# ROSE ROCK MIDSTREAM OPERATING, LLC — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.583.
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- **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.

Official case documents:

320075001_FinalOrder_11052009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_FinalOrder_11052009.pdf

320075001_FinalOrder_11052009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_FinalOrder_11052009_text.pdf

320075001_operator response to notice_02202007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_operator%20response%20to%20notice_02202007.pdf

320075001_operator response to notice_08272007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/320075001_operator%20response%20to%20notice_08272007.pdf

cpf3-2007-5001nopv pcp_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075001/cpf3-2007-5001nopv%20pcp_text.pdf

320075001_FinalOrder_11052009_text.pdf

NOV 5 2009
Mr. Pete Schwiering
President
SEM Crude, L.P.
11501 South Interstate 44 Service Road
Oklahoma City, OK 73173
Re: CPF No. 3-2007-5001
Dear Mr. Schwiering:
Enclosed is the Final Order issued in the above-referenced case. It makes a finding of violation
and finds that SEM Crude, L.P. has completed the actions specified in the Notice required to
comply with the pipeline safety regulations. This case is now closed. Your receipt of the Final
Order constitutes service of that document 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: Ivan A. Huntoon, Director, Central Region
CERTIFIED MAIL – RETURN RECEIPT REQUESTED [7005 0390 0005 6162 5081]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
______________________________
)
In the Matter of )
)
SEM Crude, L.P., ) CPF No. 3-2007-5001
)
Respondent. )
_____________________________ )
FINAL ORDER
Between May 1-4 and 8-12, 2006, 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 SEM Crude, L.P.
(SEM Crude or Respondent) in its Kansas and Oklahoma operating areas. SEM Crude, L.P. has
access to 2,400 miles of liquid pipelines in Oklahoma and Kansas pursuant to a throughput
agreement with SEMGroup Energy Partners, L.P. Both entities are subsidiaries of SEMGroup,
1
L.P.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to SEM Crude,
by letter dated January 22, 2007, a Notice of Probable Violation and Proposed Compliance Order
(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that SEM Crude
had violated 49 C.F.R§ 195.583 and ordering Respondent to take certain measures to correct the
alleged violation.
SEM Crude responded to the Notice by letters dated February 20, 2007 and August 27, 2007
(collectively, Response). Respondent did not contest the allegations of violation but instead
described corrective actions it planned to implement. SEM Crude did not request a hearing and
therefore has waived its right to one.
1 On July 22, 2008, SEMGroup, L.P., and certain of its direct and indirect subsidiaries and affiliates, filed voluntary
petitions in federal court seeking protection under Chapter 11 of the United States Bankruptcy Code. See In re SEM
Crude, L.P., et al, Case No. 08-11525, U.S. Bankruptcy Court, District of Delaware. Notwithstanding those filings,
the issuance of this Final Order is permitted under 11 U.S.C. § 362(b)(4) (2006) (“The filing of a petition [in
bankruptcy] . . . does not operate as a stay . . . of the commencement or continuation of an action or proceeding by a
governmental unit . . . to enforce such governmental unit's or organization's police and regulatory power, including
the enforcement of a judgment other than a money judgment, obtained in an action or proceeding by the
governmental unit to enforce such governmental unit's or organization's police or regulatory power…”).



2
FINDING OF VIOLATION
Item 1: The Notice alleged that SEM Crude violated 49 C.F.R. § 195.583, which states:
§ 195.583 What must I do to monitor atmospheric corrosion control?
(a) You must inspect each pipeline or portion of pipeline that is exposed to
the atmosphere for evidence of atmospheric corrosion, as follows:
If the pipeline is located: Then the frequency of
inspection is:
Onshore…………………………………
Offshore…………………………………
At least once every 3 calendar
years, but with intervals not
exceeding 39 months.
At least once each calendar
year, but with intervals not
exceeding 15 months.
(b) During inspections you must give particular attention to pipe at soil-to-air
interfaces, under thermal insulation, under disbonded coatings, at pipe supports, in
splash zones, at deck penetrations, and in spans over water.
(c) If you find atmospheric corrosion during an inspection, you must provide
protection against the corrosion as required by § 195.581.
The Notice alleged that SEM Crude had failed to inspect each portion of the pipeline that was
exposed to the atmosphere for atmospheric corrosion since acquiring that line in 2002.
Specifically, the Notice alleged that Respondent had failed to inspect 28 mainline block valve
settings, including five above-ground valve settings at Mile Posts (MP) -3.5, -0.5, 40.5, 55, and
79 and 23 below-grade block valves located at MP 3, 3.3, 6, 10, 16, 20, 25, 26, 30, 35, 40, 45,
50, 51, 51.6, 65.5, 70, 75, 79, 81, 86, 91, and 91.3.
In its Response, SEM Crude acknowledged its failure to conduct comprehensive atmospheric
corrosion inspections of the valves at each of the specified locations. Accordingly, I find that
Respondent violated 49 C.F.R. § 195.583 by failing to inspect each portion of its pipeline that
was exposed to the atmosphere for evidence of atmospheric corrosion within the required
intervals.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 1 in the Notice for violating 49
C.F.R. § 195.583. 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



3
applicable safety standards established under chapter 601. The Director has indicated that SEM
Crude has taken the following actions in response to the Proposed Compliance Order:
1. Respondent evaluated the valve spacing and removed eight of the untested valves at MP
16, 25, 35, 45, 75, 79, 86, 91.
2. Respondent replaced the valve at MP 3.
3. Respondent inspected, cleaned, and recoated the valve at MP 3.3.
4. Respondent inspected, cleaned, recoated, and buried the remaining valves at MP 6, 10,
20, 26, 30, 40, 50, 51.4, 51.6, 65.5, 70, 81, 91.3.
5. Respondent provided the Director with the total cost of removing, recoating, and burying
the valves.
Since Respondent has provided documentation to OPS demonstrating completion of these
actions and compliance has been achieved with respect to this violation, it is unnecessary to
include the compliance terms in this Order. This case is now closed.
The terms and conditions of this Final Order shall be effective upon receipt.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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