{"operation":"document","citation":"CPF 420205012","title":"MAGELLAN PIPELINE COMPANY, LP — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-09-18","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.202, 195.228(a), 195.246(a), 195.252.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-420205012.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-420205012.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-420205012","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/420205012","body":"Notice of Probable Violation involving MAGELLAN PIPELINE COMPANY, LP. PHMSA's enforcement data identifies the cited regulations as 195.202,  195.228(a),  195.246(a),  195.252. The case was opened on 2020-09-18 and is reported as closed as of 2021-09-17. Proposed civil penalty: $50,100. Assessed civil penalty: $0. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n420205012_Final Order_09172021_(18-163702S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_Final%20Order_09172021_(18-163702S).pdf\n\n420205012_Final Order_09172021_(18-163702S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_Final%20Order_09172021_(18-163702S)_text.pdf\n\n420205012_NOPV PCP PCO_09182020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_NOPV%20PCP%20PCO_09182020.pdf\n\n420205012_NOPV PCP PCO_09182020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_NOPV%20PCP%20PCO_09182020_text.pdf\n\n420205012_Operator Hearing Request Withdrawn_02182021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_Operator%20Hearing%20Request%20Withdrawn_02182021.pdf\n\n420205012_Operator Response to Notice and Request for Hearing_11202020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing_11202020.pdf\n\n420205012_PHC Hearing Scheduled_12182020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_PHC%20Hearing%20Scheduled_12182020.pdf\n\n420205012_PHC Hearing Scheduled_12182020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/420205012/420205012_PHC%20Hearing%20Scheduled_12182020_text.pdf\n\n420205012_PHC Hearing Scheduled_12182020_text.pdf\n\nDecember 18, 2020\nVIA ELECTRONIC MAIL TO: mark.materna@magellanlp.com and\nmary.mcdaniel@dot.gov\nMr. Mark Materna\nDirector, Pipeline Integrity\nMagellan Midstream Partners, LP\nOne Williams Center\nP.O. Box 22186\nTulsa, Oklahoma 74172\nMs. Mary McDaniel\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration\n8701 South Gessner, Suite 630\nHouston, Texas 77074\nRe: Notice of Hearing, Magellan Pipeline Company, LP\nCPF No. 4-2020-5012\nDear Mr. Materna and Ms. McDaniel:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on February 18, 2021, beginning at 8:30 a.m. Central Time.\nThe hearing will be held via videoconference. I will provide the videoconference information prior\nto the hearing. At least 10 calendar days prior to the hearing (or by February 8, 2021), both parties\nmust submit and exchange any additional written materials they intend to present at the hearing and\nthe name and email address of each attendee. This information should be provided electronically.\nMaterials not submitted by this date may be excluded.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\ncc: Mr. Michael Pearson, Senior Vice President, Technical Services, Magellan Pipeline\nCompany, LP, michael.pearson@magellanlp.com\nMs. Melanie Lampton, Counsel, Southwest Region, Office of Pipeline Safety, PHMSA,\nmelanie.lampton@dot.gov\n\n420205012_Final Order_09172021_(18-163702S)_text.pdf\n\nSeptember 17, 2021\nVIA ELECTRONIC MAIL TO: jason.smith@magellanlp.com\nMr. Jason Smith\nVice President, Asset Integrity\nMagellan Pipeline Company, LP\nOne Williams Center, MD 27\nTulsa, Oklahoma 74172\nRe: CPF No. 4-2020-5012\nDear Mr. Smith:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws one of\nthe allegations of violation, makes a finding of violation, includes two warning items, and finds\nthat Magellan Pipeline Company, LP has completed the actions specified in the Notice to comply\nwith the pipeline safety regulations. Therefore, this case is now closed. Service of the Final\nOrder by certified mail is effective upon the date of mailing as provided under 49 C.F.R. § 190.5.\nService of the Final Order by e-mail is effective upon the date of transmission as provided under\n49 C.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, Office of Pipeline Safety, PHMSA\nMr. Mark Materna, Director, Pipeline Integrity, Magellan Pipeline Company, LP,\nmark.materna@magellanlp.com\nMr. R. Daniel Scroggins, Senior Attorney, Magellan Midstream Partners, LP,\ndanny.scroggins@magellanlp.com\nCONFIRMATION OF RECEIPT REQUSTED\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 )\nMagellan Pipeline Company, LP, ) CPF No. 4-2020-5012\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom September 20, 2019, through February 14, 2020, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of Magellan Pipeline Company, LP’s (Magellan or Respondent) Orion West Pipeline\nConstruction Project at various field locations in Texas and at Magellan headquarters in Tulsa,\nOklahoma. The Orion West pipeline has about 430 miles of pipeline that moves refined\npetroleum products near Corsicana, Texas to Odessa, Texas. This construction project involved\nan increase in capacity (50,000 additional barrels per day) on the existing Orion West refined\nproducts system through replacement of about 140 miles of pipeline segments and upgrade or\ninstallation of pumping capacity.