{"operation":"document","citation":"CPF 42020009NOA","title":"DENBURY ONSHORE, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-11-12","effective_on":null,"summary":"CLOSED notice of amendment citing 195.110(a), 195.207(c), 195.262(a), 195.402(a), 195.402(c)(3), 195.402(c)(7), 195.403(c), 195.573(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42020009noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42020009noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42020009noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42020009NOA","body":"Notice of Amendment involving DENBURY ONSHORE, LLC. PHMSA's enforcement data identifies the cited regulations as 195.110(a),  195.207(c),  195.262(a),  195.402(a),  195.402(c)(3),  195.402(c)(7),  195.403(c),  195.573(e). The case was opened on 2020-11-12 and is reported as closed as of 2021-03-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42020009NOA_Closure Letter_03082021_(20-179978).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020009NOA/42020009NOA_Closure%20Letter_03082021_(20-179978).pdf\n\n42020009NOA_Closure Letter_03082021_(20-179978)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020009NOA/42020009NOA_Closure%20Letter_03082021_(20-179978)_text.pdf\n\n42020009NOA_Notice of Amendment_11122020_(20-179978).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020009NOA/42020009NOA_Notice%20of%20Amendment_11122020_(20-179978).pdf\n\n42020009NOA_Notice of Amendment_11122020_(20-179978)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020009NOA/42020009NOA_Notice%20of%20Amendment_11122020_(20-179978)_text.pdf\n\n42020009NOA_Operator Response to Notice_12102020_(20-179978).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42020009NOA/42020009NOA_Operator%20Response%20to%20Notice_12102020_(20-179978).pdf\n\n42020009NOA_Closure Letter_03082021_(20-179978)_text.pdf\n\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nMarch 8, 2021\nJohn Filiatrault\nSenior Vice President - CO2 Pipeline and Supply\nDenbury Onshore, LLC\n5320 Legacy Drive\nPlano, Texas 75024\nCPF 4-2020-009-NOA\nDear Mr. Filiatrault:\nFrom May 11, 2020 through July 29, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your Operation and Maintenance Procedure (O&M) manual.\nDenbury Onshore submitted its amended procedures on January 8, 2021. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\ncc: Chad Docekal, Regulatory Compliance Specialist, Denbury Resources, Inc.,\nchad.docekal@denbury.com\n\n42020009NOA_Notice of Amendment_11122020_(20-179978)_text.pdf\n\nNOTICE OF AMENDMENT\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nNovember 12, 2020\nJohn Filiatrault\nSenior Vice President - CO2 Pipeline and Supply\nDenbury Onshore, LLC\n5320 Legacy Drive\nPlano, Texas 75024\nCPF 4-2020-009-NOA\nDear Mr. Filiatrault:\nFrom May 11, 2020 through July 29, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected your Operation and Maintenance Procedure (O&M) manual.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies within Denbury\nOnshore, LLC’s plans or procedures, as described below:\n1. § 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be reviewed\nat intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence,\nand appropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n§ 195.110 - External loads.\n\n\n\n2. 3. 2\n(a) Anticipated external loads (e.g.), earthquakes, vibration, thermal expansion, and\ncontraction must be provided for in designing a pipeline system. In providing for\nexpansion and flexibility, Section 419 of ASME/ANSI B31.4 must be followed.\nDenbury's O&M manual does not reference Section 419 of ASME/ANSI B31.4 concerning\nexternal loads as referenced in § 195.110. Denbury's O&M manual should be amended to\nreference Section 419 of AMSE/ANSI B31.4 with respect to anticipated external loads in\nproviding for expansion and flexibility.\n§ 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be reviewed\nat intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence,\nand appropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n§ 195.207 - Transportation of pipe.\n(a) …\n(c) Truck. In a pipeline to be operated at a hoop stress of 20 percent or more of SMYS,\nan operator may not use pipe having an outer diameter to wall thickness ratio of 70\nto 1, or more, that is transported by truck unless the transportation is performed in\naccordance with API RP 5LT (incorporated by reference, see § 195.3).\nDenbury's procedure for transportation of pipe(s) is inadequate. Denbury's Engineering\nStandards Manual does not provide for the use of API RP 5LT when transporting pipe(s)\nby truck. Denbury provides references for API RP 5L1 and 5LW to transport pipe(s) by\nrail and marine vessels or barge, but does not provide a reference for API RP 5LT when\ntransporting pipe(s) by truck. Denbury must amend its procedure to include API RP 5LT\nstandards when transporting pipe(s) by truck.\n§ 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be reviewed\nat intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence,\n\n\n\n3\nand appropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n§ 195.262 - Pumping equipment.\n(a) Adequate ventilation must be provided in pump station buildings to prevent the\naccumulation of hazardous vapors. Warning devices must be installed to warn of the\npresence of hazardous vapors in the pumping station building.