# MAGELLAN PIPELINE COMPANY, LP — Warning Letter

- **operation:** document
- **citation:** CPF 420135024W
- **title:** MAGELLAN PIPELINE COMPANY, LP — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2013-10-28
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.132(b)(3).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420135024w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420135024w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420135024W
**body:**

Warning Letter involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulation as 195.132(b)(3). The case was opened on 2013-10-28 and is reported as closed as of 2013-10-28. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420135024W_ Warning_10282013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135024W/420135024W_%20Warning_10282013_text.pdf

420135024W_Warning_10282013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135024W/420135024W_Warning_10282013.pdf

420135024W_ Warning_10282013_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
October 28, 2013
Mr. Michael Pearson
Vice President, Technical Services
Magellan Pipeline Company
One Williams Center, MD 27
Tulsa, OK 74172
CPF 4-2013-5024W
Dear Mr. Pearson:
On September 10, 2013, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the
construction of Breakout Tank (tank# 3512) as a part of BridgeTex Project at East Houston Tank
Terminal, Houston, Texas.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the
probable violations are:
1. §195.132 Aboveground breakout tank
(b) For aboveground breakout tank first placed in service after October 2, 2000,
compliance with paragraph (a) of this section requires one of the following:
(3) Vertical, cylindrical, welded steel tanks with internal pressures at the tank top
approximating atmospheric pressures (i.e., internal vapor space pressures not



greater than 2.5 psig (17.2 kPa), or not greater than the pressure developed by the
weight of the tank roof) must be designed and constructed in accordance with API
Standard 650.
The Vacuum Box test reports of tank# 3512 (BridgeTex) does not reflect the metal surface
temperature readings. During the field inspection, PHMSA requested Magellan to provide the
Vacuum Box Test Reports for Breakout Tank #3512(BridgeTex project). PHMSA
representative reviewed the reports, and revealed that Magellan recorded the ambient
temperature in lieu of metal surface temperature.
API 650, Section 8.6.6 states:
“The metal surface temperature limits 4°C (40°F) and 52°C (125°F), unless the film solution is
proven to work at temperatures outside these limits, either by testing or Manufacturer’s
recommendations.”
API 650, Section 8.6.10 also states:
“A record or report of the test including a statement addressing temperature and light
intensity shall be completed and furnished to the purchaser upon request.”
PHMSA confirmed that Magellan is not following the Vacuum Box inspection procedure as
described in API 650, Section 8.6.6 and subparagraph 8.6.10.
On September 16, 2013, Magellan conducted the Vacuum Box test of the Tank# 3512 and
provided the test reports to PHMSA on September 24, 2013. PHMSA reviewed the Vacuum
Box test reports and found it acceptable.
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000
per violation per day the violation persists up to a maximum of $2,000,000 for a related series of
violations. For violations occurring prior to January 4, 2012, the maximum penalty may not
exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a
related series of violations. We have reviewed the circumstances and supporting documents
involved in this case, and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time. We advise you to correct the item(s) identified in this letter.
Failure to do so will result in Magellan being subject to additional enforcement action.



No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2013-5024. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe
the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration

420135024W_Warning_10282013.pdf

u.s. Department
afTransportation
Pipeline and
Hazardous Materials Safety
Administration
8701 South Gessner, Suite 1110
Houston, TX 77074
WARNING LETTER
CERTIFIED MAIL- RETURN RECEIPT REQUESTED
October 28, 2013
Mr. Michael Pearson
Vice President, Technical Services
Magellan Pipeline Company
One Williams Center, MD 27
Tulsa, OK 74172
CPF 4-2013-5024W
Dear Mr. Pearson:
On September I 0, 2013, representatives of tbe Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the
construction of Breakout Tank (tank# 3512) as a part of BridgeT ex Project at East Houston Tank
Terminal, Houston, Texas.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the
probable violations are:
I. §195.132 Aboveground breakout tank
(b) For aboveground breakout tank first placed in service after October 2, 2000,
compliance with paragraph (a) of this section requires one ofthe following:
(3) Vertical, cylindrical, welded steel tanks with internal pressures at the tank top
approximating atmospheric pressures (i.e., internal vapor space pressures not



greater than 2.5 psig (17.2 kPa), or not greater than the pressure developed by the
weight of the tank roof) must be designed and constructed in accordance with API
Standard 650.
The Vacuum Box test reports of tank# 3512 (BridgeTex) does not reflect the metal surface
temperature readings. During the field inspection, PHMSA requested Magellan to provide the
Vacuum Box Test Reports for Breakout Tank #3512(BridgeTex project). PHMSA
representative reviewed the reports, and revealed that Magellan recorded the ambient
temperature in lieu of metal surface temperature.
API 650, Section 8.6.6 states:
''The metal surface temperature limits 4°C (40°F) and 52°C (125°F), unless the film solution is
proven to work at temperatures outside these limits, either by testing or Manufacturer's
recommendations."
API 650, Section 8.6.1 0 also states:
"A record or report of the test including a statement addressing temperature and light
intensity shall be completed and furnished to the purchaser upon request."
PHMSA confirmed that Magellan is not following the Vacuum Box inspection procedure as
described in API 650, Section 8.6.6 and subparagraph 8.6.1 0.
On September 16, 2013, Magellan conducted the Vacuum Box test of the Tank# 3512 and
provided the test reports to PHMSA on September 24, 2013. PHMSA reviewed the Vacuum
Box test reports and found it acceptable.
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000
per violation per day the violation persists up to a maximum of$2,000,000 for a related series of
violations. For violations occurring prior to January 4, 2012, the maximum penalty may not
exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a
related series of violations. We have reviewed the circumstances and supporting documents
involved in this case, and have decided not to conduct additional enforcement action or penalty
assessment proceedings at this time. We advise you to correct the item(s) identified in this letter.
Failure to do so will result in Magellan being subject to additional enforcement action.



No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2013-5024. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe quality for confidential treatment redacted and an explanation of why you believe
the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
Sincerely,
R. M. Seeley
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
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