{"operation":"document","citation":"CPF 420125014","title":"MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-04-17","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.428(d), 195.432(b), 195.579(a), 195.581.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125014.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125014.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420125014","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420125014","body":"Notice of Probable Violation involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.428(d),  195.432(b),  195.579(a),  195.581. The case was opened on 2012-04-17 and is reported as closed as of 2014-03-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420125014_Closure_ 03202014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125014/420125014_Closure_%2003202014_text.pdf\n\n420125014_Closure_03202014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125014/420125014_Closure_03202014.pdf\n\n420125014_Final Order_06212013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125014/420125014_Final%20Order_06212013.pdf\n\n420125014_Final Order_06212013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125014/420125014_Final%20Order_06212013_text.pdf\n\n420125014_NOPV PCO_04172012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125014/420125014_NOPV%20PCO_04172012.pdf\n\n420125014_NOPV PCO_04172012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420125014/420125014_NOPV%20PCO_04172012_text.pdf\n\n420125014_Closure_ 03202014_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 20, 2014\nMr. Michael N. Mears\nPresident and Chief Executive Officer\nMagellan Pipeline Company, LP\n1 Williams Center\nP.O. Box 22186\nTulsa, OK 74172\nCPF 4-2012-5014\nDear Mr. Mears:\nIn May 2011, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA)\npursuant to Chapter 601 of 49 United States Code were onsite and inspected the records and facilities\nassociated with the 18 inch and 12 inch products and 24/26 inch crude oil pipeline in and between Pasadena\nand Texas City, TX. In June 2011, additional records were inspected at the Magellan office in Tulsa, OK.\nA Notice of Probable Violation and Proposed Compliance Order was issued to Magellan Pipeline\nCompany, LP on April 17, 2012. The Final Order with Compliance Order was issued on June 21, 2013.\nMagellan submitted documentation on August 26, 2013, of inspections, actions, training and amended\nprocedures. My staff reviewed the information provided, and it appears that the inadequacies outlined in\nthis Notice of Probable Violation and Proposed Compliance Order has been corrected.\nThis letter is to inform you that no further action is necessary and this case is now closed. Thank you for\nyour cooperation.\nSincerely,\nR. M. Seeley\nDirector, Southwest region\nPipeline and Hazardous Materials Safety Administration\n\n420125014_Closure_03202014.pdf\n\nU.S. Department\nof Transportation\nPipeline and\nHazardous Materials\nSafety Administration\n8701 S. Gessner, Suite 1110\nHouston, TX 77074\nCERTIFIED MAIL- RETURN RECEIPT REQUESTED\nMarch 20, 2014\nMr. Michael N. Mears\nPresident and Chief Executive Officer\nMagellan Pipeline Company, LP\n1 Williams Center\nP.O. Box 22186\nTulsa, OK 74172\nCPF 4-2012-5014\nDear Mr. Mears:\nIn May 2011, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA)\npursuant to Chapter 601 of 49 United States Code were onsite and inspected the records and facilities\nassociated with the 18 inch and 12 inch products and 24/26 inch crude oil pipeline in and between Pasadena\nand Texas City, TX. In June 2011, additional records were inspected at the Magellan office in Tulsa, OK.\nA Notice of Probable Violation and Proposed Compliance Order was issued to Magellan Pipeline\nCompany, LP on April17, 2012. The Final Order with Compliance Order was issued on June 21, 2013.\nMagellan submitted documentation on August 26, 2013, of inspections, actions, training and amended\nprocedures. My staff reviewed the information provided, and it appears that the inadequacies outlined in\nthis Notice of Probable Violation and Proposed Compliance Order has been corrected.\nThis letter is to inform you that no further action is necessary and this case is now closed. Thank you for\nyour cooperation.\nSincerely,\ncf&;~\nR. M. Seeley\nDirector, Southwest region\nPipeline and Hazardous Materials Safety Administration\n\n420125014_Final Order_06212013_text.pdf\n\nJUNE 21, 2013\nMr. Michael N. Mears\nPresident and Chief Executive Officer\nMagellan Pipeline Company, LP\n1 Williams Center\nP.O. Box 22186\nTulsa, OK 74172\nRe: CPF No. 4-2012-5014\nDear Mr. Mears:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Magellan Pipeline Company, LP, to\ncomply with the pipeline safety regulations. When the terms of the compliance order have been\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Rodrick M. Seeley, Director, Southwest Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN 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____________________________________\n)\nIn the Matter of )\n)\nMagellan Pipeline Company, LP, ) CPF No. 4-2012-5014\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nIn May 2011, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-\nsite pipeline safety inspection of the facilities and records of Magellan Pipeline Company, LP\n(Magellan or Respondent), in Texas and Oklahoma. Magellan operates approximately\n9,600 miles of refined products pipelines and 51 terminals in 13 Midwestern states.1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated April 17, 2012, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Magellan committed various violations of 49 C.F.R. Part 195 and proposed ordering\nRespondent to take certain measures to correct the alleged violations.