{"operation":"document","citation":"CPF 320145002H","title":"MID - VALLEY PIPELINE CO — Corrective Action Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-03-25","effective_on":null,"summary":"CLOSED corrective action order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320145002h.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320145002h.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320145002h","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320145002H","body":"Corrective Action Order involving MID - VALLEY PIPELINE CO. The dataset does not identify a cited regulation for this case. The case was opened on 2014-03-25 and is reported as closed as of 2016-11-04. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320145002H_Closure Letter_11042016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145002H/320145002H_Closure%20Letter_11042016.pdf\n\n320145002H_Closure Letter_11042016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145002H/320145002H_Closure%20Letter_11042016_text.pdf\n\n320145002H_Corrective Action Order_03252014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145002H/320145002H_Corrective%20Action%20Order_03252014.pdf\n\n320145002H_Corrective Action Order_03252014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145002H/320145002H_Corrective%20Action%20Order_03252014_text.pdf\n\n320145002H_Closure Letter_11042016_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 4, 2016\nMr. David R. Chalson\nSr. Vice President, Operations\nSunoco Pipeline L.P.\n4041 Market Street\nAston, PA 19014\nCPF 3-2014-5002H\nDear Mr. Chalson:\nOn March 25, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Mid-Valley Pipeline Co. a Corrective Action Order (CAO) in the above-referenced\ncase. This Order included required actions to be taken on and along your pipeline. Based on our\nreview of the documentation you provided, it has been determined that you have complied with\nthe terms of this Order.\nAccordingly, this case is now closed. Thank you for your cooperation in this matter.\nSincerely,\nAllan C. Beshore\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\ncc: Gary MacDonald\nPresident, Mid-Valley Pipeline Co.\n1 Fluor Daniel Dr. Bldg A, Level 3\nSugar Land, TX 77478\n\n320145002H_Corrective Action Order_03252014_text.pdf\n\nMarch 25, 2014\nVIA CERTIFIED MAIL [Mr. Charles Maser] AND FACSIMILE\nCharles E. Maser\nPresident of Mid-Valley Pipeline Co.\n1818 Market Street, Suite 1500\nPhiladelphia, PA 19103\nRe: CPF No. 3-2014-5002H\nDear Mr. Maser:\nEnclosed please find the Corrective Action Order issued by the Associate Administrator for\nPipeline Safety in the above-referenced case. It requires Mid-Valley Pipeline Co. to take\nimmediate corrective actions with respect to its hazardous liquid pipeline failure discovered on\nMarch 18, 2014, in Colerain, Hamilton County, Ohio. Service is being made by certified mail\nand facsimile. Your receipt of this Corrective Action Order constitutes service of that document\nunder 49 C.F.R. § 190.5. The terms and conditions of this Order are effective upon receipt.\nWe look forward to a successful resolution of the concerns arising out of this recent pipeline\nfailure and to ensure the safety of the line. Please direct any questions on this matter to Linda\nDaugherty, Director, Central Region, OPS, at (816) 329-3821.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Corrective Action Order and Copy of 49 C.F.R. § 190.233\ncc: Mr. Michael Hennigan, President and Chief Executive Officer\nMs. Linda Daugherty, Director, Central Region, OPS\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n___________________________________\n-------------------------------------------------------\n)\nIn the Matter of ) )\nMid-Valley Pipeline Company, ) CPF No. 3-2014-5002H\n)\nRespondent. ) )\n-------------------------------------------------------\nCORRECTIVE ACTION ORDER\nPurpose and Background\nThis Corrective Action Order (Order) is being issued, under authority of 49 U.S.C. § 60112, to\nrequire Mid-Valley Pipeline Company (Mid-Valley or Respondent), to take necessary corrective\naction to protect the public, property, and the environment from potential hazards associated\nwith a failure involving Respondent's 20-inch-diameter hazardous liquid pipeline running from\nHebron, Kentucky, to Lima, Ohio (Affected Pipeline).\nOn March 18, 2014, a failure was identified on the Affected Pipeline in Hamilton County, Ohio,\nresulting in the release of at least 364 barrels of crude oil. The commodity exited the pipeline\nthrough a bottom-side dent that contained a 5-inch axial through-wall crack containing some\nmetal loss. The cause of the failure has not yet been determined. Pursuant to 49 U.S.C. § 60117,\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), initiated an investigation of the accident. The preliminary findings of the agency's\nongoing investigation are as follows:\nPreliminary Findings\n• Mid-Valley is a subsidiary of Sunoco Logistics Partners, LP, which operates both crude\nand refined product pipelines. The Sunoco Logistics Crude Oil Pipeline System\nconsists of approximately 4,900 miles of crude oil trunk pipelines and 500 miles of\ncrude oil gathering pipelines in the southwest and midwest regions of the United\nStates. The pipelines in the southwest United States consist of approximately 2,950\nmiles of crude oil trunk pipelines and approximately 300 miles of crude oil gathering\npipelines in Texas. The Texas system is connected to the Mid-Valley pipeline system.