{"operation":"document","citation":"CPF 32021031NOA","title":"FLINT HILLS RESOURCES, LC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-04-23","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(e)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021031noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021031noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021031noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021031NOA","body":"Notice of Amendment involving FLINT HILLS RESOURCES, LC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(e)(3). The case was opened on 2021-04-23 and is reported as closed as of 2021-06-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021031NOA_Closure Letter_06112021_(21-210185).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021031NOA/32021031NOA_Closure%20Letter_06112021_(21-210185).pdf\n\n32021031NOA_Closure Letter_06112021_(21-210185)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021031NOA/32021031NOA_Closure%20Letter_06112021_(21-210185)_text.pdf\n\n32021031NOA_Notice of Amendment_04232021_(21-210185).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021031NOA/32021031NOA_Notice%20of%20Amendment_04232021_(21-210185).pdf\n\n32021031NOA_Notice of Amendment_04232021_(21-210185)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021031NOA/32021031NOA_Notice%20of%20Amendment_04232021_(21-210185)_text.pdf\n\n32021031NOA_Closure Letter_06112021_(21-210185)_text.pdf\n\nVIA ELECTRONIC MAIL TO: jeff.ramsey@fhr.com , and kim.gerold@fhr.com\nJune 11, 2021\nMr. Jeff Ramsey\nPresident and CEO\nFlint Hills Resources, LLC\n4111 E. 37th Street North\nWichita, KS 67220\nRe: CPF 3-2021-031-NOA\nDear Mr. Ramsey:\nFrom November 28, 2017, through September 7, 2018, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), and the Minnesota Office of Pipeline\nSafety (MNOPS) pursuant to Chapter 601 of 49 United States Code inspected Flint Hills\nResources, LC’s (FHR) procedures for its Minnesota and Southern Crude system and Northern\nOperations Group (NOG) subject to 49 CFR Part 195. As a result of the inspection, FHR was\nissued a Notice of Amendment on April 23, 2021, which proposed amendment of your\nprocedures.\nFHR submitted its amended procedures on May 20, 2021. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\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\n32021031NOA_Notice of Amendment_04232021_(21-210185)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: jeff.ramsey@fhr.com , and kim.gerold@fhr.com\nApril 23, 2021\nMr. Jeff Ramsey\nPresident and CEO\nFlint Hills Resources, LLC\n4111 E. 37th Street North\nWichita, KS 67220\nCPF 3-2021-031-NOA\nDear Mr. Ramsey:\nFrom November 28, 2017, through September 7, 2018, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), and the Minnesota Office of Pipeline\nSafety (MNOPS) pursuant to Chapter 601 of 49 United States Code Part 195, inspected Flint\nHills Resources, LC (FHR) procedures for its Minnesota and Southern Crude system and\nNorthern Operations Group (NOG).\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nFHR’s NOG procedures, as described below:\n\n\n\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies. This\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once\neach calendar year, and appropriate changes made a necessary to insure that the\nmanual is effective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at locations\nwhere operations and maintenance activities are conducted.\nFHR’s Operations and Maintenance (O&M) Liquids Manual (M1410.100, Version 34.0) fails to\nrequire an annual review, at intervals not exceeding 15 months, of the incorporated-by-reference\n“OPA 90 – Pipeline Facility Emergency Response Plan” (Emergency Response Plan), and is\ntherefore inadequate to comply with § 195.402(a). The O&M Liquids Manual, Section 2.2.7,\nreferences the Emergency Response Plan Section 2, “Initial Response Actions”. However, the\nEmergency Response Plan specifies a review once every 5 years in Section 1.2. FHR’s O&M\nLiquids Manual and associated records do not result in confirmation that Section 2 of the\nEmergency Response Plan has been reviewed once each calendar year, at intervals not exceeding\n15 months. While the O&M Liquids Manual does have a general scope and intent of an annual\nreview, not to exceed 15 months, the procedure does not specifically require a corresponding\nannual review of the Emergency Response Plan.\nThe O&M Liquids Manual and Emergency Response Plan must be amended to adequately\naddress the annual review requirements of § 195.402(a).\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies. This\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once\neach calendar year, and appropriate changes made a necessary to insure that the\nmanual is effective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at locations\nwhere operations and maintenance activities are conducted.\nFHR’s O&M Liquids Manual fails to require verification of emergency contacts during the\nannual review at intervals not exceeding 15 months as required by § 195.402(a). The O&M\nLiquids Manual, Section 6.15.2, states, “A review of the notification requirements and\nemergency numbers (both within the Company and with outside agencies) should be included in\nthe discussion and review.” The O&M Liquids Manual, Section 2.2.3, references, “OPA 90 -\n2\n\n\n\nPipeline Facility Emergency Response Plan”, which includes emergency contact information in\nSection 3, “Notifications/Telephone Numbers”. However, the O&M Liquids Manual does not\nrequire that the emergency contacts identified in the Pipeline Facility Response Plan be\nreviewed, confirmed or changed as necessary to ensure the manual is effective.\nThe O&M Liquids Manual must be amended to adequately address the handling of emergencies\nrequirement of § 195.402(a).\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies. This\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once\neach calendar year, and appropriate changes made a necessary to insure that the\nmanual is effective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at locations\nwhere operations and maintenance activities are conducted.