{"operation":"document","citation":"CPF 220115010W","title":"DENBURY ONSHORE, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2011-12-08","effective_on":null,"summary":"CLOSED warning letter citing 195.452(l)(1)(ii), 195.588(b)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220115010w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220115010w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220115010w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220115010W","body":"Warning Letter involving DENBURY ONSHORE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.452(l)(1)(ii),  195.588(b)(3). The case was opened on 2011-12-08 and is reported as closed as of 2011-12-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220115010W_Operator response_01092012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220115010W/220115010W_Operator%20response_01092012.pdf\n\n220115010W_warning letter_12082011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220115010W/220115010W_warning%20letter_12082011.pdf\n\n220115010W_warning letter_12082011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220115010W/220115010W_warning%20letter_12082011_text.pdf\n\n220115010W_warning letter_12082011_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 8, 2011\nMr. John Filiatrault\nVice President CO2 Supply and Pipelines\nDenbury Onshore, LLC\n5100 Tennyson Parkway, Suite 3000\nPlano, TX 75024\nCPF 2-2011-5010W\nDear Mr. Filiatrault:\nOn June 13-17, 2011, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected the\nDenbury Onshore, LLC (Denbury) Liquid Integrity Management Program (IMP) in Flowood,\nMississippi.\nAs a result of the inspection, it appears that Denbury has committed probable violations of the\nPipeline Safety Regulations, Title 49, and Code of Federal Regulations. The items inspected\nand the probable violations are:\n1. §195.452 Pipeline integrity management in high consequence areas.\n… (l) What records must be kept?\n(1) An operator must maintain for review during an inspection:\n... (ii) Documents to support the decisions and analyses, including any modifications,\njustifications, variances, deviations and determinations made, and actions taken, to\nimplement management program listed in paragraph (f) of this section.\nDenbury’s IMP was incorrect because it identifies two distinct and different items as\n“Appendix F” of the IMP; Air Dispersion Modeling and the Direct Assessment &\nCorrosion Control Plan (DACCP). It cannot be both.\n2. §195.588 What standards apply to direct assessments?\n… (b) The requirements for performing external corrosion direct assessment are as\nfollows:\n\n\n\n... (3) Indirect examination. In addition to the requirements in Section 4 of NACE\nSP0502 (incorporate by reference, see §195.3), the procedures for indirect\nexamination of the ECDA regions must include---\nDenbury’s IMP was incorrect because the DACCP, Revision 4.0 dated July 2009, Section\n5.1.2 Direct Examination, incorrectly states “This phase includes prioritization of\nindications discovered during the direct inspections.” Indications are prioritized for\nexcavation during the indirect inspection phase.\nNACE SP0502 Section 4.1.1 states: The objective of the Indirect Inspection Step is to\nidentify and define the severity of coating faults, other anomalies, and areas at which\ncorrosion activity may have occurred or may be occurring.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$100,000 for each violation for each day the violation persists up to a maximum of\n$1,000,000 for any related series of violations. We have reviewed the circumstances and\nsupporting 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\nthe items identified in this letter. Failure to do so will result in Denbury being subject to\nadditional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 2-2011-5010W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong 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\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n2","truncated":false,"body_characters":4371}