# MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation

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

Official case documents:

32023022NOPV_Closure Letter_10082024_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Closure%20Letter_10082024_(22-234357).pdf

32023022NOPV_Closure Letter_10082024_(22-234357)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_Closure%20Letter_10082024_(22-234357)_text.pdf

32023022NOPV_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

32023022NOPV_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

32023022NOPV_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

32023022NOPV_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

32023022NOPV_PCP PCO_08242023_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PCP%20PCO_08242023_(22-234357).pdf

32023022NOPV_PCP PCO_08242023_(22-234357)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PCP%20PCO_08242023_(22-234357)_text.pdf

32023022NOPV_PHC Hearing Scheduled_10162023_(22-234357).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023022NOPV/32023022NOPV_PHC%20Hearing%20Scheduled_10162023_(22-234357).pdf

32023022NOPV_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

32023022NOPV_Consent Agreement and Order_01222024_(22-234357)_text.pdf

January 22, 2024
VIA ELECTRONIC MAIL TO: Pierce.Norton@oneok.com
Pierce H. Norton II
President and Chief Executive Officer
ONEOK, Inc.
100 West Fifth Street
Tulsa, Oklahoma 74103
CPF No. 3-2023-022-NOPV
Dear Mr. Norton:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Magellan Midstream
Partners, LP which was executed on January 16, 2024. Service of the Consent Order and Consent
Agreement by electronic mail is deemed effective upon the date of transmission and
acknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosures: Consent Order and Consent Agreement
cc: Mr. Gregory A. Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA
Mr. Danny Scroggins, Senior Attorney, ONEOK, Danny.Scroggins@oneok.com
Mr. Mark Materna, Director, Pipeline Integrity, ONEOK, Mark.Materna@oneok.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
MAGELLAN MIDSTREAM )
PARTNERS, LP, ) CPF No. 3-2023-022-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated August 24, 2023, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Probable Violation, Proposed Civil
Penalty, and Proposed Compliance Order (Notice) to Magellan Midstream Partners, LP (Magellan
or Respondent). On September 25, 2023, Magellan was acquired by ONEOK, Inc.
In response to the Notice, Respondent contested the allegation of violation, proposed civil penalty,
and proposed compliance order term for Item 5, and the proposed civil penalty for Item 6. Magellan
requested a hearing and the opportunity to meet informally with PHMSA to discuss Items 5 and 6
in the Notice. Respondent and PHMSA (the Parties) subsequently met to discuss the issues raised
in the Response. As a result of those discussions, as explained in more detail below, the Parties
have agreed to a Consent Agreement by which PHMSA makes findings of violation for Items 1,
2, 4, and 6, assesses a reduced civil penalty of $150,700, withdraws Item 5, and sets out certain
corrective actions that Magellan will complete.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. Magellan is hereby ordered to comply with the terms of the Consent Agreement
pursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent
Order may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49
C.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of
the United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 C.F.R. § 190.5.
January 22, 2024
______________________________ ______________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
MAGELLAN MIDSTREAM )
PARTNERS, LP, ) CPF No. 3-2023-022-NOPV
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From February 7, 2022 through October 14, 2022, a representative 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.), conducted an on-site inspection of Magellan Midstream
Partners LP’s (Magellan or Respondent) Central, North, and Razorback system records and
facilities in Arkansas, Illinois, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma,
South Dakota, and Wisconsin. As of September 25, 2023, Magellan was acquired by ONEOK,
Inc.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated August 24, 2023, a Notice of Probable Violation, Proposed Compliance Order, and
Proposed Civil Penalty (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that Magellan committed violations of six provisions of 49 C.F.R. part 195, proposed
ordering Respondent to take certain measures to correct the alleged violations, and proposed a civil
penalty of $219,500. Item 3 was brought as a warning, advising the operator to correct the probable
violation or face potential future enforcement action.
Magellan responded to the Notice by letter dated September 22, 2023 (Response). The company
contested the violation, the proposed civil penalty, and the proposed compliance order for Item 5,
and the proposed civil penalty for Item 6. Magellan requested an informal meeting with PHMSA
to discuss both Items 5 and 6 and requested a hearing on these Items.
PHMSA and Respondent (the Parties) subsequently met to discuss the issues raised in the
Response. As a result of those discussions and as explained in more detail below, the Parties have
agreed to a Consent Agreement by which PHMSA makes findings of violations for Items 1, 2, 4,
and 6, assesses a reduced civil penalty of $150,700, withdraws Item 5, and sets out certain
corrective actions that Magellan will complete.



