# SHELL PIPELINE CO., L.P. — Warning Letter

- **operation:** document
- **citation:** CPF 420135029W
- **title:** SHELL PIPELINE CO., L.P. — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2013-11-18
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.264(b)(1).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-420135029w.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-420135029w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-420135029w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/420135029W
**body:**

Warning Letter involving SHELL PIPELINE CO., L.P.. PHMSA's enforcement data identifies the cited regulation as 195.264(b)(1). The case was opened on 2013-11-18 and is reported as closed as of 2013-11-18. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

420135029W_Warning _11182013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135029W/420135029W_Warning%20_11182013_text.pdf

420135029W_Warning_11182013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420135029W/420135029W_Warning_11182013.pdf

420135029W_Warning_11182013.pdf

u.s. Deportment
of Transportation
Pipeline and
Hazardous Materials Safety
Administration
8701 South Gessner, Suite 1110
Houston, TX 77074
WARNING LETTER
CERTIFIED MAIL • RETURN RECEIPT REQUESTED
November 18, 2013
Mr. Greg Smith
President
Shell Pipeline Company
777 Walker Street
Houston, TX 77002
CPF 4-2013-5029W
Dear Mr. Smith:
Between February and August 29, 2013, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code were onsite and inspected
Shell Pipeline systems in Louisiana, Texas and the GOM. The inspection consisted of procedure, record
and field audits pursuant to Chapter 601 of 49 United States Code.
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 item inspected and the probable
violation is:
§195.264 Impoundment, protection against entry, normal/emergency venting or
pressure/vacuum relief for aboveground breakout tanks.
Impoundment, protection against entry, normal/emergency venting
(b) After October 2, 2000, compliance with paragraph (a) of this section requires the
following for the aboveground breakout tanks specified:
(1) For tanks built to API Specification 12F, API Standard 620, and others (such as API
Standard 650 or its predecessor Standard 12C), the installation of impoundment must be in
accordance with the following sections of NFPA 30:
(i) Impoundment around a breakout tank must be installed in accordance with section
4.3.2.3.2; and



(ii) Impoundment by drainage to a remote impounding area must be installed in
accordance with section 4.3.2.3.1.
(2) For tanks built to API 2510, the installation of impoundment must be in accordance
with section 5 or 11 of API 2510 (incorporated by reference, see §195.3).
Shell Pipeline Company Tank Dike capacity or impoundment records indicated that they were
insufficient and not in compliance with § 195.264.
During the record inspection, PHMSA identified that the Tank Dike Capacities for the Tank 484 at
Nairn Station located in Plaquemines parish, LA were insufficient.
In the summer of2013, Shell began making plans to reconstruct the Tank Dike. Shell provided the Tank
Dike Capacity calculations and an updated Tank Data sheet to PHMSA on October 29, 2013. PHMSA
reviewed the Tank Capacity documentation 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 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-
2013-5029W. 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

420135029W_Warning _11182013_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 18, 2013
Mr. Greg Smith
President
Shell Pipeline Company
777 Walker Street
Houston, TX 77002
CPF 4-2013-5029W
Dear Mr. Smith:
Between February and August 29, 2013, representatives of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code were onsite and inspected
Shell Pipeline systems in Louisiana, Texas and the GOM. The inspection consisted of procedure, record
and field audits pursuant to Chapter 601 of 49 United States Code.
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 item inspected and the probable
violation is:
§195.264 Impoundment, protection against entry, normal/emergency venting or
pressure/vacuum relief for aboveground breakout tanks.
Impoundment, protection against entry, normal/emergency venting
(b) After October 2, 2000, compliance with paragraph (a) of this section requires the
following for the aboveground breakout tanks specified:
(1) For tanks built to API Specification 12F, API Standard 620, and others (such as API
Standard 650 or its predecessor Standard 12C), the installation of impoundment must be in
accordance with the following sections of NFPA 30:
(i) Impoundment around a breakout tank must be installed in accordance with section
4.3.2.3.2; and



(ii) Impoundment by drainage to a remote impounding area must be installed in
accordance with section 4.3.2.3.1.
(2) For tanks built to API 2510, the installation of impoundment must be in accordance
with section 5 or 11 of API 2510 (incorporated by reference, see §195.3).
Shell Pipeline Company Tank Dike capacity or impoundment records indicated that they were
insufficient and not in compliance with §195.264.
During the record inspection, PHMSA identified that the Tank Dike Capacities for the Tank 484 at
Nairn Station located in Plaquemines parish, LA were insufficient.
In the summer of 2013, Shell began making plans to reconstruct the Tank Dike. Shell provided the Tank
Dike Capacity calculations and an updated Tank Data sheet to PHMSA on October 29, 2013. PHMSA
reviewed the Tank Capacity documentation 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 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-
2013-5029W. 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
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