# JAYHAWK PIPELINE LLC — Notice of Amendment

- **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:** Not available
- **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.

Official case documents:

32021076NOA_Closure Letter_11122022_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Closure%20Letter_11122022_(21-207811).pdf

32021076NOA_Closure Letter_11122022_(21-207811)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Closure%20Letter_11122022_(21-207811)_text.pdf

32021076NOA_Notice of Amendment_10012021_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021076NOA/32021076NOA_Notice%20of%20Amendment_10012021_(21-207811).pdf

32021076NOA_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

32021076NOA_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

32021076NOA_Notice of Amendment_10012021_(21-207811)_text.pdf

NOTICE OF AMENDMENT
VIA ELECTRONIC MAIL TO: greg.brown@chsinc.com; michelle.slyder@chsinc.com; and
bpatton@jayhawkpl.com
October 1, 2021
Mr. Greg Brown
Vice President and General Manager
Jayhawk Pipeline LLC
803 Highway 212 S
Laurel, MT 59044
CPF 3-2021-076-NOA
Dear Mr. Brown:
From March 15 through April 9, 2021, representatives of the Pipeline and Hazardous Materials
Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected
your Operation and Maintenance (O&M) procedures for Jayhawk Pipeline LLC (Jayhawk).
On the basis of the Inspection, PHMSA has identified the apparent inadequacies found within the
company’s plans or procedures, as described below:
1. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) . . . .
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the followingto provide safety during maintenance
and normal operations:
(1) . . . .
(3) Operating, maintaining, and repairing the pipeline system in accordance with each
of the requirements of this subpart and subpart H of this part.
Jayhawk’s procedure did not address the inspection of pipelines after an extreme weather
event or natural disaster, as required by § 195.414(a). Jayhawk personnel pointed to Section
207.6 in the ROW section of the O&M, and Section 400 of the emergency manual, as the
procedures to address this requirement. The emergency manual did not cover the
requirement for inspection of pipeline after an extreme weather event or natural disaster,
rather, it was focused on employee safety during a natural disaster. Section 207.6 of
Jayhawk’s O&M contained procedures on patrolling after a flooding incident, but the
procedure did not address any other natural disaster (e.g. landslide, earthquakes, etc.).
Additionally, the procedure did not address the inspection methods and the need for



additional assessments, the time period for those assessments, and the remediation options.
Jawhawk must amend its procedures to comply with the requiremnets of § 195.414.
2. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) . . . .
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the followingto provide safety during maintenance
and normal operations:
(1) . . . .
(3) Operating, maintaining, and repairing the pipeline system in accordance with each
of the requirements of this subpart and subpart H of this part.
Jayhawk’s procedures did not address how they will perform assessments of pipelines that
are not currently subject to the requirements of § 195.452, as required by § 195.416.
At the time of PHMSA’s inspection, the integrity management program also addressed
repairs to pipelines that are not subject to § 195.452. However, there was nothing in the
procedures that specifically addressed how the proper assessment method for such segments
will be determined; how Jayhawk will handle other technology; the data analysis; and when
discovery of conditions occurs for those sections of line pipe not subject to the requirements
of § 195.452.
Jawhawk must amend its procedures to comply with the requirements of § 195.416.
3. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) . . . .
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the followingto provide safety during maintenance
and normal operations:
(1) . . . .
(3) Operating, maintaining, and repairing the pipeline system in accordance with each
of the requirements of this subpart and subpart H of this part.
Jayhawk’s procedures for Public Awareness did not sufficiently address the annual audit of
the program’s implementation, as required by § 195.440.
At the time of PHMSA’s inspection, the procedure stated in Section 9 that the “Public
Awareness Audit Committee shall review documents such as Appendix B and F annually not
to exceed 15 months. This review shall be for program implementation within the
organization and furthering access if supplemental or enhanced efforts are necessary.” The
procedures did not contain guidance on how to document the following in accordance to
section 8.3 and Appendix E of API RP 1162, incorporated by reference:
 What awareness activities were planned for the year and what was accomplished
during the year;
2



