# CHS MCPHERSON REFINERY INC. — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

320135018_Closure_03032014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Closure_03032014.pdf

320135018_Closure_03032014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Closure_03032014_text.pdf

320135018_Final Order_12262013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Final%20Order_12262013.pdf

320135018_Final Order_12262013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Final%20Order_12262013_text.pdf

320135018_NOPV PCO_06212013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_NOPV%20PCO_06212013.pdf

320135018_NOPV PCO_06212013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_NOPV%20PCO_06212013_text.pdf

320135018_Operator Response to Notice_07102013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320135018/320135018_Operator%20Response%20to%20Notice_07102013.pdf

320135018_Closure_03032014_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
March 3, 2014
Mr. James S. Loving
President
National Cooperative Refinery Association
2000 South Main Street
McPherson, Kansas 67460
Re: CPF 3-2013-5018
Dear Mr. Loving:
On December 26, 2013, the Pipeline and Hazardous Materials Safety Administration
(PHMSA) issued to National Cooperative Refinery Association (NCRA) a Final Order
(Order) in the above-referenced case. This Order included a Consent Order regarding tests,
inspections and documentation on the McPherson-to-Conway pipeline system. Based on
our review of the documentation you provided, it has been determined that you have
complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to
the matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Linda Daugherty
Director, Central Region
Pipeline and Hazardous Materials Safety Administration

320135018_Final Order_12262013_text.pdf

DECEMBER 26, 2013
Mr. James S. Loving
President
National Cooperative Refinery Association
2000 South Main Street
McPherson, Kansas 67460
Re: CPF No. 3-2013-5018
Dear Mr. Loving:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by National Cooperative Refinery
Association to comply with the pipeline safety regulations. When the terms of the compliance
order have been completed, as determined by the Director, Central Region, this enforcement
action will be closed. Service of the Final Order by certified mail is deemed effective upon the
date of mailing, or as otherwise provided 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: Mr. Richard S. Peterson, Vice President, Transportation, National Cooperative Refinery
Association
Ms. Linda Daugherty, Director, Central Region, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
_________________________________________
In the Matter of )
National Cooperative Refinery Association, ) CPF No. 3-2013-5018
a nonprofit corporation, )
)
)
)
Respondent. )
_________________________________________ )
FINAL ORDER
On April 12-16, April 19-23, and April 26-30, 2010, 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 National Cooperative Refinery Association (NCRA or Respondent) in Kansas, Iowa,
and Nebraska. NCRA operates a refinery in McPherson, Kansas, and transports product from
that refinery through a system of pipelines throughout Kansas, Nebraska, and Iowa.1 PHMSA’s
inspection covered five pipelines running between NCRA’s refinery in McPherson and its
underground storage facility in Conway, Kansas.2
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated June 21, 2013, a Notice of Probable Violation and Proposed Compliance Order
(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that NCRA had
violated 49 C.F.R. §§ 195.302(a), 195.402(a) and 195.404(c)(3) and ordering Respondent to take
certain measures to correct the alleged violations.
NCRA responded to the Notice by letter dated July 10, 2013 (Response). The company did not
contest the allegations of violation but provided information concerning the corrective actions it
had taken. Respondent did not request a hearing and therefore has waived its right to one.
1 NCRA website, available at http://www.ncra.coop/MediaCenter/Gettoknow.pdf (last accessed November 1,
2013).
2 Pipeline Safety Violation Report (Violation Report), (June 21, 2013) (on file with PHMSA), at 1.



