{"operation":"document","citation":"CPF 120176007M","title":"PHILADELPHIA ENERGY SOLUTIONS REFINING AND MARKETING, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-09-12","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(3), 195.452(f)(6).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120176007m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120176007m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120176007m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120176007M","body":"Notice of Amendment involving PHILADELPHIA ENERGY SOLUTIONS REFINING AND MARKETING, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  195.452(f)(6). The case was opened on 2017-09-12 and is reported as closed as of 2018-06-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120176007M_Closure letter_06222018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120176007M/120176007M_Closure%20letter_06222018.pdf\n\n120176007M_Closure letter_06222018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120176007M/120176007M_Closure%20letter_06222018_text.pdf\n\n120176007M_Notice of Amendment_09122017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120176007M/120176007M_Notice%20of%20Amendment_09122017.pdf\n\n120176007M_Notice of Amendment_09122017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120176007M/120176007M_Notice%20of%20Amendment_09122017_text.pdf\n\n120176007M_Operator Response to Notice_10042017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120176007M/120176007M_Operator%20Response%20to%20Notice_10042017.pdf\n\n120176007M_Notice of Amendment_09122017_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nSeptember 12, 2017\nJohn Pickering\nSenior Vice President, Manufacturing\nPhiladelphia Energy Solutions Refining and Marketing, LLC\n3144 Passyunk Avenue\nPhiladelphia, PA 19145\nCPF 1-2017-6007M\nDear Mr. Pickering:\nBetween October 14 and November 16, 2015, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS) pursuant to Chapter\n601 of 49 United States Code (U.S.C.) inspected certain procedures of Philadelphia Energy\nSolutions Refining and Marketing, LLC’s (PES) operation and maintenance manual and integrity\nmanagement program along with associated records in Philadelphia, Pennsylvania.\nBased on this inspection, PHMSA has identified the apparent inadequacies found within PES’s\nplans 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\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies…\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\nmaintenance and normal operations: …\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\n\n\n\nCPF 1-2017-6007M\nPES’s procedures for operating, maintaining and repairing the pipeline system in accordance with\neach of the requirements of Subpart F and Subpart H of Part 195 were inadequate. Specifically,\nPES did not prepare procedures for inspecting crossings under navigable waters in accordance\nwith § 195.412(b).\nDuring this inspection, the PHMSA representative requested to review its procedure for inspecting\ncrossings under navigable waters. In response, PES presented its Operations & Maintenance\nManual for DOT-Regulated Pipelines 49 CFR 195 Revision Date: 7/19/2015, Subpart F-\nOperation and Maintenance, 195.412 Inspections of Rights-of-Way and Crossing Under\nNavigable Waters. The procedure did not include a process for inspecting crossings under\nnavigable waters in accordance with § 195.412(b).\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\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies…\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\nmaintenance and normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nPES’s procedures for operating, maintaining and repairing the pipeline system in accordance with\neach of the requirements of Subpart F and Subpart H of Part 195 were inadequate. Specifically,\nPES’s Operations & Maintenance Manual for DOT-Regulated Pipelines 49 CFR 195 Revision\nDate: 7/19/2015, Subpart F- Operation and Maintenance, Section 195.573 What Must I do to\nMonitor External Corrosion Control? did not adequately require remedial actions to correct\ndeficiencies found during monitoring for external corrosion in accordance with § 195.573(e).\nSection 195.573 What Must I do to Monitor External Corrosion Control? states that cathodic\nprotection system deficiencies “shall be evaluated, with remedial actions taken within a reasonable\ntime (emphasis added).” The procedure also states “[i]f the bond current deviates significantly\nfrom acceptable levels, the reason shall be evaluated and remedial action (if required) initiated\nwithin a reasonable time (emphasis added).” However, the procedure did not specify a timeframe\nto correct the deficiencies “within a reasonable time.”\n3. §195.452 Pipeline integrity management in high consequence areas.\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions drawn\nfrom results of the integrity assessments, and other maintenance and surveillance\ndata, and evaluation of consequences of a failure on the high consequence area. An\noperator must include, at minimum, each of the following elements in its written\nintegrity management program:\n(6) Identification of preventive and mitigative measures to protect the high\nconsequence area (see paragraph (i) of this section);\n120176007M_Notice of Amendment_09122017_text Page 2 of 4\n\n\n\nCPF 1-2017-6007M\nPES’s process for identifying preventive and mitigative measures to protect the high consequence\narea in its written integrity management program was inadequate. Specifically, PES’s Pipeline\nIntegrity Management Plan, Revision Date: 3/6/2015, 5.6.2. Preventive and Mitigative Measures,\na. Emergency Flow Restricting Devices did not contain clear instructions to determine if\nemergency flow restricting devices (EFRD) is needed on its pipeline segment to protect a high\nconsequence area in the event of hazardous liquid pipeline release, in accordance with\n§ 195.452(i)(4).\nSection 195.452(i)(4) includes specific factors that must be considered in the determination of\nwhether or not an EFRD is needed. PES’s Pipeline Integrity Management Plan,5.6.2. Preventive\nand Mitigative Measures, a. Emergency Flow Restricting Devices states: “If an EFRD\nis considered for use as a mitigative measure, the decision to use it must include the following\nfactors: …” Therefore, the procedure did not clearly require consideration for the factors listed in\n§ 195.452(i)(4) to determine if an EFRD is needed.\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 Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond 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).\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. If you do not respond within 30 days of\nreceipt of this Notice, this 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 Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 60 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 enforcement\naction will be closed.\nIt is requested (not mandated) that Philadelphia Energy Solutions Refining and Marketing, LLC\nmaintain documentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Robert Burrough,\nActing Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, West Trenton,\nNJ 08628. Please refer to CPF 1- 2017-6007M on each document you submit, and whenever\npossible provide a signed PDF copy in electronic format. Smaller files may be emailed to\nrobert.burrough@dot.gov. Larger files should be sent on a CD accompanied by the original paper\ncopy to the Eastern Region Office.\n120176007M_Notice of Amendment_09122017_text Page 3 of 4\n\n\n\nCPF 1-2017-6007M\nAdditionally, if you choose to respond to this (or any other case), please ensure that any response\nletter pertains solely to one CPF case number.\nSincerely,\nRobert Burrough\nActing Director, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n120176007M_Notice of Amendment_09122017_text Page 4 of 4\n\n120176007M_Closure letter_06222018_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJune 22, 2018\nJohn Pickering\nSenior Vice President, Manufacturing\nPhiladelphia Energy Solutions Refining and Marketing, LLC\n3144 Passyunk Avenue\nPhiladelphia, PA 19145\nCPF 1-2017-6007M\nDear Mr. Pickering:\nBetween October 14 and November 16, 2015, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety pursuant to Chapter 601 of\n49 United States Code, conducted an on-site pipeline safety inspection of Philadelphia Energy\nSolutions Refining and Marketing, LLC’s (PES) procedures in Philadelphia, Pennsylvania. As a\nresult of the inspection, PES was issued a Notice of Amendment (NOA) on September 12, 2017,\nwhich proposed amendment of your procedures.\nPES submitted its amended procedures on February 2, 2018 and May 10, 2018. My staff reviewed\nthe amended procedures, and it appears that the inadequacies outlined in this NOA have been\ncorrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":11282}