# HAWTHORN OIL TRANSPORTATION (NORTH DAKOTA), INC. — Notice of Amendment

- **operation:** document
- **citation:** CPF 320186003M
- **title:** HAWTHORN OIL TRANSPORTATION (NORTH DAKOTA), INC. — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2018-05-03
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.402(a), 195.402(c)(3), 195.402(e)(2).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320186003m.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320186003m.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320186003m
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320186003M
**body:**

Notice of Amendment involving HAWTHORN OIL TRANSPORTATION (NORTH DAKOTA), INC.. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  195.402(e)(2). The case was opened on 2018-05-03 and is reported as closed as of 2019-03-29. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320186003M_Closure Letter_03292019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320186003M/320186003M_Closure%20Letter_03292019.pdf

320186003M_Closure Letter_03292019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320186003M/320186003M_Closure%20Letter_03292019_text.pdf

320186003M_Notice of Amendment_05032018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320186003M/320186003M_Notice%20of%20Amendment_05032018.pdf

320186003M_Notice of Amendment_05032018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320186003M/320186003M_Notice%20of%20Amendment_05032018_text.pdf

320186003M_Operator Response to Notice_10032018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320186003M/320186003M_Operator%20Response%20to%20Notice_10032018.pdf

320186003M_Closure Letter_03292019_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
March 29, 2019
Mr. Ray Ingle, President and Chief Executive Officer
Hawthorn Oil Transportation (North Dakota), Inc.,
1111 Bagby Sky Lobby 2,
Houston, TX 77002
CPF 3-2018-6003M
Dear Mr. Ingle:
On April 4-6, 2017, a representative from the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an on-
site pipeline safety inspection of Hawthorn’s procedures in Stanley, North Dakota. As a result
of the inspection, Hawthorn was issued a Notice of Amendment on May 3, 2018, which
proposed amendment of your procedures.
Hawthorn submitted its amended procedures on October 3, 2018. My staff reviewed the
amended procedures, and it appears that the inadequacies outlined in this Notice of
Amendment have been corrected.
This letter is to inform you no further action is necessary and this case is now closed. Thank
you for your cooperation.
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration

320186003M_Notice of Amendment_05032018_text.pdf

NOTICE OF AMENDMENT
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
May 3, 2018
Mr. Ray Ingle, President and Chief Executive Officer
Hawthorn Oil Transportation (North Dakota), Inc.,
1111 Bagby Sky Lobby 2,
Houston, TX 77002
CPF 3-2018-6003M
Dear Mr. Ingle:
On April 4-6, 2017 representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected
Hawthorn’s Stanley to Railyard pipeline procedures for operations, maintenance, public
awareness, operator qualifications and integrity management in Stanley, North Dakota.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
Hawthorn’s plans or procedures, as described below:



1. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline system
a manual of written procedures for conducting normal operations and
maintenance activities and handling abnormal operations and emergencies. This
manual shall be reviewed at intervals not exceeding 15 months, but at least once
each calendar year, and appropriate changes made as necessary to insure that
the manual is effective. This manual shall be prepared before initial operations
of a pipeline system commence, and appropriate parts shall be kept at locations
where operations and maintenance activities are conducted.
(b) . . . .
(e) Emergencies. The manual required by paragraph (a) of this section must
include procedures for the following to provide safety when an emergency
condition occurs:
(1) . . . .
(2) Prompt and effective response to a notice of each type emergency,
including fire or explosion occurring near or directly involving a pipeline
facility, accidental release of hazardous liquid or carbon dioxide from a pipeline
facility, operational failure causing a hazardous condition, and natural disaster
affecting pipeline facilities.
Hawthorn’s manual of written procedures for handling emergencies failed to include
procedures for prompt and effective response to a notice of each type emergency.
Specifically, Hawthorn’s emergency response plan failed to include responses for fire,
explosion and operational failure. Hawthorn must amend its emergency response plan to
include these responses.
2. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) . . . .
(c) Maintenance and normal operations. The manual required by paragraph
(a) of this section must include procedures for the following to provide safety
during maintenance and normal operations:
(1) . . . .
(3) Operating, maintaining, and repairing the pipeline system in accordance
with each of the requirements of this subpart and subpart H of this part.
2



Hawthorn’s manual of written procedures for conducting normal operations and maintenance
activities failed to include procedures for operating, maintaining, and repairing the pipeline
system in accordance with each of the requirements of subpart F and subpart H of 49 CFR
195. Specifically, Hawthorn’s procedures failed to include the critical elements for operating
and maintaining its pipeline facilities. During an operator qualification inspection,
PHMSA’s inspector determined that the following elements were not in Hawthorn’s
procedures:
Operator Qualification Field Inspection - Overpressure Valve Relief Pressure Testing
 The 5-minute test period at 90 % of set point is not in the procedure.
 Per the SME, procedure step 18, which says to average the last 3 pop off pressure
readings to determine whether within the 3 % tolerance, is incorrect.
Hawthorn submitted an amended procedure on April 20, 2017, that satisfactorily addresses
the above issues.
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed
as part of this Notice is a document entitled Response Options for Pipeline Operators in
Compliance Proceedings. Please refer to this document and note the response options. 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).
Following the receipt of this Notice, you have 30 days to submit written comments, revised
procedures, or a request for a hearing under §190.211. If you do not respond within 30 days
of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in
this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as
alleged in this Notice without further notice to you and to issue an Order Directing
Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you
may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. §
190.206). If you are not contesting this Notice, we propose that you submit your amended
procedures to my office within [number of days] days of receipt of this Notice. This period
may be extended by written request for good cause. Once the inadequacies identified herein
have been addressed in your amended procedures, this enforcement action will be closed.
3



It is requested (not mandated) that [Company name] maintain documentation of the safety
improvement costs associated with fulfilling this Notice of Amendment (preparation/revision
of plans, procedures) and submit the total to [Region Director's name], Director, [Region],
Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this
matter, please refer to CPF 3-2018-6003M and, for each document you submit, please
provide a copy in electronic format whenever possible.
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings
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