{"operation":"document","citation":"CPF 12024034WL","title":"CITGO PRODUCTS PIPELINE CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-08-30","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.402(c)(13), 195.402(d)(5), 195.403(c), 195.446(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024034wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024034wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024034wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024034WL","body":"Warning Letter involving CITGO PRODUCTS PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(13),  195.402(d)(5),  195.403(c),  195.446(c)(3). The case was opened on 2024-08-30 and is reported as closed as of 2024-08-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024034WL_Operator Response to Notice_11222024_(23-263975).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024034WL/12024034WL_Operator%20Response%20to%20Notice_11222024_(23-263975).pdf\n\n12024034WL_Warning Letter_08302024_(23-263975).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024034WL/12024034WL_Warning%20Letter_08302024_(23-263975).pdf\n\n12024034WL_Warning Letter_08302024_(23-263975)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024034WL/12024034WL_Warning%20Letter_08302024_(23-263975)_text.pdf\n\n12024034WL_Warning Letter_08302024_(23-263975)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nAugust 30, 2024\nMr. Carlos Jordá\nPresident and Chief Executive Officer\nCitgo Products Pipeline Co\n1289 Eldridge Parkway\nHouston, Texas 77077\nCPF 1-2024-034-WL\nDear Mr. Jordá:\nFrom June 12, 2023 through November 7, 2023 a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), conducted an integrated inspection which included Citgo Products Pipeline Company’s\n(Citgo) Lakemont Pipeline System located near Sour Lake, Texas.\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. § 195.402 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.\nCitgo failed to follow its procedures for conducting post-accident reviews of employee activities\nto determine whether the procedures were effective in each emergency and to take corrective action\n\n\n\nwhere deficiencies were found following the 10/10/20 reported incident (NRC-20200302-34798)\nin Calcasieu County, Louisiana, in accordance with § 195.402(a) and § 195.402(e)(9).1\nDuring the inspection, PHMSA requested records for post-accident reviews of employee activities\nfor the emergency event which occurred on 10/10/20. Citgo provided the Incident Report, dated\n10/11/20 and Accident Report – PHMSA 7000-1 Form, dated 02/03/21 (Incident Records).\nThe Incident Records, however, did not indicate a post-accident review was conducted for the\nemployees involved in the incident, did not state what procedures were reviewed, and did not state\nwhether the related procedures were effective. When PHMSA requested further information,\nCitgo stated there was no need to conduct a post-accident review for this event as it was natural\nforce related.\nThe related procedure, O&M Manual Section G– Accident Reporting, dated 10/22/20 (O&M)\nstated, in part (emphasis added), on pages G-10 and G-13:\nA. Post-Accident Review 195.402\nAny leak or accident that is reported on PHMSA Form F 7000-1 or any event requiring\nemergency response shall have a post accident review.\n…\nC. Documentation\nInformation on PHMSA reportable leaks or accidents shall be maintained at the\nPipeline/Terminal office. The file should contain the following:\n1. Data collected at the site.\n2. Copies of required leak or accident reports.\n3. Results of the post accident review.\n4. Corrective actions taken (if any).\nWhen PHMSA requested additional information related to data collected at the site and results of\nthe post accident review, Citgo was unable to provide a response.\nTherefore, Citgo failed to follow its procedures for conducting a post-accident review of employee\nactivities to determine whether the procedures were effective in the emergency which occurred on\nits Lakemont pipeline system on 10/10/20, in accordance with § 195.402(a) and § 195.402(e)(9).\n2. § 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\n1 § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(e) Emergencies. The manual required by paragraph (a) of this section must include procedures for the following to\nprovide safety when an emergency condition occurs:\n(1) …\n(9) Providing for a post accident review of employee activities to determine whether the procedures were effective\nin each emergency and taking corrective action where deficiencies are found.\n\n\n\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.\nCitgo failed to follow its manual of written procedures. Specifically, Citgo failed to follow its\nO&M Manual Section J– Inspection and Maintenance, dated 09/23/22 (OM – Section J) for\nconducting its annual firefighting extinguisher inspections for calendar years 2021 through 2023\npursuant to § 195.430(a).\nSection 195.430(a) states “[e]ach operator shall maintain adequate firefighting equipment at each\npump station and breakout tank area. The equipment must be in proper operating condition at all\ntimes.”\nThe OM - Section J, page J-37 stated in part “[t]he annual maintenance check includes, for\nexample, a complete examination of all its part, cleaning, replacement or defective parts,\nreassembly, recharging and where appropriate, repressurization…Record the maintenance in the\nappropriate box located on the extinguisher label and on the permanent file by signing your initials\nfollowed by an X.” Additionally, the OM – Section J included an annual maintenance checklist.