# DAKOTA MIDSTREAM — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

320176007_Closure Letter_06062019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Closure%20Letter_06062019.pdf

320176007_Closure Letter_06062019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Closure%20Letter_06062019_text.pdf

320176007_Final Order_04052018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Final%20Order_04052018.pdf

320176007_Final Order_04052018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Final%20Order_04052018_text.pdf

320176007_NOPV PCO_09012017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_NOPV%20PCO_09012017.pdf

320176007_NOPV PCO_09012017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_NOPV%20PCO_09012017_text.pdf

320176007_Operator Response To Notice_10132017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320176007/320176007_Operator%20Response%20To%20Notice_10132017.pdf

320176007_Final Order_04052018_text.pdf

April 5, 2018
Mr. Heath Norman
Co-Chief Executive Officer
Dakota Midstream, LLC
1400 Wewatta Street, Suite 310
Denver, Colorado 80202
Re: CPF No. 3-2017-6007
Dear Mr. Norman:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by Dakota Midstream, LLC, to comply with
the pipeline safety regulations. When the terms of the compliance order have been completed, as
determined by the Director, Central Region, this enforcement action will be closed. Service of
the Final Order by certified mail is effective upon the date of mailing as provided under
49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Allan Beshore, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. David Graham, Project Manager, Dakota Midstream LLC, 1400 Wewatta Street,
Suite 310, Denver, CO 80202
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Dakota Midstream, LLC, ) CPF No. 3-2017-6007
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
From November 28 through December 2, 2016, pursuant to 49 U.S.C. § 60117, a representative
of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline
Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and records of
Dakota Midstream, LLC (DM or Respondent), near Alexandria, North Dakota. DM operates 65
miles of oil and gas pipelines in North Dakota.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated September 1, 2017, a Notice of Probable Violation and Proposed Compliance
Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that DM
had violated 49 C.F.R. §§ 195.565 and 195.579(a) and proposed ordering Respondent to take
certain measures to correct the alleged violations.
Respondent responded to the Notice by letter dated October 13, 2017 (Response). The company
did not contest the allegations of violation but provided information concerning the corrective
actions it had agreed to complete under the Proposed Compliance Order. Respondent did not
request a hearing and therefore has waived its right to one.
FINDINGS OF VIOLATION
In its Response, DM did not contest the allegations in the Notice that it violated 49 C.F.R. Part
195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.565, which states:
§ 195.565 How do I install cathodic protection on breakout tanks?
After October 2, 2000, when you install cathodic protection under
§195.563(a) to protect the bottom of an aboveground breakout tank of more
than 500 barrels 79.49m3 capacity built to API Spec 12F (incorporated by
1 Dakota Midstream website, available at http://dakota-midstream.com/about/ (last accessed February 1, 2018).



CPF No. 3-2017-6007
Page 2
reference, see §195.3), API Std 620 (incorporated by reference, see §195.3),
API Std 650 (incorporated by reference, see §195.3), or API Std 650's
predecessor, Standard 12C, you must install the system in accordance with
ANSI/API RP 651 (incorporated by reference, see §195.3). . . .
The Notice alleged that Respondent violated 49 C.F.R. § 195.565 by failing to install cathodic
protection (CP) in accordance with ANSI/API Recommended Procedure (RP) 651. Specifically,
the Notice alleged that DM failed to install CP on nine breakout tanks located at DM’s Spackler
Station and two breakout tanks located at the company’s Wheatland Delivery facility. All 11
tanks were built to API Specification 12F and placed above non-conductive impermeable liners.
Therefore, the tanks should have been equipped with CP installed between the liner and the tank
bottom under API RP 651. On-site testing demonstrated that no effective CP was provided for
the breakout tanks.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.565 by failing to install CP on
11 breakout tanks in accordance with ANSI/API RP 651.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.579(a), which states:
§ 195.579 What must I do to mitigate internal corrosion?
(a) General. If you transport any hazardous liquid or carbon dioxide
that would corrode the pipeline, you must investigate the corrosive effect of
the hazardous liquid or carbon dioxide on the pipeline and take adequate
steps to mitigate internal corrosion.
The Notice alleged that Respondent violated 49 C.F.R. § 195.579(a) by failing to take adequate
steps to mitigate internal corrosion. Specifically, the Notice alleged that DM failed to install
internal linings on nine breakout tanks located at DM’s Spackler Station and two breakout tanks
located at the company’s Wheatland Delivery facility. According to the Notice, the tanks should
have been equipped with internal linings under API RP 652 – Linings of Aboveground
Petroleum Storage Tank Bottoms [incorporated by reference into Part 195, per § 195.579(d)].
Thus, DM allegedly failed to take adequate steps to mitigate internal corrosion on the breakout
tanks.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.579(a) by failing to take
adequate steps to mitigate internal corrosion on 11 breakout tanks in accordance with API RP
652 and 49 C.F.R. § 195.579(d).
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1 and 2 in the Notice for



CPF No. 3-2017-6007
Page 3
violations of 49 C.F.R. §§ 195.565 and 195.579(a), respectively. Under 49 U.S.C. § 60118(a),
each person who engages in the transportation of hazardous liquids or who owns or operates a
pipeline facility is required to comply with the applicable safety standards established under
chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,
Respondent is ordered to take the following actions to ensure compliance with the pipeline safety
regulations applicable to its operations:
1. With respect to the violation of § 195.565 (Item 1), Respondent must install
cathodic protection for the 11 breakout tanks at its Spackler Station and Wheatland
Delivery facilities. Respondent must complete this item within 250 days of receipt of
this Order.
2. With respect to the violation of § 195.579(a) (Item 2), Respondent must install
internal linings for the 11 breakout tanks at its Spackler Station and Wheatland
Delivery facilities. Respondent must complete this item within 250 days of receipt of
this Order.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
It is requested that Respondent maintain documentation of the safety improvement costs
associated with fulfilling this Compliance Order and submit the total to the Director. It is
requested that these costs be reported in two categories: (1) total cost associated with
preparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for
each day the violation continues or in referral to the Attorney General for appropriate relief in a
district court of the United States.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this
Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and
meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective
action, remain in effect unless the Associate Administrator, upon request, grants a stay. The
terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R.
§ 190.5.
April 5, 2018
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

320176007_Closure Letter_06062019_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
June 6, 2019
Heath Norman, CEO
Dakota Midstream
1400 Wewatta Street, Suite 310
Denver, CO 80202
RE: CPF 3-2017-6007
Dear Mr. Norman:
On April 5, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Dakota Midstream a Final Order in the above-referenced case. This Order
included a Compliance Order. Based on our review of the documentation you provided, it
has been determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to
the matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
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