{"operation":"document","citation":"CPF 32022051NOA","title":"FLINT HILLS RESOURCES, LC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-06-08","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022051noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022051noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32022051noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32022051NOA","body":"Notice of Amendment involving FLINT HILLS RESOURCES, LC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3). The case was opened on 2022-06-08 and is reported as closed as of 2023-01-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32022051NOA_Closure Letter_01052023_(21-207742).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022051NOA/32022051NOA_Closure%20Letter_01052023_(21-207742).pdf\n\n32022051NOA_Closure Letter_01052023_(21-207742)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022051NOA/32022051NOA_Closure%20Letter_01052023_(21-207742)_text.pdf\n\n32022051NOA_Notice of Amendment_06082022_(21-207742).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022051NOA/32022051NOA_Notice%20of%20Amendment_06082022_(21-207742).pdf\n\n32022051NOA_Notice of Amendment_06082022_(21-207742)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022051NOA/32022051NOA_Notice%20of%20Amendment_06082022_(21-207742)_text.pdf\n\n32022051NOA_Operator Response to Notice_07072022_(21-207742).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32022051NOA/32022051NOA_Operator%20Response%20to%20Notice_07072022_(21-207742).pdf\n\n32022051NOA_Notice of Amendment_06082022_(21-207742)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: jeff.ramsey@fhr.com, kelley.cabrera@fhr.com, and\nkim.gerold@fhr.com\nJune 8, 2022\nMr. Jeff Ramsey\nPresident and CEO\nFlint Hills Resources, LLC\n4111 E. 37th Street North\nWichita, Kansas 67220\nCPF 3-2022-051-NOA\nDear Mr. Ramsey:\nFrom April 12, 2021, through October 1, 2021, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), and the Minnesota Office of Pipeline Safety\n(MNOPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) Part 195, inspected Flint\nHills Resources, LC (FHR) procedures for its Minnesota and Southern Crude system and\nNorthern Operations Group (NOG).\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nFHR’s NOG procedures, as described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies. This manual shall be reviewed at\nintervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence, and\nappropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n\n\n\nFHR’s Operations and Maintenance Liquids Manual M1410.100, Version 58.0, (O&M)\nSection 2.2 does not adequately identify which department or what position(s) is responsible\nfor filing reportable accident reports to PHMSA, the National Response Center (NRC), and\nother regulatory agencies pursuant to § 195.50 and is, therefore, inadequate to comply with\n§ 195.402(a).\nFHR must amend its written procedures to comply with the requirements of § 195.50.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies. This manual shall be reviewed at\nintervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence, and\nappropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\nFHR’s O&M does not provide adequate guidance for determining the appropriate remedial\nactions that are required following the initial inspection of extreme weather events and\nnatural disasters pursuant to § 195.414(d), and is therefore inadequate to comply with\n§ 195.402(a). Specifically, although FHR’s O&M, Section 4.16.1, states that the inspection\nand consequent remedial action, if any, shall be documented within the appropriate Work\nManagement System, the procedure does not adequately outline appropriate remedial action\nrequirements to ensure the safe operation of the pipeline. In addition, the O&M does not\nidentify what documentation is required, when the remedial actions or monitoring should be\nperformed, or what position(s) or which department is responsible for ensuring that the\nremedial actions are completed.\nFHR must amend its written procedures to comply with the requirements of § 195.414(d).\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nFHR’s O&M does not provide sufficient detail with respect to proper valve maintenance, and\nis therefore inadequate to comply with § 195.402(c)(3). Specifically, FHR’s O&M, Section\n3.2.14, identifies maintenance intervals and that valves necessary for the safe operation of the\npipeline system shall be in good working order at all times. However, the procedure does not\n2\n\n\n\ndefine a timetable to correct deficiencies identified during operation or during valve\ninspections with remedial actions documented. In addition, the procedure does not specify\nwhat proper valve maintenance entails and does not identify which department or what\nposition(s) is responsible for carrying out the valve maintenance program.\nFHR must amend its written procedures to comply with the requirements of § 195.402(c)(3).\n4. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nFHR’s O&M does not provide sufficient detail regarding the testing and inspection of\noverpressure safety and overfill systems pursuant to § 195.428(a), and is therefore inadequate\nto comply with § 195.402(c)(3). Specifically, FHR’s O&M Section 3.2.9 does not include\nreferences to FHR’s PRC 1302.044 (Overpressure Safety Device (OPSD) Relief Check\nValve, Online), PRC 1302.045 (Overpressure Safety Device (OPSD) Relief Check Valve,\nOffline), or other FHR valve inspection procedures that provide the following guidance:\n• Require inspection of discharge pressure control valves to ensure proper set point,\nspan, and zero of the control device;\n• Require testing of all transmitters/transducers that send pressure signals to logic\ncontrollers that maintain pipeline pressure at or below MOP;\n• Employs manufacturer data to derive factors affecting the calculation of capacity\nand/or direct measurement during full flow conditions;\n• Verifies that the calculated capacities include the effect of piping size and length\nassociated with the relief device.