{"operation":"document","citation":"CPF 420195012","title":"DELEK LOGISTICS OPERATING, LLC. — Notice of Probable Violation","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 probable violation citing 195.308, 195.310(a), 195.403(b), 195.446(h)(5), 195.507.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420195012","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420195012","body":"Notice of Probable Violation involving DELEK LOGISTICS OPERATING, LLC.. PHMSA's enforcement data identifies the cited regulations as 195.308,  195.310(a),  195.403(b),  195.446(h)(5),  195.507. The case was opened on 2019-07-02 and is reported as closed as of 2020-03-10. Proposed civil penalty: $89,800. Assessed civil penalty: $89,800. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420195012_Closure Letter_03102020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Closure%20Letter_03102020.pdf\n\n420195012_Closure Letter_03102020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Closure%20Letter_03102020_text.pdf\n\n420195012_Final Order_11202019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Final%20Order_11202019.pdf\n\n420195012_Final Order_11202019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Final%20Order_11202019_text.pdf\n\n420195012_NOPV PCP PCO_07022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_NOPV%20PCP%20PCO_07022019.pdf\n\n420195012_NOPV PCP PCO_07022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_NOPV%20PCP%20PCO_07022019_text.pdf\n\n420195012_Operator Response to Notice_08272019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Operator%20Response%20to%20Notice_08272019.pdf\n\n420195012_Final Order_11202019_text.pdf\n\nNovember 20, 2019\nMr. Ezra Uzi Yemin\nPresident and Chief Executive Officer\nDelek Logistics Partners, LP\n12700 Park Central Drive, Suite 1500\nDallas, Texas 72521\nRe: CPF No. 4-2019-5012\nDear Mr. Yemin:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation against your subsidiary, Delek Logistics Operations, LLC, and finds that the civil\npenalty amount of $89,800 has been paid in full. When the terms of the compliance order are\ncompleted, as determined by the Director, Southwest Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is effective upon the date of mailing, as\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA\nMr. Michael Odigie, Vice President, Asset Integrity, Delek Logistics Partners, LP\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n__________________________________________\nIn the Matter of )\nDelek Logistics Operating, LLC, ) CPF No. 4-2019-5012\na subsidiary of Delek Logistics Partners, LP, )\n)\n)\n)\nRespondent. )\n__________________________________________)\nFINAL ORDER\nOn July 2, 2019, pursuant to 49 C.F.R. § 190.207, the Director, Southwest Region, Office of\nPipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Delek Logistics\nOperating, LLC, a wholly-owned subsidiary of Delek Logistics Partners, LP (Respondent). The\nNotice proposed finding that Respondent had violated the pipeline safety regulations in 49\nC.F.R. Part 195 and proposed a civil penalty of $89,800. The Notice also proposed certain\nmeasures to correct the violations. Respondent did not contest the allegations of violation or\ncorrective measures and paid the proposed civil penalty on August 2, 2019. In accordance with\n§ 190.208(a)(1), such payment authorizes the entry of this final order.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice:\n49 C.F.R. § 195.446(h) (Item 1) ─ Respondent failed to review the content of its\ncontroller training program to identify potential improvements, at least once each\ncalendar year but at intervals not to exceed 15 months.\n49 C.F.R. § 195.403(b) (Item 2) ─ Respondent failed to review with its personnel\ntheir performance in meeting the objectives of the emergency response training\nprogram set forth in its personnel training manual and to make appropriate\nchanges to the emergency response training program as necessary to ensure that it\nis effective, at intervals not exceeding 15 months but at least once each calendar\nyear.\n49 C.F.R. § 195.308 (Item 3) ─ Respondent failed to conduct and maintain\nrecords of pressure tests associated with tie-ins.\n49 C.F.R. § 195.507 (Item 4) ─ Respondent failed to maintain records\ndemonstrating that its personnel were qualified to perform covered tasks.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\n\n\n\nCPF No. 4-2019-5012\nPage 2\naction taken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is\nassessed the proposed civil penalty amount of $89,800, which Respondent has already paid in\nfull.\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nactions proposed in the enclosed Notice to correct the violations. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof ordered actions, Respondent may request that the Director close the case. Failure to comply\nwith this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nNovember 20, 2019\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420195012_Closure Letter_03102020_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 10, 2020\nEzra Uzi Yemin\nPresident and Chief Executive Officer\nDelek Logistics Partners, LP\n12700 Park Central Drive, Suite 1500\nDallas, Texas 72521\nCPF 4-2019-5012\nDear Mr. Yemin:\nOn November 2, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Delek Logistics Operating, LLC a Final Order in the above-referenced case. This Order\nincluded a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation you provided and confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nMary L. McDaniel, P.E\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n\n420195012_NOPV PCP PCO_07022019_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\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 4-2019-5012\nDear Mr. Warren:\nOn multiple dates between December 5, 2017 and March 26, 2018, representatives of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\npursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected your Magnolia Pipeline\nsystem in El Dorado, Arkansas.