{"operation":"document","citation":"CPF 320176007","title":"DAKOTA MIDSTREAM — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-09-01","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.565, 195.579(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176007.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176007.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320176007","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320176007","body":"Notice of Probable Violation involving DAKOTA MIDSTREAM. PHMSA's enforcement data identifies the cited regulations as 195.565,  195.579(a). The case was opened on 2017-09-01 and is reported as closed as of 2019-06-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320176007_Closure Letter_06062019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Closure%20Letter_06062019.pdf\n\n320176007_Closure Letter_06062019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Closure%20Letter_06062019_text.pdf\n\n320176007_Final Order_04052018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Final%20Order_04052018.pdf\n\n320176007_Final Order_04052018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Final%20Order_04052018_text.pdf\n\n320176007_NOPV PCO_09012017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_NOPV%20PCO_09012017.pdf\n\n320176007_NOPV PCO_09012017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_NOPV%20PCO_09012017_text.pdf\n\n320176007_Operator Response To Notice_10132017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Operator%20Response%20To%20Notice_10132017.pdf\n\n320176007_Final Order_04052018_text.pdf\n\nApril 5, 2018\nMr. Heath Norman\nCo-Chief Executive Officer\nDakota Midstream, LLC\n1400 Wewatta Street, Suite 310\nDenver, Colorado 80202\nRe: CPF No. 3-2017-6007\nDear Mr. Norman:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Dakota Midstream, LLC, to comply with\nthe pipeline safety regulations. When the terms of the compliance order have been completed, as\ndetermined by the Director, Central Region, this enforcement action will be closed. Service of\nthe Final Order by certified mail is effective upon the date of mailing as provided under\n49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Allan Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. David Graham, Project Manager, Dakota Midstream LLC, 1400 Wewatta Street,\nSuite 310, Denver, CO 80202\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 )\nDakota Midstream, LLC, ) CPF No. 3-2017-6007\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom November 28 through December 2, 2016, pursuant to 49 U.S.C. § 60117, a representative\nof the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline\nSafety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of\nDakota Midstream, LLC (DM or Respondent), near Alexandria, North Dakota. DM operates 65\nmiles of oil and gas pipelines in North Dakota.1\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated September 1, 2017, a Notice of Probable Violation and Proposed Compliance\nOrder (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that DM\nhad violated 49 C.F.R. §§ 195.565 and 195.579(a) and proposed ordering Respondent to take\ncertain measures to correct the alleged violations.\nRespondent responded to the Notice by letter dated October 13, 2017 (Response). The company\ndid not contest the allegations of violation but provided information concerning the corrective\nactions it had agreed to complete under the Proposed Compliance Order. Respondent did not\nrequest a hearing and therefore has waived its right to one.\nFINDINGS OF VIOLATION\nIn its Response, DM did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.565, which states:\n§ 195.565 How do I install cathodic protection on breakout tanks?\nAfter October 2, 2000, when you install cathodic protection under\n§195.563(a) to protect the bottom of an aboveground breakout tank of more\nthan 500 barrels 79.49m3 capacity built to API Spec 12F (incorporated by\n1 Dakota Midstream website, available at http://dakota-midstream.com/about/ (last accessed February 1, 2018).\n\n\n\nCPF No. 3-2017-6007\nPage 2\nreference, see §195.3), API Std 620 (incorporated by reference, see §195.3),\nAPI Std 650 (incorporated by reference, see §195.3), or API Std 650's\npredecessor, Standard 12C, you must install the system in accordance with\nANSI/API RP 651 (incorporated by reference, see §195.3). . . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.565 by failing to install cathodic\nprotection (CP) in accordance with ANSI/API Recommended Procedure (RP) 651. Specifically,\nthe Notice alleged that DM failed to install CP on nine breakout tanks located at DM’s Spackler\nStation and two breakout tanks located at the company’s Wheatland Delivery facility. All 11\ntanks were built to API Specification 12F and placed above non-conductive impermeable liners.\nTherefore, the tanks should have been equipped with CP installed between the liner and the tank\nbottom under API RP 651. On-site testing demonstrated that no effective CP was provided for\nthe breakout tanks.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.565 by failing to install CP on\n11 breakout tanks in accordance with ANSI/API RP 651.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.579(a), which states:\n§ 195.579 What must I do to mitigate internal corrosion?\n(a) General. If you transport any hazardous liquid or carbon dioxide\nthat would corrode the pipeline, you must investigate the corrosive effect of\nthe hazardous liquid or carbon dioxide on the pipeline and take adequate\nsteps to mitigate internal corrosion.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.579(a) by failing to take adequate\nsteps to mitigate internal corrosion. Specifically, the Notice alleged that DM failed to install\ninternal linings on nine breakout tanks located at DM’s Spackler Station and two breakout tanks\nlocated at the company’s Wheatland Delivery facility. According to the Notice, the tanks should\nhave been equipped with internal linings under API RP 652 – Linings of Aboveground\nPetroleum Storage Tank Bottoms [incorporated by reference into Part 195, per § 195.579(d)].\nThus, DM allegedly failed to take adequate steps to mitigate internal corrosion on the breakout\ntanks.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.579(a) by failing to take\nadequate steps to mitigate internal corrosion on 11 breakout tanks in accordance with API RP\n652 and 49 C.F.R. § 195.579(d).\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 2 in the Notice for\n\n\n\nCPF No. 3-2017-6007\nPage 3\nviolations of 49 C.F.R. §§ 195.565 and 195.579(a), respectively. Under 49 U.S.C. § 60118(a),\neach person who engages in the transportation of hazardous liquids or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.565 (Item 1), Respondent must install\ncathodic protection for the 11 breakout tanks at its Spackler Station and Wheatland\nDelivery facilities. Respondent must complete this item within 250 days of receipt of\nthis Order.\n2. With respect to the violation of § 195.579(a) (Item 2), Respondent must install\ninternal linings for the 11 breakout tanks at its Spackler Station and Wheatland\nDelivery facilities. Respondent must complete this item within 250 days of receipt of\nthis Order.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nIt is requested that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for\neach day the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay. The\nterms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nApril 5, 2018\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n320176007_Closure Letter_06062019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 6, 2019\nHeath Norman, CEO\nDakota Midstream\n1400 Wewatta Street, Suite 310\nDenver, CO 80202\nRE: CPF 3-2017-6007\nDear Mr. Norman:\nOn April 5, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Dakota Midstream a Final Order in the above-referenced case. This Order\nincluded a Compliance Order. Based on our review of the documentation you provided, it\nhas been determined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to\nthe matters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":11122}