{"operation":"document","citation":"CPF 32021013WL","title":"SAVAGE BAKKEN CONNECTOR, INC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-17","effective_on":null,"summary":"CLOSED warning letter citing 195.208, 195.403(c), 195.404(c)(3), 195.440(i), 195.452(h)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021013wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021013wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021013wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021013WL","body":"Warning Letter involving SAVAGE BAKKEN CONNECTOR, INC. PHMSA's enforcement data identifies the cited regulations as 195.208,  195.403(c),  195.404(c)(3),  195.440(i),  195.452(h)(1). The case was opened on 2021-03-17 and is reported as closed as of 2021-03-17. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021013WL_Warning Letter_03172021_(20-196647).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021013WL/32021013WL_Warning%20Letter_03172021_(20-196647).pdf\n\n32021013WL_Warning Letter_03172021_(20-196647)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021013WL/32021013WL_Warning%20Letter_03172021_(20-196647)_text.pdf\n\n32021013WL_Warning Letter_03172021_(20-196647)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: BradC@savageservices.com and\nKevinBurke@savageservices.com\nMarch 17, 2021\nMr. Brad Crist\nSector President, Savage Energy & Chemical\nSavage Bakken Connector, Inc.\n901 W Legacy Center Way\nMidvale, UT 84047\nCPF 3-2021-013-WL\nDear Mr. Crist:\nOn February 18, 2020 through November 6, 2020, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected your procedures for operations and maintenance, operator\nqualification, public awareness, damage prevention, facilities and storage, time dependent\nthreats, and emergency response in Williston, North Dakota.\nAs a result of the inspection, it is alleged that you have committed probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item(s) inspected\nand the probable violation(s) are:\n\n\n\n1. §195.208 Welding of supports and braces.\nSupports or braces may not be welded directly to pipe that will be operated at a\npressure of more than 100 p.s.i. (689 kPa) gage.\nSavage failed to comply with 195.208 regarding supports or braces may not be welded\ndirectly to pipe that will be operated at a pressure of more than 100 p.s.i. (689 kPa) gage.\nPHMSA, during the field audit of the Dakota Access Pipeline Interconnect pump station,\ndiscovered pipe supports welded directly to piping. A total of two welded braces were\nfound.\n2. §195.403 Emergency response training.\n(c) Each operator shall require and verify that its supervisors maintain a thorough\nknowledge of that portion of the emergency response procedures established under\n195.402 for which they are responsible to ensure compliance.\nBased on the inspection interview, Savage failed to produce records that require and\nverify that its supervisors maintain a thorough knowledge of that portion of the\nemergency response procedures established under 195.402 for which they are responsible\nto ensure compliance. Savage failed to provide records that the supervisor had the\nthorough knowledge required.\n3. §195.404 Maps and records.\n(a). . .\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§195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies. This manual shall be reviewed at\nintervals not exceeding 15 months, but at least once each calendar year, and appropriate\nchanges made as necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline system commence, and appropriate parts\nshall be kept at locations where operations and maintenance activities are conducted.\nBased on the inspection interview, Savage failed to produce documents to support\nmanual reviews at intervals not exceeding 15 months, but at least once each calendar\n2\n\n\n\nyear, and log appropriate changes made as necessary to insure that the manual is\neffective. Savage was unable to produce any records showing annual manual reviews\nwere completed since the in-service date of June 2018. A total of two records were\nmissing as described in the table below:\nReview Year Record Status Comments\nIn – service date 6-2-2017 NA\n2018 Missing\n2019 Missing\n2020 Not due yet.\n4. §195.404 Maps and records.\n(a). . .\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§195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(13) Periodically reviewing the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance and taking\ncorrective action where deficiencies are found.\nBased on the inspection interview, Savage failed to produce documents to support the\neffectiveness of the procedures used in normal operation and maintenance and taking\ncorrective action where deficiencies are found. Savage was unable to produce any records\nshowing periodic review of work done by operator personnel to determine the\neffectiveness of the procedures since the in-service date of June 2017. A total of two\nrecords were missing as described in the table below:\nReview Year Record Status Comments\nIn – service date 6-2-2017 NA\n2018 Missing\n2019 Missing\n3\n\n\n\n5. §195.404 Maps and records.\n(a). . .