{"operation":"document","citation":"CPF 320176003M","title":"DAKOTA MIDSTREAM — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-04-21","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(12), 195.402(c)(13), 195.402(c)(3), 195.402(d)(5), 195.432(b), 195.565, 195.579(a), 195.579(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176003m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176003m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176003m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320176003M","body":"Notice of Amendment involving DAKOTA MIDSTREAM. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(12),  195.402(c)(13),  195.402(c)(3),  195.402(d)(5),  195.432(b),  195.565,  195.579(a),  195.579(d). The case was opened on 2017-04-21 and is reported as closed as of 2017-06-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320176003M_Closure Letter_06062017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176003M/320176003M_Closure%20Letter_06062017.pdf\n\n320176003M_Closure Letter_06062017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176003M/320176003M_Closure%20Letter_06062017_text.pdf\n\n320176003M_Notice of Amendment_04212017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176003M/320176003M_Notice%20of%20Amendment_04212017.pdf\n\n320176003M_Notice of Amendment_04212017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176003M/320176003M_Notice%20of%20Amendment_04212017_text.pdf\n\n320176003M_Operator Response to Notice_05222017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176003M/320176003M_Operator%20Response%20to%20Notice_05222017.pdf\n\n320176003M_Notice of Amendment_04212017_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 21, 2017\nMr. Heath Norman\nCEO\nDakota Midstream\n1400 Wewatta Street, Suite 310\nDenver, CO 80202\nCPF 3-2017-6003M\nDear Mr. Norman:\nOn November 28 through December 2, 2016, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Dakota Midstream’s Operations, Maintenance and Emergency Procedures, near\nAlexandria, North Dakota.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nDakota Midstream’s procedures, as described below:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\n§195.432 Inspection of in-service breakout tanks.\n\n\n\n(b) Each operator must inspect the physical integrity of in-service atmospheric\nand low-pressure steel above-ground breakout tanks according to API Std. 653 …\nDakota Midstream’s procedures did not include the inspection requirements of API\nStd. 653 on breakout tanks. The procedures did not address all the inspection interval\nrequirements of API 653 section 6, including; monthly inspections, in-service\ninspections, ultrasonic inspections, and out-of-service inspections. Dakota\nMidstream’s procedures also did not include the personnel responsible for completing\nthe tank inspections, and the documentation requirements of each inspection.\n2. §195.402(c)(3) – See above\n§195.565 How do I install cathodic protection on breakout tanks?\nAfter October 2, 2000, when you install cathodic protection under §195.563(a) to\nprotect the bottom of an aboveground breakout tank of more than 500 barrels\n79.49m3 capacity built to API Spec 12F … you must install the system in\naccordance with ANSI/API RP 651.\nDakota Midstream’s procedures did not include the requirements to install cathodic\nprotection on above ground breakout tanks. The procedures did not address the\nrequirement that cathodic protection must be installed between the tank bottom and\nnonconductive impermeable liners per API 651 7.2.3.1 (incorporated by reference).\n3. §195.402(c)(3) – See above\n§195.579 What must I do to mitigate internal corrosion?\n(a) General. If you transport any hazardous liquid or carbon dioxide that would\ncorrode the pipeline, you must investigate the corrosive effect of the\nhazardous liquid or carbon dioxide on the pipeline and take adequate steps\nto mitigate internal corrosion.\nDakota Midstream’s procedures did not include the requirements to investigate the\ncorrosive effects of hazardous liquids, specifically crude oil, and taking adequate steps\nfor mitigation of internal corrosion. The procedures also did not describe mitigation\nefforts, such as the use of periodic cleaning pigs in the pipeline system.\n2\n\n\n\n4. §195.402(c)(3) – See above\n§195.579 What must I do to mitigate internal corrosion?\n(d) Breakout tanks. After October 2, 2000, when you install a tank bottom lining\nin an aboveground breakout tank built to API Spec 12F … you must install the\nlining in accordance with API RP 652.\nDakota Midstream’s procedures did not include the installation of tank liners according\nto API RP 652, including the installation of liners for new tanks.\n5. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(12) Establishing and maintaining liaison with fire, police, and other appropriate\npublic officials to learn the responsibility and resources of each government\norganization that may respond to a hazardous liquid or carbon dioxide\nemergency ….\nDakota Midstream’s procedures did not include the requirement to learn the\nresponsibility and resources of each government organization that may respond to a\nhazardous liquid emergency, including how responsibilities and resources will be\nlearned and how this information will be integrated into the Emergency Plans.\n6. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(13) Periodically reviewing the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance and\ntaking corrective action where deficiencies are found.\n3\n\n\n\nDakota Midstream’s procedures did not include periodically reviewing the work done\nby operator personnel to determine effectiveness of the procedures and taking\ncorrective action when deficiencies are found. The procedures did not address the\nfollowing: what personnel and normal operation & maintenance procedures require the\nreview; the defined periods for review; and how the work done by personnel will be\nreviewed.\n7. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(d) Abnormal operation. The manual required by paragraph (a) of this section\nmust include procedures for the following to provide safety when operating\ndesign limits have been exceeded:\n(5) Periodically reviewing the response of operator personnel to determine the\neffectiveness of the procedures controlling abnormal operation and taking\ncorrective action where deficiencies are found.\nDakota Midstream’s procedures did not include periodically reviewing the response of\noperator personnel to determine the effectiveness of the procedures controlling\nabnormal operations and taking corrective action where deficiencies are found.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised 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\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must 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\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged\nin this Notice without further notice to you and to issue an Order Directing Amendment. If\nyour plans or procedures are found inadequate as alleged in this Notice, you may be ordered to\namend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are\nnot contesting this Notice, we propose that you submit your amended procedures to my office\nwithin [number of days] days of receipt of this Notice. This period may be extended by\nwritten request for good cause. Once the inadequacies identified herein have been addressed\nin your amended procedures, this enforcement action will be closed.\n4\n\n\n\nIt is requested (not mandated) that Dakota Midstream maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision\nof plans, procedures) and submit the total to Allan Beshore, Director, Central Region, Pipeline\nand Hazardous Materials Safety Administration. In correspondence concerning this matter,\nplease refer to CPF 3-2017-6003M and, for each document you submit, please provide a copy\nin electronic format whenever possible.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n5\n\n320176003M_Closure Letter_06062017_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 6, 2017\nMr. Heath Norman\nCEO\nDakota Midstream\n1400 Wewatta Street, Suite 310\nDenver, CO 80202\nCPF 3-2017-6003M\nDear Mr. Norman:\nOn November 28 through December 2, 2016, a representative from the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United\nStates Code, conducted an on-site pipeline safety inspection of Dakota Midstream’s\nprocedures near Alexandria, North Dakota. As a result of the inspection, Dakota Midstream\nwas issued a Notice of Amendment on April 21, 2017, which proposed amendment of your\nprocedures.\nDakota Midstream submitted its amended procedures on May 22, 2017. My staff reviewed\nthe amended procedures, and it appears that the inadequacies outlined in this Notice of\nAmendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":10856}