{"operation":"document","citation":"CPF 320145007","title":"CRESTWOOD DAKOTA PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-10-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 194.107(c), 194.107(c)(1), 195.402(a), 195.404(a)(2), 195.432(b), 195.561(a), 195.563(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320145007.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320145007.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320145007","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320145007","body":"Notice of Probable Violation involving CRESTWOOD DAKOTA PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 194.107(c),  194.107(c)(1),  195.402(a),  195.404(a)(2),  195.432(b),  195.561(a),  195.563(a). The case was opened on 2014-10-02 and is reported as closed as of 2015-07-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320145007_Final Order_07022015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145007/320145007_Final%20Order_07022015.pdf\n\n320145007_Final Order_07022015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145007/320145007_Final%20Order_07022015_text.pdf\n\n320145007_NOPV PCO Revised_10022014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145007/320145007_NOPV%20PCO%20Revised_10022014.pdf\n\n320145007_NOPV PCO_Revised_10022014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145007/320145007_NOPV%20PCO_Revised_10022014_text.pdf\n\n320145007_Operator Response to Notice_10272014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145007/320145007_Operator%20Response%20to%20Notice_10272014.pdf\n\n320145007_Final Order_07022015_text.pdf\n\nJuly 2, 2015\nMr. Joel Moxley\nSenior Vice President, Operations Services\nCrestwood Equity Partners, LP\n700 Louisiana Street\nSuite 2550\nHouston, Texas 77002\nRe: CPF No. 3-2014-5007\nDear Mr. Moxley:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and confirms that Crestwood Dakota Pipeline, LLC, has completed the actions\nspecified in the Notice to comply with the pipeline safety regulations. Therefore, this case is\nnow closed. Service of the Final Order by certified mail is deemed effective upon the date of\nmailing, 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. Allan Beshore, Director, Central Region, Office of Pipeline Safety (OPS)\nMs. Alice Ratcliffe, Pipeline Compliance Manager, Crestwood Midstream Partners, LP,\n801Cherry Street, Suite 3800, Unit 20, Fort Worth, Texas 76102\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 )\nCrestwood Dakota Pipeline, LLC, ) CPF No. 3-2014-5007\na subsidiary of Crestwood Equity Partners, LP, )\n)\n)\n)\nRespondent. )\n_________________________________________ )\nFINAL ORDER\nBetween October 28 – November 1, 2013, 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 Crestwood\nDakota Pipeline, LLC, (Crestwood or Respondent) in Epping, North Dakota. Crestwood, a\nsubsidiary of Crestwood Equity Partners, LP, owns and operates 20.9 miles of crude oil\npipelines, as well as other pipeline facilities, in and around Epping, North Dakota.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated October 2, 2014, 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 Crestwood\nhad violated 49 C.F.R. § 195.561 and ordered Respondent take certain measures to correct the\nalleged violation. The Notice also proposed finding that Crestwood had committed probable\nviolations of 49 C.F.R. §§ 194.107, 195.402, 195.404, 195.432, and 195.563, and warned\nRespondent to take corrective action to address them or be subject to future enforcement actions.\nCrestwood responded to the Notice by letter dated October 27, 2014 (Response). Respondent\ndid not contest the allegation of violation or the proposed compliance order, but did provide\ninformation on the corrective actions it had taken. Crestwood did not request a hearing and\ntherefore has waived its right to one.\n1 See Operations – Crude Facilities – COLT Hub, Crestwood Midstream Partners, LP,\nhttp://www.crestwoodlp.com/operations/ngl-crude-services/crude-colt-hub.asp (last visited March 4, 2015); see\nalso Operations – Crude Facilities – Arrow Midstream, Crestwood Midstream Partners, LP,\nhttp://www.crestwoodlp.com/operations/ngl-crude-services/crude-arrow.asp (last visited March 4, 2015).\n\n\n\nCPF No. 3-2014-5007\nPage 2\nFINDING OF VIOLATION\nIn its Response, Crestwood did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195.561(a), as follows:\nItem 6: The Notice alleged that Respondent violated 49 C.F.R. § 195.561(a), which states:\n§ 195.561 when must I inspect pipe coating used for external\ncorrosion control?\n(a) You must inspect all external pipe coating required by § 195.557\njust prior to lowering the pipe into the ditch or submerging the pipe.