# MAGELLAN PIPELINE COMPANY, LP — Warning Letter

- **operation:** document
- **citation:** CPF 320145008W
- **title:** MAGELLAN PIPELINE COMPANY, LP — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2014-09-26
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.49.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320145008w.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320145008w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320145008w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320145008W
**body:**

Warning Letter involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulation as 195.49. The case was opened on 2014-09-26 and is reported as closed as of 2014-09-26. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320145008W_Warning Letter_09262014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145008W/320145008W_Warning%20Letter_09262014.pdf

320145008W_Warning Letter_09262014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320145008W/320145008W_Warning%20Letter_09262014_text.pdf

320145008W_Warning Letter_09262014_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
September 26, 2014
Mr. Michael Pearson
VP of Technical Services
Magellan Midstream Partners, LP
One Williams Center, Mail Drop 27
Tulsa, Oklahoma 74172
CPF 3-2014-5008W
Dear Mr. Pearson:
On June 11-14, 2013, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your
facilities in Sioux Falls, Iowa.
As a result of the inspection, it appears that you have committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected
and the probable violation is:
1. §195.49 Annual report
Each operator must annually complete and submit DOT Form PHMSA
F 7000-1.1 for each type of hazardous liquid pipeline facility operated at the
end of the previous year. An operator must submit the annual report by June
15 each year, except that for the 2010 reporting year the report must be
submitted by August 15, 2011. A separate report is required for crude oil,
HVL (including anhydrous ammonia), petroleum products, carbon dioxide
pipelines, and fuel grade ethanol pipelines. For each state a pipeline traverses,
an operator must separately complete those sections on the form requiring
information to be reported for each state.



Magellan did not accurately complete all sections of DOT Form PHMSA F7000-1.1. It
was discovered during the inspection that two tanks were not correctly designated as
regulated breakout tanks. Tanks 526 in Sioux Falls, Iowa, and 429 in Alexandria,
Minnesota, were determined to be regulated breakout tanks containing transmix product
which were not previously counted for reporting on the form.
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a
related series of violations. For violations occurring prior to January 4, 2012, the maximum
penalty may not exceed $100,000 per violation per day, with a maximum penalty not to
exceed $1,000,000 for a related series of violations. We have reviewed the circumstances
and supporting documents involved in this case, and have decided not to conduct additional
enforcement action or penalty assessment proceedings at this time. We advise you to
correct the items identified in this letter. Failure to do so will result in Magellan Midstream
Partners, LP being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please
refer to CPF 3-2014-5008W. Be advised that all material you submit in response to this
enforcement action is subject to being made publicly available. If you believe that any
portion of your responsive material qualifies for confidential treatment under 5 U.S.C.
552(b), along with the complete original document you must provide a second copy of the
document with the portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for confidential
treatment under 5 U.S.C. 552(b).
Sincerely,
Linda Daugherty
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
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