\nDuring the inspection, PHMSA requested records related to annual firefighting extinguisher\ninspections for calendar years 2021 through 2023 at Citgo’s Lakemont facilities. Citgo provided,\nCintas Fire Protection – Service Receipt Records, dated 2020 – 2023 (Annual Fire Records). The\nAnnual Fire Records, however, failed to include information required per the OM. The Annual\nFire Records include a service receipt with the purchase bill amount to Citgo. The Annual Fire\nRecords failed to include any inspections or checks related to the items listed in the annual\nmaintenance checklist.\nTherefore, Citgo failed to follow its manual of written procedures for conducting and documenting\nits annual firefighting extinguisher inspections for calendar years 2021 through 2023, in\naccordance with § 195.402(a).\n3. § 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.\n\n\n\nCitgo failed to conduct an annual review of its operations and maintenance manual at intervals not\nexceeding 15 months but at least once each calendar year. Specifically, Citgo failed to conduct an\nadequate review of its operations and maintenance manual in the appropriate time interval for\ncalendar years 2020, 2021, and 2022.\nDuring the inspection, PHMSA requested annual review records of the operations and maintenance\nmanual for calendar years 2020 through 2022 at its Lakemont facilities. Citgo provided the\nOperations & Maintenance / Emergency Procedures Plans/ OQ Plan Review Record, dated\n12/15/22, 11/4/21 and 01/22/20. When PHMSA inquired about whether the annual review covers\nthe Citgo integrity management manual as well as all incorporated by reference documents, Citgo\ndiscussed that the annual review only covers operations and maintenance, emergency plans and\noperator qualification plans.\nCitgo provided PHMSA with its Integrity Management Program for Hazardous Liquid Pipelines\n– TPL-EPCC-LIMP, dated 10/01/22 (LIMP). The LIMP stated that the “Review Cycle – 5 Years”.\nThe LIMP stated an incorrect frequency for review of its operations and maintenance manual, as\nLIMP is required to be a part of the operations and maintenance manual pursuant to\n§ 195.402(c)(3) and therefore is subject to the review frequency of § 195.402(a).\nTherefore, Citgo failed to conduct an adequate review of its operations and maintenance manual\nfor calendar years 2020, 2021, and 2022, within the appropriate time interval of not exceeding 15\nmonths but at least once each calendar year, in accordance with § 195.402(a).\n4. § 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(13) Periodically reviewing the work done by operator personnel to\ndetermine the effectiveness of the procedures used in normal operation\nand maintenance and taking corrective action where deficiencies are\nfound.\nCitgo failed to conduct periodic reviews of the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance and taking corrective\naction where deficiencies are found as required by § 195.402(c)(13). Specifically, Citgo failed to\nconduct periodic reviews of the work done by operator personnel throughout calendar years 2020,\n2021, and 2022.\nDuring the inspection, PHSMA requested records related to § 195.402(c)(13) for calendar years\n2020 through 2022 at its Lakemont facilities. Citgo provided Annual Review of Employee\nPerformance, dated 2020, 2021 and 2022 (Performance Reviews). Citgo’s Performance Reviews\nreviewed employee's job performance, but did not provide a review of the effectiveness of the\nprocedures, as required by § 195.402(c)(13). The Performance Reviews failed to indicate what\n\n\n\nprocedure was reviewed by operator personnel in normal operation and maintenance tasks, when\nthe task was completed and what corrective actions were taken if any deficiencies were found.\nTherefore, Citgo failed to conduct periodic reviews of the work done by operator personnel to\ndetermine the effectiveness of the procedures used in normal operation and maintenance and taking\ncorrective action where deficiencies are found in calendar years 2020, 2021, and 2022 in\naccordance with § 195.402(c)(13).\n5. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(d) Abnormal operation. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety\nwhen operating design limits have been exceeded:\n(1) …\n(5) Periodically reviewing the response of operator personnel to\ndetermine the effectiveness of the procedures controlling abnormal\noperation and taking corrective action where deficiencies are found.\nCitgo failed to conduct periodic reviews of operator personnel responses to determine the\neffectiveness of the procedures controlling abnormal operation and taking corrective actions where\ndeficiencies are found as required by § 195.402(d)(5). Specifically, Citgo failed to conduct\nperiodic reviews of operator personnel to determine the effectiveness of the procedures controlling\nabnormal operation and taking corrective action where deficiencies are found in calendar years\n2020, 2021, and 2022.\nDuring the inspection, PHSMA requested records related to § 195.402(d)(5) for calendar years\n2020 through 2022 at its Lakemont facilities. Citgo provided Annual Review of Employee\nPerformance, dated 2020, 2021 and 2022 (Performance Reviews). The Performance Reviews,\nhowever, indicated an annual review of the employee's performance, not an effectiveness review\nof abnormal operation procedures pursuant to § 195.402(d)(5). The Performance Reviews failed\nto indicate what effectiveness reviews were conducted of the abnormal operations response work\ndone, what procedures were reviewed by operator personnel regarding abnormal operations, when\nthe task was completed, and what corrective actions were taken if any deficiencies were found.