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.561(a) by lowering a section of\npipe into a ditch without first inspecting its external coating. Specifically, the Notice alleged that\non November 19, 2011, a contractor employed by Crestwood failed to “jeep”2 or inspect the\nexternal pipe coating on 900 feet of pipe before lowering it into a ditch between stations 720+00\nand 729+00 on Crestwood’s Colt Connector system.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find Crestwood violated 49 C.F.R. § 195.561(a) by failing to inspect the\nexternal pipe coating on 900 feet of pipe before lowering it into a ditch between stations 720+00\nand 729+00 on its Colt Connector system.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 6 in the Notice for a violation of\n49 C.F.R. 195.561(a). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under Chapter 601. The Director has\nindicated that Respondent has taken the following actions to address some of the cited violations:\n1. Respondent has completed a Direct Current Voltage Gradient (DCVG) Survey for the\nentire length of the Colt Connector system. Following the DCVG Survey, Crestwood\nsubmitted a final report indicating that all anomalies noted during the survey were\nminor, and recommending that a confirmatory dig be completed to validate these\nfindings.\n2. Respondent has provided documentation that a confirmatory dig was performed, and\na report of this dig sent to the Central Region on November 17, 2014.\n2 “To jeep” is a term used to describe a method of holiday detection using an instrument that applies a voltage\nbetween the external surface of the coating and the pipe.\n\n\n\nCPF No. 3-2014-5007\nPage 3\n3. Respondent applied cathodic protection to the line, which was found to be acceptable.\nCrestwood added three more test stations to the line, one of which being located in\nthe area specified in the Proposed Compliance Order.\nAccordingly, I find compliance has been achieved with respect to this violation. Therefore, the\ncompliance terms proposed in the Notice for Item 6 are not included in this Order.\nWARNING ITEMS\nWith respect to Items 1, 2, 3, 4, 5, and 7, the Notice alleged probable violations of 49 C.F.R.\n§§ 194.107, 195.402, 195.404, 195.432, and 195.563, but did not propose a civil penalty or\ncompliance order for these items. Therefore, these are considered to be warning items. The\nwarnings were for:\n49 C.F.R. § 194.107(c)(1)(vi) (Item 1) ─ Respondent’s alleged failure to ensure\nthat its Facility Response Plan included the names and telephone numbers of\ncontacts for Federal, State, and local agencies at which it expected to have\npollution control responsibilities or support;\n49 C.F.R. § 194.107(c)(ix) (Item 2) ─ Respondent’s alleged failure to follow a\ndrill program as outlined in the guidelines found in the National Preparedness for\nResponse Exercise Program (PREP), or a program equivalent to that set forth in\nPREP;\n49 C.F.R. § 195.402(a) (Item 3) ─ Respondent’s alleged failure to follow its\nwritten procedural manual for normal operations and maintenance of pipelines,\nwhich required Crestwood to conduct monthly visual inspections of its\nfirefighting equipment;\n49 C.F.R. § 195.404(a)(2) (Item 4) ─ Respondent’s alleged failure to maintain\nwritten maps of its pipeline systems that documented all crossings of public roads,\nrailroads, rivers, buried utilities, and foreign pipelines along Crestwood’s rights-\nof-way. Specifically, the Notice alleged that Crestwood failed to document a\nparticular location where another operator’s pipeline crossed Respondent’s right-\nof-way and, further, that Crestwood did not have a process to ensure that\ncrossings found during maintenance actions were properly documented on the\ncompany’s “as-built” maps;\n49 C.F.R. § 195.432(b) (Item 5) ─ Respondent’s alleged failure to follow Section\n4 of American Petroleum Institute Standard 653 (incorporated by reference in 49\nC.F.R § 195.3) for the monthly inspection of its in-service atmospheric and low-\npressure steel aboveground breakout tanks; and\n\n\n\nCPF No. 3-2014-5007\nPage 4\n49 C.F.R. § 195.563(a) (Item 7) ─ Respondent’s alleged failure to apply cathodic\nprotection to the Colt Connector pipeline system within one year of the pipeline\nbecoming operational.\nCrestwood presented information in its Response showing it had taken certain actions to address\nthe cited items. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this Final Order are effective upon receipt of service.