{"operation":"document","citation":"CPF 32022004WL","title":"PATOKA TERMINAL COMPANY, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-06-07","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.402(c)(13), 195.505(i), 195.507(b), 195.583(a), 195.61(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022004wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022004wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022004wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022004WL","body":"Warning Letter involving PATOKA TERMINAL COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(13),  195.505(i),  195.507(b),  195.583(a),  195.61(b). The case was opened on 2022-06-07 and is reported as closed as of 2022-06-07. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022004WL_Warning Letter_06072022_(21-201332).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022004WL/32022004WL_Warning%20Letter_06072022_(21-201332).pdf\n\n32022004WL_Warning Letter_06072022_(21-201332)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022004WL/32022004WL_Warning%20Letter_06072022_(21-201332)_text.pdf\n\n32022004WL_Warning Letter_06072022_(21-201332)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: rclark@patokaterminal.com; jhinton@patokaterminal.com\nJune 7, 2022\nRichard Clark\nTerminal Manager and President\nPatoka Terminal Company, LLC\n1402 Dickey Pond Rd\nVernon, IL 62892\nCPF 3-2022-004-WL\nDear Mr. Clark:\nFrom September 13 to 16, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nPatoka Terminal Company, LLC’s (Patoka) procedures, records, and field assets in Vernon,\nIllinois.\nAs a result of the inspection, it is alleged that Pakota has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. §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\n\n\nPatoka failed to follow the guidelines established in its procedure, P-195.402(a) - Operations and\nMaintenance Procedure Update, for documenting the annual reviews and any updates of the\nOperations and Maintenance manual and any documents incorporated by reference into the\nmanual. Specifically, Revision 1 of this procedure requires the documentation of this activity in\nform F-195.402(a), contractor’s report, or other equivalent form as long as it contains all relevant\ninformation. However, Patoka was unable to produce any records showing the annual manual\nreview was completed in the calendar year 2020.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\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(13) Periodically reviewing the work done by operator personnel to determine the\neffectiveness of the procedures used in normal operation and maintenance and\ntaking corrective action where deficiencies are found.\nPatoka failed to follow the guidelines established in its procedure, P-195.402(c)(13) - Review of\nWork Done By Operator, for documenting the periodic review of the work done by operator\npersonnel to determine the effectiveness of the procedures used in normal operation and\nmaintenance and taking corrective action where deficiencies are found. Specifically, Revision 1 of\nthis procedure requires the above review at least once every three years as well as the\ndocumentation of this activity in form F-195.402(c)(13), contractor’s report, or other equivalent\nform as long as it contains all relevant information. However, Patoka was unable to produce any\nrecords showing periodic review of work done by operator personnel to determine the\neffectiveness of the procedures since 2018.\n3. § 195.505 - Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . . .\n(i) After December 16, 2004, notify the Administrator or a state agency participating\nunder 49 U.S.C. Chapter 601 if the operator significantly modifies the program after\nthe administrator or state agency has verified that it complies with this section.\nNotifications to PHMSA may be submitted by electronic mail to\nInformationResourcesManager@dot.gov, or by mail to ATTN: Information\nResources Manager DOT/PHMSA/OPS, East Building, 2nd Floor, E22-321, New\nJersey Avenue SE., Washington, DC 20590.\n2\n\n\n\nPatoka failed to notify the PHMSA Administrator when it significantly modified its written\nOperator Qualification Program (OQ) in 2017. The OQ program was modified in its entirety to\nclarify program requirements and transition to the Common Covered Task List\nadministered/managed by the Veriforce Operator group. However, the notification of this\nsignificant modification was not previously submitted as required by section 11.7 of Patoka OQ\nprogram. Patoka submitted the OQ program modifications to PHMSA on September 02, 2021.\n4. §195.61 National Pipeline Mapping System.\n(a) . . . .\n(b) This information must be submitted each year, on or before June 15, representing\nassets as of December 31 of the previous year. If no changes have occurred since the\nprevious year’s submission, the operator must refer to the information provided in\nthe NPMS Operator Standards manual available at www.npms.phmsa.dot.gov or\ncontact the PH61MSA Geographic Information Systems Manager at (202) 366-4595.\nPatoka failed to submit the information required by paragraph (a) of § 195.61 on or before June\n15, representing its assets as of December 31 of the previous calendar year. Patoka failed to submit:\n1) Geospatial data, attributes, metadata, and transmittal letter appropriate for use in the National\nPipeline Mapping System; 2) the name of and address for the operator; and 3) the name and contact\ninformation of a pipeline company employee, to be displayed on a public website, who will serve\nas a contact for questions from the general public about the operator's NPMS data for its assets as\nof December 31, 2018, by the due date of June 15, 2019. Patoka also made a late notification\nsubmission on December 11, 2020, confirming there have been no changes to the existing NPMS\ndata for the calendar year 2019, which exceeds the June 15, 2020 deadline by 179 days.\n5. § 195.583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to the\natmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is\nlocated:\nThen the frequency of inspection is:\nOnshore At least once every 3 calendar years, but with intervals not exceeding\n39 months.\nOffshore At least once each calendar year, but with intervals not exceeding 15\nmonths.\nPatoka failed to perform atmospheric corrosion monitoring at least once every 3 calendar years,\nbut with intervals not exceeding 39 months. According to the atmospheric corrosion inspection\nrecords, the regulated pipeline was inspected on October 09, 2020, and previously on February 23,\n2017, which did not meet the required maximum interval of 39 months between inspections.\n3\n\n\n\n6. §195.507 Recordkeeping.\nEach operator shall maintain records that demonstrate compliance with this\nsubpart.\n(a) . . . .\n(b) Records supporting an individual's current qualification shall be maintained\nwhile the individual is performing the covered task. Records of prior qualification\nand records of individuals no longer performing covered tasks shall be retained for a\nperiod of five years.\nPatoka did not maintain records that demonstrated compliance with Part 195, Subpart G -\nQualification of Pipeline Personnel. At the time of the inspection, Patoka did not provide records\nof prior qualification demonstrating how it ensured through evaluation that the employees\nperforming the covered task of “Patrolling Pipeline and Leakage Survey Without Instrument” in\ncalendar years 2018 and 2020 were properly qualified as specified in the table below.\nPerforming Individual Current Employee # 1 Current Employee # 2 Qualification Date 06/18/2019 03/11/2020 Covered Task Performance Dates\nMajority of 2018\n3/15/2018, 3/30/2018, 5/02/18,\n7/25/2018 and 10/22/2018\nCurrent Employee # 3 03/23/2020\n01/06/2020, 01/09/2020, 01/20/2020,\n02/03/2020, 02/19/2020, 03/02/2020\nand 03/16/2020\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related\nseries of violations. For violation occurring on or after May 3, 2021 and before March 21, 2022,\nthe maximum penalty may not exceed $225,134 per violation per day the violation persists, up to\na maximum of $2,251,334 for a related series of violations. For violation occurring on or after\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on\nor after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation 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\nPatoka Terminal Company, LLC being subject to additional enforcement actions.4\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2022-004-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 the\nredacted 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: Jesse Hinton, Terminal Manager Assistant, jhinton@patokaterminal.com\n5","truncated":false,"body_characters":11196}