{"operation":"document","citation":"CPF 12020012NOA","title":"ERGON TERMINALING, INC. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-09-17","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-12020012noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020012noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020012noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12020012NOA","body":"Notice of Amendment involving ERGON TERMINALING, INC.. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3). The case was opened on 2020-09-17 and is reported as closed as of 2020-11-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12020012NOA_Closure Letter_11122020_(20-171844).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020012NOA/12020012NOA_Closure%20Letter_11122020_(20-171844).pdf\n\n12020012NOA_Closure Letter_11122020_(20-171844)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020012NOA/12020012NOA_Closure%20Letter_11122020_(20-171844)_text.pdf\n\n12020012NOA_Notice of Amendment_09172020_(20-171844).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020012NOA/12020012NOA_Notice%20of%20Amendment_09172020_(20-171844).pdf\n\n12020012NOA_Notice of Amendment_09172020_(20-171844)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020012NOA/12020012NOA_Notice%20of%20Amendment_09172020_(20-171844)_text.pdf\n\n12020012NOA_Operator Response to Notice_10052020_(20-171844).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020012NOA/12020012NOA_Operator%20Response%20to%20Notice_10052020_(20-171844).pdf\n\n12020012NOA_Closure Letter_11122020_(20-171844)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nNovember 12, 2020\nMr. Jimmy Clunan\nVice President\nErgon Terminaling, Inc.\nP.O. Box 1639\nJackson, MS 39215\nCPF 1-2020-012-NOA\nDear Mr. Clunan:\nFrom February 26, 2020 to June 19, 2020, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\nconducted a virtual pipeline safety inspection of Ergon Terminaling, Inc. (Ergon) procedures. As\na result of the inspection, Ergon was issued a Notice of Amendment on September 17, 2020, which\nproposed amendment of your procedures.\nErgon submitted its amended procedures on October 5, 2020. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment 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\n\n12020012NOA_Notice of Amendment_09172020_(20-171844)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nSeptember 17, 2020\nJimmy Clunan\nVice President\nErgon Terminaling, Inc.\nP.O. Box 1639\nJackson, MS 39215\nCPF 1-2020-012-NOA\nDear Mr. Clunan:\nFrom February 26, 2020 to June 19, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected Ergon Terminaling, Inc’s (Ergon) procedures for its pipeline system in\nMagnolia, Ohio.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nErgon’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\npipeline system a manual of written procedures for conducting normal\noperations and maintenance activities and handling abnormal\noperations and emergencies. This manual shall be reviewed at intervals\nnot exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at\nlocations where operations and maintenance activities are conducted.\nErgon’s written procedures were inadequate. Specifically, Ergon’s Operations and Maintenance\nManual, Magnolia Pipeline, dated January 2015 (O&M), failed to include a process for notifying\nPHMSA of changes in accordance with § 195.64(c).\n\n\n\nCPF 1-2020-012-NOA\nDuring the inspection, the PHMSA inspector requested Ergon’s procedures addressing\n§ 195.64(c)1. Ergon presented its O&M, which lacked a process for making notifications to\nPHMSA regarding certain events as described in the regulation. When the PHMSA inspector\nrequested if there were additional procedures or guidance, Ergon stated there was no further\nguidance.\nTherefore, Ergon failed to include a process in its procedures for reporting changes to PHMSA in\naccordance with § 195.64(c). Ergon must revise its procedures to include a process for making\nthe required notifications.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following\nto provide safety during maintenance and normal operations:\n(1) …\n(3) Operating, maintaining, and repairing the pipeline system in\naccordance with each of the requirements of this subpart and subpart\nH of this part.\nErgon’s procedures were inadequate. Specifically, Ergon’s Integrity Management Plan, revision\nB, dated July 17, 2017 (IM Plan), failed to define what records must be maintained for the useful\nlife of the pipeline in accordance with § 195.452(l)(1).\nSection 195.452(l)(1) states:\n(l) What records must an operator keep to demonstrate compliance?\n(1) An operator must maintain, for the useful life of the pipeline, records that\ndemonstrate compliance with the requirements of this subpart. At a minimum, an\noperator must maintain the following records for review during an inspection:\n(i) A written integrity management program in accordance with paragraph (b)\nof this section.\n(ii) Documents to support the decisions and analyses, including any\nmodifications, justifications, deviations and determinations made, variances, and\nactions taken, to implement and evaluate each element of the integrity management\nprogram listed in paragraph (f) of this section.