\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§195.403 Emergency response training.\n(b) At the intervals not exceeding 15 months, but at least once each calendar year, each\noperator shall:\n(2) Make appropriate changes to the emergency response training program as necessary\nto ensure that it is effective.\nBased on the inspection interview, Savage failed to produce documents to support\nappropriate changes to the emergency response training program as necessary to ensure\nthat it is effective at the intervals not exceeding 15 months, but at least once each\ncalendar year. Savage failed to provide records for two annual training periods as\ndescribed in the table below:\nReview Year Record Status Comments\nIn – service date 6-2-2017 NA\n2018 Missing\n2019 Missing\n6. §195.404 Maps and records\n(a). . .\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.\n4\n\n\n\n§195.432 Inspection of in-service breakout tanks.\n(a) . . .\n(b) Each operator must inspect the physical integrity of in-service atmospheric and low-\npressure steel above-ground breakout tanks according to API Std 653 (except section\n6.4.3, Alternative Internal Inspection Interval) (incorporated by reference, see §195.3).\nHowever, if structural conditions prevent access to the tank bottom, its integrity may be\nassessed according to a plan included in the operations and maintenance manual under\n§195.402(c)(3). The risk-based internal inspection procedures in API Std 653, section\n6.4.3 cannot be used to determine the internal inspection interval.\nBased on the inspection interview, Savage failed to produce documents to support the\nrequirements of API Std, section 6.3.1 Routine In-Service Inspections. Savage provided\n“weekly BOT walkthrough” documents that indicate only leaks were looked for during\nthe “weekly BOT walkthrough” documents. Savage failed to incorporate API 653,\nsection 6.3.1 Routine In-Service Inspections, requiring shell distortions; signs of\nsettlement; corrosion; and condition of the foundation, paint coatings, insulation systems,\nand appurtenances should be documented for follow-up action since the in-service date of\nJune 2017 through December 2019:\n2018 (BOT 201,202,203,204,205) Incomplete 60\n2019 (BOT 201,202,203,204,205) Review Year Record Status Total\n2017 (BOT 201,202,203,204,205) Incomplete 60\nIncomplete 60\n7. §195.440 Public awareness\n(a) …\n(i) The operator’s program documentation and evaluation results must be available\nfor periodic review by appropriate regulatory agencies.\nBased on the inspection interview, Savage failed to provide records that implemented a\nwritten continuing public education program that follows the guidance provided in the\nAmerican Petroleum Institute's (API) Recommended Practice (RP) 1162 (incorporated by\nreference, see §195.3).. Specifically, Savage failed to follow Section 8.3, of API RP\n1162, by not documenting annual reviews for 2018 and 2019.\n8. §195.440 Public awareness\n(a) …\n(i) The operator’s program documentation and evaluation results must be available\nfor periodic review by appropriate regulatory agencies.\n5\n\n\n\nBased on the inspection interview, Savage failed to provide a record that implemented\ngeneral program recommendations, including baseline and supplemental requirements of\nAPI RP 1162, unless the operator provides justification in its program or procedural\nmanual as to why compliance with all or certain provisions of the recommended practice\nis not practicable and not necessary for safety.\nSavage participated in NDPA and PAPA. PHMSA requested records for the Affected\nPublic stakeholders. PHMSA inspectors were informed, by Savage, that there are six\naffected public landowners. Savage never provided records regarding the six affected\npublic landowners.\n9. §195.440 Public awareness\n(a) …\n(i) The operator’s program documentation and evaluation results must be available\nfor periodic review by appropriate regulatory agencies.\nBased on the inspection interview, Savage failed to produce records that advised affected\nmunicipalities, school districts, businesses, and residents of pipeline facility locations.\nSavage participated in NDPA and PAPA. PHMSA requested records for the affected\nmunicipalities, school districts, businesses, and residents of pipeline facility locations.\nSavage responded with a doorhanger and a pipeline information insert. Based on\nSavage’s response, PHMSA could not determine if affected municipalities, school\ndistricts, businesses, and residents of pipeline facility locations were advised. Savage\nneeds to request this information from NDPA/ PAPA.\n10. §195.440 Public awareness\n(a) …\n(i) The operator’s program documentation and evaluation results must be available\nfor periodic review by appropriate regulatory agencies.\nBased on the inspection interview, Savage failed to provide records that established and\nmaintained liaison with fire, police, and other appropriate public officials to learn the\nresponsibility and resources of each government organization that may respond to a\nhazardous liquid or carbon dioxide pipeline emergency and acquaint the officials with the\noperator's ability in responding to a hazardous liquid or carbon dioxide pipeline\nemergency and means of communication.