{"operation":"document","citation":"CPF 32023022NOPV","title":"MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-08-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.264(b)(1)(i), 195.402(a), 195.404(c)(3), 195.412(a), 195.428(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023022nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023022nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023022nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023022NOPV","body":"Notice of Probable Violation involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.264(b)(1)(i),  195.402(a),  195.404(c)(3),  195.412(a),  195.428(a). The case was opened on 2023-08-24 and is reported as closed as of 2024-10-08. Proposed civil penalty: $219,500. Assessed civil penalty: $150,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023022NOPV_Closure Letter_10082024_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Closure%20Letter_10082024_(22-234357).pdf\n\n32023022NOPV_Closure Letter_10082024_(22-234357)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Closure%20Letter_10082024_(22-234357)_text.pdf\n\n32023022NOPV_Consent Agreement and Order_01222024_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Consent%20Agreement%20and%20Order_01222024_(22-234357).pdf\n\n32023022NOPV_Consent Agreement and Order_01222024_(22-234357)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Consent%20Agreement%20and%20Order_01222024_(22-234357)_text.pdf\n\n32023022NOPV_Op Resp to Notice and Req for Hearing_09222023_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Op%20Resp%20to%20Notice%20and%20Req%20for%20Hearing_09222023_(22-234357).pdf\n\n32023022NOPV_Operator Withdrawal of Hearing Request_01262024_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_01262024_(22-234357).pdf\n\n32023022NOPV_PCP PCO_08242023_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PCP%20PCO_08242023_(22-234357).pdf\n\n32023022NOPV_PCP PCO_08242023_(22-234357)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PCP%20PCO_08242023_(22-234357)_text.pdf\n\n32023022NOPV_PHC Hearing Scheduled_10162023_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PHC%20Hearing%20Scheduled_10162023_(22-234357).pdf\n\n32023022NOPV_PHC Hearing Scheduled_10162023_(22-234357)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PHC%20Hearing%20Scheduled_10162023_(22-234357)_text.pdf\n\n32023022NOPV_Consent Agreement and Order_01222024_(22-234357)_text.pdf\n\nJanuary 22, 2024\nVIA ELECTRONIC MAIL TO: Pierce.Norton@oneok.com\nPierce H. Norton II\nPresident and Chief Executive Officer\nONEOK, Inc.\n100 West Fifth Street\nTulsa, Oklahoma 74103\nCPF No. 3-2023-022-NOPV\nDear Mr. Norton:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Magellan Midstream\nPartners, LP which was executed on January 16, 2024. Service of the Consent Order and Consent\nAgreement by electronic mail is deemed effective upon the date of transmission and\nacknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Order and Consent Agreement\ncc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Danny Scroggins, Senior Attorney, ONEOK, Danny.Scroggins@oneok.com\nMr. Mark Materna, Director, Pipeline Integrity, ONEOK, Mark.Materna@oneok.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nMAGELLAN MIDSTREAM )\nPARTNERS, LP, ) CPF No. 3-2023-022-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated August 24, 2023, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice) to Magellan Midstream Partners, LP (Magellan\nor Respondent). On September 25, 2023, Magellan was acquired by ONEOK, Inc.\nIn response to the Notice, Respondent contested the allegation of violation, proposed civil penalty,\nand proposed compliance order term for Item 5, and the proposed civil penalty for Item 6. Magellan\nrequested a hearing and the opportunity to meet informally with PHMSA to discuss Items 5 and 6\nin the Notice. Respondent and PHMSA (the Parties) subsequently met to discuss the issues raised\nin the Response. As a result of those discussions, as explained in more detail below, the Parties\nhave agreed to a Consent Agreement by which PHMSA makes findings of violation for Items 1,\n2, 4, and 6, assesses a reduced civil penalty of $150,700, withdraws Item 5, and sets out certain\ncorrective actions that Magellan will complete.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nConsent Order. Magellan is hereby ordered to comply with the terms of the Consent Agreement\npursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent\nOrder may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49\nC.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of\nthe United States.