\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:\n\n\n\n1. §195.446 Control room management.\n(h) Training. Each operator must establish a controller training program and review\nthe training program content to identify potential improvements at least once each\ncalendar year, but at intervals not to exceed 15 months. An operator's program must\nprovide for training each controller to carry out the roles and responsibilities defined\nby the operator. In addition, the training program must include the following\nelements:\n(5) For pipeline operating setups that are periodically, but infrequently used,\nproviding an opportunity for controllers to review relevant procedures in advance of\ntheir application; and\nDelek failed to review the content of its controller training program to identify potential\nimprovements, at least once each calendar year, but at intervals not to exceed 15 months.\nDelek’s procedure LTP-DP-001.06: ‘DKL Control Room Management Plan Manual’ (Revision\ndate: July 11, 2014), requires Delek to conduct an annual review of its controller training program.\nDelek’s CRM manual LTP-DP-001.06, Section 9, Subsections 4.12.1, 4.12.2, 4.12.3 states:\n4.12.1The training program, including content, shall be evaluated at least once each\ncalendar year, but at intervals not to exceed 15 months\n4.12.2 An assessment shall be developed and used for annual evaluation\n4.12.3 The assessment should include items that measure program effectiveness and\nidentify areas for improvement.\nWhile reviewing Delek’s controller training program, PHMSA requested records to demonstrate\nthat Delek performed an annual review of its controller training program for calendar years 2016\nand 2017. Delek could not provide any documented evidence to indicate that it performed the\nrequired annual review of its controller training program in calendar years 2016 and 2017. Delek\nlast reviewed its controller training program in 2015.\nAlso, Delek did not provide an opportunity for controllers to review the relevant procedures in\nadvance of its application as it applied to an ILI Tool Run of the Buckner 8” and 6” line segment\nperformed in 2016.\nDelek’s CRM manual LTP-DP-001.06, Section 9, Subsections 4.10.13.1, 4.10.13.2, 4.10.13.3\nstates:\n4.10.13 Operating setups that occur infrequently, but do occur periodically\n4.10.13.1 Procedures for these setups will be reviewed before the setup is performed\n4.10.13.2 These operating setups include:\n4.10.13.3 ILI Tool Runs\n4.10.13.4 Finney Reversal during Turnaround\n2\n\n\n\nAccording to Delek’s CRM manual, the procedure for ILI tool runs would be reviewed before the\nsetup is performed. PHMSA’s review of the Delek controller training program discovered that\nDelek did not have a procedure for the ILI Tool Runs conducted in 2016, to include 6” and 8”\npipeline segments located in Buckner, Arkansas.\n2. §195.403 Emergency response training.\n(b) At the intervals not exceeding 15 months, but at least once each calendar year,\neach operator shall:\n(1) Review with personnel their performance in meeting the objectives of the\nemergency response training program set forth in paragraph (a) of this section; and\n(2) Make appropriate changes to the emergency response training program as\nnecessary to ensure that it is effective.\nDelek failed to (1) review with its personnel their performance in meeting the objectives of the\nemergency response training program set forth in its personnel training manual; and (2) make\nappropriate changes to the emergency response training program as necessary to ensure that it is\neffective, at intervals not exceeding 15 months, but at least once each calendar year.\nAccording to Delek’s O&M manual LTP-OP-113, Section 6.0 (Issue date: February 11, 2015):\nOnce a year, not to exceed 15 months, all maintenance and operation personnel will be reviewed\nas to their knowledge of the objectives described above; the training program, including the OQP\nwill be adjusted according to the review.\nAt the time of the inspection, Delek could not provide any evidence that indicates that they\nreviewed the performance of their personnel in meeting the objectives of their emergency response\ntraining program as required by §195.403(b). Delek also did not conduct an annual review of its\nemergency response training program as stated in its procedure, for calendar years 2015, 2016,\nand 2017.\n3. §195.308 Testing of tie-ins.\nPipe associated with tie-ins must be pressure tested, either with the section to be tied\nin or separately.\n3\n\n\n\n§195.310 Records.\n(a) A record must be made of each pressure test required by this subpart, and the\nrecord of the latest test must be retained as long as the facility tested is in use.