Having agreed that settlement of this proceeding will avoid further administrative proceedings or
litigation and will serve the public interest by promoting safety and protection of the environment,
pursuant to 49 U.S.C. § 60101, et seq. and 49 C.F.R. Part 190, and upon consent and agreement,
the Parties hereby agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the
Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent
acknowledges that it received proper notice of PHMSA’s action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq., and
the regulations and orders issued thereunder.
2. After Respondent returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending that
the Associate Administrator adopt the terms of this Agreement by issuing an administrative order
(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute
an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate
Administrator will issue a Consent Order incorporating the terms of this Agreement.
3. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except for the Dispute Resolution
provisions set forth herein. Respondent agrees to withdraw its request for an administrative hearing
regarding the Notice.
4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its
officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Respondent’s officers, employees, and agents
whose duties might reasonably include compliance with this Agreement.
5. This Agreement constitutes the final, complete, and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement. The
Parties acknowledge that there are no representations, agreements or understandings relating to
settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.
6. Nothing in this Agreement affects or relieves Respondent of its responsibility to
comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et
seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's
right of access, entry, inspection, and information gathering or PHMSA's authority to bring



enforcement actions against Respondent pursuant to the Federal pipeline safety laws, the
regulations and orders issued thereunder, or any other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Respondent’s pipeline
system referenced herein, Respondent will provide a copy of this Agreement to the prospective
transferee at least 30 days prior to such transfer. Respondent will provide written notice of the
transfer to the Director no later than 60 days after the transfer occurs.
8. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,
or a modification of any permit, under any Federal, State, or local laws or regulations. Respondent
remains responsible for achieving and maintaining compliance with all applicable Federal, State,
and local laws, regulations and permits.
9. This Agreement does not create rights in, or grant any cause of action to, any third
party not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. Respondent
agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents,
and representatives from any and all causes of action arising from any acts or omissions of
Respondent or its contractors in carrying out any work required by this Agreement.
10. Except as set forth herein, this Agreement does not constitute a finding of violation
of any other federal law or regulation and may not be used in any civil proceeding of any kind as
evidence or proof of any fact, fault, or liability, or as evidence of a violation of any law, rule,
regulation, or requirement, except in a proceeding to enforce the provisions of this Agreement or
in future PHMSA enforcement actions.
II. Findings of Violation:
11. Item 1- 49 C.F.R. § 195.264(b)(1)(i): The Notice alleged that Magellan failed to
satisfy the requirements of Section 22.11.2 of NFPA-30 (2012 ed.) regarding impoundment around
breakout tanks. Specifically, the Notice alleged that PHMSA’s field inspection of Magellan tanks
1516, 1517, 1521, and 3502 at the Kansas City East Tank Farm in Kansas City, Kansas, found that
Magellan failed to subdivide the tanks, and failed to have drainage channels or intermediate dikes
installed in accordance with the referenced standard and the regulation. Respondent does not
contest the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of
49 C.F.R. § 195.264(b)(1)(i).
12. Item 2- 49 C.F.R. § 195.402(a): The Notice alleged that Magellan failed to follow
procedures for conducting normal operations and maintenance activities and handling abnormal
operations and emergencies. Specifically, the Notice alleged that Magellan failed to take corrective
action where deficiencies were found during abnormal operations. Respondent does not contest
the allegation of violation as alleged in the Notice. As such, PHMSA finds a violation of 49 C.F.R.
§ 195.402(a).



