MAGELLAN PIPELINE COMPANY, LP — Notice of Amendment

party submissionOfficial PDF320205013M_Operator Response to Notice_12042020_(18-162125S).pdf#

320205013M_Notice of Amendment_11062020_text.pdf, page 1Official PDFNOTICE OF AMENDMENT VIA ELECTRONIC MAIL TO: jason.smith@magellanlp.com mike.mears@magellanlp.com and November 6, 2020 Mr. Michael Mears President and CEO Magellan Pipeline Company, LP One Williams Center, P.O. Box 22186 Tulsa, OK 74172 CPF 3-2020-5013M Dear Mr. Mears: From January 28, 2019 through February 1, 2019, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Magellan Midstream Partners L.P. (MMP) operations and maintenance and integrity management procedures in Tulsa, Oklahoma. On the basis of the inspection, PHMSA has identified the apparent inadequacies found within MMP’s plans or procedures, as described below: 1. § 195.402 Procedural manual for operations, maintenance, and emergencies. (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:#

320205013M_Notice of Amendment_11062020_text.pdf, page 2(1) . . . (2) Gathering of data needed for reporting accidents under subpart B of this part in a timely and effective manner. §195.52 Immediate notice of certain accidents (d) New information. Within 48 hours after the confirmed discovery of an accident, to the extent practicable, an operator must revise or confirm its initial telephonic notice required in paragraph (b) of this section with a revised estimate of the amount of product released, location of the failure, time of the failure, a revised estimate of the number of fatalities and injuries, and all other significant facts that are known by the operator that are relevant to the cause of the accident or extent of the damages. If there are no changes or revisions to the initial report, the operator must confirm the estimates in its initial report. MMP’s written accident reporting procedure 13.01-ADM-001 inadequately addressed the requirements of §195.52(d) at the time of PHMSA’s inspection. The procedures did not include a provision to complete a notification to the National Response Center (NRC) 48 hours after the initial accident notification for updates. On February 1, 2019, MMP provided a screen shot of the updated/revised procedure 13.01- ADM-001 to include in Sec. 2.3.1 stating, “Complete a 48-hour update to the NRC within 48 hours of the initial notification” to PHMSA. This updated/revised procedure satisfactorily addressed the procedural inadequacy. 2. § 195.402 Procedural manual for operations, maintenance, and emergencies. (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) . . . (2) Gathering of data needed for reporting accidents under subpart B of this part in a timely and effective manner. §195.54 Accident Reports (a) Each operator that experiences an accident that is required to be reported under §195.50 must, as soon as practicable, but not later than 30 days after discovery of the accident, file an accident report on DOT Form 7000-1. 2#

320205013M_Notice of Amendment_11062020_text.pdf, page 3MMP’s written accident reporting procedure SIP-ADM-13.01 was inadequate because the process did not require accident reports to be submitted as soon as practicable as required by §195.54(a). On February 5, 2019, MMP updated/revised the procedure SIP-ADM-13.01 to state, "Prepare and submit original reports using the DOT Jurisdictional Pipeline Release Reporting Process for all DOT jurisdictional releases as soon as practicable, but not later than 30 days of discovering the release." This was provided to PHMSA per email from MMP on August 5, 2019. This updated/revised procedure satisfactorily addressed the procedural inadequacy. 3. § 195.402 Procedural manual for operations, maintenance, and emergencies. (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) . . . (2) Gathering of data needed for reporting accidents under subpart B of this part in a timely and effective manner. §195.432 Inspection of in-service breakout tanks (a) Except for breakout tanks inspected under paragraphs(b) and (c) of this section, each operator shall, at intervals not exceeding 15 months, but at least once each calendar year, inspect each in-service breakout tank. MMP’s written Static Tank Check procedure SIP- 9.01–ADM-022 was inadequate because the process did not define how MMP determines the tank levels reach at least half full, while inspecting each in-service special permit tank, as required by Docket Number PHMSA-2016- 0072 condition 2. D On May 14, 2019, MMP updated/revised the procedure SIP- 9.01–ADM-022 defining that tanks in product service should be half full, using Normal Top levels, if possible, which satisfied the above inadequacies. 3#

320205013M_Notice of Amendment_11062020_text.pdf, page 44. §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: (1) … (4) Criteria for remedial actions to address integrity issues raised by the assessment methods and information analysis (see paragraph (h) of this section); MMP’s written integrity management plan (IMP), specifically the In-Line Inspection Analysis Guidelines (7.03-ADM-007), inadequately stated when a ‘discovery of a condition’ occurs as outlined in §195.452(h)(2). Section 195.452(f)(4) requires that criteria contained within paragraph (h) of §195.452 is met within the operator’s IMP procedures. Section 195.452(h)(2) states: “Discovery of condition. Discovery of a condition occurs when an operator has adequate information about the condition to determine that the condition presents a potential threat to the integrity of the pipeline. An operator must promptly, but no later than 180 days after an integrity assessment, obtain sufficient information about a condition to make that determination, unless the operator can demonstrate that the 180-day period is impracticable.” Based on this inadequacy, MMP needed to further refine its definition of date of discovery and establish when adequate information about the condition of a pipeline segment has been received to determine if it presents a potential threat to the integrity of the pipeline. On November 21, 2019, PHMSA received the amended procedure 7.03-ADM-007 from MMP which satisfied the above inadequacies. 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). 4#

320205013M_Notice of Amendment_11062020_text.pdf, page 5Following 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 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 an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within 30 days of receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. It is requested (not mandated) that Magellan Midstream Partners L.P. (MMP) maintain documentation of the safety improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit the total to Gregory Ochs, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this matter, please refer to CPF 3-2020-5013M and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Gregory Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings Cc: Mr. Jason Smith, Vice President of Asset Integrity, Magellan Pipeline Company, LP One Williams Center, OTC-9,Tulsa, OK 74172, jason.smith@magellanlp.com 5#

320205013M_Closure Letter_09212021_(18-162125S)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: mike.mears@magellanlp.com and jason.smith@magellanlp.com September 21, 2021 Mr. Michael Mears President and CEO Magellan Pipeline Company, LP One Williams Center, P.O. Box 22186 Tulsa, OK 74172 Re: CPF 3-2020-5013M Dear Mr. Mears: On January 28, 2019 through February 1, 2019, 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 Magellan Midstream Partners L.P. procedures in Tulsa, Oklahoma. As a result of the inspection, Magellan Midstream Partners L.P. was issued a Notice of Amendment on November 6, 2020, which proposed amendment of your procedures. Magellan Midstream Partners L.P. submitted its amended procedures on December 4, 2020. My staff reviewed the amended procedures, and it appears that the inadequacies outlined in this Notice of 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 Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration#