossings of any public roads, railroads, rivers, buried utilities, or\nforeign pipelines within the KM Carteret facility.\n2. §195.404 Maps and Records.\n(a) Each operator shall maintain current maps and records of its pipeline\nsystems that include at least the following information;\n(3) The maximum operating pressure of each pipeline.\nKM failed to maintain maps and records of the Carteret facility that included the\nmaximum operating pressure (MOP) of each pipeline.\nDuring the field review of Carteret Terminal, a PHMSA representative requested\nKM personnel to provide documentation of the MOP of each pipeline at the\nCarteret facility. KM did not have any records or documentation demonstrating\nthe established MOP of each pipeline at its Carteret facility.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and\nemergencies. This manual shall be reviewed at intervals not exceeding 15\nmonths, but at least once each calendar year, and appropriate changes made\nas necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline commence, and appropriate\nparts shall be kept at locations where operations and maintenance activities\nare conducted.\nKM failed to follow its procedure, T-O&M 406-Welding Inspection and Testing\ndated 3/24/2009 Item 3 page 1, that states a “qualified welding inspector must\ninspect each weld being made to ensure that the proper welding procedure was\nfollowed and the finished weld meets applicable standards and codes.”\nDuring the field review, a PHMSA representative observed ongoing construction\nwork involving the pipe replacement of Tank 120 line from Dock 2 Header to\n2 of 7\n120115009_NOPV-PCP-PCO_10122011\n\n\n\n120115009\nTank 120, near the Pit 44 area. KM personnel indicated that construction\ncommenced in August 2010 and that no qualified welding inspector was on-site or\navailable to ensure that the finished weld met applicable standards and codes.\n4. §195.266 Construction records.\nA complete record that shows the following must be maintained by the\noperator involved for the life of each pipeline facility:\n(a) The total number of girth welds and the number nondestructively tested,\nincluding the number rejected and the disposition of each rejected weld.\n(b) The amount, location, and cover of each size of pipe installed.\n(c) The location of each crossing of another pipeline.\n(d) The location of each buried utility crossing.\n(e) The location of each overhead crossing.\n(f) The location of each valve and corrosion test station.\nAt the time of the inspection, KM did not produce any records or documentation\nconcerning piping construction to Tank 100-4 and Tank 100-5 that was completed\nin August 2010. KM failed to maintain records as prescribed in §195.266 for this\nconstruction project.\n5. §195.412 Inspection of rights-of-way and crossings under navigable waters.\n(b) Except for offshore pipelines, each operator shall, at intervals not\nexceeding 5 years, inspect each crossing under a navigable waterway to\ndetermine the condition of the crossing.\nKM failed to adequately inspect Line 1206 which runs under the Rahway River, a navigable\nwaterway, to determine the condition of the crossing. The crossing was inspected in the year\n2003 and in the year 2008; however, KM could not determine the depth of cover on the line at\nthe time of the 2008 inspection due to an inoperable pipe locator transmitter. As of the date of\nthe inspection, KM had not scheduled a subsequent inspection to determine the condition of the\ncrossing, as required by § 195.412(b).\n6. §195.555 What are the qualifications for supervisors?\nYou must require and verify that supervisors maintain a thorough\nknowledge of that portion of the corrosion control procedures established\nunder Sec. §195.402(c)(3) for which they are responsible for insuring\ncompliance.\nKM failed to verify that the supervisor maintained thorough knowledge of that portion of\nthe corrosion control procedure established under Sec. §195.402(c)(3) for which they are\nresponsible.\n3 of 7\n120115009_NOPV-PCP-PCO_10122011\n\n\n\n120115009\nAn interview with KM’s supervisor during the inspection of its corrosion control records\ndemonstrated that KM’s supervisor had no knowledge of its corrosion control procedures.\nKM’s supervisor depended on a third party contractor to perform corrosion control\ninspections and then filed the records without ensuring compliance with 49 CFR Part 195\nSubpart H. KM had no documentation that showed that the supervisor received formal or\ntechnical training commensurate with the supervisor’s responsibilities. In addition, KM\ndid not have another qualified supervisor interpret the corrosion control records.\n7. §195.585 What must I do to correct corroded pipe?