\nTherefore, Citgo failed to conduct periodic reviews of operator personnel to determine the\neffectiveness of the procedures controlling abnormal operation and taking corrective action where\ndeficiencies are found in calendar years 2020, 2021, and 2022 in accordance with § 195.402(d)(5).\n6. § 195.403 Emergency response training.\n(a) …\n(c) Each operator shall require and verify that its supervisors\nmaintain a thorough knowledge of that portion of the emergency\nresponse procedures established under 195.402 for which they are\nresponsible to ensure compliance.\n\n\n\nCitgo failed to require and verify that its supervisors maintain a thorough knowledge of that portion\nof the emergency response procedures established under § 195.402 for which they are responsible\nfor ensuring compliance. Specifically, Citgo failed to provide adequate records demonstrating\ncompliance with § 195.403(c) during calendar years 2020 through 2022.\nDuring the inspection PHMSA requested emergency response supervisor training records for\ncalendar years 2020 through 2022 at its Lakemont facilities. Citgo provided its Annual Review of\nEmployee Performance, dated 2022 (Performance Reviews). The Performance Reviews did not\ndemonstrate how Citgo verifies its supervisors have maintained a thorough knowledge of the\nportion of the emergency response procedures established under § 195.402 which they are\nresponsible for to ensure compliance.\nThe Performance Reviews did not include any specific details regarding how Citgo requires and\nverifies that its supervisors are knowledgeable of the emergency response procedures for which\nthey are responsible for, any references to § 195.403(c), or any other information on how and\nwhere these requirements are documented. When PHMSA requested additional information on\nhow Citgo meets compliance to the regulation, Citgo stated there is no set form that is used to\ndocument this data.\nTherefore, Citgo failed to require and verify that its supervisors maintain a thorough knowledge\nof that portion of the emergency response procedures established under § 195.402 for which they\nare responsible for ensuring compliance during calendar years 2020 through 2022, in accordance\nwith § 195.403(c).\n7. § 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;\nCitgo failed to test and verify its internal communication plan to provide adequate means for\nmanual operation of the pipeline safely, at least once each calendar year, but at intervals not to\nexceed 15 months, in accordance with § 195.446(c)(3). Specifically, Citgo failed to provide\nrecords that demonstrate it tested and verified its internal communication plan at least once each\ncalendar year, but at intervals not to exceed 15 months during calendar years 2020 and 2021 at its\nLakemont, Texas pipeline facility.\nDuring the inspection, PHMSA requested records for calendar years 2020 and 2021 related to the\ntesting of the internal communication plan at the Lakemont, Texas facility. Citgo provided the\nSCADA Communication Outage Byran Control Center record, dated 04/03/20 and 04/11/21\n(SCADA Records). The SCADA Records were loss of power communication events that occurred\n\n\n\nat the main control center in Bryan, Texas, and did not demonstrate testing of the internal\ncommunication plan. When PHMSA requested additional information about how the SCADA\nRecords demonstrate testing of the internal communication plan in place at the Lakemont facilities,\nCitgo discussed how they use actual events in lieu of testing. However, the events did not\ndemonstrate a full test and verification for the manual operation of the pipeline.\nTherefore, Citgo failed to test and verify its internal communication plan to provide adequate\nmeans for manual operation of the pipeline safely, at least once each calendar year, but at intervals\nnot to exceed 15 months during calendar years 2020 and 2021 at its Lakemont pipeline facility, in\naccordance with § 195.446(c)(3).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a related\nseries of violations. For violation occurring on or after January 6, 2023 and before December 28,\n2023, the maximum penalty may not exceed $257,664 per violation per day the violation persists,\nup to a maximum of $2,576,627 for a related series of violations. For violation occurring on or\nafter March 21, 2022 and before January 6, 2023, the maximum penalty may not exceed $239,142\nper violation per day the violation persists, up to a maximum of $2,391,142 for a related series of\nviolations. For violation occurring on or after May 3, 2021 and before March 21, 2022, the\nmaximum penalty may not exceed $225,134 per violation per day the violation persists, up to a\nmaximum of $2,251,334 for a related series of violations. For violation occurring on or after\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.\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\nCitgo Products Pipeline Co 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 1-2024-034-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).\n\n\n\nSincerely,\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":20481}