{"operation":"document","citation":"CPF 320185004W","title":"DAKOTA GASIFICATION COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-05-29","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.452(b)(5), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185004w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185004w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320185004w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320185004W","body":"Warning Letter involving DAKOTA GASIFICATION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.452(b)(5),  195.589(c). The case was opened on 2018-05-29 and is reported as closed as of 2018-05-29. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320185004W_Warning Letter_05292018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185004W/320185004W_Warning%20Letter_05292018.pdf\n\n320185004W_Warning Letter_05292018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320185004W/320185004W_Warning%20Letter_05292018_text.pdf\n\n320185004W_Warning Letter_05292018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 29, 2018\nMr. David Sauer\nSr. Vice President & COO\nDakota Gasification Company\n1717 East Interstate Avenue\nBismarck ND 58503-0564\nCPF 3-2018-5004W\nDear Mr. Sauer:\nOn January 30–February 3, 2017, February 6-10, 2017, February 13-17, 2017, March 27-31,\n2017 and May 8-12, 2017, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.),\ninspected your Dakota Gasification Company’s (DGC) carbon dioxide pipeline records and\nfield assets in Beulah, North Dakota.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items\ninspected and the probable violations are:\n\n\n\n1. 2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) 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.\nDuring the OQ Field Inspection, the technicians failed to follow DGC’s written\nprocedures for conducting normal operations and maintenance activities and handling\nabnormal operations and emergencies. DGC’s procedure 74-012 allows for accepting\nhigh pressure (HP) Accumulator pressure readings between 2500-2600 psig. DGC’s\ntechnician accepted an high pressure (HP) Accumulator pressure reading on the 14-\ninch line of 2610 psig due to an oral miscommunication. The two technicians\nperforming the task set the pressure range as 2600-2700 psig rather than the 2500-2600\npsig permitted in the procedure.\n§195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(b) What program and practices must operators use to manage pipeline integrity?\nEach operator of a pipeline covered by this section must:\n(1) Develop a written integrity management program that addresses the\nrisks on each segment of pipeline in the first column of the following table\nnot later than the date in the second column:\nPipeline Date\nCategory 1 March 31, 2002.\nCategory 2 February 18, 2003.\nCategory 3 1 year after the date the pipeline begins operation.\n(2) . . . .\n(5) Implement and follow the program. . .\nDGC failed to follow its integrity management plan (IMP). Specifically, DGC did not\nconduct the annual preventative and mitigative measure analysis and document its\nfindings on form PLR–68 as required by their IMP plan. DGC was unable to produce\ncompleted PLR–68 forms to show compliance with their IMP.\n2\n\n\n\n3. §195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(b) What program and practices must operators use to manage pipeline integrity?\nEach operator of a pipeline covered by this section must:\n(1) Develop a written integrity management program that addresses the\nrisks on each segment of pipeline in the first column of the following table\nnot later than the date in the second column:\nPipeline Date\nCategory 1 March 31, 2002.\nCategory 2 February 18, 2003.\nCategory 3 1 year after the date the pipeline begins operation.\n(2) . . . .\n(5) Implement and follow the program.\nDGC did not follow its pipeline IMP. Section IX-A version (January 2016) of the\nDGC IMP requires an annual evaluation of IMP effectiveness to be recorded on form\nPLR-66 – Annual Integrity Evaluation for Carbon Dioxide Pipelines. DGC was\nunable to produce a completed PLR-66 form documenting the required review.\n4. §195.589 What corrosion control information do I have to maintain?\n(a) . . . .\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by this\nsubpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that corrosion requiring control measures does not exist. You must\nretain these records for at least 5 years, except that records related to Secs.\n195.569, 195.573(a) and (b), and 195.579(b)(3) and (c) must be retained for as long\nas the pipeline remains in service.\nDCG did not maintain a records of its investigation and repair to its pipeline. DGC\nwas unable to provide a work order demonstrating completion of the 2013 MLV 1\nrepair to pipe to soil interface identified in an inspection report reviewed by PHMSA.\nThis represents one missing record of five reviewed.\nAs of April 27, 2017, under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a\ncivil penalty not to exceed $209,002 per violation per day the violation persists up to a\nmaximum of $2,090,022 for a related series of violations. We have reviewed the\ncircumstances and supporting documents involved in this case, and have decided not to\nconduct additional enforcement action or penalty assessment proceedings at this time. We\n3\n\n\n\nadvise you to correct the items identified in this letter. Failure to do so will result in Dakota\nGasification Company being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 3-2018-5004W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any portion\nof your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along\nwith the complete original document you must provide a second copy of the document with\nthe portions you believe qualify for confidential treatment redacted and an explanation of why\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\n4","truncated":false,"body_characters":6880}