\n1\n• The Mid-Valley Pipeline system (approximately 1000 miles) starts in Longview, Texas\nand continues on to Samaria, Michigan. The Affected Pipeline is part of the Mid-\nValley Pipeline system.\n1 See Sunoco Logistics Partners, LP., website, available at http://www.sunocologistics.com/Customers/Business-\nLines/Crude-Oil-Pipeline-System/55/ (last accessed March 24, 2014).\n\n\n\n2\n• The Affected Pipeline is approximately 121 miles in length. Portions of the pipeline,\nincluding the failure site, are located in high consequence areas (HCAs) or could affect\nareas. The line crosses various roadways, the Ohio River, Great Miami River, several\npopulated areas, and numerous streams. The Affected Pipeline includes one section of\n20-inch loop line that remains activated from Headapohl to Lima (begins at Headapohl\nMP 898 and ends at Lima MP 912).\n• The Affected Pipeline moves crude oil from Hebron, Kentucky, to Lima, Ohio.\n• The manufacturer of the failed pipe is National Tube. The steel pipe at the failure\nlocation was constructed in 1950, is 20” in diameter, 0.358” wall thickness, grade\nX52, and seamless with a coal-tar coating. It has an impressed current cathodic\nprotection system.\n• The pressure at the Hebron, Kentucky, pump station prior to the failure was 927 psig.\nThe maximum operating pressure (MOP) of this line segment is 936 psig.\n• A portion of the pipeline running between Hedapohl and Lima was hydrotested in\nAugust 2005. However, other portions of the pipeline between Hebron and Lima\nwere built prior to hydrotesting requirements and as a result are operated under the\nrisk based alternative selection criteria as set forth in § 195.303.\n• At approximately 01:02 am EDT on March 18, 2014, Respondent discovered that\na failure had occurred on the Affected Pipeline, resulting in the release of an\nestimated 240 barrels of crude oil. The release volume has since been estimated to be\ngreater than 364 barrels. The failure occurred at Mile Post 807 in the township of\nColerain, Hamilton County, Ohio. The incident was reported by Sunoco to the\nNational Response Center at 03:41 EDT am on March 18, 2012 (NRC Report No.\n1076964).\n• The accident occurred in a heavily wooded area adjacent to the Oak Glen Nature\nPreserve and other highly populated HCAs located less than a mile from the Great\nMiami River. The crude oil migrated off the pipeline right-of-way, contaminating the\nOak Glen Nature Preserve. The last reported count of wildlife treated for\ncontamination was 36. An unnamed creek bed continues to be washed down.\n• Various state and federal agencies, including the United States Coast Guard, the\nColerain Fire Department, EPA Region V, Ohio EPA and Ohio DNR, U.S. Fish and\nWildlife, Department of Interior, Great Parks of Hamilton County, Hamilton County\nPublic Health, numerous contractors working on behalf of the operator, and various\noperating personnel are continuing to perform clean-up, remediation, and\nmonitoring activities.\n• Spilled crude oil from Respondent's pipeline migrated into a ravine near the failure site\nand into a pond in the Oak Glen Nature Preserve. Removal of crude oil from the pond\n\n\n\n3\nis underway. The Great Miami River, located less than a mile away from the failure\nsite, has not shown signs of being affected at the time of this order.\n• The pipeline had been shut down prior to the failure due to normal operations. The\npipeline was static at the time the failure was discovered. Public odor complaints led\nto the discovery of the crude oil spill. After becoming aware of the failure,\nRespondent's personnel isolated the pipeline using mainline block valves located at\nMP 802 and MP 808.\n• The Affected Pipeline was more recently inspected using an in-line inspection (ILI)\ntechnology for deformation and metal loss anomalies in February of 2013. Three\nbottom-side deformation anomalies were reported in the area of the failure as being less\nthan 2%. The ILI summary data presented to PHMSA on March 20, 2014 (several days\nafter the initial failure) included findings that similar dents or larger had been identified\nin an additional 28 locations that had not yet been excavated as of the date of the\nfailure.\n• At least two major spills have occurred on the Mid-Valley Pipeline system in recent\nyears. A large spill occurred in Florence, Kentucky, in October 2008 (20080331),\nwhen 3,650 barrels were released, with an incursion into the sanitary sewer system\nand nearby Gunpowder Creek. The same line had previously ruptured in January\n2005 (20050073), causing a release of 6,909 barrels, mostly into the Kentucky River.