{"operation":"document","citation":"CPF 320205001M","title":"HESS ND — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-03-02","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3), 195.505(b), 195.505(c), 195.505(g).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205001m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205001m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205001m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205001M","body":"Notice of Amendment involving HESS ND. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(3),  195.505(b),  195.505(c),  195.505(g). The case was opened on 2020-03-02 and is reported as closed as of 2020-07-13. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205001M_Closure Letter_07132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205001M/320205001M_Closure%20Letter_07132020.pdf\n\n320205001M_Closure Letter_07132020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205001M/320205001M_Closure%20Letter_07132020_text.pdf\n\n320205001M_Notice of Amendment_03022020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205001M/320205001M_Notice%20of%20Amendment_03022020.pdf\n\n320205001M_Notice of Amendment_03022020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205001M/320205001M_Notice%20of%20Amendment_03022020_text.pdf\n\n320205001M_Operator Response To Notice_04012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205001M/320205001M_Operator%20Response%20To%20Notice_04012020.pdf\n\n320205001M_Closure Letter_07132020_text.pdf\n\nVIA ELECTRONIC MAIL TO: bbiggs@hess.com, ghill@hess.com, and\ndweathersby@hess.com\nJuly 13, 2020\nMr. Gregory P. Hill\nPresident & Chief Operating Officer\nHESS Corporation\n1501 McKinney Street, 28th Floor\nHouston, TX 77010\nCPF 3-2020-5001M\nDear Mr. Hill:\nOn July 29 – August 2, August 5 – 9, 12 – 16 and 19 – 23, 2019, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of Hess Corporation’s (Hess) procedures in Minot, North\nDakota. As a result of the inspection, Hess was issued a Notice of Amendment on March 2, 2020, which\nproposed amendment of your procedures.\nHess submitted its amended procedures on April 1, 2020. My staff reviewed the amended procedures,\nand it appears that the inadequacies outlined in this Notice of Amendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for your\ncooperation.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nCC:\nMr. Barry Biggs\nMr. Dale Weathersby\n\n320205001M_Notice of Amendment_03022020_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 2, 2020\nMr. Gregory P. Hill\nPresident & Chief Operating Officer\nHESS Corporation\n1501 McKinney Street, 28th Floor\nHouston, TX 77010\nCPF 3-2020-5001M\nDear Mr. Hill:\nOn July 29 – August 2, August 5 – 9, 12 – 16 and 19 – 23, 2019, representatives of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49\nUnited States Code inspected Hess Corporation’s (Hess) procedures for an Integrated\nInspection in Minot, North Dakota.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nHess’s plans or procedures, as described below:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\n\n\n\neach of the requirements of this subpart and subpart H of this part.\n§ 195.579 What must I do to mitigate internal corrosion?\n(a) . . . .\n(d) Breakout tanks. After October 2, 2000, when you install a tank bottom lining in an\naboveground breakout tank built to API Spec 12F (incorporated by reference, see §\n195.3), API Std 620 (incorporated by reference, see § 195.3), API Std 650 (incorporated\nby reference, see § 195.3), or API Std 650’s predecessor, Standard 12C, you must install\nthe lining in accordance with API RP 652 (incorporated by reference, see § 195.3).\nHowever, you don’t need to comply with API RP 652 when installing any tank for which\nyou note in the corrosion control procedures established under § 195.402(c)(3) why\ncompliance with all or certain provisions of API RP 652 is not necessary for the safety of\nthe tank.\nHess’s Operation and Maintenance (O&M) Program was inadequate because it did not include\nrequirements for internal linings of aboveground breakout tanks built after October 2, 2000.\nSpecifically, the procedures, last revised on 3/5/2018, did not require breakout tank bottom\nlinings to be installed in accordance with API RP 652 or note in the corrosion control\nprocedures why compliance with API RP 652 is not necessary for the safety of the tank. Hess\nupdated the procedures to address this item. No further action is required.\n2. §195.402(c)(3) – Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\n§195.591 In-Line inspection of pipelines.\nWhen conducting in-line inspection of pipelines required by this part, each operator must\ncomply with the requirements and recommendations of API Std 1163, Inline Inspection\nSystems Qualification Standard; ANSI/ASNT ILI-PQ, Inline Inspection Personnel\nQualification and Certification; and NACE SP0102-2010, Inline Inspection of Pipelines\n(incorporated by reference, see §195.3). An in-line inspection may also be conducted\nusing tethered or remote control tools provided they generally comply with those sections\nof NACE SP0102-2010 that are applicable.\nHess’s O&M Program did not include adequate in-line inspection (ILI) requirements for the\nqualification of ILI systems, including personnel, equipment, processes, and software\nutilization within the procedures. Specifically, the procedures did not require compliance with\nAPI Std 1163, Inline Inspection Systems Qualification Standard; ANSI/ASNT ILI-PQ, Inline\nInspection Personnel Qualification and Certification; and NACE SP0102-2010, Inline\n2\n\n\n\nInspection of Pipelines.\n3. § 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(b) Ensure through evaluation that individuals performing covered tasks are\nqualified…\nHess’s OQ Program was inadequate because it did not ensure through evaluation that\nindividuals performing covered tasks are qualified. Specifically, procedures did not require\nthat performance evaluations be given in a one-on-one setting to ensure each individual is\nqualified rather than as a group exercise. Hess updated the procedures to address this item. No\nfurther action is required.\n4. § 195.505Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(b) Ensure through evaluation that individuals performing covered tasks are\nqualified…\n§ 195.503 Definitions.\nEvaluation means a process, established and documented by the operator, to determine an\nindividual's ability to perform a covered task by any of the following:\n(a) Written examination;\n(b) Oral examination;\n(c) Work performance history review;\n(d) Observation during:\n(1) performance on the job,\n(2) on the job training, or\n(3) simulations;\n(e) Other forms of assessment.\n3\n\n\n\nHess’s OQ Program was inadequate because it did not include an evaluation process to\ndetermine an individual’s ability to perform a covered task. Specifically, the procedure did not\nhave task specific evaluation methods for each task. Hess updated the procedures to address\nthis item. No further action is required.\n5. § 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(c) Allow individuals that are not qualified pursuant to this subpart to perform a\ncovered task if directed and observed by an individual that is qualified…\nHess’s OQ Program was inadequate because it did not use accepted values for restrictions and\nlimitations placed on provisions for non-qualified individuals to perform covered tasks while\nbeing directed and observed by a qualified individual. Hess updated the procedures to address\nthis item. No further action is required.\n6. § 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(g) Identify those covered tasks and the intervals at which evaluation of the\nindividual's qualifications is needed…\nHess’s OQ Program was inadequate because it did not identify for each covered task the\ninterval at which evaluation of the individual’s qualifications is required. Specifically, a\ngeneric value of 3 years for each task was used without adequate justification. For instance,\nthe procedures listed 3-year evaluation periods for tasks where suppliers require more frequent\nevaluations, such as composite sleeve repair methods. Hess updated the procedures to address\nthis item. No further action is required.\n4\n\n\n\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to\namend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are\nnot contesting this Notice, we propose that you submit your amended procedures to my office\nwithin 30 days of receipt of this Notice. This period may be extended by written request for\ngood cause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested (not mandated) that HESS Corporation maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision\nof plans, procedures) and submit the total to Allan C. Beshore, Director, Central Region,\nPipeline and Hazardous Materials Safety Administration. In correspondence concerning this\nmatter, please refer to CPF 3-2020-5001M and, for each document you submit, please provide\na copy in electronic format whenever possible.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n5","truncated":false,"body_characters":11848}