{"operation":"document","citation":"CPF 320205028W","title":"PHILLIPS 66 PIPELINE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-11-05","effective_on":null,"summary":"CLOSED warning letter citing 195.404(c)(3), 195.428(a), 195.49, 195.573(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205028w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205028w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205028w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205028W","body":"Warning Letter involving PHILLIPS 66 PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.404(c)(3),  195.428(a),  195.49,  195.573(d). The case was opened on 2020-11-05 and is reported as closed as of 2020-11-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205028W_Operator Response to Notice_12012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205028W/320205028W_Operator%20Response%20to%20Notice_12012020.pdf\n\n320205028W_Warning Letter_11052020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205028W/320205028W_Warning%20Letter_11052020.pdf\n\n320205028W_Warning Letter_11052020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205028W/320205028W_Warning%20Letter_11052020_text.pdf\n\n320205028W_Warning Letter_11052020_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Todd.Denton@p66.com and Jeff.M.Blatchford@p66.com\nNovember 5, 2020\nMr. Todd Denton\nPresident Phillips 66 Pipeline LLC\n2331 Citywest Blvd\nHouston, TX 77042\nCPF 3-2020-5028W\nDear Mr. Denton:\nOn March 25 – 29 and September 9 - 13, 2019, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected Phillips 66 Pipeline LLC’s (Phillips 66) therecords and field assets for\nSacagawea Pipeline in Houston, Texas and Keene, North Dakota.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n\n\n\n1. §195.49 Annual report.\nEach operator must annually complete and submit DOT Form PHMSA F 7000-1.1\nfor each type of hazardous liquid pipeline facility operated at the end of the previous\nyear. An operator must submit the annual report by June 15 each year, except that\nfor the 2010 reporting year the report must be submitted by August 15, 2011. A\nseparate report is required for crude oil, HVL (including anhydrous ammonia),\npetroleum products, carbon dioxide pipelines, and fuel grade ethanol pipelines. For\neach state a pipeline traverses, an operator must separately complete those sections\non the form requiring information to be reported for each state.\nPhillips 66 failed to submit accurate and complete annual reports for the Sacagawea Pipeline.\nSpecifically, Phillips 66 did not include high consequence area (HCA) mileage in its 2016 annual\nreport. Additionally, breakout tanks were missing from the 2016 and 2017 annual reports.\nPhillips 66 personnel stated there should have been 3 breakout tanks listed in the 2016 annual\nreport and 5 in the 2017 annual report. Phillips 66 has submitted supplemental Annual Reports\nfor 2016 and 2017 to correct these inaccuracies.\n2. §195.404 Maps and records.\n(c) Each operator shall maintain the following records for the periods specified:\n(3) A record of each inspection and test required by this subpart shall be maintained\nfor at least 2 years or until the next inspection or test is performed, whichever is\nlonger.\n§195.428 Overpressure safety devices and overfill protection systems.\n(a) Except as provided in paragraph (b) of this section, each operator shall, at\nintervals not exceeding 15 months, but at least once each calendar year, or in the\ncase of pipelines used to carry highly volatile liquids, at intervals not to exceed 71∕2\nmonths, but at least twice each calendar year, inspect and test each pressure limiting\ndevice, relief valve, pressure regulator, or other item of pressure control equipment\nto determine that it is functioning properly, is in good mechanical condition, and is\nadequate from the standpoint of capacity and reliability of operation for the service\nin which it is used.\nPhillips 66 failed to maintain a record of each inspection and test required under §195.428(a).\nSpecifically, Phillips 66 did not maintain a 2018 inspection record for the following overpressure\nsafety devices: PIT-1003, PIT-1404-01, PIT-1403-01, PIT-0704-02 and PIT-1704-02.\n2\n\n\n\n3. §195.573 What must I do to monitor external corrosion control?\n(d) Breakout tanks. You must inspect each cathodic protection system used to\ncontrol corrosion on the bottom of an aboveground breakout tank to ensure that\noperation and maintenance of the system are in accordance with API RP 651\n(incorporated by reference, see §195.3). However, this inspection is not required if\nyou note in the corrosion control procedures established under §195.402(c)(3) why\ncomplying with all or certain operation and maintenance provisions of API RP 651\nis not necessary for the safety of the tank.\nPhillips 66 failed to inspect each cathodic protection system used to control corrosion on the\nbottom of an aboveground breakout tank to ensure that the operation and maintenance of the\nsystem are in accordance with API RP 651. Specifically, Phillips 66 did not conduct annual\ncathodic protection (CP) surveys pursuant to API RP 651 on its Stanley breakout tanks in 2018.\nThe Phillips 66 technicians stated that there was some confusion as to which assets at the Stanley\nfacility, which was commissioned in 2017, were operated by Phillips 66 and what portions were\nDOT regulated. The technicians recorded some readings on the pipelines running to the\nbreakout tanks, but did not take CP readings of the tanks themselves during the 2018 CP annual\nsurvey. It was not until 2019, when Phillips 66’s 2019 annual survey showed recorded CP\nreadings on the tanks.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a\nrelated series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per\nday, with a maximum penalty not to exceed $2,000,000 for a related series of violations. We\nhave reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nPhillips 66 Pipeline LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2020-5028W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\n3\n\n\n\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: Jeff Blatchford, DOT Coordinator, Jeff.M.Blatchford@p66.com\n4","truncated":false,"body_characters":7551}