{"operation":"document","citation":"CPF 420185021S","title":"SUNOCO PARTNERS MARKETING & TERMINALS LP — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2018-10-04","effective_on":null,"summary":"OPEN safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185021s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185021s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420185021s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420185021S","body":"Safety Order involving SUNOCO PARTNERS MARKETING & TERMINALS LP. The dataset does not identify a cited regulation for this case. The case was opened on 2018-10-04 and is reported as open. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420185021S_Consent Agreement and Order_03062019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185021S/420185021S_Consent%20Agreement%20and%20Order_03062019.pdf\n\n420185021S_Consent Agreement and Order_03062019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185021S/420185021S_Consent%20Agreement%20and%20Order_03062019_text.pdf\n\n420185021S_Notice of Proposed Safety Order_10042018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185021S/420185021S_Notice%20of%20Proposed%20Safety%20Order_10042018.pdf\n\n420185021S_Notice of Proposed Safety Order_10042018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420185021S/420185021S_Notice%20of%20Proposed%20Safety%20Order_10042018_text.pdf\n\n420185021S_Consent Agreement and Order_03062019_text.pdf\n\nVIA EMAIL AND CERTIFIED MAIL:\nMr. Gregory McIlwain\nChief Executive Officer and Chairman\nEnergy Transfer, L.P.\n8111 Westchester Drive\nDallas, Texas 75225\nRE: In the Matter of Sunoco Partners Marketing & Terminals, L.P. – CPF No. 4-2018-\n5021S\nDear Mr. Warren:\nEnclosed please find the fully executed Consent Agreement and Order that resolves the issues\nunderlying the Notice of Proposed Safety Order issued by PHMSA on October 4, 2018 to your\nsubsidiary, Sunoco Partners Marketing and Terminals, L.P., in the above-referenced proceeding.\nYour receipt of this Consent Agreement and Order constitutes service, as provided under 49\nC.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Ms. Mary McDaniel, Director, Southwest Region, OPS\nMs. Linda Daugherty, Deputy Associate Administrator for Field Operations, Pipeline\nSafety, OPS\nMr. Gregory McIlwain, Senior Vice President, Operations, Energy Transfer, L.P.\nMs. Jennifer Street, Executive Vice President, Energy Transfer, L.P.\nMr. Jonathan Hunt, Vice President, Terminal Operations, Energy Transfer, L.P.\nMr. Mark Milliken, Senior Director, Safety, Process and Pipelin Safety and Asset\nSecurity, Energy Transfer, L.P.\nMr. Todd Nardozzi, Senior Manager, DOT Compliance, Energy Transfer, L.P.\nMs. Annie Cook, Counsel, Troutman Sanders, LLP, 600 Peachtree Street, NE, Suite\n3000, Atlanta, GA 3030\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of )\n)\n)\nSunoco Partners Marketing & Terminals, L.P., a subsidiary of Energy Transfer, L.P. )\nRespondent. )\n)\n)\n) CPF No. 4-2018-5021S\nCONSENT AGREEMENT AND ORDER\nOn October 4, 2018, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued\na Notice of Proposed Safety Order (Notice), to Sunoco Partners Marketing and Terminals, L.P.\n(Sunoco), a wholly owned subsidiary of Energy Transfer, L.P. (Sunoco or Respondent). The\nNotice alleged that conditions exist on certain pipeline facilities owned and operated by Sunoco in\nNederland, Texas that pose a pipeline integrity risk to public safety, property or the environment.\nThe Notice also made preliminary findings of fact and proposed corrective measures.\nOn November 2, 2018, Sunoco responded to the Notice by submitting a timely written response\nand request for an informal consultation pursuant to 49 C.F.R. § 190.239(b)(2). An informal\nconsultation was held on January 30, 2019, between representatives from Sunoco and PHMSA.\nBy entering into this Consent Agreement, Sunoco agrees that no further administrative hearing\nwill be provided for in this matter pursuant to 49 C.F.R. § 190.239(b)(2).\nAccordingly, upon consent and agreement of the Parties and in accordance with 49 C.F.R. §\n190.219, PHMSA and Sunoco hereby agree to the terms and conditions set forth in this Consent\nAgreement and Order (Agreement and Order) to resolve the issues underlying the Notice.