{"operation":"document","citation":"CPF 220106005M","title":"KEY WEST PIPELINE CO — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2010-10-07","effective_on":null,"summary":"CLOSED notice of amendment citing 195.120(a), 195.402(a), 195.440, 195.559, 195.569, 195.573(c), 195.58.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220106005m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220106005m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220106005m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220106005M","body":"Notice of Amendment involving KEY WEST PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.120(a),  195.402(a),  195.440,  195.559,  195.569,  195.573(c),  195.58. The case was opened on 2010-10-07 and is reported as closed as of 2010-12-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220106005M_closure letter_12212010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220106005M/220106005M_closure%20letter_12212010.pdf\n\n220106005M_closure letter_12212010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220106005M/220106005M_closure%20letter_12212010_text.pdf\n\n220106005M_Notice of Amendment_10072010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220106005M/220106005M_Notice%20of%20Amendment_10072010.pdf\n\n220106005M_Notice of Amendment_10072010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220106005M/220106005M_Notice%20of%20Amendment_10072010_text.pdf\n\n220106005M_Operator Response_11092010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220106005M/220106005M_Operator%20Response_11092010.pdf\n\n220106005M_Notice of Amendment_10072010_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 7, 2010\nMark Rauch\nPresident\nKey West Pipeline Company\nP.O. Box 270415\nHouston, Texas 77277-0415\nCPF 2-2010-6005M\nDear Mr. Rauch:\nOn August 5-6, 2010, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) inspected the Key West Pipeline Company (KWPC) procedural\nmanual for operations, maintenance, and emergencies at your pipeline terminal in\nKey West, FL, pursuant to Chapter 601 of 49 United States Code.\nOn the basis of the inspection, PHMSA has identified apparent inadequacies found within\nKWPC’s procedures as described below:\n1. §195.58 Address for written reports.\nEach written report required by this subpart must be made to the Information\nResources Manager, Office of Pipeline Safety, Pipeline and Hazardous Materials\nSafety Administration, U.S. Department of Transportation, Information Resources\nManager, PHP-10, 1200 New Jersey Avenue, SE., Washington, DC 20590-0001.\nKWPC's procedures were inadequate because they did not include PHMSA's correct\nmailing address. The hazardous liquid pipeline safety regulations in 49 CFR Part 195,\nSubpart B contain certain reporting requirements. KWPC's procedural manual stated that\nreports required by Subpart B were to be submitted to PHMSA headquarters at\n400 Seventh St., Washington D.C. This is incorrect.\nSection 195.58 was changed by an amendment published in the federal register on\nJanuary 16, 2009, (74 FR 2894). In that amendment, PHMSA notified pipeline operators\nthat the reporting address for PHMSA had changed (see above) because of a move to a\nnew building.\n\n\n\n2. §195.120 Passage of internal inspection devices.\n(a) Except as provided in paragraphs (b) and (c) of this section, each new pipeline\nand each line section of a pipeline where the line pipe, valve, fitting or other line\ncomponent is replaced; must be designed and constructed to accommodate the\npassage of instrumented internal inspection devices\nKWPC's procedures were inadequate because its procedural manual did not contain any\nrequirements for the passage of internal inspection devices for newly constructed\nfacilities. New pipeline facilities must be designed and constructed to allow for the\npassage of instrumental internal inspection devices.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nKWPC's procedures were inadequate because Section VII. E of its procedural manual\nstated that “A record of each inspection and test required by any government regulation\nshall be kept for at least two (2) years.”\nWhile that statement reflects the record keeping requirements in Part 195, Subpart A,\nrecord keeping requirements exceed two years in other code sections in Part 195.\nTherefore, the procedures were deficient because some records required by Part 195 must\nbe maintained for more than two years. For example, construction records required by\n§195.266 must be maintained for the life of the facility, and corrosion control records\nrequired by §195.589 must be maintained for at least five years and in some cases for the\nlife of the pipeline.\n4. §195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written continuing public\neducation program that follows the guidance provided in the American Petroleum\nInstitute's (API) Recommended Practice (RP) 1162 (incorporated by reference, see\n§195.3).\n(b) The operator's program must follow the general program recommendations of\nAPI RP 1162 and assess the unique attributes and characteristics of the operator's\npipeline and facilities.\nKWPC's procedures were inadequate because its procedural manual required the Self\nAssessment of Implementation of its Public Awareness Program to be done every four\nyears rather than annually as required by Section 8 of the American Petroleum Institute\nRecommended Practice Public Awareness Programs for Pipeline Operators (API RP\n1162), which is incorporated by reference into the federal pipeline safety regulations.\n2\n\n\n\nKWPC's procedures were also inadequate because its procedural manual requires the Pre-\nTest Effectiveness of Materials of its Public Awareness Program to be done every four\nyears rather than upon design or major redesign of public awareness materials or messages\nas required by Section 8 of API RP 1162.