{"operation":"document","citation":"CPF 120165011W","title":"KINDER MORGAN LIQUID TERMINALS, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-10-31","effective_on":null,"summary":"CLOSED warning letter citing 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165011w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165011w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165011w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120165011W","body":"Warning Letter involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulation as 195.432(b). The case was opened on 2016-10-31 and is reported as closed as of 2016-10-31. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120165011W_Operator Response to Notice_11152016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165011W/120165011W_Operator%20Response%20to%20Notice_11152016.pdf\n\n120165011W_Warning Letter_10312016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165011W/120165011W_Warning%20Letter_10312016.pdf\n\n120165011W_Warning Letter_10312016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165011W/120165011W_Warning%20Letter_10312016_text.pdf\n\n120165011W_Warning Letter_10312016_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nOctober 31, 2016\nMr. Carlos Munguia\nVP, Operations and Engineering\nKinder Morgan Liquid Terminals, LLC\n8500 W. 68th Street\nArgo, IL 60501\nCPF 1-2016-5011W\nDear Mr. Munguia:\nFrom August 31 to September 3, 2015, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code, inspected\nKinder Morgan Liquid Terminals, LLC (KMLT) pipeline terminal in Carteret, New Jersey.\nAs a result of the inspection, it appears that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violation is:\n1. § 195.432(b) Inspection of in-service breakout tanks.\nEach operator must inspect the physical integrity of in-service atmospheric and low-\npressure steel above-ground breakout tanks according to API Std 653 (except\nsection 6.4.3, Alternative Internal Inspection Interval) (incorporated by reference,\nsee §195.3). However, if structural conditions prevent access to the tank bottom, its\nintegrity may be assessed according to a plan included in the operations and\nmaintenance manual under §195.402(c)(3). The risk-based internal inspection\nprocedures in API Std 653, section 6.4.3 cannot be used to determine the internal\ninspection interval.\nKMLT failed to inspect the physical integrity of in-service atmospheric and low-pressure steel\naboveground breakout tanks within the required timeframes, per §195.432(b). Specifically,\nbreakout tank #100-1, also identified as tank #100-1F, was not inspected per American\nPetroleum Institute (API) Standard 653 Section 6.3.2.1, incorporated by reference in\n\n\n\n1-2016-5011W\n§195.3(b)(19).\nSection 6.3.2.1 states in part:\n“All tanks shall be given a visual external inspection by an authorized inspector. This inspection\nshall be called the external inspection and must be conducted at least every 5 years or RCA/4N\nyears…whichever is less… ”\nDuring the inspection, the PHMSA inspector reviewed KMLT’s records for breakout tank\ninspections. The following reports were reviewed for breakout tank #100-1 / #100-1F:\n1. DJA Inspection Services Inc. In-Service Inspection Tank #100-1F, dated April 15, 2010\n2. HMT Atmospheric Storage Tank API 653 Internal/External & Ultrasonic Out-Of-Service\ndated May 18, 2015\nThe external inspection of breakout tank #100-1 was completed 33 days late.\nAccording to a KMLT email to PHMSA, dated September 13, 2015, Tank #100-1F is the same\nas Tank #100-1.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $205,638\nper violation per day the violation persists up to a maximum of $2,056,380 for a related series of\nviolations. For violation occurring between January 4, 2012 to August 1, 2016, the maximum\npenalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed\n$2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012,\nthe maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty\nnot to exceed $1,000,000 for a related series of violations. We have reviewed the circumstances\nand supporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct the\nitem identified in this letter. Failure to do so will result in Kinder Morgan Liquid Terminals,\nLLC being subject to additional enforcement action\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2016-5011W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nByron Coy, P.E.\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120165011W_Warning Letter_10312016 Page 2 of 2","truncated":false,"body_characters":5164}