{"operation":"document","citation":"CPF 32024051WL","title":"MAGELLAN PIPELINE COMPANY, LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-06-14","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.404(c)(3), 195.563(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024051wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024051wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024051wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32024051WL","body":"Warning Letter involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.404(c)(3),  195.563(c). The case was opened on 2024-06-14 and is reported as closed as of 2024-06-14. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32024051WL_Warning Letter_06142024_(23-264059).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024051WL/32024051WL_Warning%20Letter_06142024_(23-264059).pdf\n\n32024051WL_Warning Letter_06142024_(23-264059)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024051WL/32024051WL_Warning%20Letter_06142024_(23-264059)_text.pdf\n\n32024051WL_Warning Letter_06142024_(23-264059)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Pierce.norton@oneok.com; Jamie.Hoskin@oneok.com;\nJason.A.Smith@oneok.com\nJune 14, 2024\nPierce H. Norton II\nPresident and Chief Executive Officer\nONEOK, Inc.\n100 West Fifth Street\nTulsa, OK 74103\nCPF 3-2024-051-WL\nDear Mr. Norton:\nFrom April 3 through November 8, 2023, 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 ONEOK, Inc.’s (ONEOK) Magellan pipelines and facilities in Texas, New\nMexico, and Oklahoma. Magellan Midstream Partners, LP. (Magellan) was acquired by ONEOK\nas of September 25, 2023.\nAs a result of the inspection, it is alleged that ONEOK 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. § 195.402 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. . . .\nMagellan failed to follow its procedures for returning scraper traps to normal operation after\npigging operations for the scraper trap at Aledo Terminal, MP 88 of the Orion North system\n\n\n\nWest Ft. Worth-Henrietta. Specifically, sections 8.9.11 through 8.9.26 of Magellan’s Procedure\n“9.01-ADM-110 (Rev. 13), Performing Pigging Operations,” were not followed for relieving\npressure on the trap, draining, pig retrieval, and returning the trap to normal operation. During\nthe field inspection, the trap was found to be pressurized to approximately 510 psi (mainline\npressure). Control room and Operations personnel confirmed that no pigging operations were\noccurring at the time of the inspection and no product was flowing through the trap, so it was in\nnormal operation status. Under normal operation the trap should have been drained and\ndepressurized. Therefore, Magellan failed to follow its procedures for returning scraper traps to\nnormal operation after pigging operations, contrary to § 195.402(a).\n2. § 195.404 Maps and records.\n(a) . . . .\n(c) Each operator shall maintain the following records for the periods specified:\n(1) . . . .\n(3) A record of each inspection and test required by this subpart shall be maintained\nfor at least 2 years or until the next inspection or test is performed, whichever is\nlonger.\nMagellan failed to record annual fire extinguisher inspection results on its official record form\nfor Cresson and Underwood stations on the Orion North pipeline system for years 2020 through\n2022. Firefighting equipment must be tested to ensure it is in proper operating condition at all\ntimes, as required by § 195.430(a). First, Magellan failed to record annual inspection results on\nMagellan Form No. 05-FORM-0084, “Portable Fire Extinguisher Checklist, Monthly/Annual,”\nfor inspection calendar years 2020 through 2022. Second, Magellan failed to maintain records\nfor fire extinguisher inspections on the Bridgetex North Crude system for 2021. Thus, Magellan\nfailed to meet the requirements of § 195.404(c)(3).\n3. § 195.563 Which pipelines must have cathodic protection?\n(a) . . . .\n(c) All other buried or submerged pipelines that have an effective external coating\nmust have cathodic protection. Except as provided by paragraph (d) of this section, this\nrequirement does not apply to breakout tanks and does not apply to buried piping in\nbreakout tank areas and pumping stations until December 29, 2003.\nMagellan failed to provide cathodic protection (CP) per § 195.563(c) in two instances. First,\nMagellan failed to cathodically protect the station piping at Stigler Pump Station located at MP\n173 on the Duncan-Ft. Smith pipeline segment. The station pumps were removed from service in\nMarch 2023, and the station piping was physically disconnected from the mainline, which\nrendered the underground station piping electrically isolated from the CP system. The station\npipe is currently classified as inactive and purged. PHMSA does not recognize “inactive,”\n“decommissioned,” or “idled” pipelines. Unless they are abandoned in accordance §\n195.402(c)(10) and § 195.59, pipelines that are not currently in use must comply with the\n\n\n\npipeline safety regulations. CP potential readings taken around the station during the field\ninspection on June 15, 2023, confirmed that the station piping was electrically disconnected from\nthe CP system and did not meet NACE criteria for cathodic protection. Per § 195.571, CP\nrequired by subpart H must comply with one or more of the applicable criteria and other\nconsiderations for cathodic protection contained in paragraphs 6.2.2, 6.2.3, 6.2.4, 6.2.5 and 6.3 in\nNACE SP 0169-2007. On July 3, 2023, the Operator restored CP to the station piping via an\nelectrical bond to the CP system. Station pipe potential readings were re-measured and\nconfirmed to meet NACE criteria.\nSecond, Magellan failed to cathodically protect the piping associated with Bernardo and San\nAntonio stations on the El Paso-Albuquerque pipeline system. The pump units were upgraded in\nMarch of 2022 and the old station piping was disconnected from the mainline, which rendered\nthe station piping electrically isolated from the cathodic protection system. The station pipe is\ncurrently classified as inactive and purged. CP potential readings, taken at both stations on July\n13, 2023, confirmed that the station piping did not meet NACE criteria for cathodic protection.\nOn September 14, 2023, Magellan restored CP to the old station piping via electrical bonding to\nthe CP system at each station. Station pipe potential readings were re-measured and confirmed to\nmeet NACE criteria. Thus, in these two instances, Magellan failed to meet the requirements of\n§ 195.563(c).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a\nrelated series of violations. For violation occurring on or after January 6, 2023 and before\nDecember 28, 2023, the maximum penalty may not exceed $257,664 per violation per day the\nviolation persists, up to a maximum of $2,576,627 for a related series of violations. For violation\noccurring on or after March 21, 2022 and before January 6, 2023, the maximum penalty may not\nexceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for\na related series of violations. For violation occurring on or after May 3, 2021 and before March\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\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 items identified in this letter. Failure to do so will result in\nONEOK being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2024-051-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: Jamie Hoskin, Sr. Vice President, Refined Products & Crude Operations, ONEOK, Inc.\nJamie.Hoskin@oneok.com\nJason A. Smith, Vice President, Asset Integrity, ONEOK, Inc., Jason.A.Smith@oneok.com","truncated":false,"body_characters":9546}