# BOE MIDSTREAM — Warning Letter

- **operation:** document
- **citation:** CPF 320196002W
- **title:** BOE MIDSTREAM — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-05-30
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.575(a).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-320196002w.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-320196002w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-320196002w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320196002W
**body:**

Warning Letter involving BOE MIDSTREAM. PHMSA's enforcement data identifies the cited regulation as 195.575(a). The case was opened on 2019-05-30 and is reported as closed as of 2019-05-30. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320196002W_Warning Letter_05302019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320196002W/320196002W_Warning%20Letter_05302019.pdf

320196002W_Warning Letter_05302019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320196002W/320196002W_Warning%20Letter_05302019_text.pdf

320196002W_Warning Letter_05302019_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
May 30, 2019
John C. Wadsworth
Chief Operating Officer
BOE Midstream
8301 East 21st N
Suite 420
Wichita, Kansas 67206
CPF 3-2019-6002W
Dear Mr. Wadsworth:
On September 27-29, 2016, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49
United States Code (U.S.C.) inspected the BOE Midstream (BOE) facilities in Dunn and Stark
Counties, North Dakota.
As a result of the inspection, it is alleged that you have committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected
and the probable violation is:
1. §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.



BOE failed to investigate the corrosive affects of the crude oil it transports and take
adequate steps to mitigative internal corrosion. Specifically, BOE failed to test for the
corrosivity of their crude oil product prior to pipeline operation. BOE staff informed
PHMSA during the inspection that testing for the corrosivitiy of the crude oil was not
performed prior to operation and no mitigative measures had been taken to prevent
internal corrosion.
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. We have
reviewed the circumstances and supporting documents involved in this case, and have decided
not to conduct additional enforcement action or penalty assessment proceedings at this time.
We advise you to correct the item identified in this letter. Failure to do so will result in BOE
Midstream being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer
to CPF 3-2019-6002W. 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).
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
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