\nI. General Provisions\n1. Respondent acknowledges that as the operator of certain pipeline facilities at\nSunoco’s Nederland Terminal that are regulated by PHMSA, Sunoco is subject to the jurisdiction\nof the Federal pipeline safety laws, 49 U.S.C. 60101, et seq., and the regulations and administrative\norders issued thereunder. For purposes of this Agreement, Respondent further acknowledges that\nit received proper notice of PHMSA’s action in this proceeding and that the Notice states claims\nupon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and\norders issued thereunder. The relevant assets that are jurisdictional to PHMSA include, breakout\ntanks and associated in-plant piping.\n\n\n\nCPF No. 4-2018-1002\nPage 2\n2. Respondent does not admit or deny any allegation or conclusion in the Notice, but\nagrees for purposes of this Agreement to complete the corrective actions specified in Section II of\nthis Agreement and Order (Corrective Measures) and to abide by the terms of this Agreement and\nOrder. This Agreement and Order does not constitute a finding of violation of any Federal law or\nregulation and may not be used in any civil or administrative proceeding of any kind as evidence\nor proof of any fact, fault or liability, or as evidence of the violation of any law, rule, regulation or\nrequirement, except in a proceeding to enforce the provisions of this Agreement and Order.\n3. Respondent consents to the issuance of this Agreement and Order, and hereby\nwaives any further procedural requirements with respect to its issuance. Respondent waives all\nrights to contest the adequacy of notice, or the validity of this Agreement and Order, including all\nrights to administrative or judicial hearings, reviews, or appeals, except as set forth herein.\n4. This Agreement and Order shall apply to, and be binding upon, PHMSA and\nSunoco, its officers, directors, and employees, and its successors, assigns, or other entities or\npersons otherwise bound by law. Respondent agrees to provide a copy of this Agreement and\nOrder and any incorporated work plans and schedules to all of Sunoco’s officers, employees, and\nagents whose duties might reasonably include compliance with this Agreement and Order.\n5. For any transfer of ownership or operating responsibility of Sunoco’s pipeline\nfacility in Nederland, Texas occurring during the term of this Agreement and Order, Respondent\nwill provide a copy of this document to the prospective transferee at least 30 days prior to such\ntransfer and simultaneously provide written notice of the prospective transfer to the PHMSA\nSouthwest Region Director (Director).\n6. This Agreement and Order constitutes the final, complete and exclusive agreement\nand understanding between the Parties with respect to the settlement embodied herein. The Parties\nacknowledge that there are no representations, agreements, or understandings relating to settlement\nother than those expressly contained in this Agreement and Order, except that the terms of this\nAgreement and Order may be construed by reference to the Notice.\n7. Nothing in this Agreement and Order affects or relieves Respondent of its\nresponsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49\nU.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this\nAgreement and Order alters PHMSA’s right of access, entry, inspection, and information\ngathering, or PHMSA’s authority to bring enforcement action(s) against Sunoco pursuant to the\nFederal pipeline safety laws, the regulations and orders issued thereunder, or any other provision\nof Federal or State law, including additional enforcement action relating to Sunoco’s regulated\npipeline facilities in Nederland, Texas.\n8. This Agreement and Order does not waive or modify any Federal, State, or local\nlaw or regulation applicable to Respondent’s facility in Nederland, Texas. This Agreement and\nOrder is not a permit, or a modification of any permit, under any Federal, State, or local laws or\nregulations. Sunoco remains responsible for achieving and maintaining compliance with all\napplicable Federal, State, and local laws, regulations and permits.\n\n\n\nCPF No. 4-2018-1002\nPage 3\n9. This Agreement and Order does not create rights in, or grant any cause of action to,\nany third party not party to this Agreement and Order. U.S. Department of Transportation and\nPHMSA are not liable for any injuries or damages to persons or property arising from acts or\nomissions of Respondent or its officers, employees, or agents carrying out the work required by\nthis Agreement and Order. Sunoco agrees to hold harmless U.S. Department of Transportation,\nPHMSA, its officers, employees, agents, and representatives from any and all causes of action\narising from any acts or omissions of Respondent or its contractors in carrying out any work\nrequired by this Agreement and Order.