{"operation":"document","citation":"CPF 32023017NOA","title":"NUSTAR LOGISTICS, L.P. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-06-13","effective_on":null,"summary":"CLOSED notice of amendment citing 195.204, 195.402(a), 195.402(c)(3), 195.440(a), 195.452(f)(1), 195.452(f)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023017noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023017noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023017noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023017NOA","body":"Notice of Amendment involving NUSTAR LOGISTICS, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.204,  195.402(a),  195.402(c)(3),  195.440(a),  195.452(f)(1),  195.452(f)(3). The case was opened on 2023-06-13 and is reported as closed as of 2024-01-31. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023017NOA_Notice of Amendment_06132023_(22-235480).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023017NOA/32023017NOA_Notice%20of%20Amendment_06132023_(22-235480).pdf\n\n32023017NOA_Notice of Amendment_06132023_(22-235480)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023017NOA/32023017NOA_Notice%20of%20Amendment_06132023_(22-235480)_text.pdf\n\n32023017NOA_Operator Response Notice (REDACTED)_09142023_(22-235480).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023017NOA/32023017NOA_Operator%20Response%20Notice%20(REDACTED)_09142023_(22-235480).pdf\n\n32023017NOA_Region Withdrawal of Notice Letter_01312024_(22-235480).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023017NOA/32023017NOA_Region%20Withdrawal%20of%20Notice%20Letter_01312024_(22-235480).pdf\n\n32023017NOA_Region Withdrawal of Notice Letter_01312024_(22-235480)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023017NOA/32023017NOA_Region%20Withdrawal%20of%20Notice%20Letter_01312024_(22-235480)_text.pdf\n\n32023017NOA_Region Withdrawal of Notice Letter_01312024_(22-235480)_text.pdf\n\nWITHDRAWAL of NOTICE LETTER\nVIA ELECTRONIC MAIL TO: Brad.Barron@nustarenergy.com; and\nGary.Koegeboehn@nustarenergy.com\nJanuary 31, 2024\nMr. Brad Barron\nPresident and Chief Executive Officer\nNuStar Pipeline Operating Partnership, L.P.\n19003 IH-10 West\nSan Antonio, TX 78257\nCPF 3-2023-017-NOA\nDear Mr. Barron:\nOn June 13, 2023, NuStar Pipeline Operating Partnership, L.P. (NuStar) was issued a Notice of\nAmendment Letter for the case number referenced above (Notice). This Notice cited NuStar for\nmultiple inadequacies in NuStar’s procedures for its pipeline facilities in Texas, Louisiana,\nArkansas, Missouri, Iowa, Indiana, Illinois, and Nebraska.\nThis letter is to inform you that PHMSA hereby withdraws the Notice, without prejudice, and\nreserves the right to seek future enforcement action based upon the allegations in the Notice. This\ncase is now closed.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Gary Koegeboehn, V.P. of Pipeline Operations (Gary.Koegeboehn@nustarenergy.com)\n\n32023017NOA_Notice of Amendment_06132023_(22-235480)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Brad.Barron@nustarenergy.com and\nGary.Koegeboehn@nustarenergy.com\nJune 13, 2023\nMr. Brad Barron\nPresident and Chief Executive Officer\nNuStar Pipeline Operating Partnership, L.P.\n19003 IH-10 West\nSan Antonio, TX 78257\nRE: NuStar Logistics, L.P.\nNuStar Pipeline Operating Partnership, L.P.\nCPF 3-2023-017-NOA\nDear Mr. Barron:\nFrom May 3, 2022, through December 14, 2022, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected NuStar Logistics, L.P.’s and NuStar Pipeline Operating Partnership, L.P.’s\n(NuStar)1 procedures for its pipeline facilities in Texas, Louisiana, Arkansas, Missouri, Iowa,\nIndiana, Illinois, and Nebraska.\nAs a result of the inspection, PHMSA has identified the apparent inadequacies found within\nNuStar’s plans or procedures. The items inspected and the inadequacies are described below:\n1. § 195.204 Inspection – general.\nInspection must be provided to ensure that the installation of pipe or pipeline\nsystems is in accordance with the requirements of this subpart. Any operator\npersonnel used to perform the inspection must be trained and qualified in the phase\nof construction to be inspected. An operator must not use operator personnel to\nperform a required inspection if the operator personnel performed the construction\ntask requiring inspection. Nothing in this section prohibits the operator from\n1 NuStar Pipeline Operating Partnership, L.P. operates NuStar Logistics, L.P.’s South Texas refined products assets\nand NuStar Pipeline Operating Partnership, L.P.’s anhydrous ammonia assets\n\n\n\ninspecting construction tasks with operator personnel who are involved in other\nconstruction tasks.\nNuStar’s Operations and Maintenance Manual, revised December 31, 2021, (O&M) does not\nprovide adequate guidance for new pipeline construction as required under § 195.204.