# MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320195007
- **title:** MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-10-11
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.402(a), 195.428(a).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195007.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195007.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195007
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320195007
**body:**

Notice of Probable Violation involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.428(a). The case was opened on 2019-10-11 and is reported as closed as of 2021-11-19. Proposed civil penalty: $118,000. Assessed civil penalty: $97,400. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320195007_Closure Letter_11192021_(16-152632S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_Closure%20Letter_11192021_(16-152632S).pdf

320195007_Closure Letter_11192021_(16-152632S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_Closure%20Letter_11192021_(16-152632S)_text.pdf

320195007_Final Order_05142021_(16-152632S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_Final%20Order_05142021_(16-152632S).pdf

320195007_Final Order_05142021_(16-152632S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_Final%20Order_05142021_(16-152632S)_text.pdf

320195007_NOPV PCP PCO_10112019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_NOPV%20PCP%20PCO_10112019.pdf

320195007_NOPV PCP PCO_10112019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_NOPV%20PCP%20PCO_10112019_text.pdf

320195007_Operator Response to Notice_12162019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195007/320195007_Operator%20Response%20to%20Notice_12162019.pdf

320195007_NOPV PCP PCO_10112019_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
October 11, 2019
Mr. Michael Pearson
VP Operations & Asset Integrity
Magellan Pipeline Company, LP
One Williams Center, OTC-9
Tulsa, OK 74172
CPF 3-2019-5007
Dear Mr. Pearson:
On various dates between May 16th 2016 and January 25th 2017, a representative of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Central Region of the
Office of Pipeline Safety (OPS) & Minnesota Office of Pipeline Safety pursuant to Chapter
601 of 49 United States Code conducted an onsite pipeline safety inspection of your
procedures at your Tulsa, OK headquarters and records reviews at various locations in Kansas,
Oklahoma, Iowa, Illinois, Minnesota, Nebraska, South Dakota and North Dakota. Field
reviews of your facilities were done at various locations in Wisconsin, Minnesota, Kansas,
Iowa, Illinois, Nebraska, South Dakota and North Dakota.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The items
inspected and the probable violations are:



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.
On multiple occasions, Magellan did not follow its O&M manual by failing to make
necessary records and maps available to personnel for safe operation and maintenance of
the pipeline. PHMSA inspectors observed the function of remotely operated valves that
involved control room and field personnel. The valves could not be safely operated,
because maps and records were not suitably available for use by operating and
maintenance personnel during the performance of these operations following the
requirements of 195.402 (c)(1).
On July 20th, 2016, at Bateman Station in Wisconsin, PHMSA performed an Operator
Qualification Task Protocol 9 Evaluation on a remote motor operated valve task. As part
of this task the valve was to be remotely operated by the control room. During the
performance of this task, involving the field personnel and the pipeline controller, the
wrong valve was opened.
On September 27th, 2016, at Rockford Station in Illinois, Magellan field personnel called
the control room to operate a remote operated valve. The field personnel and the
controller had trouble identifying which valve was to be safely operated.
On January 25th, 2017, at Magellan’s Control Room, a pipeline controller was unable to
produce maps or records that could properly identify the location of valves to field
personnel.
2



