{"operation":"document","citation":"CPF 32021094WL","title":"SUNOCO PIPELINE L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-30","effective_on":null,"summary":"CLOSED warning letter citing 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021094wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021094wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021094wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021094WL","body":"Warning Letter involving SUNOCO PIPELINE L.P.. PHMSA's enforcement data identifies the cited regulation as 195.432(b). The case was opened on 2021-11-30 and is reported as closed as of 2021-11-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021094WL_Warning Letter_11302021_(20-172180).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021094WL/32021094WL_Warning%20Letter_11302021_(20-172180).pdf\n\n32021094WL_Warning Letter_11302021_(20-172180)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021094WL/32021094WL_Warning%20Letter_11302021_(20-172180)_text.pdf\n\n32021094WL_Warning Letter_11302021_(20-172180)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Matthew.Ramsey@energytransfer.com;\nGregory.Mcilwain@energytransfer.com; Eric.Amundsen@energytransfer.com;\nTodd.Nardozzi@energytransfer.com\nNovember 30, 2021\nMatt Ramsey\nChief Operating Officer\nEnergy Transfer\n8111 Westchester\nDallas, TX 75225\nCPF 3-2021-094-WL\nDear Mr. Ramsey:\nFrom February 24th, 2020 to February 25th , 2021 a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your Sunoco Pipeline L.P. (Sunoco’s) Millenium Pipeline, Corsicana Area\nPipelines , West Texas Gulf System #2 and West Texas Gulf System #1 Pipelines from Midland\nto Nederland, Texas.\nAs a result of the inspection, it is alleged that you have committed probable violation(s) of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\nand the probable violation is:\n1. § 195.432 Inspection of in-service breakout tanks.(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 (except\nsection 6.4.3, Alternative Internal Inspection Interval) (incorporated by\nreference, see § 195.3). However, if structural conditions prevent access to the tank\nbottom, its integrity may be assessed according to a plan included in the operations\nand maintenance 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.\n\n\n\n2\nSunoco failed to perform an internal inspection of breakout tank #2694 at their Corsicana facility\nwithin the maximum interval of 10 years as prescribed by API 653, incorporated by reference in\n§ 195.432(b). Section 6.4.2.2 of API 653 states as follows: \"when corrosion rates are not known\nand similar service experience is not available to estimate the bottom plate minimum thickness at\nthe next inspection, the internal inspection interval shall not exceed 10 years.\"\nThe last API 653 out-of-service (OOS) internal inspection on tank #2694 was performed in\n2006. Per Sunoco Logistics Tank Maintenance Report dated 6/17/2011, the entire floor of tank\n2694 was replaced in December of 2006. The report recommended the next out-of-service\ninspection to be performed in 2029. The re-inspection interval justification was based on the\nprediction of zero corrosion rates for both the top side and bottom side of the new floor due to\nthe installation of an internal tank coating and cathodic protection for corrosion protection of the\nexterior bottom floor. The next internal inspection was scheduled for 2025. The tank re-\ninspection interval should have been re-established at a maximum of 10 years, or 12/2016 since\nthe actual corrosion rate is unknown.\nSunoco removed tank #2694 from service on 3/8/21 for cleaning and API 653 internal\ninspection. The final inspection report, prepared by Sunoco’s consultant, recommended a re-\ninspection interval of 20 years or the life of the coating if all required tank bottom repairs were\nperformed. Per Energy Transfer’s Checklist for Out-of-Service Tank Inspections for tank #2694\nthe repairs were completed. Accordingly, Sunoco has reset the re-inspection intervals to April\n2026 for the next external inspection and April 2041 for the next out-of-service inspection.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a\nrelated 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. For violations occurring\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per\nday, with a maximum penalty not to exceed $2,000,000 for a related series of violations. We\nhave 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\nSunoco Pipeline 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 3-2021-071-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).\n\n\n\n3\nSincerely,\nGregory Ochs\nDirector, Central, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Gregory Mcilwain, Senior VP Liquids Operations, Gregory.Mcilwain@energytransfer.com\nEric Amundsen, Senior VP Gas Operations, Eric.Amundsen@energytransfer.com\nTodd Nardozzi, Director Regulatory Compliance, todd.nardozzi@energytransfer.com","truncated":false,"body_characters":6297}