{"operation":"document","citation":"CPF 220196002W","title":"KINDER MORGAN LIQUID TERMINALS, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-12-19","effective_on":null,"summary":"CLOSED warning letter citing 195.412(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220196002w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220196002w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220196002w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220196002W","body":"Warning Letter involving KINDER MORGAN LIQUID TERMINALS, LLC. PHMSA's enforcement data identifies the cited regulation as 195.412(a). The case was opened on 2019-12-19 and is reported as closed as of 2019-12-19. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220196002W_Warning Letter_12192019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220196002W/220196002W_Warning%20Letter_12192019.pdf\n\n220196002W_Warning Letter_12192019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220196002W/220196002W_Warning%20Letter_12192019_text.pdf\n\n220196002W_Warning Letter_12192019_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 19, 2019\nMr. William P. Brown\nChief Operating Officer\nKinder Morgan Liquid Terminals\n1001 Louisiana Street, Suite 1001\nHouston, TX 77002\nRe: South Wilmington Pipeline\nCPF 2-2019-6002W\nDear Mr. Brown:\nOn August 7, 2017, through August 11, 2017, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected Kinder Morgan Liquid Terminals’ (KMLT) South Wilmington Pipeline in\nWilmington, North Carolina.\nAs a result of the inspection, it is alleged that KMLT has committed a probable violation of\nthe Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item\ninspected and the probable violation is:\n1. §195.412 Inspection of rights-of-way and crossings under navigable waters.\n(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each\ncalendar year, inspect the surface conditions on or adjacent to each pipeline right-of-\nway. Methods of inspection include walking, driving, flying or other appropriate\nmeans of traversing the right-of-way.\n1\n\n\n\nKMLT failed to comply with the regulation because it did not, at intervals not exceeding\n3 weeks, but at least 26 times each calendar year, inspect the surface conditions on or\nadjacent to each pipeline right-of-way (ROW).\nKMLT personnel conducted inspections of the South Wilmington Pipeline ROW by\ndriving, and documented each inspection on KMLT Form T-OM200-72, titled “Right of\nWay Inspection Report.” The referenced form required KMLT personnel to enter discrete\npipeline station numbers as reference points to indicate inspection locations along the\npipeline ROW.\nPHMSA’s review of the above-referenced reports for ROW inspections conducted in June\nand July of 2017 revealed that KMLT reported conditions upstream and downstream at 43\ndiscrete locations/station numbers on June 1, 2017. A total of 22 of the 43 locations were\nnot inspected again until June 26, 2017, exceeding the maximum inspection interval by 5\ndays. Furthermore, at the time of PHMSA’s August 2017 records review, there was no\ninspection record for 2 of the 43 referenced locations after June 1, 2017.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465\nfor a related series of violations. For violations occurring on or after November 27, 2018, and\nbefore July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day,\nwith a maximum penalty not to exceed $2,132,679. For violations occurring on or after\nNovember 2, 2015, and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For\nviolations occurring prior to November 2, 2015, the maximum penalty may not exceed\n$200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a\nrelated series of violations.\nWe have reviewed the circumstances and supporting documents involved in this case, and\nhave decided not to conduct additional enforcement action or penalty assessment proceedings\nat this time. We advise you to correct the item identified in this letter. Failure to do so will\nresult in Kinder Morgan Liquid Terminals 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 2-2019-6002W. 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\n2\n\n\n\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 A. Urisko\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n3","truncated":false,"body_characters":4827}