{"operation":"document","citation":"CPF 220186005W","title":"TRANSMONTAIGNE OPERATING COMPANY L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-11-15","effective_on":null,"summary":"CLOSED warning letter citing 195.222(a), 195.228(b), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220186005w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220186005w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220186005w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220186005W","body":"Warning Letter involving TRANSMONTAIGNE OPERATING COMPANY L.P.. PHMSA's enforcement data identifies the cited regulations as 195.222(a),  195.228(b),  195.589(c). The case was opened on 2018-11-15 and is reported as closed as of 2018-11-15. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220186005W_Warning Letter_11152018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220186005W/220186005W_Warning%20Letter_11152018.pdf\n\n220186005W_Warning Letter_11152018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220186005W/220186005W_Warning%20Letter_11152018_text.pdf\n\n220186005W_Warning Letter_11152018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 15, 2018\nMr. Fred Boutin\nChief Executive Officer\nTransMontaigne Operating Company, L.P\n1670 Broadway Street, Suite 3100\nDenver, CO 80202\nCPF 2-2018-6005W\nDear Mr. Boutin:\nBetween August 6 and September 13, 2018, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) inspected TransMontaigne Operating Company,\nL.P. (TransMontaigne) procedures and records in its Collins, Mississippi and Roswell,\nGeorgia offices and its pipeline facilities in and around Collins, Mississippi, pursuant to\nChapter 601 of 49 United States Code.\nAs a result of the inspection, it is alleged that TransMontaigne has committed probable\nviolations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR).\nThe items inspected and the probable violations are:\n1. §195.228 Welds and welding inspection: Standards of acceptability\n(a) ....\n(b) The acceptability of a weld is determined according to the standards in\nsection 9 or Appendix A of API Std 1104 (incorporated by reference, see §195.3).\nAppendix A of API Std 1104 may not be used to accept cracks.\n\n\n\n2. 3. TransMontaigne failed to comply with the regulation because it did not determine the\nacceptability of welds according to the standards in section 9 or Appendix A of the\nincorporated by reference (IBR) edition of API Standard 1104.\nPHMSA’s review of weld inspection records showed that, on or about April 18, 2018, the\nacceptability of 15 welds was determined according to the 21st edition of API Standard\n1104. Per §195.3, the 20th edition of API Standard 1104 IBR at the time of the\ndeterminations.\nSubsequent to PHMSA’s inspection, TransMontaigne provided an analysis demonstrating\nthat all welds determined acceptable per the 21st edition of API Standard 1104 also met\nthe acceptability standards in the 20th edition.\n§195.222 Welders and welding operators: Qualification of welders and welding\noperators.\n(a) Each welder or welding operator must be qualified in accordance with\nsection 6, section 12, Appendix A or Appendix B of API Std 1104 (incorporated by\nreference, see §195.3), or section IX of the ASME Boiler and Pressure Vessel Code\n(ASME BPVC), (incorporated by reference, see §195.3) except that a welder or\nwelding operator qualified under an earlier edition than listed in §195.3, may weld\nbut may not requalify under that earlier edition.\nTransMontaigne failed to comply with the regulation because it did not qualify each\nwelder in accordance with section 6, section 12, Appendix A or Appendix B of\nAPI Standard 1104 (incorporated by reference, see §195.3).\nPHMSA’s review of TransMontaigne welder performance qualification (WPQ) records\nidentified two WPQs, performed on or about April 11, 2018, where destructive test\nresults were “per API 1104 Latest Approved Edition.” Per §195.3, the 20th edition of\nAPI Standard 1104 was IBR when the WPQ testing was performed. The two WPQ\nrecords did not provide sufficient detail to determine whether the welders were qualified\nunder the 20th edition of API Standard 1104.\n§195.589 What corrosion control information do I have to maintain.\n(a) ....\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by this\nsubpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that corrosion requiring control measures does not exist. You must\nretain these records for at least 5 years, except that records related to §§195.569,\n195.573(a) and (b), and 195.579(b)(3) and (c) must be retained for as long as the\npipeline remains in service.\nTransMontaigne failed to comply with the regulation because it did not maintain a record\nof each analysis, check, demonstration, examination, inspection, investigation, review,\nsurvey, and test required by this subpart in sufficient detail to demonstrate the adequacy of\ncorrosion control measures. Specifically, TransMontaigne did not maintain atmospheric\ncorrosion control monitoring records in sufficient detail to demonstrate that it had inspected\n2\n\n\n\neach onshore portion of its pipeline exposed to atmospheric corrosion at least once every\n3 calendar years not exceeding 39 months, as required by §195.583.\nDuring PHMSA’s review of atmospheric corrosion control monitoring records for calendar\nyears 2015 to 2018, PHMSA inspectors could not clearly identify the specific portions of\npipeline exposed to the atmosphere subject to each recorded inspection. TransMontaigne\nrevised its pipeline segment identifiers between 2015 and 2018. Consequently, neither\nPHMSA nor TransMontaigne personnel could correlate the two record sets to confirm that\nall facilities subject to atmospheric corrosion were inspected at the required intervals.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, TransMontaigne is subject to a civil penalty\nnot to exceed $209,002 per violation per day the violation persists, up to a maximum of\n$2,090,022 for a related series of violations. For violations occurring prior to\nNovember 2, 2015, the maximum penalty may not exceed $200,000 per violation per day,\nwith a maximum penalty not to exceed $2,000,000 for a related series of violations. We have\nreviewed the circumstances and supporting documents involved in this case, and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time.\nWe advise you to correct the items identified in this letter. Failure to do so will result in\nTransMontaigne 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 2-2018-6005W. 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,\nJames Urisko\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n3","truncated":false,"body_characters":7022}