{"operation":"document","citation":"CPF 120165012M","title":"KINDER MORGAN LIQUID TERMINALS, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-11-02","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165012m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165012m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120165012m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120165012M","body":"Notice of Amendment involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3). The case was opened on 2016-11-02 and is reported as closed as of 2017-01-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120165012M_Closure Letter_01272017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165012M/120165012M_Closure%20Letter_01272017.pdf\n\n120165012M_Closure Letter_01272017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165012M/120165012M_Closure%20Letter_01272017_text.pdf\n\n120165012M_Notice of Amendment_11022016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165012M/120165012M_Notice%20of%20Amendment_11022016.pdf\n\n120165012M_Notice of Amendment_11022016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165012M/120165012M_Notice%20of%20Amendment_11022016_text.pdf\n\n120165012M_Operator Response to Notice and Request for Time_11302016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120165012M/120165012M_Operator%20Response%20to%20Notice%20and%20Request%20for%20Time_11302016.pdf\n\n120165012M_Notice of Amendment_11022016_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nNovember 2, 2016\nCarlos Mungia\nVice President – Operations & Engineering\nKinder Morgan Liquid Terminals, LLC.\n8500 W 68th Street\nArgo, IL 60501\nCPF 1-2016-5012M\nDear Mr. Mungia:\nFrom July 27 – 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) procedures in Perth Amboy and Carteret, New\nJersey.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nKMLT’s plans or procedures, as described below:\n1. §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 operations and emergencies. . .\nKMLT’s procedures for handling abnormal operations and emergencies were inadequate in that\nthey failed to include sufficient guidance for responding to abnormal operations as per\n195.402(d). During the inspection, the PHMSA inspector reviewed KMLT’s T-O&M Procedure\nNo. 1101-Response to Notice of Emergency or Abnormal Operations, revised 4/29/2015, and\nKMLT’s Abnormal Operating Condition (AOC) Data Gathering Reports from 2012 through\n2015.\nT-O&M 1101 Section 3.1, Receiving, Identifying and Classifying Notices of Events, states in\npart that:\n\n\n\n1-2016-5012M\n“3.1.2 Monitoring For and Recognizing an Emergency or Abnormal Condition\n. . .\n3.1.2.4 Report to the supervisor(s) as appropriate. Operations may continue only if it is\ndetermined to be safe by the control room manager.\n. . .\n3.2.5. The Controller/Operator shall notify appropriate personnel to begin the\ninvestigation of the abnormal operating condition.\n. . .\n3.5.1. Occasionally, field maintenance or an abnormal condition may require operating\nunder reduced pressure or flow conditions. Controller(s) must ensure that connecting\nterminals that inject into the pipeline are aware of such limits. Adhere to limits until . . .\nthe abnormal conditions have been cleared by the control room manager.\n. . .\n3.7.1.4. Notify the local management when communications are out for an abnormal\nperiod of time.\n. . .\n5. Documentation\nDocumentation may include: . . .”\nThe procedure failed to provide details such as:\n1. Criteria for (paragraph 3.1.2.4)\na. Determining when it is “appropriate” to report an AOC to the supervisor.\nb. Determining that it is safe to continue operations.\nc. Documenting the decision to continue operations.\n2. Identifying the personnel that must be notified to begin an investigation of an AOC\n(paragraph 3.2.5).\n3. Requirements for documenting:\na. AOCs\nb. A decision to return to full pressure or flow conditions when the AOCs have been\n“cleared by the control room manager” (paragraph 3.5.1).\n4. Criteria for notifying local management when communications are out of service\n(paragraph 3.7.1.4).\n120165012M_NOA_11022016 Page 2 of 6\n\n\n\n1-2016-5012M\n5. Specifics on documentation, such as what must be documented and what forms must be\nused (Section 5).\na. KMLT provided records from 2012 through 2015 on “KMLT’s Abnormal\nOperating Condition (AOC) Data Gathering Reports.” The report was not\nreferenced in KMLT’s procedures, and did not have a form number or revision\ndate.