\nThe terms and conditions of this Consent Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\nJanuary 22, 2024\n______________________________ ______________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nMAGELLAN MIDSTREAM )\nPARTNERS, LP, ) CPF No. 3-2023-022-NOPV\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom February 7, 2022 through October 14, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.), conducted an on-site inspection of Magellan Midstream\nPartners LP’s (Magellan or Respondent) Central, North, and Razorback system records and\nfacilities in Arkansas, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma,\nSouth Dakota, and Wisconsin. As of September 25, 2023, Magellan was acquired by ONEOK,\nInc.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated August 24, 2023, a Notice of Probable Violation, Proposed Compliance Order, and\nProposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Magellan committed violations of six provisions of 49 C.F.R. part 195, proposed\nordering Respondent to take certain measures to correct the alleged violations, and proposed a civil\npenalty of $219,500. Item 3 was brought as a warning, advising the operator to correct the probable\nviolation or face potential future enforcement action.\nMagellan responded to the Notice by letter dated September 22, 2023 (Response). The company\ncontested the violation, the proposed civil penalty, and the proposed compliance order for Item 5,\nand the proposed civil penalty for Item 6. Magellan requested an informal meeting with PHMSA\nto discuss both Items 5 and 6 and requested a hearing on these Items.\nPHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the\nResponse. As a result of those discussions and as explained in more detail below, the Parties have\nagreed to a Consent Agreement by which PHMSA makes findings of violations for Items 1, 2, 4,\nand 6, assesses a reduced civil penalty of $150,700, withdraws Item 5, and sets out certain\ncorrective actions that Magellan will complete.\n\n\n\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the environment,\npursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent and agreement,\nthe Parties hereby agree as follows:\nI. General Provisions\n1. Respondent acknowledges that as the operator of the pipeline facilities subject to\nthe Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the\nFederal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and\nthe regulations and orders issued thereunder.\n2. After Respondent returns this signed Agreement to PHMSA, the Agency’s\nrepresentative will present it to the Associate Administrator for Pipeline Safety, recommending that\nthe Associate Administrator adopt the terms of this Agreement by issuing an administrative order\n(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute\nan offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate\nAdministrator will issue a Consent Order incorporating the terms of this Agreement.\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except for the Dispute Resolution\nprovisions set forth herein. Respondent agrees to withdraw its request for an administrative hearing\nregarding the Notice.\n4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of Respondent’s officers, employees, and agents\nwhose duties might reasonably include compliance with this Agreement.\n5. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement. The\nParties acknowledge that there are no representations, agreements or understandings relating to\nsettlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's\nright of access, entry, inspection, and information gathering or PHMSA's authority to bring\n\n\n\nenforcement actions against Respondent pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Respondent’s pipeline\nsystem referenced herein, Respondent will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Respondent will provide written notice of the\ntransfer to the Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,\nor a modification of any permit, under any Federal, State, or local laws or regulations. Respondent\nremains responsible for achieving and maintaining compliance with all applicable Federal, State,\nand local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Respondent\nagrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,\nand representatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Except as set forth herein, this Agreement does not constitute a finding of violation\nof any other federal law or regulation and may not be used in any civil proceeding of any kind as\nevidence or proof of any fact, fault, or liability, or as evidence of a violation of any law, rule,\nregulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or\nin future PHMSA enforcement actions.\nII. Findings of Violation:\n11. Item 1- 49 C.F.R. § 195.264(b)(1)(i): The Notice alleged that Magellan failed to\nsatisfy the requirements of Section 22.11.2 of NFPA-30 (2012 ed.) regarding impoundment around\nbreakout tanks. Specifically, the Notice alleged that PHMSA’s field inspection of Magellan tanks\n1516, 1517, 1521, and 3502 at the Kansas City East Tank Farm in Kansas City, Kansas, found that\nMagellan failed to subdivide the tanks, and failed to have drainage channels or intermediate dikes\ninstalled in accordance with the referenced standard and the regulation. Respondent does not\ncontest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of\n49 C.F.R. § 195.264(b)(1)(i).