{"operation":"document","citation":"CPF 32023028WL","title":"TC OIL PIPELINE OPERATIONS INC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-08-15","effective_on":null,"summary":"CLOSED warning letter citing 195.452(g)(1)(viii), 195.452(g)(1)(xxi).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023028wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023028wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32023028wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32023028WL","body":"Warning Letter involving TC OIL PIPELINE OPERATIONS INC. PHMSA's enforcement data identifies the cited regulations as 195.452(g)(1)(viii),  195.452(g)(1)(xxi). The case was opened on 2023-08-15 and is reported as closed as of 2023-08-15. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32023028WL_Warning Letter_08152023_(22-233966).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023028WL/32023028WL_Warning%20Letter_08152023_(22-233966).pdf\n\n32023028WL_Warning Letter_08152023_(22-233966)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023028WL/32023028WL_Warning%20Letter_08152023_(22-233966)_text.pdf\n\n32023028WL_Warning Letter_08152023_(22-233966)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: richard prior@tcenergy.com;\njessica kirstine@tcenergy.com; tommy mikalson@tcenergy.com\nAugust 15, 2023\nRichard Prior\nPresident, Liquids Pipelines\nTC Oil Pipeline Operations, Inc.\n700 Louisiana Street, Suite 800\nHouston, Texas 77002\nCPF 3-2023-028-WL\nDear Mr. Prior:\nFrom March 28, 2022 through August 16, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected TC Oil Pipeline Operations, Inc.’s (TC Oil) facilities and records in\nOklahoma and Texas.\nAs a result of the inspection, it is alleged that TC Oil has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(g) What is an information analysis? In periodically evaluating the integrity of each\npipeline segment (see paragraph (j) of this section), an operator must analyze all\navailable information about the integrity of its entire pipeline and the consequences\nof a possible failure along the pipeline. Operators must continue to comply with the\ndata integration elements specified in § 195.452(g) that were in effect on October 1,\n2018, until October 1, 2022. Operators must begin to integrate all the data elements\nspecified in this section starting October 1, 2020, with all attributes integrated by\nOctober 1, 2022. This analysis must:\n\n\n\n(1) Integrate information and attributes about the pipeline that include, but are not\nlimited to:\n(i) . . . .\n(viii) Data gathered through integrity assessments required under this section;\nTC Oil failed to analyze all available information about the integrity of its entire pipeline and the\nconsequences of a possible failure along the pipeline. Specifically, TC Oil failed to integrate\ninformation gathered through the 2021 baseline assessments for the NPS 20 USIC-4 Exxon\nDelivery and NPS 24 USIC-5 Shell Zydeco pipelines in Texas . Following the baseline integrity\nassessments the anomaly indications were not integrated into the probability for failure\nassessment.\n2. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(g) What is an information analysis? In periodically evaluating the integrity of each\npipeline segment (see paragraph (j) of this section), an operator must analyze all\navailable information about the integrity of its entire pipeline and the consequences\nof a possible failure along the pipeline. Operators must continue to comply with the\ndata integration elements specified in § 195.452(g) that were in effect on October 1,\n2018, until October 1, 2022. Operators must begin to integrate all the data elements\nspecified in this section starting October 1, 2020, with all attributes integrated by\nOctober 1, 2022. This analysis must:\n(1) Integrate information and attributes about the pipeline that include, but are not\nlimited to:\n(i.) . . . .\n(xxi) Other pertinent information derived from operations and maintenance\nactivities and any additional tests, inspections, surveys, patrols, or monitoring\nrequired under this part.\nTC Oil failed to analyze all available information about the integrity of its entire pipeline and the\nconsequences of a possible failure along the pipeline. Specifically, TC Oil failed to integrate\ninformation derived from operation and maintenance activities required under this part.\nFollowing the incident investigation report findings of an April 14, 2019 maximum operating\npressure (MOP) exceedance event during start-up in Cushing, Oklahoma. Subsequent to their\ninvestigation, TC Oil failed to take into account any increased likelihood of failure from the\nthreat of overpressure in its risk analysis. By failing to integrate the incident investigation report\nfindings into its risk analysis, TC Oil is in violation of 195.452(g)(1)(xxi). TC Oil has committed\nto a new algorithm in 2023 that will account for historical overpressure and equipment failure\nincidents to provide a more dynamic risk analysis of these threats.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a\nrelated series of violations. For violation occurring on or after March 21, 2022 and before\n\n\n\nJanuary 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the\nviolation persists, up to a maximum of $2,391,142 for a related series of violations. For violation\noccurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not\nexceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for\na related series of violations. For violation occurring on or after January 11, 2021 and before\nMay 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nTC Oil Pipeline Operations Inc. being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2023-028-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Jessica Kirstine, DOT Compliance Primary, TC Oil Pipeline Operations, Inc.,\njessica_kirstine@tcenergy.com\nTommy Mikalson, DOT Compliance Asst. , TC Oil Pipeline Operations, Inc.,\ntommy_mikalson@tcenergy.com","truncated":false,"body_characters":7816}