{"operation":"document","citation":"CPF 12022058WL","title":"WOLVERINE PIPELINE CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-08-18","effective_on":null,"summary":"CLOSED warning letter citing 195.446(a), 195.446(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022058wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022058wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022058wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022058WL","body":"Warning Letter involving WOLVERINE PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.446(a),  195.446(c)(3). The case was opened on 2022-08-18 and is reported as closed as of 2022-08-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022058WL_Warning Letter_08182022_(20-194651).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022058WL/12022058WL_Warning%20Letter_08182022_(20-194651).pdf\n\n12022058WL_Warning Letter_08182022_(20-194651)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022058WL/12022058WL_Warning%20Letter_08182022_(20-194651)_text.pdf\n\n12022058WL_Warning Letter_08182022_(20-194651)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nAugust 18, 2022\nMr. Kurt Barclay\nPresident and Chief Executive Officer\nWolverine Pipe Line Company\n8075 Creekside Drive, Suite 210\nPortage, Michigan 49024\nCPF 1-2022-058-WL\nDear Mr. Barclay,\nFrom November 16, 2020, to November 20, 2020, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected Wolverine Pipe Line Company’s (Wolverine) Control Room in Portage,\nMichigan that controls and monitors Wolverine Pipe Line facilities in Michigan.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 195.446 Control room management.\n(a) General. This section applies to each operator of a pipeline\nfacility with a controller working in a control room who monitors and\ncontrols all or part of a pipeline facility through a SCADA system.\nEach operator must have and follow written control room management\nprocedures that implement the requirements of this section…\nWolverine failed to follow its WPLCO OCC Control Room Management Plan, Section 8.27 Alarm\nManagement Review which required a review its alarm management plan at least once each\n\n\n\ncalendar year, at intervals not to exceed 15 months for the 2018 calendar year, in accordance with\n§ 195.446(e)(4)1\n.\nDuring the inspection, PHMSA requested records of the annual reviews of Wolverine’s alarm\nmanagement plan for 2018, 2019 and 2020. Wolverine presented records demonstrating that its\nplan was reviewed to determine its effectiveness in 2017, 2019 and 2020. The records of the 2018\nreview failed to demonstrate that an effectiveness review was conducted.\nTherefore, Wolverine failed to follow its WPLCO OCC Control Room Management Plan, Section\n8.27 Alarm Management Review which required that it perform an annual review of its alarm\nmanagement plan in 2018, as required by § 195.446(e)(4).\n2. § 195.446 Control room management.\n(a) …\n(c) Provide adequate information. Each operator must provide its\ncontrollers with the information, tools, processes and procedures\nnecessary for the controllers to carry out the roles and responsibilities\nthe operator has defined by performing each of the following:\n(1) …\n(3) Test and verify an internal communication plan to provide\nadequate means for manual operation of the pipeline safely, at least\nonce each calendar year, but at intervals not to exceed 15 months.\nWolverine failed to test and verify an internal communication plan for providing adequate means\nfor manual operation of its pipeline safely, at least once each calendar year, but at intervals not to\nexceed 15 months.\nDuring the inspection, Wolverine was asked to submit records demonstrating that they had tested\nand verified its internal communication plan for manual operation of the pipeline in 2018, 2019\nand 2020. Records provided by the operator showed that it only created a plan in 2020, after an\nactual loss of SCADA and Corporate network on 1/20/2020. The SCADA loss led to investigation\nreport # 252877 which recommended an annual testing plan.\nTherefore, Wolverine failed to create, test, and verify an internal communication plan for manual\noperation of its pipeline safely for 2018 and 2019.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related\nseries of violations. For violation occurring on or after May 3, 2021 and before March 21, 2022,\nthe maximum penalty may not exceed $225,134 per violation per day the violation persists, up to\na maximum of $2,251,334 for a related series of violations. For violation occurring on or after\n1 195.446 Control room management.\n(e) Alarm management. Each operator using a SCADA system must have a written alarm management plan to\nprovide for effective controller response to alarms. An operator's plan must include provisions to:\n(4) Review the alarm management plan required by this paragraph at least once each calendar year, but at intervals\nnot exceeding 15 months, to determine the effectiveness of the plan;\n\n\n\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on\nor 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.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nWolverine Pipe Line Company being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2022-058-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":6989}