{"operation":"document","citation":"CPF 320135018","title":"CHS MCPHERSON REFINERY INC. — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-06-21","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.302(a), 195.402(a), 195.404(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320135018.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320135018.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320135018","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320135018","body":"Notice of Probable Violation involving CHS MCPHERSON REFINERY INC.. PHMSA's enforcement data identifies the cited regulations as 195.302(a),  195.402(a),  195.404(c)(3). The case was opened on 2013-06-21 and is reported as closed as of 2014-03-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320135018_Closure_03032014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Closure_03032014.pdf\n\n320135018_Closure_03032014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Closure_03032014_text.pdf\n\n320135018_Final Order_12262013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Final%20Order_12262013.pdf\n\n320135018_Final Order_12262013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Final%20Order_12262013_text.pdf\n\n320135018_NOPV PCO_06212013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_NOPV%20PCO_06212013.pdf\n\n320135018_NOPV PCO_06212013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_NOPV%20PCO_06212013_text.pdf\n\n320135018_Operator Response to Notice_07102013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Operator%20Response%20to%20Notice_07102013.pdf\n\n320135018_Closure_03032014_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 3, 2014\nMr. James S. Loving\nPresident\nNational Cooperative Refinery Association\n2000 South Main Street\nMcPherson, Kansas 67460\nRe: CPF 3-2013-5018\nDear Mr. Loving:\nOn December 26, 2013, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) issued to National Cooperative Refinery Association (NCRA) a Final Order\n(Order) in the above-referenced case. This Order included a Consent Order regarding tests,\ninspections and documentation on the McPherson-to-Conway pipeline system. Based on\nour review of the documentation you provided, it has been determined that you have\ncomplied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to\nthe matters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nLinda Daugherty\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n\n320135018_Final Order_12262013_text.pdf\n\nDECEMBER 26, 2013\nMr. James S. Loving\nPresident\nNational Cooperative Refinery Association\n2000 South Main Street\nMcPherson, Kansas 67460\nRe: CPF No. 3-2013-5018\nDear Mr. Loving:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by National Cooperative Refinery\nAssociation to comply with the pipeline safety regulations. When the terms of the compliance\norder have been completed, as determined by the Director, Central Region, this enforcement\naction will be closed. Service of the Final Order by certified mail is deemed effective upon the\ndate of mailing, or as otherwise provided 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: Mr. Richard S. Peterson, Vice President, Transportation, National Cooperative Refinery\nAssociation\nMs. 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 )\nNational Cooperative Refinery Association, ) CPF No. 3-2013-5018\na nonprofit corporation, )\n)\n)\n)\nRespondent. )\n_________________________________________ )\nFINAL ORDER\nOn April 12-16, April 19-23, and April 26-30, 2010, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of National Cooperative Refinery Association (NCRA or Respondent) in Kansas, Iowa,\nand Nebraska. NCRA operates a refinery in McPherson, Kansas, and transports product from\nthat refinery through a system of pipelines throughout Kansas, Nebraska, and Iowa.1 PHMSA’s\ninspection covered five pipelines running between NCRA’s refinery in McPherson and its\nunderground storage facility in Conway, Kansas.2\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated June 21, 2013, 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 NCRA had\nviolated 49 C.F.R. §§ 195.302(a), 195.402(a) and 195.404(c)(3) and ordering Respondent to take\ncertain measures to correct the alleged violations.\nNCRA responded to the Notice by letter dated July 10, 2013 (Response). The company did not\ncontest the allegations of violation but provided information concerning the corrective actions it\nhad taken. Respondent did not request a hearing and therefore has waived its right to one.\n1 NCRA website, available at http://www.ncra.coop/MediaCenter/Gettoknow.pdf (last accessed November 1,\n2013).\n2 Pipeline Safety Violation Report (Violation Report), (June 21, 2013) (on file with PHMSA), at 1.\n\n\n\n2\nFINDINGS OF VIOLATION\nIn its Response, NCRA did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.302(a), which states:\n§ 195.302 General requirements.