# ENTERPRISE PRODUCTS OPERATING LLC — Warning Letter

- **operation:** document
- **citation:** CPF 42021035WL
- **title:** ENTERPRISE PRODUCTS OPERATING LLC — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2021-09-21
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.428(a), 195.432(c).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-42021035wl
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/42021035WL
**body:**

Warning Letter involving ENTERPRISE PRODUCTS OPERATING LLC. PHMSA's enforcement data identifies the cited regulations as 195.428(a),  195.432(c). The case was opened on 2021-09-21 and is reported as closed as of 2021-09-21. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

42021035WL_Warning Letter_09212021_(20-171912).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021035WL/42021035WL_Warning%20Letter_09212021_(20-171912).pdf

42021035WL_Warning Letter_09212021_(20-171912)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021035WL/42021035WL_Warning%20Letter_09212021_(20-171912)_text.pdf

42021035WL_Warning Letter_09212021_(20-171912)_text.pdf

WARNING LETTER
ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
September 21, 2021
Graham Bacon
Executive Vice President, Chief Operating Officer
Enterprise Products Operating, LLC
1100 Louisiana Street
Houston, Texas 77002
CPF 4-2021-035-WL
Dear Mr. Bacon:
From February 24, 2020 through March 12, 2021, representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
(U.S.C.), inspected Enterprise Products Operating LLC’s (Enterprise) Southern Hazardous Liquid
Pipeline System located in Texas, Louisiana, and Arkansas.
Based on the inspection, it is alleged that Enterprise has committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 195.428 Overpressure safety devices and overfill protection systems.
(a) Except as provided in paragraph (b) of this section, each operator shall, at
intervals not exceeding 15 months, but at least once each calendar year, or in the case
of pipelines used to carry highly volatile liquids, at intervals not to exceed 71∕2
months, but at least twice each calendar year, inspect and test each pressure limiting
device, relief valve, pressure regulator, or other item of pressure control equipment
to determine that it is functioning properly, is in good mechanical condition, and is
adequate from the standpoint of capacity and reliability of operation for the service
in which it is used.
Enterprise failed to inspect and test its overfill protection system on its highly volatile liquid
(HVL) aboveground breakout tank at intervals not to exceed 7 ½ months, but at least twice
each calendar year to determine that it is functioning properly, is in good mechanical condition,
and is adequate from the standpoint of capacity and reliability of operation for the service in
which it is used as specified per § 195.428(a).



Specifically, Enterprise failed to conduct tests and inspections on its HVL aboveground
breakout tanks’ overfill protection system at its McRae Tank Station in McRae, Arkansas for
the Tanks 1320 and 1321 during calendar years 2018 and 2019. Enterprise only performed
overfill protection system tests and inspections for Tanks 1320 and 1321 on September 9, 2018,
and September 4, 2019, which is considered annually and in violation of § 195.428(a).
2. § 195.432 - Inspection of in-service breakout tanks.
(a)…
(c) Each operator must inspect the physical integrity of in-service steel aboveground
breakout tanks built to API Std 2510 (incorporated by reference, see § 195.3)
according to section 6 of API Std 510 (incorporated by reference, see § 195.3).
Enterprise failed to timely inspect the physical integrity of its in-service steel aboveground
breakout tanks at its McRae Terminal in McRae, Arkansas. Enterprise records demonstrate
the in-service steel aboveground breakout tank was built to API Standard 2510 (IBR) and
within the prescribed period indicated in section 6 of API 510 (IBR).
American Petroleum Institute 510, Pressure Vessel Inspection Code: In-Service Inspection,
Rating, Repair, and Alteration,” Section 6.5.1.1 (Ninth Edition, June 2006), states:
Unless justified by a[n] RBI assessment, the period between internal or on-stream
inspections shall not exceed one half [of] the remaining life of the vessel or 10 years,
whichever is less. Whenever the remaining life is less than four years, the inspection
interval may be the full remaining life up to a maximum of two years. The interval is
established by the inspector or engineer in accordance with the owner/user’s quality
assurance system.
Internal inspections were performed on Enterprise’s TK-1320 Butane Storage Tank at McRae
Terminal in McRae, Arkansas in August 2009 and March 2020, which exceeds the maximum
10-year interval as required by § 195.432(c).
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, Enterprise Products Operating LLC is subject to
a civil penalty not to exceed $225,134 per violation per day the violation persists, up to a maximum
of $2,251,334 for a related series of violations. For violations occurring on or after January 11,
2021, and before May 3, 2021, the maximum penalty may not exceed $222,504 per violation per
day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For
violations occurring on or after July 31, 2019, and before January 11, 2021, the maximum penalty
may not exceed $218,647 per violation per day the violation persists, up to a maximum of
$2,186,465 for a related series of violations.
For violations occurring on or after November 27, 2018, and before July 31, 2019, the maximum
penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed
$2,132,679. For violations occurring on or after November 2, 2015, and before November 27,
2



2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum
penalty not to exceed $2,090,022.
We have reviewed the circumstances and supporting documents involved in this case, and have
decided not to conduct additional enforcement action or penalty assessment proceedings at this
time. We advise you to correct the items identified in this letter. Failure to do so will result in
Enterprise Products Operating, LLC being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 4-2021-035-WL. Be advised that all material you submit in response to this enforcement
action is subject to being 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).
Sincerely,
Mary L. McDaniel, P.E.
Director, Southwest Region
Pipeline and Hazardous Materials Safety Administration
cc: Jeff Morton, Sr. Director, Transportation Compliance, Enterprise Products,
jcmorton@eprod.com
Hans Deeb, Sr. Pipeline Compliance Engineer, Enterprise Products, hdeeb@eprod.com
Suzie Davis, Manager, Compliance, Enterprise Products, smdavid@eprod.com
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