{"operation":"document","citation":"CPF 320075001","title":"ROSE ROCK MIDSTREAM OPERATING, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2007-01-22","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.583.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320075001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320075001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320075001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320075001","body":"Notice of Probable Violation involving ROSE ROCK MIDSTREAM OPERATING, LLC. PHMSA's enforcement data identifies the cited regulation as 195.583. The case was opened on 2007-01-22 and is reported as closed as of 2009-11-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320075001_FinalOrder_11052009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_FinalOrder_11052009.pdf\n\n320075001_FinalOrder_11052009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_FinalOrder_11052009_text.pdf\n\n320075001_operator response to notice_02202007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_operator%20response%20to%20notice_02202007.pdf\n\n320075001_operator response to notice_08272007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_operator%20response%20to%20notice_08272007.pdf\n\ncpf3-2007-5001nopv pcp_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/cpf3-2007-5001nopv%20pcp_text.pdf\n\n320075001_FinalOrder_11052009_text.pdf\n\nNOV 5 2009\nMr. Pete Schwiering\nPresident\nSEM Crude, L.P.\n11501 South Interstate 44 Service Road\nOklahoma City, OK 73173\nRe: CPF No. 3-2007-5001\nDear Mr. Schwiering:\nEnclosed is the Final Order issued in the above-referenced case. It makes a finding of violation\nand finds that SEM Crude, L.P. has completed the actions specified in the Notice required to\ncomply with the pipeline safety regulations. This case is now closed. Your receipt of the Final\nOrder constitutes service of that document under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Ivan A. Huntoon, Director, Central Region\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED [7005 0390 0005 6162 5081]\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n______________________________\n)\nIn the Matter of )\n)\nSEM Crude, L.P., ) CPF No. 3-2007-5001\n)\nRespondent. )\n_____________________________ )\nFINAL ORDER\nBetween May 1-4 and 8-12, 2006, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of SEM Crude, L.P.\n(SEM Crude or Respondent) in its Kansas and Oklahoma operating areas. SEM Crude, L.P. has\naccess to 2,400 miles of liquid pipelines in Oklahoma and Kansas pursuant to a throughput\nagreement with SEMGroup Energy Partners, L.P. Both entities are subsidiaries of SEMGroup,\n1\nL.P.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to SEM Crude,\nby letter dated January 22, 2007, a Notice of Probable Violation and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that SEM Crude\nhad violated 49 C.F.R§ 195.583 and ordering Respondent to take certain measures to correct the\nalleged violation.\nSEM Crude responded to the Notice by letters dated February 20, 2007 and August 27, 2007\n(collectively, Response). Respondent did not contest the allegations of violation but instead\ndescribed corrective actions it planned to implement. SEM Crude did not request a hearing and\ntherefore has waived its right to one.\n1 On July 22, 2008, SEMGroup, L.P., and certain of its direct and indirect subsidiaries and affiliates, filed voluntary\npetitions in federal court seeking protection under Chapter 11 of the United States Bankruptcy Code. See In re SEM\nCrude, L.P., et al, Case No. 08-11525, U.S. Bankruptcy Court, District of Delaware. Notwithstanding those filings,\nthe issuance of this Final Order is permitted under 11 U.S.C. § 362(b)(4) (2006) (“The filing of a petition [in\nbankruptcy] . . . does not operate as a stay . . . of the commencement or continuation of an action or proceeding by a\ngovernmental unit . . . to enforce such governmental unit's or organization's police and regulatory power, including\nthe enforcement of a judgment other than a money judgment, obtained in an action or proceeding by the\ngovernmental unit to enforce such governmental unit's or organization's police or regulatory power…”).\n\n\n\n2\nFINDING OF VIOLATION\nItem 1: The Notice alleged that SEM Crude violated 49 C.F.R. § 195.583, which states:\n§ 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to\nthe atmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is located: Then the frequency of\ninspection is:\nOnshore…………………………………\nOffshore…………………………………\nAt least once every 3 calendar\nyears, but with intervals not\nexceeding 39 months.\nAt least once each calendar\nyear, but with intervals not\nexceeding 15 months.\n(b) During inspections you must give particular attention to pipe at soil-to-air\ninterfaces, under thermal insulation, under disbonded coatings, at pipe supports, in\nsplash zones, at deck penetrations, and in spans over water.\n(c) If you find atmospheric corrosion during an inspection, you must provide\nprotection against the corrosion as required by § 195.581.\nThe Notice alleged that SEM Crude had failed to inspect each portion of the pipeline that was\nexposed to the atmosphere for atmospheric corrosion since acquiring that line in 2002.\nSpecifically, the Notice alleged that Respondent had failed to inspect 28 mainline block valve\nsettings, including five above-ground valve settings at Mile Posts (MP) -3.5, -0.5, 40.5, 55, and\n79 and 23 below-grade block valves located at MP 3, 3.3, 6, 10, 16, 20, 25, 26, 30, 35, 40, 45,\n50, 51, 51.6, 65.5, 70, 75, 79, 81, 86, 91, and 91.3.\nIn its Response, SEM Crude acknowledged its failure to conduct comprehensive atmospheric\ncorrosion inspections of the valves at each of the specified locations. Accordingly, I find that\nRespondent violated 49 C.F.R. § 195.583 by failing to inspect each portion of its pipeline that\nwas exposed to the atmosphere for evidence of atmospheric corrosion within the required\nintervals.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violating 49\nC.F.R. § 195.583. Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof hazardous liquids or who owns or operates a pipeline facility is required to comply with the\n\n\n\n3\napplicable safety standards established under chapter 601. The Director has indicated that SEM\nCrude has taken the following actions in response to the Proposed Compliance Order:\n1. Respondent evaluated the valve spacing and removed eight of the untested valves at MP\n16, 25, 35, 45, 75, 79, 86, 91.\n2. Respondent replaced the valve at MP 3.\n3. Respondent inspected, cleaned, and recoated the valve at MP 3.3.\n4. Respondent inspected, cleaned, recoated, and buried the remaining valves at MP 6, 10,\n20, 26, 30, 40, 50, 51.4, 51.6, 65.5, 70, 81, 91.3.\n5. Respondent provided the Director with the total cost of removing, recoating, and burying\nthe valves.\nSince Respondent has provided documentation to OPS demonstrating completion of these\nactions and compliance has been achieved with respect to this violation, it is unnecessary to\ninclude the compliance terms in this Order. This case is now closed.\nThe terms and conditions of this Final Order shall be effective upon receipt.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":7752}