# TC OIL PIPELINE OPERATIONS INC — Warning Letter

- **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:** Not available
- **summary:** CLOSED warning letter citing 195.452(g)(1)(viii), 195.452(g)(1)(xxi).
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- **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.

Official case documents:

32023028WL_Warning Letter_08152023_(22-233966).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023028WL/32023028WL_Warning%20Letter_08152023_(22-233966).pdf

32023028WL_Warning Letter_08152023_(22-233966)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32023028WL/32023028WL_Warning%20Letter_08152023_(22-233966)_text.pdf

32023028WL_Warning Letter_08152023_(22-233966)_text.pdf

WARNING LETTER
VIA ELECTRONIC MAIL TO: richard prior@tcenergy.com;
jessica kirstine@tcenergy.com; tommy mikalson@tcenergy.com
August 15, 2023
Richard Prior
President, Liquids Pipelines
TC Oil Pipeline Operations, Inc.
700 Louisiana Street, Suite 800
Houston, Texas 77002
CPF 3-2023-028-WL
Dear Mr. Prior:
From March 28, 2022 through August 16, 2022, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code
(U.S.C.), inspected TC Oil Pipeline Operations, Inc.’s (TC Oil) facilities and records in
Oklahoma and Texas.
As a result of the inspection, it is alleged that TC Oil has committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 195.452 Pipeline integrity management in high consequence areas.
(a) . . . .
(g) What is an information analysis? In periodically evaluating the integrity of each
pipeline segment (see paragraph (j) of this section), an operator must analyze all
available information about the integrity of its entire pipeline and the consequences
of a possible failure along the pipeline. Operators must continue to comply with the
data integration elements specified in § 195.452(g) that were in effect on October 1,
2018, until October 1, 2022. Operators must begin to integrate all the data elements
specified in this section starting October 1, 2020, with all attributes integrated by
October 1, 2022. This analysis must:



(1) Integrate information and attributes about the pipeline that include, but are not
limited to:
(i) . . . .
(viii) Data gathered through integrity assessments required under this section;
TC Oil failed to analyze all available information about the integrity of its entire pipeline and the
consequences of a possible failure along the pipeline. Specifically, TC Oil failed to integrate
information gathered through the 2021 baseline assessments for the NPS 20 USIC-4 Exxon
Delivery and NPS 24 USIC-5 Shell Zydeco pipelines in Texas . Following the baseline integrity
assessments the anomaly indications were not integrated into the probability for failure
assessment.
2. § 195.452 Pipeline integrity management in high consequence areas.
(a) . . . .
(g) What is an information analysis? In periodically evaluating the integrity of each
pipeline segment (see paragraph (j) of this section), an operator must analyze all
available information about the integrity of its entire pipeline and the consequences
of a possible failure along the pipeline. Operators must continue to comply with the
data integration elements specified in § 195.452(g) that were in effect on October 1,
2018, until October 1, 2022. Operators must begin to integrate all the data elements
specified in this section starting October 1, 2020, with all attributes integrated by
October 1, 2022. This analysis must:
(1) Integrate information and attributes about the pipeline that include, but are not
limited to:
(i.) . . . .
(xxi) Other pertinent information derived from operations and maintenance
activities and any additional tests, inspections, surveys, patrols, or monitoring
required under this part.
TC Oil failed to analyze all available information about the integrity of its entire pipeline and the
consequences of a possible failure along the pipeline. Specifically, TC Oil failed to integrate
information derived from operation and maintenance activities required under this part.
Following the incident investigation report findings of an April 14, 2019 maximum operating
pressure (MOP) exceedance event during start-up in Cushing, Oklahoma. Subsequent to their
investigation, TC Oil failed to take into account any increased likelihood of failure from the
threat of overpressure in its risk analysis. By failing to integrate the incident investigation report
findings into its risk analysis, TC Oil is in violation of 195.452(g)(1)(xxi). TC Oil has committed
to a new algorithm in 2023 that will account for historical overpressure and equipment failure
incidents to provide a more dynamic risk analysis of these threats.
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a
related series of violations. For violation occurring on or after March 21, 2022 and before



January 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the
violation persists, up to a maximum of $2,391,142 for a related series of violations. For violation
occurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not
exceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for
a related series of violations. For violation occurring on or after January 11, 2021 and before
May 3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation
persists, up to a maximum of $2,225,034 for a related series of violations. For violation
occurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not
exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for
a related series of violations. For violation occurring on or after November 27, 2018 and before
July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a
maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,
2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per
violation per day, with a maximum penalty not to exceed $2,090,022.
We have reviewed the circumstances and supporting documents involved in this case, and have
decided not to conduct additional enforcement action or penalty assessment proceedings at this
time. We advise you to correct the item(s) identified in this letter. Failure to do so will result in
TC Oil Pipeline Operations Inc. being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 3-2023-028-WL. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe
the redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).
Sincerely,
Gregory A. Ochs
Director, Central Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Jessica Kirstine, DOT Compliance Primary, TC Oil Pipeline Operations, Inc.,
jessica_kirstine@tcenergy.com
Tommy Mikalson, DOT Compliance Asst. , TC Oil Pipeline Operations, Inc.,
tommy_mikalson@tcenergy.com
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