\n10. This Agreement and Order resolves the underlying issues in the Notice. This\nAgreement and Order makes no findings of violation.\n11. Upon the issuance of the Agreement and Order, Sunoco agrees to perform the\nCorrective Measures set forth below.\nII. Corrective Measures\n12. Complete Inventory. Within 90 days after this Agreement and Order is issued,\nRespondent must submit to the Director a complete inventory of all tanks and piping subject to\nregulatory oversight under 49 CFR Part 195.\n13. Remedial Work Plan. Within 120 days after this Agreement and Order is issued,\nRespondent must submit to the Director for approval, a written remedial work plan (Plan) that\nincludes corrective measures. Once approved, the Plan shall automatically become incorporated\ninto this Order. The Plan must include provisions to:\na. Determine or confirm the maximum operating pressure (MOP) for all regulated\npiping and pipeline components consistent with § 195.406.\ni. Identify all regulated piping segments and the methods used to safely\nvalidate the MOP of those segments.\nii. Identify measures Sunoco will take to ensure the continued integrity of all\nregulated piping and components as the MOP verification is in progress.\nThe Plan must address the incorporation of the regulated pipeline facilities\nat the Nederland Terminal in Sunoco’s spill response plan, as appropriate,\nin accordance with 49 C.F.R. Part 194.\nb. Install overpressure safety equipment, as appropriate, on all regulated pipeline\ncomponents consistent with § 195.428.\nComplete inspections on regulated tanks consistent with § 195.432. The Plan must\ninclude a risk based prioritization schedule to complete the tank inspections and to\ncomplete mandatory repairs prior to returning the tanks to service.\nd. Install cathodic protection on designated regulated underground piping and\ncomponents as appropriate, consistent with § 195.563.\n14. Timeline. The Plan must include a proposed timeline for completion of the\ncorrective measures required in Paragraph 13.\nc.\n\n\n\nCPF No. 4-2018-1002\nPage 4\n15. Procedures. Upon request, and consistent with existing 49 C.F.R. Part 195\nregulations, Respondent must submit to the Director any written procedures that will be used to\ncomplete the actions required by the Plan.\n16. Plan Revisions. Respondent must revise the Plan as necessary to incorporate new\ninformation obtained during the evaluations and associated remedial activities. Respondent must\nsubmit any such revisions to the Director for approval prior to implementation and the Director\nshall respond within a reasonable time.\n17. Plan Implementation. The Plan must be implemented as it is approved by the\nDirector, including any revisions to the Plan. Results of actions taken in accordance with the\napproved Plan must be available for review by PHMSA. The Director may approve Plan elements\nincrementally, within a reasonable time.\n18. Integrity Management Program. Within 30 days after this Order is issued,\nRespondent must submit documentation to the Director that confirms that regulated pipeline\nfacilities at the Nederland Terminal have been incorporated into an Integrity Management\nProgram, consistent with § 195.452.\n19. Reporting. Reports must be submitted to the Director on a quarterly basis and must,\n1) include all available data and results of the testing and evaluations required by this Order, and\n2) describe the progress of all actions being undertaken pursuant to this Order. This schedule may\nbe extended by written agreement with the Director. A final summary report of work performed\non items required by this Order must be submitted to the Director within 30 days of the completion\nof the last action performed by Sunoco that is set forth in this Order.\n20. Voluntary Submission. It is requested (not mandated) that Sunoco maintain\ndocumentation of the safety improvement costs associated with fulfilling this Order and submit\nthe total to the Director. It is requested that these costs be reported in two categories: 1) total cost\nassociated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline infrastructure.