{"operation":"document","citation":"CPF 32021058WL","title":"DAKOTA MIDSTREAM — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-20","effective_on":null,"summary":"CLOSED warning letter citing 195.264(a), 195.402(a), 195.402(c)(12), 195.403(a), 195.404(c)(3), 195.430(a), 195.440(c), 195.440(i), 195.452(f)(1), 195.49, 195.507(b), 195.52(a)(2), 195.54(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021058wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021058wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021058wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021058WL","body":"Warning Letter involving DAKOTA MIDSTREAM. PHMSA's enforcement data identifies the cited regulations as 195.264(a),  195.402(a),  195.402(c)(12),  195.403(a),  195.404(c)(3),  195.430(a),  195.440(c),  195.440(i),  195.452(f)(1),  195.49,  195.507(b),  195.52(a)(2),  195.54(a). The case was opened on 2021-10-20 and is reported as closed as of 2021-10-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021058WL_Warning Letter_10202021_(21-200404).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021058WL/32021058WL_Warning%20Letter_10202021_(21-200404).pdf\n\n32021058WL_Warning Letter_10202021_(21-200404)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021058WL/32021058WL_Warning%20Letter_10202021_(21-200404)_text.pdf\n\n32021058WL_Warning Letter_10202021_(21-200404)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: heath@dakota-midstream.com, tim@dakota-midstream.com\nand kristopher@dakota-midstream.com\nOctober 20, 2021\nMr. Heath Norman & Mr. Tim Reynolds\nCo-Chief Executive Officers\nDakota Midstream\n708 Main St., 10th Floor,\nHouston, TX 77002\nCPF 3-2021-058-WL\nDear Mr. Norman & Mr. Reynolds:\nFrom March 18, April 8, May 18-20 and May 27, 2021, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant\nto Chapter 601 of 49 United States Code (U.S.C.) inspected your records (virtually) and field assets\nin Alexander, North Dakota.\nAs a result of the inspection, it appears that Dakota Midstream (DM) has committed a probable\nviolation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items\ninspected and the probable violation is as follows:\n1. § 195.49 Annual report.\n(a) Each operator must annually complete and submit DOT Form PHMSA F 7000-\n1.1 for each type of hazardous liquid pipeline facility operated at the end of the\nprevious year. An operator must submit the annual report by June 15 each year,\nexcept that for the 2010 reporting year the report must be submitted by August 15,\n2011. A separate report is required for crude oil, HVL (including anhydrous\nammonia), petroleum products, carbon dioxide pipelines, and fuel grade ethanol\npipelines. For each state a pipeline traverses, an operator must separately complete\nthose sections on the form requiring information to be reported for each state.\nBased on the inspection interview and PHMSA records, DM failed to submit timely annual reports\nas noted in the table below:\n\n\n\nItem Due Date Date Filed\n2018 Annual Report 6-15-19 8-2-19\n2019 Annual Report 6-15-20 7-28-20\n2. § 195.54 Accident reports.\n(a) Each operator that experiences an accident that is required to be reported under\n§ 195.50 must, as soon as practicable, but not later than 30 days after discovery of the\naccident, file an accident report on DOT Form 7000-1.\n§ 195.52 Immediate notice of certain accidents.\n(a) Notice requirements. At the earliest practicable moment following discovery, of a\nrelease of the hazardous liquid or carbon dioxide transported resulting in an event\ndescribed in § 195.50, but no later than one hour after confirmed discovery, the\noperator of the system must give notice, in accordance with paragraph (b) of this\nsection of any failure that:\n(2) Resulted in either a fire or explosion not intentionally set by the operator;\nDM failed to provide immediate notification and a 30-day accident report for a January 4, 2020\nfire at the Spackler tank farm. After mentioning the fire to a PHMSA inspector during the field\naudit, the operator filed a late accident report on May 19, 2021.\n3. § 195.264 Impoundment, protection against entry, normal/emergency venting or\npressure/vacuum relief for aboveground breakout tanks.\n(a) A means must be provided for containing hazardous liquids in the event of spillage\nor failure of an aboveground breakout tank.\nAs observed by a PHMSA inspector during the field audit, the Tank 9924 vent does not discharge\ndownward into the containment area. This was identified at the Wheatland Facility.\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\nmaintained for at least 2 years or until the next inspection or test is performed,\nwhichever is longer.\n\n\n\n§ 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 maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nAs noted during the inspection interview, DM failed to produce a record of the 2018 review of the\nemergency plan and procedures.\n5. §195.440 Public awareness.\n(a) . . .\n(i) The operator’s program documentation and evaluation of results must be available\nfor periodic review by appropriate regulatory agencies.\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\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(12) Establishing and maintaining liaison with fire, police, and other appropriate\npublic officials to learn the responsibility and resources of each government\norganization that may respond to a hazardous liquid or carbon dioxide pipeline\nemergency and acquaint the officials with the operator's ability in responding to\na hazardous liquid or carbon dioxide pipeline emergency and means of\ncommunication.