\n(a) Except as otherwise provided in this section and in §195.305(b),\nno operator may operate a pipeline unless it has been pressure tested under\nthis subpart without leakage. In addition, no operator may return to service\na segment of pipeline that has been replaced, relocated, or otherwise\nchanged until it has been pressure tested under this subpart without\nleakage.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.302(a) by operating a pipeline that\nhad not been pressure tested without leakage, in accordance with Subpart E of 49 C.F.R. Part\n195. Specifically, the Notice alleged that NCRA had failed to perform pressure tests on its\nMcPherson-to-Conway pipeline system. The Notice further alleged that the maximum operating\npressure for this system had not been established, as required by 49 C.F.R. § 195.302(b)(1).\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. § 195.302(a) by operating a pipeline\nthat had not been pressure tested without leakage, in accordance with Subpart E of 49 C.F.R. Part\n195.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline\nsystem a manual of written procedures for conducting normal operations\nand maintenance activities and handling abnormal operations and\nemergencies. This manual shall be reviewed at intervals not exceeding 15\nmonths, but at least once each calendar year, and appropriate changes made\nas necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline system commence, and\nappropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to prepare and\nfollow a manual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. Specifically, the Notice alleged\nthat NCRA had failed to prepare or incorporate into its existing Operations and Maintenance\n(O&M) manual written procedures for each of the specific requirements described in 49 C.F.R.\n§ 195.402(c), (d), and (e).\n\n\n\n3\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. § 195.402(a) by failing to prepare and\nfollow a manual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(c)(3), which states:\n§ 195.404 Maps and records.\n(a) . . .\n(c) Each operator shall maintain the following records for the periods\nspecified: . . .\n(1) . . .\n(3) A record of each inspection and test required by this subpart shall\nbe maintained for at least 2 years or until the next inspection or test is\nperformed, whichever is longer.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.404(c)(3) by failing to maintain a\nrecord of each inspection and test required by Subpart F of 49 C.F.R. Part 195 for at least two\nyears or until the next inspection or test is performed, whichever is longer. Specifically, the\nNotice alleged that NCRA failed to maintain records of all inspections and tests required by\nSubpart F of Part 195 that had been performed on its McPherson-to-Conway pipeline system.\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. § 195.404(c)(3) by failing to maintain\nrecords of each inspection and test required by Subpart F of 49 C.F.R. Part 195 for at least two\nyears, or until the next inspection or test is performed, whichever is longer.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for\nviolations of 49 C.F.R. §§ 195.302(a), 195.402(a), and 195.404(c)(3), respectively. Under\n49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who\nowns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.\n§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.302(a) (Item 1), Respondent must submit\ncopies of pressure test records consistent with 49 C.F.R. § 195.310 for the\nMcPherson-to-Conway pipeline system. Respondent must also submit a listing of\nthe established maximum operating pressure(s) for the McPherson-to-Conway\npipeline system.\n\n\n\n4\n2. 3. 4. 5. With respect to the violation of § 195.402(a) (Item 2), Respondent must submit a\nmanual of written procedures for conducting normal operations and maintenance\nand handling abnormal operations and emergencies.\nWith respect to the violation of § 195.404(c)(3) (Item 3), Respondent must\nsubmit the latest record of all required inspections and tests, including but not\nlimited to:\na. Inspections of rights-of-way;\nb. Valve maintenance;\nc. Pipeline repairs or modifications completed in 2012;\nd. Inspections of overpressure safety devices and overfill protection systems;\ne. Inspections of firefighting equipment;\nf. Inspections of breakout tanks; and\ng. Inspections, surveys, or tests of the corrosion control system.\nRespondent must submit all documentation required by this Compliance Order\nwithin 30 days of receipt of this Final Order and in electronic format, whenever\npossible.\nPHMSA requests that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit\nthe total to the Director. PHMSA requests that Respondent report these costs in\ntwo categories: (1) total cost associated with preparation and revision of plans,\nprocedures, studies, and analyses; and (2) total cost associated with replacements,\nadditions, and other changes to pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court 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":12769}