# WOLVERINE PIPELINE CO — Notice of Amendment

- **operation:** document
- **citation:** CPF 320195015M
- **title:** WOLVERINE PIPELINE CO — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-04-11
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.402(a), 195.402(c)(3), 195.402(d)(1), 195.402(d)(2), 195.420(a), 195.452(f)(3), 195.452(f)(4), 195.452(g), 195.452(h)(1), 195.559(a).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195015m.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320195015m
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320195015M
**body:**

Notice of Amendment involving WOLVERINE PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  195.402(d)(1),  195.402(d)(2),  195.420(a),  195.452(f)(3),  195.452(f)(4),  195.452(g),  195.452(h)(1),  195.559(a). The case was opened on 2019-04-11 and is reported as closed as of 2021-07-20. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320195015M_Closure Letter_07202021_(16-155088S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Closure%20Letter_07202021_(16-155088S).pdf

320195015M_Closure Letter_07202021_(16-155088S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Closure%20Letter_07202021_(16-155088S)_text.pdf

320195015M_Notice of Amendment_04112019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Notice%20of%20Amendment_04112019.pdf

320195015M_Notice of Amendment_04112019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Notice%20of%20Amendment_04112019_text.pdf

320195015M_Operator Post-Hearing Submission_01302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Operator%20Post-Hearing%20Submission_01302020.pdf

320195015M_Operator Pre-Hearing Submissions_10252019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Operator%20Pre-Hearing%20Submissions_10252019.pdf

320195015M_Operator Response to Notice and Request for Hearing_07222019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing_07222019.pdf

320195015M_Order Directing Amendment_09032020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Order%20Directing%20Amendment_09032020.pdf

320195015M_Order Directing Amendment_09032020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_Order%20Directing%20Amendment_09032020_text.pdf

320195015M_PHC Hearing Scheduled_08272019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320195015M/320195015M_PHC%20Hearing%20Scheduled_08272019.pdf

320195015M_Closure Letter_07202021_(16-155088S)_text.pdf

VIA ELECTRONIC MAIL TO: saul flota@wplc.com tom morneau@wplc.com
Matthew_Dunne@wplco.com Steve_Iseminger@wplco.com
July 20, 2021
Mr. Saul Flota
President
Wolverine Pipe Line Company
8075 Creekside Drive, Suite 210
Portage, Michigan 49024
CPF 3-2019-5015M
Dear Mr. Flota:
On May 22, 2017 through July 20, 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 Wolverine PipeLine Company procedures in
Illinois, Imdiana, and Michigan. As a result of the inspection, Wolverine Pipe Line Company was
issued an Order Directing Amendment on September 3, 2020, which ordered amendments of your
procedures.
Wolverine Pipe Line Company submitted final amended procedures on September 18, 2020. My
staff reviewed the amended procedures, and it appears that the inadequacies outlined in this Order
Directing 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,
Gregory A. Ochs
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
cc: Thomas Morneau, General Counsel (tom_morneau@wplc.com)
Matthew Dunne, VP and Manager, Matthew_Dunne@wplco.com
Steve Iseminger, DOT Compliance, Steve_Iseminger@wplco.com

