{"operation":"document","citation":"CPF 32021095NOA","title":"CENEX PIPELINE LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-12-16","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021095noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021095noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021095noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021095NOA","body":"Notice of Amendment involving CENEX PIPELINE LLC. PHMSA's enforcement data identifies the cited regulation as 195.402(c)(3). The case was opened on 2021-12-16 and is reported as closed as of 2022-03-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021095NOA_Closure Letter_03212022_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021095NOA/32021095NOA_Closure%20Letter_03212022_(21-207811).pdf\n\n32021095NOA_Closure Letter_03212022_(21-207811)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021095NOA/32021095NOA_Closure%20Letter_03212022_(21-207811)_text.pdf\n\n32021095NOA_Notice of Amendment_12162021_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021095NOA/32021095NOA_Notice%20of%20Amendment_12162021_(21-207811).pdf\n\n32021095NOA_Notice of Amendment_12162021_(21-207811)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021095NOA/32021095NOA_Notice%20of%20Amendment_12162021_(21-207811)_text.pdf\n\n32021095NOA_Operator Response to Notice_01142022_(21-207811).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021095NOA/32021095NOA_Operator%20Response%20to%20Notice_01142022_(21-207811).pdf\n\n32021095NOA_Closure Letter_03212022_(21-207811)_text.pdf\n\nVIA ELECTRONIC MAIL TO: greg.brown@chsinc.com; michelle.slyder@chsinc.com;\nand bpatton@jayhawkpl.com\nMarch 21, 2022\nMr. Greg Brown\nVice President\nCenex Pipeline LLC\nJayhawk Pipeline LLC\nFront Range Pipeline LLC\n803 Highway 212 S\nLaurel, MT 59044\nRe: 3-2021-095-NOA\nDear Mr. Brown:\nFrom March 15-19, 2021, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the\nIntegrity Management procedure manual (IMP) applicable to Cenex Pipeline LLC (OPID 2175),\nJayhawk Pipeline LLC (OPID 1975), and Front Range Pipeline LLC (OPID 32283). These three\noperators will be referred to as the Company for this Notice. As a result of the inspection, the\nCompany was issued a Notice of Amendment on December 16, 2021, which proposed\namendment of your procedures.\nThe Company submitted its amended procedures on March 16, 2022. 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\n\n32021095NOA_Notice of Amendment_12162021_(21-207811)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: greg.brown@chsinc.com; michelle.slyder@chsinc.com; and\nbpatton@jayhawkpl.com\nDecember 16, 2021\nMr. Greg Brown\nVice President\nCenex Pipeline LLC\nJayhawk Pipeline LLC\nFront Range Pipeline LLC\n803 Highway 212 S\nLaurel, MT 59044\nCPF 3-2021-095-NOA\nDear Mr. Brown:\nFrom March 15-19, 2021, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the\nIntegrity Management procedure manual (IMP) applicable to Cenex Pipeline LLC (OPID 2175),\nJayhawk Pipeline LLC (OPID 1975), and Front Range Pipeline LLC (OPID 32283). The three\noperators will be referred to as the Company for this Notice.\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 following to 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.\n\n\n\n2. 3. The Integrity Management (IM) program was inadequate because it did not have procedures\nfor applying integrity management to the company’s covered facilities (i.e.: pump stations\nand tank farms) as required by § 195.452(b)(1). Per § 195.452(a), each pipeline [see the\ndefinition of “Pipelines” in §195.2] that could affect a high consequence area are covered\nunder § 195.452, including pump stations and tank farms, and are to be included in the IM\nprogram required by § 195.452(b)(1). It appeared that the company was applying integrity\nmanagement measures to covered facilities in the field, but the procedures did not reflect\nwhat the company was doing, such as: the could affect analysis, the continual evaluation of\nthe facilities, preventative & mitigative measures, and other integrity management elements\ndescribed in § 195.452(f).\nThe Company must amend its written IM procedures to comply with the requirements of\n§ 195.452(b)(1) by including the elements of § 195.452(f) for covered facilities.\n§ 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 following to 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.\nThe IM procedures were inadequate because they did not contain any guidance for\nperforming an information analysis as required by § 195.452(g). The procedures did not\ncontain the required data elements and attributes needed for the analysis, nor did it describe\nhow and when the periodic information analyses were going to be completed or by whom.\nThe Company must amend its written IM procedures to comply with the requirements of\n§ 195.452(g).\n§ 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 following to 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.\nThe IM procedures as did not address the annual verification of the risk factors used in\nidentifying pipeline segments that could affect a high consequence area as required by §\n195.452(j)(2). The IM Procedures on page 14 under Program Overview contained a\nrequirement to review the risk factors used to identify a high consequence area annually not\n\n\n\nto exceed 15 months, but did not provide any guidance or details on how the review should\nbe performed, who shall do it, and how it is to be documented.\nThe Company must amend its written IM procedures to comply with the requirements of\n§ 195.452(j)(2).\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 following to 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.\nThe IM procedures did not contain adequate information regarding remedial actions and\nevaluations to address integrity issues raised by the assessment methods and information\nanalysis as required by § 195.452(f)(4). Specifically, there were no appropriate procedures\nfor remedial actions for seams, cracks or cracking and no procedures to ensure that proper\nnon-destructive examination (NDE) method(s) and other information gathering processes are\nused to evaluate seams, cracks, or cracking. On the Jayhawk system, cracking was identified\nfrom a tool run in 2017. IM procedures to address remedial actions for this identified threat\nmust be part of the IM program.\nThe Company must amend its written IM procedures to comply with the requirements of\n§ 195.452(f)(4).\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\nEnforcement Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 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\n\n\n\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 Cenex Pipeline LLC, Front Range Pipeline LLC and Jayhawk\nPipeline LLC maintain documentation of the safety improvement costs associated with fulfilling\nthis Notice of Amendment (preparation/revision of plans, procedures) and submit the total to\nGreg A. Ochs, Director, Central Region, Pipeline and Hazardous Materials Safety\nAdministration. In correspondence concerning this matter, please refer to CPF 3-2021-095-NOA\nand, for each document you submit, please provide a copy in electronic format whenever\npossible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nCC: Michelle Slyder, Manager DOT Compliance, michelle.slyder@chsinc.com\nbpatton@jayhawkpl.com William Patton, DOT Compliance Asst.,\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings","truncated":false,"body_characters":10806}