{"operation":"document","citation":"CPF 32021077WL","title":"CALIBER NORTH DAKOTA 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 194.117(b), 194.117(c), 195.402(a), 195.402(c)(3), 195.402(d)(1)(ii), 195.404(c)(3), 195.452(l)(1)(ii), 195.573(e), 195.581(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021077wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021077wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021077wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021077WL","body":"Warning Letter involving CALIBER NORTH DAKOTA LLC. PHMSA's enforcement data identifies the cited regulations as 194.117(b),  194.117(c),  195.402(a),  195.402(c)(3),  195.402(d)(1)(ii),  195.404(c)(3),  195.452(l)(1)(ii),  195.573(e),  195.581(b). 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\n32021077WL_Warning Letter_10012021_(21-199715).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021077WL/32021077WL_Warning%20Letter_10012021_(21-199715).pdf\n\n32021077WL_Warning Letter_10012021_(21-199715)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021077WL/32021077WL_Warning%20Letter_10012021_(21-199715)_text.pdf\n\n32021077WL_Warning Letter_10012021_(21-199715)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: dwerth@calibermidstream.com and\ncbutero@calibermidstream.com\nOctober 1, 2021\nMr. Daniel Werth\nChief Executive Officer\nCaliber North Dakota, LLC\n950 17th Street, Suite 1000,\nDenver, CO 80202\nCPF 3-2021-077-WL\nDear Mr. Werth:\nOn February 10, March 8-9, March 19, April 12-13 and August 31, 2021, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected your records,\nprocedures and Caliber Hay Butte (CHB) unit facilities virtually and in Alexander, North\nDakota.\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 inspected\nand the probable violations are:\n\n\n\n1. §194.117 Training\n(b) Each operator shall maintain a training record for each individual that has been\ntrained as required by this section. These records must be maintained in the\nfollowing manner as long as the individual is assigned duties under the response\nplan;\n(1) Records for operator personnel must be maintained at the operator's\nheadquarters; and\n(2) Records for personnel engaged in response, other than operator personnel, shall\nbe maintained as determined by the operator.\n(c) Nothing in this section relieves an operator from the responsibility to ensure that\nall response personnel are trained to meet the Occupational Safety and Health\nAdministration (OSHA) standards for emergency response operations in 29 CFR\n1910.120, including volunteers or casual laborers employed during a response who\nare subject to those standards pursuant to 40 CFR part 311.\n§194.107 General response plan requirements\n(c) Each response plan must include:\n(1) A core plan consisting of-\n(ix) Drill program-an operator will satisfy the requirement for a drill program by\nfollowing the National Preparedness for Response Exercise Program (PREP) guidelines.\nAn operator choosing not to follow PREP guidelines must have a drill program that is\nequivalent to PREP. The operator must describe the drill program in the response plan\nand OPS will determine if the program is equivalent to PREP.\nCHB failed to provide adequately documented PREP drill records to identify whether 2017 and\n2019 tabletop exercises had been completed. Specifically, operator may have performed the\ntabletops in 2017 and 2019 as part of larger equipment deployment exercises but exercise\ndocumentation reflects only equipment deployment type check and not tabletop also.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(d) Abnormal operation. The manual required by paragraph (a) of this section must\ninclude procedures for the following to provide safety when operating design limits\nhave been exceeded:\n(1) Responding to, investigating, and correcting the cause of;\n2\n\n\n\n(ii) Increase or decrease in pressure or flow rate outside normal operating limits;\n§195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(7) Starting up and shutting down any part of the pipeline system in a manner designed to\nassure operation within the limits prescribed by §195.406, consider the hazardous liquid\nor carbon dioxide in transportation, variations in altitude along the pipeline, and pressure\nmonitoring and control devices.\nOn three occasions in 2019 and 2020, as shown in the table below, pressure exceeded MOP on\nthe NorthStar launcher. CHB failed to recognize these occurrences as abnormal operations since\nsome of the occurrences occurred while maintenance was being performed. Event 3 occurred\nwhen North Star shut down the line to prevent overfilling their tank and Caliber personnel were\nnot close enough to ramp pumps down slowly to prevent surge. CHB has submitted revised\nabnormal operations procedures and conducted personnel training covering the fact that\noverpressure during maintenance is still an abnormal operation.\nEvent Date Location Pressure\nTransmitter Elevation Recorded\nPressure\nCalc Pressure\n@ Low Point %\nPressure\nDesignation Comments Lowpoint Elevation MOP\n7/19/2019 6\" Northstar Launcher PIT‐612 2288 297.03 302.39 106.10% MOP Maintenance Work at Alex Lee Bore 1972 500\n10/8/2019 6\" Northstar Launcher PIT‐612 2288 292.07 297.43 104.36% MOP Maintenance Work at Alex Enbridge 2269 500\n1/18/2020 6\" Northstar Receiver PIT‐614 2299 302 311 109% MOP Northstar High Tank Levels Northstar 2273 285\n3. §195.404 Maps and records.\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 maintained for\nat least 2 years or until the next inspection or test is performed, whichever is longer.\n§195.403 Emergency response training.