\nFHR’s O&M Liquids Manual is inadequate as it does not contain a cross reference to specific\nEmergency Response Plans and applicable zones. Both Section 2.2.3 and Section 2.2.7 of the\nO&M Liquids Manual reference the Emergency Response Plan. However, FHR has an\nEmergency Response Plan for each zone: The Wood River Zone and the Minnesota Zone. The\nO&M Liquids Manual does not indicate when the applicable zone is to be utilized for emergency\nresponse. Each of these zones have different emergency contacts and notifications.\nThe O&M Liquids Manual must be amended to adequately address the handling of emergencies\nrequirement of § 195.402(a).\n4. § 195.402 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies. This\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once\neach calendar year, and appropriate changes made a necessary to insure that the\nmanual is effective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at locations\nwhere operations and maintenance activities are conducted.\n3\n\n\n\nFHR’s O&M Liquids Manual, Section 6.13, fails to adequately address verification of\nemergency response training for supervisors, and is therefore inadequate to comply with the\nrequirements of § 195.403(c). While the process indicates that supervisors are to be trained in\nemergency response procedures for which they are responsible, the procedures failed to address\nhow FHR verifies supervisors’ thorough knowledge of the emergency response procedures for\nwhich they are responsible.\nFHR commented that, while it is not outlined in any written procedure, supervisors do participate\nin, or are required to have, training identified in VTA Learner, such as Emergency Response\nInitial Actions Course (SAFTML132), and to participate in drills. In addition, FHR’s\nEmergency Response Plan does require additional training for Qualified Individuals. However,\nthe procedures failed to address how FHR verifies supervisors’ thorough knowledge of the\ndifferent responsibilities identified in the Emergency Response Plan. Moreover, the respective\nEmergency Response Plans, the Minnesota Zone plan and the Wood River Zone plan, identified\nthree different “types” of supervisors with different responsibilities: Division Supervisors\n(DIVS) Responsibilities, Supervisors, listed in “Common Responsibilities,” and Operations\nSupervisors, that are Qualified Individuals, identified in Section 4.5. FHR failed to make any\ndelineation, if any, between the different supervisors as to what trainings they would need and\nhow to verify each supervisor’s knowledge of the respective emergency response procedures.\nFHR must amend its procedures to adequately address the requirements of § 195.402(a) to\nrequire verification of supervisor training under § 195.403(c).\n5. § 195.402 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies. This\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once\neach calendar year, and appropriate changes made a necessary to insure that the\nmanual is effective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at locations\nwhere operations and maintenance activities are conducted.\nFHR’s O&M Liquids Manual fails to adequately identify which valves are necessary for the safe\noperation of its pipeline system, and is therefore inadequate to comply with the requirements of §\n195.420(a). During the inspection, FHR failed to provide any procedure that explained how\nFHR determined valves to be necessary for the safe operation of the pipeline system, or who\nmakes this determination.\nFHR must amend its procedures to adequately address the requirements of § 195.420(a).\n4\n\n\n\n6. § 195.402 Procedural manual for operations, maintenance, and emergencies\n(a) . . .\n(e) Emergencies. The manual required by paragraph (a) of this section must\ninclude procedures for the following to provide safety when an emergency\ncondition occurs:\n(3) Having personnel, equipment, instruments, tools, and material available as\nneeded at the scene of an emergency.\nFHR’s O&M Liquids Manual fails to address having personnel, equipment, instruments, tools,\nand material available as needed at the scene of an emergency relevant to employees, and is\ntherefore inadequate to comply with the requirements of § 195.402(e)(3). Section 2.2.1 of the\nO&M Liquids Manual states, “This procedure is intended to cover emergency situations\ngenerally, and applies to Company personnel.”\nFHR’s O&M Liquids Manual, Section 3.2.16 establishes the steps FHR will take to minimize the\nlikelihood of accidental ignition of vapors, but fails to specify any equipment, instruments, or\ntools FHR will provide when an emergency condition occurs.\nIn addition to the procedure sections outlined above, the Oil Spill Removal Organization\n(OSRO) equipment list outlined in Appendix B of the Emergency Response Plan does not\nindicate equipment that would be required by company personnel in the event of an emergency.\nAlthough FHR’s procedures reference OSRO emergency responder personnel and equipment,\nthe procedures do not reference equipment, instruments, or tools that could be made available\nwhen an emergency condition occurs. For example, neither the O&M Liquids Manual or the\nEmergency Response Plan had specific procedures that reference air-monitoring equipment and\nits use.\nFHR must amend their procedures to adequately address the requirements of § 195.402(e)(3).\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\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 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).\n5\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\n60 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 Flint Hills Resources, LC maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Gregory A. Ochs, Director,\nCentral Region, Pipeline and Hazardous Materials Safety Administration. In correspondence\nconcerning this matter, please refer to CPF 3-2021-031-NOA and, for each document you\nsubmit, 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: Kimberly A. Gerold, Manager, Pipeline Safety, kim.gerold@fhr.com\n6","truncated":false,"body_characters":15737}