\nSavage participates in NDPA and PAPA. PHMSA requested records that establish and\nmaintain liaison with fire, police, and other appropriate public officials to learn the\nresponsibility and resources of each government organization that may respond to a\nhazardous liquid or carbon dioxide pipeline emergency and acquaint the officials with the\noperator's ability in responding to a hazardous liquid or carbon dioxide pipeline\nemergency and means of communication. Savage submitted “Pipeline Association for\n6\n\n\n\nPublic Awareness Information for PHMSA PAP inspection questions” section 2.06 which\nstates:\n2.06 Maintaining Liaison with Emergency Response Officials\n• Examine the documentation to determine how the operator maintains a relationship with\nappropriate emergency officials.\n• Verify the operator has made its emergency response plan available, as appropriate and\nnecessary, to emergency response officials.\n• Identify the operator’s expectations for emergency responders and identify whether the\nexpectations are the same for all locations or does it vary depending on locations.\n• Identify how the operator determined the affected emergency response organizations\nhave adequate and proper resources to respond.\n• Identify how the operator ensures that information was communicated to emergency\nresponders that did not attend training/information sessions by the operator.\nMerriam-Webster defines liaison as: “communication for establishing and maintaining\nmutual understanding and cooperation”. The communications must solicit an exchange\nof information regarding an understanding about cooperation on specific matters or\nactivities and can be accomplished through: in person meetings, email communications,\nvia the internet, over the telephone, through regular mail, etc.\nAn ongoing relationship is maintained with emergency responders through the annual\nbaseline communication which is delivered via direct mail. The packet of information\nincludes: Pipeline Emergency Response Guidelines booklet, Public Officials Newsletter\nand a custom cover letter by county listing the members in that county.\nBased on Savage’s submittal, PHMSA could not determine that Savage is Establishing\nand maintaining liaison with fire, police, and other appropriate public officials to learn\nthe responsibility and resources of each government organization that may respond to a\nhazardous liquid or carbon dioxide pipeline emergency and acquaint the officials with the\noperator's ability in responding to a hazardous liquid or carbon dioxide pipeline\nemergency and means of communication. Savage needs to request this information from\nNDPA/ PAPA and maintain the information.\n11. §195.452 Pipeline integrity management in high consequence areas.\n(h) What actions must an operator take to address integrity issues?—(1) General\nrequirements. An operator must take prompt action to address all anomalous\nconditions the operator discovers through the integrity assessment or information\nanalysis. In addressing all conditions, an operator must evaluate all anomalous\nconditions and remediate those that could reduce a pipeline's integrity. An operator\nmust be able to demonstrate that the remediation of the condition will ensure the\n7\n\n\n\ncondition is unlikely to pose a threat to the long-term integrity of the pipeline. An\noperator must comply with §195.422 when making a repair.\nBased on the inspection interview, Savage failed to 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 integrity. An\noperator must be able to demonstrate that the remediation of the condition will ensure the\ncondition is unlikely to pose a threat to the long-term integrity of the pipeline. An\noperator must comply with §195.422 when making a repair.\nSavage had active corrosion discovered, in several locations, after two atmospheric\ncorrosion surveys “Trenton Savage Rail Tank Farm”and “Trenton Savage Rail DAPL\nRFL Pipeline”, dated 7-21-2020 were completed. On the week of October12, 2020, a\nPHMSA Representative discovered a 24” exposed pipe with active corrosion at the Tank\nFarm Inlet Manifold Road Crossing. This same anamolaus condition was discovered\nduring the two atmospheric corrosion surveys dated 7-21-2020. Savage shall take\nimmediate action to address the pipe corrosion to maintain the pipeline’s integrity.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$209,002 per violation per day the violation persists up to a maximum of $2,090,022 for a\nrelated series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the item(s) identified in this letter.\nFailure to do so will result in Savage Bakken Connector, Inc. being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2021-013-WL. 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).\nSincerely,\nGregory A. Ochs\nDirector, Central Region OPS\nPipeline and Hazardous Materials Safety Administration\nCc: KevinBurke@savageservices.com Kevin Burke, Senior Vice President, Industry Unit\nLeader, 901 W Legacy Center Way, Midvale, UT 84047\n8","truncated":false,"body_characters":17399}