{"operation":"document","citation":"CPF 420185019W","title":"OSAGE PIPE LINE COMPANY, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-10-12","effective_on":null,"summary":"CLOSED warning letter citing 194.121(a), 195.64(c)(2)(iv).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185019w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185019w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185019w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420185019W","body":"Warning Letter involving OSAGE PIPE LINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 194.121(a),  195.64(c)(2)(iv). The case was opened on 2018-10-12 and is reported as closed as of 2018-10-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420185019W_Warning Letter_10122018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185019W/420185019W_Warning%20Letter_10122018.pdf\n\n420185019W_Warning Letter_10122018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185019W/420185019W_Warning%20Letter_10122018_text.pdf\n\n420185019W_Warning Letter_10122018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 12, 2018\nMark Cunningham\nSenior Vice President, Engineering and Technical Services\nHolly Energy Partners – Operating, L.P.\n2828 N Harwood Suite 1300\nDallas, Texas 75201\nCPF-4-2018-5019W\nDear Mr. Cunningham:\nFrom November 27, 2017 to March 23, 2018, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your Osage Pipeline System in Oklahoma and Kansas.\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. §194.121 Response plan review and update procedures.\n(a) Each operator shall update its response plan to address new or different operating\nconditions or information. In addition, each operator shall review its response plan\nin full at least every 5 years from the date of the last submission or the last approval\nas follows:\n(1) For substantial harm plans, an operator shall resubmit its response plan to\nOPS every 5 years from the last submission date.\n(2) For significant and substantial harm plans, an operator shall resubmit every 5\nyears from the last approval date.\nOsage Pipeline failed to review its facility response plan (FRP) in full at least every 5 years from\nthe date of the last submission or the last approval. Holly Energy has an FRP Core Plan which\n\n\n\nrequires the FRP to be reviewed at least every five years from the last approval date and\nresubmitted to DOT and the EPA. The Operator stated that they did not conduct the 5-year review\nfor the Osage Pipeline. Osage Pipeline falls under two separate FRPs, the Tulsa Response Zone\nFacility Specific Plan Part B (DOT) and the Facility Specific Plan Part A: El Dorado Crude Tank\nFarm and Associated Pipeline Facilities.\nThe PHMSA Inspector reviewed the Holly Energy Partners FRP Core Plan Section 10.0: Plan\nReview and Update Procedures, the Tulsa Response Zone Facility Specific Plan Part B (DOT) and\nthe Facility Specific Plan Part A: El Dorado Crude Tank Farm and Associated Pipeline Facilities\nand did not find that a revised plan was submitted.\n2. §195.64 National Registry of Pipeline and LNG Operators.\n(c) Changes. Each operator must notify PHMSA electronically through the National\nRegistry of Pipeline and LNG Operators at http://opsweb.phmsa.dot.gov, of certain\nevents.\n(2) An operator must notify PHMSA of any following event not later than 60 days\nafter the event occurs:\n(iv) The acquisition or divestiture of 50 or more miles of pipeline or pipeline\nsystem subject to this part.\nOsage Pipeline failed to notify PHMSA of the acquisition of 50 or more miles of pipeline not later\nthan 60 days after the acquisition occurred. Holly Energy acquired the Osage Pipeline from\nMagellan Pipeline Company, LP on February 22, 2016. Osage Pipeline submitted their Operator\nRegistry Notification on August 12, 2016, 112 days past the 60 day notification requirement.\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. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the items identified in this letter.\nFailure to do so will result in Osage Pipeline being subject to additional enforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF-4-2018-5019W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n3","truncated":false,"body_characters":5302}