\nMagellan responded to the Notice by letters dated May 22, 2012 (First Response) and\nMay 23, 2012 (Second Response). In these responses, Magellan requested a 45-day extension to\nfile a response and a hearing, respectively. By letter dated August 14, 2012, Respondent\nwithdrew its request for a hearing and thereby authorized the entry of this Final Order without\nfurther notice.\nFINDINGS OF VIOLATION\nIn its correspondence, Magellan did not contest the allegations in the Notice that it violated\n49 C.F.R. Part 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:\n1 Magellan Midstream Partners, LP, Home Page, available tt http://www.magellanlp.com, (last accessed\nJanuary 11, 2013).\n\n\n\n2\n§ 195.402 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline system a manual of written procedures for conducting normal\noperations and maintenance activities and handling abnormal operations\nand emergencies. This manual shall be reviewed at intervals not\nexceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at\nlocations where operations and maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its\nmanual of written procedures for conducting normal operations and maintenance activities.\nSpecifically, the Notice alleged that Magellan failed to follow its valve inspection procedures,\n2\nwhich required company personnel to verify the security of its valves. During the site\ninspection, PHMSA inspectors discovered a completely unsecured valve site. The security gate\nchain was corroded completely through and no fence, locked gate, or other apparatus was in\nplace to secure the site. While Magellan’s records indicated that valve inspections for the site\nwere conducted within the required intervals, the lack of proper security was not notated in the\nrelevant inspection records.\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. § 195.402(a) by failing to follow its\nmanual of written procedures for conducting normal operations and maintenance activities.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.428(d), which states:\n§ 195.428 Overpressure safety devices and overfill protection systems.\n(a) . . .\n(d) After October 2, 2000, the requirements of paragraphs (a) and (b)\nof this section for inspection and testing of pressure control equipment\napply to the inspection and testing of overfill protection systems.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.428(d) by failing to inspect and test\nthe overfill protection system that served as part of its pressure control equipment. Specifically,\nthe Notice alleged that Magellan failed to inspect or test the overfill protection systems of the in-\nservice atmospheric and low-pressure steel aboveground breakout tanks used on its pipeline.\nRespondent utilizes tanks owned by other entities, at both the Kinder Morgan Pasadena Terminal\nand the Texas City Refinery, to relieve surges from its pipelines. As a result, Magellan is\nrequired to perform inspection and testing, as specified by § 195.428(d).\nRespondent did not contest this allegation of violation, but stated in its First Response and\nSecond Response that it intended to secure the relevant inspection records and submit them to\n2 Magellan Mainline Valve Inspection Procedure, 7.13-ADM-1035-3.2.2. Pipeline Safety Violation Report\n(Violation Report) (April 17, 2012) (on file with PHMSA), at 39.\n\n\n\n3\nOPS. In its August 14, 2012 hearing withdrawal request, Magellan indicated that it had secured\nthe agreement of the relevant operators to provide the necessary records. However, no records\nhave been received to date.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\n49 C.F.R. § 195.428(d) by failing to inspect and test the overfill protection system that served as\npart of its pressure control equipment\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.432(b), which states:\n§ 195.432 Inspection of in-service breakout tanks.\n(a) . . .\n(b) Each operator must inspect the physical integrity of in-service\natmospheric and low-pressure steel aboveground breakout tanks according\nto API Standard 653 (incorporated by reference, see 195.3). However, if\nstructural conditions prevent access to the tank bottom, the bottom\nintegrity may be assessed according to a plan included in the operations\nand maintenance manual under § 195.402(c)(3).\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.432(b) by failing to inspect the\nphysical integrity of in-service atmospheric and low-pressure steel aboveground breakout tanks\naccording to API Standard 653 or, if prevented from accessing the tank bottom, assessing bottom\nintegrity according to a plan included in its operations and maintenance manual. Specifically,\nthe Notice alleged that Magellan failed to inspect breakout tanks associated with its pipeline.