{"operation":"document","citation":"CPF 420185017","title":"BKEP PIPELINE, LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-09-13","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.446(h)(1), 195.452(e)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185017.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185017.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185017","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420185017","body":"Notice of Probable Violation involving BKEP PIPELINE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.446(h)(1),  195.452(e)(1). The case was opened on 2018-09-13 and is reported as closed as of 2019-03-01. Proposed civil penalty: $65,600. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420185017_NOPV PCP PCO_09132018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_NOPV%20PCP%20PCO_09132018.pdf\n\n420185017_NOPV PCP PCO_09132018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_NOPV%20PCP%20PCO_09132018_text.pdf\n\n420185017_Operator Response to Notice_10192018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_Operator%20Response%20to%20Notice_10192018.pdf\n\n420185017_Region Withdrawal of Notice_03012019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_Region%20Withdrawal%20of%20Notice_03012019.pdf\n\n420185017_Region Withdrawal of Notice_03012019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_Region%20Withdrawal%20of%20Notice_03012019_text.pdf\n\n420185017_Region Withdrawal of Notice_03012019_text.pdf\n\nVIA E-MAIL AND CERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 1, 2019\nTim Moore\nVice President, Crude & Pipeline Operations\nBKEP Pipeline, LLC\n2110 South Linwood Avenue\nCushing, Oklahoma 74023\nRE: Blueknight CPF 4-2018-5017\nDear Mr. Moore:\nOn February 13 through 16, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected the Blueknight Energy Partners’ (BKEP) Red River System in\nOklahoma and Texas.\nAs a result of this inspection, PHMSA, issued to BKEP a Notice of Probable Violation (Notice),\nincluding a Proposed Civil Penalty and Proposed Compliance Order. On October 19, 2018, BKEP\nresponded to the Notice and contested both alleged violations (Response).\nBKEP’s Response provided clarification regarding control room training, as well as information\nregarding risk factors used to establish its integrity assessment schedule. BKEP also provided\ndocumentation confirming its compliance with federal pipeline safety regulations. Therefore,\nupon review of the Response and materials provided, PHMSA hereby withdraws the Notice and\nthe case is now closed.\nIf you have any questions, please do not hesitate to contact me at mary.mcdaniel@dot.gov or (713)\n272-2847.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420185017_NOPV PCP PCO_09132018_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 13, 2018\nTim Moore\nVice President, Crude & Pipeline Operations\nBKEP Pipeline, LLC\n2110 South Linwood Avenue\nCushing, Oklahoma 74023\nCPF 4-2018-5017\nDear Mr. Moore:\nOn February 13 through 16, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected your BKEP Red River System in Oklahoma and Texas.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 195.446 Control room management.\n(h) Training. Each operator must establish a controller training program and review\nthe training program content to identify potential improvements at least once each\ncalendar year, but at intervals not to exceed 15 months. An operator's program must\nprovide for training each controller to carry out the roles and responsibilities defined\n\n\n\nby the operator. In addition, the training program must include the following\nelements:\n(1) Responding to abnormal operating conditions likely to occur simultaneously or in\nsequence;\nBKEP failed to establish the controller training program to include scenarios for responding to\nabnormal operating conditions (AOC) likely to occur simultaneously or in sequence.\nDuring the inspection, PHMSA requested BKEP to provide the records of the controller’s training\nelements to ensure they are trained on multiple abnormal operating conditions likely to occur\nsimultaneously or in sequence. BKEP provided sign-in sheets (monthly training), new controller\n(trainee) training sheets, and Blue Knight Energy Partners Controller System Review Reports. The\ndocumentation did not include a provision for scenarios that may have occurred simultaneously or\nin sequence. There were no AOC training scenarios mentioned in the provided documentation.\n2. §195.452 Pipeline integrity management in high consequence areas\n(e) What are the risk factors for establishing an assessment schedule (for both the\nbaseline and continual integrity assessments)?\n(1) An operator must establish an integrity assessment schedule that prioritizes\npipeline segments for assessment (see paragraphs (d)(1) and (j)(3) of this section). An\noperator must base the assessment schedule on all risk factors that reflect the risk\nconditions on the pipeline segment. The factors an operator must consider include,\nbut are not limited to:\n(i) Results of the previous integrity assessment, defect type and size that the\nassessment method can detect, and defect growth rate;\n(ii) Pipe size, material, manufacturing information, coating type and condition, and\nseam type;\n(iii) Leak history, repair history and cathodic protection history;\n(iv) Product transported;\n(v) Operating stress level;\n(vi) Existing or projected activities in the area;\n(vii) Local environmental factors that could affect the pipeline (e.g., corrosivity of soil,\nsubsidence, climatic);\n(viii) geo-technical hazards; and\n(ix) Physical support of the segment such as by a cable suspension bridge.\nBKEP failed to base their integrity assessment schedule on all risk factors that reflect the risk\nconditions on the pipeline segment as required by §195.452(e)(1).\n2\n\n\n\nDuring the inspection, PHMSA requested BKEP to provide the integrity assessment schedule that\nprioritizes pipeline segments considering all the risk factors listed in their Integrity Management\nPlan Section 3.7 Threat Analysis. BKEP provided the risk assessment of all segments of the Red\nRiver Pipeline for 2016. Based on the provided risk assessment, only four (4) threats (3rd party\ndamage, weather/outside force, external corrosion and internal corrosion for each line segment\nwere considered. The remaining threats (stress corrosion cracking, manufacturing defect threats,\nconstruction threat, equipment malfunction and incorrect operation) were not included in the risk\nassessment. BKEP failed to provide the information or perform an integration of the data into\ntheir risk algorithm calculation to support the requirements of §195.452(e).\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$209,002 per violation per day the violation persists, up to a maximum of $2,090,022 for a related\nseries of violations. For violations occurring prior to November 2, 2015, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000\nfor a related series of violations. The Compliance Officer has reviewed the circumstances and\nsupporting documentation involved in the above probable violation(s) and has recommended that\nyou be preliminarily assessed a civil penalty of $65,600 as follows:\nItem number PENALTY\nItem 1 $19,000\nItem 2 $46,600\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to BKEP Pipeline, LLC. Please refer to the\nProposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\n3\n\n\n\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 4-2018-5017 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n4\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to BKEP Pipeline, LLC. a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of BKEP Pipeline,\nLLC with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number 1 of the Notice pertaining to BKEP failing to provide\ntraining scenarios for responding to abnormal operating conditions likely to occur\nsimultaneously or in sequence, BKEP must establish additional training scenarios\nin their controller training program and retain records of the training conducted in\naccordance with 195.446(h)(1).\nBKEP must revise the training program within 60 days following receipt of the\nFinal Order and submit to the PHMSA Southwest Region office.\nIt is requested (not mandated) that BKEP Pipeline, LLC maintain documentation\nof the safety improvement costs associated with fulfilling this Compliance Order\nand submit the total to Mary L. McDaniel, Director, Southwest, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n5","truncated":false,"body_characters":11154}