{"operation":"document","citation":"CPF 420145008","title":"BUCKEYE DEVELOPMENT & LOGISTICS, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-04-08","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.579(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145008.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145008.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145008","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420145008","body":"Notice of Probable Violation involving BUCKEYE DEVELOPMENT & LOGISTICS, LLC. PHMSA's enforcement data identifies the cited regulation as 195.579(a). The case was opened on 2014-04-08 and is reported as closed as of 2015-06-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420145008_Closure_06162015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_Closure_06162015.pdf\n\n420145008_Closure_06162015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_Closure_06162015_text.pdf\n\n420145008_Final Order_11262014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_Final%20Order_11262014.pdf\n\n420145008_Final Order_11262014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_Final%20Order_11262014_text.pdf\n\n420145008_NOPV PCO_04082014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_NOPV%20PCO_04082014.pdf\n\n420145008_NOPV PCO_04082014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_NOPV%20PCO_04082014_text.pdf\n\n420145008_Operator Response and Request For Time Extension_05072014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145008/420145008_Operator%20Response%20and%20Request%20For%20Time%20Extension_05072014.pdf\n\n420145008_Closure_06162015_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 16, 2015\nMr. Thomas S. (Scott) Collier\nVice President, Performance Assurance & Asset Integrity\nBuckeye Partners, L.P.\nOne Greenway Plaza\nHouston, Texas 77046\nCPF 4-2014-5008\nDear Mr. Collier:\nOn November 6, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\nto Buckeye Development & Logistics, LLC a Final Order in the above-referenced case. This Order\nincluded a Compliance Order. Based on our review of the documentation you provided, it has been\ndetermined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the matters\ninvolved in this case. Thank you for your cooperation in this matter.\nSincerely,\nR. M. Seeley\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420145008_Final Order_11262014_text.pdf\n\nNOVEMBER 26, 2014\nMr. Clark C. Smith\nPresident and CEO\nBuckeye Partners, LP\nOne Greenway Plaza\nHouston, Texas 77046\nRe: CPF No. 4-2014-5008\nDear Mr. Smith:\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 your subsidiary, Buckeye Development\nand Logistics, LLC, to comply with the pipeline safety regulations. When the terms of the\ncompliance order have been completed, as determined by the Director, Southwest Region, this\nenforcement action will be closed. Service of the Final Order by certified mail is deemed\neffective upon the date of mailing, or 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. R. M. Seeley, Director, Southwest Region, OPS\nMr. Thomas S. (Scott) Collier, Vice President, Performance Assurance & Asset Integrity,\nBuckeye Partners, LP\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____________________________________\nIn the Matter of )\nBuckeye Development & Logistics, LLC, ) a subsidiary of Buckeye Partners, LP, )\n)\n)\n)\nRespondent. )\n____________________________________)\nCPF No. 4-2014-5008\nFINAL ORDER\nBetween August 26, 2013, and November 21, 2013, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Buckeye Development & Logistics, LLC (Buckeye or Respondent), in Liberty, Texas,\nand Mount Belvieu, Texas. Buckeye, a subsidiary of Buckeye Partners, LP, operates and\nmaintains approximately 2,700 miles of hazardous liquid and gas pipelines and 670,000 barrels\nof storage in 12 states from California to Florida.\n1\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to Buckeye,\nby letter dated April 8, 2014, a Notice of Probable Violation and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Buckeye had\nviolated 49 C.F.R. § 195.579 and ordering Buckeye to take certain measures to correct the\nalleged violation.\nBuckeye responded to the Notice by letter dated May 7, 2014 (Response). The company did not\ncontest the allegation of violation, but requested modifications to Items 1 and 2 of the Proposed\nCompliance Order. Buckeye did not request a hearing and therefore has waived its right to one.\nFINDING OF VIOLATION\nIn its Response, Buckeye did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Buckeye Development and Logistics, LLC, website, available at\nhttp://www.buckeyedevelopmentlogistics.com/AboutUs/BDLOverview/tabid/703/language/en-US/Default.aspx\n(last accessed October 3, 2014).\n\n\n\nCPF No: 4-2014-5008\nPage 2\nItem 1: The Notice alleged that Buckeye 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.\nThe Notice alleged that Buckeye violated 49 C.F.R. § 195.579(a) by failing to investigate the\ncorrosive effect of the product being transported by its 6-inch ethane pipeline running from\nMount Belvieu, Texas, to Westlake, Louisiana. Specifically, the Notice alleged that Buckeye\nwas unable to provide documentation indicating it had investigated the cause or nature of certain\ninternal metal loss previously identified on this line through in-line inspections.\n2 Additionally, it\nalleged that Buckeye failed to take adequate steps to monitor and mitigate internal corrosion\nthrough the use of inhibitors or to utilize a probe or coupon corrosion monitoring program to\ndetermine the corrosive effects of its product.