13. Item 4- 49 C.F.R. § 195.404(c)(3): The Notice alleged that Magellan failed to
maintain a record of each inspection and test required for at least two years or until the next
inspection or test is performed. Specifically, the Notice alleged that Magellan failed to maintain
eight records for Tank 408 in Nebraska City, Nebraska, from April of 2021 and January through
July of 2022. Respondent does not contest the allegation of violation as alleged in the Notice. As
such, PHMSA finds a violation of 49 C.F.R. § 195.404(c)(3).
14. Item 6- 49 C.F.R. § 195.428(a): The Notice alleged that Magellan failed to inspect
and test two devices at its Roland, Iowa facility for calendar year 2020. Specifically, the Notice
alleged that during the field inspection and records review of Roland, Iowa, facility, PHMSA found
that two devices, thermal relief MLBV 64 and thermal relief MLBV 65, were not inspected and
tested. Respondent does not contest the allegation of violation as alleged in the Notice. As such,
PHMSA finds a violation of 49 C.F.R. § 195.428(a).
15. Items 1, 2, 4 and 6, will be considered by PHMSA as prior offenses in any future
PHMSA enforcement action taken against Respondent for the five (5)-year period following the
Effective Date of this Agreement.
III. Warning Item:
16. Item 3- 49 C.F.R. § 195.402(a): The Notice alleged that Magellan failed to follow
procedures for conducting normal operations and maintenance activities and handling abnormal
operations and emergencies. Specifically, the Notice alleged that during the field inspection and
records review at Fargo, North Dakota, PHMSA found that five devices were not properly
documented as required by the procedure. This Item was brought as a Warning Item and does not
constitute a finding of violation. Respondent accepts the warning as alleged in the Notice.
17. For Warning Item 3, if OPS finds a violation of these provisions in a
subsequent inspection, Respondent may be subject to future enforcement action.
IV. Items Withdrawn:
18. Item 5- 49 C.F.R. § 195.412(a): With respect to Item 5 of the Notice, the Parties
agree that this Item should be withdrawn in its entirety following review of Magellan’s Response,
which included Magellan’s 7.05-ADM-006 Inspection of Right-of-Way Procedure and 2022
seasonal Ground Patrol records. These documents show that Respondent was not out of
compliance with the regulation. Because this Item will be withdrawn, it will not constitute a finding
of violation for any purpose, and no further action by Respondent is necessary to achieve
compliance. As such, the allegation of violation for Item 5, the proposed civil penalty associated
with this Item, and the proposed compliance order associated with this Item are withdrawn.
V. Civil Penalty:
19. Item 4: The Notice proposed assessing a civil penalty in the amount of $65,100.
Respondent did not contest the proposed civil penalty for this Item. As such, Respondent shall pay
a civil penalty in the amount of $65,100 for Item 4.



20. Item 5: The Notice proposed assessing a civil penalty in the amount of $68,800 for
Item 5. Respondent contested the proposed civil penalty for this Item. Following discussions with
Respondent, PHMSA determined that Magellan was not out of compliance with the regulation and
this proposed civil penalty was withdrawn.
21. Item 6: The Notice proposed assessing a civil penalty in the amount of $85,600 for
Item 6. Following discussion with PHMSA, Respondent agrees to pay a civil penalty in the amount
of $85,600 for the violation in Item 6.
22. In total, based on Paragraphs 19-21, Respondent shall pay an adjusted civil penalty
in the amount of $150,700, pursuant to the payment instructions at 49 C.F.R. § 190.227(a), to be
paid in full no later than 20 days from the Effective Date of this Agreement.
VI. Compliance Order:
23. Item 1: The Notice proposed certain compliance order actions to address the non-
compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. As
such, Respondent agrees to perform the following corrective measures:
A. In regard to Item 1 of the Notice pertaining to Magellan’s failure to satisfy the
requirements of Section 22.11.2 of NFPA-30 (2012 edition) regarding the
impoundment around breakout tanks, Magellan must:
(i) Subdivide the tanks preferably by drainage channels or at least by intermediate
dikes, in accordance with NFPA 30 at the Kansas City East Terminal within twelve
(12) months of receipt of the Consent Order.
(ii) Submit to the Director, Central Region, evidence of remediated locations to
demonstrate compliance with NFPA 30.
24. Item 2: The Notice proposed certain compliance order actions to address the non-
compliance alleged in the Notice. Respondent did not contest the Proposed Compliance Order. As
such, Respondent agrees to perform the following corrective measures:
B. In regard to Item 2 of the Notice pertaining to Magellan’s failure to take corrective
action on two documented abnormal operations (AO), Magellan must amend its
procedures to incorporate timeframe requirements for the review, corrective action,
and documentation of AOs to ensure timely corrective action is completed where
deficiencies are found. The revised procedures shall be submitted to the Director,
PHMSA Central Region for review and approval within 60 days of receipt of the
Consent Order.
It is requested that Magellan Midstream Partners, LP maintain documentation of
the safety improvement costs associated with fulfilling this Compliance Order and
submit the total to Gregory A. Ochs, Director, Central Region, OPS, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: (1) total cost associated with preparation/revision of
C.