\n• Four days after the March 18 2014, failure, Mid-Valley provided a repair and restart\nplan to PHMSA for review. Originally, the repair plan involved using a “PLIDCO”\nrepair fitting and three clocksprings. The repair plan that had been originally reviewed\nby PHMSA and discussed with DNV, a third party consultant, was subsequently\nmodified such that a threaded o-ring (“TOR”) was included on the PLIDCO. This\nrevision occurred without initial review by DNV or PHMSA.\nDetermination of Necessity for Corrective Action Order and Right to Hearing\nSection 60112 of Title 49, United States Code, provides for the issuance of a Corrective Action\nOrder, after reasonable notice and the opportunity for a hearing, requiring corrective\naction, which may include the suspended or restricted use of a pipeline facility, physical\ninspection, testing, repair, replacement, or other action, as appropriate. The basis for\nmaking the determination that a pipeline facility is hazardous and requiring corrective action is\nset forth both in the above-referenced statute and 49 C.P.R.§ 190.233, a copy of which is\nenclosed.\nSection 60112, and the regulations promulgated thereunder, provide for the issuance of a\nCorrective Action Order without prior opportunity for notice and hearing upon a finding\nthat failure to issue the Order expeditiously will likely result in serious harm to life, property or\nthe environment. In such cases, an opportunity for a hearing will be provided as soon as\npracticable after the issuance of the Order.\n\n\n\n4\nAfter evaluating the foregoing preliminary findings of fact, I find that the continued operation of\nthe Affected Pipeline without corrective measures would be hazardous to life, property and the\nenvironment. Additionally, after considering the age of the pipe, the lack of original\nhydrotesting on all portions of the Affected Pipeline, the circumstances surrounding this failure\n(i.e., a crack in a dent), the temporary repair plan being modified without review by all necessary\nparties, the presence of additional dents with similar characteristic on the Affected Pipeline as\nthat near the failure location, the proximity of the pipeline to populated areas, public\nroadways, river crossings and other High Consequence Areas, the hazardous nature of the\nproduct being transported, the pressure required for transporting the material, the uncertainties\nas to the cause of the failure, and the ongoing investigation to determine the cause of the\nfailure, I find that a failure to issue this Order to require corrective action would result in\nlikely serious harm to life, property, and the environment and that additional dent indications\nshould be addressed as quickly as possible.\nAccordingly, this Corrective Action Order mandating immediate corrective action is issued\nwithout prior notice and opportunity for a hearing. The terms and conditions of this Order are\neffective upon receipt.\nWithin 10 days of receipt of this Order, Respondent may request a hearing, to be held as soon as\npracticable, by notifying the Associate Administrator for Pipeline Safety in writing, with a copy\nto the Director, Central Region, PHMSA (Director). If a hearing is requested, it will be held\ntelephonically or in-person in Kansas City, Missouri.\nAfter receiving and analyzing additional data in the course of this investigation, PHMSA may\nidentify other corrective measures that need to be taken. Respondent will be notified of any\nadditional measures required and amendment of this Order will be considered. To the extent\nconsistent with safety, Respondent will be afforded notice and an opportunity for a hearing prior\nto the imposition of any additional corrective measures.\nRequired Corrective Actions\nPursuant to 49 U.S.C. § 60112, I hereby order Mid-Valley Pipeline Company to immediately\ntake the following corrective actions with respect to the Affected Pipeline:\n1. Maintain a twenty percent (20%) pressure reduction in the operating pressure of the\nAffected Pipeline. At the time of the failure, the pipeline was flowing from Hebron,\nKentucky, to Lima, Ohio. The pipeline must not reverse operations on a planned basis.\nThe operating pressure may not exceed eighty percent (80%) of the operating pressure in\neffect immediately prior to the failure (927 psig reduced to 743 psig). This pressure\nrestriction will remain in effect until written approval to increase the pressure or return\nthe pipeline to its pre-failure operating pressure is obtained from the Central Region\nDirector.\n2. Within 90 days of receipt of this Order, cut out the failed pipeline section and complete\nmechanical and metallurgical testing, and perform failure analysis of the failed pipe,\nincluding analysis of soil samples and any foreign materials. Complete the testing and\n\n\n\n5\nanalysis as follows:\nA. Document the chain-of-custody when handling and transporting the failed pipe\nsection and other evidence from the failure site;\nB. Within 10 days of receipt of this Order, develop and submit the testing protocol,\nincluding selection of the testing laboratory, to the Central Region Director for\nprior approval.