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nthe evidence, I find that Buckeye violated 49 C.F.R. § 195.579(a) by failing to investigate the\ncorrosive effect of the hazardous liquid being transported by its 6-inch ethane pipeline and by\nfailing to take adequate steps to mitigate internal corrosion.\nThis finding of a violation will be considered a prior offense in any subsequent enforcement\naction taken against respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 195.579(a). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601.\nIn its Response, Buckeye sought three modifications to the Compliance Order.\nModification Request One:\nBuckeye requested that the third and fourth sentences of Item 1 be revised to read as follows:\nBuckeye will perform the required investigation of the internal\nmetal loss under 195.579(a) and provide the results of the\ninvestigation and a plan for mitigation of internal corrosion based\n2 The Notice alleged that in June of 2010, the prior operator of the 6-inch ethane pipeline had assessed the pipeline\nwith an in-line inspection tool and that the assessment resulted in four indications of internal metal loss. Buckeye\nbecame the operator of the pipeline in January of 2011.\n\n\n\nCPF No: 4-2014-5008\nPage 3\non the investigation.\nBuckeye proposed this language because it “more closely follows the Pipeline Safety\nregulations, Title 49, CFR Part 195.579(a).”3\nI decline to adopt the requested modification. Section 195.579(a) requires operators who\ntransport any hazardous liquid or carbon dioxide that would corrode the pipeline to investigate\nthat corrosive effect of such product and to take adequate steps to mitigate internal corrosion.\nThe third and fourth sentences in the proposed Compliance Order merely add detail to the nature\nof the investigation and do not alter either the purpose or the effect of the regulation.\nModification Request Two:\nBuckeye requested that language be added to Item 2 that would allow for an extension of time to\nperform the investigation and to formulate a mitigation plan for cause, provided the request is\ntimely filed with the Director, Southwest Region.\nI decline to adopt the requested modification. The proposed Compliance Order already includes\ninstructions for requesting an extension of time identical to those being proposed by Respondent.\nPlease see the paragraph following Item 3 in the Compliance Order below.\nModification Request Three:\nBuckeye requested that Item 1 be modified to exclude any specific references to dead legs, low-\nflow lines and infrequently-used pump station lines. Buckeye asserts that these specific items\nare neither defined in 49 CFR Part 195 nor referenced specifically in § 195.579. Buckeye states\nthat its corrosion control procedures apply to all pipelines subject to Part 195, “which should\nensure that all investigations required under § 195.579 will be performed on all pipelines subject\nto PHMSA regulation.”4\nI decline to adopt the requested modification. The terms of the Compliance Order do not require\nBuckeye to make specific references in its procedures to dead legs, low-flow lines and\ninfrequently-used pump station lines. It merely states that Buckeye must address the corrosive\neffect of hazardous liquids within its pipeline on those portions of its system that contain these\nparticular pipeline characteristics. Since these types of lines tend to be more susceptible to\ninternal corrosion, a good corrosion procedure program will take them into account, regardless of\nthe nomenclature attached to them.\nAccordingly, pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217,\nRespondent is ordered to take the following actions to ensure compliance with the pipeline safety\nregulations applicable to its operations:\n1. With respect to the violation of § 195.579(a) (Item 1), Respondent must review\n3 Response at 1.\n4 Id. at 2.\n\n\n\nCPF No: 4-2014-5008\nPage 4\nall relevant corrosion procedures and amend them as necessary to ensure that any\nsigns of internal metal loss are investigated. The procedures should also address\nthe corrosive effect of hazardous liquids within its pipelines on dead legs, low-\nflow lines, and infrequently used pump-station lines. Buckeye must perform an\ninvestigation that answers why there is metal loss in the pipeline and whether the\nmetal loss is stable or unstable. Based on a review of the corrosion procedures\nand investigation of the internal metal loss, Buckeye must provide the Southwest\nRegion Office with the results of the investigation and a plan for remediation of\ninternal corrosion based on that investigation.\n2. Buckeye must submit all documentation required by this Compliance Order\nwithin 30 days following receipt of the Final Order.\n3. It is requested (not mandated) that Buckeye maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit\nthe total to R.M. Seeley, Director, Southwest Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in\ntwo categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses; and 2) total cost associated with replacements,\nadditions and other changes to 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 $200,000 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.\nUnder 49 C.F.R. § 190.243, Respondent may submit a petition for reconsideration of this Final\nOrder to the Associate Administrator for Pipeline Safety, PHMSA, 1200 New Jersey Avenue SE,\nEast Building, 2nd Floor, Washington, D.C. 20590, no later than 20 days after receipt of the\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. Unless the Associate Administrator, upon\nrequest, grants a stay, the terms of this order, including the corrective action, remain in effect\nupon the filing of a petition for reconsideration.\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":13381}