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320145007_NOPV PCO Revised_10022014.pdf\n\n0\nu.s. Department\nof Transportation\nPipeline and\nHazardous Materials Safety\nAdministration\n901 Locust Street, Suite 462\nKansas City, MO 641 06-2641\nOctober 2, 2014\nMr. George Grau\nVice President, Operations Crude and NGL\nCrestwood Dakota Pipeline LLC\n801 Cherry Street\nSuite 3800, Unit 20\nFort Worth, Texas 76102\nCPF 3-2014-5007\nDear Mr. Grau:\nPlease find attached a corrected copy ofCPF 3-2014-5007. The original version referenced\nthe wrong violation number for the Proposed Compliance Order and the dates for the initial\noperation of the pipeline and when Crestwood merged with Inergy were incorrect.\nWe apologize for any inconvenience that this may have caused.\nSincerely,\nLinda Daugherty\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n\n\n\n~J\nU.S. Department\nof Transportation\nPipeline and Hazardous Materials\nSafety Administration\n901 Locust Street, Suite 462\nKansas City, Missouri 64106-2641\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL- RETURN RECEIPT REQUESTED\nOctober 2, 2014\nMr. George Grau\nVice President, Operations Crude and NGL\nCrestwood Dakota Pipeline LLC\n801 Cherry Street\nSuite 3800, Unit 20\nFort Worth, Texas 76102\nCPF 3-2014-5007\nDear Mr. Grau:\nOn October 28 - November 1, 2013, representatives ofthe Central Region office ofthe\nPipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter\n601 of 49 United States Code inspected your records and facilities in Epping, ND.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected\nand the probable violation(s) are:\n1. §194.107 General response plan requirements\n(c) Each response plan must include:\n(1) A core plan consisting of-\n(vi) Names and telephone numbers of Federal, State and local agencies which the\noperator expects to have pollution control responsibilities or support,\nCrestwood did not ensure that the names and contacts in the facility response plan were\ncurrent. Review of the plan identified that the names and phone numbers for the\ninternal notification were not updated. Additionally, Crestwood was unable to confirm\nif any of the government agencies listed had correct phone numbers.\n\n\n\n2. §194.107 General response plan requirements\n(c) Each response plan must include:\n(ix) Drill program-an operator will satisfy the requirement for a drill program\nby following the National Preparedness for Response Exercise Program (PREP)\nguidelines. An operator choosing not to follow PREP guidelines must have a drill\nprogram that is equivalent to PREP. The operator must describe the drill\nprogram in the response plan and OPS will determine if the program is equivalent\nto PREP.\nCrestwood did not conduct any drill programs for the Colt Connector system since it\nwent into operation in June of2012. Crestwood acquired this system in December of\n2013. Company personnel indicated that they had not yet conducted any table top spill\ndrills or quarterly notifications drills and were unable to produce any records showing\nthat the drills were done between June of2012 and December of2013.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\na) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall\nbe reviewed at intervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a pipeline\nsystem commence, and appropriate parts shall be kept at locations where\noperations and maintenance activities are conducted.\nCrestwood did not follow their procedure for ensuring that their fire extinguishers were\nin proper operating conditions at all times. Procedure 14.05 indicates that Crestwood\nwill conduct monthly visual inspections of the firefighting equipment. Review of the\nrecords found that they had only inspected the extinguishers in October of2013.\n4. §195.404 Maps and Records.\na) Each operator shall maintain current maps and records of its pipeline systems\nthat include at least the following information;\n(2) All crossings of public roads, railroads, rivers, buried utilities, and foreign\npipelines.\nCrestwood did not document a pipeline crossing of their line on any of their maps.\nReview of the patrol record found that on 10/9/2013, an observation was noted that a\npipeline was crossing their line. No follow-up documentation was found that identified\n2\n\n\n\nwho was crossing. Further discussions with Crestwood personnel found that no process\nexisted for ensuring that crossings found during routine maintenance actions along the\nline would be documented on the as-built maps.\n5. §195.432 Inspection of in-service breakout tanks.\n(b) Each operator must inspect the physical integrity of in-service atmospheric\nand low-pressure steel aboveground breakout tanks according to API Standard\n653 (incorporated by reference, see § 195.3). However, if structural conditions\nprevent access to the tank bottom, the bottom integrity may be assessed according\nto a plan included in the operations and maintenance manual under §\n195.402( c )(3).