plans, procedures, studies and analyses, and (2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.1
VII. Enforcement:
25. This Agreement is subject to all enforcement authorities available to PHMSA
under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties
under 49 U.S.C. § 60122, of up to $257,664 per violation for each day the violation continues and
referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that
Respondent is not complying with the terms of this Agreement in accordance with the
determinations made by the Director, or in accordance with decisions of the Associate
Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil
penalty amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223. All work plans and
associated schedules set forth or referenced in Section VI are automatically incorporated into this
Agreement and are enforceable in the same manner.
VIII. Review and Approval Process:
26. With respect to any submission under Section VI (Compliance Order) of this
Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or
in part, the submission; (b) approve the submission on specified, reasonable conditions; (c)
disapprove, in whole or in part, the submission; or (d) any combination of the foregoing. If the
Director approves, approves in part, or approves with conditions, Respondent will take all actions
as approved by the Director, subject to Respondent’s right to invoke the dispute resolution
procedures with respect to any conditions the Director identifies. If the Director disapproves all or
any portion of the submission, the Director will provide Respondent a written notice of the
deficiencies. Respondent will correct all deficiencies within the time specified by the Director and
resubmit it for approval.
IX. Dispute Resolution:
27. The Director and Respondent will informally attempt to resolve any disputes arising
under this Agreement, including any decision of the Director under the terms of Section VI,
Compliance Order. If Respondent and the Director are unable to informally resolve the dispute
within 15 calendar days after the dispute is first raised, in writing, to the Director, Respondent may
submit a written request for a determination resolving the dispute from the Associate Administrator
for Pipeline Safety, PHMSA. Such request must be made in writing and provided to the Director,
counsel for the Central Region, and to the Associate Administrator for Pipeline Safety, no later
than 10 calendar days from the 15-day deadline for informal resolution referenced in this
paragraph. Along with its request, Respondent must provide the Associate Administrator with all
information Respondent believes is relevant to the dispute. Decisions of the Associate
Administrator under this paragraph will constitute final agency action. The existence of a dispute
and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term
or timeframe for completion of any work to be performed under this Agreement during the
pendency of the dispute resolution process.
1 This Proposed Compliance Order term was originally term D in the Notice.



X. Effective Date:
28. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.
XI. Recordkeeping and Information Disclosure:
29. Unless otherwise required in this Agreement, Respondent agrees to maintain
records demonstrating compliance with all requirements of this Agreement for a period of at least
five (5) years following completion of all work to be performed. For any reports, plans, or other
deliverables required to be submitted to PHMSA pursuant to this Agreement, Respondent may
assert a claim of business confidentiality or other protections applicable to the release of
information by PHMSA, covering part or all of the information required to be submitted to
PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Respondent must mark
the claim of confidentiality in writing on each page and include a statement specifying the grounds
for each claim of confidentially. PHMSA determines release of any information submitted
pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act,
5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.
XII. Modification:
30. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
XIII. Termination:
31. This Agreement will remain in effect until the Compliance Order in Section VI is
satisfied, as determined by the Director, and payment of the Civil Penalty in Section V is made.
The Agreement shall not terminate until the Director confirms, in writing, that the Agreement is
terminated in accordance with this paragraph. Nothing in this Agreement prevents Respondent
from completing any of the obligations earlier than the deadlines provided for in this Agreement.
XIV. Ratification:
32. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
33. The Parties hereby agree to all findings, conditions, and terms of this Agreement.
[Signature Lines on Following Page]



For MAGELLAN MIDSTREAM PARTNERS, LP:
_________________________
Jason A. Smith, Vice President of Asset Integrity
________________________
Date
For PHMSA:
________________________________________
Director, Central Region, Office of Pipeline Safety
________________________
Date