\n12. Item 2- 49 C.F.R. § 195.402(a): The Notice alleged that Magellan failed to follow\nprocedures for conducting normal operations and maintenance activities and handling abnormal\noperations and emergencies. Specifically, the Notice alleged that Magellan failed to take corrective\naction where deficiencies were found during abnormal operations. Respondent does not contest\nthe allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R.\n§ 195.402(a).\n\n\n\n13. Item 4- 49 C.F.R. § 195.404(c)(3): The Notice alleged that Magellan failed to\nmaintain a record of each inspection and test required for at least two years or until the next\ninspection or test is performed. Specifically, the Notice alleged that Magellan failed to maintain\neight records for Tank 408 in Nebraska City, Nebraska, from April of 2021 and January through\nJuly of 2022. Respondent does not contest the allegation of violation as alleged in the Notice. As\nsuch, PHMSA finds a violation of 49 C.F.R. § 195.404(c)(3).\n14. Item 6- 49 C.F.R. § 195.428(a): The Notice alleged that Magellan failed to inspect\nand test two devices at its Roland, Iowa facility for calendar year 2020. Specifically, the Notice\nalleged that during the field inspection and records review of Roland, Iowa, facility, PHMSA found\nthat two devices, thermal relief MLBV 64 and thermal relief MLBV 65, were not inspected and\ntested. Respondent does not contest the allegation of violation as alleged in the Notice. As such,\nPHMSA finds a violation of 49 C.F.R. § 195.428(a).\n15. Items 1, 2, 4 and 6, will be considered by PHMSA as prior offenses in any future\nPHMSA enforcement action taken against Respondent for the five (5)-year period following the\nEffective Date of this Agreement.\nIII. Warning Item:\n16. Item 3- 49 C.F.R. § 195.402(a): The Notice alleged that Magellan failed to follow\nprocedures for conducting normal operations and maintenance activities and handling abnormal\noperations and emergencies. Specifically, the Notice alleged that during the field inspection and\nrecords review at Fargo, North Dakota, PHMSA found that five devices were not properly\ndocumented as required by the procedure. This Item was brought as a Warning Item and does not\nconstitute a finding of violation. Respondent accepts the warning as alleged in the Notice.\n17. For Warning Item 3, if OPS finds a violation of these provisions in a\nsubsequent inspection, Respondent may be subject to future enforcement action.\nIV. Items Withdrawn:\n18. Item 5- 49 C.F.R. § 195.412(a): With respect to Item 5 of the Notice, the Parties\nagree that this Item should be withdrawn in its entirety following review of Magellan’s Response,\nwhich included Magellan’s 7.05-ADM-006 Inspection of Right-of-Way Procedure and 2022\nseasonal Ground Patrol records. These documents show that Respondent was not out of\ncompliance with the regulation. Because this Item will be withdrawn, it will not constitute a finding\nof violation for any purpose, and no further action by Respondent is necessary to achieve\ncompliance. As such, the allegation of violation for Item 5, the proposed civil penalty associated\nwith this Item, and the proposed compliance order associated with this Item are withdrawn.\nV. Civil Penalty:\n19. Item 4: The Notice proposed assessing a civil penalty in the amount of $65,100.\nRespondent did not contest the proposed civil penalty for this Item. As such, Respondent shall pay\na civil penalty in the amount of $65,100 for Item 4.\n\n\n\n20. Item 5: The Notice proposed assessing a civil penalty in the amount of $68,800 for\nItem 5. Respondent contested the proposed civil penalty for this Item. Following discussions with\nRespondent, PHMSA determined that Magellan was not out of compliance with the regulation and\nthis proposed civil penalty was withdrawn.\n21. Item 6: The Notice proposed assessing a civil penalty in the amount of $85,600 for\nItem 6. Following discussion with PHMSA, Respondent agrees to pay a civil penalty in the amount\nof $85,600 for the violation in Item 6.\n22. In total, based on Paragraphs 19-21, Respondent shall pay an adjusted civil penalty\nin the amount of $150,700, pursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be\npaid in full no later than 20 days from the Effective Date of this Agreement.\nVI. Compliance Order:\n23. Item 1: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. As\nsuch, Respondent agrees to perform the following corrective measures:\nA. In regard to Item 1 of the Notice pertaining to Magellan’s failure to satisfy the\nrequirements of Section 22.11.2 of NFPA-30 (2012 edition) regarding the\nimpoundment around breakout tanks, Magellan must:\n(i) Subdivide the tanks preferably by drainage channels or at least by intermediate\ndikes, in accordance with NFPA 30 at the Kansas City East Terminal within twelve\n(12) months of receipt of the Consent Order.