\nSpecifically, NuStar’s O&M Procedures 613 “General Guidance for Pipeline Repairs,\n” 614\n“Detailed Pipeline Repair Procedures,\n” nor other O&M Procedures specify that NuStar\ndesignated personnel will not perform a required inspection if the same personnel performed the\nconstruction task requiring inspection.\nNuStar must amend its written procedures to comply with the requirements of § 195.204.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies. This\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once\neach calendar year, and appropriate changes made as necessary to insure that\nthe manual is effective. This manual shall be prepared before initial operations\nof a pipeline system commence, and appropriate parts shall be kept at locations\nwhere operations and maintenance activities are conducted.\nNuStar’s O&M required under § 195.402(a) is inadequate because it does not provide guidance\nfor the identification and labeling of valves to ensure communication consistency between field\nand control room personnel pursuant to § 195.404(a)(1)(iv), which requires that the operator\nmaintain current maps and records of its pipeline systems that include the location and\nidentification of Pipeline valves.\nSpecifically, NuStar’s O&M Procedure 315 “Valve Maintenance” Section 3.3 requires that the\noperator coordinate with the control room prior to maintenance or inspection. In addition, O&M\nProcedure 318 “Scraper and Sphere Facilities” Sections 3.3.1 and 3.3.2 require notification of the\nControl Center and/or the appropriate operations personnel prior to launching and after receiving\npipeline pigs respectively. Further, O&M Procedures 302 “Maps and Records,” Section 3.1 and\n603 “Construction/Design Requirements for Pipeline Systems,” Section 4.1 provide guidance for\nthe identification and location of valves. However, PHMSA observed that valve identifications,\nor labels, were not present on valves, or inconsistent with P&IDs, Control Room screens, and\nHMI screens. NuStar’s procedures do not address valve identification on field devices to ensure\nconsistency during normal and emergency operations.\nNuStar must amend its written procedures to comply with the requirements of §\n195.404(a)(1)(iv).\n\n\n\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and\nmaintenance activities and handling abnormal operations and emergencies.\nThis manual shall be reviewed at intervals not exceeding 15 months, but at least\nonce each calendar year, and appropriate changes made as necessary to insure\nthat the manual is effective. This manual shall be prepared before initial\noperations of a pipeline system commence, and appropriate parts shall be kept\nat locations where operations and maintenance activities are conducted.\nNuStar’s O&M Procedure 315 “Valve Maintenance” required under § 195.402(a) is inadequate\nbecause it does not define what valves are necessary for the safe operation of the pipeline\npursuant to § 195.420(a). Section § 195.420(a) states, “Each operator shall maintain each valve\nthat is necessary for the safe operation of its pipeline systems . . . ” Specifically, NuStar’s\nprocedures must provide guidance on how to differentiate and maintain valves necessary for safe\noperation other than mainline valves. In addition, the procedures do not define the inspection\nperiod(s) for valves necessary for the safe operation of the pipeline system other than mainline\nvalves. In addition, the procedures do not define how NuStar plans to maintain valves necessary\nfor the safe operation other than mainline valves.\nNuStar must amend its written procedures to comply with the requirements of § 195.420(a).\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\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nNuStar’s O&M Procedure 315 “Valve Maintenance” required under § 195.402(c)(3) is\ninadequate because the procedures do not provide detailed guidance for how valve inspections\nare to be performed to ensure that the valve is functioning properly pursuant to § 195.420(b).\nSection § 195.420(b) states, “Each operator must, at least twice each calendar year, but at\nintervals not exceeding 71⁄2 months, inspect each valve to determine that it is functioning\nproperly. Each rupture-mitigation valve (RMV), as defined in § 195.2, or alternative equivalent\ntechnology that is installed under § 195.258(c) or § 195.418, must also be partially operated.\nOperators are not required to close the valve fully during the drill; a minimum 25 percent valve\nclosure is sufficient to demonstrate compliance, unless the operator has operational information\nthat requires an additional closure percentage for maintaining reliability.”