{"operation":"document","citation":"CPF 12022037NOA","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":"2022-03-15","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3), 195.402(f).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022037noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022037noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022037noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022037NOA","body":"Notice of Amendment involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(3),  195.402(f). The case was opened on 2022-03-15 and is reported as closed as of 2022-06-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022037NOA_Closure Letter_06022022_(21-199002).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022037NOA/12022037NOA_Closure%20Letter_06022022_(21-199002).pdf\n\n12022037NOA_Closure Letter_06022022_(21-199002)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022037NOA/12022037NOA_Closure%20Letter_06022022_(21-199002)_text.pdf\n\n12022037NOA_Notice of Amendment_03152022_(21-199002).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022037NOA/12022037NOA_Notice%20of%20Amendment_03152022_(21-199002).pdf\n\n12022037NOA_Notice of Amendment_03152022_(21-199002)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022037NOA/12022037NOA_Notice%20of%20Amendment_03152022_(21-199002)_text.pdf\n\n12022037NOA_Operator Response to Notice_03282022_(21-199002).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022037NOA/12022037NOA_Operator%20Response%20to%20Notice_03282022_(21-199002).pdf\n\n12022037NOA_Notice of Amendment_03152022_(21-199002)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nMarch 15, 2022\nMr. Steven J. Kean\nPresident and Chief Executive Officer\nKinder Morgan Liquid Terminals, LLC\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF 1-2022-037-NOA\nDear Mr. Kean:\nFrom June 21, 2021 through September 15, 2021, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Kinder Morgan Liquid Terminals, LLC’s (KMLT) procedures in Cincinnati and Dayton,\nOhio, Indianapolis, Indiana, and Argo and Wood River, Illinois.\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) …\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.\nKMLT’s procedures for maintenance and normal operations were inadequate to ensure safe\noperation of a pipeline facility. Specifically, KMLT’s T-O&M 903 External Corrosion Control\nfor Buried or Submerged Pipelines, dated 01/13/21 (Corrosion Manual) failed to require and verify\nthat supervisors maintain a thorough knowledge of that portion of the corrosion control procedures\n\n\n\nCPF 1-2022-037-NOA\nestablished under § 195.402(c)(3) for which they are responsible for insuring compliance in\naccordance with § 195.555.1\nKMLT’s Corrosion Manual Section 3.1 stated in part:\nSupervisors and personnel responsible for insuring compliance with the corrosion\ncontrol processes in this procedure shall maintain a thorough knowledge of\ncorrosion processes and these procedures through means such as:\n• Reviewing this procedure during annual corrosion team meetings or\nindividually if team meetings are not possible. Refer to T-O&M Procedure\n003, Procedure Review.\n• Attending National Association of Corrosion Engineers Training Courses\n• Attending/completing other industry recognized corrosion courses\n• On the job application of the procedures\n• In-house corrosion training and presentations\nHowever, the Corrosion Manual failed to provide details on how KMLT verifies that supervisors\nmaintain a thorough knowledge of the corrosion control procedures. Furthermore, the Corrosion\nManual failed to explicitly require that supervisors review the procedures for which they are\nresponsible for.\nTherefore, KMLT failed to require and verify that supervisors maintain a thorough knowledge of\nthat portion of the corrosion control procedures established under § 195.402(c)(3) for which they\nare responsible for insuring compliance in accordance with § 195.555. KMLT must revise its\nprocedures to address this requirement.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(f) Safety-related condition reports. The manual required by\nparagraph (a) of this section must include instructions enabling\npersonnel who perform operation and maintenance activities to\nrecognize conditions that potentially may be safety-related conditions\nthat are subject to the reporting requirements of § 195.55.\nKMLT’s procedures for safety-related conditions were inadequate to ensure safe operation of a\npipeline facility. Specifically, KMLT’s T-O&M 214 Reporting Pipeline Safety-Related\nConditions, dated 05/27/21 (SRC Procedure) failed to include instructions enabling personnel who\nperform operation and maintenance activities to recognize conditions that potentially may be\nsafety-related conditions that are subject to the reporting requirements of § 195.55.2\n1 49 C.F.R. § 195.555 What are the qualifications for supervisors?\nYou must require and verify that supervisors maintain a thorough knowledge of that portion of the corrosion control\nprocedures established under § 195.402(c)(3) for which they are responsible for insuring compliance.