\nDelek failed to conduct a pressure test, and maintain records of pressure test of each pipe associated\nwith tie-ins to breakout Tank 2013, as required by §§195.308 and 195.310.\nDelek constructed and placed in service a new breakout Tank (number 2013) at its Magnolia Pump\nStation in 2016. PHMSA noted during the inspection that the pipe added and associated tie-ins to\nbreakout Tank 2013 were not pressure tested.\nAt the time of the inspection, Delek could not present any evidence to indicate that it conducted\npressure test of the tie-ins before they were installed in 2016. After the inspection Delek conducted\na pressure test of the tie-ins on July 26, 2018, and submitted records of the pressure test to PHMSA\nfor review.\n4. §195.507 Recordkeeping.\nEach operator shall maintain records that demonstrate compliance with this subpart.\n(a) Qualification records shall include:\n(1) Identification of qualified individual(s);\n(2) Identification of the covered tasks the individual is qualified to perform;\n(3) Date(s) of current qualification; and\n(4) Qualification method(s).\n(b) Records supporting an individual's current qualification shall be maintained\nwhile the individual is performing the covered task. Records of prior qualification\nand records of individuals no longer performing covered tasks shall be retained for a\nperiod of five years.\nDelek failed to maintain qualification records of its personnel that performed covered tasks.\nSpecifically, Delek failed to provide records to support the qualifications of its personnel that\nperformed monthly breakout tank inspections.\nOn multiple occasions between January 2017 and March 2018, Delek’s personnel performed\nmonthly inspection of breakout Tanks 437, 2002, and 2013, located at its Magnolia, Arkansas\n4\n\n\n\npump station. When PHMSA reviewed Delek’s personnel qualification records, it identified that\nindividuals that performed monthly breakout tank inspections did not have qualification records.\nDelek has identified breakout tank inspections as covered task 006OP in its written Operator\nQualification program.\nDelek was not able to provide any documentation supporting the current qualification of its\npersonnel that performed the covered task between January 2017, and March 2018.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related\nseries of violations. For violation occurring on or after November 2, 2015, and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to\nexceed $2,000,000 for a related series of violations. The Compliance Officer has reviewed the\ncircumstances and supporting documentation involved in the above probable violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $89,800 as follows:\nItem number PENALTY\nItem 3 $46,600\nItem 4 $43,200\nProposed Compliance Order\nWith respect to items 1 and 2, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Delek Logistics Operating LLC.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\n5\n\n\n\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 4-2019-5012 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n6\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Delek Logistics Operating LLC a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Delek\nLogistics Operating LLC with the pipeline safety regulations:\n1. 2. In regard to Item Number 1 of the Notice pertaining to Delek’s failure to perform\nreview of the content of its controller training program to identify potential\nimprovement at least once each calendar year, but at intervals not to exceed 15\nmonths, and Delek’s failure to prepare and review a procedure for ILI tool Runs\nprior to its application.\nDelek must develop a procedure for ILI Tool Runs, and submit a copy to PHMSA\nfor review within 60 days of the date of this Final Order. Within 30 days after\nPHMSA review and agrees with the developed procedure, Delek must train and\nreview the procedure with its controllers. Furthermore, for calendar year 2018,\nDelek must perform a review of its controller training program in accordance with\n§195.446(h). Delek must submit all records that indicate compliance to this Order\nto Director, Southwest Region within 90 days of the date of the Final Order.\nIn regard to Item Number 2 of the Notice pertaining to Delek’s failure to conduct\nan annual review of its emergency response training procedure, to determine\npersonnel performance in meeting the objectives of the emergency response\ntraining program Seth for in 195.403(a).\nFor calendar year 2018, Delek must review with personnel their performance in\nmeeting the objectives of the emergency response training program Seth forth in\n§195.403(a), and make appropriate changes to the emergency response training\nprocedure as necessary to ensure that it is effective. Delek must submit revised\nprocedure and records that indicate compliance to the items identified in this Order\nto Director, Southwest Region within 90 days of the date of the Final Order.\n3. It is requested (not mandated) that Delek maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to Director, Southwest Region, Pipeline and Hazardous Materials Safety\nAdministration. It is requested that these costs be reported in two categories: 1)\ntotal cost associated with preparation/revision of plans, procedures, studies and\nanalyses, and 2) total cost associated with replacements, additions and other\nchanges to pipeline infrastructure.\n7","truncated":false,"body_characters":20198}