\n21. Special Permits. If Respondent’s Plan or revisions to the Plan at any time includes\napplying for a special permit per § 190.341, a description must be included of any anticipated\npermits as well as a proposed timeline for all application submissions. Respondent must respond\nto any information requests made by PHMSA pursuant to such applications throughout the special\npermit application process within 30 days of each request. The status of special permit applications\nmade pursuant to the Plan must be included in the quarterly reports (see Paragraph 19). For any\nspecial permit applications filed under the Plan, Respondent agrees to cooperate fully in the special\npermit process per § 190.341. The Director has the discretion to enforce this Order and/or the\napplicable pipeline safety regulations consistent with 49 C.F.R. Parts 190 and 195, subject to\nextensions of time granted under Section IV. and modifications of this Agreement approved under\nSection IX. If any special permit application included in the Plan is denied by PHMSA or\n\n\n\nCPF No. 4-2018-1002\nPage 5\nwithdrawn by Respondent, Respondent must amend its Plan accordingly and submit it to Director\nwithin 30 days of the denial for approval.\nIII. Approvals\n22. With respect to the submissions under this Agreement and Order requiring the\napproval of the Director, the Director shall act promptly to: (a) approve, in whole or part, the\nsubmission; (b) approve the submission on specified conditions; (c) disapprove, in whole or in\npart, the submission, directing that Sunoco modify the submission; or (d) any combination of the\nabove. In the event of approval or approval upon conditions, Respondent will proceed to take all\naction required by the submission, as approved or conditioned by the Director. If the Director\nconditions or disapproves all or any portion of a submission, the Director shall in writing state with\nspecificity the basis for the decision and Respondent will resubmit it to address the stated issues.\nIf a resubmitted item is disapproved in whole or in part, the Director may again require Respondent\nto address the stated issues in accordance with the foregoing procedure, and the Parties may\nproceed to dispute resolution according to Section V. below.\nIV. Extensions of Time\n23. The Director may grant an extension of time for compliance with any of the terms\nof this Agreement and Order upon a written request submitted at least 15 days prior to a stated\ndeadline, demonstrating good cause for an extension. The Director shall respond within a\nreasonable time to any request for extension of time.\nV. Dispute Resolution\n24. The Director and Sunoco will attempt to resolve informally any disputes arising\nunder this Agreement and Order, including but not limited to any decision of the Director. The\nDirector and Sunoco will first confer in an effort to resolve any dispute. If the Director and Sunoco\nare unable to resolve informally the dispute within 10 calendar days, Sunoco may request in\nwriting, within 10 days, a written determination resolving the dispute by the Associate\nAdministrator for Pipeline Safety, PHMSA. Along with its request, Sunoco will provide the\nAssociate Administrator with all information Sunoco believes is relevant to the dispute. If the\nrequest is submitted as provided herein, the Associate Administrator will promptly issue a written\ndetermination that shall be final. Decisions of the Associate Administrator will constitute final\nagency action, and are subject to judicial appeal. The existence of a dispute and PHMSA’s\nconsideration of matters placed in dispute shall not excuse, toll, or suspend any term or timeframe\nfor completion of any work to be performed under this Agreement and Order during the pendency\nof the dispute resolution process, except as agreed by the Director or the Associate Administrator\nin writing.\nVI. Enforcement\n25. This Agreement and Order may be enforced by PHMSA pursuant to enforcement\nauthorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All\ndeadlines set forth or referenced in this Agreement and Order will be automatically incorporated\n\n\n\nCPF No. 4-2018-1002\nPage 6\ninto this Agreement and Order and, subject to Respondent’s right to request an extension of time\nunder Section IV and modify this Agreement under Section IX, are enforceable in the same manner.\nVII. Recordkeeping and Information Disclosure\n26. Except as otherwise provided herein, Sunoco agrees to maintain records\ndemonstrating compliance with all requirements of this Agreement and Order for a period of at\nleast five years.