# DELEK LOGISTICS OPERATING, LLC. — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

420195012_Closure Letter_03102020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Closure%20Letter_03102020.pdf

420195012_Closure Letter_03102020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Closure%20Letter_03102020_text.pdf

420195012_Final Order_11202019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Final%20Order_11202019.pdf

420195012_Final Order_11202019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Final%20Order_11202019_text.pdf

420195012_NOPV PCP PCO_07022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_NOPV%20PCP%20PCO_07022019.pdf

420195012_NOPV PCP PCO_07022019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_NOPV%20PCP%20PCO_07022019_text.pdf

420195012_Operator Response to Notice_08272019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420195012/420195012_Operator%20Response%20to%20Notice_08272019.pdf

420195012_Final Order_11202019_text.pdf

November 20, 2019
Mr. Ezra Uzi Yemin
President and Chief Executive Officer
Delek Logistics Partners, LP
12700 Park Central Drive, Suite 1500
Dallas, Texas 72521
Re: CPF No. 4-2019-5012
Dear Mr. Yemin:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation against your subsidiary, Delek Logistics Operations, LLC, and finds that the civil
penalty amount of $89,800 has been paid in full. When the terms of the compliance order are
completed, as determined by the Director, Southwest Region, this enforcement action will be
closed. Service of the Final Order by certified mail is effective upon the date of mailing, as
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosures (Final Order and NOPV)
cc: Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. Michael Odigie, Vice President, Asset Integrity, Delek Logistics Partners, LP
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
__________________________________________
In the Matter of )
Delek Logistics Operating, LLC, ) CPF No. 4-2019-5012
a subsidiary of Delek Logistics Partners, LP, )
)
)
)
Respondent. )
__________________________________________)
FINAL ORDER
On July 2, 2019, pursuant to 49 C.F.R. § 190.207, the Director, Southwest Region, Office of
Pipeline Safety (OPS), issued a Notice of Probable Violation (Notice) to Delek Logistics
Operating, LLC, a wholly-owned subsidiary of Delek Logistics Partners, LP (Respondent). The
Notice proposed finding that Respondent had violated the pipeline safety regulations in 49
C.F.R. Part 195 and proposed a civil penalty of $89,800. The Notice also proposed certain
measures to correct the violations. Respondent did not contest the allegations of violation or
corrective measures and paid the proposed civil penalty on August 2, 2019. In accordance with
§ 190.208(a)(1), such payment authorizes the entry of this final order.
Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the
pipeline safety regulations listed below, as more fully described in the enclosed Notice:
49 C.F.R. § 195.446(h) (Item 1) ─ Respondent failed to review the content of its
controller training program to identify potential improvements, at least once each
calendar year but at intervals not to exceed 15 months.
49 C.F.R. § 195.403(b) (Item 2) ─ Respondent failed to review with its personnel
their performance in meeting the objectives of the emergency response training
program set forth in its personnel training manual and to make appropriate
changes to the emergency response training program as necessary to ensure that it
is effective, at intervals not exceeding 15 months but at least once each calendar
year.
49 C.F.R. § 195.308 (Item 3) ─ Respondent failed to conduct and maintain
records of pressure tests associated with tie-ins.
49 C.F.R. § 195.507 (Item 4) ─ Respondent failed to maintain records
demonstrating that its personnel were qualified to perform covered tasks.
These findings of violation will be considered prior offenses in any subsequent enforcement



CPF No. 4-2019-5012
Page 2
action taken against Respondent. In accordance with 49 C.F.R. § 190.223, Respondent is
assessed the proposed civil penalty amount of $89,800, which Respondent has already paid in
full.
Pursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the
actions proposed in the enclosed Notice to correct the violations. The Director may grant an
extension of time to comply with any of the required items upon a written request timely
submitted by the Respondent and demonstrating good cause for an extension. Upon completion
of ordered actions, Respondent may request that the Director close the case. Failure to comply
with this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in
referral to the Attorney General for appropriate relief in a district court of the United States.
The terms and conditions of this order are effective upon service in accordance with 49 C.F.R.
§ 190.5.
November 20, 2019
___________________________________ _________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

420195012_Closure Letter_03102020_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
March 10, 2020
Ezra Uzi Yemin
President and Chief Executive Officer
Delek Logistics Partners, LP
12700 Park Central Drive, Suite 1500
Dallas, Texas 72521
CPF 4-2019-5012
Dear Mr. Yemin:
On November 2, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Delek Logistics Operating, LLC a Final Order in the above-referenced case. This Order
included a Compliance Order and Civil Penalty assessment. Based on our review of the
documentation you provided and confirmation of payment of the civil penalty, it has been
determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Mary L. McDaniel, P.E
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration

