{"operation":"document","citation":"CPF 320205013M","title":"MAGELLAN PIPELINE COMPANY, LP — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-11-06","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(2), 195.432(a), 195.452(f)(4), 195.52(d), 195.54(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205013m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205013m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205013m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205013M","body":"Notice of Amendment involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(2),  195.432(a),  195.452(f)(4),  195.52(d),  195.54(a). The case was opened on 2020-11-06 and is reported as closed as of 2021-09-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205013M_Closure Letter_09212021_(18-162125S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205013M/320205013M_Closure%20Letter_09212021_(18-162125S).pdf\n\n320205013M_Closure Letter_09212021_(18-162125S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205013M/320205013M_Closure%20Letter_09212021_(18-162125S)_text.pdf\n\n320205013M_Notice of Amendment_11062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205013M/320205013M_Notice%20of%20Amendment_11062020.pdf\n\n320205013M_Notice of Amendment_11062020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205013M/320205013M_Notice%20of%20Amendment_11062020_text.pdf\n\n320205013M_Operator Response to Notice_12042020_(18-162125S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205013M/320205013M_Operator%20Response%20to%20Notice_12042020_(18-162125S).pdf\n\n320205013M_Notice of Amendment_11062020_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: jason.smith@magellanlp.com\nmike.mears@magellanlp.com and\nNovember 6, 2020\nMr. Michael Mears\nPresident and CEO\nMagellan Pipeline Company, LP\nOne Williams Center, P.O. Box 22186\nTulsa, OK 74172\nCPF 3-2020-5013M\nDear Mr. Mears:\nFrom January 28, 2019 through February 1, 2019, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected Magellan Midstream Partners L.P. (MMP) operations and maintenance and integrity\nmanagement procedures in Tulsa, Oklahoma.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nMMP’s plans or procedures, as described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\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\n\n\n(1) . . .\n(2) Gathering of data needed for reporting accidents under subpart B of this part in\na timely and effective manner.\n§195.52 Immediate notice of certain accidents\n(d) New information. Within 48 hours after the confirmed discovery of an accident,\nto the extent practicable, an operator must revise or confirm its initial telephonic\nnotice required in paragraph (b) of this section with a revised estimate of the\namount of product released, location of the failure, time of the failure, a revised\nestimate of the number of fatalities and injuries, and all other significant facts that\nare known by the operator that are relevant to the cause of the accident or extent of\nthe damages. If there are no changes or revisions to the initial report, the operator\nmust confirm the estimates in its initial report.\nMMP’s written accident reporting procedure 13.01-ADM-001 inadequately addressed the\nrequirements of §195.52(d) at the time of PHMSA’s inspection. The procedures did not include a\nprovision to complete a notification to the National Response Center (NRC) 48 hours after the\ninitial accident notification for updates.\nOn February 1, 2019, MMP provided a screen shot of the updated/revised procedure 13.01-\nADM-001 to include in Sec. 2.3.1 stating, “Complete a 48-hour update to the NRC within 48\nhours of the initial notification” to PHMSA. This updated/revised procedure satisfactorily\naddressed the procedural inadequacy.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\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(2) Gathering of data needed for reporting accidents under subpart B of this part in\na timely and effective manner.\n§195.54 Accident Reports\n(a) Each operator that experiences an accident that is required to be reported under\n§195.50 must, as soon as practicable, but not later than 30 days after discovery of\nthe accident, file an accident report on DOT Form 7000-1.\n2\n\n\n\nMMP’s written accident reporting procedure SIP-ADM-13.01 was inadequate because the\nprocess did not require accident reports to be submitted as soon as practicable as required by\n§195.54(a).\nOn February 5, 2019, MMP updated/revised the procedure SIP-ADM-13.01 to state, \"Prepare\nand submit original reports using the DOT Jurisdictional Pipeline Release Reporting Process for\nall DOT jurisdictional releases as soon as practicable, but not later than 30 days of discovering\nthe release.\" This was provided to PHMSA per email from MMP on August 5, 2019. This\nupdated/revised procedure satisfactorily addressed the procedural inadequacy.