\n(ii) Submit to the Director, Central Region, evidence of remediated locations to\ndemonstrate compliance with NFPA 30.\n24. Item 2: The Notice proposed certain compliance order actions to address the non-\ncompliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. As\nsuch, Respondent agrees to perform the following corrective measures:\nB. In regard to Item 2 of the Notice pertaining to Magellan’s failure to take corrective\naction on two documented abnormal operations (AO), Magellan must amend its\nprocedures to incorporate timeframe requirements for the review, corrective action,\nand documentation of AOs to ensure timely corrective action is completed where\ndeficiencies are found. The revised procedures shall be submitted to the Director,\nPHMSA Central Region for review and approval within 60 days of receipt of the\nConsent Order.\nIt is requested that Magellan Midstream Partners, LP maintain documentation of\nthe safety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Gregory A. Ochs, Director, Central Region, OPS, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: (1) total cost associated with preparation/revision of\nC.\n\n\n\nplans, procedures, studies and analyses, and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.1\nVII. Enforcement:\n25. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $257,664 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with the\ndeterminations made by the Director, or in accordance with decisions of the Associate\nAdministrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil\npenalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and\nassociated schedules set forth or referenced in Section VI are automatically incorporated into this\nAgreement and are enforceable in the same manner.\nVIII. Review and Approval Process:\n26. With respect to any submission under Section VI (Compliance Order) of this\nAgreement that requires the approval of the Director, the Director may: (a) approve, in whole or\nin part, the submission; (b) approve the submission on specified, reasonable conditions; (c)\ndisapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the\nDirector approves, approves in part, or approves with conditions, Respondent will take all actions\nas approved by the Director, subject to Respondent’s right to invoke the dispute resolution\nprocedures with respect to any conditions the Director identifies. If the Director disapproves all or\nany portion of the submission, the Director will provide Respondent a written notice of the\ndeficiencies. Respondent will correct all deficiencies within the time specified by the Director and\nresubmit it for approval.\nIX. Dispute Resolution:\n27. The Director and Respondent will informally attempt to resolve any disputes arising\nunder this Agreement, including any decision of the Director under the terms of Section VI,\nCompliance Order. If Respondent and the Director are unable to informally resolve the dispute\nwithin 15 calendar days after the dispute is first raised, in writing, to the Director, Respondent may\nsubmit a written request for a determination resolving the dispute from the Associate Administrator\nfor Pipeline Safety, PHMSA. Such request must be made in writing and provided to the Director,\ncounsel for the Central Region, and to the Associate Administrator for Pipeline Safety, no later\nthan 10 calendar days from the 15-day deadline for informal resolution referenced in this\nparagraph. Along with its request, Respondent must provide the Associate Administrator with all\ninformation Respondent believes is relevant to the dispute. Decisions of the Associate\nAdministrator under this paragraph will constitute final agency action. The existence of a dispute\nand PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term\nor timeframe for completion of any work to be performed under this Agreement during the\npendency of the dispute resolution process.\n1 This Proposed Compliance Order term was originally term D in the Notice.\n\n\n\nX. Effective Date:\n28. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nXI. Recordkeeping and Information Disclosure:\n29. Unless otherwise required in this Agreement, Respondent agrees to maintain\nrecords demonstrating compliance with all requirements of this Agreement for a period of at least\nfive (5) years following completion of all work to be performed. For any reports, plans, or other\ndeliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may\nassert a claim of business confidentiality or other protections applicable to the release of\ninformation by PHMSA, covering part or all of the information required to be submitted to\nPHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must mark\nthe claim of confidentiality in writing on each page and include a statement specifying the grounds\nfor each claim of confidentially. PHMSA determines release of any information submitted\npursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act,\n5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.