\nSpecifically, Section 3.3 of O&M Procedure 315 outlines mainline valve inspection procedures\n\n\n\nand in step 4 instructs field personnel that Form 6101 (Valve Inspection Report), Form 6109\n(Ammonia Line Break Operator Inspection Report), or similar is to be prepared. However, the\nprocedures do not adequately outline specific steps needed for the different types of mainline\nvalves, such as motor-operated valves, manual valves, line break valves, etc. In addition, the\nprocedures do not address the inspection of RMVs, remote-control valves (RCVs), alternative\ntechnology, etc.\nNuStar must amend its written procedures to comply with the requirements of § 195.420(b).\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\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nNuStar's Corrosion Control Manual, required under § 195.402(c)(3), is inadequate because it\ndoes not include instructions that the operator must inspect all pipe coating prior to lowering the\npipe into the ditch or submerging the pipe pursuant to § 195.561(a). Section § 195.561(a) states,\n“You must inspect all external pipe coating required by § 195.577 just prior to lowering the pipe\ninto the ditch or submerging the pipe.”\nSpecifically, the Corrosion Control Manual, Section 3.8 - Coating Inspections “New\nConstruction and Repairs,” does not reference NuStar’s engineering standard NS-ES-20-001\nVersion D “Pipeline Construction.” In addition, NS-ES-20-001 in Section 11.5 “Holiday\nInspection” outlines in Table 1 the requirements for holiday detection. However, Table 1 does\nnot cover jeep/holiday detection for Abrasion Resistant Overcoat (ARO) coating. Further,\nNuStar’s Standard NS-ES-20-001 does not specify that Horizontal Directional Drilling (HDD)\npipe coating and pipe be inspected after being pulled through the bore hole to document and\nverify the piping and coating were not damaged during the HDD pull.\nNuStar must amend its written procedures to comply with the requirements of § 195.561(a).\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\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) . . .\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\n\n\n\nNuStar’s Liquid Pipeline Integrity Management Program and Procedures Manual, Version 9.0,\n(IMP) required under § 195.402(c)(3) is inadequate because the IMP Plan in Appendix I “SCC\nManagement Plan” does not provide adequate guidance for Stress Corrosion Cracking (SCC)\nDirect Assessment, pursuant to § 195.588(c). Section § 195.588(c) states, “If you use direct\nassessment on an onshore pipeline to evaluate the effects of stress corrosion cracking, you must\ndevelop and follow a Stress Corrosion Cracking Direct Assessment plan that meets all\nrequirements and recommendations of NACE SP0204-2008 (incorporated by reference). . . ”\nHowever, Appendix I of NuStar’s IMP Plan incorporates by reference only certain sections of\nNACE SP0204-2008. PHMSA requires that the SCC Direct Assessment plan meet all of the\nrequirements of NACE SP0204-2008.\nNuStar must amend its IMP procedures to comply with the requirements of § 195.588(c).\n7. § 195.440 Public Awareness.\n(a) Each pipeline operator must develop and implement a written continuing public\neducation program that follows the guidance provided in the American\nPetroleum Institute's (API) Recommended Practice (RP) 1162 (incorporated by\nreference, see § 195.3).\nNuStar’s Public Awareness Program, revised December 31, 2021, (PA Plan) required under §\n195.440(a) is inadequate because it does not provide adequate guidance to address\nsupplemental communication evaluation review and documentation as required under §\n195.440(i). Section § 195.440(i) states, “The operator's program documentation and evaluation\nresults must be available for periodic review by appropriate regulatory agencies.” Specifically,\nNuStar’s PA Plan in Section 3.7.1 “Supplemental Communication Evaluation Process” states\nthat the Public Awareness Committee shall conduct a review every other year and additional\nreviews may be conducted if evaluation factors have changed significantly. However, the PA\nPlan does not outline where, or how, this review is to be documented. NuStar’s current practice,\nbased on PHMSA observations, is to use Forms 6207 and/or 6301. However, neither form is\nidentified in the procedures.\nNuStar must amend its written PA Plan to clarify documentation requirements to comply with §\n195.440(i).\n8. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions\ndrawn from results of the integrity assessments, and other maintenance and\nsurveillance data, and evaluation of consequences of a failure on the high\nconsequence area. An operator must include, at minimum, each of the following\nelements in its written integrity management program:\n\n\n\n(1) A process for identifying which pipeline segments could affect a high\nconsequence area;\nNuStar’s Facility Integrity Management Program, Version 1, (FIMP) does not provide adequate\nguidance for air-dispersion modeling and is therefore inadequate to comply with § 195.452(f)(1).