2. § 195.428 Overpressure safety devices and overfill protection systems.
(a) Except as provided in paragraph (b) of this section, each operator shall, at
intervals not exceeding 15 months, but at least once each calendar year, or in the
case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7 1/2
months, but at least twice each calendar year, inspect and test each pressure limiting
device, relief valve, pressure regulator, or other item of pressure control equipment
to determine that it is functioning properly, is in good mechanical condition, and is
adequate from the standpoint of capacity and reliability of operation for the service
in which it is used.
Magellan did not inspect overfill protection on breakout tanks used to store Highly
Volatile Liquids (HVL) at least twice a year not to exceed 7 ½ months. HVL tanks 2021,
2022, 2023 and 2024 located at Magellan’s Des Moines, Iowa terminal were put in to
service in 2009. Records presented to inspectors showed that no inspection of the overfill
protection system was performed after the tanks were put into service until June 30, 2016.
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to
exceed $213,268 per violation per day the violation persists, up to a maximum of $2,132,679
for a related series of violations. For violation occurring on or after November 2, 2015 and
before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per
day, with a maximum penalty not to exceed $2,090,022. For violations occurring prior to
November 2, 2015, the maximum penalty may not exceed $200,000 per violation per day, with
a maximum penalty not to exceed $2,000,000 for a related series of violations. The
Compliance Officer has reviewed the circumstances and supporting documentation involved in
the above probable violation(s) and has recommended that you be preliminarily assessed a civil
penalty of $118,000 as follows:
Item number PENALTY
1 $51,400
2 $66,600
Proposed Compliance Order
With respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials
Safety Administration proposes to issue a Compliance Order to Magellan Pipeline Company,
LP1. Please refer to the Proposed Compliance Order, which is enclosed and made a part of
this Notice.
3



Response to this Notice
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. All
material submit in response to this enforcement action may be 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). 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 a Final Order.
In your correspondence on this matter, please refer to CPF 3-2019-5007 and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Allan C. Beshore, PE
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
Enclosure: Proposed Compliance Order
Response Options for Pipeline Operators in Enforcement Proceedings
4



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Magellan Pipeline Company, LP a Compliance
Order incorporating the following remedial requirements to ensure the compliance of Magellan
Pipeline Company, LP with the pipeline safety regulations:
1. In respect to Item Number 1 of the Notice, Magellan must develop adequate
records needed for field and control room personnel to positively identify the
location valves necessary for the safe operation of the pipeline.
2. 3. Within sixty (60) days after receipt of a Final Order, Magellan must submit
documentation to the Director, Central Region, demonstrating that Item 1 and
have been completed.
It is requested (not mandated) that Magellan Pipeline Company, LP maintain
documentation of the safety improvement costs associated with fulfilling this
Compliance Order and submit the total to Allan Beshore, Director, Central
Region, Pipeline and Hazardous Materials Safety Administration. 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.
5

320195007_Final Order_05142021_(16-152632S)_text.pdf

May 14, 2021
VIA ELECTRONIC MAIL TO: mike.mears@magellanlp.com
Mr. Michael N. Mears
President and Chief Executive Officer
Magellan Midstream Partners, LP
One Williams Center
PO Box 22186
Tulsa, Oklahoma 74172-2186
Re: CPF No. 3-2019-5007
Dear Mr. Mears:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a reduced civil penalty of $97,400, and specifies actions that need to be taken
by your subsidiary, Magellan Pipeline Company, LP, to comply with the pipeline safety
regulations. The penalty payment terms are set forth in the Final Order. When the civil penalty
has been paid and the terms of the compliance order completed, as determined by the Director,
Central Region, this enforcement action will be closed. Service of the Final Order by electronic
mail is effective upon the date of transmission 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. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Jason Smith, Vice President, Asset Integrity, Magellan Pipeline Company, LP
jason.smith@magellanlp.com
Mr. Mark Materna, Director, Pipeline Integrity, Magellan Pipeline Company, LP
mark.materna@magellanlp.com
CONFIRMATION OF 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 )
Magellan Pipeline Company, LP ) CPF No. 3-2019-5007
a subsidiary of Magellan Midstream Partners, LP )
)
)
)
Respondent. )
________________________________________________)
FINAL ORDER
Between May 16, 2016, and January 25, 2017, 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 Magellan
Pipeline Company, LP (Magellan or Respondent) in Oklahoma, Kansas, Iowa, Illinois,
Minnesota, Nebraska, South Dakota, North Dakota, and Wisconsin. Magellan is a subsidiary of
Magellan Midstream Partners, LP, which owns and operates approximately 12,000 miles of
liquids pipelines throughout the United States.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated October 11, 2019, a Notice of Probable Violation, Proposed Civil Penalty, and
Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice
proposed finding that Magellan had violated 49 C.F.R. §§ 195.402(a) and 195.428(a) and
proposed assessing a civil penalty of $118,000 for the alleged violations. The Notice also
proposed ordering Respondent to take certain measures to correct the alleged violations.
After requesting and receiving an extension of time to respond, Magellan Midstream Partners,
LP, on behalf of its subsidiary, responded to the Notice by letter dated December 16, 2019
(Response). The company contested one allegation of violation, offered additional information
in response to the Notice, requested that the proposed civil penalty be reduced, and requested the
withdrawal of the compliance order. Respondent did not request a hearing and therefore has
waived its right to one.
1 Liquid Pipeline Tariffs, Magellan Midstream Partners, LP, available at
https://www magellanlp.com/WhatWeDo/LiquidPipelineTariffs.aspx (Last accessed February 25, 2021).