\nCrestwood missed several monthly tank inspections as required by Section 4 of API\n653 for the tank at Dry Fork Station. Review of the records found that the inspections\nfor February, August, and September were missing for 2013. -\n6. §195.561 When must I inspect pipe coating used for external corrosion control?\n(a) You must inspect all external pipe coating required by Sec. 195.557 just prior\nto lowering the pipe into the ditch or submerging the pipe.\nDuring the construction of the Colt Connector system, the contractor that installed the\nsystem put a section of pipe in the ditch without inspecting the coating prior to lowering\nit in. Review ofthe daily report dated 11 /19/2011 found that the contractor put 900 feet\nof pipe in the ditch without jeeping the pipe. This occurred between station numbers\n720+00 to 729+00. The report indicated that this was done because of incoming bad\nweather. As indicated earlier, it should be noted that Crestwood purchased these assets\nin December of2012 after the construction of the system.\n7. §195.563 Which pipelines must have cathodic protection?\n(a) Each buried or submerged pipeline that is constructed, relocated, replaced, or\notherwise changed after the applicable date in Sec. 195.401(c) must have cathodic\nprotection. The cathodic protection must be in operation not later than 1 year\nafter the pipeline is constructed, relocated, replaced, or otherwise changed, as\napplicable.\nCrestwood did not apply cathodic protection to the Colt Connector pipeline system\nwithin one year of the pipeline going into operation. According to records and\ndiscussions with Crestwood personnel, the pipeline went into operation on June of\n2012. The cathodic protection was not operational until October of2013. Cathodic\nprotection should have been applied by June of2013.\n3\n\n\n\nProposed Compliance Order\nWith respect to item six (6), pursuant to 49 United States Code§ 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to\nCrestwood Dakota Pipelines LLC. Please refer to the Proposed Compliance Order, which\nis enclosed and made a part of this Notice.\nWarning Items\nWith respect to item(s) one (1), two (2), three (3), four (4), five (5), and seven (7), we have\nreviewed the circumstances and supporting documents involved in this case and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at\nthis time. We advise you to promptly correct these item(s). Be advised that failure to do so\nmay result in Crestwood Dakota Pipelines LLC being subject to additional enforcement\naction.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the response\noptions. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive\nmaterial qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete\noriginal document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). lfyou\ndo not respond within 30 days of receipt of this Notice, this constitutes a waiver of your\nright to contest the allegations in this Notice and authorizes the Associate Administrator for\nPipeline Safety to find facts as alleged in this Notice without further notice to you and to\nissue a Final Order.\nIn your correspondence on this matter, please refer to CPF 3-2014-5007 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\n~d~\nLinda Daugherty\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Crestwood Dakota Pipelines LP a\nCompliance Order incorporating the following remedial requirements to ensure the\ncompliance of Crestwood Dakota Pipelines LP with the pipeline safety regulations:\n1. 2. 3. 4. Pertaining to the line segment between station number 720+00 to 729+00 that was\nnot jeeped, provide a plan to ensure that the coating is in good condition. The plan\nshould include a DCVG survey and provisions for possible excavations and\nremedial actions.\nProvide the plan and action schedule within 60 days from the date of receipt of the\nFinal Order.\nImplement the plan and schedule required by items 1, above, within 90 days from\nthe date of receipt of the Final Order.\nCrestwood shall maintain documentation of the safety improvement costs associated\nwith fulfilling this Compliance Order and submit the total to Linda Daugherty,\nDirector, Central Region, Pipeline and Hazardous Materials Safety Administration,\n901 Locust Street, Room 462, Kansas City, MO 64106. Costs shall be reported in\ntwo categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total costs associated with replacements,\nadditions and other changes to pipeline infrastructure.\n5","truncated":false,"body_characters":20933}