\nAs a result of the inspection, the Director, Southwest Region, OPS (Director), issued to\nRespondent, by letter dated September 18, 2020, a Notice of Probable Violation, Proposed Civil\nPenalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the\nNotice proposed finding that Magellan had committed two violations of 49 C.F.R. Part 195,\nproposed assessing a civil penalty of $50,100 for one of the alleged violations, and proposed\nordering Respondent to take certain measures to correct the alleged violations. The Notice also\nincluded an additional two warning items pursuant to 49 C.F.R. § 190.205, which required no\nfurther action, but warned the operator to correct the probable violations or face possible future\nenforcement action.\nAfter requesting and receiving an extension of time to respond, Magellan responded to the\nNotice by letter dated November 20, 2020 (Response). Magellan contested all of the allegations\nand requested a hearing. By e-mail dated February 17, 2021, Respondent withdrew its request\nfor a hearing and thereby authorized the entry of this Final Order without further notice.\n\n\n\nFINDING OF VIOLATION\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.202, which states:\n§ 195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent with\nthe requirements of this part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.202 by failing to construct its\nOrion West pipeline in accordance with comprehensive written specifications or standards\nconsistent with the requirements of Part 195, and also failing to follow its written construction\nspecification when Magellan’s welding inspector was found to be using an incorrect version of\nthe Magellan Specification 100. Specifically, the Notice alleged that Magellan failed to verify\nand document the welding parameters as required by its specification, and further, that\nMagellan’s welding inspector was using an incorrect version of the written construction\nspecification.\nIn its Response, Magellan initially contested this allegation of violation and requested a hearing\non the issues. Subsequent to its Response, Magellan withdrew its hearing request on this Item\nand stated that it was no longer contesting the allegation of violation.1\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 195.202 by failing to verify and document the welding parameters as required by its\nspecification, and failing to ensure that its welding inspector was using the correct version of the\nwritten construction specification.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.202, which states:\n§ 195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with\ncomprehensive written specifications or standards that are consistent with\nthe requirements of this part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.202 by failing to construct its\nOrion West pipeline in accordance with comprehensive written specifications or standards\nconsistent with the requirements of Part 195. Specifically, Magellan failed to install its newly\nconstructed Orion West pipeline in the ditch consistent with the requirements of §§ 195.246 and\n195.252. Moreover, Section 6.0 of Magellan’s Specification “Padding, Backfill, and Ditch\nBreakers, Revision 2, dated 05/20/2015,” requires the installation of a rock shield or use of\npadding to protect the pipeline from damage in rocky areas. The Notice alleged that on\nSeptember 19, 2019, at County Road (CR) 209 in Callahan County, Texas, PHMSA observed\n1 Magellan hearing request withdrawal e-mail, dated February 17, 2012 (on file with PHMSA).\n\n\n\nthat the pipe had been lowered into the ditch in a rocky area with no rock shield or padding. In\naddition, the rocks in the spoil from trenching had not been segregated from the material to be\nused for backfilling.\nIn its Response, Magellan asserted that it complied with §§ 195.202, 195.246, and 195.252, and\nrequested that this item be withdrawn along with the associated Proposed Civil Penalty and\nProposed Compliance Order. Magellan explained that during the field inspection on September\n19, 2019, the PHMSA inspector visited an active pipeline construction site at CR 209. The\nconstruction site at CR 209 was observed to have an open construction ditch with new pipe as\nnoted by the inspector and was not yet backfilled.\nAccording to Magellan, the pipeline construction was installed via road bore and tied into a section\nof lowered in pipe with proper ditch padding and rock shield installed. The pipe without rock\nshield was coated in Abrasion Resistant Overcoating, which was presented as evidence of the road\nbore installation method. Magellan explained that there is no practical method to effectively install\na pipeline via road bore with rock shield installed, nor is it required by Magellan's procedure due\nto the installation method. The \"Padding, Backfill, and Ditch Breaker'' specification also states,\n\"Immediately before padding and backfilling, ditch and backfill material shall be inspected and\nrocks, large clods, stumps, skids, trash and other foreign material shall be removed.