\nC. Prior to commencing the mechanical and metallurgical testing, provide the\nCentral Region Director with the scheduled date, time, and location of the testing to\nallow a PHMSA representative to witness the testing; and\nD. Ensure that the testing laboratory distributes all resulting reports in their entirety\n(including all media), whether draft or final, to the Central Region Director at the\nsame time as they are made available to Respondent.\n3. Within 60 days following receipt of this Order, complete a root cause failure analysis for\nthe March 18, 2014 accident that is supplemented and facilitated by an independent third\nparty approved by the Director. Within 10 days of receipt of this Order, submit the\nname of the independent third-party contractor for approval by the Central Region\nDirector. Elements of the root cause analysis must include, but not be limited to: a\nscoping document of the root cause analysis; procedures associated with root cause\nanalysis; multiple methods used for the analysis and periodic (not to exceed monthly)\nupdates on each method as it progresses. This root cause failure analysis shall include a\ndetailed review of the failure mechanism, the control room activities prior to, during and\nafter the failure discovery, including manual calculations associated with over and short\nmaterial balance efforts, emergency response procedures and execution of these\nprocedures by all personnel, and associated personnel performing field operations and\nmaintenance response to the failure. Provide the Central Region Director with the\nscheduled date, time, and location of personnel interviews and document these\ninterviews. The root cause analysis must document all contributory factors and the\ndecision-making process. Submit a final report of the root cause analysis results to the\nCentral Region Director, including any recommendations or lessons learned and whether\nthe findings are applicable to other locations within Respondent's Mid-Valley Pipeline\nSystem.\n4. Within 90 days following receipt of this order, submit a remedial work plan (RWP)\nthat includes integrity verification measures to the Central Region Director for\napproval. The plan must provide for the verification of the integrity of the Affected\nPipeline and must address all factors known or suspected in the March 18, 2014 failure.\nThe plan must include:\nA. Integration of the results of the metallurgical analysis performed pursuant to Item 2\nand the root cause failure analysis required by Item 3, with all relevant data,\n\n\n\n6\nincluding all historical repair information, construction, operating, maintenance,\ntesting, metallurgical analysis or other third-party consultation information, and\nassessment data for the line segment. Data-gathering activities must include a\nreview of the failure history (including both in-service and pressure-test failures) of\nthe pipeline and development of a written report containing all available information\nregarding locations, dates, and causes of leaks and failures;\nB. Measures to identify and analyze the extent to which the root cause and other\ncontributory factors apply to all pipe in the Affected Pipeline;\nC. The performance of additional field testing, inspections, and evaluations to\ndetermine whether, and to what extent, the conditions associated with the failure, or\nany other integrity-threatening conditions are present elsewhere on the Affected\nPipeline. At a minimum within 6 months of the receipt of this order, run an In-Line\nInspection (ILI) on the Affected Pipeline capable of detecting cracks and consider\nconfirmatory hydrostatic testing. Include a detailed description of the criteria to be\nused for the evaluation and a prioritization of any integrity threats and anomalies\nthat are identified and provide vendor summary reports to the Central Region\nDirector;\nD. Include a detailed description of the inspection and repair criteria to be used in the\nevaluation and prioritization of identified integrity threats. This is to include a\ndescription of how any defects are to be graded and a schedule for repairs or\nreplacement;\nE. Include provisions for continuing long-term periodic testing and integrity\nverification measures, considering the results of the analyses, inspections, and\ncorrective measures undertaken pursuant to this Order, to ensure the ongoing safe\noperation of the Affected Pipeline;\nF. Identify all locations along the Affected Pipeline, by milepost, where PLIDCO\nfittings or clocksprings have been utilized for repairs. Within 6 months of receipt\nof this order, provide to the Central Region Director a table listing these\nlocations, date of the installation, identification of the reason for the repair, and\nthe specifics of any crack-like information (length and depth, if known). Include\ninformation about the length of the clockspring or PLIDCO utilized and identify\nwhether the PLIDCO fitting has TORs installed directly on the fitting (size of the\nTOR to be included) and is welded\nG. Investigate and, where necessary upon field investigation, remediate all reported\ndents on the Affected Pipeline, as identified in the 2013 ILI run, and repair or\nreplace any valves identified to be leaking or malfunctioning during the\nemergency response efforts following the March 18, 2014 failure, the subsequent\nrepairs, or restart activities.