420195012_NOPV PCP PCO_07022019_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
July 2, 2019
John Warren
Vice President Operations
Delek Logistics Operating, LLC
1001 School Street
El Dorado, Arkansas 71730
CPF 4-2019-5012
Dear Mr. Warren:
On multiple dates between December 5, 2017 and March 26, 2018, representatives of the Pipeline
and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),
pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected your Magnolia Pipeline
system in El Dorado, Arkansas.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:



1. §195.446 Control room management.
(h) Training. Each operator must establish a controller training program and review
the training program content to identify potential improvements at least once each
calendar year, but at intervals not to exceed 15 months. An operator's program must
provide for training each controller to carry out the roles and responsibilities defined
by the operator. In addition, the training program must include the following
elements:
(5) For pipeline operating setups that are periodically, but infrequently used,
providing an opportunity for controllers to review relevant procedures in advance of
their application; and
Delek failed to review the content of its controller training program to identify potential
improvements, at least once each calendar year, but at intervals not to exceed 15 months.
Delek’s procedure LTP-DP-001.06: ‘DKL Control Room Management Plan Manual’ (Revision
date: July 11, 2014), requires Delek to conduct an annual review of its controller training program.
Delek’s CRM manual LTP-DP-001.06, Section 9, Subsections 4.12.1, 4.12.2, 4.12.3 states:
4.12.1The training program, including content, shall be evaluated at least once each
calendar year, but at intervals not to exceed 15 months
4.12.2 An assessment shall be developed and used for annual evaluation
4.12.3 The assessment should include items that measure program effectiveness and
identify areas for improvement.
While reviewing Delek’s controller training program, PHMSA requested records to demonstrate
that Delek performed an annual review of its controller training program for calendar years 2016
and 2017. Delek could not provide any documented evidence to indicate that it performed the
required annual review of its controller training program in calendar years 2016 and 2017. Delek
last reviewed its controller training program in 2015.
Also, Delek did not provide an opportunity for controllers to review the relevant procedures in
advance of its application as it applied to an ILI Tool Run of the Buckner 8” and 6” line segment
performed in 2016.
Delek’s CRM manual LTP-DP-001.06, Section 9, Subsections 4.10.13.1, 4.10.13.2, 4.10.13.3
states:
4.10.13 Operating setups that occur infrequently, but do occur periodically
4.10.13.1 Procedures for these setups will be reviewed before the setup is performed
4.10.13.2 These operating setups include:
4.10.13.3 ILI Tool Runs
4.10.13.4 Finney Reversal during Turnaround
2



According to Delek’s CRM manual, the procedure for ILI tool runs would be reviewed before the
setup is performed. PHMSA’s review of the Delek controller training program discovered that
Delek did not have a procedure for the ILI Tool Runs conducted in 2016, to include 6” and 8”
pipeline segments located in Buckner, Arkansas.
2. §195.403 Emergency response training.
(b) At the intervals not exceeding 15 months, but at least once each calendar year,
each operator shall:
(1) Review with personnel their performance in meeting the objectives of the
emergency response training program set forth in paragraph (a) of this section; and
(2) Make appropriate changes to the emergency response training program as
necessary to ensure that it is effective.
Delek failed to (1) review with its personnel their performance in meeting the objectives of the
emergency response training program set forth in its personnel training manual; and (2) make
appropriate changes to the emergency response training program as necessary to ensure that it is
effective, at intervals not exceeding 15 months, but at least once each calendar year.
According to Delek’s O&M manual LTP-OP-113, Section 6.0 (Issue date: February 11, 2015):
Once a year, not to exceed 15 months, all maintenance and operation personnel will be reviewed
as to their knowledge of the objectives described above; the training program, including the OQP
will be adjusted according to the review.
At the time of the inspection, Delek could not provide any evidence that indicates that they
reviewed the performance of their personnel in meeting the objectives of their emergency response
training program as required by §195.403(b). Delek also did not conduct an annual review of its
emergency response training program as stated in its procedure, for calendar years 2015, 2016,
and 2017.
3. §195.308 Testing of tie-ins.
Pipe associated with tie-ins must be pressure tested, either with the section to be tied
in or separately.
3