\nXII. Modification:\n30. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nXIII. Termination:\n31. This Agreement will remain in effect until the Compliance Order in Section VI is\nsatisfied, as determined by the Director, and payment of the Civil Penalty in Section V is made.\nThe Agreement shall not terminate until the Director confirms, in writing, that the Agreement is\nterminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement.\nXIV. Ratification:\n32. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n33. The Parties hereby agree to all findings, conditions, and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor MAGELLAN MIDSTREAM PARTNERS, LP:\n_________________________\nJason A. Smith, Vice President of Asset Integrity\n________________________\nDate\nFor PHMSA:\n________________________________________\nDirector, Central Region, Office of Pipeline Safety\n________________________\nDate\n\n32023022NOPV_Op Resp to Notice and Req for Hearing_09222023_(22-234357).pdf\n\nOne Williams Center\nPO BOX 22186\nTulsa, OK 74172-2186\nSeptember 22, 2023\nVia Electronic Mail to: Gregory.Ochs@dot.gov\nMr. Gregory A. Ochs, Director\nCentral Region, Pipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, MO 64106\nRe: CPF 3-2023-022\nDear Mr. Ochs,\nMagellan Pipeline Company, L.P. (“Magellan”) received a Notice of Probable Violation (NOPV),\nProposed Civil Penalties and Proposed Compliance Order, CPF 3-2023-022, on August 24,\n2023. Pursuant to 49 CFR 190.209, Magellan requested a copy of the Case File to review the\nbasis for the allegations and a copy of the Proposed Civil Penalty Worksheet on August 29,\n2023 which PHMSA provided on September 1, 2023. Magellan respectfully submits the\nfollowing response in accordance with the Response Options for Pipeline Operators in\nEnforcement Proceedings.\nMagellan contests the probable violation, proposed Civil Penalty and proposed Compliance Order\nfor Item #5 as explained in this response. Magellan does not contest the basis for the\nremaining items, but does contest the Civil Penalty Calculation for Item #6. Magellan requests\na hearing on this matter and also requests an informal settlement conference as it believes that\nthis matter can be fully resolved prior to a hearing.\nItem #5: § 195.412 Inspection of rights-of-way and crossings under navigable waters.\n(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each\ncalendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way.\nMethods of inspection include walking, driving, flying or other appropriate means of\ntraversing the right-of-way.\nMagellan failed to inspect the surface conditions on or adjacent to each pipeline right-of-way\n(ROW) with an acceptable method.\nSpecifically, Magellan did not maintain the pipeline right-of-way conditions at a level that\nallowed for effective aerial inspection of the surface conditions on or adjacent to the ROW and\ndid not select an alternate patrol method that would allow effective inspection based on the\ncondition of the ROW. PHMSA’s onsite inspection discovered excessive vegetation cover over\n\n\n\nthe ROW in Grand Forks, North Dakota near 34th street and Desert Star Lane. This location\nhad been aerially patrolled, however, no deficiencies in the ROW condition were called out by\nthe patrol.\nMAGELLAN RESPONSE:\nMagellan contests Item #5, the associated Proposed Compliance Order and the\nProposed Civil Penalty associated with this item. Magellan had been performing\nground patrols of the area near 34th Street and Desert Star Lane prior to the 2022\ninspection and has associated documentation of ground patrols of this area. Magellan\naerial patrols this line year-round in addition to performing supplemental ground\npatrols seasonally due to tree foliage (typically June through October) from MP 177\nto MP 179 (which includes the 34th Street and Desert Star Lane area). No deficiencies\nindicative of a potential release were identified on the ROW during these patrols.\nPlease see Attachment #1 – Ground Patrols with the 2022 seasonal ground patrol\nrecords.\nIn addition to completing seasonal ground patrols for the area noted, Magellan has a\nprocedure detailing the requirement for aerial patrol pilots to document vegetation\novergrowth and deficiencies in the ROW condition. Please see Attachment #2, 7.05-\nADM-006 Inspection of Right-of-Way Procedure.\nMagellan requests that this Probable Violation Item #5, associated Proposed\nCompliance Order and associated Proposed Civil Penalty be rescinded from CPF 3-\n2023-022.