PHILLIPS 66 PIPELINE LLC — Notice of Amendment

party submissionOfficial PDF320075015M_Operator Response_04252007.pdf#

320075015M_Notice Of Amendment_03162007.pdf, page 1Official PDF@ U.S. Deportment of Tronsporlotion Plpellne ond Hozordous motoriqls Sofefy Admlnl3frollon 901 Locusl Street, Suite 462 Kansas City, MO 64106-2641 }J|AR 2 3 ?007 NOTICE OF AMENDMENT CERTIX'IED MAIL - RETURN RDCEIPT REOUESTED March16,2007 Ms. Margaret Yaege General Manager of Pipelines and Terminals ConocoPhillips Pipe Line Company 600 N. Dairy Ashford Houston, TX 74079 cPx'3-2007-5015M Dear Ms. Yaege: On October 16-20, October 30 - November 3, November 13-17 and December 71-15,2006,a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected yoru pipeline facilities in Illinois, Kansas, Missouri, and Indiana. On the basis of the inspection, PHMSA has identified the apparent inadequacies found within ConocoPhillips Pipe Line Company's plans or procedures and are described below: 1. 5195.402 Procedural Manual for Operations, Maintenance and Emergencies. $195.a02(a) requires that each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. $195.a02(c) indicates that the manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations:#

320075015M_Notice Of Amendment_03162007.pdf, page 2(3) Operating, maintaining, and repairing the pipeline system in accordance with each of the requirements of this subpart and subpart H of this part. Review of the Operation and Maintenance (O&M) manual found that the fpllowing requirements were not adequately covered in the manual or needed to be expanded to provide additional guidance to your personnel. Item (a) is required to be included in the manual by $ les.a02(c)(3). 1.(a) $195.505Qualificationprogram. Each operator shall have and follow a written qualification program. The program shall include provisions to: (") Identify covered tasks; (b) Ensure through evaluation that individuals performing covered tasks are qualified; The Operator Qualification Program's evaluation forms did not provide sufficient information to evaluate an individual's performance of a covered task to ensure they were qualified. ConocoPhillips' evaluation checklist form for "Field Inspection and Testing of Overfill Protective Devices On Aboveground Breakout Tanks/Vessels" did not adequately address appropriate actions to be taken for the different overfrll mechanisms used. Response to this Notice This Notice is provided pursuant to 49 U.S.C. $ 60108(a) and 49 C.F.R. $ 190.237. Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. Be advised that all material you submit in response to this enforcement action is subject to being made publicly available. If you believe that any portion of your responsive material qualihes for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy bf the document with the portions you believe qualiS for confidential treatment redacted and an explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). lf you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. If, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. $ 190.237). If you are not contesting this Notice, we propose that you submit your#

320075015M_Notice Of Amendment_03162007.pdf, page 3amended procedures to my office within 30 days of receipt of this Notice. This period may be extended by witten request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. In correspondence conceming this matter, please refer to CPn.3-2007-5015M and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, q.** 1/r/,,ffi'- Ivan A. Huntoon Director, Central Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings#

320075015M_Notice Of Amendment_03162007.pdf, page 4Response Options for Pipeline Operators in Compliance Proceedings The requirements of 49 C.F.R. Part 190, Subpart B ($$ 190.201-190.237) govem response to Notices issued by a Regional Director, Pipeline and Hazardous Materials Safety Administration (PHMSA). Be advised that all material submitted by a respondent in response to an enforcement action is subject to being made publicly available. Ifyou believe that any portion ofyour responsive material qualifies for confidential treatment under 5 U,S,C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an explanation ofwhy you believe the redacted information qualifies for confidential treatrnent under 5 U.S.C. 552(b). Procedures for Resnondins to a NOTICD OF PROBABLE VIOLATION: Within 30 days of receip of a Notice of Probable Violation, the respondent shall respond to the Regional Director who issued the Notice in the following way: a. When the Notice cgntains a proposed CIVIL PENALTY*:: l. Pay the proposed civil penalty and advise the Regional Director of the payment. This authorizes PHMSA to make findings and to close the case with prejudice to the respondent. Payment terms are outlined below; 2. Submit written explanations, information, or other materials in response to the allegations and/or seek elimination or mitigation of the proposed civil penalty. Refer to 49 C.F.R. $ 190.225 for assessment considerations, which include the respondent's ability to pay and the effsct on the respondent's ability to stay in business, upon which civil penalties are based; or 3. Request a hearing as described below to contest the allegations and/or proposed assessment ofa civil penalty. b. When the Notice contains a proposed COMPLIANCE ORDER* - 1. Notiff the Regional Director that you intend to take the steps in the proposed compliance order; Submit written explanations, information, or other materials in answer to the allegations in the Notice and object to or seek clarification of the proposed compliance order items in whole or in part; or J . Request a hearing as described below to contest the allegations and/or proposed compliance order items; I of5#