\n§195.440 Public awareness.\n(a) . . .\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator\nprovides justification in its program or procedural manual as to why compliance with\nall or certain provisions of the recommended practice is not practicable and not\nnecessary for safety.\nAs noted during the inspection interview and a data response, DM failed to produce records for\nthe 2020 liaison activities they conducted. Specifically, a May 19, 2021 written data request was\nanswered verbally on May 27, 2021 stating that no records of their 2020 annual meeting with\nemergency management and emergency responders were found. Liaison records as required by\n195.402 (c) (12) and 195.440 and outlined in IBR API RP1162 section 4.4 are required.\n\n\n\nDM also failed to produce a record for the 2019 annual implementation review. Specifically,\nIBR API RP 1162 Section 8.3 requires an annual implementation review.\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\nmaintained for at least 2 years or until the next inspection or test is performed,\nwhichever is longer.\n§ 195.403 Emergency response training.\n(a) Each operator shall establish and conduct a continuing training program to\ninstruct emergency response personnel to:\n(1) Carry out the emergency procedures established under 195.402 that relate to\ntheir assignments;\n(2) Know the characteristics and hazards of the hazardous liquids or carbon\ndioxide transported, including, in case of flammable HVL, flammability of\nmixtures with air, odorless vapors, and water reactions;\n(3) Recognize conditions that are likely to cause emergencies, predict the\nconsequences of facility malfunctions or failures and hazardous liquids or carbon\ndioxide spills, and take appropriate corrective action;\n(4) Take steps necessary to control any accidental release of hazardous liquid or\ncarbon dioxide and to minimize the potential for fire, explosion, toxicity, or\nenvironmental damage; and\n(5) Learn the potential causes, types, sizes, and consequences of fire and the\nappropriate use of portable fire extinguishers and other on-site fire control\nequipment, involving, where feasible, a simulated pipeline emergency condition.\nAs noted and witnessed by two PHMSA inspectors during the inspection interview, DM failed to\nproduce documentation for the 2019 and 2020 emergency response training they conducted. The\nDM representative related that there were no records of emergency response training in 2019 and\n2020.\n7. § 195.430 Firefighting equipment.\nEach operator shall maintain adequate firefighting equipment at each pump station\nand breakout tank area. The equipment must be –\n(a) In proper operating condition at all times;\nAs noted during the inspection interview, DM failed to document portable fire extinguisher\nmonthly inspections individually for 2019 and 2020 but rather provided a master record stating\nthat the extinguishers were inspected. However, these records omitted details necessary to\nsubstantiate a compliant inspection. Specifically details necessary to determine that each\nextinguisher was inspected and is in good condition. In the absence of such information, a\ncompliant inspection to determine that the equipment is in good condition is not possible, and\ntherefore did not occur.\n\n\n\n8. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions drawn\nfrom results of the integrity assessments, and other maintenance and surveillance\ndata, and evaluation of consequences of a failure on the high consequence area. An\noperator must include, at minimum, each of the following elements in its written\nintegrity management program:\n(1) A process for identifying which pipeline segments could affect a high\nconsequence area;\nAs noted and witnessed by two PHMSA inspectors during the inspection interview, DM failed to\ndocument reviews for HCAs. HCA reviews were completed on an ongoing basis without\ndocumentation.\n9. § 195.507 Recordkeeping.\n(a) . . .\n(b) Records supporting an individual's current qualification shall be maintained\nwhile the individual is performing the covered task. Records of prior qualification\nand records of individuals no longer performing covered tasks shall be retained for\na period of five years.\nAs noted during the virtual June 15, 2021 data response, DM was unable to produce an operator\nqualification record for the pilot who inspected the ROW from January–June 2019. His earliest\nqualification record produced showed a qualification date of July 11, 2019. This equates to about\n13 patrols conducted without a qualification record.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related\nseries of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,\nthe maximum penalty may not exceed $222,504 per violation per day the violation persists, up to\na maximum of $2,225,034 for a related series of violations. For violation occurring on or after\nJuly 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022.\nWe have 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 items identified in this letter. Failure to do so will result in\nDakota Midstream being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\n3-2021-058WL. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive\nmaterial qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete\noriginal document you must provide a second copy of the document with the portions you believe\nqualify for confidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Mr. Kristopher Coe, Project Manager, Dakota Midstream, LLC, 1600 Broadway, Suite\n1300, Denver, CO 80202 (kristopher@Dakota-Midstream.com)","truncated":false,"body_characters":13415}