§195.310 Records.
(a) A record must be made of each pressure test required by this subpart, and the
record of the latest test must be retained as long as the facility tested is in use.
Delek failed to conduct a pressure test, and maintain records of pressure test of each pipe associated
with tie-ins to breakout Tank 2013, as required by §§195.308 and 195.310.
Delek constructed and placed in service a new breakout Tank (number 2013) at its Magnolia Pump
Station in 2016. PHMSA noted during the inspection that the pipe added and associated tie-ins to
breakout Tank 2013 were not pressure tested.
At the time of the inspection, Delek could not present any evidence to indicate that it conducted
pressure test of the tie-ins before they were installed in 2016. After the inspection Delek conducted
a pressure test of the tie-ins on July 26, 2018, and submitted records of the pressure test to PHMSA
for review.
4. §195.507 Recordkeeping.
Each operator shall maintain records that demonstrate compliance with this subpart.
(a) Qualification records shall include:
(1) Identification of qualified individual(s);
(2) Identification of the covered tasks the individual is qualified to perform;
(3) Date(s) of current qualification; and
(4) Qualification method(s).
(b) Records supporting an individual's current qualification shall be maintained
while the individual is performing the covered task. Records of prior qualification
and records of individuals no longer performing covered tasks shall be retained for a
period of five years.
Delek failed to maintain qualification records of its personnel that performed covered tasks.
Specifically, Delek failed to provide records to support the qualifications of its personnel that
performed monthly breakout tank inspections.
On multiple occasions between January 2017 and March 2018, Delek’s personnel performed
monthly inspection of breakout Tanks 437, 2002, and 2013, located at its Magnolia, Arkansas
4



pump station. When PHMSA reviewed Delek’s personnel qualification records, it identified that
individuals that performed monthly breakout tank inspections did not have qualification records.
Delek has identified breakout tank inspections as covered task 006OP in its written Operator
Qualification program.
Delek was not able to provide any documentation supporting the current qualification of its
personnel that performed the covered task between January 2017, and March 2018.
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related
series of violations. For violation occurring on or after November 2, 2015, and before November
27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum
penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the
maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to
exceed $2,000,000 for a related series of violations. The Compliance Officer has reviewed the
circumstances and supporting documentation involved in the above probable violation(s) and has
recommended that you be preliminarily assessed a civil penalty of $89,800 as follows:
Item number PENALTY
Item 3 $46,600
Item 4 $43,200
Proposed Compliance Order
With respect to items 1 and 2, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials
Safety Administration proposes to issue a Compliance Order to Delek Logistics Operating LLC.
Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in
Compliance Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be made publicly available. If you
believe that any portion of your responsive material qualifies for confidential treatment under 5
U.S.C. 552(b), along with the complete original document you must provide a second copy of the
document with the portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for confidential treatment under
5 U.S.C. 552(b).
5



Following the receipt of this Notice, you have 30 days to submit written comments, or request a
hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,
this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the
Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further
notice to you and to issue a Final Order. If you are responding to this Notice, we propose that you
submit your correspondence to my office within 30 days from receipt of this Notice. This period
may be extended by written request for good cause.
In your correspondence on this matter, please refer to CPF 4-2019-5012 and, for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
6



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Delek Logistics Operating LLC a Compliance
Order incorporating the following remedial requirements to ensure the compliance of Delek
Logistics Operating LLC with the pipeline safety regulations:
1. 2. In regard to Item Number 1 of the Notice pertaining to Delek’s failure to perform
review of the content of its controller training program to identify potential
improvement at least once each calendar year, but at intervals not to exceed 15
months, and Delek’s failure to prepare and review a procedure for ILI tool Runs
prior to its application.
Delek must develop a procedure for ILI Tool Runs, and submit a copy to PHMSA
for review within 60 days of the date of this Final Order. Within 30 days after
PHMSA review and agrees with the developed procedure, Delek must train and
review the procedure with its controllers. Furthermore, for calendar year 2018,
Delek must perform a review of its controller training program in accordance with
§195.446(h). Delek must submit all records that indicate compliance to this Order
to Director, Southwest Region within 90 days of the date of the Final Order.
In regard to Item Number 2 of the Notice pertaining to Delek’s failure to conduct
an annual review of its emergency response training procedure, to determine
personnel performance in meeting the objectives of the emergency response
training program Seth for in 195.403(a).
For calendar year 2018, Delek must review with personnel their performance in
meeting the objectives of the emergency response training program Seth forth in
§195.403(a), and make appropriate changes to the emergency response training
procedure as necessary to ensure that it is effective. Delek must submit revised
procedure and records that indicate compliance to the items identified in this Order
to Director, Southwest Region within 90 days of the date of the Final Order.
3. It is requested (not mandated) that Delek maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the
total to Director, Southwest Region, Pipeline and Hazardous Materials Safety
Administration. It is requested that these costs be reported in two categories: 1)
total cost associated with preparation/revision of plans, procedures, studies and
analyses, and 2) total cost associated with replacements, additions and other
changes to pipeline infrastructure.
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