\n2 49 C.F.R. § 195.55 Reporting safety-related conditions.\n(a) Except as provided in paragraph (b) of this section, each operator shall report in accordance with § 195.56 the\nexistence of any of the following safety-related conditions involving pipelines in service:\n12022037NOA_Notice of Amendment_03152022_(21-199002)_text Page 2 of 4\n\n\n\nCPF 1-2022-037-NOA\nWhile the SRC Procedure did include a process for reporting safety-related conditions, it did not\ninclude adequate instructions for operations and maintenance personnel to recognize conditions\nthat may be safety-related conditions. When PHMSA requested additional information regarding\ninstructions enabling personnel to recognize safety-related conditions, KMLT could not provide\nanything further.\nTherefore, KMLT failed to include instructions in its written procedures enabling personnel who\nperform operation and maintenance activities to recognize conditions that potentially may be\nsafety-related conditions in accordance with § 195.402(f). KMLT must revise its procedures to\naddress this requirement.\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.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 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\n(1) General corrosion that has reduced the wall thickness to less than that required for the maximum operating\npressure, and localized corrosion pitting to a degree where leakage might result.\n(2) Unintended movement or abnormal loading of a pipeline by environmental causes, such as an earthquake,\nlandslide, or flood, that impairs its serviceability.\n(3) Any material defect or physical damage that impairs the serviceability of a pipeline.\n(4) Any malfunction or operating error that causes the pressure of a pipeline to rise above 110 percent of its\nmaximum operating pressure.\n(5) A leak in a pipeline that constitutes an emergency.\n(6) Any safety-related condition that could lead to an imminent hazard and causes (either directly or indirectly by\nremedial action of the operator), for purposes other than abandonment, a 20 percent or more reduction in operating\npressure or shutdown of operation of a pipeline.\n(b) A report is not required for any safety-related condition that -\n(1) Exists on a pipeline that is more than 220 yards (200 meters) from any building intended for human occupancy\nor outdoor place of assembly, except that reports are required for conditions within the right-of-way of an active\nrailroad, paved road, street, or highway, or that occur offshore or at onshore locations where a loss of hazardous\nliquid could reasonably be expected to pollute any stream, river, lake, reservoir, or other body of water;\n(2) Is an accident that is required to be reported under § 195.50 or results in such an accident before the deadline for\nfiling the safety-related condition report; or\n(3) Is corrected by repair or replacement in accordance with applicable safety standards before the deadline for filing\nthe safety-related condition report, except that reports are required for all conditions under paragraph (a)(1) of this\nsection other than localized corrosion pitting on an effectively coated and cathodically protected pipeline.\n12022037NOA_Notice of Amendment_03152022_(21-199002)_text Page 3 of 4\n\n\n\nCPF 1-2022-037-NOA\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 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,\nEastern Region, Pipeline and Hazardous Materials Safety Administration, 840 Bear Tavern Road,\nSuite 300, West Trenton, NJ 08628. In correspondence concerning this matter, please refer to CPF\n1-2022-037-NOA and, for each document you submit, please provide a copy in electronic format\nwhenever possible. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should\nbe sent on 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\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n12022037NOA_Notice of Amendment_03152022_(21-199002)_text Page 4 of 4\n\n12022037NOA_Closure Letter_06022022_(21-199002)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJune 2, 2022\nMr. Steven J. Kean\nPresident and Chief Executive Officer\nKinder Morgan Liquid Terminals, LLC\n1001 Louisiana Street, Suite 1000\nHouston, Texas 77002\nCPF 1-2022-037-NOA\nDear Mr. Kean:\nFrom June 21, 2021 through September 15, 2021, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Kinder Morgan Liquid Terminals, LLC’s (KMLT) procedures in Cincinnati and Dayton,\nOhio, Indianapolis, Indiana, and Argo and Wood River, Illinois. As a result of the inspection,\nKMLT was issued a Notice of Amendment (NOA) on March 15, 2022, which proposed\namendment of your procedures. KMLT submitted its amended procedures on March 28, 2022.\nOn May 26, 2022 PHMSA held a meeting to address its concerns with KMLT regarding the\ninadequacies identified in the amended procedures. KMLT re-submitted its amended procedures\non May 26, 2022. My staff reviewed the amended procedures, and it appears that the inadequacies\noutlined in this Notice of Amendment have been corrected.\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":12743}