{"operation":"document","citation":"CPF 420195011M","title":"DELEK LOGISTICS OPERATING, LLC. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-07-02","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(c)(2), 195.402(c)(3), 195.403(a), 195.403(b), 195.452(h)(1)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195011m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195011m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195011m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420195011M","body":"Notice of Amendment involving DELEK LOGISTICS OPERATING, LLC.. PHMSA's enforcement data identifies the cited regulations as 195.402(c)(2),  195.402(c)(3),  195.403(a),  195.403(b),  195.452(h)(1)(ii). The case was opened on 2019-07-02 and is reported as closed as of 2019-12-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420195011M_Closure Letter_12302019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195011M/420195011M_Closure%20Letter_12302019.pdf\n\n420195011M_Closure Letter_12302019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195011M/420195011M_Closure%20Letter_12302019_text.pdf\n\n420195011M_Notice of Amendment_07022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195011M/420195011M_Notice%20of%20Amendment_07022019.pdf\n\n420195011M_Notice of Amendment_07022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195011M/420195011M_Notice%20of%20Amendment_07022019_text.pdf\n\n420195011M_Operator Response to Notice_07312019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195011M/420195011M_Operator%20Response%20to%20Notice_07312019.pdf\n\n420195011M_Closure Letter_12302019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 30, 2019\nJohn Warren\nVice President Operations\nDelek Logistics Operating, LLC\n1001 School Street\nEl Dorado, Arkansas 71730\nCPF 4-2019-5011M\nDear Warren:\nOn multiple dates between December 5, 2017 and March 26, 2018, a representative from the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of\n49 United States Code, conducted an on-site pipeline safety inspection of Delek Logistics\nOperating, LLC (Delek) procedures in El Dorado, Arkansas. As a result of the inspection, Delek\nwas issued a Notice of Amendment on July 2, 2019, which proposed amendment of your\nprocedures.\nDelek submitted its amended procedures on August 5, 2019 and December 5, 2019, respectively.\nMy staff reviewed the amended procedures, and it appears that the inadequacies outlined in this\nNotice of Amendment have 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\n\n420195011M_Notice of Amendment_07022019_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 2, 2019\nJohn Warren\nVice President Operations\nDelek Logistics Operating, LLC\n1001 School Street\nEl Dorado, Arkansas 71730\nCPF 4-2019-5011M\nDear Mr. Warren:\nOn multiple dates between December 5, 2017 and March 26, 2018, representatives of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United\nStates Code inspected Delek Logistics Operating, LLC’s (Delek) procedures for maintenance and\noperation, integrity management, and control management in El Dorado, Arkansas.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nDelek’s plans or procedures, as described below:\n1. §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(2) Gathering of data needed for reporting accidents under subpart B of this part in\na timely and effective manner.\n\n\n\nDelek's procedure for “Immediate Notice of Certain Accidents” was found to be inadequate. The\nprocedure failed to state that immediate notice of events described in §195.52(a) will be made no\nlater than one hour after confirmed discovery.\nAlso, Delek’s procedure did not state that within 48 hours after the confirmed discovery of an\naccident, to the extent practicable, an operator must revise or confirm its initial telephonic notice\nas required by §195.52(d).\nDelek’s O&M manual LTP-OP-070.01 (Revision date: March 30, 2016), Sections 6.2 and 6.3.7\nstates:\n“Telephonic notices of an accident by the operator are required at the earliest possible moment\nwithin (2) hours after discovery of a release of a hazardous liquid in any of the events described\nbelow. Notice is required for any of the following failures.”\n“At the earliest practicable moment an additional telephonic report to NRC should be made if\nsignificant new information becomes available during the emergency response phase of an event”\nDelek must amend Sections 6.2 and 6.3.7 of their O&M manual LTP-OP-070.00 to address the\nrequirements of 195.52 (a) and (d).\n2. §195.452 Pipeline integrity management in high consequence areas.\n(h)(1) General requirements. An operator must take prompt action to address all\nanomalous conditions the operator discovers through the integrity assessment or\ninformation analysis. In addressing all conditions, an operator must evaluate all\nanomalous conditions and remediate those that could reduce a pipeline's integrity.\nAn operator must be able to demonstrate that the remediation of the condition will\nensure the condition is unlikely to pose a threat to the long-term integrity of the\npipeline. An operator must comply with §195.422 when making a repair.\n(ii) Long-term pressure reduction. When a pressure reduction exceeds 365 days, the\noperator must notify PHMSA in accordance with paragraph (m) of this section and\nexplain the reasons for the delay. An operator must also take further remedial action\nto ensure the safety of the pipeline.