320195015M_Order Directing Amendment_09032020_text.pdf

September 3, 2020
VIA ELECTRONIC MAIL TO: saul flota@wplc.com
Mr. Saul Flota
President
Wolverine Pipe Line Company
8075 Creekside Drive, Suite 210
Portage, Michigan 49024
Re: CPF No. 3-2019-5015M
Dear Mr. Flota:
Enclosed please find the Order Directing Amendment issued in the above-referenced case to
Wolverine Pipe Line Company. It makes findings of inadequate procedures, withdraws one
allegation, and requires that Wolverine amend certain portions of its operating and maintenance
procedures. When the amendment of procedures has been completed, as determined by the
Director, Central Region, this enforcement action will be closed. Service of the 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. Thomas Morneau, General Counsel, Wolverine Pipe Line Company,
tom_morneau@wplc.com
Mr. Vince Murchison, Esq., Counsel for Respondent, Murchison Law Firm, PLLC,
vince.murchison@pipelinelegal.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 )
Wolverine Pipe Line Company, ) CPF No. 3-2019-5015M
)
)
)
Respondent. )
____________________________________)
ORDER DIRECTING AMENDMENT
From May through July 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 inspection of the procedures, records, and facilities of Wolverine Pipe Line
Company (Wolverine or Respondent), in Illinois, Indiana, and Michigan. Wolverine has
headquarters in Portage, Michigan. The pipeline system consists of 700 miles that transports
refined products, including gasoline and diesel fuel, from Illinois to Michigan.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated April 11, 2019, a Notice of Amendment (Notice). In accordance with 49 C.F.R.
§ 190.206, the Notice proposed finding that certain of Wolverine’s plans and procedures were
inadequate to assure safe operation and proposed that Respondent amend its procedures for
operations, maintenance, and emergencies.
The Murchison Law Firm, on behalf of Wolverine, responded to the Notice by letter dated July
22, 2019 (Response). The company did not contest one alleged inadequacy, contested two of the
alleged inadequacies, and requested an in-person hearing. A hearing was subsequently held on
November 5, 2019, before a PHMSA Presiding Official. At the hearing, Respondent was
represented by counsel. Respondent provided additional materials prior to the hearing on
October 25, 2019 (Pre-hearing submission), and following the hearing on January 30, 2020
(Post-hearing submission). The Director submitted a post-hearing recommendation on March
27, 2020 (Recommendation), to which the Respondent submitted a response on April 15, 2020
(Response to the Region Recommendation).
1 Wolverine Pipe Line Company website, available at (https://wolverinepipeline.com/shippers/systems-overview/
(last accessed August 19, 2020).



CPF No. 3-2019-5015M
Page 2
FINDINGS OF INADEQUATE PROCEDURES
Item 1: The Notice alleged that Respondent’s procedures were inadequate with regard to
49 C.F.R. § 195.402(d), which states:
§ 195.402 Procedural manual for operations, maintenance, and
emergencies.
(a) ….
(d) Abnormal operation. The manual required by paragraph (a) of this
section must include procedures for the following to provide safety when
operating design limits have been exceeded:
(1) Responding to, investigating, and correcting the cause of:
(i) Unintended closure of valves or shutdowns;
(ii) Increase or decrease in pressure or flow rate outside normal
operating limits;
(iii) Loss of communications;
(iv) Operation of any safety device;
(v) Any other malfunction of a component, deviation from normal
operation, or personnel error which could cause a hazard to persons or
property.
(2) Checking variations from normal operation after abnormal operation
has ended at sufficient critical locations in the system to determine
continued integrity and safe operation.
The Notice alleged that Respondent’s procedural manual for operations, maintenance, and
emergencies was inadequate with regard to 49 C.F.R. § 195.402 in that it failed to address how
controllers respond to abnormal operations and check facilities for integrity before restarting
operations. Specifically, Wolverine’s Abnormal Operating Condition Restart Report did not
include all of the required abnormal operations, including increase or decrease in pressure or
flow rate outside normal operating limits. In addition, the Notice alleged that the Report did not
require controllers to check variations from normal operation to determine continued integrity
and safe operation before restarting operations.
Wolverine amended this procedure prior to issuance of the Notice. The Director reviewed the
amended procedure and concluded that the inadequacies had been corrected.
Accordingly, based upon a review of all the evidence, I find that Respondent’s procedures were
inadequate, as alleged in the Notice, but have subsequently been adequately modified.
Therefore, no further action is necessary.
Item 2: The Notice alleged that Respondent’s procedures were inadequate with regard to
49 C.F.R. § 195.402, which states:
§ 195.402 Procedural manual for operations, maintenance, and
emergencies.
(a) General. Each operator shall prepare and follow for each