\n27. For any reports, plans, or other deliverables required to be submitted to PHMSA\npursuant to this Agreement and Order, Respondent may assert a claim of business confidentiality\nor other protections applicable to the release of information by PHMSA, covering part or all of the\ninformation required to be submitted to PHMSA pursuant to this Agreement and Order in\naccordance with 49 C.F.R. Part 7 and 49 C.F.R. § 190.343. Respondent must mark the claim of\nconfidentiality in writing on each page, and include a statement specifying the grounds for each\nclaim of confidentially. PHMSA will determine the release of any information submitted pursuant\nto this Agreement and Order in accordance with 49 C.F.R. Part 7, the Freedom of Information Act,\n5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.\nVIII. Effective Date\n28. The term “Effective Date,” as used herein, is the date on which this Agreement and\nOrder is fully executed by the Parties. Unless specified to the contrary, all deadlines for actions\nrequired by this Agreement and Order run from the Effective Date.\nIX. Modification\n29. The terms of this Agreement and Order may be modified by mutual agreement of\nthe Parties. Such modifications must be in writing and signed by both parties.\nX. Termination\n30. This Agreement and Order terminates upon completion of Section II and all\ncorrective measures, as determined by the Director. Sunoco may request written confirmation\nfrom PHMSA when this Agreement and Order is terminated and the Director will provide such\nconfirmation within a reasonable time. Nothing in this Agreement and Order prevents Respondent\nfrom completing any of the obligations earlier than the deadlines provided for in this Agreement\nand Order.\nXI. Ratification\n31. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and Order and to execute and legally bind\nsuch party to this document.\n\n\n\nCPF No. 4-2018-1002\nPage 7\n32. The Parties hereby agree to all conditions and terms of this Agreement and Order.\nFor Sunoco Partners Marketing & Terminals, LP, as subsidiary of Energy Transfer, LP\n(Respondent):\n___________________________________\n________________________\nDate\nFor PHMSA:\n___________________________________\nAlan K. Mayberry\nAssociate Administrator for Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nU.S. Department of Transportation\n________________________\nDate\n\n420185021S_Notice of Proposed Safety Order_10042018_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 4, 2018\nRyan Coffey\nExecutive Vice President of Operations\nSunoco Marketing & Terminals, L.P.\n800 East Sonterra Blvd.\nSan Antonio, Texas 78258\nCPF 4-2018-5021S\nDear Mr. Coffey:\nEnclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case.\nThe Notice proposes that you take certain measures with respect to your Gulf Coast Terminal to\nensure pipeline safety. Your options for responding are set forth in the Notice. Your receipt of\nthe Notice constitutes service of that document under 49 C.F.R. § 190.5.\nWe look forward to a successful resolution to ensure pipeline safety. Please direct any\nquestions on this matter to me at 713-272-2859.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Notice of Proposed Safety Order\ncc: Mr. Alan K. Mayberry, Associate Administrator for Pipeline Safety, OPS\nMs. Linda Daugherty, Deputy Associate Administrator for Field Operations, OPS\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nSOUTHWEST REGION\nHOUSTON, TEXAS 77074\n__________________________________________\n)\nIn the Matter of )\n)\nSunoco Partners Marketing & Terminals, L.P. ) CPF No. 4-2018-5021S\n)\nRespondent. )\n__________________________________________)\nNOTICE OF PROPOSED SAFETY ORDER\nBackground and Purpose\nPursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) has initiated an investigation of the safe operation of the\nSunoco Partners Marketing &Terminals, L.P.’s (Sunoco) Gulf Coast Terminal in Nederland,\nTexas.\nAs a result of the investigation, it appears that conditions exist on your pipeline facilities that pose\na pipeline integrity risk to public safety, property or the environment. Pursuant to 49 U.S.C.\n§ 60117(l), PHMSA issues this Notice of Proposed Safety Order, notifying you of the preliminary\nfindings of the investigation, and proposing that you take measures to ensure that the public,\nproperty, and the environment are protected from the potential risk.