\" Magellan\napplied rock shield to the road bore piping and inspected the backfill material prior to backfilling\nthe open excavation at CR 209.\nBased upon daily reports and photos from the construction project, Magellan claimed it had\nsupporting evidence that the pipeline constructed in this area was installed per Magellan's\nSpecification \"Padding, Backfill, and Ditch Breaker.\" Therefore, Magellan argued that the\nlocation identified by the PHMSA inspector was properly protected with rock shield and spoils\nwere inspected prior to backfilling the construction site at CR 209.\nMagellan provided supportive photographic evidence showing the pipeline segment at issue with\nrock shield installed prior to backfilling the open excavation in a PDF format in its Response, as\nwell as JPEG format on February 9, 2021. In the Regional Director’s written evaluation of the\nresponse material submitted by Respondent, they recommended Item 3 be withdrawn.\nAccordingly, after considering all of the evidence, I find that Magellan did not violate the\nregulation as alleged in the Notice. Although photographic records were not available at the time\nof the inspection, Magellan did provide documentary evidence of compliance on February 9,\n2021. Based upon the foregoing, I hereby order that Item 3 of the Notice be withdrawn.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.2\n2 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n\n\n\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $50,100 for Item 3 cited above.\nItem 3: The Notice proposed a civil penalty of $50,100 for Respondent’s alleged violation of 49\nC.F.R. § 195.202. Since this alleged violation has been withdrawn, the proposed penalty is not\nassessed.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 3 in the Notice for\nviolations of 49 C.F.R. § 195.202. Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. The Director\nindicates that Respondent has taken the following actions specified in the proposed compliance\norder:\n1. With respect to the violation of § 195.202 (Item 1), Respondent has completed the\ncorrective actions proposed in the Notice. Specifically, Magellan provided records\nshowing that welding parameters had been recorded for the welding activities at the\nDe Leon pump station.\n2. With respect to the violation of § 195.202 (Item 3), this Item is withdrawn along\nwith the proposed compliance order actions.\nAccordingly, I find that compliance has been achieved. Therefore, the compliance terms\nproposed in the Notice are not included in this Order.\nWARNING ITEMS\nWith respect to Items 2 and 4, the Notice alleged probable violations of Part 195, but identified\nthem as warning items pursuant to § 190.205. The warnings were for:\n49 C.F.R. § 195.202 (Item 2) ─ Respondent’s alleged failure to construct its\nOrion West pipeline in accordance with comprehensive written specifications or\nstandards consistent with the requirements of Part 195. Specifically, the Notice\nalleged that Magellan failed to follow its written specification for hydrostatic\ntesting to require the review and approval of hydrostatic test documentation by the\n\n\n\nProject Engineer, Test Supervisor, and Test Inspector. Section 3.9.4.5 of\nMagellan Specification 7.07-ADM-001 – Pressure Testing Specification,\nRevision 4 dated 11/02/2016, requires the Hydrostatic Test Form 07-FORM-0013\nbe completed and signed by the specified project personnel. After PHMSA\ncommunicated this inspection finding to Magellan, the Operator subsequently\nsigned the forms and provided copies to PHMSA via e-mail; and\n49 C.F.R. § 195.228 (Item 4) ─ Respondent’s alleged failure to perform visual\ninspections of production welds. On January 8, 2020, at the De Leon pump station, the\nPHMSA inspector observed that several welds were completed without the welding\ninspector performing visual inspections. Additionally, at the time of the inspection, the\nwelding inspector was unable to provide records showing that visual inspections had been\nperformed on previously completed welds.\nMagellan requested withdrawal of Item 2 because it stated that its procedure 7.03-ADM-001 -\nPressure Testing requires the Project Manager, under section 3.10.4.5, to complete and sign the\nhydrostatic test section documentation, but intentionally does not require a time frame regarding\nthe signing of Page 4 by the Project Manager. According to Magellan, at the time of the\nhydrostatic testing, the Project Manager provided written acceptance and approval of the test\nover e-mail but had yet to sign the Page 4 hydrostatic test form. A copy of the e-mail approval\nand signed Page 4 documentation were provided to the PHMSA inspector in accordance with the\nrequirement in 7.03-ADM-001 during the inspection.\nMagellan requested withdrawal of Item 4 because it had previously submitted documentation to\nPHMSA that visual inspection as well as non-destructive testing were performed on each weld\non the day in question.