{"operation":"document","citation":"CPF 32021035WL","title":"U.S. VENTURE, INC. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-08-25","effective_on":null,"summary":"CLOSED warning letter citing 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021035wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021035wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021035wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021035WL","body":"Warning Letter involving U.S. VENTURE, INC.. PHMSA's enforcement data identifies the cited regulation as 195.432(b). The case was opened on 2021-08-25 and is reported as closed as of 2021-08-25. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021035WL_Warning Letter_08252021_(20-172201).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021035WL/32021035WL_Warning%20Letter_08252021_(20-172201).pdf\n\n32021035WL_Warning Letter_08252021_(20-172201)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021035WL/32021035WL_Warning%20Letter_08252021_(20-172201)_text.pdf\n\n32021035WL_Warning Letter_08252021_(20-172201)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: ekessenich@usoil.com, dmorrill@usoil.com and\nmbriggs@usoil.com\nAugust 25, 2021\nEric Kessenich\nPresident of U.S. Oil\nU.S. Venture, Inc.\n425 Better Way\nAppleton, WI 54915\nCPF 3-2021-035-WL\nDear Mr. Kessenich:\nFrom October 5 through October 8, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your U.S. Venture, Inc. Green Bay Products System in Green Bay, WI.\nAs a result of the inspection, it is alleged that you have committed probable violation(s) of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n1. § 195.432 - Inspection of in-service breakout tanks.\n(b) Each operator must inspect the physical integrity of in-service atmospheric and\nlow-pressure steel above-ground breakout tanks according to API Std 653 (except\nsection 6.4.3, Alternative Internal Inspection Interval) (incorporated by reference,\nsee § 195.3). However, if structural conditions prevent access to the tank bottom, its\nintegrity may be assessed according to a plan included in the operations and\nmaintenance manual under § 195.402(c)(3). The risk-based internal inspection\nprocedures in API Std 653, section 6.4.3 cannot be used to determine the internal\ninspection interval.\nUS Ventures failed to perform an internal re-inspection of tank #1428 at the required\ninterval as specified in API 653. Specifically, section 6.4.2.2 of API 653 states: When\ncorrosion rates are not known and similar service experience is not available to estimate\nthe bottom plate minimum thickness at the next inspection, the internal inspection\ninterval shall not exceed 10 years.\n\n\n\n2\nThe tank is used to supply a the truck rack and utilization rates are high. U.S. Oil\nextended the out-of-service (OOS) inspection for 1 year to 5/2021 based on their\nconsultants estimated corrosion rate. The OOS internal inspection for the tank was\nperformed in May of 2010 and since the actual corrosion rates were not known, the next\ninternal inspection should have been conducted in May of 2020.\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\nU.S. Venture, Inc. 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 3-2021-035-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 Ochs\nDirector, Central, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Dan Morrill, Vice President Terminal Operations, dmorrill@usoil.com,\nMelodie Briggs, Compliance Manager, U.S. Oil, mbriggs@usoil.com","truncated":false,"body_characters":4956}