{"operation":"document","citation":"CPF 32021076NOA","title":"JAYHAWK PIPELINE LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-01","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3), 195.402(f).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021076noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021076noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021076noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021076NOA","body":"Notice of Amendment involving JAYHAWK PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(3),  195.402(f). The case was opened on 2021-10-01 and is reported as closed as of 2022-01-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021076NOA_Closure Letter_11122022_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Closure%20Letter_11122022_(21-207811).pdf\n\n32021076NOA_Closure Letter_11122022_(21-207811)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Closure%20Letter_11122022_(21-207811)_text.pdf\n\n32021076NOA_Notice of Amendment_10012021_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Notice%20of%20Amendment_10012021_(21-207811).pdf\n\n32021076NOA_Notice of Amendment_10012021_(21-207811)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Notice%20of%20Amendment_10012021_(21-207811)_text.pdf\n\n32021076NOA_Operator Response to Notice_10292021_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Operator%20Response%20to%20Notice_10292021_(21-207811).pdf\n\n32021076NOA_Notice of Amendment_10012021_(21-207811)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: greg.brown@chsinc.com; michelle.slyder@chsinc.com; and\nbpatton@jayhawkpl.com\nOctober 1, 2021\nMr. Greg Brown\nVice President and General Manager\nJayhawk Pipeline LLC\n803 Highway 212 S\nLaurel, MT 59044\nCPF 3-2021-076-NOA\nDear Mr. Brown:\nFrom March 15 through April 9, 2021, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected\nyour Operation and Maintenance (O&M) procedures for Jayhawk Pipeline LLC (Jayhawk).\nOn the basis of the Inspection, PHMSA has identified the apparent inadequacies found within the\ncompany’s plans or procedures, as described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the followingto provide safety during maintenance\nand normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nJayhawk’s procedure did not address the inspection of pipelines after an extreme weather\nevent or natural disaster, as required by § 195.414(a). Jayhawk personnel pointed to Section\n207.6 in the ROW section of the O&M, and Section 400 of the emergency manual, as the\nprocedures to address this requirement. The emergency manual did not cover the\nrequirement for inspection of pipeline after an extreme weather event or natural disaster,\nrather, it was focused on employee safety during a natural disaster. Section 207.6 of\nJayhawk’s O&M contained procedures on patrolling after a flooding incident, but the\nprocedure did not address any other natural disaster (e.g. landslide, earthquakes, etc.).\nAdditionally, the procedure did not address the inspection methods and the need for\n\n\n\nadditional assessments, the time period for those assessments, and the remediation options.\nJawhawk must amend its procedures to comply with the requiremnets of § 195.414.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the followingto provide safety during maintenance\nand normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nJayhawk’s procedures did not address how they will perform assessments of pipelines that\nare not currently subject to the requirements of § 195.452, as required by § 195.416.\nAt the time of PHMSA’s inspection, the integrity management program also addressed\nrepairs to pipelines that are not subject to § 195.452. However, there was nothing in the\nprocedures that specifically addressed how the proper assessment method for such segments\nwill be determined; how Jayhawk will handle other technology; the data analysis; and when\ndiscovery of conditions occurs for those sections of line pipe not subject to the requirements\nof § 195.452.\nJawhawk must amend its procedures to comply with the requirements of § 195.416.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the followingto provide safety during maintenance\nand normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nJayhawk’s procedures for Public Awareness did not sufficiently address the annual audit of\nthe program’s implementation, as required by § 195.440.\nAt the time of PHMSA’s inspection, the procedure stated in Section 9 that the “Public\nAwareness Audit Committee shall review documents such as Appendix B and F annually not\nto exceed 15 months. This review shall be for program implementation within the\norganization and furthering access if supplemental or enhanced efforts are necessary.” The\nprocedures did not contain guidance on how to document the following in accordance to\nsection 8.3 and Appendix E of API RP 1162, incorporated by reference:\n What awareness activities were planned for the year and what was accomplished\nduring the year;\n2\n\n\n\n What internal and external information was collected and reviewed by the\noperator;\n What decisions were made by the operator based on the information including the\naddition of supplemental messaging and;\n What is planned for the next year?\nThe procedure must be amended to comply with the requirements of § 195.440, and should\nalso indicate how Jayhawk personnel will document compliance with these requirements.\n4. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the followingto provide safety during maintenance\nand normal operations:\n(1) . . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nJayhawk’s procedures did not provide guidance on how they would monitor cathodic\nprotection of their breakout tank bottoms, as required by § 195.573. For instance, in the\nfield, Jayhawk personnel take readings at four quandrants of the tank and at the center of the\ntank if equipped with a permanent half cell. None of these actions were identified in the\nprocedures Section 703.\nJayhawk must amend its procedures to indentify how it would monitor cathodic protection of\nits breakout tank bottoms in accordance with API RP 651 and § 195.573.\n5. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(f) Safety-related condition reports. The manual required by paragraph (a) of this section\nmust include instructions enabling personnel who perform operation and maintenance\nactivities to recognize conditions that potentially may be safety-related conditions that\nare subject to the reporting requirements of § 195.55.\nJayhawk’s safety related condition procedures in Section 500 of the O&M manual did not\ncontain clear guidance on when a safety related condition report (SRCR) should be filed\nwhen related to a repair of an integrity management program anomaly. Section 502 of the\nO&M plan only addresses the differences between “Discovery” as it is used in SRCRs and\nhow it is used in the integrity management program. However, there is no guidance to\nspecifically indicate that a SRCR must be filed if a 20% or more pressure reduction is taken\nand the integrity repair cannot be completed within five days of determination or 10 days\nfrom the date of discovery as it pertains to SRCRs. During PHMSA’s inspection, it was\ndetermined that there was confusion about reporting SRCRs in those situations with anomaly\ndigs and the reporting requirements to PHMSA in the integrity management regulations.\nJayhawk must amend its procedures to comply with the requirements of § 195.402(f).\n3\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\nCompliance Proceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 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\n90 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 Jayhawk Pipeline LLC maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Greg A. Ochs, Director, Central Region, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 3-2021-076-NOA and, for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nGreg A. Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n4\n\n32021076NOA_Closure Letter_11122022_(21-207811)_text.pdf\n\nVIA ELECTRONIC MAIL TO: greg.brown@chsinc.com; michelle.slyder@chsinc.com;\nand bpatton@jayhawkpl.com\nJanuary 12, 2022\nMr. Greg Brown\nVice President\nJayhawk Pipeline LLC\n803 Highway 212 S\nLaurel, MT 59044\nRe: CPF 3-2021-076-NOA\nDear Mr. Brown:\nFrom March 15 through April 9, 2021, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected\nyour Operation and Maintenance (O&M) procedures for Jayhawk Pipeline LLC (Jayhawk). As a\nresult of the inspection, Jayhawk was issued a Notice of Amendment on October 1, 2021, which\nproposed amendment of your procedures.\nJayhawk submitted its amended procedures on December 21, 2021. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave 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, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":12193}