{"operation":"document","citation":"CPF 320205015M","title":"COUNTRYMARK REFINING AND LOGISTICS, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-10-02","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3), 195.420(a), 195.422(b), 195.452(h), 195.587.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205015m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205015m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205015m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205015M","body":"Notice of Amendment involving COUNTRYMARK REFINING AND LOGISTICS, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(3),  195.420(a),  195.422(b),  195.452(h),  195.587. The case was opened on 2020-10-02 and is reported as closed as of 2021-09-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205015M_Closure Letter_09302021_(19-164188S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205015M/320205015M_Closure%20Letter_09302021_(19-164188S).pdf\n\n320205015M_Closure Letter_09302021_(19-164188S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205015M/320205015M_Closure%20Letter_09302021_(19-164188S)_text.pdf\n\n320205015M_Notice of Amendment_10022020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205015M/320205015M_Notice%20of%20Amendment_10022020.pdf\n\n320205015M_Notice of Amendment_10022020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205015M/320205015M_Notice%20of%20Amendment_10022020_text.pdf\n\n320205015M_Closure Letter_09302021_(19-164188S)_text.pdf\n\nVIA ELECTRONIC MAIL TO: matt.smorch@countrymark.com and\nblair.currie@countrymark.com\nSeptember 30, 2021\nMr. Matt Smorch\nChief Executive Officer\nCountryMark Refining and Logistics, LLC\n225 S.E. St., Suite 44\nIndianabpolis\nRe: CPF 3-2020-5015M\nDear Mr. Smorch:\nOn July 29 through August 2 and August 12 through 16, 2019, a representative from the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to chapter 601 of\n49 United States Code, conducted an on-site pipeline safety inspection of CountryMark Refining\nand Logistics, LLC (CountryMark) procedures in Mount Vernon, Indiana. As a result of the\ninspection, CountryMark Refining and Logistics, LLC (CountryMark) was issued a Notice of\nAmendment on October 2, 2020, which proposed amendment of your procedures.\nCountryMark Refining and Logistics, LLC (CountryMark) submitted its amended procedures on\nNovember, 24, 2020. My staff reviewed the amended procedures, and it appears that the\ninadequacies 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\nfor your cooperation.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\n\n320205015M_Notice of Amendment_10022020_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Matt.Smorch@countrymark.com and\nblair.currie@countrymark.com\nOctober 2, 2020\nMr. Matt Smorch\nChief Executive Officer\nCountryMark Refining and Logistics, LLC\n225 S.E. St., Suite 44\nIndianapolis, IN 46202\nCPF 3-2020-5015M\nDear Mr. Smorch:\nFrom July 29 through August 2 and August 12 through 16, 2019, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601\nof 49 United States Code, inspected CountryMark Refining and Logistics, LLC\n(CountryMark) procedures for operation and maintenance (O&M) and integrity management\n(IM) in Mount Vernon, Indiana.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nCountryMark’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\n(a) of this section must include procedures for the following to provide safety\nduring maintenance and normal operations:\n\n\n\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.\nCountryMark’s procedure “P-195.214 Weld Pipeline, Rev 10: 3-4-2018” was inadequate in\ntwo sections. First, Section 10, Welder Performance Qualifications, is inadequate because\nASME Sec. IX and API 1104 are mixed together in the steps with no separation to provide a\ndistinction on proper application. Second, Section 14.2, Nondestructive Testing of Welds,\nstep 5 does not provided sufficient detail on the nondestructive testing of girth welds as\noutlined in §195.234(e). CountryMark must amend its procedure “P-195.214 Weld Pipeline”\nto provide a proper distinction between ASME Section XI and API 1104 in Section 10 and\nprovide a process with adequate detail for the nondestructive testing of girth welds.\n2. §195.402(c)(3) - See above\n§195.420 Valve maintenance.\n(a) Each operator shall maintain each valve that is necessary for the safe\noperation of its pipeline systems in good working order at all times.\nCountryMark’s procedure “P-195.420 – Inspection and Maintaining Valve, Rev 2: 3-20-2018”\nis inadequate because it does not reflect the process that CountryMark personnel perform to\nsatisfy the requirement for valve maintenance. Specifically, the procedure does not reference\nCountryMark’s other procedures titled “Steps to Create a Work Request” and “Work order\nPriority Guide,” which set forth the steps that personnel must complete when preparing work\norders for valves, as necessary, following valve inspections. CountryMark must amend its\nprocedure “P-195.420 – Inspection and Maintaining Valve” to include a reference to its “Steps\nto Create a Work Request” and “Work order Priority Guide” procedures.\n3. §195.402(c)(3) - See above\n§195.422 Pipeline Repairs.