CPF No. 3-2019-5015M
Page 3
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) ….
(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; …
§ 195.420 Valve maintenance.
(a) Each operator shall maintain each valve that is necessary for the
safe operation of its pipeline systems in good working order at all times.
The Notice alleged that Wolverine’s operations and maintenance (O&M) procedures were
inadequate with regard to 49 C.F.R. § 195.402 because they failed to provide sufficient guidance
on valve maintenance in accordance with § 195.420, which provides that operators must
maintain each valve that is necessary for the safe operation of its pipeline systems in good
working order. Specifically, the Notice alleged that Respondent’s DOT Operations and
Maintenance Manual (dated 10/2002) failed to define the inspection period for valves that were
needed for the safe operation of the system, as required by this regulation.
In its Response and at the hearing, Wolverine did not contest the allegation.
Accordingly, based upon a review of all the evidence, I find that Respondent’s procedures were
inadequate, as alleged in the Notice. Wolverine is hereby ordered to amend its procedures to
define the inspection period for other valves that were needed for safe operation of the system, as
required under 49 C.F.R. §195.420(a).
Item 3: The Notice alleged that Respondent’s operations and maintenance procedures were
inadequate with regard to 49 C.F.R. § 195.402(a), as quoted above, because they failed to
properly define how to maintain each valve that is necessary for the safe operation of its pipeline
systems in good working order at all times. Specifically, the Notice alleged that Wolverine’s
O&M Manual failed to explain how to determine the valve position from indicator lights on a
valve actuator. During the inspection, OPS inspectors observed light indicators on valves
located at the Albion Pump Station and the Lansing Terminal. The Notice alleges that
Wolverine’s O&M Manual, Section 195.420 failed to define how to determine that OPS alleges
that Wolverine’s O&M Manual and FIMMS procedure “do not specify nor establish that the



CPF No. 3-2019-5015M
Page 4
light indicators on the motor-operated valve actuators should not be relied upon for determining
the valve position.”
In its Response and at the hearing, Wolverine contested the allegation on several bases, but its
primary objection is that Wolverine uses a physical indicator, and not actuator lights, to indicate
valve position.
Mr. Murchison: And are you familiar with these indicator lights --
Mr. Caddick: Yes.
Mr. Murchison: -- that are at issue here? What's your reaction to this alleged inadequacy that
says that the Wolverine O&M does not define how to determine valve position using actuator
lights?
Mr. Caddick: I do not agree with it.
Mr. Murchison: Why do you not agree with that?
Mr. Caddick: Because we do not use indicator lights to determine position.
Mr. Murchison: What do you use?
Mr. Caddick: A physical indicator.
Mr. Murchison: Can you describe a physical indicator?
Mr. Caddick: A physical indicator is as FIMMS program speaks to, an indicator rod or another
physical device on the valve that changes position when the valve changes state.2
Mr. Caddick, an area supervisor for Wolverine, testified that all of Wolverine’s valves use
physical indicators (not actuator lights) to indicate whether its valves are in an open or closed
position. Even though there are actuator lights on some of these valves, the lights are not what
Wolverine personnel use to determine whether the valves are in the open or closed position.
Therefore, Wolverine asserts that it should not amend its procedures to include a reference to
indicator lights because they are not used. At the hearing, OPS testified that Wolverine
personnel indicated that the actuator lights were used by personnel to determine valve status,
which is why the allegation was included in the Notice. In the Region Recommendation, OPS
maintains that Wolverine “must amend its procedures to define the purposes of the light
indic[a]tors on motor-operated valve actuators in determining valve position in order to ensure
safe operation of its pipeline system.”3
I agree that the valve indicator lights should be referenced in Wolverine’s O&M Manual, at least
to clarify that they are not to be used. Nevertheless, as Wolverine appropriately argues, OPS is
restricted to the specific allegation in the Notice, which stated that Wolverine was to “define how
to determine the valve position from the indicator lights on a valve actuator.”4 Even if such
definition simply indicates that the indicator lights should be disregarded, I hereby order
Wolverine to clearly state in its O&M Manual that all indicator lights should be disregarded, as
they are not used to determine valve position.
2 NOA Hearing Transcript, at 66.
3 Region Recommendation, at 4.
4 Notice, at 3.



