{"operation":"document","citation":"CPF 120185017M","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":"2018-05-07","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185017m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185017m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120185017m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120185017M","body":"Notice of Amendment involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulation as 195.402(c)(3). The case was opened on 2018-05-07 and is reported as closed as of 2018-09-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120185017M_Closure Letter_09202018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185017M/120185017M_Closure%20Letter_09202018.pdf\n\n120185017M_Closure Letter_09202018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185017M/120185017M_Closure%20Letter_09202018_text.pdf\n\n120185017M_Notice of Amendment_05072018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185017M/120185017M_Notice%20of%20Amendment_05072018.pdf\n\n120185017M_Notice of Amendment_05072018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185017M/120185017M_Notice%20of%20Amendment_05072018_text.pdf\n\n120185017M_Operator Response To Notice_06072018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120185017M/120185017M_Operator%20Response%20To%20Notice_06072018.pdf\n\n120185017M_Closure Letter_09202018_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nSeptember 20, 2018\nMr. Joshua Etzel\nVP – Operations and Engineering\nKinder Morgan Liquid Terminals, LLC\n78 Lafayette Street\nCarteret, NJ 07008\nCPF 1-2018-5017M\nDear Mr. Etzel:\nFrom September 11–13, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Kinder\nMorgan Liquid Terminals, LLC’s (KMLT) procedures and records for breakout tank cathodic\nprotection in Carteret, New Jersey.\nAs a result of the inspection, KMLT was issued a Notice of Amendment (NOA) dated\nMay 7, 2018. KMLT submitted its amended procedures on June 7, 2018. PHMSA reviewed\nKMLT’s amended procedures, and asked KMLT to further amend its procedures to fully address\nthe inadequacies outlined in the NOA on July 13, 2018. On August 14, 2018, KMLT submitted a\nfurther amendment to its procedures. My staff reviewed the amended procedures, and it appears\nthat the inadequacies outlined in this Notice of Amendment have been corrected.\nThis letter is to inform you that no further action is necessary, and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120185017M_Notice of Amendment_05072018_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nMay 7, 2018\nMr. Joshua Etzel\nVP – Operations and Engineering\nKinder Morgan Liquid Terminals, LLC\n78 Lafayette Street\nCarteret, NJ 07008\nCPF 1-2018-5017M\nDear Mr. Etzel:\nFrom September 11 to 13, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Kinder\nMorgan Liquid Terminals, LLC’s (KMLT) procedures and records for breakout tank cathodic\nprotection in Carteret, New Jersey.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacy found within\nKMLT’s plans or procedures, as described below:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section 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.\nKMLT’s procedures were inadequate for operating, maintaining and repairing cathodic protection\ninstalled on breakout tanks, as per § 195.565. Specifically, KMLT’s procedures did not provide\nguidance on which breakout tanks meet compliance with § 195.3(b)(5), incorporated by reference\nANSI/API Recommended Practice (RP) 651.\n\n\n\nCPF 1-2018-5017M\nSection 195.565 states, “After October 2, 2000, when you install cathodic protection under\n§195.563(a) to protect the bottom of an aboveground breakout tank of more than 500 barrels\n79.49m3 capacity built to API Spec 12F (incorporated by reference, see §195.3), API Std 620\n(incorporated by reference, see §195.3), API Std 650 (incorporated by reference, see §195.3), or\nAPI Std 650's predecessor, Standard 12C, you must install the system in accordance with\nANSI/API RP 651 (incorporated by reference, see §195.3). However, you don't need to comply\nwith ANSI/API RP 651 when installing any tank for which you note in the corrosion control\nprocedures established under §195.402(c)(3) why complying with all or certain provisions of\nANSI/API RP 651 is not necessary for the safety of the tank.”\nDuring the inspection, the PHMSA inspector requested procedures related to breakout tank\ncathodic protection. KMLT provided the following Procedures:\n CS 16602 – Cathodic Protection Equipment Installation\n EDS 16602 – Cathodic Protection\n T-O&M 903 – External Corrosion Control for Buried or Submerged Pipelines\nAccording to § 195.565, cathodic protection systems on breakout tanks must be installed in\naccordance with ANSI/API RP 651. The Procedures reviewed did not indicate any guidance to the\naforementioned standard, nor did the Procedures state why compliance with all or certain\nprovisions of ANSI/API RP 651 is not necessary for the safety of existing tanks where ANSI/API\nRP 651’s installation provisions were not followed.\nDuring the inspection, the PHMSA inspector asked KMLT where the Procedures were located.\nKMLT could not provide documentation in their Procedures which justifies not complying with\nANSI/API RP 651.\nIn subsequent follow-up discussions KMLT stated, “The tanks were determined to be DOT on\nOctober 1, 2003. Memo from Dan Kowal is attached.” “There were two documents we left out of\nthe table below (added below highlighted in yellow) – T-O&M SSP 900-002, Carteret Tank CP\nPlan dated 10/23/17 and T-O&M SSP 900-001, Perth Amboy Tank CP Plan dated 10/9/17.” These\ndocuments were created after the inspection. Additionally, the documents were not incorporated\nby reference into KMLT’s O&M manual, nor did they state compliance to § 195.565.\nTherefore, KMLT’s Procedures were inadequate for operating, maintaining and repairing cathodic\nprotection installed on breakout tanks, as per § 195.565.\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).\n120185017M_Notice of Amendment_05072018_text Page 2 of 4\n\n\n\nCPF 1-2018-5017M\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 Kinder Morgan Liquid Terminals, LLC maintain documentation\nof the safety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Robert Burrough, Director,\nPHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. Please refer\nto CPF 1-2018-5017M on each document you submit, and whenever possible provide a signed\nPDF copy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger\nfiles should be sent on a CD accompanied by the original paper copy to the Eastern Region Office.\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\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n120185017M_Notice of Amendment_05072018_text Page 3 of 3","truncated":false,"body_characters":9244}