# BKEP PIPELINE, LLC — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.446(h)(1), 195.452(e)(1).
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- **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.

Official case documents:

420185017_NOPV PCP PCO_09132018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_NOPV%20PCP%20PCO_09132018.pdf

420185017_NOPV PCP PCO_09132018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_NOPV%20PCP%20PCO_09132018_text.pdf

420185017_Operator Response to Notice_10192018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_Operator%20Response%20to%20Notice_10192018.pdf

420185017_Region Withdrawal of Notice_03012019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_Region%20Withdrawal%20of%20Notice_03012019.pdf

420185017_Region Withdrawal of Notice_03012019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185017/420185017_Region%20Withdrawal%20of%20Notice_03012019_text.pdf

420185017_Region Withdrawal of Notice_03012019_text.pdf

VIA E-MAIL AND CERTIFIED MAIL - RETURN RECEIPT REQUESTED
March 1, 2019
Tim Moore
Vice President, Crude & Pipeline Operations
BKEP Pipeline, LLC
2110 South Linwood Avenue
Cushing, Oklahoma 74023
RE: Blueknight CPF 4-2018-5017
Dear Mr. Moore:
On February 13 through 16, 2017, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United
States Code (U.S.C.) inspected the Blueknight Energy Partners’ (BKEP) Red River System in
Oklahoma and Texas.
As a result of this inspection, PHMSA, issued to BKEP a Notice of Probable Violation (Notice),
including a Proposed Civil Penalty and Proposed Compliance Order. On October 19, 2018, BKEP
responded to the Notice and contested both alleged violations (Response).
BKEP’s Response provided clarification regarding control room training, as well as information
regarding risk factors used to establish its integrity assessment schedule. BKEP also provided
documentation confirming its compliance with federal pipeline safety regulations. Therefore,
upon review of the Response and materials provided, PHMSA hereby withdraws the Notice and
the case is now closed.
If you have any questions, please do not hesitate to contact me at mary.mcdaniel@dot.gov or (713)
272-2847.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration

420185017_NOPV PCP PCO_09132018_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
September 13, 2018
Tim Moore
Vice President, Crude & Pipeline Operations
BKEP Pipeline, LLC
2110 South Linwood Avenue
Cushing, Oklahoma 74023
CPF 4-2018-5017
Dear Mr. Moore:
On February 13 through 16, 2017, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United
States Code (U.S.C.) inspected your BKEP Red River System in Oklahoma and Texas.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 195.446 Control room management.
(h) Training. Each operator must establish a controller training program and review
the training program content to identify potential improvements at least once each
calendar year, but at intervals not to exceed 15 months. An operator's program must
provide for training each controller to carry out the roles and responsibilities defined



by the operator. In addition, the training program must include the following
elements:
(1) Responding to abnormal operating conditions likely to occur simultaneously or in
sequence;
BKEP failed to establish the controller training program to include scenarios for responding to
abnormal operating conditions (AOC) likely to occur simultaneously or in sequence.
During the inspection, PHMSA requested BKEP to provide the records of the controller’s training
elements to ensure they are trained on multiple abnormal operating conditions likely to occur
simultaneously or in sequence. BKEP provided sign-in sheets (monthly training), new controller
(trainee) training sheets, and Blue Knight Energy Partners Controller System Review Reports. The
documentation did not include a provision for scenarios that may have occurred simultaneously or
in sequence. There were no AOC training scenarios mentioned in the provided documentation.
2. §195.452 Pipeline integrity management in high consequence areas
(e) What are the risk factors for establishing an assessment schedule (for both the
baseline and continual integrity assessments)?
(1) An operator must establish an integrity assessment schedule that prioritizes
pipeline segments for assessment (see paragraphs (d)(1) and (j)(3) of this section). An
operator must base the assessment schedule on all risk factors that reflect the risk
conditions on the pipeline segment. The factors an operator must consider include,
but are not limited to:
(i) Results of the previous integrity assessment, defect type and size that the
assessment method can detect, and defect growth rate;
(ii) Pipe size, material, manufacturing information, coating type and condition, and
seam type;
(iii) Leak history, repair history and cathodic protection history;
(iv) Product transported;
(v) Operating stress level;
(vi) Existing or projected activities in the area;
(vii) Local environmental factors that could affect the pipeline (e.g., corrosivity of soil,
subsidence, climatic);
(viii) geo-technical hazards; and
(ix) Physical support of the segment such as by a cable suspension bridge.
BKEP failed to base their integrity assessment schedule on all risk factors that reflect the risk
conditions on the pipeline segment as required by §195.452(e)(1).
2



During the inspection, PHMSA requested BKEP to provide the integrity assessment schedule that
prioritizes pipeline segments considering all the risk factors listed in their Integrity Management
Plan Section 3.7 Threat Analysis. BKEP provided the risk assessment of all segments of the Red
River Pipeline for 2016. Based on the provided risk assessment, only four (4) threats (3rd party
damage, weather/outside force, external corrosion and internal corrosion for each line segment
were considered. The remaining threats (stress corrosion cracking, manufacturing defect threats,
construction threat, equipment malfunction and incorrect operation) were not included in the risk
assessment. BKEP failed to provide the information or perform an integration of the data into
their risk algorithm calculation to support the requirements of §195.452(e).
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$209,002 per violation per day the violation persists, up to a maximum of $2,090,022 for a related
series of violations. For violations occurring prior to November 2, 2015, the maximum penalty
may not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000
for a related series of violations. The Compliance Officer has reviewed the circumstances and
supporting documentation involved in the above probable violation(s) and has recommended that
you be preliminarily assessed a civil penalty of $65,600 as follows:
Item number PENALTY
Item 1 $19,000
Item 2 $46,600
Proposed Compliance Order
With respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety
Administration proposes to issue a Compliance Order to BKEP Pipeline, LLC. Please refer to the
Proposed Compliance Order, which is enclosed and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in
Compliance Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be 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).
3



Following the receipt of this Notice, you have 30 days to submit written comments, or request a
hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,
this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the
Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further
notice to you and to issue a Final Order. If you are responding to this Notice, we propose that you
submit your correspondence to my office within 30 days from receipt of this Notice. This period
may be extended by written request for good cause.
In your correspondence on this matter, please refer to CPF 4-2018-5017 and, for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
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PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to BKEP Pipeline, LLC. a Compliance Order
incorporating the following remedial requirements to ensure the compliance of BKEP Pipeline,
LLC with the pipeline safety regulations:
1. 2. 3. In regard to Item Number 1 of the Notice pertaining to BKEP failing to provide
training scenarios for responding to abnormal operating conditions likely to occur
simultaneously or in sequence, BKEP must establish additional training scenarios
in their controller training program and retain records of the training conducted in
accordance with 195.446(h)(1).
BKEP must revise the training program within 60 days following receipt of the
Final Order and submit to the PHMSA Southwest Region office.
It is requested (not mandated) that BKEP Pipeline, LLC maintain documentation
of the safety improvement costs associated with fulfilling this Compliance Order
and submit the total to Mary L. McDaniel, Director, Southwest, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: 1) total cost associated with preparation/revision of
plans, procedures, studies and analyses, and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
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