{"operation":"document","citation":"CPF 420185020M","title":"OSAGE PIPE LINE COMPANY, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-10-12","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(5), 195.402(d)(1), 195.402(d)(2), 195.402(d)(3).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185020m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185020m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185020m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420185020M","body":"Notice of Amendment involving OSAGE PIPE LINE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(5),  195.402(d)(1),  195.402(d)(2),  195.402(d)(3). The case was opened on 2018-10-12 and is reported as closed as of 2019-10-17. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420185020M_Closure Letter_10172019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185020M/420185020M_Closure%20Letter_10172019.pdf\n\n420185020M_Closure Letter_10172019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185020M/420185020M_Closure%20Letter_10172019_text.pdf\n\n420185020M_Notice of Amendment_10122018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185020M/420185020M_Notice%20of%20Amendment_10122018.pdf\n\n420185020M_Notice of Amendment_10122018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185020M/420185020M_Notice%20of%20Amendment_10122018_text.pdf\n\n420185020M_Operator Response to Notice_12102018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185020M/420185020M_Operator%20Response%20to%20Notice_12102018.pdf\n\n420185020M_Notice of Amendment_10122018_text.pdf\n\nNOTICE OF AMENDMENT\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-4-2018-5020M\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\ninspected Osage Pipeline’s Pipeline Safety Manual for operations and maintenance in Artesia,\nNew Mexico.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nOsage’s plans or procedures, as described below:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\n\n\n\nOsage Pipeline’s Procedures were found to be inadequate for conducting normal operations and\nmaintenance, and handling abnormal operations and emergencies. Throughout Osage’s Pipeline\nSafety Manual, the procedures replicate and paraphrase the regulations and reference the\nregulations instead of their own processes and procedures. Osage’s procedures must be amended\nto be more specific to the Osage Pipeline system to provide adequate details and not paraphrase\nthe regulations for conducting normal operations and maintenance activities.\nThe following sections of Osage’s Pipeline Safety Manual must be amended:\n1. Section A. HEP-B-195.55-002 Safety Related Condition Reporting to meet the requirements\nof §195.55 Reporting safety-related conditions. Osage’s procedures closely replicate and\nparaphrase the regulations and do not include details specific to the Osage Pipeline system.\nOsage’s procedures should include Operator specific guidance on identifying and reporting safety\nrelated conditions, and not replicate or paraphrase the regulations.\n2. Section A. HEP-B-195.58-002 Report Submission Requirements to meet the requirements of\n§195.58 Report submission requirements. Osage’s procedure replicates the regulations and do not\ninclude adequate guidance to submit safety related condition reports to PHMSA. Osage’s\nprocedures must be amended to be more specific to their actual procedure for submitting safety\nrelated condition reports, provide adequate guidance, and not replicate the regulations.\n3. Section 195.61 National Pipeline Mapping System to meet the requirements of §195.61\nNational Pipeline Mapping System (NPMS). Osage’s procedure replicates the regulations and do\nnot include guidance to provide data to the National Pipeline Mapping System. Osage’s\nprocedures must be amended to be more specific for submitting Osage specific data to NPMS and\nnot replicate the regulations.\n4. Section 7.1.1.1 Maximum Operating Pressure to meet requirements of §195.406 Maximum\noperating pressure. Osage’s procedures closely replicate and paraphrase the regulations and do\nnot include details specific to the Osage Pipeline system. Osage’s procedures must be amended\nto provide specific guidance regarding operating at the maximum operating pressure, and not\nreplicate the regulations.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(5) Analyzing pipeline accidents to determine their causes.\nOsage Pipeline’s procedures were found to be inadequate and must be amended to ensure that the\nPipeline Safety Manual includes procedures for analyzing pipeline accidents to determine their\ncauses. The PHMSA Inspector reviewed Pipeline Safety Manual Section A: HEP-B-195.50-002–\nAccident Report Criteria, Section A: HEP-B-195.60-0002: Operator Assistance in Accident\nInvestigation, and Section 4.2: Emergencies, paragraph 4.2.4. These sections of the Pipeline\n2\n\n\n\nSafety Manual did not include a detailed procedure for analyzing pipeline accidents to determine\nthe root cause of the accident. The PHMSA Inspector also reviewed Form HSE-DOC-020 Incident\nInvestigation and Report Form. The Operator stated that Form HSE-DOC-020 was used to\ndocument root cause analysis for accidents, but this form appears to be a health and environmental\nsafety investigation and reporting form, and does not appear to be adequate to document the results\nof a root cause analysis of a pipeline accident.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(d) Abnormal operation. The manual required by paragraph (a) of this section must\ninclude procedures for the following to provide safety when operating design limits\nhave been exceeded:\n(1) Responding to, investigating, and correcting the cause of:\n(i) Unintended closure of valves or shutdowns;\n(ii) Increase or decrease in pressure or flow rate outside normal operating\nlimits;\n(iii) Loss of communications;\n(iv) Operation of any safety device;\n(v) Any other malfunction of a component, deviation from normal operation,\nor personnel error which could cause a hazard to persons or property.\nOsage Pipeline’s procedures were found to be inadequate and must be amended to ensure that the\nPipeline Safety Manual includes procedures for the abnormal operating conditions (AOCs) listed\nin §195.402(d)(1) to provide safety when operating design limits have been exceeded. The\nPHMSA Inspector reviewed Section 4.1: Abnormal Operation of the Pipeline Safety Manual,\nParagraph 4.1.2: Procedures to follow when abnormal operations occur. This part of the Pipeline\nSafety Manual lists the four AOCs listed in the code, and steps to take in the event they occur. The\nsteps listed are generic and the same for all listed AOCs. These procedural steps should be tailored\nto respond to each specific AOC.\n4. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(d) Abnormal operation. The manual required by paragraph (a) of this section must\ninclude procedures for the following to provide safety when operating design limits\nhave been exceeded:\n(2) Checking variations from normal operation after abnormal operation has\nended at sufficient critical locations in the system to determine continued integrity\nand safe operation.\n(3) Correcting variations from normal operation of pressure and flow equipment\nand controls.\n3\n\n\n\nOsage Pipeline’s procedures were found to be inadequate and must be amended to ensure that the\nPipeline Safety Manual includes procedures for checking and correcting variations from normal\noperations. The PHMSA Inspector reviewed Section 4.1: Abnormal Operation of the Pipeline\nSafety Manual, Paragraph 4.1.2: Procedures to follow when abnormal operations occur. This part\nof the Pipeline Safety Manual lists the four AOCs listed in the code, and steps to take in the event\nthey occur. For each AOC, step (b) Investigate the cause, there is a generic statement that is\nverbatim to the code section §195.402(d)(2). The procedure for checking and correcting variations\nfrom normal operation should be specific to the AOC listed.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 60 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\n4\n\n\n\nIt is requested (not mandated) that Osage Pipeline maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Mary McDaniel, Director, Southwest Region, Pipeline\nand Hazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF-4-2018-5020M and, for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n5\n\n420185020M_Closure Letter_10172019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 17, 2019\nMark Cunningham\nSenior Vice President – Operations and Engineering\nHolly Energy Partners – Operating, L.P.\n2828 N Harwood Suite 1300\nDallas, Texas 75201\nCPF 4-2018-5020M\nDear Mr. Cunningham:\nFrom November 27, 2017 to March 23, 2018, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of procedures for Osage Pipeline (Osage) in\nArtesia, New Mexico. As a result of the inspection, a Notice of Amendment was issed to Osage\non October 12, 2018.\nOsage Pipeline submitted its amended procedures on December 10, 2018. My staff reviewed the\namended procedures and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":12485}