\nFor purposes of this Notice, the term “Affected Breakout Tank Facility” means the 71 crude oil\nstorage tanks and associated piping identified as PHMSA regulated within the Gulf Coast\nTerminal.\nPreliminary Findings\n• The Gulf Coast Terminal (Terminal), is entirely located in Jefferson County, Texas at 2200\nNorth Highway 347, Nederland, Texas 77627. The facility has a total of 1301 storage tanks\nand has associated facility piping of varying outside diameter. The approximate storage\ncapacity within the terminal is 28 million barrels of crude oil and one million barrels of\nnatural gas liquids. The Terminal can receive product via ship or pipeline, and deliver\n1 SLP Response to SW Region RFI 3/17/2017\n\n\n\n2\nproduct through barges, third-party pipelines, and ships. The Terminal has its own control\ncenter.2 The Terminal serves as a hub for crude oil transportation in the Gulf Coast markets.\n• The Terminal stores and transports crude oil of various quality, natural gas liquids, and\nother refined products. The regulated storage tanks exclusively transport crude oil.\n• The Terminal is located on the Gulf Coast, a subtropical climate, subject to tropical storms\nand hurricanes.\n• The Terminal is intersected by Drinking Water High Consequence Areas (HCA), and\nbounded by High Populated Areas (HCA).\n• The Terminal is bounded by the City of Nederland, Texas to the South, and the Neches\nRiver to the North. The surrounding population density is 959/sq. mi.3\n• The conditions described above are not restricted to a certain area of the Terminal, but\napply to all pipeline components within the facility that are determined to be in\ntransportation.\n• There is no record of a PHMSA OPS inspection on the Affected Breakout Tank Facility\noperated by Sunoco prior to an August 12, 2016 event.\n• During the review of the accident that occurred at the Terminal on August 12, 2016, the\nSouthwest Region discovered that Sunoco was operating tanks and piping that were not\nproperly identified as jurisdictional under Part 195. Sunoco provided documents\nreviewed by OPS staff that indicated portions of the Terminal considered by Sunoco to be\nnon-jurisdictional were in fact subject to pipeline safety regulations. The Region prepared\nan enforcement action against Sunoco Pipeline, L.P. (CPF No. 4-2017-5011)4\n.\n• Subsequent to this event, Sunoco communicated their uncertainty regarding the application\nof Part 195 within the Terminal to PHMSA, using a previous assessment concluding only\nfive storage tanks were subject to PHMSA safety regulations.5\n• After an investigation and discussion with PHMSA, Sunoco has identified 71 storage tanks\nand associated piping (Affected Breakout Tank Facility) within the Terminal that are\nsubject to PHMSA regulation pursuant to 49 C.F.R. Part 195.\n2 Sunoco Logistics Partners L.P Form 10-K 2016.\n3 https://echo.epa.gov/detailed-facility-report?fid=110008146158\n4 4-2017-5011, Final Order issued June 15, 2018 found that Sunoco violated 49 CFR 195.54(a) and 195.52(a)\nfollowing a failure within the Terminal August 12, 2016. The accident resulted in a release of approximately 4.2\ngallons on crude and four injuries to contract workers. The Compliance Order directed Sunoco to submit a PHMSA\nForm PHMSA F 7000.1 for the accident, investigative reports and corrective actions identified as a result of the\ninvestigation.\n5 Sunoco Partners Marketing & Terminals Letter to OPS Counsel (August 23, 2016).\n\n\n\n3\n• Sunoco provided information to the Region indicating a significant portion of regulated\npiping within the Terminal has not been subjected to a pressure test. In the absence of\nhistorical records, the maximum operating pressure for PHMSA regulated pipeline\ncomponents can only be properly established in accordance with § 195.406 through the\napplication of a pressure test.\n• The majority of the storage tanks were constructed to the API Standard 650, or its\npredecessor. Station piping is located both underground and aboveground. The Terminal\nhas expanded in capacity throughout its history with 39 of the 71 storage tanks constructed\nafter January 1, 2000.