\nb. For the AOCs that occurred on 7/3/15, 6/12/15, and 4/29/15, KMLT could not\nprovide documentation that the control room manager determined that operations\nwere safe to continue.\nThus, KMLT’s procedure did not provide sufficient guidance for handling abnormal operations.\n2. §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 operations and emergencies. . .\nKMLT’s procedures were inadequate in that they did not provide sufficient guidance for\nconducting normal operations and maintenance activities.\nSpecifically, KMLT’s procedures did not adequately address the requirements for breakout tanks\nper API Standard 653 Section 6.9. Reports, incorporated by reference in §195.3(b)(19).\nAPI Standard 653 Section 6.9.1 states in part that: “Each external inspection report and internal\ninspection report along with inspector recommendations and documentation of disposition shall\nbe maintained by the owner/operator for the life of the tank.”\nDuring the inspection, the PHMSA inspector reviewed KMLT’s T-O&M 2101 - Tank\nInspections procedure, revised 4/29/2015. KMLT’s procedure states in part that, “All inspection\ndocumentation, related to this procedure, will be kept in the local file or in a computer\nmaintenance management system (i.e. tank database, etc.), and will be maintained for at least 2\nyears or until the next inspection or test is performed, whichever is longer.”\nThe procedure failed to provide details such as the types of records that must be retained. In\naddition, the recordkeeping retention guidance provided in KMLT’s procedure conflicted\nwith the requirements specified in API Standard 653 Section 6.9.1.\n3. §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 operations and emergencies. . .\nKMLT’s procedures were inadequate in that they did not provide sufficient guidance for\nconducting normal operations and maintenance activities.\nSpecifically, KMLT’s procedures did not adequately address the requirements for breakout tanks\nper API Standard 653 Section 6.9, Reports, incorporated by reference in §195.3(b)(19).\nAPI Standard 653 Section 6.9.3.2 states in part that, “It is the responsibility of the\n120165012M_NOA_11022016 Page 3 of 6\n\n\n\n1-2016-5012M\nowner/operator to review the inspection findings and recommendations, establish a repair scope,\nif needed, and determine appropriate timing for repairs, monitoring and/or maintenance\nactivities.”\nDuring the inspection, the PHMSA inspector reviewed KMLT’s T-O&M 2101 - Tank\nInspections procedure. The procedure failed to provide guidance on items such as the\nindividuals responsible for reviewing inspection findings and recommendations, and establishing\na repair scope.\n4. §195.402(c)(3) Procedural manual for operations, maintenance, and emergencies.\n(a) . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each of\nthe requirements of this subpart and subpart H of this part.\nKMLT’s written procedures in its Operation and Maintenance (O&M) Manual for overpressure\nsafety devices were inadequate in that they failed to include sufficient guidance on how to\nconduct and document inspections of overpressure safety devices as per §195.428.\nSpecifically, KMLT’s T-O&M 703- Pressure Limiting and Relief Devices and Inspections dated\n5/27/2014, did not provide sufficient guidance on conducting and documenting relief valve\ninspections, such as:\n1. What criteria are used to determine acceptable “as-found” and “as-left” relief pressures.\n2. What actions must be taken if the relief valve “as-found” pressure does not meet the\ncriteria.\n3. What criteria are used to determine “pass” and “fail.”\n4. What documentation is required and where it must be recorded, for example:\na. What information must be captured in the “as found”, “as left”, and “inspected\nby” and “contact room contact” columns of form T-OM700-04.\nb. What actions are required if an “Item” on form T-OM700-04 no longer exists.\nDuring the inspection, the PHMSA inspector reviewed KMLT’s O&M Section 703- Pressure\nLimiting and Relief Devices and Inspections dated 11/17/2011 and 5/27/2014. Section 5,\nDocumentation, paragraph 5.1 states “Complete T-OM700-04, Inspection and Tests Performed\non Relief and Pressure Switch Equipment or computer based management system; for inspection\nof relief valves and/or Pressure Switch Equipment.”