\n(a) General corrosion. If you find pipe so generally corroded that the remaining\nwall thickness is less than that required for the maximum operating pressure of the\npipeline, you must replace the pipe. However, you need not replace the pipe if you--\n(1) Reduce the maximum operating pressure commensurate with the strength of the\npipe needed for serviceability based on actual remaining wall thickness…\nDuring a review of its records, a PHMSA representative discovered that, according to an\natmospheric corrosion survey performed in 2009, some pipelines had thickness data\nshowing greater than 50% wall loss. KM had twenty-one (21) indications on its\naboveground pipelines that measured above 50% wall loss. KM was unable to produce a\nremedial report indicating that it replaced these pipes associated with the twenty one (21)\nindications or reduced MOP commensurate with the strength of the pipe. Furthermore,\nKM could not calculate the remaining strength of the pipe segment based on actual\nremaining wall thickness because KM did not have any documentation or knowledge of\nthe actual MOP of the pipelines.\nProposed Civil Penalty\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000\nfor each violation for each day the violation persists up to a maximum of $1,000,000 for any\nrelated series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violations and has recommended that\nyou be preliminarily assessed a civil penalty of $89,800 as follows:\nItem number PENALTY\n3 $30,500\n4 $10,500\n5 $26,700\n6 $10,500\n7 $11,600\n4 of 7\n120115009_NOPV-PCP-PCO_10122011\n\n\n\n120115009\nProposed Compliance Order\nWith respect to items numbers 1-7 pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to KM.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this\nNotice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Compliance 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.\nPlease address your correspondence to Byron Coy, PE, Director, PHMSA Eastern, 820 Bear\nTavern Rd, Suite 103, Bear Tavern Rd, W. Trenton, NJ 08628. Please refer to CPF 1-2011-5009\nand for each document you submit, please provide a copy in electronic format whenever\npossible.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n5 of 7\n120115009_NOPV-PCP-PCO_10122011\n\n\n\n120115009\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Kinder Morgan Terminal, LLC (KM) a\nCompliance Order incorporating the following remedial requirements to ensure the compliance\nof KM with the pipeline safety regulations:\n1. Regarding Item Number 1 of the Notice pertaining to §195.404(a)(2), KM must update set\nof alignment maps to illustrate all current crossings of public roads, railroads, rivers, buried\nutilities and foreign pipelines within 120 days of receipt of the Final Order.\n2. Regarding Item Number 2 of the Notice pertaining to §195.404 (a)(3), KM must submit\nadequate related historical records of the maximum operating pressure (MOP) of all its\njurisdictional pipeline system in or affiliated with the Carteret facility within the timeframe\nprescribed in Item 8 of this Compliance Order. If, KM is unable to produce those records,\nKM must complete a pressure test pursuant to 49 CFR, Part 195, Subpart E to establish the\nMOP of its pipeline facility, or reduce the presumed maximum operating pressure to 80\npercent of the operating pressure to which each pipeline segment was subjected for 4 or\nmore continuous hours that can be demonstrated by the methods prescribed in\n§195.406(a)(5) within 150 days of receipt of the Final Order.\n3. Regarding Item Number 3 of the Notice pertaining to §195.402(c)(3), KM must conduct a\nnon-destructive test (NDT) on all welds associated with Tank 120 near Pit 44 in accordance\nwith §195.234. Then, KM must commission a third-party that is qualified by the American\nSociety of Non-Destructive Testing to examine the results, analyze the integrity of the\nwelds and prepare a final report. KM must have a final report from this third-party analysis\nwithin 180 days of receipt of the Final Order.\n4. Regarding Item Number 4 of the Notice pertaining to §195.266, KM must have completed\nrecords of piping construction to Tank 100-4 and Tank 100-5 in accordance with §195.266\nwithin 90 days of receipt of the Final Order.\n5. Regarding Item Number 5 of the Notice pertaining to §195.412(b), KM must conduct a\nthorough inspection of the crossing under the Rahway River. KM must have the results of\nthe inspection within 90 days of receipt of the Final Order.\n6. Regarding Item Number 6 of the Notice pertaining to §195.555, KM must have\ndocumentation demonstrating that the supervisor, who is responsible for corrosion control,\nhas undergone training sufficient to acquire adequ","truncated":true,"body_characters":43849}