{"operation":"document","citation":"CPF 32025026WL","title":"MAGELLAN PIPELINES HOLDINGS, LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-08","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32025026wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32025026wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32025026wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32025026WL","body":"Warning Letter involving MAGELLAN PIPELINES HOLDINGS, LP. PHMSA's enforcement data identifies the cited regulation as 195.402(a). The case was opened on 2025-05-08 and is reported as closed as of 2025-05-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32025026WL_Warning Letter_05082025_(24-297309).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025026WL/32025026WL_Warning%20Letter_05082025_(24-297309).pdf\n\n32025026WL_Warning Letter_05082025_(24-297309)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025026WL/32025026WL_Warning%20Letter_05082025_(24-297309)_text.pdf\n\n32025026WL_Warning Letter_05082025_(24-297309)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: randy.lentz@oneok.com; jamie.hoskin@oneok.com;\nteri.anderson@oneok.com; charles.misak@oneok.com; laurie.england@oneok.com\nMay 8, 2025\nRandy Lentz\nEVP, Chief Operating Officer\nONEOK, Inc.\n100 West Fifth Street\nTulsa, Oklahoma 74103\nCPF 3-2025-026-WL\nDear Mr. Lentz:\nFrom February 27 to November 22, 2024, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), conducted an onsite inspection of the pipelines and facilities of ONEOK, Inc.\n(“ONEOK”) in Drumright, Oklahoma.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected\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. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\n\n\n\nONEOK failed to follow its written procedures for conducting operations and maintenance\nactivities, per the requirements of § 195.402(a). Specifically, ONEOK failed to follow its\nOperations and Maintenance (O&M) Procedure 7.13-ADM-013, entitled “Risk Based Inspection\nProgram,” section 8.1, “Dead Legs,” where the procedure mandated utilizing ultrasonic testing\nequipment to evaluate pipeline dead leg integrity.\nDuring the inspection of the Drumright facility, PHMSA discovered a 16-inch diameter crude oil\ndead leg above ground, approximately 24 feet in length, that had been in operation since 2010.\nONEOK confirmed that it had never incorporated the newly discovered dead leg into the facility\nrisk analysis, and ONEOK had not used ultrasonic testing equipment to evaluate its wall\nthickness for internal corrosion. Thus, ONEOK failed to follow O&M Procedure 7.13-ADM-\n013 to evaluate the integrity of the pipe, as required per § 195.402(a).\nONEOK personnel, upon confirmation of the newly discovered dead leg, immediately responded\nby confirming the dead leg will be analyzed and added to the company database supporting\nprocedure 7.13-ADM-013 Risk Based Inspection Program 8.1 Dead Legs for the 2025 facility\nrisk analysis.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a\nrelated series of violations. For violation occurring on or after December 28, 2023 and before\nDecember 30, 2024 the maximum penalty may not exceed $266,015 per violation per day the\nviolation persists, up to a maximum of $2,660,135 for a related series of violations. For violation\noccurring on or after January 6, 2023 and before December 28, 2023 the maximum penalty may\nnot exceed $257,664 per violation per day the violation persists, up to a maximum of $2,576,627\nfor a related 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.\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 identified in this letter. Failure to do so will result in\nONEOK, 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 3-2025-026-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\n\n\n\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 Hoskins, SVP, Engineering & Operations, ONEOK, Inc., jamie.hoskin@oneok.com\nTeri Anderson, Sr. Manager, DOT Compliance, ONEOK, Inc., teri.anderson@oneok.com\nLaurie England, Regulatory Compliance Coordinator – PHMSA Central, ONEOK, Inc.,\nlaurie.england@oneok.com","truncated":false,"body_characters":6485}