CPF 3-2019-5007
Page 2
FINDINGS OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:
§ 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 . . . .
(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) Making construction records, maps, and operating history available
as necessary for safe operation and maintenance.
The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its
manual of written procedures for conducting normal operations and maintenance activities and
handling abnormal operations and emergencies. Specifically, the Notice alleged that on multiple
occasions, Magellan failed to make necessary records and maps available to personnel for the
safe operation and maintenance of its pipeline, as required by § 195.402(c)(1), as well as its
operation and maintenance (O&M) manual. The Notice alleged that as a result, remotely
operated valves could not be safely operated because maps and records were not suitably
available for use by personnel during the performance of these operations.
The Notice specified three instances when the PHMSA inspector observed this alleged violation:
(1) on July 20, 2016, at the Bateman Station in Wisconsin when Magellan personnel opened the
wrong valve during an operator qualification task protocol evaluation; (2) on September 27,
2016, at Rockford Station in Illinois when Magellan field personnel and control room operator
had trouble identifying a remote operated valve; and (3) on January 25, 2017, at Magellan’s
Control Room when a pipeline controller was unable to produce maps or records that could
properly identify the location of valves to field personnel.
In its response, Magellan did not contest the allegation of violation that occurred on July 20,
2016, at Bateman Station. However, Magellan contested the allegations referenced on
September 27, 2016, at Rockford Station, and January 25, 2017, at the Magellan Control Room.
Magellan claimed that the facts in the Notice and the Violation Report do not prove that a
violation occurred on these dates. Concerning the September 27, 2016 allegation of violation,
Magellan argued that the PHMSA inspector requested that Magellan operate the mainline valve



CPF 3-2019-5007
Page 3
by calling the Magellan Control Room and requesting that the valve be opened. Magellan
claimed that the local Magellan representative described the valve to the Controller in
Magellan’s Control Room to ensure the correct valve was operated. Magellan also noted that
PHMSA records for the September 27, 2016 inspection included the following note: “Operated
the valve remotely and local.”
Regarding the January 25, 2017 allegation of violation, Magellan argued that during an
impromptu visit to the Control Room, the PHMSA inspector asked if the valve numbering on the
supervisory control and data acquisition (SCADA) screen matched the numbering in the field
and inquired if the Magellan representative had access to the piping and instrumentation
diagrams (P&IDs) to confirm specific valve locations. The representative indicated that he did
not. In its Response, Magellan explained that all Magellan employees have access to maps and
records, including P&IDs, through its Intranet Webpage, which is available in the Control Room.
However, controllers in the Control Room are not typically expected to access P&IDs, as other
Magellan programs and processes are in place to ensure accurate SCADA screens and
nomenclature to reduce the complexity of operations for controllers.
Upon review of the additional information provided by Magellan, pursuant to § 190.209(b)(7),
the Director provided a written evaluation of the response material and recommended that the
September 27, 2016 Rockford Station and the January 25, 2017 Magellan Control Room
instances of violation be withdrawn.2 After considering the additional information and
explanations provided by Magellan, I agree. However, as noted above, the allegation of
violation occurring on July 20, 2016, at Bateman Station in Wisconsin was uncontested.
Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.
§ 195.402(a) by failing to follow its manual of written procedures for conducting normal
operations and maintenance activities and handling abnormal operations and emergencies on
July 20, 2016, at the Bateman Station in Wisconsin. The September 27, 2016 Rockford Station
and the January 25, 2017 Magellan Control Room instances of violation are hereby withdrawn.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a), which states:
§ 195.428 Overpressure safety devices and overfill protection systems.
(a) Except as provided in paragraph (b) of this section, each operator
shall, at intervals not exceeding 15 months, but at least once each calendar
year, or in the case of pipelines used to carry highly volatile liquids, at
intervals not to exceed 7 ½ months, but at least twice each calendar year,
inspect and test each pressure limiting device, relief valve, pressure
regulator, or other item of pressure control equipment to determine that it is
functioning properly, is in good mechanical condition, and is adequate from
the standpoint of capacity and reliability of operation for the service in
which it is used.
The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test
2 Region Recommendation, at 2 (on file with PHMSA).



