{"operation":"document","citation":"CPF 32022039WL","title":"CALIBER SPRING CREEK LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-03-07","effective_on":null,"summary":"CLOSED warning letter citing 195.264(b)(1)(i), 195.401(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022039wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022039wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022039wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022039WL","body":"Warning Letter involving CALIBER SPRING CREEK LLC. PHMSA's enforcement data identifies the cited regulations as 195.264(b)(1)(i),  195.401(a). The case was opened on 2022-03-07 and is reported as closed as of 2022-03-07. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022039WL_Warning Letter_03072022_(21-220247).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022039WL/32022039WL_Warning%20Letter_03072022_(21-220247).pdf\n\n32022039WL_Warning Letter_03072022_(21-220247)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022039WL/32022039WL_Warning%20Letter_03072022_(21-220247)_text.pdf\n\n32022039WL_Warning Letter_03072022_(21-220247)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: dwerth@calibermidstream.com;\ndray@calibermidstream.com; kjohnson@calibermidstream.com;\naporter@calibermidstream.com;\nMarch 7, 2022\nMr. Daniel Werth,\nPresident and Chief Executive Officer\nCaliber Midstream Partners, LP\nP.O. Box 268\nDenver, Colorado 80201\nCPF 3-2022-039-WL\nDear Mr. Werth:\nFrom August 18 through 19, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.),\ninspected your Caliber Spring Creek LLC (CSC) pipeline and facilities in Watford City, North\nDakota.\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 items inspected,\nand the probable violations are:\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 the\nfollowing 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 (or\nits predecessor Standard 12C)), the installation of impoundment must be in accordance\nwith the following sections of NFPA-30 (incorporated by reference, see § 195.3);\n(i) Impoundment around a breakout tank must be installed in accordance with section\n22.11.2;\n\n\n\nCaliber Spring Creek LLC (CSC) failed to satisfy the requirements of Section 22.11.2 of NFPA-\n30 (2012 edition) regarding impoundment around breakout tanks as required by §195.264(b)(1).\nSection 22.11.2.1, NFPA-30 (2012 edition) requires that \" [a] slope of not less than one percent\naway from the tank shall be provided for at least 50 feet (15 meters) or to the dike base,\nwhichever is less\".\nAfter Caliber took operational control of the newly acquired Spring Creek pipeline system\n(November 2019), they had noted deficiencies to the impoundment of the eight 400-barrel\nbreakout tank compound (breakout tanks built to API 12F standards). The main concern was\nthat all tanks could drain as one in the event of a loss of containment in any single tank,\ntherefore the existing capacity of the impoundment was insufficient. Another issue was that\nthe existing configuration did not have one percent slope away from the tanks, for any\ndistance. At the time of the August 2020 Field Inspection, the rework of the tank piping had\nbrought the impoundment capacity into compliance with Section 22.11.2.2, NFPA-30 (2012\nedition). However, the slope away from the tanks was still not as required. Caliber's\nEngineering Group had noted during the inspection that there was a plan to rework the\nsloping inside the impoundment. Therefore, CSC is in violation of § 195.264(b)(1)(i).\n2. § 195.401 General requirements.\n(a) No operator may operate or maintain its pipeline systems at a level of safety lower\nthan that required by this subpart and the procedures it is required to establish under\n§ 195.402(a) of this subpart.\nCSC operated their pipeline at a level of safety lower than that required by Subpart F and the\nprocedures it is required to establish under § 195.402(a) of that subpart as required by\n§ 195.401(a). Specifically, Pressure Safety Valve PSV-005 was not correctly routed and\ntherefore would not relieve line pressure downstream of the pump. Caliber’s Engineering\nGroup documented a Management of Change (MOC 1127-003) originated in April 2021 to\ncorrect the issue, but rework had not been completed as of August 2021. Therefore, CSC is\nin violation of § 195.401(a).\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\nMay 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the\nviolation persists, up to a maximum of $2,225,034 for a related series of violations. For\nviolation occurring on or after July 31, 2019 and before January 11, 2021, the maximum\npenalty may not exceed $218,647 per violation per day the violation persists, up to a maximum\nof $2,186,465 for a related series of violations. For violation occurring on or after November\n27, 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\non or after November 2, 2015 and before November 27, 2018, the maximum penalty may not\nexceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022.\n\n\n\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 Spring Creek LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 3-2022-039-WL. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any portion\nof your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along\nwith the complete original document you must provide a second copy of the document with\nthe portions you believe qualify for confidential treatment redacted and an explanation of why\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: David Ray, Operations Manager, dray@calibermidstream.com\nKatie Johnson, Project Manager, kjohnson@calibermidstream.com\nAllison Porter, Director of Operations and Engineering, aporter@calibermidstream.com","truncated":false,"body_characters":6789}