\nFHR must amend its written procedures to comply with the requirements of § 195.428(a).\n5. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nFHR’s O&M does provide adequate detail as to how periodic overfill protection device\ninspections are to be carried out pursuant to § 195.428(c), and is therefore inadequate to\n3\n\n\n\ncomply with § 195.402(c)(3). Specifically, FHR’s O&M, Section 3.2.9, does not specify\nwhich department, or what position(s), is responsible for carrying out overfill protection\ninspections. In addition, the procedure does not specify that overfill protection device\ninspections be completed in accordance to API RP 2350, Section 4.8, or other FHR technical\nguidelines or procedures that give additional detail as to how the inspections are to be\nperformed.\nFHR must amend its written procedures to comply with the requirements of § 195.428(c).\n6. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nFHR’s O&M fails to provide adequate detail as to what should be inspected during routine\nin-service breakout tank inspections pursuant to § 195.432(b), and is therefore inadequate to\ncomply with § 195.402(c)(3). Specifically, although Section 3.2.19.1 of the O&M requires\nbreakout tank visual inspections at least once per month, the procedures do not provide\nadequate detail as to what should be inspected, incorporate FHR’s AST Inspection\nGuidelines associated with routine in-service breakout tank inspections, or specifically\nidentify routine in-service inspection information required by API 653, Section 6.3.1.3\n(incorporated by reference in 49 CFR Part 195).\nFHR must amend its written procedures to comply with the requirements of § 195.432(b).\n7. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nDuring the PHMSA inspection, PHMSA determined that High-Voltage Direct-Current\n(HVDC) power lines were installed that cross FHR’s Minnesota Pipeline system. In\naddition, there are potential HVDC projects underway which would cross the Woodriver\nPipeline in the future. FHR’s technical guideline procedure, TG1603.206 (Version 18.1),\ntitled, “Cathodic Protection Criteria and Requirements for Survey and Remedial Action,”\n4\n\n\n\ndoes not incorporate HVDC power line monitoring or guidance in the event that HVDC\npower lines influence FHR’s pipeline systems pursuant to § 195.577(a). Therefore, the\nprocedure is inadequate to comply with §195.402(c)(3). Specifically, FHR’s procedure does\nnot include information as to what needs to be monitored, frequency of monitoring, or what\ndevices need to be maintained when HVDC power lines have potential to influence FHR’s\npipeline systems.\nFHR must amend its written procedures to comply with the requirements of § 195.577(a).\n8. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) . . . .\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each\nof the requirements of this subpart and subpart H of this part.\nFHR’s O&M and Technical Guideline TG1601.191 fails to adequately incorporate\natmospheric and soil-to-air deficiency remediation guidelines pursuant to § 195.581(c), and\nis therefore inadequate to comply with § 195.402(c)(3). Specifically, although FHR’s O&M,\nSection 3.3.15, refers to FHR’s Technical Guideline TG1601.191, the O&M does not directly\nincorporate by reference FHR’s procedure PRC1606.205, which is FHR’s Atmospheric\nCorrosion Evaluation Procedure. In addition, although PRC1606.205, Section 10.1, Step 8,\nspecifies that atmospheric corrosion be remedied within 36 months from the inspection date,\nthe soil-to-air interface remediation requirements are not clear. Soil-to-air interfaces must be\ncleaned and coated to protect against atmospheric corrosion because those locations do not\nfall into the exceptions listed under § 195.581(c), which allows the pipeline to not be\nprotected against atmospheric corrosion if the corrosion will not affect the safe operation of\nthe pipeline before the next inspection cycle.\nFHR must amend its written procedures to comply with the requirements of § 195.581(c).\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement Proceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\n5\n\n\n\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n90 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested that Flint Hills Resources, LC, maintain documentation of the safety improvement\ncosts associated with fulfilling this Notice of Amendment (preparation/revision of plans,\nprocedures) and submit the total to Mr. Gregory A. Ochs, Director, Central Region, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 3-2022-051-NOA and, for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Kelley Cabrera, Senior Compliance Specialist, kelley.cabrera@fhr.com\nKim Gerold, Manager, Pipeline Safety, kim.gerold@fhr.com\n6\n\n32022051NOA_Closure Letter_01052023_(21-207742)_text.pdf\n\nVIA ELECTRONIC MAIL TO: jeff.ramsey@fhr.com; kelley.cabrera@fhr.com; kim.gerold@fhr.com\nJanuary 5, 2023\nMr. Jeff Ramsey\nPresident and CEO\nFlint Hills Resources, LLC\n4111 E. 37th Street North\nWichita, Kansas 67220\nRe: CPF 3-2022-051-NOA\nDear Mr. Ramsey:\nFrom April 12, 2021, through October 1, 2021, representatives from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), and the Minnesota Office of Pipeline Safety\n(MNOPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) Part 195, conducted an\ninspection of the Flint Hills Resources, LC (FHR) procedures for its Minnesota and Southern\nCrude system and Northern Operations Group (NOG). As a result of the inspection, FHR was\nissued a Notice of Amendment on June 8, 2022, which proposed amendment of its procedures.\nFHR submitted its amended procedures on November 2, 2022. My staff has reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":16909}