\nUnder § 190.205, PHMSA does not adjudicate warning items to determine whether a probable\nviolation occurred. If OPS finds a violation of any of these items in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nSeptember 17, 2021\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n420205012_NOPV PCP PCO_09182020_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nSeptember 18, 2020\nMichael Pearson\nSenior Vice President, Technical Services\nMagellan Pipeline Company, LP\nOne William Center, OTC-9\nP.O. Box 22186\nTulsa, Oklahoma 74172\nCPF 4-2020-5012\nDear Mr. Pearson:\nFrom September 20, 2019 through February 14, 2020, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCode (U.S.C.) inspected Magellan Pipeline Company, LP’s (Magellan) Orion West Pipeline\nConstruction project at various field locations in Texas and records at your headquarters in Tulsa,\nOklahoma.\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:\n1. §195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with comprehensive written\nspecifications or standards that are consistent with the requirements of this part.\nMagellan failed to construct its Orion West pipeline in accordance with comprehensive\nwritten specifications or standards consistent with the requirements of Part 195. First,\nMagellan failed to follow its written construction specification for welding on its pipeline.\nSection 8.7.1.7.1 of Magellan Specification 100 – Construction and Fabrication of\nPipelines and Related Piping Systems, Revision 13 dated 03/08/2019, states “At a\nminimum, but no less than once per day volts, amps, heat input, travel speed, etc. shall be\nmonitored on welders randomly and documented to ensure welding is performed within\n\n\n\n2. 2\nthe parameters of the welding procedure.” The procedure further requires that the actual\nobserved welding parameters be recorded on Magellan Welding Report 07-FORM-0722.\nMagellan did not record the actual parameters used to weld the Orion West pipeline in\naccordance with its written procedures.\nOn January 8, 2020, while onsite, the PHMSA inspector requested Magellan’s record\ndocumenting the measured welding parameters as required by Specification 100. The\nwelding inspector was unable to provide the record of this information for January 8, 2020,\n(or any of the previous days of the same week). The information provided by the welding\ninspector did not show that the welding parameters had been documented once per day nor\nhad the information been recorded on 07-FORM-0722, as required by the Operators written\nspecification.\nSecond, Magellan also failed to follow its written construction specification when\nMagellan’s Welding inspector was found to be using an incorrect version of the Magellan\nSpecification 100. The version of the procedure that was current at the time of the PHMSA\ninspection was WE-ADM-003, Revision 13, dated 03/08/2019. When asked for the version\nbeing used, the Magellan welding inspector provided the PHMSA inspector WE-ADM-\n003, Revision 5, dated 03/09/2011.\nNot only did Magellan fail to verify and document the welding parameters as required by\ntheir specification, its welding inspector was not using the correct version of the written\nconstruction specification.\n§195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with comprehensive written\nspecifications or standards that are consistent with the requirements of this part.\nMagellan failed to construct its Orion West pipeline in accordance with comprehensive\nwritten specifications or standards consistent with the requirements of Part 195.\nSpecifically, Magellan failed to follow its written specification for hydrostatic testing to\nrequire the review and approval of hydrostatic test documentation by the Project Engineer,\nTest Supervisor, and Test Inspector. Section 3.9.4.5 of Magellan Specification 7.07 -\nADM-001 – Pressure Testing Specification, Revision 4 dated 11/02/2016, requires the\nHydrostatic Test Form 07-FORM-0013 be completed and signed by the specified project\npersonnel.\nDuring the inspection week of February 10, 2020, PHMSA identified that page 4 of the\nHydrostatic Test forms (07-FORM-0013) was not signed by the Magellan Project Manager\nfor the pressure test records for all three construction spreads of the Orion West expansion\nproject. After PHMSA communicated this inspection finding to Magellan, the Operator\nsubsequently signed the forms and provided copies to PHMSA via email.\n\n\n\n3. 4. 3\n§195.202 Compliance with specifications or standards.\nEach pipeline system must be constructed in accordance with comprehensive written\nspecifications or standards that are consistent with the requirements of this part.\n§195.246 Installation of pipe in a ditch.\n(a) All pipe installed in a ditch must be installed in a manner that minimized the\nintroduction of secondary stresses and the possibility of damage to the pipe\n§195.252 Backfilling.\nWhen a ditch for a pipeline is backfilled, it must be backfilled in a manner that:\n(a) Provides firm support under the pipe; and\n(b) Prevents damage to the pipe and pipe coating from equipment or from the backfill\nmaterial.\nMagellan failed to construct its Orion West pipeline in accordance with comprehensive\nwritten specifications or standards consistent with the requirements of Part 195.