32023022NOPV_Op Resp to Notice and Req for Hearing_09222023_(22-234357).pdf

One Williams Center
PO BOX 22186
Tulsa, OK 74172-2186
September 22, 2023
Via Electronic Mail to: Gregory.Ochs@dot.gov
Mr. Gregory A. Ochs, Director
Central Region, Pipeline and Hazardous Materials Safety Administration
901 Locust Street, Suite 480
Kansas City, MO 64106
Re: CPF 3-2023-022
Dear Mr. Ochs,
Magellan Pipeline Company, L.P. (“Magellan”) received a Notice of Probable Violation (NOPV),
Proposed Civil Penalties and Proposed Compliance Order, CPF 3-2023-022, on August 24,
2023. Pursuant to 49 CFR 190.209, Magellan requested a copy of the Case File to review the
basis for the allegations and a copy of the Proposed Civil Penalty Worksheet on August 29,
2023 which PHMSA provided on September 1, 2023. Magellan respectfully submits the
following response in accordance with the Response Options for Pipeline Operators in
Enforcement Proceedings.
Magellan contests the probable violation, proposed Civil Penalty and proposed Compliance Order
for Item #5 as explained in this response. Magellan does not contest the basis for the
remaining items, but does contest the Civil Penalty Calculation for Item #6. Magellan requests
a hearing on this matter and also requests an informal settlement conference as it believes that
this matter can be fully resolved prior to a hearing.
Item #5: § 195.412 Inspection of rights-of-way and crossings under navigable waters.
(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times each
calendar year, inspect the surface conditions on or adjacent to each pipeline right-of-way.
Methods of inspection include walking, driving, flying or other appropriate means of
traversing the right-of-way.
Magellan failed to inspect the surface conditions on or adjacent to each pipeline right-of-way
(ROW) with an acceptable method.
Specifically, Magellan did not maintain the pipeline right-of-way conditions at a level that
allowed for effective aerial inspection of the surface conditions on or adjacent to the ROW and
did not select an alternate patrol method that would allow effective inspection based on the
condition of the ROW. PHMSA’s onsite inspection discovered excessive vegetation cover over



the ROW in Grand Forks, North Dakota near 34th street and Desert Star Lane. This location
had been aerially patrolled, however, no deficiencies in the ROW condition were called out by
the patrol.
MAGELLAN RESPONSE:
Magellan contests Item #5, the associated Proposed Compliance Order and the
Proposed Civil Penalty associated with this item. Magellan had been performing
ground patrols of the area near 34th Street and Desert Star Lane prior to the 2022
inspection and has associated documentation of ground patrols of this area. Magellan
aerial patrols this line year-round in addition to performing supplemental ground
patrols seasonally due to tree foliage (typically June through October) from MP 177
to MP 179 (which includes the 34th Street and Desert Star Lane area). No deficiencies
indicative of a potential release were identified on the ROW during these patrols.
Please see Attachment #1 – Ground Patrols with the 2022 seasonal ground patrol
records.
In addition to completing seasonal ground patrols for the area noted, Magellan has a
procedure detailing the requirement for aerial patrol pilots to document vegetation
overgrowth and deficiencies in the ROW condition. Please see Attachment #2, 7.05-
ADM-006 Inspection of Right-of-Way Procedure.
Magellan requests that this Probable Violation Item #5, associated Proposed
Compliance Order and associated Proposed Civil Penalty be rescinded from CPF 3-
2023-022.
Item #6: § 195.428 Overpressure safety devices and overfill protection systems.
(a) Except as provided in paragraph (b) of this section, each operator shall, at intervals
not exceeding 15 months, but at least once each calendar year, or in the case of pipelines
used to carry highly volatile liquids, at intervals not to exceed 7½ months, but at least
twice each calendar year, inspect and test each pressure limiting device, relief valve,
pressure regulator, or other item of pressure control equipment to determine that it is
functioning properly, is in good mechanical condition, and is adequate from the
standpoint of capacity and reliability of operation for the service in which it is used.
Magellan failed to inspect and test two devices at its Roland, Iowa facility for calendar year
2020.
During the field inspection and records review of Roland, Iowa, facility, PHMSA found that
two devices, thermal relief MLBV 64 and thermal relief MLBV 65, were not inspected and
tested. This is a repeat violation found in CPF# 320195007 Item 2.
MAGELLAN RESPONSE:
Magellan requests that PHMSA remove the “repeat violation” factor from its penalty
calculation and reduce the total in the Civil Penalty Calculation for Item #6,
accordingly. The citation in CPF# 3-2019-5007, Item 2 involved CFR 195.428(c) for
2