CPF No. 3-2019-5015M
Page 5
Item 4: The Notice alleged that Respondent’s operations and maintenance procedures were
inadequate with regard to 49 C.F.R. § 195.452, which states:
§ 195.452 Pipeline integrity management in high consequence areas.
(a) ….
(f) What are the elements of an integrity management program? An
integrity management program begins with the initial framework. An
operator must continually change the program to reflect operating
experience, conclusions drawn from results of the integrity assessments, and
other maintenance and surveillance data, and evaluation of consequences of
a failure on the high consequence area. An operator must include, at
minimum, each of the following elements in its written integrity
management program:
(1) ….
(3) An analysis that integrates all available information about the
integrity of the entire pipeline and the consequences of a failure (see
paragraph (g) of this section); …
(g) What is an information analysis? In periodically evaluating the
integrity of each pipeline segment (paragraph (j) of this section), an operator
must analyze all available information about the integrity of the entire
pipeline and the consequences of a failure. This information includes:
(1) Information critical to determining the potential for, and preventing,
damage due to excavation, including current and planned damage prevention
activities, and development or planned development along the pipeline
segment;
(2) Data gathered through the integrity assessment required under this
section;
(3) Data gathered in conjunction with the other inspections, tests,
surveillance and patrols required by this Part, including, corrosion control
monitoring and cathodic protection surveys; and
(4) Information about how a failure would affect the high consequence
area, such as location of the water intake.
The Notice alleged that Respondent’s written integrity management process was inadequate with
regard to 49 C.F.R. § 195.452 because it failed to include an information analysis that analyzes
all available information about the integrity of the entire pipeline and the consequences of a
failure. Specifically, the Notice alleged that Wolverine’s Integrity Management Program in High
Consequence Areas, Version 2014-1 (IMP Manual) did not define an information analysis
process that addressed all threats for each pipeline, including not identifying any threats for the
Kennedy to Niles pipeline segment.
Wolverine licenses and uses TIARA (Threat Identification and Risk Assessment Manual), a
process of threat identification and risk assessment that was developed by ExxonMobil Pipeline
Company. The Notice alleges and OPS continues to argue that this “TIARA process”
inadequately implements the requirement that Wolverine conduct an information analysis that
integrates all information about the integrity of its pipeline system, as evidenced by fact that the



CPF No. 3-2019-5015M
Page 6
TIARA process did not identify any threats for the Kennedy to Niles pipeline segment.
In its Response and at the hearing, Wolverine argues that the Region Recommendation alters the
original allegation in the Notice.5 The Notice states that Wolverine must “define an information
analysis process that address[es] all threats for each pipeline,” then goes on to state the
inadequacies of the information analysis conducted for the Kennedy to the Niles pipeline
segment. In the Region Recommendation, OPS states that the process used by Wolverine only
accounts for the highest consequence threats, and inappropriately eliminate[s] threats that did not
meet Wolverine’s definition of a significant threat.” Even if this is true, it remains unclear, from
the allegation in the Notice, what OPS wants the Respondent to change. The Region
Recommendation makes a fair argument that the TIARA process does not meet the standards
required of an information analysis that is compliant with OPS regulations. However, it still
does not state with specificity what changes the agency is seeking. 49 C.F.R. § 190.206 states
that a Notice of Amendment will “specify the alleged inadequacies and the proposed revisions of
the plans or procedures.” Without more specificity regarding what needs to change in the
Respondent’s procedures, I cannot order the Respondent to amend their procedures.
Accordingly, based upon a review of all the evidence, I am withdrawing this allegation.
Item 5: The Notice alleged that Respondent’s operations and maintenance procedures were
inadequate with regard to 49 C.F.R. § 195.452, which states:
§ 195.452 Pipeline integrity management in high consequence areas.
(a) ….
(f) What are the elements of an integrity management program? An
integrity management program begins with the initial framework. An
operator must continually change the program to reflect operating
experience, conclusions drawn from results of the integrity assessments, and
other maintenance and surveillance data, and evaluation of consequences of
a failure on the high consequence area. An operator must include, at
minimum, each of the following elements in its written integrity
management program:
(1) ….
(4) Criteria for remedial actions to address integrity issues raised by the
assessment methods and information analysis (see paragraph (h) of this
section); …
(h) What actions must an operator take to address integrity issues?
(1) General requirements. An operator must take prompt action to
address all anomalous conditions in the pipeline that the operator discovers
through the integrity assessment or information analysis. In addressing all
conditions, an operator must evaluate all anomalous conditions and
remediate those that could reduce a pipeline's integrity, as required by this
part. An operator must be able to demonstrate that the remediation of the
5 “The NOA alleges that Respondent's IMP15 did not address "all threats for each pipeline"; however, the agency
now argues that the IMP "was inadequate to integrate all available information about the integrity of pipeline
segments by excluding threats of the pipeline integrity that were not deemed 'significant.’” Operator Response to the
Region Recommendation, at 5.