\nSpecifically, the FIMP does not incorporate an air dispersion model for an ammonia release from\na pump station or facility. The air-dispersion modeling is carried out in accordance with\nNuStar’s IMP Plan, Section 1.4 for mainline pipe. However, the FIMP Plan does not incorporate\na reference to the IMP Plan for air-dispersion modeling.\nNuStar must amend its written procedures to comply with the requirements of § 195.452(f)(1).\n9. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions\ndrawn from results of the integrity assessments, and other maintenance and\nsurveillance data, and evaluation of consequences of a failure on the high\nconsequence area. An operator must include, at minimum, each of the following\nelements in its written integrity management program:\n(1) . . .\n(3) An analysis that integrates all available information about the integrity of the\nentire pipeline and the consequences of a failure (see paragraph (g) of this\nsection);\nNuStar’s IMP procedures required under § 195.452(f)((3) are inadequate because the procedures\ndo not provide proper guidance for the evaluation methods of geotechnical threats pursuant to §\n195.452(g)(1)(xxi).\nSection § 195.452(g)(1)(xxi) states that the operator, “Integrate information and attributes about\nthe pipeline that include . . . Other pertinent information derived from operations and\nmaintenance activities and any additional tests, inspections, surveys, patrols, or monitoring\nrequired under this part.”\nSpecifically, the IMP procedures in Sections 7.1 and 7.2 do not outline specific methods to be\nused for the evaluation of geotechnical threats. In addition, Appendix D of the IMP procedures\nnote that internal navigation tools are useful for mapping. However, the procedures do not\nindicate that Inertial Measurement Unit (IMU) inline inspection, or other tools are to be used to\nanalyze geotechnical threats and/or pipeline strain. PHMSA’s Advisory Bulletin, ADB 2022-\n0063, outlines additional guidance an operator should consider to address the potential for\ndamage to pipeline facilities caused by earth movement and other geological hazards.\nNuStar must amend its IMP procedures to comply with the requirements of § 195.452(g)(1)(xxi).\n\n\n\n10. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions\ndrawn from results of the integrity assessments, and other maintenance and\nsurveillance data, and evaluation of consequences of a failure on the high\nconsequence area. An operator must include, at minimum, each of the following\nelements in its written integrity management program:\n(1) . . .\n(3) An analysis that integrates all available information about the integrity of the\nentire pipeline and the consequences of a failure (see paragraph (g) of this\nsection);\nNuStar’s IMP procedures required under § 195.452(f)((3) are inadequate because the procedures\ndo not include the appropriate assessment methods associated with pipeline circumferential crack\nintegrity threats pursuant to § 195.452(j)(5)(i).\nSection § 195.452(j)(5)(i) states, “. . . For pipeline segments that are susceptible to cracks (pipe\nbody and weld seams), an operator must use an in-line inspection tool or tools capable of\ndetecting crack anomalies. . . ”\nThe IMP procedures Appendix D specifies “Anomaly Types, Detection Tools, and Assessment\nMethods” that are appropriate to specific integrity threats. However, the IMP procedures do not\ninclude methods for assessing circumferential stress corrosion cracking, which was identified as\nthe cause of failure of NuStar’s 10-inch pipeline from Chatham, Louisiana to Hampton,\nArkansas, near El Dorado, Arkansas on February 27, 2022.\nNuStar must amend its written procedures to include additional assessment methods for\ncircumferential SCC as applicable to its pipeline systems in order to comply with the\nrequirements of § 195.452(j)(5)(i).\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\nCompliance 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\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 NuStar maintain documentation of the safety improvement costs associated\nwith fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit\nthe total to Gregory Ochs, Director, Central Region, Pipeline and Hazardous Materials Safety\nAdministration. In correspondence concerning this matter, please refer to CPF 3-2023-017-NOA\nand, for each document you submit, please provide a copy in electronic format whenever\npossible.\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: Gary Koegeboehn\nVice President of Pipeline Operations\nNuStar Pipeline Operating Partnership, L.P.\n19003 IH-10 West\nSan Antonio, Texas 78257\ngary.koegeboehn@nustarenergy.com","truncated":false,"body_characters":22873}