\nDelek’s written Integrity Management procedure for “Notification to OPS” was found to be\ninadequate. The Integrity Management plan failed to include the requirement to notify PHMSA\nwhen a pressure reduction exceeds 365 days as required by 195.452(b)(1)(ii).\n2\n\n\n\nDelek’s Integrity Management plan (Revision date: December 17, 2013), Section 6.7, states:\n“General: Required notifications to the OPS will be submitted for the following reasons:\n Intent to use technology other that ILI or hydrotesting to perform an assessment\n Inability to meet required remediation schedule\n Re-assessment interval to exceed 5 years.”\nDelek must amend the procedure contained in Section 6.7 of its Integrity Management plan, to\ninclude the requirement to notify PHMSA when a pressure reduction exceeds 365 days.\n3. §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(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nDelek’s O&M procedure LTP-OP-117.00 “Repair Criteria Outside §195.452 Regulated Areas”\nwas found to be inadequate. The O&M procedure did not state what repair method would be\napplied to address anomalous conditions discovered through integrity assessment or information\nanalysis.\nDelek’s O&M manual LTP-OP-117.00 (Revision date: March 29, 2016), Section 6.0 states:\n“….. Segments of pipes that are assessed by means of inline inspection device (ILI) but not subject\nto part §195.452 rules shall be evaluated to determine if there are any threats to the pressure\ncontaining capability of the pipe, both immediate and future….”\nDelek’s process did not identify any acceptable method that reliable engineering test and analyses\nshow can permanently restore the serviceability of the pipe, both in HCA and non-HCA areas.\nUnder §195.452(h)(1), an operator must be able to demonstrate that the remediation of the\ncondition will ensure that the condition is unlikely to pose a threat to the long-term integrity of the\npipeline. Also, §195.585(a)(2) requires a process to repair the pipe by a method that reliable\nengineering tests and analyses show can permanently restore the serviceability of the pipe.\nDelek must amend Section 6.0 of its O&M procedure (LTP-OP-117.00), to include list of\nidentified acceptable repair methods that are appropriate for each type of defect, both in HCA and\nnon-HCA regulated areas.\n3\n\n\n\n4. §195.403 Emergency response training.\n(a) Each operator shall establish and conduct a continuing training program to\ninstruct emergency response personnel to:\n(1) Carry out the emergency procedures established under 195.402 that relate to their\nassignments;\n(2) Know the characteristics and hazards of the hazardous liquids or carbon dioxide\ntransported, including, in case of flammable HVL, flammability of mixtures with air,\nodorless vapors, and water reactions;\n(3) Recognize conditions that are likely to cause emergencies, predict the\nconsequences of facility malfunctions or failures and hazardous liquids or carbon\ndioxide spills, and take appropriate corrective action;\n(4) Take steps necessary to control any accidental release of hazardous liquid or\ncarbon dioxide and to minimize the potential for fire, explosion, toxicity, or\nenvironmental damage; and\n(5) Learn the potential causes, types, sizes, and consequences of fire and the\nappropriate use of portable fire extinguishers and other on-site fire control\nequipment, involving, where feasible, a simulated pipeline emergency condition.\n(b) At the intervals not exceeding 15 months, but at least once each calendar year,\neach operator shall:\nDelek failed to establish an adequate procedure for conducting a continuing training program to\ninstruct their emergency response personnel on how to carry out the emergency procedures\nestablished under §195.402 that relates to their assignments.\nDelek’s O&M manual LTP-OP-113, Section 6.0 (Issue date: February 11, 2015) states:\n“…. The program addresses operation, maintenance, and emergency procedures, knowledge of\nliquids being transported and hazardous conditions these liquids could cause, recognizing\nconditions that could cause emergencies or malfunctions and corrective actions needed in cases\nof malfunctions of any kind along the pipeline…”\nThe procedure stated in Section 6.0 of Delek’s personnel training manual, LTP-OP 113 lacks\nspecificity on how emergency response personnel are being trained to carry out the emergency\nresponse procedures that relates to their assignments. Delek must amend its procedure to include\na detailed process for training emergency response personnel to carry out the emergency response\nprocedures that relates to their assignments.\n4\n\n\n\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 30 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.\nIt is requested (not mandated) that Delek maintain documentation of the safety improvement costs\nassociated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures)\nand submit the total to Mary L. McDaniel, P.E., Director, Southwest Region, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 4-2019-5011M 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","truncated":false,"body_characters":12989}