320075015M_Notice Of Amendment_03162007.pdf, page 5II. m, c. When the Notice contains a WARNING ITEM - No written rcsponse is required. The respondent is wamed that if it does not take appropriate action to correct these items, enforcement action will be taken ifa subsequent inspection reveals a violation. * Failure of the respondent to respond to the Notice within 30 days of receipt constitutes a waiver of the right to contest the allegations in the Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in the Notice without further notice to the respondent and to issue a Final Order. Procedures for Resnondine to a NOTICE OF'AMENDMENT*-- Within 30 days of receipt of a Notice of Amendment, the respondent shall respond to the Regional Director who issued the Notice in the following way: a. Notifu the Regional Director of your plans to address the inadequacies identified in the Notice: b. Submit written explanations, information, or other materials in answer to the allegations in the Notice and/or object to or seek clarification ofthe proposed amendment items in whole or in part; or Request a hearing as described below to contest the allegations in the Notice. * Failure of the respondent to respond to the Notice within 30 days of receipt constitutes a waiver of the right to contest the allegations in the Notice and authorizes the Associate Adminishator for Pipeline Safety to find facts as alleged in the Notice without fi.rther notice to the respondent and to issue a Final Order. Procedure for Requesting a Hearins A request for a hearing must be in writing and accompanied by a statement of the issues that the respondent intends to raise at the hearing. The issues rnay relate to the allegations, new information, or to the proposed compliance order or proposed civil penalty amoult. Refer to 49 C.F.R. $ 190.225 for assessment considerations upon which civil penalties are based. A respondent's failure to specify an issue may result in waiver ofthe right to raise that issue at the hearing. The respondent's request must also indicate whether or not respondent will be represented by counsel at the hearing. Failure to request a hearing in writing within 30 days of receipt of a Notice waives the right to a hearing, In addition, if the amount of the proposed civil penalty or the proposed corrective action is less than $10,000, the hearing will be held by telephone, unless the respondent submits a written request for an in-person hearing. Complete hearing procedures can be found at 49 C.F.R. $ 190.211. 2 of5#

320075015M_Notice Of Amendment_03162007.pdf, page 6IV. V. vI. Extensions of Time An extension of time to preparc an appropriate response to a Notice may be granted, at the agency's discretion, following submittal of a written request to the Regional Director. The request must indicate the amount of time needed and the reasons for the extension. The request must be submitted within 30 days of receipt of the Notice.' Freedom of Information Act Any material prepared by PHMSA, including the violation report, the Notice, and any order issued in this case, and any material provided to PHMSA by the respondent, may be considered public information and subject to disclosure under the Freedom of Information Act (FOIA). If the information you provide is security sensitive, privileged, confidential or may cause your company competitive disadvantages, please cleady identify the material and provide justification why the documents, or portions of a document, should not be released under FOIA. If we receive a request for your material, we will noti$' you if PHMSA, after reviewing the materials and your provided justificatioq determines that withholding the materials does not meet any exemption provided under the FOIA. You may appeal the agency's decision to release material under the FOIA at that time. Your appeal will stay the release of those materials until a final decision is made. Small Business Resulatorv Enforcement Fairness Act Information The Small Business and Agricultural Regulatory Enforcement Ombudsman and 10 Regional Faimess Boards were established to receive comments from small businesses about federal agency enforcement actions. The Ombudsman will annually evaluate the enforcement activities and rate eaoh agency's responsiveness to small business. If you wish to comment on the enforcement actions of the Pipeline and Hazardous Materials Safety Administration, call 1-888-REG-FAIR (l-888-734-3247) or go to h@ :/iwww. sba, gov/ombudsman/dsp_faq.html. 3 of 5#

