{"operation":"document","citation":"CPF 120126001W","title":"MAGELLAN TERMINALS HOLDINGS, LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-04-06","effective_on":null,"summary":"CLOSED warning letter citing 195.404(c)(3), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120126001w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120126001w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120126001w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120126001W","body":"Warning Letter involving MAGELLAN TERMINALS HOLDINGS, LP. PHMSA's enforcement data identifies the cited regulations as 195.404(c)(3),  195.589(c). The case was opened on 2012-04-06 and is reported as closed as of 2012-04-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120126001W_Operator Response_06252012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120126001W/120126001W_Operator%20Response_06252012.pdf\n\n120126001W_Warning Letter_04062012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120126001W/120126001W_Warning%20Letter_04062012.pdf\n\n120126001W_Warning Letter_04062012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120126001W/120126001W_Warning%20Letter_04062012_text.pdf\n\n120126001W_Warning Letter_04062012_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\nWARNING LETTER\nOVERNIGHT EXPRESS MAIL\nApril 06, 2012\nMichael C. Pearson\nVice President Technical Services\nMagellan Midstream Partners, L.P.\nOne Williams Center\nTulsa, OK 74172\nCPF 1-2012-6001W\nDear Mr. Pearson:\nOn October 26, 2010, representatives of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Magellan Midstream Partners,\nL.P.’s asset, Magellan Terminal Holdings, L.P.’s (Magellan), in New Haven, Connecticut.\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. §195.404 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.\nMagellan failed to maintain records of inspections required by §195.432(b) for at least 2 years.\nMagellan’s Monthly Tank Inspection records noted the general condition of paint coating on Breakout\nTank # 3H was inadequate from the period 2008 to 2010.\n• At the time of the PHMSA inspection, the PHMSA representative asked if the deficiencies had\nbeen remediated.\n• The Magellan representative stated that the records were completed incorrectly and based on their\nprocedures, the general condition of the paint coating should have been stated as “adequate” and\ntherefore no remediation was required.\n• Therefore, the records were incorrect.\nIncorrect records do not provide an adequate basis for taking appropriate actions to ensure pipeline\nintegrity.\n\n\n\nCPF 1-2012-6001W\n2. §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 detail to\ndemonstrate the adequacy of corrosion control measures or that corrosion requiring control\nmeasures does not exist. You must retain these records for at least 5 years, except that records\nrelated to Secs. 195.569, 195.573(a) and (b), and 195.579(b)(3) and (c) must be retained for as\nlong as the pipeline remains in service.\nMagellan failed to maintain records of atmospheric corrosion inspections required by §195.583(a) in\nsufficient detail to demonstrate the adequacy of corrosion control measures.\nAt the time of the PHMSA inspection, Magellan provided the PHMSA representatives with copies of\nrecords of atmospheric corrosion inspections for the period of 2005 to 2008. According to Magellan, it\nused a grading system for atmospheric corrosion inspections. The records showed inconsistencies in\nregards to the grade and the condition of the interface areas. The following information comes from\nMagellan’s atmospheric corrosion inspections records:\nGrade - Condition of\ninterface area\nLocation Date\n1-G 50% rusted Adequate Tank 11H piping in Area 10.001 September 26, 2005\n1-G 50% rusted Inadequate Station 55+84 Humphrey St. Bridge November 11, 2008\n1-G 50% rusted Adequate Station 77+87 Blatchley St. Bridge to\nShoreline Wall\nNovember 11, 2008\n4-9G<16% rusted Inadequate Station 15+06 Chapel St Bridge September 26, 2005\n4-9G<16% rusted Adequate Humphrey St Bridge September 26, 2005\nDue to the inconsistencies in the records, Magellan did not comply with §195.589(c).\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $100,000 for each\nviolation for each day the violation persists up to a maximum of $1,000,000 for any related series of\nviolations. We have reviewed the circumstances and supporting documents involved in this case, and\nhave decided not to conduct additional enforcement action or penalty assessment proceedings at this time.\nWe advise you to correct the item(s) identified in this letter. Failure to do so will result in Magellan being\nsubject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 1-\n2012-6001W. Be advised that all material you submit in response to this enforcement action is subject to\nbeing made 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 must\nprovide a second copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120126001W_Warning Ltr_04062012 Page 2 of 2","truncated":false,"body_characters":5851}