 What internal and external information was collected and reviewed by the
operator;
 What decisions were made by the operator based on the information including the
addition of supplemental messaging and;
 What is planned for the next year?
The procedure must be amended to comply with the requirements of § 195.440, and should
also indicate how Jayhawk personnel will document compliance with these requirements.
4. §195.402 Procedural manual for operations, maintenance, and emergencies.
(a) . . . .
(c) Maintenance and normal operations. The manual required by paragraph (a) of this
section must include procedures for the followingto provide safety during maintenance
and normal operations:
(1) . . . .
(3) Operating, maintaining, and repairing the pipeline system in accordance with each
of the requirements of this subpart and subpart H of this part.
Jayhawk’s procedures did not provide guidance on how they would monitor cathodic
protection of their breakout tank bottoms, as required by § 195.573. For instance, in the
field, Jayhawk personnel take readings at four quandrants of the tank and at the center of the
tank if equipped with a permanent half cell. None of these actions were identified in the
procedures Section 703.
Jayhawk must amend its procedures to indentify how it would monitor cathodic protection of
its breakout tank bottoms in accordance with API RP 651 and § 195.573.
5. § 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) . . . .
(f) Safety-related condition reports. The manual required by paragraph (a) of this section
must include instructions enabling personnel who perform operation and maintenance
activities to recognize conditions that potentially may be safety-related conditions that
are subject to the reporting requirements of § 195.55.
Jayhawk’s safety related condition procedures in Section 500 of the O&M manual did not
contain clear guidance on when a safety related condition report (SRCR) should be filed
when related to a repair of an integrity management program anomaly. Section 502 of the
O&M plan only addresses the differences between “Discovery” as it is used in SRCRs and
how it is used in the integrity management program. However, there is no guidance to
specifically indicate that a SRCR must be filed if a 20% or more pressure reduction is taken
and the integrity repair cannot be completed within five days of determination or 10 days
from the date of discovery as it pertains to SRCRs. During PHMSA’s inspection, it was
determined that there was confusion about reporting SRCRs in those situations with anomaly
digs and the reporting requirements to PHMSA in the integrity management regulations.
Jayhawk must amend its procedures to comply with the requirements of § 195.402(f).
3



Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as
part of this Notice is a document entitled Response Options for Pipeline Operators in
Compliance Proceedings.
Please refer to this document and note the response options. Be advised that all material you
submit in response to this enforcement action is subject to being made publicly available. If you
believe that any portion of your responsive material qualifies for confidential treatment under 5
U.S.C. 552(b), along with the complete original document you must provide a second copy of
the document with the portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for confidential treatment
under 5 U.S.C. 552(b).
Following the receipt of this Notice, you have 30 days to submit written comments, revised
procedures, or a request for a hearing under §190.211. If you do not respond within 30 days of
receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this
Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in
this Notice without further notice to you and to issue an Order Directing Amendment. If your
plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend
your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not
contesting this Notice, we propose that you submit your amended procedures to my office within
90 days of receipt of this Notice. This period may be extended by written request for good
cause. Once the inadequacies identified herein have been addressed in your amended
procedures, this enforcement action will be closed.
It is requested (not mandated) that Jayhawk Pipeline LLC maintain documentation of the safety
improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of
plans, procedures) and submit the total to Greg A. Ochs, Director, Central Region, Pipeline and
Hazardous Materials Safety Administration. In correspondence concerning this matter, please
refer to CPF 3-2021-076-NOA and, for each document you submit, please provide a copy in
electronic format whenever possible.
Sincerely,
Greg A. Ochs
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings
4

32021076NOA_Closure Letter_11122022_(21-207811)_text.pdf

VIA ELECTRONIC MAIL TO: greg.brown@chsinc.com; michelle.slyder@chsinc.com;
and bpatton@jayhawkpl.com
January 12, 2022
Mr. Greg Brown
Vice President
Jayhawk Pipeline LLC
803 Highway 212 S
Laurel, MT 59044
Re: CPF 3-2021-076-NOA
Dear Mr. Brown:
From March 15 through April 9, 2021, representatives of the Pipeline and Hazardous Materials
Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected
your Operation and Maintenance (O&M) procedures for Jayhawk Pipeline LLC (Jayhawk). As a
result of the inspection, Jayhawk was issued a Notice of Amendment on October 1, 2021, which
proposed amendment of your procedures.
Jayhawk submitted its amended procedures on December 21, 2021. My staff reviewed the
amended procedures, and it appears that the inadequacies outlined in this Notice of Amendment
have been corrected.
This letter is to inform you no further action is necessary and this case is now closed. Thank you
for your cooperation.
Sincerely,
Gregory A. Ochs
Director, Central Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
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