\nDuring the OPS inspection, Magellan was unable to provide evidence that it had inspected or\nmaintained appropriate records for breakout tanks at the Kinder Morgan Pasadena Terminal and\nthe Texas City Refinery.\nRespondent did not contest this allegation of violation, but indicated that the relevant inspection\nand testing records would be provided. As of the date of the Final Order, no records have been\nreceived.\nAccordingly, based upon a review of all of the evidence, I find that Respondent violated\n49 C.F.R. § 195.432(b) by failing to inspect the physical integrity of in-service atmospheric and\nlow-pressure steel aboveground breakout tanks according to API Standard 653 or, if prevented\nfrom accessing the tank bottom, assessing bottom integrity according to a plan included in its\noperations and maintenance manual.\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.579(a), which states:\n§ 195.579 What must I do to mitigate internal corrosion?\n(a) General. If you transport any hazardous liquid or carbon dioxide\nthat would corrode the pipeline, you must investigate the corrosive effect\nof the hazardous liquid or carbon dioxide on the pipeline and take\nadequate steps to mitigate internal corrosion.\n\n\n\n4\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.579(a) by failing to investigate the\neffect of the corrosive hazardous liquid being transported on its pipeline and to take adequate\nsteps to mitigate internal corrosion. Specifically, the Notice alleged that Magellan was unable to\nprovide documentation that it had performed an investigation of the liquid’s corrosive effects.\nMagellan acquired the pipelines cited during the audit in November 2010 and, since that time,\nhas not taken adequate steps to mitigate internal corrosion. During the OPS inspection, Magellan\nwas allegedly unable to provide any documentation that it had performed a coupon examination,\nwater sampling, or any other corrosive-effect investigation.3\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. § 195.579(a) by failing to investigate\nthe effect of the corrosive hazardous liquid being transported on its pipeline and to take adequate\nsteps to mitigate internal corrosion.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, 3 and 4 in the Notice for\nviolations of 49 C.F.R. §§ 195.402(a), 195.428(d), 195.432(b) and 195.579(a), respectively.\nUnder 49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids\nor who owns or operates a pipeline facility is required to comply with the applicable safety\nstandards established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and\n49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance\nwith the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.402(a) (Item 1), Respondent must review all\napplicable procedures related to valve inspections (7.13-ADM-1035). Respondent\nmust verify that all field personnel responsible for performing valve inspections are\nproperly trained in all inspection procedures and the completion of inspection records.\nIn addition, Respondent must inspect all mainline valves to ensure that adequate\nsecurity is in place, within 90 days of receipt of the Final Order.\n2. With respect to the violation of § 195.428(d) (Items 2 and 3), Respondent must\nimplement a process either to inspect or provide inspection records of (1) the physical\nintegrity of in-service atmospheric and low-pressure steel aboveground breakout\ntanks, according to section 4 of API Standard 653; and (2) the testing of overfill\nprotection systems, within 90 days of receipt of the Final Order.\n4. With respect to the violation of § 195.579(a) (Item 4), Respondent must\ninvestigate the potential corrosive effect of hazardous liquids being transported on its\npipeline and implement a program to monitor and mitigate internal corrosion, within\n90 days of receipt of the Final Order.\n3 Violation Report, at 21.\n\n\n\n5\n5. Respondent is requested but not required to submit documentation of the safety\nimprovement costs associated with fulfilling the Compliance Order and submit the\ntotal to Director, Southwest Region. Costs should be reported in two categories: (1)\ntotal cost associated with preparation and revision of plans, procedures, studies and\nanalyses; and (2) total cost associated with replacements, additions, and other changes\nto the pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nWARNING ITEM\nWith respect to Item 5, the Notice alleged probable violations of Part 195 but did not propose a\ncivil penalty or compliance order for this item. Therefore, this is considered to be warning\nitems. The warning was for:\n49 C.F.R. § 195.481 (Item 5) ─ Respondent’s alleged failure to protect several\nareas of its pipelines from atmospheric corrosion. PHMSA inspectors noted\nseveral areas in which piping had paint damage, coating damage, and surface\ncorrosion.\nMagellan presented no information in its Responses showing that it had taken certain actions to\naddress the cited item. If OPS finds a violation of this provision in a future inspection,\nRespondent may be subject to possible enforcement action.\nIf OPS finds a violation of this provision in a future inspection, Respondent may be subject to\npossible enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":17991}