{"operation":"document","citation":"CPF 32021075WL","title":"JAYHAWK PIPELINE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-01","effective_on":null,"summary":"CLOSED warning letter citing 195.404(c)(3), 195.432(b), 195.452(k), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021075wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021075wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021075wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021075WL","body":"Warning Letter involving JAYHAWK PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.404(c)(3),  195.432(b),  195.452(k),  195.589(c). The case was opened on 2021-10-01 and is reported as closed as of 2021-10-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021075WL_Operator Response to Notice_10292021_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021075WL/32021075WL_Operator%20Response%20to%20Notice_10292021_(21-207811).pdf\n\n32021075WL_Warning Letter_10012021_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021075WL/32021075WL_Warning%20Letter_10012021_(21-207811).pdf\n\n32021075WL_Warning Letter_10012021_(21-207811)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021075WL/32021075WL_Warning%20Letter_10012021_(21-207811)_text.pdf\n\n32021075WL_Warning Letter_10012021_(21-207811)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: greg.brown@chsin.com; michelle.slyder@chsinc.com; and\nbpatton@jayhawkpl.com\nOctober 1, 2021\nMr. Greg Brown\nVice President\nJayhawk Pipeline LLC\n803 Highway 212 S\nLaurel, MT 59044\nCFR 3-2021-075-WL\nDear Mr. Brown:\nFrom March 15 through May 28, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected your records and facilties at multiple locations in Nebraska, Kansas, and Texas.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inpsected\nand the probable violations are:\n1. §195.404 Maps and records.\n(c) Each operator shall maintain the following recordsfor the periods specified;\n(3) A record of each inspection and test required by this subpart shall be maintained for\nat least 2 years or until the next inspectionor test is performed, whichever is longer.\nJayhawk Pipeline LLC (Jayhawk) did not maintain the inspection records for Tanks 4151 and\n4152 in El Dorado, Kansas.\nJayhawk leased these two tanks from a third party. Jayhawk indicated that the third party\nwas responsible for the inspections required by API 653 and could get those records.\nHowever, Jayhawk is considered the operator of the tanks and should have requested and\nmaintained those records during the time that they leased the tanks. Jayhawk recently ended\nthe lease and is no longer using those tanks.\n\n\n\n2. 3. §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 InternalInspection Interval) (incorporated by reference, see\n§195.3).However, if structural conditions prevent access to the tank bottom, itsintegrity\nmay be assessed according to a plan included in the operationsand maintenance manual\nunder §195.402(c)(3).The risk- based internal inspection procedures in API Std 653,\nsection 6.4.3 cannot be used to determine the internal inspection interval.\nSection 6.3.2.1 External Inspection requires that all tanks shall be given a visual\nexternal inspection by an authorized inspector. This inspection shall be called the\nexternal inspection and must be conducted at least every 5 years or RCA/4N years\n(where RCA is the difference between the measured shell thickness and the minimum\nrequired thickness in mils, and N is the shell corrosion rate in mils per year) whichever\nis less. Tanks may be in operation during this inspection.\nJayhawk did not inspect the external physical integrity of two in-service atmospheric within\nfive years as required by API 653 Section 6.3.2.1.\nDuring the records review, it was found that the following tanks exceeded the five year\ninspection interval:\n Tank 4433: Roth Station on the KAW pipeline system – September 11, 2013 and\nMay 29, 2019.\n Tank 2056: Chase Station – October 29, 2013 and May 30, 2019.\n§195.589 What corrosion control information do I have to maintain?\n(c) You must maintain a record of each analysis, check, demonstration, examination,\ninspection, investigation, review, survey, and test required by this subpart in sufficient\ndetail to demonstratethe adequacy of corrosion control measures or that corrosion\nrequiring control measures does not exist. You must retain these records for at least 5\nyears, except that records related to Secs. 195.569, 195.573(a)and (b), and\n195.579(b)(3)and (c) must be retained for as long as the pipeline remains in service.\nJayhawk did not maintain a record for the October 2020 internal corrosion coupon\nmonitoring for the Chase and Liberal districts. Specifically, the following locations were\nmissing the October 2020 internal corrosion coupon monitoring record:\nOperating Area Line Segement Last Inspection\nChase Chase to Lyons 3/10/2020\nLiberal Eubanks to Meade 4/4/2020\nLiberal Harper Ranch to Haviland 4/10/2020\nLiberal Hooker to Clawson 4/9/2020\nLiberal Liberal to Meade 4/14/2020\nLiberal Mead to Kismet 4/14/2020\n2\n\n\n\nLiberal Talogo to Liberal 4/14/2020\n4. §195.452 Pipeline integrity management in high consequence areas.\n(k) What methods to measure program effectiveness must be used? An operator's\nprogram must include methods to measure whether the program is effective in\nassessing and evaluating the integrity of each pipeline segment and in protecting the\nhigh consequence areas. See Appendix C of this part for guidance on methods that can\nbe used to evaluate a program's effectiveness.\nJayhawk did not conduct a Integrity Management Program effectiveness evaluation for 2019.\nJayhawk’s records appear to utilize the reduction in the risks as the primary means of\ndetermining program effectiveness. For 2019, Jayhawk documented in Section 10 of their\nannual report that they changed their risk model to a more comprehensive dynamic risk\nmodel and did not feel that doing a comparison with the previous risk model was prudent\nsince they were two different models. No other metrics were utilized to do an effectiveness\nreview for 2019.\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\nrelated series of violations. For violation occurring on or after January 11, 2021 and before May\n3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related 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.\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 item(s) identified in this letter. Failure to do so will result in\nJayhawk Pipeline LLC 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 3-2021-075-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).\n3\n\n\n\nSincerely,\nGregory A. Ochs\nDirector, Centyral Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n4","truncated":false,"body_characters":8368}