{"operation":"document","citation":"CPF 420145030W","title":"MAGELLAN PIPELINE COMPANY, LP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-12-03","effective_on":null,"summary":"CLOSED warning letter citing 195.132(b)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145030w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145030w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420145030w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420145030W","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 2014-12-03 and is reported as closed as of 2014-12-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420145030W_Warning_12032014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145030W/420145030W_Warning_12032014.pdf\n\n420145030W_Warning_12032014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420145030W/420145030W_Warning_12032014_text.pdf\n\n420145030W_Warning_12032014_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 3, 2014\nMr. Michael Pearson\nVice President, Technical Services\nMagellan Pipeline, L.P.\nOne Williams Center, MD 27\nTulsa, OK 74172\nCPF 4-2014-5030W\nDear Mr. Pearson:\nOn September 23, 2014, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your breakout\ntank construction at the Houston East Terminal in Houston, TX.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolation(s) are:\n1. §195.132 Aboveground breakout tank.\n(b) For aboveground breakout tank first placed in service after October 2, 2000,\ncompliance with paragraph (a) of this section requires one of the following:\n(3) Vertical, cylindrical, welded steel tanks with internal pressures at the tank top\napproximating atmospheric pressures (i.e., internal vapor space pressures not greater\nthan 2.5 psig (17.2 kPa), or not greater than the pressure developed by the weight of the\ntank roof) must be designed and constructed in accordance with API Standard 650.\nMagellan Pipeline, L.P. (Magellan) failed to meet the requirements of 195.132(b)(3) by not following\nthe requirements of API 650. After conducting the nondestructive examination (NDE) by visual\nexamination of the breakout tank bottom welds and plates for potential defects and leaks, Magellan\nfailed to sufficiently document the repairs made to the bottom floors as required by API 650. Upon\ncompletion of welding the tank bottom, API 650 Section 7 Erection, 7.3.3 Examination of the Tank\nBottom, requires the operator to visually examine the bottom welds and plates for any potential\n\n\n\ndefects and leaks. Particular attention shall apply to areas such as sumps, dents, gouges, three-plate\nlaps, bottom plate breakdowns, arc strikes, temporary attachment removal areas, and welding lead arc\nburns. In addition Section 1.4 Documentation Requirements requires the operator to develop certain\ndocuments as per Appendix W, which includes reports of all tests including reports of all\nnondestructive examinations.\nDuring the inspection, the PHMSA inspector noticed several arc burns and repair areas on the\nbreakout tank bottom floors and asked the tank inspector for details of the repairs. The tank\ninspector stated that the markings are known as “Pick ups,” which are found by the NDE inspector\nafter performing a visual examination of the bottom floors. The “pick ups” indicate areas which need\nattention by the welder by either grinding down the weld, adding additional weld, repairing arc burns\nor any other type of repair. After making repairs to the “pick ups” and arc burns, Magellan could not\nprovide documentation or records to demonstrate that the “pick ups” or arc burns were repaired.\nMagellan explained that the “pick ups” are more of a cosmetic repair than an integrity repair. Even\nthough, these are considered “cosmetic” repairs, Magellan needs to document the repairs made to\ndefects identified by visual examination to meet API 650 requirements.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of\nviolations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed\n$100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related\nseries of violations. We have reviewed the circumstances and supporting documents involved in this\ncase, and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to correct the item(s) identified in this letter. Failure to do\nso will result in Magellan being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF\n4-2014-5030W. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive material\nqualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original\ndocument you must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nR. M. Seeley\nDirector, Southwest\nPipeline and Hazardous Materials Safety Administration\n2","truncated":false,"body_characters":5323}