{"operation":"document","citation":"CPF 220146001W","title":"MCCAIN PIPELINE COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-01-13","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220146001w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220146001w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220146001w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220146001W","body":"Warning Letter involving MCCAIN PIPELINE COMPANY. PHMSA's enforcement data identifies the cited regulation as 195.402(a). The case was opened on 2014-01-13 and is reported as closed as of 2014-01-13. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220146001W_warning letter_01132014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220146001W/220146001W_warning%20letter_01132014.pdf\n\n220146001W_warning letter_01132014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220146001W/220146001W_warning%20letter_01132014_text.pdf\n\n220146001W_warning letter_01132014_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 13, 2014\nMr. Mark Rauch\nPresident\nPipeline & Terminal Management Corporation\n4635 Southwest Freeway, Suite 910\nHouston, TX 77277-0415\nCPF 2-2014-6001W\nDear Mr. Rauch:\nFrom March 7, 2013, to September 30, 2013, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Southern Region, Office of Pipeline Safety (OPS)\nconducted a failure investigation of the McCain Pipeline Company (McCain) 4-inch jet fuel\npipeline pursuant to Chapter 601 of 49 United States Code. OPS undertook the investigation\ndue to a leak discovered on the McCain pipeline on March 7, 2013, at the Naval Air Station\nMeridian, Mississippi (NAS Meridian).\nAs a result of our investigation, it appears that McCain has committed a probable violation of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected\nand the probable violation is as follows:\n1. §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.\n\n\n\nOn March 6, 2013, McCain failed to follow its written operations and maintenance\n(O&M) procedures contained in its manual titled, McCain Pipeline Company 4-inch Jet\nFuel Pipeline Standard Operating Procedures and Maintenance Manual, October 1, 2012\n(i.e. the McCain O&M manual).\nMcCain’s O&M manual, Section IV - Reporting Accidents and Safety Related Conditions\n(B)(2)(g)(ii), required McCain personnel to gauge its jet fuel delivery tank hourly and to\ncompare the readings with NAS Meridian’s hourly gauging of its receipt tank to verify the\ndelivery and receipt volumes. If the hourly tank gauging results between the McCain\ndelivery tank and the NAS Meridian receipt tank did not fall within an “acceptable level\nof tolerance,” the procedures required McCain personnel to undertake actions outlined in\nSection IV, which included stopping the pumping operation.\nAn email from McCain to the OPS Southern Region on August 14, 2013, stated that the\n“acceptable level of tolerance” was 100 barrels.\nOn March 6, 2013, at 4:00 pm Central Standard Time (CST), McCain’s personnel\nrecorded an hourly tank gauge difference between its delivery tank and NAS Meridian’s\nreceipt tank of 116 barrels. Yet, McCain continued to transfer jet fuel to NAS Meridian\nand did not shut down its pipeline, or execute other safety measures described in its\nwritten O&M procedures.\nUnder 49 United States Code, §60122, McCain Pipeline Company is subject to a civil penalty\nnot to exceed $200,000 per violation per day the violation persists up to a maximum of\n$2,000,000 for a related series of violations. For violations occurring prior to March 6, 2013,\nthe maximum penalty may not exceed $100,000 per violation per day, with a maximum\npenalty not to exceed $1,000,000 for a related series of violations. We have reviewed the\ncircumstances and supporting documents involved in this case, and have decided not to\nconduct additional enforcement action or penalty assessment proceedings at this time. We\nadvise you to correct the items identified in this letter. Failure to do so will result in McCain\nPipeline Company being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 2-2014-6001W. 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":5161}