CPF 3-2019-5007
Page 4
each pressure limiting device, relief valve, pressure regulator, or other item of pressure control
equipment to determine that it is functioning properly, is in good mechanical condition, and is
adequate from the standpoint of capacity and reliability of operation for the service in which it is
used, at intervals not exceeding 7 ½ months, but at least twice each calendar year, for pipelines
used to carry highly volatile liquids (HVL). Specifically, the Notice alleged that Magellan did
not inspect overfill protection on breakout tanks used to store HVL at least twice a year, with
intervals not to exceed 7 ½ months. The Notice alleged that four HVL tanks located at
Magellan's Des Moines, Iowa terminal were put into service in 2009, yet records presented to the
PHMSA inspector showed that no inspection of the overfill protection system was performed
after the tanks were put into service until June 30, 2016.3
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. § 195.428(a) by failing to inspect and
test the overfill protection system on four breakout tanks used to store HVL to determine that it
is functioning properly, is in good mechanical condition, and is adequate from the standpoint of
capacity and reliability of operation for the service in which it is used, at intervals not exceeding
7 ½ months, but at least twice each calendar year.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
ASSESSMENT OF PENALTY
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any
related series of violations.4 In determining the amount of a civil penalty under 49 U.S.C.
§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that
the penalty may have on its ability to continue doing business; the good faith of Respondent in
attempting to comply with the pipeline safety regulations; and self-disclosure or actions to
correct a violation prior to discovery by PHMSA. In addition, I may consider the economic
benefit gained from the violation without any reduction because of subsequent damages, and
such other matters as justice may require. The Notice proposed a total civil penalty of $118,000
for the violations cited above.
Item 1: The Notice proposed a civil penalty of $ 51,400 for Respondent’s violation of 49 C.F.R.
§ 195.402(a), for failing to follow its manual of written procedures for making construction
records, maps, and operating history available as necessary for safe operation and maintenance.
As explained in detail above, Magellan contested two of the three instances of violation and
based on the additional information provided, those two instances have been withdrawn.
Regarding the civil penalty, Magellan also argued that the history of prior offenses should be
3 The four tanks are identified as 2021, 2022, 2023, and 2024.
4 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.