\n(a) Each operator shall establish and conduct a continuing training program to instruct\nemergency response personnel to:\n(1) Carry out the emergency procedures established under 195.402 that relate to their\nassignments;\n3\n\n\n\n(2) Know the characteristics and hazards of the hazardous liquids or carbon dioxide\ntransported, including, in case of flammable HVL, flammability of mixtures with air,\nodorless vapors, and water reactions;\n(3) Recognize conditions that are likely to cause emergencies, predict the consequences of\nfacility malfunctions or failures and hazardous liquids or carbon dioxide spills, and take\nappropriate corrective action;\n(4) Take steps necessary to control any accidental release of hazardous liquid or carbon\ndioxide and to minimize the potential for fire, explosion, toxicity, or environmental damage;\nand\n(5) Learn the potential causes, types, sizes, and consequences of fire and the appropriate use\nof portable fire extinguishers and other on-site fire control equipment, involving, where\nfeasible, a simulated pipeline emergency condition.\nFrom the inspection interview, CHB failed to adequately document training of personnel in\nemergency response for 2019 and 2020. Specifically, per their training procedure 2.2.2.3 which\nrequires annual review of critical procedures, CHB trained to 195.403 (a) by review of their Part\n195 emergency response procedures (O&M Section 4) but training slides used in 2019 show no\nslides pertinent to Section 4 and training slides used in 2020 show insufficient detail in regards to\ncoverage of Section 4. Drill records indicate adequate coverage of carrying out emergency\nprocedures but the plan specific requirement of reviewing critical procedures has an inadequate\nrecord. On August 19, 2021 CHB submitted a procedure data response to demonstrate proactive\nefforts to prevent reoccurrence.\n4. §195.404 Maps and records.\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 maintained\nfor at least 2 years or until the next inspection or test is performed, whichever is\nlonger.\n4\n\n\n\n§195.428 Overpressure safety devices and overfill protection systems.\n(a) Except as provided in paragraph (b) of this section, each operator shall, at intervals\nnot exceeding 15 months, but at least once each calendar year, or in the case of pipelines\nused to carry highly volatile liquids, at intervals not to exceed 7½ months, but at least\ntwice each calendar year, inspect and test each pressure limiting device, relief valve,\npressure regulator, or other item of pressure control equipment to determine that it is\nfunctioning properly, is in good mechanical condition, and is adequate from the\nstandpoint of capacity and reliability of operation for the service in which it is used.\nBased on the inspection interview and a data response, Caliber Hay Butte failed to provide\nannual capacity checks for their one crude oil PSV-105 full flow over-pressure protection device\nfor 2019 and 2020. CHB has a plan in place to prevent reoccurrence.\n5. §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.\n(b)…\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(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\n§195.432 Inspection of in-service breakout tanks.\n(a) Except for breakout tanks inspected under paragraphs (b) and (c) of this section, each\noperator shall, at intervals not exceeding 15 months, but at least once each calendar\nyear, inspect each in-service breakout tank.\nCHB failed to follow procedures in inspection breakout tanks in two areas:\n During the tank inspections, investigation of whether the level controls on both tanks\nwere working was incomplete as faulty level controls were reported from May 2, 2019\n5\n\n\n\nthrough August 2, 2020 whereas the level controls were working properly on September\n1, 2019 according to CHB management.\n CHB personnel documenting tank inspection did not perform this covered task as\nrequired as the level controls were incorrectly documented as not working.\n6. §195.452 Pipeline integrity management in high consequence areas\n(l) What records must an operator keep to demonstrate compliance?\n(1) An operator must maintain, for the useful life of the pipeline, records that\ndemonstrate compliance with the requirements of this subpart. At a minimum, an\noperator must maintain the following records for review during an inspection:\n(ii) Documents to support the decisions and analyses, including any modifications,\njustifications, deviations and determinations made, variances, and actions taken, to\nimplement and evaluate each element of the integrity management program listed in\nparagraph (f) of this section.\nBased on the inspection interview, CHB failed to produce the annual HCA review required by\ntheir integrity management plan section 4.10 for the years 2017 and 2018.\n7. §195.573 What must I do to monitor external corrosion control?\n(e) Corrective action. You must correct any identified deficiency in corrosion\ncontrol as required by § 195.401(b). However, if the deficiency involves a pipeline in\nan integrity management program under § 195.452, you must correct the deficiency\nas required by § 195.452(h).\nBased on the inspection interview, CHB failed to correct pipe to soil potentials which were\nbelow criteria at reference cells C1, Z1 and Z2 on Tank 300. Potentials were below criteria for\ntwo monitoring cycles in a row (2018 and 2019). CHB provided a data response showing\ncorrective procedures put in place to prevent reoccurrence.\n8. §195.581 Which pipelines must I protect against atmospheric corrosion and what\ncoating material may I use?\n(b) Coating material must be suitable for the prevention of atmospheric corrosion.\nBased on field inspection observations, CHB failed to properly install the Polyguard RD 6\ntransition zone wrap as no UV protection was installed as noted on the product data sheet. CHB\nhas a corrective action plan developed to mitigate this issue.\n6\n\n\n\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 items identified in this letter. Failure to do so will result in\nCaliber North Dakota, 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 3-2021-077-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).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nCC: Ms. Carol Butero, Director of Regulatory, Safety and Compliance, 950 17th Street, Suite\n1000, Denver, CO 80202, (cbutero@calibermidstream.com)\n7","truncated":false,"body_characters":15080}