CPF No. 3-2019-5015M
Page 7
condition will ensure that the condition is unlikely to pose a threat to the
long-term integrity of the pipeline. An operator must comply with §195.422
when making a repair.
The Notice alleged that Respondent’s IMP Manual for operations, maintenance, and emergencies
was inadequate with regard to 49 C.F.R. § 195.452(f) in that it failed to address criteria for
remedial actions to address integrity issues raised by the assessment methods and information
analysis. Specifically, Wolverine’s IMP Manual, Section 4, did not address how assessment tool
tolerances were considered for corrosion anomalies.
Wolverine amended this procedure prior to its Response. The Director reviewed the amended
procedure and concluded that the inadequacies had been corrected. Accordingly, based upon a
review of all the evidence, I find that Respondent’s procedures were inadequate, as alleged in the
Notice, but have subsequently been adequately modified. Therefore, no further action is
necessary.
Item 6: The Notice alleged that Respondent’s operations and maintenance procedures were
inadequate with regard to 49 C.F.R. § 195.452, which states:
§ 195.452 Pipeline integrity management in high consequence areas.
(a) ….
(f) What are the elements of an integrity management program? An
integrity management program begins with the initial framework. An
operator must continually change the program to reflect operating
experience, conclusions drawn from results of the integrity assessments, and
other maintenance and surveillance data, and evaluation of consequences of
a failure on the high consequence area. An operator must include, at
minimum, each of the following elements in its written integrity
management program:
(1) ….
(4) Criteria for remedial actions to address integrity issues raised by the
assessment methods and information analysis (see paragraph (h) of this
section); …
(h) What actions must an operator take to address integrity issues?
(1) General requirements. An operator must take prompt action to
address all anomalous conditions in the pipeline that the operator discovers
through the integrity assessment or information analysis. In addressing all
conditions, an operator must evaluate all anomalous conditions and
remediate those that could reduce a pipeline's integrity, as required by this
part. An operator must be able to demonstrate that the remediation of the
condition will ensure that the condition is unlikely to pose a threat to the
long-term integrity of the pipeline. An operator must comply with §195.422
when making a repair.
The Notice alleged that Respondent failed to develop a pipeline repair manual that addressed the
repair methods that were used by Wolverine. Specifically, Wolverine’s IMP Manual, Section



CPF No. 3-2019-5015M
Page 8
4.4.2 listed in the Repair and Modification table conflicted with the repair methods used on
Wolverine’s pipeline system.
Wolverine amended this procedure prior to its Response. The Director reviewed the amended
procedure and concluded that the inadequacies had been corrected. Accordingly, based upon a
review of all the evidence, I find that Respondent’s procedures were inadequate, as alleged in the
Notice, but have subsequently been adequately modified. Therefore, no further action is
necessary.
Item 7: The Notice alleged that Respondent’s operations and maintenance procedures were
inadequate with regard to 49 C.F.R. § 195.402, 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.
(b) ….
(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.
§ 195.559 What coating material may I use for external corrosion
control?
(a) Coating material for external corrosion control under § 195.557
must –Be designed to mitigate corrosion of the buried or submerged
pipeline; …
The Notice alleged that Respondent’s IMP Manual for operations, maintenance, and emergencies
was inadequate with regard to 49 C.F.R. § 195.402 in that it failed to address the coating material
that may be used for external corrosion control. Specifically, Wolverine’s Facilities Inspection
and Maintenance Manual Pipe Coating Program, Revision 1.10 did not address the application of
RD6 coating that was utilized at the Darden Road ILI dig site.
Wolverine amended this procedure prior to its Response. The Director reviewed the amended
procedure and concluded that the inadequacies had been corrected. Accordingly, based upon a



