{"operation":"document","citation":"CPF 32022050WL","title":"MAGELLAN TERMINALS HOLDINGS, LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-07-06","effective_on":null,"summary":"CLOSED warning letter citing 195.262(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022050wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022050wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022050wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022050WL","body":"Warning Letter involving MAGELLAN TERMINALS HOLDINGS, LP. PHMSA's enforcement data identifies the cited regulation as 195.262(b)(2). The case was opened on 2022-07-06 and is reported as closed as of 2022-07-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022050WL_Warning Letter_07062022_(21-207735).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022050WL/32022050WL_Warning%20Letter_07062022_(21-207735).pdf\n\n32022050WL_Warning Letter_07062022_(21-207735)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022050WL/32022050WL_Warning%20Letter_07062022_(21-207735)_text.pdf\n\n32022050WL_Warning Letter_07062022_(21-207735)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: aaron.milford@magellanlp.com;\nKatie.McCullough@MagellanLP.com\nJuly 6, 2022\nAaron L. Milford\nChief Executive Officer\nMagellan Terminals Holdings, LP\nP.O. Box 22186\nTulsa, Oklahoma 74121\nCPF 3-2022-050-WL\nDear Mr. Milford:\nFrom June 21 to June 25, 2021, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.), inspected your Magellan Osage Cimarron petroleum pipeline facilities in\nCushing, Oklahoma.\nAs a result of the inspection, it is alleged that Magellan Terminals Holdings, LP (Magellan) has\ncommitted probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal\nRegulations (CFR). The items inspected and the probable violations are:\n1. §195.262 Pumping equipment.\n(a) . . . .\n(1) . . . .\n(b) The following must be provided in each pump station:\n(2) A device for the emergency shutdown of each pumping station.\nMagellan failed to comply with the regulation because it did not provide a designated device for\nthe emergency shutdown (ESD) of each pump station. An ESD is a device that is designed to\ninitiate the process to shut down the station or a facility in the event of a failure or a hazardous\nsituation. During the on-site inspection at the Shinn Pence facility, the pumping station that\nPHMSA observed did not have a physical ESD for the entire pump station that went into\n\n\n\ncommission in 2019. An suitable ESD was installed in the southwest corner of the facility after\nPHMSA’s observation and discussion on or before August 17, 2021.\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 Terminals Holdings, 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 3-2022-050-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":4939}