missing overfill protection inspections on pressure vessels in Des Moines, Iowa,
whereas Item 6 is associated with CFR 195.428(a) involving thermal relief valve
inspection records on block valves in Roland, Iowa. Magellan asserts that these
devices are distinct in function and operational use, and are located at distinct and
different facilities.
Magellan appreciates the opportunity to respond and proactively work through the alleged
violations with PHMSA in an effort to make the hearing unnecessary. If you have any questions
or need additional information, please contact me by phone at (918) 574-7073 or e-mail at
mark.materna@magellanlp.com to discuss.
Sincerely,
Mark Materna
Director, Pipeline Integrity
Cc: Jason Smith, Vice President, Asset Integrity, Magellan
3

32023022NOPV_Closure Letter_10082024_(22-234357)_text.pdf

VIA ELECTRONIC MAIL TO: Pierce.Norton@oneok.com; Mark.Materna@oneok.com;
Danny.Scroggins@oneok.com
October 8, 2024
Mr. Pierce Norton
Chief Executive Officer
ONEOK, Inc.
100 West Fifth Street
Tulsa, Oklahoma 74109
RE: CPF 3-2023-022-NOPV
Dear Mr. Norton:
On January 22, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued a Consent Order incorporating the terms of the Consent Agreement entered into between
PHMSA and Magellan Midstream Partners, LP (Magellan) in the above-referenced case. This
Order included a Compliance Order and Civil Penalty assessment. Based on our review of the
documentation provided by your staff, and confirmation of payment of the civil penalty on
February 2, 2024, it has been determined that Magellan has complied with the terms of this
Consent Order.
Accordingly, this case is now closed, and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Gregory A. Ochs
Director, Central Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Mr. Mark Materna, Director, Pipeline Integrity, Mark.Materna@oneok.com
Danny Scroggins, Esq., Senior Attorney, ONEOK, Danny.Scroggins@oneok.com

32023022NOPV_PHC Hearing Scheduled_10162023_(22-234357)_text.pdf

October 16, 2023
VIA ELECTRONIC MAIL TO: mark.materna@magellanlp.com and gregory.ochs@dot.gov
Mr. Mark Materna
Director, Pipeline Integrity
Magellan Midstream Partners, LP
One Williams Center, MD: OTC-9
Tulsa, OK 74172
Mr. Gregory Ochs
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
901 Locust Street, Suite 480
Kansas City, MO 64106
Re: Notice of Hearing, Magellan Midstream Partners, LP
CPF No. 3-2023-022-NOPV
Dear Mr. Materna and Mr. Ochs:
In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of
Probable Violation and Proposed Civil Penalty issued by the Pipeline and Hazardous Materials
Safety Administration in the above-referenced case. The hearing will take place on May 9th, 2024,
beginning at 8:30 a.m. Central Time.
The hearing will be held at the PHMSA Central Region office, 901 Locust Street, Suite 480, Kansas
City, Missouri 64106. Upon arrival at the building, attendees will be required to present photo
identification to security personnel. A contact phone number for the day of the hearing is (816) 329-
3800.
At least 10 calendar days prior to the hearing (or by April 29th, 2024), both parties must submit and
exchange any additional written materials they intend to present at the hearing and the name and
email address of each attendee. This information should be provided electronically. Materials not
submitted by this date may be excluded. If you have any questions, please do not hesitate to contact
me.
Sincerely,
Larry White
Presiding Official



cc: Mr. Aaron Milford, Chief Executive Officer, Magellan Midstream Partners, LP,
aaron.milford@magellanlp.com
Mr. Ryan McClure, Counsel, Central Region, Office of Pipeline Safety, PHMSA,
ryan.mcclure@dot.gov
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