CPF No. 3-2019-5015M
Page 9
review of all the evidence, I find that Respondent’s procedures were inadequate, as alleged in the
Notice, but have subsequently been adequately modified. Therefore, no further action is
necessary.
Pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206, Wolverine is ordered to revise its
procedures as specified in Item 3 above. Respondent must submit the amended procedures to the
Director, Central Region, within 30 days following 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. 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 Order
Directing Amendment 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 Order Directing Amendment 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 required amendment to procedures, remain in effect unless the Associate
Administrator, upon request, grants a stay.
The terms and conditions of this Order Directing Amendment are effective upon service in
accordance with 49 C.F.R. § 190.5.
September 3, 2020
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

320195015M_Notice of Amendment_04112019_text.pdf

NOTICE OF AMENDMENT
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
April 11, 2019
Mr. Saul Flota
President
Wolverine Pipe Line Company
8075 Creekside Drive
Suite 210
Portage, Michigan 49024
CPF 3-2019-5015M
Dear Mr. Flota:
From May 22 – 26 and June 12- 16, 2017, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code
(U.S.C.), inspected Wolverine Pipe Line Company’s (“Wolverine”) procedures for integrity
management and operations and maintenance in Portage, Michigan.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
Wolverine Pipe Line Company’s plans or procedures, as described below:
1. §195.402 Procedural manual for operations, maintenance, and emergencies.
(d) Abnormal operation. The manual required by paragraph (a) of this section
must include procedures for the following to provide safety when operating
design limits have been exceeded:
(1) Responding to, investigating, and correcting the cause of:
(i) Unintended closure of valves or shutdowns;
(ii) Increase or decrease in pressure or flow rate outside normal operating limits;