\n• As Sunoco had not reported failures subject to § 195.50 prior to September 2017, relevant\npipeline accident history is limited to releases reported by other regulated second and third-\nparty pipeline operators whose facilities originate or terminate within the Terminal. Since\n2002, at least seven accidents or incidents have been reported to PHMSA, occurring on\nregulated pipeline facilities operated within the terminal since 2002, but not necessarily on\nassets operated by Sunoco. Reportedly, a release occurred in January 2016 due to improper\npipe support6\n. The August 2016 accident within the facility involved the release of crude\noil and injury to four contract workers.\n• The continued operation of pipelines and storage tanks in transportation without the\nhistorical application of pipeline safety regulations presents an elevated risk of harmful\nconsequence to the safety of personnel, potential impact to the surrounding environment\nand property. An assessment of Terminal’s compliance with applicable regulations is\nnecessary to conclude that the likelihood of the pipeline and storage tanks serviceability is\nat risk.\nProposed Issuance of Safety Order\nSection 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after\nreasonable notice and the opportunity for a hearing, requiring corrective measures, which may\ninclude physical inspection, testing, repair, or other action, as appropriate. The basis for making\nthe determination that a pipeline facility has a condition or conditions that pose a pipeline integrity\nrisk to public safety, property, or the environment is set forth both in the above-referenced statute\nand 49 C.F.R. § 190.239, a copy of which is enclosed.\nAfter evaluating the foregoing preliminary findings of fact and considering the age of the pipe\ninvolved, the manufacturer, the hazardous nature of the product transported and the pressure\nrequired for transporting such product, the characteristics of the geographical areas where the\npipeline facility is located, and the likelihood that the conditions could worsen or develop on other\nareas of the pipeline and potentially impact its serviceability, it appears that the continued\noperation of the affected pipeline without corrective measures would pose a pipeline integrity risk\nto public safety, property, or the environment.\n6 Executive Summary – Enforcement Matter – Case No. 52004\n\n\n\n4\nAccordingly, PHMSA issues this Notice of Proposed Safety Order to notify Sunoco of the\nproposed issuance of a safety order and to propose that Sunoco take measures specified herein to\naddress the potential risk.\nProposed Corrective Measures\nPursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to Sunoco\nPartners Marketing & Terminals, L.P. a safety order incorporating the following remedial\nrequirements with respect to the Affected Breakout Tank Facility:\n1. Within 90 days after a safety order is issued, develop and submit to the Director for\napproval a written remedial work plan that includes corrective measures. The work plan\n(Plan) must include provisions to:\na. Provide a complete inventory of all tanks and piping subject to regulatory oversight\nunder49 CFR Part 195.\nb. Establish or confirm the maximum operating pressure for regulated piping and\npipeline components in accordance with § 195.406. The Plan must:\ni. Identify all piping segments and the methods used to safely validate the\nMOP.\nii. Provide for continued integrity of piping as the schedule to establish an\nMOP progresses.\nc. Install overpressure safety equipment, as appropriate, on all regulated pipeline\ncomponents.\nd. Complete inspections on tanks in accordance with § 195.432. The Plan must\ninclude a risk based prioritization schedule to complete the above inspections, and\ncomplete mandatory repairs prior to returning the tank to service.\ne. Install cathodic protection on designated underground piping and components as\nappropriate, in accordance with § 195.563.\nf. Incorporate the Nederland Terminal, as appropriate, into an Integrity Management\nPlan per § 195.452 by September 6, 2018.\n2. The Plan must include proposed timeline for completion of the actions required by\nparagraphs (1) of this Item.\n3. Submit to the Director, all written procedures that will be used to complete the\nrequirements of the Safety Order.\n4. Revise the Plan as necessary to incorporate new information obtained during the\nevaluations and associated remedial activities. Submit any such plan revisions to the\n\n\n\n5\nDirector for prior approval. The Director may approve plan elements incrementally.\nThe remedial work plan shall become incorporated into the safety order.