\nThe PHMSA inspector also reviewed KMLT’s T-OM700-04 records for 2013 and noted the\nfollowing issues:\n120165012M_NOA_11022016 Page 4 of 6\n\n\n\n1-2016-5012M\n1. There was no consistency in the data reported in the “as found” and “as left”\ncolumns. Some entries were blank, some had numeric values, and others stated “open”,\n“closed” or “same”. KMLT was unable to explain of what the words “open” and\n“closed” actually documented.\n2. Some “as left” values exceeded the set point by up to 60%. KMLT could not provide\nadditional information to validate that valves were not returned to service with relief\nsettings that exceeded the set point.\n3. The “control room contact” data reported included names, units, and the word “yes”.\nThus, KMLT’s procedure did not provide sufficient guidance on how to conduct and document\ninspections of overpressure safety devices.\n§195.402(c)(3) Procedural manual for operations, maintenance, and emergencies.\n5. (a) . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each of\nthe requirements of this subpart and subpart H of this part.\nKMLT’s procedures for operating, maintaining, and repairing the pipeline system in accordance\nwith each of the requirements of this subpart and subpart H of this part were inadequate.\nSpecifically, KMLT’s procedure for monitoring atmospheric corrosion did not adequately\naddress the requirement to give particular attention to pipe at soil-to-air interfaces, under thermal\ninsulation, under disbonded coatings, at pipe supports, in splash zones, at deck penetrations, and\nin spans over water, in accordance with 195.583(b).\nDuring the inspection, the PHMSA inspector reviewed KMLT’s O&M procedure “918\nInspecting for Atmospheric Corrosion, revised 4/29/2015. Paragraph 3.6 of the procedure states\nin part that:\n“During inspection, give particular attention to the following components:\n Flange gaps and bolts\n Soil-to-air-interface\n Splash zones\n Air/building interface\n Crevices\n Pipe supports and wear pads\n Pipe under insulation\n Spans/bridges, deck penetrations.”\n120165012M_NOA_11022016 Page 5 of 6\n\n\n\n1-2016-5012M\nThe aforementioned procedure is general and provides minimal guidance on how to give\nparticular attention to each of the stated items.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. Failure to respond within 30 days of\nreceipt of this Notice constitutes a waiver of your right to contest the allegations in this Notice,\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this\nNotice without further notice to you and to issue an Order Directing Amendment. If your plans\nor procedures are found inadequate as alleged in this Notice, you may be ordered to amend your\nplans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting\nthis Notice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this\nenforcement action will be closed.\nIt is requested (not mandated) that Kinder Morgan Liquid Terminals, LLC. maintain\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Byron Coy, P.E.,\nDirector, Eastern Region, Pipeline and Hazardous Materials Safety Administration. In\ncorrespondence concerning this matter, please refer to CPF 1-2016-5012M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nByron Coy, P.E.\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n120165012M_NOA_11022016 Page 6 of 6\n\n120165012M_Closure Letter_01272017_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJanuary 27, 2017\nJoshua Etzel\nVice President – Operations & Engineering\nKinder Morgan Liquid Terminals, LLC.\n78 Lafayette Street\nCarteret, NJ 07008\nCPF 1-2016-5012M\nDear Mr. Etzel:\nFrom July 27 – 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) procedures in Perth Amboy and Carteret, New\nJersey. As a result of the inspection, KMLT was issued a Notice of Amendment (NOA) on\nNovember 2, 2016, which proposed amendment of its procedures.\nKMLT submitted a response to PHMSA on November 30, 2016. In its response, KMLT\nrequested a time extension to make necessary amendments to its procedures. PHMSA granted\nKMLT a 45 time extension. On January 10, 2017 KMLT submitted its amended procedures.\nMy staff reviewed the amended procedures, and it appears that the inadequacies outlined in this\nNOA have been corrected.\nThis letter is to inform you no further action is necessary, and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nRobert Burrough\nActing Director, Eastern Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":15827}