\nDenbury’s written procedures regarding adequate ventilation within pump stations\nbuildings are inadequate. Section 17. Heating, Ventilation, and Air Conditioning (HVAC)\nRequirements of Denbury's Engineering Design Manual (Section E0200) is insufficient\nper § 195.262(a) due to the lack of reference to ventilation provided in pump station\nbuildings to prevent the accumulation of hazardous vapors, and the lack of reference to\nwarning devices for hazardous environments when entering enclosed pump station\nbuildings. This section only references conformance to UBC, IBC, and ASHRAE, in\naddition to climate control. Denbury must amend its procedures regarding adequate\nventilation within pump stations buildings to address the requirements of § 195.262(a).\n4. § 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be reviewed\nat intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence,\nand appropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(1) ….\n(7) Starting up and shutting down any part of the pipeline system in a manner\ndesigned to assure operation within the limits prescribed by § 195.406, consider the\nhazardous liquid or carbon dioxide in transportation, variations in altitude along the\npipeline, and pressure monitoring and control devices.\nDenbury’s written procedures O&M 0502, High-Pressure Plant Start-Up Procedures of\nDenbury's O&M Manual, Sections 2. Scope and 3. Core Information and Requirements are\ninadequate per § 195.402(c)(7) as they do not provide written shutdown procedures, but\nonly start-up procedure steps. The procedures must be amended to ensure operation within\n\n\n\n5. 6. 4\nlimits prescribed by § 195.406 during startup and shutdown and should address the\nfollowing:\n1. Inspecting all over-pressure protection devices required for the start-up of a new\npipeline, including the testing of set pressures and the checking of capacities, if\nnecessary;\n2. Establishing communication with field personnel and control personnel; and\n3. Controlling the flow rate when pressurizing the pipeline and monitoring\npressures until normal operation is established.\n§ 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be reviewed\nat intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is effective. This\nmanual shall be prepared before initial operations of a pipeline system commence,\nand appropriate parts shall be kept at locations where operations and maintenance\nactivities are conducted.\n§ 195.403 - Emergency response training.\n(a) ….\n(c) Each operator shall require and verify that its supervisors maintain a thorough\nknowledge of that portion of the emergency response procedures established under\n§ 195.402 for which they are responsible to ensure compliance.\nDenbury's O&M, Emergency Response, Section 4. Training procedures are inadequate as\nthey do not provide a process to require and verify that supervisors are trained and maintain\na thorough knowledge of the emergency response procedures for which they are\nresponsible. Denbury must amend its procedures to provide a process for supervisors to be\ntrained and maintain the necessary knowledge of the emergency response procedures\nestablished under § 195.402.\n§ 195.402 - Procedural manual for operations, maintenance, and emergencies.\n(a) …\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\n\n\n5\n(1)….\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.\n§ 195.573 - What must I do to monitor external corrosion control?\n(a) …\n(e) Corrective action. You must correct any identified deficiency in corrosion control\nas required by § 195.401(b). However, if the deficiency involves a pipeline in an\nintegrity management program under § 195.452, you must correct the deficiency as\nrequired by § 195.452(h).\nDenbury's O&M manual, External Corrosion Control for Buried or Submerged Pipeline,\nSection 3.4.7 Remedial Action is inadequate because it does not contain procedures for\nresponding to deficiencies found by the required monitoring per § 195.573(e).\nDenbury must amend its procedures to include a process and time frame for responding to\ndeficiencies identified during external corrosion control monitoring. The amended\nprocedures should include a minimum of: (1) a time frame for evaluating data and\ndetermining a course of action; and (2) a time frame for any new installation to be\noperational and cathodic protection to be in the adequate range. These time frames should\nconsider the population density and environmental concerns of the area that could\npotentially be affected by a release of a hazardous liquid.\n\n\n\n6\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document, you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 60 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed. It is requested (not mandated) that Denbury Onshore, LLC maintain\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Mary McDaniel,\nDirector, Southwest, Pipeline and Hazardous Materials Safety Administration. In correspondence\nconcerning this matter, please refer to CPF 4-2020-009-NOA, and for each document you submit,\nplease provide a copy in electronic format whenever possible.\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Chad Docekal, Regulatory Compliance Specialist, Denbury Resources, Inc.,\nchad.docekal@denbury.com","truncated":false,"body_characters":15180}