# MAGELLAN TERMINALS HOLDINGS, LP — Warning Letter

- **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:** Not available
- **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.

Official case documents:

32022050WL_Warning Letter_07062022_(21-207735).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022050WL/32022050WL_Warning%20Letter_07062022_(21-207735).pdf

32022050WL_Warning Letter_07062022_(21-207735)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022050WL/32022050WL_Warning%20Letter_07062022_(21-207735)_text.pdf

32022050WL_Warning Letter_07062022_(21-207735)_text.pdf

WARNING LETTER
VIA ELECTRONIC MAIL TO: aaron.milford@magellanlp.com;
Katie.McCullough@MagellanLP.com
July 6, 2022
Aaron L. Milford
Chief Executive Officer
Magellan Terminals Holdings, LP
P.O. Box 22186
Tulsa, Oklahoma 74121
CPF 3-2022-050-WL
Dear Mr. Milford:
From June 21 to June 25, 2021, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United
States Code (U.S.C.), inspected your Magellan Osage Cimarron petroleum pipeline facilities in
Cushing, Oklahoma.
As a result of the inspection, it is alleged that Magellan Terminals Holdings, LP (Magellan) has
committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal
Regulations (CFR). The items inspected and the probable violations are:
1. §195.262 Pumping equipment.
(a) . . . .
(1) . . . .
(b) The following must be provided in each pump station:
(2) A device for the emergency shutdown of each pumping station.
Magellan failed to comply with the regulation because it did not provide a designated device for
the emergency shutdown (ESD) of each pump station. An ESD is a device that is designed to
initiate the process to shut down the station or a facility in the event of a failure or a hazardous
situation. During the on-site inspection at the Shinn Pence facility, the pumping station that
PHMSA observed did not have a physical ESD for the entire pump station that went into



commission in 2019. An suitable ESD was installed in the southwest corner of the facility after
PHMSA’s observation and discussion on or before August 17, 2021.
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a
related series of violations. For violation occurring on or after May 3, 2021 and before March
21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation
persists, up to a maximum of $2,251,334 for a related series of violations. For violation
occurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not
exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for
a related series of violations. For violation occurring on or after July 31, 2019 and before
January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the
violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation
occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may
not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.
For violation occurring on or after November 2, 2015, and before November 27, 2018, the
maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not
to exceed $2,090,022.
We have reviewed the circumstances and supporting documents involved in this case, and have
decided not to conduct additional enforcement action or penalty assessment proceedings at this
time. We advise you to correct the items identified in this letter. Failure to do so will result in
Magellan Terminals Holdings, LP, being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 3-2022-050-WL. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe
the redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).
Sincerely,
Gregory A. Ochs
Director, Central Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Katie McCullough, P.E. Manager, Integrity Management and Regulatory Compliance,
Katie.McCullough@MagellanLP.com
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