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FINDINGS OF VIOLATION
In its Response, NCRA did not contest the allegations in the Notice that it violated 49 C.F.R.
Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.302(a), which states:
§ 195.302 General requirements.
(a) Except as otherwise provided in this section and in §195.305(b),
no operator may operate a pipeline unless it has been pressure tested under
this subpart without leakage. In addition, no operator may return to service
a segment of pipeline that has been replaced, relocated, or otherwise
changed until it has been pressure tested under this subpart without
leakage.
The Notice alleged that Respondent violated 49 C.F.R. § 195.302(a) by operating a pipeline that
had not been pressure tested without leakage, in accordance with Subpart E of 49 C.F.R. Part
195. Specifically, the Notice alleged that NCRA had failed to perform pressure tests on its
McPherson-to-Conway pipeline system. The Notice further alleged that the maximum operating
pressure for this system had not been established, as required by 49 C.F.R. § 195.302(b)(1).
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.302(a) by operating a pipeline
that had not been pressure tested without leakage, in accordance with Subpart E of 49 C.F.R. Part
195.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:
§ 195.402 Procedural manual for operations, maintenance, and
emergencies.
(a) General. 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. This manual shall be reviewed at intervals not exceeding 15
months, but at least once each calendar year, and appropriate changes made
as necessary to insure that the manual is effective. This manual shall be
prepared before initial operations of a pipeline system commence, and
appropriate parts shall be kept at locations where operations and
maintenance activities are conducted.
The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to prepare and
follow a manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies. Specifically, the Notice alleged
that NCRA had failed to prepare or incorporate into its existing Operations and Maintenance
(O&M) manual written procedures for each of the specific requirements described in 49 C.F.R.
§ 195.402(c), (d), and (e).



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Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.402(a) by failing to prepare and
follow a manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.404(c)(3), which states:
§ 195.404 Maps and records.
(a) . . .
(c) Each operator shall maintain the following records for the periods
specified: . . .
(1) . . .
(3) A record of each inspection and test required by this subpart shall
be maintained for at least 2 years or until the next inspection or test is
performed, whichever is longer.
The Notice alleged that Respondent violated 49 C.F.R. § 195.404(c)(3) by failing to maintain a
record of each inspection and test required by Subpart F of 49 C.F.R. Part 195 for at least two
years or until the next inspection or test is performed, whichever is longer. Specifically, the
Notice alleged that NCRA failed to maintain records of all inspections and tests required by
Subpart F of Part 195 that had been performed on its McPherson-to-Conway pipeline system.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.404(c)(3) by failing to maintain
records of each inspection and test required by Subpart F of 49 C.F.R. Part 195 for at least two
years, or until the next inspection or test is performed, whichever is longer.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for
violations of 49 C.F.R. §§ 195.302(a), 195.402(a), and 195.404(c)(3), respectively. 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 applicable safety standards
established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.
§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the
pipeline safety regulations applicable to its operations:
1. With respect to the violation of § 195.302(a) (Item 1), Respondent must submit
copies of pressure test records consistent with 49 C.F.R. § 195.310 for the
McPherson-to-Conway pipeline system. Respondent must also submit a listing of
the established maximum operating pressure(s) for the McPherson-to-Conway
pipeline system.



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2. 3. 4. 5. With respect to the violation of § 195.402(a) (Item 2), Respondent must submit a
manual of written procedures for conducting normal operations and maintenance
and handling abnormal operations and emergencies.
With respect to the violation of § 195.404(c)(3) (Item 3), Respondent must
submit the latest record of all required inspections and tests, including but not
limited to:
a. Inspections of rights-of-way;
b. Valve maintenance;
c. Pipeline repairs or modifications completed in 2012;
d. Inspections of overpressure safety devices and overfill protection systems;
e. Inspections of firefighting equipment;
f. Inspections of breakout tanks; and
g. Inspections, surveys, or tests of the corrosion control system.
Respondent must submit all documentation required by this Compliance Order
within 30 days of receipt of this Final Order and in electronic format, whenever
possible.
PHMSA requests that Respondent maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit
the total to the Director. PHMSA requests that Respondent report these costs in
two categories: (1) total cost associated with preparation and revision of plans,
procedures, studies, and analyses; and (2) total cost associated with replacements,
additions, and other changes to pipeline infrastructure.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
The terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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