\n5. §195.559 What coating material may I use for external corrosion control?\nCoating material for external corrosion control under §195.557 must –\n(a) Be designed to mitigate corrosion of the buried or submerged pipeline;\n(b) Have sufficient adhesion to the metal surface to prevent under film migration\nof moisture;\n(c) Be sufficiently ductile to resist cracking;\n(d) Have enough strength to resist damage due to handling and soil stress;\n(e) Support any supplemental cathodic protection; and\n(f) If the coating is an insulating type, have low moisture absorption and provide\nhigh electrical resistance.\nKWPC's procedures were inadequate because Section XI of the KWPC procedural manual\ndid not contain sufficient detail on the proper application of pipeline coatings.\nWhile the KWPC procedural manual did list specific coating products for use on\nunderground and above ground portions of pipelines, the manual lacked specifics with\nregards to the proper preparation, application and inspection for the listed coating\nproducts. For a protective coating to perform properly it must be properly applied and\ninspected.\n6. §195.569 Do I have to examine exposed portions of buried pipelines?\nWhenever you have knowledge that any portion of a buried pipeline is exposed, you\nmust examine the exposed portion for evidence of external corrosion if the pipe is\nbare, or if the coating is deteriorated. If you find external corrosion requiring\ncorrective action under §195.585, you must investigate circumferentially and\nlongitudinally beyond the exposed portion (by visual examination, indirect method,\nor both) to determine whether additional corrosion requiring remedial action exists\nin the vicinity of the exposed portion.\nKWPC's procedures were inadequate because Section X.B.2 of its procedures manual\nstates that KWPC will “Inspect any buried pipe that is dug up to assure that the coating\nhas not been damaged, and if the coating is damaged, properly replace the coating to\nassure continued cathodic protection is maintained.”\nThe regulations require more than just the replacement of damaged coating. If damage\ncoating is found when inspecting any portion of an exposed buried pipeline, an operator\nmust also examine the exposed pipe for external corrosion. KWPC's procedures simply\ntell personnel to replace damaged coating without telling them to look for external\ncorrosion before doing so.\n3\n\n\n\n7. §195.573 What must I do to monitor external corrosion control?\n(c) Rectifiers and other devices. You must electrically check for proper performance\neach device in the first column at the frequency stated in the second column.\nDevice Check Frequency\nRectifier\nReverse current switch\nDiode\nInterference bond whose failure would\njeopardize structural protection\nAt least six times each calendar year, but\nwith intervals not exceeding 2 ½ months\nOther interference bond At least once each calendar year, but with\nintervals not exceeding 15 months\nKWPC's procedures were inadequate because Section X.B.1 of its procedural manual states\nthat KWPC will “At intervals not exceeding 2 ½ months, but at least six (6) times each\ncalendar year, inspect each of its cathodic protection rectifiers. Pipe-to-soil potentials are\nread from rectifier outputs…”\nRectifiers are not checked for proper performance by reading pipe-to-soil potentials from\nrectifier outputs. Moreover, pipe-to-soil potential measurements cannot be made by reading\nrectifier outputs. Rectifiers are typically checked for proper performance by measuring\nrectifier voltage and current output and comparing the values to previous performance\nmeasurements on that rectifier.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond\nwithin 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to\nfind facts as alleged in this Notice without further notice to you and to issue a Final Order.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the\ninadequacies (49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that\nyou submit your amended procedures to my office within 60 days of receipt of this Notice.\nThis period may be extended by written request for good cause. Once the inadequacies\nidentified herein have been addressed in your amended procedures, this enforcement action\nwill be closed.\n4\n\n\n\nIn correspondence concerning this matter, please refer to CPF 2-2010-6005M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n5\n\n220106005M_closure letter_12212010_text.pdf\n\nDecember 21, 2010\nMark Rauch\nPresident\nKey West Pipeline Company\nP.O. Box 270415\nHouston, Texas 77277-0415\nCPF 2-2010-6005M\nDear Mr. Rauch:\nOn August 5-6, 2010, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) inspected the Key West Pipeline Company procedural manual for\noperations, maintenance, and emergencies at your pipeline terminal in Key West, FL,\npursuant to Chapter 601 of 49 United States Code. As a result of the pipeline inspection,\nPHMSA issued a Notice of Amendment (NOA) on October 7, 2010.\nThis letter is to inform you that Key West Pipeline Company has complied with the terms of\nthe NOA. No further action is necessary with regards to the NOA and this case is now closed.\nPlease be advised that this letter refers only to the NOA (re: CPF 2-2010-6005M) and not to\nany other PHMSA pending cases. Also be advised that nothing herein states or implies that\nthe above described procedural manual meets the requirements of the federal pipeline safety\nregulations or that the procedural manual is approved. The Pipeline system and the\nprocedural manual remain subject to inspection by PHMSA.\nSincerely,\nWayne T. Lemoi\nDirector, PHMSA Southern Region\nOffice of Pipeline Safety","truncated":false,"body_characters":13031}