\n(a) . . .\n(b) No operator may use any pipe, valve, or fitting, for replacement in repairing\npipeline facilities, unless it is designed and constructed as required by this part.\nCountryMark’s procedure “P-195.422 – Pipeline Repairs and Replacement, Rev 4” is\ninadequate because it does not reflect what CountryMark personnel do to satisfy the\nrequirement of pipeline repair. Specifically, the procedure does not include references to\nCountryMark’s procedures “Steps to Create a Work Request” and “Work Order Priority\nGuide,” which set forth the steps that personnel must complete when preparing work orders\nfor pipeline repairs, as needed. CountryMark must amend its procedure “P-195.422 – Pipeline\nRepairs and Replacement” to include a reference to its “Steps to Create a Work Request” and\n“Work order Priority Guide” procedures.\n2\n\n\n\n4. §195.402(c)(3) - See above\n§195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(h) What actions must an operator take to address integrity issues?\n(1) General requirements. An operator must take prompt action to address all\nanomalous conditions the operator discovers through the integrity assessment or\ninformation analysis. In addressing all conditions, an operator must evaluate all\nanomalous conditions and remediate those that could reduce a pipeline's\nintegrity. An operator must be able to demonstrate that the remediation of the\ncondition will ensure the condition is unlikely to pose a threat to the long-term\nintegrity of the pipeline. An operator must comply with §195.422 when making a\nrepair.\n(i) Temporary pressure reduction. An operator must notify PHMSA, in\naccordance with paragraph (m) of this section, if the operator cannot meet\nthe schedule for evaluation and remediation required under paragraph\n(h)(3) of this section and cannot provide safety through a temporary\nreduction in operating pressure.\n(ii) Long-term pressure reduction. When a pressure reduction exceeds 365 days,\nthe operator must notify PHMSA in accordance with paragraph (m) of this\nsection and explain the reasons for the delay. An operator must also take\nfurther remedial action to ensure the safety of the pipeline.\nCountryMark’s procedure “P-195.428(a) – Inspect, Calibrate, and Maintain Overpressure\nSafety Devices and Overfill Protection Systems” is inadequate because it does not include\nwhat further remedial actions that the operator must take when a pressure reduction exceeds\n365 days pursuant to §195.452(h)(1)(ii). Specifically, a review of CountryMark’s “P-\n195.428(a) – Inspect, Calibrate, and Maintain Overpressure Safety Devices and Overfill\nProtection Systems” procedure revealed that the procedure does not include a process for or a\nlist of remedial actions, such adjusting applicable field pressure equipment, for ensuring the\nsafety of the pipeline when pressure changes made under §195.452(h)(ii) become long-term.\nTherefore, CountryMark must amend its “P-195.428(a) – Inspect, Calibrate, and Maintain\nOverpressure Safety Devices and Overfill Protection Systems” procedure to set forth the\nfurther remedial actions must be taken to ensure the safety of the pipeline when long-term\npressure reductions exceed 365 days.\n3\n\n\n\n5. §195.402(c)(3) - See above\n§195.587 What methods are available to determine the strength of corroded pipe?\nUnder §195.585, you may use the procedure in ASME/ANSI B31G (incorporated\nby reference, see §195.3) or in PRCI PR-3-805 (R-STRENG) (incorporated by\nreference, see §195.3) to determine the strength of corroded pipe based on actual\nremaining wall thickness. These procedures apply to corroded regions that do not\npenetrate the pipe wall, subject to the limitations set out in the respective\nprocedures.\nCountryMark’s procedure “P-195.585 – General and Localized Corrosion Measurement &\nMitigation” is inadequate because the scope of the procedure only covers external corrosion.\nSpecifically, Section 2 – Scope of the procedure fails to include internal corrosion and the\napplicable determinations CountryMark must be take pursuant to §195.587. CountryMark\nmust amend its procedure “P-195.585 – General and Localized Corrosion Measurement &\nMitigation” to account for internal corrosion and the applicable determinations under\n§195.587.\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\nEnforcement 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\nof receipt 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\nin this Notice without further notice to you and to issue an Order Directing Amendment. If\nyour plans 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 60 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 CountryMark Refining and Logistics, LLC maintain\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Greg Ochs,\n4\n\n\n\nDirector, Central Region, Pipeline and Hazardous Materials Safety Administration. In\ncorrespondence concerning this matter, please refer to CPF 3-2020-5015M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Mr. Blair Currie, Pipeline Integrity Manager, CountryMark Refining and Logistics, LLC\n1200 Refinery Rd, Mount Vernon, IN 47620 , blair.currie@countrymark.com\n5","truncated":false,"body_characters":12265}