\nItem #6: § 195.428 Overpressure safety devices and overfill protection systems.\n(a) Except as provided in paragraph (b) of this section, each operator shall, at intervals\nnot exceeding 15 months, but at least once each calendar year, or in the case of pipelines\nused to carry highly volatile liquids, at intervals not to exceed 7½ months, but at least\ntwice each calendar year, inspect and test each pressure limiting device, relief valve,\npressure regulator, or other item of pressure control equipment to determine that it is\nfunctioning properly, is in good mechanical condition, and is adequate from the\nstandpoint of capacity and reliability of operation for the service in which it is used.\nMagellan failed to inspect and test two devices at its Roland, Iowa facility for calendar year\n2020.\nDuring the field inspection and records review of Roland, Iowa, facility, PHMSA found that\ntwo devices, thermal relief MLBV 64 and thermal relief MLBV 65, were not inspected and\ntested. This is a repeat violation found in CPF# 320195007 Item 2.\nMAGELLAN RESPONSE:\nMagellan requests that PHMSA remove the “repeat violation” factor from its penalty\ncalculation and reduce the total in the Civil Penalty Calculation for Item #6,\naccordingly. The citation in CPF# 3-2019-5007, Item 2 involved CFR 195.428(c) for\n2\n\n\n\nmissing overfill protection inspections on pressure vessels in Des Moines, Iowa,\nwhereas Item 6 is associated with CFR 195.428(a) involving thermal relief valve\ninspection records on block valves in Roland, Iowa. Magellan asserts that these\ndevices are distinct in function and operational use, and are located at distinct and\ndifferent facilities.\nMagellan appreciates the opportunity to respond and proactively work through the alleged\nviolations with PHMSA in an effort to make the hearing unnecessary. If you have any questions\nor need additional information, please contact me by phone at (918) 574-7073 or e-mail at\nmark.materna@magellanlp.com to discuss.\nSincerely,\nMark Materna\nDirector, Pipeline Integrity\nCc: Jason Smith, Vice President, Asset Integrity, Magellan\n3\n\n32023022NOPV_Closure Letter_10082024_(22-234357)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Pierce.Norton@oneok.com; Mark.Materna@oneok.com;\nDanny.Scroggins@oneok.com\nOctober 8, 2024\nMr. Pierce Norton\nChief Executive Officer\nONEOK, Inc.\n100 West Fifth Street\nTulsa, Oklahoma 74109\nRE: CPF 3-2023-022-NOPV\nDear Mr. Norton:\nOn January 22, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued a Consent Order incorporating the terms of the Consent Agreement entered into between\nPHMSA and Magellan Midstream Partners, LP (Magellan) in the above-referenced case. This\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation provided by your staff, and confirmation of payment of the civil penalty on\nFebruary 2, 2024, it has been determined that Magellan has complied with the terms of this\nConsent Order.\nAccordingly, this case is now closed, and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Mr. Mark Materna, Director, Pipeline Integrity, Mark.Materna@oneok.com\nDanny Scroggins, Esq., Senior Attorney, ONEOK, Danny.Scroggins@oneok.com\n\n32023022NOPV_PHC Hearing Scheduled_10162023_(22-234357)_text.pdf\n\nOctober 16, 2023\nVIA ELECTRONIC MAIL TO: mark.materna@magellanlp.com and gregory.ochs@dot.gov\nMr. Mark Materna\nDirector, Pipeline Integrity\nMagellan Midstream Partners, LP\nOne Williams Center, MD: OTC-9\nTulsa, OK 74172\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, MO 64106\nRe: Notice of Hearing, Magellan Midstream Partners, LP\nCPF No. 3-2023-022-NOPV\nDear Mr. Materna and Mr. Ochs:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation and Proposed Civil Penalty issued by the Pipeline and Hazardous Materials\nSafety Administration in the above-referenced case. The hearing will take place on May 9th, 2024,\nbeginning at 8:30 a.m. Central Time.\nThe hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480, Kansas\nCity, Missouri 64106. Upon arrival at the building, attendees will be required to present photo\nidentification to security personnel. A contact phone number for the day of the hearing is (816) 329-\n3800.\nAt least 10 calendar days prior to the hearing (or by April 29th, 2024), both parties must submit and\nexchange any additional written materials they intend to present at the hearing and the name and\nemail address of each attendee. This information should be provided electronically. Materials not\nsubmitted by this date may be excluded. If you have any questions, please do not hesitate to contact\nme.\nSincerely,\nLarry White\nPresiding Official\n\n\n\ncc: Mr. Aaron Milford, Chief Executive Officer, Magellan Midstream Partners, LP,\naaron.milford@magellanlp.com\nMr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety, PHMSA,\nryan.mcclure@dot.gov","truncated":false,"body_characters":35082}