\nSpecifically, Magellan failed to install its newly constructed Orion West pipeline in the\nditch consistent with the requirements of §195.246 and §195.252. Moreover, Section 6.0\nof Magellan’s Specification ‘Padding, Backfill, and Ditch Breakers, Revision 2, dated\n05/20/2015,’ written specification requires the installation of rock shield or the use of\npadding to protect the pipeline from damage in rocky areas.\nOn September 19, 2019, at the CR 209 in Callahan County, Texas, PHMSA observed that\nthe pipe had been lowered into the ditch in a rocky area with no rock shield or padding. In\naddition, the rocks in the spoil from trenching had not been segregated from the material\nto be used for backfilling. Magellan failed to follow its written procedure to ensure\nconstruction of its pipeline in accordance with the specifications or standards related to\ninstallation of pipe in the ditch along with the proper backfilling.\n§195.228 Welds and welding inspection: Standards of acceptability.\n(a) Each weld and welding must be inspected to insure compliance with the\nrequirements of this subpart. Visual inspection must be supplemented by\nnondestructive testing.\nMagellan’s welding inspector failed to perform visual inspections of production welds as\nrequired by §195.228(a). On January 8, 2020, at the De Leon pump station, PHMSA\nobserved that several welds were completed without the welding inspector performing any\nvisual inspections. Additionally, at the time of the inspection, the welding inspector was\nunable to provide records showing that visual inspections had been performed on\npreviously completed welds.\n\n\n\n4\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$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31,\n2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum\npenalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015,\nthe maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. We have reviewed the circumstances\nand supporting documentation involved for the above probable violations and recommend that you\nbe preliminarily assessed a civil penalty of $50,100 as follows:\nItem number PENALTY\n3 $50,100\nWarning Items\nWith respect to items 2 and 4, we have reviewed the circumstances and supporting documents\ninvolved in this case and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to promptly correct these items. Failure to\ndo so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to items 1 and 3 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Magellan Pipeline Company, L.P.\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\nEnforcement 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).\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\n\n\n\n5\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 4-2020-5012 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 Enforcement Proceedings\n\n\n\n6\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Magellan Pipeline Company, L.P. a Compliance\nOrder incorporating the following remedial requirements to ensure the compliance of Magellan\nPipeline Company, L.P. with the pipeline safety regulations:\n1. In regard to Item Number 1 of the Notice pertaining to failure to follow its written\nspecification to record the welding parameters, Magellan Pipeline Company, L.P. must\nshow that the welding inspectors recorded the welding parameters for all welding\nactivities at the De Leon pump station during the Orion West Expansion project.\n2. In regard to Item Number 3 of the Notice pertaining to installation of pipe in a rocky ditch\nwithout padding or rock shield, Magellan Pipeline Company, L.P. must perform a coating\nsurvey (ACVG - Alternating Current Voltage Gradient Survey or DCVG - Direct Current\nVoltage Gradient Survey) to locate any holidays and evaluate the coating conditions of the\nburied pipeline.\n3. For Item 1, Magellan must submit to the Director within thirty (30) days of receipt f the\nFinal Order documentation that the review documents were completed and that the required\ninformation was recorded. If Magellan is unable to meet the above-mentioned\nrequirement, then Magellan must submit a proposed alternative to the Director to verify\nthe strength and mechanical properties of the welds.\n4. For Item 2, the coating survey must be performed within ninety (90) days of receipt of the\nFinal Order. Results of the survey must be provided to the Director within thirty (30) days\nof completion, and if any coating issues are detected, Magellan must submit a Repair Plan\nto the Director for review and approval within thirty (30) days of confirming coating\ndamage. Coating repairs must be completed within 180 days of approval of the Repair\nPlan.\n5. It is requested (not mandated) that Magellan Pipeline Company, L.P. maintain\ndocumentation of the safety improvement costs associated with fulfilling this Compliance\nOrder and submit the total to Mary L. McDaniel, Director, Southwest Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be reported in\ntwo 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.","truncated":false,"body_characters":31049}