{"operation":"document","citation":"CPF 32024009WL","title":"NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-01-24","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024009wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024009wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024009wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32024009WL","body":"Warning Letter involving NUSTAR PIPELINE OPERATING PARTNERSHIP L.P.. PHMSA's enforcement data identifies the cited regulation as 195.402(a). The case was opened on 2024-01-24 and is reported as closed as of 2024-01-24. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32024009WL_Warning Letter_01242024_(23-270251).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024009WL/32024009WL_Warning%20Letter_01242024_(23-270251).pdf\n\n32024009WL_Warning Letter_01242024_(23-270251)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024009WL/32024009WL_Warning%20Letter_01242024_(23-270251)_text.pdf\n\n32024009WL_Warning Letter_01242024_(23-270251)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Brad.Barron@nustarenergy.com;\ngary.koegeboehn@nustarenergy.com\nJanuary 24, 2024\nMr. Brad Barron\nPresident and Chief Executive Officer\nNuStar Pipeline Operating Partnership, L.P.\n19003 IH-10 West\nSan Antonio, Texas 78257\nCPF 3-2024-009-WL\nDear Mr. Barron:\nFrom February 28, 2022, through June 15, 2023, representatives 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.), investigated an accident involving NuStar Pipeline\nOperating Partnership, L.P.’s (NuStar) 10-inch nominal diameter hazardous liquid pipeline\nsystem in Union County, Arkansas, southeast of El Dorado, Arkansas. The rupture of the\npipeline on February 27, 2022, resulted in the release of a reported 2,278 barrels (bbls) of\nanhydrous ammonia in a high consequence area (HCA).\nThe affected 10-inch pipeline segment traverses from NuStar’s Chatham pump station\n(Chatham) near Chatham, Louisiana, to Hampton pump station (Hampton), north of Hampton,\nArkansas. On February 27, 2022, the pipeline was moving anhydrous ammonia northbound\nwhen the pipe ruptured at 3:45 a.m. Central Standard Time (CST) at Milepost (MP) 52.3 within\nBear Creek. Bear Creek flows southward from the release point and flows into a swampy area,\ncrossing under the Hibanks Road bridge approximately two miles from the release point. The\npipeline was controlled and monitored remotely by NuStar personnel using a Supervisory\nControl and Data Acquisition (SCADA) system.\nUpon occurrence of the pipeline rupture, the SCADA system detected pressure and flow\ndeviations in the NuStar control center, triggering a leak alarm at the control center at 3:50 a.m\nCST. The alarm alerted SCADA controllers to a potential leak between Spearsville Station and\nMotor-Operated Valve (MOV) 3-3. In addition, pressure logs from SCADA indicated that the\n\n\n\ndischarge pressure at Spearsville Station decreased from 1197 pounds per square inch (psi) at\n3:30 a.m. CST to 836 psi at 4:30 a.m. CST. At 4:49 a.m. CST, the controllers closed the\nSpearsville Station suction MOV at MP 45.3, south of the leak location. At 4:53 a.m. CST,\ncontrollers closed MOV 3-3 at MP 62.2, north of the leak location, thereby isolating the pipeline\nsegment 63 minutes after the initial leak alarm. Field technicians further isolated the pipeline\nsegment by closing manual isolation valves 3-1 and 3-2, located at MP 49.2 and MP 56.2\nrespectively by 8:24 a.m. CST.\nAt 4:59 p.m. CST, following unsuccessful ground and aerial patrols to identify the release\nlocation, the Spearsville Station valve was opened to test the pipeline between the Spearsville\nStation and the downstream Valve 3-1. At 5:20 p.m. CST, with no leak indications between the\nSpearsville Station and Valve 3-1, field technicians opened Valve 3-1 to test the pipeline\nbetween the Spearsville Station and the subsequent downstream Valve 3-2. The pressure\nimmediately dropped, confirming the leak's location between Valve 3-1 and Valve 3-2. Valve 3-\n1 was closed at 5:23 p.m. CST, and at 5:25 p.m. CST, the aerial patrol pilot identified the leak at\nBear Creek, with the size of the anhydrous ammonia plume increasing due to the opening of\nValve 3-1.\nNuStar notified the National Response Center (NRC) of the accident at 6:30 p.m. CST (Report\nNo. 1329850). At 6:40 p.m. CST, notification was made to local emergency responders.\nThe failed pipe was removed and sent for metallurgical analysis that determined that the release\noriginated from circumferential stress corrosion cracking (SCC) located four to six inches from\nthe nearest girth weld, spanning an area between approximately 8:30 and 11:00 positions. The\napparent cause of the cracks was determined to be the result of bending stress on the pipeline,\nand the cracks did not involve the long seam weld.\nAs a result of the investigation, it is alleged that NuStar has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item investigated\nand the probable violation is:\n1. § 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 maintenance\nactivities and handling abnormal operations and emergencies…\nNuStar did not follow its established procedures for reporting the initial release to the National\nResponse Center (NRC). In its initial report to the NRC (Report No. 1329850), NuStar estimated\nthe initial release volume to be 100 pounds, which is less than half a bbl. However, the final\nreported release volume was determined to be 2,278 bbls. NuStar's Operations and Maintenance\n(O&M) Procedure 209 prescribed two methods for estimating the initial product release from a\npipeline facility. Specifically, Sections 3 and 3.5 of Procedure 209 provided for the estimation of\nan initial anhydrous ammonia spill over time in the form of either a drip leak or a stream leak.\nPHMSA reviewed this procedure and found that for this accident the drip leak method yielded\nrelease estimates less than a bbl, and the stream leak method yielded significantly larger\nvolumes. From the indications of a rapid loss of pressure continuing for more than 12 hours after\n\n\n\nthe leak alarm, it was evident that at the time of the rupture the anhydrous ammonia spill was not\nin the form of a drip leak and NuStar failed to use the appropriate method of the stream leak\nrelease. Therefore, it significantly underestimated the initial volume of the release in the NRC\nreport. By failing to follow the appropriate procedures for estimating the volume of the release as\nthe result of a pressurized stream, NuStar is therefore in violation of the regulation.\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\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\nNuStar Pipeline Operating Partnership, L.P. being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\n3-2024-009-WL. Be advised that all material you submit in response to this enforcement action\nis subject to being made publicly available. If you believe that any portion of your responsive\nmaterial qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the complete\noriginal document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe the\nredacted 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: Gary Koegeboehn, Vice President of Pipeline Operations,\ngary.koegeboehn@nustarenergy.com","truncated":false,"body_characters":9365}