{"operation":"document","citation":"CPF 320135013","title":"MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-04-05","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.406(b), 195.55(a)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320135013.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320135013.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320135013","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320135013","body":"Notice of Probable Violation involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.406(b),  195.55(a)(4). The case was opened on 2013-04-05 and is reported as closed as of 2014-06-13. Proposed civil penalty: $99,000. Assessed civil penalty: $99,000. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320135013_Final Order_06022014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135013/320135013_Final%20Order_06022014.pdf\n\n320135013_Final Order_06022014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135013/320135013_Final%20Order_06022014_text.pdf\n\n320135013_NOPV PCP_04052013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135013/320135013_NOPV%20PCP_04052013.pdf\n\n320135013_NOPV PCP_04052013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135013/320135013_NOPV%20PCP_04052013_text.pdf\n\n320135013_Operator_Response_and_Request_for_Hearing_05062013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135013/320135013_Operator_Response_and_Request_for_Hearing_05062013.pdf\n\n320135013_Final Order_06022014_text.pdf\n\nJUNE 2, 2014\nMr. Michael N. Mears\nPresident and Chief Executive Officer\nMagellan Midstream Partners, LP\nOne Williams Center\nTulsa, OK 74121\nRe: CPF No. 3-2013-5013\nDear Mr. Mears:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and assesses a civil penalty of $99,000. The penalty payment terms are set forth in the\nFinal Order. This enforcement action closes automatically upon receipt of payment. Service of\nthe Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise\nprovided 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: Ms. Linda Daugherty, Director, Central Region, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nMagellan Midstream Partners, LP, ) CPF No. 3-2013-5013\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom May 31, 2011, to June 2, 2011, pursuant to 49 U.S.C. § 60117, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site pipeline safety inspection of the facilities and records of Magellan\nMidstream Partners, LP (Magellan or Respondent), in Kansas City, Kansas.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated April 5, 2013, a Notice of Probable Violation and Proposed Civil Penalty\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Magellan\nhad violated 49 C.F.R. §§ 195.55 and 195.406, and assessing a civil penalty of $99,000 for the\nalleged violations.\nRespondent initially responded to the Notice by letter dated May 6, 2013 (Response), requesting\na hearing. Magellan contested one of the allegations and sought mitigation of the proposed\npenalty. By subsequent email dated January 27, 2014, Magellan withdrew its request for a\nhearing and indicated that it no longer wished to contest the Notice, thereby authorizing entry of\nthis Final Order without further notice, in accordance with 49 C.F.R. § 190.208.\nFINDINGS OF VIOLATION\nMagellan did not contest the allegations in the Notice that it violated 49 C.F.R. Part 195, as\nfollows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.406(b), which states:\n§ 195.406 Maximum operating pressure.\n(a) . . .\n(b) No operator may permit the pressure in a pipeline during surges or\nother variations from normal operations to exceed 110 percent of the\n\n\n\n2\noperating pressure limit established under paragraph (a) of this section.\nEach operator must provide adequate controls and protective equipment to\ncontrol the pressure within this limit.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.406(b) by failing to provide\nadequate controls and protective equipment to keep the pressure in its pipeline from exceeding\n110 percent of the established operating pressure limit during surges or other variations from\nnormal operations. Specifically, the Notice alleged that Magellan allowed its pipeline to exceed\n110 percent of the maximum operating pressure, as evidenced by 16 overpressure alarms as\nfollows:\nDate Location\n10/24/2011 Bettendorf, IA\n5/24/2011 Carthage, MO\n4/17/2011 El Dorado, KS West Terminal\n4/14/2011 El Dorado, KS West Terminal\n4/8/2011 El Dorado, KS West Terminal\n2/10/2011 Wichita, KS\n1/20/2011 El Dorado, KS North Terminal\n9/21/2009 Girard, KS\n9/20/2009 Bateman, WI\n8/18/2009 McCool, NE\n8/13/2009 Eureka, KS\n4/6/2009 Boyer, KS\n11/4/2008 El Dorado, KS West Terminal\n6/12/2008 Omaha, NE\n5/23/2008 Bettendorf, IA\n5/1/2008 Des Moines, IA.\nRespondent did not contest these allegations of violation. Accordingly, based upon a review of\nall of the evidence, I find that Respondent violated 49 C.F.R. § 195.406(b) by failing to provide\nadequate controls and protective equipment to keep the pressure in its pipelines from exceeding\n110 percent of the established operating pressure limit during surges or other variations from\nnormal operations.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.55(a)(4), which states:\n§ 195.55 Reporting safety-related conditions.\n(a) Except as provided in paragraph (b) of this section, each operator\nshall report in accordance with §195.56 the existence of any of the\nfollowing safety-related conditions involving pipelines in service:\n(1) . . .\n(4) Any malfunction or operating error that causes the pressure of a\npipeline to rise above 110 percent of its maximum operating pressure.\n\n\n\n3\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.55(a)(4) by failing to report the\nexistence of a safety-related condition at one of its facilities. Specifically, it alleged that\nMagellan failed to timely report three of the instances (4/8/2011, 4/14/2011, and 4/17/2011) cited\nabove, where the pressure on its Chase Colorado Pipeline at El Dorado, KS West Terminal\nexceeded 110 percent of its maximum operating pressure.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.55(a)(4) by failing to report\nthree instances of overpressure at its El Dorado, KS West Terminal facility in 2011.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under\n49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $99,000 for the violations cited above.\nItem 1: The Notice proposed a civil penalty of $51,500 for Respondent’s violation of\n49 C.F.R. § 195.406(b), for failing to provide adequate controls and protective equipment to\nprevent the pressure in its pipeline from exceeding 110 percent of the established operating\npressure limit. Magellan neither contested the allegation nor the proposed penalty. Accordingly,\nhaving reviewed the record and considered the assessment criteria, I assess Respondent a civil\npenalty of $51,500 for violation of 49 C.F.R. § 195.406(b).\nItem 2: The Notice proposed a civil penalty of $47,500 for Respondent’s violation of 49 C.F.R.\n§ 195.55(a)(4), for failing to report a safety-related condition at its El Dorado, KS West Terminal\nfacility in 2011. As discussed above, Respondent’s records indicated three instances of\noverpressure at its El Dorado, KS West Terminal in 2011, yet Magellan failed to report them as a\nsafety-related condition, as required under 49 CFR § 195.55(a)(4). Magellan neither contested\nthe allegation nor the proposed penalty. Accordingly, having reviewed the record and considered\nthe assessment criteria, I assess Respondent a civil penalty of $47,500 for violation of 49 C.F.R.\n§ 195.55(a)(4).\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $99,000.\n\n\n\n4\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $99,000 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":10576}