\n\n\n\n7\n5. 6. 7. 8. H. Review existing procedures and include provisions to ensure that reviewed or\napproved repair or restart plans are not modified unless the approving official or\nagency has first reviewed the needed revision or activity and agreed with the\nproposed action prior to implementation.\nI. Include a proposed schedule for completion of the actions required by paragraphs A-\nH of this Item.\nWithin 90 days of receipt of this order, provide a report to the Central Region Director\nthat summarizes possible enhancements that could be implemented to improve leak\ndetection capabilities, minimize operating over the maximum operating pressure “MOP”\nfor any length of time, and improve emergency response along the Affected Pipeline.\nThis should include, at minimum, a review of the deployment of an API 1130 compliant\nleak detection system on an accelerated basis, additional pressure and flow\ninstrumentation, automated valve locations, automated calculations and associated\nalarms.\nDocument and perform a detailed review of all local control room screens that have been\nor will be used in an emergency or in failure response-related maneuvers to determine\nconsistency in equipment and location identifications between the Central Control room\nand the local control room.\nUpon approval by the Central Region Director, the remedial work plan becomes\nincorporated into this order and shall be revised as necessary to incorporate the results of\nactions undertaken pursuant to this order and, whenever necessary, to incorporate new\ninformation obtained during the failure investigation and remedial activities. Submit any\nsuch plan revisions to the Director for prior approval. The Central Region Director may\napprove plan elements incrementally.\nImplement the work plan as approved by the Central Region Director, including any\nrevisions to the plan.\nOther Requirements:\n1. 2. Reporting. Submit quarter reports to the Central Region Director that: (1) include all\navailable data and results of the testing and evaluations required by this Order; (2)\nidentify all excursions of MOP by location, date and time, and associated reason for\nexcursion and (3) describe the progress of the repairs or other remedial actions being\nundertaken. The first quarterly report for the period from April 1, 2014, through June\n30, 2014, shall be due by July 15, 2014. The Director may change the interval for the\nsubmission of these reports.\nDocumentation of Costs. It is requested but not required that Respondent maintain\ndocumentation of the costs associated with implementation of this order. Include in each\nmonthly report the to-date total costs associated with: (1) preparation and revision of\nprocedures, studies and analyses; (2) physical changes to pipeline infrastructure,\n\n\n\n8\nincluding repairs, replacements and other modifications; and (3) environmental\nremediation, if applicable.\n3. Approvals. With respect to each submission requiring the approval of the Director, the\nDirector may: (a) approve the submission in whole or in part; (b) approve the submission\non specified conditions; (c) modify the submission to cure any deficiencies; (d)\ndisapprove the submission in whole or in part and direct Respondent to modify the\nsubmission; or (e) any combination of the above. In the event of approval, approval upon\nconditions, or modification by the Director, Respondent shall proceed to take all action\nrequired by the submission, as approved or modified by the Director. If the Director\ndisapproves all or any portion of a submission, Respondent must correct all deficiencies\nwithin the time specified by the Director and resubmit it for approval.\n4. Extensions of Time. The Director may grant an extension of time for compliance with\nany of the terms of this Order upon a written request timely submitted and demonstrating\ngood cause for an extension.\nThe actions required by this Corrective Action Order are in addition to and do not waive any\nrequirements that apply to Respondent’s pipeline system under 49 C.F.R. Part [195, 193, 192],\nunder any other order issued to Respondent under authority of 49 U.S.C. § 60101, et seq., or\nunder any other provision of Federal or State law.\nRespondent may appeal any decision of the Director to the Associate Administrator for Pipeline\nSafety. Decisions of the Associate Administrator shall be final.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\nFailure to comply with this Order may result in the assessment of civil penalties and in referral to\nthe Attorney General for appropriate relief in United States District Court pursuant to\n49 U.S.C. § 60120.\nIn your correspondence on this matter, please refer to CPF No. 3-2014-5002H and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nThe terms and conditions of this Corrective Action Order are effective upon receipt.\n__________________________________ __________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":25793}