\nDuring the inspection, the PHMSA inspector requested Ergon’s procedures regarding record\nretention in accordance with the above requirement. Ergon presented its IM Plan, which lacked\ndetails addressing what records are required to be maintained for the useful life of the pipeline.\nWhen the PHMSA inspector requested if there were additional procedures or guidance related to\nthese requirements, Ergon stated there was no further guidance.\nTherefore, Ergon’s procedures were inadequate regarding the requirements of § 195.452(l)(1).\nErgon must revise its IM Plan to address this inadequacy.\n12020012NOA_Notice of Amendment_09172020_(20-171844)_text Page 2 of 5\n\n\n\nCPF 1-2020-012-NOA\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following\nto provide safety during maintenance and normal operations:\n(1) …\n(3) Operating, maintaining, and repairing the pipeline system in\naccordance with each of the requirements of this subpart and subpart\nH of this part.\nErgon’s procedures were inadequate. Specifically, Ergon’s IM Plan failed to include a process for\nthe evaluation of leak detection capabilities and modifying as necessary in accordance with\n§ 195.452(i)(3).\nSection 195.452(i)(3) states:\n(i) What preventive and mitigative measures must an operator take to protect\nthe high consequence area?\n…\n(3) Leak detection. An operator must have a means to detect leaks on its pipeline\nsystem. An operator must evaluate the capability of its leak detection means and\nmodify, as necessary, to protect the high consequence area. An operator's\nevaluation must, at least, consider, the following factors—length and size of the\npipeline, type of product carried, the pipeline's proximity to the high consequence\narea, the swiftness of leak detection, location of nearest response personnel, leak\nhistory, and risk assessment results.\nDuring the inspection, the PHMSA inspector requested Ergon’s procedures regarding a process\nfor leak detection capability evaluation. Ergon presented its IM Plan, which failed to include\nprocedures addressing how Ergon evaluates its leak detection capabilities. The IM Plan’s only\nmention of leak detection capability evaluation was a reference to a Leak Detection System\nCapability Checklist in Appendix G. When the PHMSA inspector requested to review this\ndocumentation in Appendix G, it was not available. The PHMSA inspector received Appendix G\none week after the inspection; however, the Leak Detection System Capability Checklist was not\nincluded.\nTherefore, Ergon’s procedures were inadequate regarding preventative and mitigative measures\nrelated to leak detection and the requirements of § 195.452(i)(3). Ergon must revise its IM Plan\nto address this inadequacy.\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 Enforcement\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\n12020012NOA_Notice of Amendment_09172020_(20-171844)_text Page 3 of 5\n\n\n\nCPF 1-2020-012-NOA\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 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 enforcement\naction will be closed.\nIt is requested (not mandated) that Ergon Terminaling, Inc. maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, PHMSA Eastern Region,\n840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer to CPF 1-2020-012-NOA\non each document you submit, and whenever possible provide a signed PDF copy in electronic\nformat. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent on\nUSB flash drive 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 Enforcement Proceedings\n12020012NOA_Notice of Amendment_09172020_(20-171844)_text Page 4 of 5\n\n\n\nCPF 1-2020-012-NOA\n1 Section 195.64(c) states:\n(a) …\n(c) Changes. Each operator must notify PHMSA electronically through the National Registry of Operators at\nhttps://portal.phmsa.dot.gov, of certain events.\n(1) An operator must notify PHMSA of any of the following events not later than 60 days before the event\noccurs:\n(i) Construction or any planned rehabilitation, replacement, modification, upgrade, uprate, or update of a\nfacility, other than a section of line pipe, that costs $10 million or more. If 60 day notice is not feasible because of an\nemergency, an operator must notify PHMSA as soon as practicable;\n(ii) Construction of 10 or more miles of a new or replacement hazardous liquid or carbon dioxide pipeline;\n(iii) Reversal of product flow direction when the reversal is expected to last more than 30 days. This\nnotification is not required for pipeline systems already designed for bi-directional flow; or\n(iv) A pipeline converted for service under § 195.5, or a change in commodity as reported on the annual report\nas required by § 195.49.\n(2) An operator must notify PHMSA of any following event not later than 60 days after the event occurs:\n(i) A change in the primary entity responsible (i.e., with an assigned OPID) for managing or administering a\nsafety program required by this part covering pipeline facilities operated under multiple OPIDs.\n(ii) A change in the name of the operator;\n(iii) A change in the entity (e.g., company, municipality) responsible for operating an existing pipeline,\npipeline segment, or pipeline facility;\n(iv) The acquisition or divestiture of 50 or more miles of pipeline or pipeline system subject to this part; or\n(v) The acquisition or divestiture of an existing pipeline facility subject to this part.\n12020012NOA_Notice of Amendment_09172020_(20-171844)_text Page 5 of 5","truncated":false,"body_characters":13545}