{"operation":"document","citation":"CPF 32022049WL","title":"MAGELLAN PIPELINE COMPANY, LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-07-07","effective_on":null,"summary":"CLOSED warning letter citing 195.118(c), 195.264(b)(1)(i), 195.428(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022049wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022049wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022049wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022049WL","body":"Warning Letter involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.118(c),  195.264(b)(1)(i),  195.428(a). The case was opened on 2022-07-07 and is reported as closed as of 2022-07-07. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022049WL_Warning Letter_07072022_(21-207738).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022049WL/32022049WL_Warning%20Letter_07072022_(21-207738).pdf\n\n32022049WL_Warning Letter_07072022_(21-207738)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022049WL/32022049WL_Warning%20Letter_07072022_(21-207738)_text.pdf\n\n32022049WL_Warning Letter_07072022_(21-207738)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: aaron.milford@magellanlp.com;\nKatie.McCullough@MagellanLP.com\nJuly 7, 2022\nAaron L. Milford\nChief Executive Officer\nMagellan Midstream Partners, LP\nP.O. Box 22186\nTulsa, Oklahoma 74121\nCPF 3-2022-049-WL\nDear Mr. Milford:\nFrom March 21 through October 22, 2021, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), inspected Magellan Midstream Partners, LP’s (Magellan)\npetroleum pipeline facilities in Tulsa and Shinn Pence, Oklahoma, and Cheyenne, Wyoming.\nAs a result of the inspection, it is alleged that Magellan 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. §195.118 Fittings\n(a) . . . .\n(c) The fitting must be suitable for the intended service and at least me as strong as\nthe pipe and other fittings in the pipeline system to which it is attached.\nMagellan failed to have fittings that were at least as strong as the pipe and other fittings in the\npipeline system to which they were attached. During a field audit, PHMSA observed a pig\nlauncher/receiver with a manufacture stamp documenting that the maximum allowable working\npressure for the pipeline launcher/receiver was 450 psig. However, the pipeline had a maximum\noperating pressure of 720 psig at the West Tulsa Terminal, which includes the launcher/receiver.\nIn addition, PHMSA observed a pipeline filter separator at the West Tulsa Terminal with a\ndesign pressure of 270 psig even though the maximum operating pressure of the pipeline\nassociated with the filter separator was 275 psig.\n\n\n\n2. §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\n(or its predecessor Standard 12C)), the installation of impoundment must be in\naccordance with the following sections of NFPA-30 (incorporated by reference, see §\n195.3).\n(i) Impoundment around a breakout tank must be installed in accordance with\nsection 22.11.2;\nMagellan failed to install impoundment around a breakout tank in accordance with NFPA-30,\nSection 22.11.2. PHMSA inspectors observed, during the on-site inspection at Reno Terminal in\nOklahoma City, that the impoundment area for Tank 1245 (installed in 2008) failed to have an\nintermediate dike, be subdivided or have a drainage channel. NFPA-30, Section 22.11.2\n(incorporated by reference) requires that each diked area containing two or more tanks be\nsubdivided in order to prevent minor tank spills from endangering adjacent tanks within the\ndiked area. PHMSA notes that after the inspection observation and discussion, Magellan\ncompleted modifications to the terminal to incorporate impoundment subdivision on or about\nJanuary 6, 2022.\n3. §195.428 Overpressure safety devices and overfill protection systems\n(a) Except as provided in paragraph (b) of this section, each operator shall, at\nintervals not exceeding 15 months, but at least once each calendar year, or in the\ncase of pipelines used to carry highly volatile liquids, at intervals not to exceed\n7½ months, but at least twice each calendar year, inspect and test each pressure\nlimiting device, relief valve, pressure regulator, or other item of pressure control\nequipment to determine that it is functioning properly, is in good mechanical\ncondition, and is adequate from the standpoint of capacity and reliability of\noperation for the service in which it is used.\nMagellan failed to inspect and test Pressure Control Valve number 10 (PCV10) at the Chenneye\nTerminal in order to determine that it was functioning properly, was in good mechanical\ncondition, and was adequate from the standpoint of capacity and reliability of operation for the\nservice in which it was used at intervals not exceeding 15 months, but at least once each calendar\nyear for calendar years 2019 and 2020. PHMSA reviewed the Protective and Control Device\nInspection Records (07-Form-0741) alongside the Piping and Instrumentation Diagram and\ncould not locate a record for PCV10 at the Cheyenne Terminal. Magellan responded to\nPHMSA’s request for the inspection records stating that Magellan did not have the inspection\nrecords. After PHMSA identified the missing inspection for PCV10, Magellan completed an\ninspection and documented the results on 07-FORM-0741 on August 31, 2021.\n\n\n\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\nrelated series of violations. For violation occurring on or after May 3, 2021 and before March\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related series of violations. For violation occurring on or after July 31, 2019 and before\nJanuary 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the\nviolation persists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015, and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto 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\nMagellan Midstream Partners, LP, 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 3-2022-049-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).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Katie McCullough, P.E. Manager, Integrity Management and Regulatory Compliance,\nKatie.McCullough@MagellanLP.com","truncated":false,"body_characters":8037}