\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\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(2) Gathering of data needed for reporting accidents under subpart B of this part in\na timely and effective manner.\n§195.432 Inspection of in-service breakout tanks\n(a) Except for breakout tanks inspected under paragraphs(b) and (c) of this section,\neach operator shall, at intervals not exceeding 15 months, but at least once each\ncalendar year, inspect each in-service breakout tank.\nMMP’s written Static Tank Check procedure SIP- 9.01–ADM-022 was inadequate because the\nprocess did not define how MMP determines the tank levels reach at least half full, while\ninspecting each in-service special permit tank, as required by Docket Number PHMSA-2016-\n0072 condition 2. D\nOn May 14, 2019, MMP updated/revised the procedure SIP- 9.01–ADM-022 defining that tanks\nin product service should be half full, using Normal Top levels, if possible, which satisfied the\nabove inadequacies.\n3\n\n\n\n4. §195.452 Pipeline integrity management in high consequence areas.\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions drawn\nfrom results of the integrity assessments, and other maintenance and surveillance\ndata, and evaluation of consequences of a failure on the high consequence area. An\noperator must include, at minimum, each of the following elements in its written\nintegrity management program:\n(1) …\n(4) Criteria for remedial actions to address integrity issues raised by the assessment\nmethods and information analysis (see paragraph (h) of this section);\nMMP’s written integrity management plan (IMP), specifically the In-Line Inspection Analysis\nGuidelines (7.03-ADM-007), inadequately stated when a ‘discovery of a condition’ occurs as\noutlined in §195.452(h)(2).\nSection 195.452(f)(4) requires that criteria contained within paragraph (h) of §195.452 is met\nwithin the operator’s IMP procedures. Section 195.452(h)(2) states:\n“Discovery of condition. Discovery of a condition occurs when an operator has adequate\ninformation about the condition to determine that the condition presents a potential threat to the\nintegrity of the pipeline. An operator must promptly, but no later than 180 days after an integrity\nassessment, obtain sufficient information about a condition to make that determination, unless\nthe operator can demonstrate that the 180-day period is impracticable.”\nBased on this inadequacy, MMP needed to further refine its definition of date of discovery and\nestablish when adequate information about the condition of a pipeline segment has been received\nto determine if it presents a potential threat to the integrity of the pipeline.\nOn November 21, 2019, PHMSA received the amended procedure 7.03-ADM-007 from MMP\nwhich satisfied the above inadequacies.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart 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 for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust 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 information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\n4\n\n\n\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 amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n30 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested (not mandated) that Magellan Midstream Partners L.P. (MMP) maintain\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Gregory Ochs,\nDirector, Central Region, Pipeline and Hazardous Materials Safety Administration. In\ncorrespondence concerning this matter, please refer to CPF 3-2020-5013M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\nCc: Mr. Jason Smith, Vice President of Asset Integrity, Magellan Pipeline Company, LP\nOne Williams Center, OTC-9,Tulsa, OK 74172, jason.smith@magellanlp.com\n5\n\n320205013M_Closure Letter_09212021_(18-162125S)_text.pdf\n\nVIA ELECTRONIC MAIL TO: mike.mears@magellanlp.com and\njason.smith@magellanlp.com\nSeptember 21, 2021\nMr. Michael Mears\nPresident and CEO\nMagellan Pipeline Company, LP\nOne Williams Center, P.O. Box 22186\nTulsa, OK 74172\nRe: CPF 3-2020-5013M\nDear Mr. Mears:\nOn January 28, 2019 through February 1, 2019, a representative from the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United\nStates Code, conducted an on-site pipeline safety inspection of Magellan Midstream Partners\nL.P. procedures in Tulsa, Oklahoma. As a result of the inspection, Magellan Midstream Partners\nL.P. was issued a Notice of Amendment on November 6, 2020, which proposed amendment of\nyour procedures.\nMagellan Midstream Partners L.P. submitted its amended procedures on December 4, 2020. My\nstaff reviewed the amended procedures, and it appears that the inadequacies outlined in this\nNotice of Amendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nGregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":12040}