{"operation":"document","citation":"CPF 120205010W","title":"KINDER MORGAN SOUTHEAST TERMINALS — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-06-16","effective_on":null,"summary":"CLOSED warning letter citing 195.404(a)(3), 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120205010w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120205010w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120205010w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120205010W","body":"Warning Letter involving KINDER MORGAN SOUTHEAST TERMINALS. PHMSA's enforcement data identifies the cited regulations as 195.404(a)(3),  195.432(b). The case was opened on 2020-06-16 and is reported as closed as of 2020-06-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120205010W_Warning Letter_06162020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205010W/120205010W_Warning%20Letter_06162020.pdf\n\n120205010W_Warning Letter_06162020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120205010W/120205010W_Warning%20Letter_06162020_text.pdf\n\n120205010W_Warning Letter_06162020_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nJune 16, 2020\nWayne Simmons\nChief Operating Officer-Products Pipelines\nKinder Morgan\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF 1-2020-5010W\nDear Mr. Simmons:\nOn April 22, 2019 to August 2, 2019, an inspector from the Virginia State Corporation Commission, Division\nof Pipeline Safety (VA SCC), acting as Agent for the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) performed an integrated inspection of\nKinder Morgan Southeast Terminals’ (KMST) facilities in both Richmond and Newington, Virginia.\nAs a result of the inspection, it is alleged that you have committed probable violations of the Pipeline Safety\nRegulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violations are:\n1. § 195.404 Maps and records.\n(a) Each operator shall maintain current maps and records of its pipeline\nsystems that include at least the following information:\n(1) …\n(3) The maximum operating pressure of each pipeline.\nKMST failed to maintain current records of its pipeline systems that include the maximum operating pressure\n(MOP) of each pipeline. Specifically, KMST was unable to provide records of the current MOP of facility piping\nat the Richmond 1 Terminal and Richmond 2 Terminal.\nDuring the inspection, the VA SCC inspectors conducted a records review of MOP documentation and requested\nMOP records of its facility piping with respect to the Richmond 1 Terminal and Richmond 2 Terminal. KMST\nwas unable to produce the records requested. VA SCC provided KMST with a Notice of Investigation (NOI) on\nJune 16, 2019, identifying potential violations. In response to the NOI, the KMST performed MOP calculations\non July 6, 2019, and provided the calculations to VA SCC.\n\n\n\nCPF 1-2020-5010W\nTherefore, KMST failed to maintain current records of its pipeline systems that include the maximum operating\npressure of each pipeline.\n2. § 195.432 Inspection of in-service breakout tanks.\n(a) …\n(b) Each operator must inspect the physical integrity of in-service atmospheric\nand low-pressure steel above-ground breakout tanks according to API Std 653\n(except section 6.4.3, Alternative Internal Inspection Interval) (incorporated by\nreference, see § 195.3). However, if structural conditions prevent access to the tank\nbottom, its integrity may be assessed according to a plan included in the operations\nand maintenance 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.\nKMST failed to inspect the physical integrity of in-service atmospheric and low-pressure steel above-ground\nbreakout tanks according to American Petroleum Institute Standard 653, 3rd edition (API 653) (incorporated by\nreference, see § 195.3(b)(19)). Specifically, KMST exceeded the maximum interval for external breakout tank\ninspections for three tanks located at the Newington 1 Terminal, as prescribed in API 653, Section 6.3.2.1.\nAPI 653 stated in part:\nSection 6 – INSPECTION\n6.3 INSPECTIONS FROM THE OUTSIDE OF THE TANK\n6.3.2 External Inspection\n6.3.2.1 All tanks shall be given a visual external inspection by an authorized inspector. This\ninspection shall be called the external inspection and must be conducted at least every 5 years or\nRCA/4N years (where RCA is the difference between the measured shell thickness and the\nminimum required thickness in mils, and N is the shell corrosion rate in mils per year) whichever\nis less. Tanks may be in operation during this inspection.\nDuring the inspection, the VASCC inspectors conducted a records review of breakout tank inspections for\nKMST’s Newington 1 Terminal. The records demonstrated that breakout tanks 7, 14, and 19 exceeded the\nmaximum interval for external inspection. Table 1 below, created by VASCC based on the information KMST\nprovided in external inspection records, lists external inspections that exceeded the maximum interval.\nTable 1: External inspections exceeding maximum interval\nNewington\n1 Terminal\nDate External\nInspection\nTank 7 Tank 14 Date External\nInspection\n4/28/2011 8/17/2016 3/8/2011 4/18/2016 Tank 19 6/13/2012 6/28/2017 Maximum\nInterval\n5 years\n5 years\n5 years\nTherefore, KMST failed to inspect the physical integrity of in-service atmospheric and low-pressure steel above-\nground breakout tanks according to the interval requirements of API 653 in three instances.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For\nviolation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not\n120205010W_Warning Letter_06162020_text Page 2 of 3\n\n\n\nCPF 1-2020-5010W\nexceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation\noccurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per day, with a\nmaximum penalty not to exceed $2,000,000 for a related series of violations. We have reviewed the\ncircumstances and 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 item(s)\nidentified in this letter. Failure to do so will result in Kinder Morgan Southeast Terminals being subject to\nadditional enforcement action.\nBe advised that all material 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 treatment under\n5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document\nwith the portions you 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).\nNo reply to this letter is required. If you choose to reply, please submit all correspondence in this matter to\nRobert Burrough, Director, PHMSA Eastern Region, 840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628.\nPlease refer to CPF 1-2020-5010W on each document you submit, and whenever possible provide a signed PDF\ncopy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent\non USB flash drive accompanied by the original paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCC: John W. Schlosser, Operating Officer, President, Terminals\nQuintin Frazier, Kinder Morgan Director of Compliance (via email)\n120205010W_Warning Letter_06162020_text Page 3 of 3","truncated":false,"body_characters":7779}