{"operation":"document","citation":"CPF 32021092WL","title":"NUSTAR LOGISTICS, L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-22","effective_on":null,"summary":"CLOSED warning letter citing 195.264(b)(1)(i), 195.307(d), 195.404(c)(3), 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021092wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021092wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021092wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021092WL","body":"Warning Letter involving NUSTAR LOGISTICS, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.264(b)(1)(i),  195.307(d),  195.404(c)(3),  195.432(b). The case was opened on 2021-11-22 and is reported as closed as of 2021-11-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021092WL_Warning Letter_11222021_(20-179651).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021092WL/32021092WL_Warning%20Letter_11222021_(20-179651).pdf\n\n32021092WL_Warning Letter_11222021_(20-179651)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021092WL/32021092WL_Warning%20Letter_11222021_(20-179651)_text.pdf\n\n32021092WL_Warning Letter_11222021_(20-179651)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Brad.Barron@nustarenergy.com and\ngary.koegeboehn@nustarenergy.com\nNovember 22, 2021\nMr. Brad Barron\nPresident and Chief Executive Officer\nNuStar Pipeline Operating Partnership, L.P.\n19003 IH-10 West\nSan Antonio, Texas 78257\nRE: NuStar Logistics, L.P.\nCPF 3-2021-092-WL\nDear Mr. Barron:\nFrom February 24, 2020, through December 9, 2020, representatives of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS) Central\nRegion, pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected procedures,\nfacilities, and records relevant to the NuStar_Southwest_Proucts system of NuStar Logistics,\nL.P. (NuStar) in Texas, Oklahoma, New Mexico, and Colorado.\nAs a result of the inspection, it is alleged that NuStar has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item(s) inspected\nand the probable violation(s) are:\n\n\n\n1. § 195.264 Impoundment, protection against entry, normal/emergency venting or\npressure/vacuum relief for aboveground breakout tanks.\n(a) . . .\n(b) After October 2, 2000, compliance with paragraph (a) of this section requires\nthe following for the aboveground breakout tanks specified:\n(1) For tanks built to API Spec 12F, API Std 620, and others (such as API Std 650\n(or its predecessor Standard 12C)), the installation of impoundment must be in\naccordance with the following section of NFPA-30 (2012 edition)(incorporated by\nreference per §195.3);\n(i) Impoundment around a breakout tank must be installed in accordance with\nsection 22.11.2.\nNuStar failed to satisfy the requirements of NFPA-30, Section 22.11.2 as required by\n§ 195.264(b)(1)(i). During the inspection, PHMSA observed that the impoundment area\nfor Tanks 300M1 and 300M2 at Nustar’s Ringgold, Oklahoma facility failed to have an\nintermediate dike, be subdivided, or have a drainage channel. Section 22.11.2 of NFPA-\n30 (incorporated by reference), requires that each diked area containing two or more\ntanks shall be subdivided, preferably by drainage channels or at least by intermediate\ndikes, to prevent minor spills from a tank from endangering adjacent tanks within the\ndiked area. NuStar therefore failed to comply with the regulatory requirements.\nAfter PHMSA discovered the deficiency, NuStar corrected the issues by installing an\nintermediate dike to incorporate an impoundment subdivision, which was completed on\nOctober 1, 2020.\n2. § 195.307 Pressure testing aboveground breakout tanks.\n(a) . . .\n(d) For aboveground atmospheric pressure breakout tanks constructed of carbon\nand low alloy steel, welded or riveted, and non-refrigerated tanks built to API\nStd 650 or its predecessor Standard 12 C that are returned to service after\nOctober 2, 2000, the necessity for the hydrostatic testing of repair, alteration,\nand reconstruction is covered in section 12.3 of API Standard 653 (incorporated\nby reference, see §195.3).\nNuStar’s Tank 80M-3 located in El Paso, Texas underwent major repairs and was\nreturned to service without hydrotesting or meeting all the requirements of Section 12.3.2\nof API 653, titled, “When Hydrostatic Testing is Not Required”. Specifically, Tank\n80M-3 was returned to service without a hydrotest exemption study by an engineer prior\nto being placed into service. Section 12.3.2.2 of API 653 requires that a and b below\nmust be satisfied:\n“a). The repair has been reviewed and approved by an engineer\nexperienced in storage tank design in accordance with API Std 650. The\n2\n\n\n\n3. engineer must concur in writing with taking the hydrostatic testing\nexemption.\nb). The tank owner/operator has authorized the exemption in writing.”\nNuStar therefore failed to comply with the regulatory requirements.\nIn late 2016 and early 2017, Tank 80M-3 underwent major repairs. The repairs included\na new 1/4-inch lap welded A-36 single bottom with a 36-inch wide 3/8-inch butt welded\nannular ring, a new 48-inch bottom sump, and the re-installation of a shell door sheet.\nThe tank was filled with product on January 11, 2017. Powers Engineering and\nInspection performed a post repair inspection for El Paso Tank 80M-3 on March 28,\n2017.\n§ 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 maintained\nfor at least 2 years or until the next inspection or test is performed, whichever is\nlonger.\n§ 195.432 Inspection of in-service breakout tanks.\n(a) . . .\n(b) Each operator must inspect the physical integrity of in-service atmospheric and low-\npressure steel above-ground breakout tanks according to API Std 653 (except section\n6.4.3, Alternative Internal Inspection Interval) (incorporated by reference, see\n§195.3). However, if structural conditions prevent access to the tank bottom, its\nintegrity may be assessed according to a plan included in the operations and\nmaintenance manual under §195.402(c)(3). The risk-based internal inspection\nprocedures in API Std 653, section 6.4.3 cannot be used to determine the internal\ninspection interval.\nNuStar failed to satisfy the requirements of API 653, Section 13.2, as required by\n§ 195.432(b). Specifically, NuStar failed to provide records that indicated what repairs or\nalterations were completed for Wason Facility Tank 100, El Paso Facility Tank 80M3,\nClawson Facility Tank 55M1, and Grapevine Facility Tank 20M3, performed in 2013,\n2016, 2016, and 2017, respectively. NuStar did not begin documenting repair and\nalteration recommendations and suggestions stemming from API 653 inspection reports\nuntil 2019. NuStar therefore failed to comply with the regulatory requirement in 2013,\n2016, and 2017.\n3\n\n\n\n4. § 195.432 Inspection of in-service breakout tanks.\n(a) . . .\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\n(except section 6.4.3, Alternative Internal Inspection Interval) (incorporated by\nreference, see §195.3). However, if structural conditions prevent access to the\ntank bottom, its integrity may be assessed according to a plan included in the\noperations and maintenance manual under §195.402(c)(3). The risk-based\ninternal inspection procedures in API Std 653, section 6.4.3 cannot be used to\ndetermine the internal inspection interval.\nNuStar failed to satisfy the requirements of API 653, Section 6.3.2, as required by\n§ 195.432(b). Section 6.3.2 of API 653 requires that an external inspection must be\nconducted at least every 5 years. During the inspection, PHMSA reviewed records\nprovided by NuStar for Tank 100 at the Wasson, Oklahoma facility. An external API\n653 tank inspection was performed by Rosen on February 5, 2020. The previous external\nAPI 653 tank inspection was performed on March 5, 2013, which extended beyond the 5-\nyear inspection interval. NuStar therefore failed to comply with the regulatory\nrequirements.\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\nNuStar Logistics, L.P. 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 3-2021-092-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\n4\n\n\n\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, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: Gary Koegeboehn, VP of Pipeline Operations, gary.koegeboehn@nustarenergy.com\n5","truncated":false,"body_characters":10064}