CPF 3-2019-5007
Page 5
corrected because six of the eight prior offenses listed in the Violation Report occurred outside
of the five-year period prior to the date the Notice was issued. Having reviewed the information,
I agree. Accordingly, I find that the record supports a reduction in the number of instances of
violation from three to one, as well as reduction in the number of prior offenses from eight
findings of violation to two.
Based upon the foregoing, I assess Respondent a reduced civil penalty of $38,000 for the
violation of 49 C.F.R. § 195.402(a).
Item 2: The Notice proposed a civil penalty of $66,600 for Respondent’s violation of 49 C.F.R.
§ 195.428(a), for failing to inspect and test the overfill protection system on four breakout tanks
used to store HVL at intervals not exceeding 7 ½ months, but at least twice each calendar year.
Magellan did not contest this allegation of violation but similarly argued that the history of prior
offenses should be corrected because six of the eight prior offenses listed occurred outside of the
five-year period prior to the date the Notice was issued. Once again, having reviewed the
information, I agree. Accordingly, I find that the record supports a reduction in the number of
prior offenses from eight findings of violation to two.
Based upon the foregoing, I assess Respondent a reduced civil penalty of $59,400 for violation
of 49 C.F.R. § 195.428(a).
In summary, having reviewed the record and considered the assessment criteria for each of the
Items cited above, I assess Respondent a total reduced civil penalty of $97,400.
Payment of the civil penalty must be made within 20 days of service. Federal regulations (49
C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike
Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.
The Financial Operations Division telephone number is (405) 954-8845.
Failure to pay the $97,400 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49
C.F.R. § 195.402(a). 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.



CPF 3-2019-5007
Page 6
With regard to the violation of § 195.402(a) (Item 1), Respondent requested that the compliance
order be withdrawn because the company has already implemented the requested corrective
action. Magellan stated that “[a]s part of the ongoing dialogue during the 2016 inspection,
Magellan implemented corrective actions regarding the requirements for remote controlled valve
identification and physical tagging of the asset.” Magellan contended that these requirements
were incorporated into its procedure 7.13-ADM-1035, Mainline Valve Inspection Procedure, a
copy of which was provided to PHMSA.
Pursuant to § 190.209(b)(7), the Director provided a written evaluation of the response material
submitted by Respondent and stated he did not find the provided information adequate to satisfy
the proposed compliance order.5 Specifically, the Director explained that Magellan needs to
provide its O&M Form 07-FORM-1035 for all mainline valves at the Bateman Station necessary
for the safe operation of the pipeline, within the scope of the inspection, to document that it has
followed its O&M procedure 7.13-ADM-1035 Sections 3.17, 3.1.18.2.1 and 3.1.19.1.1.6
While I appreciate Magellan’s early efforts to comply with the Compliance Order by revising
and providing its Mainline Valve Inspection Procedure, the Compliance Order’s focus is on the
development of records needed for field and control room personnel to positively identify the
location of valves; it did not request revised procedures. Since Magellan has not provided any
records field and control room personnel will use to positively identify the location of valves, the
Compliance Order is not withdrawn as set forth below.
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 § 195.402(a) (Item 1), Respondent must develop
adequate records needed for field and control room personnel to positively identify
the location valves necessary for the safe operation of the pipeline.
2. Within sixty (60) days after receipt of a Final Order, Magellan must submit
documentation to the Director, Central Region, demonstrating that Item 1 and have
been completed.
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.
PHMSA requests 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.
5 Region Recommendation, at 3 (on file with PHMSA).
6 Id.



CPF 3-2019-5007
Page 7
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 filing of a petition automatically stays
the payment of any civil penalty assessed. The other 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.
May 14, 2021
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

320195007_Closure Letter_11192021_(16-152632S)_text.pdf

VIA ELECTRONIC MAIL: Mike.Mears@magellanlp.com, Jason.Smith@magellanlp.com and
Mark.Materna@magellanlp.com
November 19, 2021
Mr. Michael N. Mears
President and Chief Executive Officer
Magellan Midstream Partners, LP
One Williams Center
PO Box 22186
Tulsa, Oklahoma 74172-2186
Re: CPF No. 3-2019-5007
Dear Mr. Mears:
On May 14, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to
Magellan Pipeline Company, LP a Final Order in the above-referenced case. This Order included a
Compliance Order and Civil Penalty assessment. Based on our review of the documentation you
provided and confirmation of payment of the civil penalty, 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,
Gregory A. Ochs
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Cc: Jason Smith VP Asset Integrity, jason.smith@magellanlp.com
Mark Materna, Director Pipeline Integrity, mark.materna@magellanlp.com
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