320075015M_Notice Of Amendment_03162007.pdf, page 7vII. PAYMENT INSTRUCTIONS Civil Penalty Payments of Less Than $10,000 Palirnent of a civil penalty of less than $ 10,000 proposed or assessed, under Subpart B ofPart 190 of the Pipeline Safety Regulations can be made by certified check, money order or wire transfer. Payment by certified check or money order (containing the CPF Number for this case) should be made payable to the "Deparhnent of Transportation" and should be sent to: Federal Aviation Administration Mike Monroney Aeronautical Center Financial Operations Division (AMZ-300) P.O. Box 25082 Oklahoma City, OK 7 3 125 -4915 Wire transfer payments of less than $10,000 may be made through the Federal Reserve Communications System (Fedwire) to the account of the U.S. Treasury. Detailed instructions are provided below. Quesfions concerning wire transfer should be directed to the Financial Operations Division at (405) 954-8893, or at the above address. Civil Penalty Payments of $10,000 or more Payment ofa civil penalty of$10,000 or more proposed or assessed under Subpart B ofPart 190 of the Pipeline Safety Regulations must be made wire transfer (49 C.F.R. $ 89.21 (bX3), through the Federal Reserve Communications System (Fedwire) to the account of the U.S. Treasury. Detailed instructions are provided below. Questions conceming wire transfers should be directed to the Financial Operations Division at (405) 954-8893, or at the above address. INSTRUCTIONS FOR ELECTRONIC FTJND TRA}ISFERS (I) RECEIVER ABA NO. 02r030004 (2) TYPE/SUB-TYPE (Provided by sending bank) (3) SENpTNGBANKABANO. (Provided by sending bank) (4) SENpTNGBANKREFNO. (Provided by sending bank) (s) AMOUNT (6) SENDING BANKNAME (Provided by sending bank) (7) RECEIVERNAME TREASNYC (8) PROpUCT COpE (Normally CTR, or as provided by sending bank) (9) BENEFICIAL (BNN : AGENCY LOCATION CODE BNF =/ALC-69-14-0001 (10) REASONS FOR PAYMENT Example: PHMSA - CPF # / Ticket Number/Pipeline Assessment number 4 of 5#

320075015M_Notice Of Amendment_03162007.pdf, page 8INSTRUCTIONS: You, as sender of the wire transfer, must provide the sending bank with the information for blocks (1), (5), (7), (9), and (10). The information provided in Blocks (1), (7), and (9) are constant and remain the same for all wire transfers to the Pipeline and Hazardous Materials Safety Administration, Department of Transportation. Block#l - RECEIVER ABA NO. - "021030004". Ensure the sending bank enters this 9-digit identification number; it represents the routing symbol for the U.S. Treasury at the Federal Reserve Bank inNew York. Block #5 - AMOUNT - You as the sender provide the amount of the transfer. Please be sure the transf€r amount is punctuated with commas and a decimal point. EXAMPLE: $10.000.00 Block #7 - RECEIVERNAME - "TREAS NYC". Ensure the sending bank enters this abbreviation. It must be used for all wire transfers to the Treasury Department. Block#9 - BENEFICI.A.L - AGENCY LOCATION CODE - I'BNF=/ALC-69-14-0001". Ensure the sending bank enters this information. This is the Agency Location Code for the Pipeline and Hazardous Materials Safety Administration, Deparbnent of Transportation. Block #10 - REASON FOR PAYMENT - 6'AC-payment for PHMSA Case # / To ensure your wire transfer is credited properly, enter the case number/ticket number or Pipeline Assessment number, and country." NOTE: A wire transfer must comply with the format and instructions or the Department cannot accept the wire transfer. You as the sender can assist this process by notifying the Financial Operations Division (405) 954-8893 at the time you send the wire transfer. February 2007 5 of5#