\n5. Implement the work plan as it is approved by the Director, including any revisions to the\nplan. Results of actions taken in accordance with the approved plan must be available for\nreview by PHMSA or its representative.\n6. Submit quarterly reports to the Director that: (1) include available data and results of the\ntesting and evaluations required by the safety order; and (2) describe the progress of the\nrepairs and other remedial actions being undertaken.\n7. A final summary report of work performed on the above items must be submitted to the\nDirector within 30 days of the completion of the last action performed by Sunoco that is\nset forth in this Safety Order.\n8. The Director may grant an extension of time for compliance with any of the terms of the\nsafety order upon a written request timely submitted demonstrating good cause for an\nextension.\n9. Sunoco may appeal any decision of the Director to the Associate Administrator for\nPipeline Safety. Decisions of the Associate Administrator shall be final.\n10. It is requested (not mandated) that Sunoco Partners Marketing & Terminals, L.P.\nmaintain documentation of the safety improvement costs associated with fulfilling this\nSafety Order and submit the total to the Director, Southwest Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be reported\nin two categories: 1) total cost associated with preparation/revision of plans, procedures,\nstudies and analyses, and 2) total cost associated with replacements, additions and other\nchanges to pipeline infrastructure.\nThe actions proposed by this Notice of Proposed Safety Order are in addition to and do not waive\nany requirements that apply to Sunoco’s pipeline system under 49 C.F.R. Parts 190 through 199,\nunder any other order issued to Sunoco under authority of 49 U.S.C. § 60101 et seq., or under any\nother provision of Federal or state law.\nAfter receiving and analyzing additional data in the course of this proceeding and implementation\nof the work plan, PHMSA may identify other safety measures that need to be taken. In that event,\nSunoco will be notified of any proposed additional measures and, if necessary, amendments to the\nwork plan or safety order.\nResponse to this Notice\nIn accordance with § 190.239, you have 30 days following receipt of this Notice to submit a\nwritten response to the official who issued the Notice. If you do not respond within 30 days, this\nconstitutes a waiver of your right to contest this Notice and authorizes the Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to\n\n\n\n6\nyou and to issue a Safety Order. In your response, you may notify that official that you intend to\ncomply with the terms of the Notice as proposed, or you may request that an informal\nconsultation be scheduled (you will also have an opportunity to request an administrative hearing\nbefore a safety order is issued). Informal consultation provides you with the opportunity to\nexplain the circumstances associated with the risk condition(s) alleged in the notice and, as\nappropriate, to present a proposal for a work plan or other remedial measures, without prejudice\nto your position in any subsequent hearing.\nIf you and PHMSA agree within 30 days of informal consultation on a plan and schedule for you\nto address each identified risk condition, the parties may enter into a written consent agreement,\nin which case PHMSA would then issue an administrative Consent Order incorporating the terms\nof the agreement. If a consent agreement is not reached, or if you have elected not to request\ninformal consultation, you may request an administrative hearing in writing within 30 days\nfollowing receipt of the Notice or within 10 days following the conclusion of an informal\nconsultation that did not result in a consent agreement, as applicable. Following a hearing, if the\nAssociate Administrator finds the facility to have a condition that poses a pipeline integrity risk\nto the public, property, or the environment in accordance with § 190.239, the Associate\nAdministrator may issue a final Safety Order.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust 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).\nIn your correspondence on this matter, please refer to CPF 4-2018-5021S and for each document\nyou submit, please provide a copy in electronic format whenever possible.\n___________________________________\nMary L. McDaniel, P.E. Director, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nOctober 4, 2018__\nDate issued","truncated":false,"body_characters":36373}