{"operation":"document","citation":"CPF 32024019NOPV","title":"GRAYSON MILL OPERATING, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-03-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.563(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024019nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024019nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024019nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32024019NOPV","body":"Notice of Probable Violation involving GRAYSON MILL OPERATING, LLC. PHMSA's enforcement data identifies the cited regulation as 195.563(a). The case was opened on 2024-03-04 and is reported as closed as of 2025-11-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32024019NOPV_Closure Letter_11212025_(22-233359).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_Closure%20Letter_11212025_(22-233359).pdf\n\n32024019NOPV_Closure Letter_11212025_(22-233359)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_Closure%20Letter_11212025_(22-233359)_text.pdf\n\n32024019NOPV_Final Order_09052024_(22-233359).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_Final%20Order_09052024_(22-233359).pdf\n\n32024019NOPV_Final Order_09052024_(22-233359)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_Final%20Order_09052024_(22-233359)_text.pdf\n\n32024019NOPV_Operator Response to Notice and Request for Time Extension_04242024_(22-233359).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_Operator%20Response%20to%20Notice%20and%20Request%20for%20Time%20Extension_04242024_(22-233359).pdf\n\n32024019NOPV_PCO_03042024_(22-233359).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_PCO_03042024_(22-233359).pdf\n\n32024019NOPV_PCO_03042024_(22-233359)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024019NOPV/32024019NOPV_PCO_03042024_(22-233359)_text.pdf\n\n32024019NOPV_Final Order_09052024_(22-233359)_text.pdf\n\nSeptember 5, 2024\nVIA ELECTRONIC MAIL TO: bsullens@gmellc.com\nBlake Sullens\nChief Operating Officer\nGrayson Mill Operating, LLC\n840 W. Sam Houston Parkway, Suite 300\nHouston, Texas 77024\nRe: CPF No. 3-2024-019-NOPV\nDear Mr. Sullens:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and specifies actions that need to be taken by Grayson Mill Operating, LLC, to comply\nwith the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Central Region, this enforcement action will be\nclosed. Service of the Final Order by e-mail is effective upon the date of transmission and\nacknowledgement of receipt as 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\nEnclosure\ncc: Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nKerry Morgan, DOT/PHMSA Specialist, Grayson Mill Operating, kmorgan@gmellc.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 )\nGrayson Mill Operating, LLC, ) CPF No. 3-2024-019-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom April 25, 2022, through May 27, 2022, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), conducted an on-site and virtual pipeline safety inspection of the facilities and records of\nGrayson Mill Operating, LLC, (Grayson or Respondent) in North Dakota. Grayson’s Missouri\nTrunkline is approximately 46.7 miles of intrastate crude oil pipelines and 16 breakout tanks.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated March 4, 2024, a Notice of Probable Violation and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Grayson had\nviolated 49 C.F.R. Part 195 and proposed ordering Respondent to take certain measures to\ncorrect the alleged violation.\nAfter requesting and receiving an extension of time to respond, Grayson responded to the Notice\nby letter dated April 24, 2024 (Response). Respondent did not contest the allegation of violation,\nagreed to complete the proposed compliance action, but requested additional time to complete\nthe proposed compliance action, which is recommended by the Director, Central Region.\nRespondent did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Respondent did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.563(a), which states:\n§ 195.563 Which pipelines must have cathodic protection?\n(a) Each buried or submerged pipeline that is constructed, relocated,\n\n\n\nreplaced, or otherwise changed after the applicable date in § 195.401(c)\nmust have cathodic protection. The cathodic protection must be in operation\nnot later than 1 year after the pipeline is constructed, relocated, replaced, or\notherwise changed, as applicable.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.563(a) by failing to provide\ncathodic protection on its breakout tanks. Specifically, the Notice alleged that Grayson did not\nhave cathodic protection installed on any of its 10 1000-barrel capacity breakout tanks that were\ninstalled in 2017 and located at the Williams Booster Station.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.563(a) by failing to provide\ncathodic protection on its breakout tanks.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49\nC.F.R. § 195.563(a). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Respondent\nrequested an extension to complete the corrective measure. Finding good cause, the extension is\napproved. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.563(a) (Item 1), Respondent must install\ncathodic protection on the tanks at the William Booster Station by June 30, 2025.\nThe Director may grant an additional extension of time to comply with the required item upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nPHMSA requests that Respondent maintain documentation of the safety improvement costs\nassociated with fulfilling this Compliance Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: (1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and (2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000, as adjusted for inflation (see 49 C.F.R. § 190.223 for adjusted amounts),\nfor each violation for each day the violation continues or in referral to the Attorney General for\nappropriate relief in a district court of the United States.\n\n\n\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nSeptember 5, 2024\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n32024019NOPV_Closure Letter_11212025_(22-233359)_text.pdf\n\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety\n901 Locust Street, Suite 480\nKansas City, MO 64106\nVIA ELECTRONIC MAIL TO: garrett.jackson@dvn.com; kerry.morgan@dvn.com;\ndusty.grosulak@dvn.com\nNovember 21, 2025\nGarrett Jackson\nVice President\nDevon Energy Williston, LLC\nf/k/a Grayson Mill Operating, LLC\n333 West Sheridan Avenue\nOklahoma City, Oklahoma 73102\nRE: CPF 3-2024-019-NOPV\nDear Mr. Jackson:\nOn September 5, 2024, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Grayson Mill Operating, LLC (Grayson) a Final Order, pursuant to 49 CFR § 190.213,\nin the above-referenced case. This Order included a Compliance Order. Based on our review of\nthe documentation provided, it has been determined that Grayson has complied with the terms of\nthe 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,\nDavid Barrett\nActing Director, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Kerry Morgan, Devon Energy Williston LLC, kerry.morgan@dvn.com\nDusty Grosulak, Devon Energy Williston LLC, dusty.grosulak@dvn.com","truncated":false,"body_characters":9160}