# MCCAIN PIPELINE COMPANY — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 220136004
- **title:** MCCAIN PIPELINE COMPANY — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2013-06-05
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.402(a), 195.404(a)(1), 195.406(a)(2), 195.406(b), 195.410(a).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-220136004
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/220136004
**body:**

Notice of Probable Violation involving MCCAIN PIPELINE COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.404(a)(1),  195.406(a)(2),  195.406(b),  195.410(a). The case was opened on 2013-06-05 and is reported as closed as of 2013-12-19. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

220136004_Final Order_12192013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220136004/220136004_Final%20Order_12192013.pdf

220136004_Final Order_12192013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220136004/220136004_Final%20Order_12192013_text.pdf

220136004_nopv_pco_06052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220136004/220136004_nopv_pco_06052013.pdf

220136004_nopv_pco_06052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220136004/220136004_nopv_pco_06052013_text.pdf

220136004_Operator Response_07312013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220136004/220136004_Operator%20Response_07312013.pdf

220136004_Final Order_12192013_text.pdf

DECEMBER 19, 2013
Mr. Mark Rauch
President
Pipeline & Terminal Management Corporation
4635 Southwest Freeway, Suite 910
Houston, TX 77277-0415
Re: CPF No. 2-2013-6004
Dear Mr. Rauch:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and finds that Pipeline & Terminal Management Corporation and its subsidiary,
McCain Pipeline Company, have completed the actions specified in the Notice to comply with
the pipeline safety regulations. Therefore, this case is now closed. Service of the Final Order by
certified mail is deemed effective upon the date of mailing, or as otherwise provided under
49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Wayne Lemoi, Director, Southern Region, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Pipeline & Terminal ) CPF No. 2-2013-6004
Management Corporation, )
)
Respondent. )
____________________________________)
FINAL ORDER
On January 23, 2013, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
conducted an on-site pipeline safety inspection of the facilities and records of McCain Pipeline
Company (MPC), a subsidiary of Pipeline & Terminal Management Corporation (PTMC or
Respondent) in Mississippi. The pipeline facilities consist of a four-inch-diameter petroleum
transfer line running from the MPC Bulk Storage and Transfer facility in Lauderdale,
Mississippi, for a distance of approximately 5.5 miles to the Meridian Naval Air Station near
Meridian, Mississippi.
1
As a result of the inspection, the Director, Southern Region, OPS (Director), issued to
Respondent, by letter dated June 5, 2013, a Notice of Probable Violation and Proposed
Compliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In
accordance with 49 C.F.R. § 190.207, the Notice proposed finding that PTMC’s subsidiary had
committed various violations of 49 C.F.R. Part 195 and proposed ordering Respondent to take
certain measures to correct the alleged violations. The warning items required no further action,
but warned the operator to correct the probable violation or face possible enforcement action.
PTMC responded to the Notice on behalf of MPC by letter dated July 31, 2013 (Response). The
company did not contest the allegations of violation but provided information concerning the
corrective actions it had taken. Respondent did not request a hearing and therefore has waived
its right to one.
1 Pipeline Safety Violation Report (Violation Report), (June 5, 2013) (on file with PHMSA), at 1.



2
FINDINGS OF VIOLATION
In its Response, PTMC did not contest the allegations in the Notice that MPC violated 49 C.F.R.
Part 195, as follows:
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.406(a)(2), which states:
§ 195.406 Maximum operating pressure.
(a) Except for surge pressures and other variations from normal
operations, no operator may operate a pipeline at a pressure that exceeds
any of the following:
(1) The internal design pressure of the pipe determined in accordance
with §195.106. However, for steel pipe in pipelines being converted under
§195.5, if one or more factors of the design formula (§195.106) are
unknown, one of the following pressures is to be used as design pressure:
(i) Eighty percent of the first test pressure that produces yield under
section N5.0 of appendix N of ASME B31.8, reduced by the appropriate
factors in §§195.106 (a) and (e); or
(ii) If the pipe is 12 3⁄4 inch (324 mm) or less outside diameter and is
not tested to yield under this paragraph, 200 p.s.i. (1379 kPa) gage.
(2) The design pressure of any other component of the pipeline.
The Notice alleged that Respondent violated 49 C.F.R. § 195.406(a)(2) by operating its pipeline
at a pressure that exceeded the design pressure of a pipeline component. Specifically, the Notice
alleged that MPC established a maximum operating pressure (MOP) of 225 psig for the pipeline,
but the system included two filters that were only rated for 150 psig.
Respondent did not contest the allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.406(a)(2) by operating its
pipeline at a pressure that exceeded the design pressure of a pipeline component.
Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.406(b), which states:
§ 195.406 Maximum operating pressure.
(a) . . .
(b) No operator may permit the pressure in a pipeline during surges or
other variations from normal operations to exceed 110 percent of the
operating pressure limit established under paragraph (a) of this section.
Each operator must provide adequate controls and protective equipment to
control the pressure within this limit.
The Notice alleged that Respondent violated 49 C.F.R. § 195.406(b) by failing to provide
adequate controls to control pressure within the pipeline’s maximum operating pressure limit.
Specifically, the Notice alleged that MPC did not install an over-pressure protection device
downstream of the custody transfer from Plantation Pipeline or otherwise ensure overpressure
protection for the MPC piping.



3
Respondent did not contest the allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.406(b) by failing to provide
adequate controls to control pressure within the pipeline’s maximum operating pressure limit.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 3 and 4 in the Notice for
violations of 49 C.F.R. § 195.406(a) and (b), respectively. Under 49 U.S.C. § 60118(a), each
person who engages in the transportation of hazardous liquids or who owns or operates a
pipeline facility is required to comply with the applicable safety standards established under
chapter 601. The Director indicates that Respondent has taken the following actions specified in
the proposed compliance order:
1. With respect to the violation of § 195.406(a) (Item 3), Respondent has revised its
MOP for the piping receiving fuel from Plantation Pipeline to 150 psig, which does
not exceed the design pressure of any pipeline component.
2. With respect to the violation of § 195.406(b) (Item 4), Respondent has developed
and implemented a plan to monitor product receipt pressures from Plantation Pipeline
and provide for shut-down and remedial action if the pressures should ever exceed
125 psig.
Accordingly, I find that compliance has been achieved with respect to these violations.
Therefore, the compliance terms proposed in the Notice are not included in this Order.
WARNING ITEMS
With respect to Items 1, 2, 5, and 6, the Notice alleged probable violations of Part 195 but did
not propose a civil penalty or compliance order for these items. Therefore, these are considered
to be warning items. The warnings were for:
49 C.F.R. § 195.410(a) (Item 1) ─ Respondent’s alleged failure to place and
maintain a sufficient number of line markers along the pipeline so that its location
was accurately known;
49 C.F.R. § 195.402(a) (Item 2) ─ Respondent’s alleged failure to have written
procedures for identifying, maintaining, and operating the tank at the MPC Bulk
Storage Facility as a regulated breakout tank;



4
49 C.F.R. § 195.406(b) (Item 5) ─ Respondent’s alleged failure to set the high-
pressure Mercoid switch downstream of the booster pumps to ensure that
pressures could not exceed 110% of MOP during a surge; and
49 C.F.R. § 195.404(a)(1) (Item 6) ─ Respondent’s alleged failure to maintain
current maps and records identifying all portions of its pipeline facilities subject
to the Part 195 regulations.
PTMC presented information in its Response showing that MPC had taken certain actions to
address these cited items. If OPS finds a violation of any of these items in a subsequent
inspection, Respondent may be subject to future enforcement action.
The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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