{"operation":"document","citation":"CPF 32021050NOA","title":"BOE MIDSTREAM — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-06","effective_on":null,"summary":"CLOSED notice of amendment citing 195.222(a), 195.234(b)(2), 195.402(e)(3), 195.402(e)(5), 195.402(e)(6), 195.402(e)(7), 195.440(a), 195.452(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021050noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021050noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021050noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021050NOA","body":"Notice of Amendment involving BOE MIDSTREAM. PHMSA's enforcement data identifies the cited regulations as 195.222(a),  195.234(b)(2),  195.402(e)(3),  195.402(e)(5),  195.402(e)(6),  195.402(e)(7),  195.440(a),  195.452(b)(1). The case was opened on 2021-10-06 and is reported as closed as of 2021-11-04. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021050NOA_Closure Letter_11042021_(21-200403).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021050NOA/32021050NOA_Closure%20Letter_11042021_(21-200403).pdf\n\n32021050NOA_Closure Letter_11042021_(21-200403)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021050NOA/32021050NOA_Closure%20Letter_11042021_(21-200403)_text.pdf\n\n32021050NOA_Notice of Amendment_10062021_(21-200403).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021050NOA/32021050NOA_Notice%20of%20Amendment_10062021_(21-200403).pdf\n\n32021050NOA_Notice of Amendment_10062021_(21-200403)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021050NOA/32021050NOA_Notice%20of%20Amendment_10062021_(21-200403)_text.pdf\n\n32021050NOA_Operator Response to Notice_10132021_(21-200403).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021050NOA/32021050NOA_Operator%20Response%20to%20Notice_10132021_(21-200403).pdf\n\n32021050NOA_Closure Letter_11042021_(21-200403)_text.pdf\n\nVIA ELECTRONIC MAIL TO: mos@everdesk.com and BMcDowell@BOEMidstream.com\nNovember 04, 2021\nMr. Michael O’Shaughnessy\nPresident/CEO\nBOE Midstream\n8301 E. 21st Street North, Suite 420\nWichita, KS 67206\nRe: CPF 3-2021-050-NOA\nDear Mr. O’Shaughnessy:\nOn January 26, March 10-12, March 29-31, and April 21-22, 2021, 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 BOE Midstream’s\n(BOE) procedures virtually and in Dickinson, ND. As a result of the inspection, BOE was issued\na Notice of Amendment on October 6, 2021, which proposed amendment of your procedures.\nBOE submitted its amended procedures on October 13 and November 3, 2021. My staff\nreviewed the amended procedures, and it appears that the inadequacies outlined in this Notice of\nAmendment 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\nCC: Mr. Brandon McDowell, Director – ND Operations & Regulatory Compliance, 8301 E.\n21st Street North, Suite 420, Wichita, KS 67206, BMcDowell@BOEMidstream.com\n\n32021050NOA_Notice of Amendment_10062021_(21-200403)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: mos@everdesk.com and BMcDowell@BOEMidstream.com\nOctober 6, 2021\nMr. Michael O’Shaughnessy\nPresident/CEO\nBOE Midstream\n8301 E. 21st Street North, Suite 420\nWichita, KS 67206\nCPF 3-2021-050-NOA\nDear Mr. O’Shaughnessy:\nOn January 26, March 10-12, March 29-31, and April 21-22, 2021, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of\n49 United States Code inspected BOE Midstream’s (BOE) procedures for operations and\nmaintenance, integrity management, damage prevention, public awareness and design and\nconstruction virtually.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nBOE’S plans or procedures, as described below:\n1. § 195.222 Welders and welding operators: Qualification of welders and welding\noperators.\n(a) Each welder or welding operator must be qualified in accordance with section 6,\nsection 12, Appendix A or Appendix B of API Std 1104 (incorporated by reference,\nsee § 195.3), or section IX of the ASME Boiler and Pressure Vessel Code (ASME\nBPVC), (incorporated by reference, see § 195.3) except that a welder or welding\noperator qualified under an earlier edition than listed in § 195.3, may weld but may\nnot requalify under that earlier edition.\n\n\n\nBOE’s procedures were inadequate because O&M Section 7.2.1 Leak Repair and 7.2.2\nCorrosion Repair allow welders to be qualified to API 1107. Before the end of the inspection\nBOE submitted amended procedures that comply with regulations. No further action is needed.\n2. § 195.234 Welds: Nondestructive testing.\n(a) . . . .\n(b) Any nondestructive testing of welds must be performed—\n(2) With personnel that have been trained in the established procedures and in the\nuse of the equipment employed in the testing.\nBOE’s procedures were inadequate because there was no procedure stating the qualification\nrequirements for non-destructive testing personnel. BOE must amend its procedures to meet the\nrequirements of § 195.234(b)(2).\n3. § 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 condition\noccurs;\n(3) Having personnel, equipment, instruments, tools, and material available as\nneeded at the scene of an emergency.\nBOE’s procedures were inadequate because the emergency plan contractor list was not accurate.\nBefore the end of the inspection BOE submitted amended procedures that comply with\nregulations. No further action is needed.\n4. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(e) Emergencies. The manual required by paragraph (a) of this section must include\nprocedures for the following to provide safety when an emergency condition occurs;\n(5) Control of released hazardous liquid or carbon dioxide at an accident scene to\nminimize the hazards, including possible intentional ignition in the cases of\nflammable highly volatile liquid.\nBOE’s procedures were inadequate because there was no procedure covering the control of\nreleased hazardous liquid at an accident scene. Before the end of the inspection BOE submitted\namended procedures that comply with regulations. No further action is needed.\n5. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(e) Emergencies. The manual required by paragraph (a) of this section must include\nprocedures for the following to provide safety when an emergency condition occurs;\n(6) Minimization of public exposure to injury and probability of accidental ignition\nby assisting with evacuation of residents and assisting with halting traffic on roads\nand railroads in the affected area, or taking other appropriate action.\n2\n\n\n\nBOE’s procedures were inadequate because there was no procedure covering minimization of\npublic exposure at an accident. Before the end of the inspection BOE submitted amended\nprocedures that comply with regulations. No further action is needed.\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 include\nprocedures for the following to provide safety when an emergency condition occurs;\n(7) Notifying fire, police, and other appropriate public officials of hazardous liquid\nor carbon dioxide pipeline emergencies and coordinating with them preplanned and\nactual responses during an emergency, including additional precautions necessary\nfor an emergency involving a pipeline system transporting a highly volatile liquid.\nBOE’s procedures were inadequate because there was no procedure covering the criteria for\nnotifying public officials in the event of an emergency. Before the end of the inspection BOE\nsubmitted amended procedures that comply with regulations. No further action is needed.\n7. § 195.440 Public awareness.\n(a) Each pipeline operator must develop and implement a written continuing public\neducation program that follows the guidance provided in the American Petroleum\nInstitute's (API) Recommended Practice (RP) 1162 (incorporated by reference, see §\n195.3).\nBOE’s procedures were inadequate because there was no statement of management support for\nthe public awareness program as required by Section 2.5 of API RP 1162. BOE submitted a\nstatement of management support on April 30, 2021 that is inadequate because there is no\nstatement regarding commitment of management participation and allocation of resources and\nfunding and was not signed by a senior management executive. BOE must further amend its\nprocedures to meet the requirements of Section 2.5 of API RP 1162.\n8. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(b) What program and practices must operators use to manage pipeline integrity? Each\noperator of a pipeline covered by this section must:\n(1) Develop a written integrity management program that addresses the risks on\neach segment of pipeline in the first column of the following table no later than the\ndate in the second column:\nPipeline Date\nCategory 1 March 31, 2002.\nCategory 2 February 18, 2003.\nCategory 3 Date the pipeline begins oper-ation or as provided in §195.12 for low\nstress pipe-lines in rural areas.\n(g) What is an information analysis? In periodically evaluating the integrity of each\npipeline segment (see paragraph (j) of this section), an operator must analyze all available\ninformation about the integrity of its entire pipeline and the consequences of a possible\n3\n\n\n\nfailure along the pipeline. Operators must continue to comply with the data integration\nelements specified in §195.452(g) that were in effect on October 1, 2018, until October 1,\n2022. Operators must begin to integrate all the data elements specified in this section\nstarting October 1, 2020, with all attributes integrated by October 1, 2022. This analysis\nmust:\n(1) Integrate information and attributes about the pipeline that include, but are not limited\nto:\n(i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (xi) (xii) (xiii) (xiv) (xv) Pipe diameter, wall thickness, grade, and seam type;\nPipe coating, including girth weld coating;\nMaximum operating pressure (MOP) and temperature;\nEndpoints of segments that could affect high consequence areas (HCAs);\nHydrostatic test pressure including any test failures or leaks - if known;\nLocation of casings and if shorted;\nAny in-service ruptures or leaks - including identified causes;\nData gathered through integrity assessments required under this section;\nClose interval survey (CIS) survey results;\n(x) Depth of cover surveys;\nCorrosion protection (CP) rectifier readings;\nCP test point survey readings and locations;\nAC/DC and foreign structure interference surveys;\nPipe coating surveys and cathodic protection surveys.\nResults of examinations of exposed portions of buried pipelines (i.e., pipe and\npipe coating condition, see §195.569);\n(xvi) Stress corrosion cracking (SCC) and other cracking (pipe body or weld)\nexcavations and findings, including in- situ non-destructive examinations and\nanalysis results for failure stress pressures and cyclic fatigue crack growth\nanalysis to estimate the remaining life of the pipeline;\n(xvii) aerial photography;\n(xviii) Location of foreign line crossings;\n(xix) Pipe exposures resulting from repairs and encroachments;\n(xx) Seismicity of the area; and\n(xxi) Other pertinent information derived from operations and maintenance activities\nand any additional tests, inspections, surveys, patrols, or monitoring required\nunder this part.\nBOE’s procedures were inadequate because no updates have been made to begin integration of\nthe new data elements requirements under § 195.452(g), as amended on October 1, 2019. BOE\nmust amend its procedures to meet the requirements of Amendment. 195-102, 84 FR 52260, Oct.\n1, 2019 which were effective October 1, 2020 for § 195.452(g).\n4\n\n\n\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).\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 BOE Midstream maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Gregory A. Ochs, Director, Central Region, OPS,\nPipeline and Hazardous Materials Safety Administration. In correspondence concerning this\nmatter, please refer to CPF 3-2021-050-NOA and, for each document you submit, please\nprovide 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. Brandon McDowell, Director – ND Operations & Regulatory Compliance, 8301 E.\n21st Street North, Suite 420, Wichita, KS 67206, BMcDowell@BOEMidstream.com\n5","truncated":false,"body_characters":14419}