(iii) Loss of communications;
(iv) Operation of any safety device;
(v) Any other malfunction of a component, deviation from normal operation, or
personnel error which could cause a hazard to persons or property.
(2) Checking variations from normal operation after abnormal operation has
ended at sufficient critical locations in the system to determine continued
integrity and safe operation.
Wolverine failed to develop adequate procedures for controllers to respond to abnormal
operations and check facilities for integrity before restarting operations.
Wolverine’s Abnormal Operating Condition Restart Report (Report) is completed by
controllers for abnormal operations. The Report did not include all of the abnormal operations
required by §195.402(d). The Report omitted an increase or decrease in pressure or flow rate
outside normal operating limits and included unauthorized valve closure, instead of unintended
closures of valves or shutdowns.
The Report also did not require the controllers to check variations from normal operation after
abnormal operation has ended at sufficient critical locations in the system to determine
continued integrity and safe operation before restarting operations.
Wolverine amended this procedure and submitted it to PHMSA, which was found satisfactory.
No further action needs to be taken regarding this item.
2. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each 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 ensure 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) …
(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) …
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(2) …
(3) Operating, maintaining, and repairing the pipeline system in accordance
with each of the requirements of this subpart and subpart H of this part.
§195.420 Valve maintenance.
(a) Each operator shall maintain each valve that is necessary for the safe
operation of its pipeline systems in good working order at all times.
Wolverine’s DOT Operations and Maintenance Manual, Issued October 2002 (O&M Manual),
Section 195.420, did not define the inspection period for other valves that were needed for the
safe operation of the system.
3. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) See above.
(b) …
(c)(3) See above.
§195.420 Valve maintenance.
(a) Each operator shall maintain each valve that is necessary for the safe
operation of its pipeline systems in good working order at all times.
Wolverine’s O&M Manual, Section 195.420, did not define how to determine the valve
position from the indicator lights on a valve actuator. The valve indicator was needed to
determine the valve position, which was necessary for the safe operation of the pipeline
system. Wolverine provided conflicting interpretations for valve position from the indicator
lights on valve actuators. Wolverine noted that the indicator lights on the valve actuator
indicated that valve was in the remote or the local position and that the valve was in the open
or the closed position.
4. §195.452 Pipeline integrity management in high consequence areas.
(f) What are the elements of an integrity management program? An integrity
management program begins with the initial framework. An operator must
continually change the program to reflect operating experience, conclusions
drawn from results of the integrity assessments, and other maintenance and
surveillance data, and evaluation of consequences of a failure on the high
consequence area. An operator must include, at minimum, each of the following
elements in its written integrity management program:
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(1) . . .
(2) . . .
(3) An analysis that integrates all available information about the integrity of the
entire pipeline and the consequences of a failure (see paragraph (g) of this
section);
(g) What is an information analysis? In periodically evaluating the integrity of
each pipeline segment (paragraph (j) of this section), an operator must analyze
all available information about the integrity of the entire pipeline and the
consequences of a failure. This information includes:
(1) Information critical to determining the potential for, and preventing, damage
due to excavation, including current and planned damage prevention activities,
and development or planned development along the pipeline segment;
(2) Data gathered through the integrity assessment required under this section;
(3) Data gathered in conjunction with other inspections, tests, surveillance and
patrols required by this Part, including, corrosion control monitoring and
cathodic protection surveys; and
(4) Information about how a failure would affect the high consequence area,
such as location of the water intake.
Wolverine’s Integrity Management Program in High Consequence Areas, Version 2014-1
(IMP Manual), did not define an information analysis process that addressed all threats for
each pipeline. Wolverine’s Threat Identification and Risk Assessment Model (TIARA) did not
identify any threats for the Kennedy to Niles pipeline segment. Additionally, in the evaluation
process, Wolverine only identified third party damage as a threat and only developed
preventive and mitigative measures that addressed third party damage.
5. §195.452 Pipeline integrity management in high consequence areas.
(f) What are the elements of an integrity management program? An integrity
management program begins with the initial framework. An operator must
continually change the program to reflect operating experience, conclusions
drawn from results of the integrity assessments, and other maintenance and
surveillance data, and evaluation of consequences of a failure on the high
consequence area. An operator must include, at minimum, each of the following
elements in its written integrity management program:
(4) Criteria for remedial actions to address integrity issues raised by the
assessment methods and information analysis (see paragraph (h) of this section);
(g)…
(h) What actions must an operator take to address integrity issues?—
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(1) General requirements. An operator must take prompt action to address all
anomalous conditions the operator discovers through the integrity assessment or
information analysis. In addressing all conditions, an operator must evaluate all
anomalous conditions and remediate those that could reduce a pipeline's
integrity. An operator must be able to demonstrate that the remediation of the
condition will ensure the condition is unlikely to pose a threat to the long-term
integrity of the pipeline. An operator must comply with §195.422 when making a
repair.
Wolverine's IMP Manual, Section 4., inadequately addressed how assessment tool tolerances
were considered for corrosion anomalies.
Wolverine amended this procedure and submitted it to PHMSA, which was found satisfactory.
No further action needs to be taken regarding this item.
6. §195.452 Pipeline integrity management in high consequence areas.
(f)(4) See above.
(h)(1) See above.
Wolverine failed to develop a pipeline repair manual that addressed the repair methods that
were used by Wolverine. The IMP Manual, Section 4.4.2., referenced Wolverine’s Repair and
Modification Manual for approved repair methods. The repair methods listed in the table in
the Repair and Modification Manual conflicted with the repair methods used on Wolverine’s
pipeline system. During the inspection, Wolverine noted that all repairs were determined by the
Risk & Integrity Specialist. The Repair and Modification Manual listed bolt on clamps as
permanent repair methods, however, the Risk & Integrity Specialist noted that bolt on clamps
were temporary repair methods.
Wolverine amended this procedure and submitted it to PHMSA, which was found satisfactory.
No further action needs to be taken regarding this item.
7. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) See above.
(b) …
(c)(3) See above.
§195.559 What coating material may I use for external corrosion control?
Coating material for external corrosion control under §195.557 must –
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(a) Be designed to mitigate corrosion of the buried or submerged pipeline;
Wolverine’s Facilities Inspection and Maintenance Manual Pipe Coating Program, Revision
1.10, did not address the application of RD6 coating that was utilized at the Darden Road ILI
Dig Site.
Wolverine amended this procedure and submitted it to PHMSA, which was found satisfactory.
No further action needs to be taken regarding this item.
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 w
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