{"operation":"document","citation":"CPF 42021043NOA","title":"VALERO PARTNERS OPERATING CO. LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-09-24","effective_on":null,"summary":"CLOSED notice of amendment citing 195.202, 195.402(a), 195.402(c)(3), 195.452(f)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021043noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021043noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42021043noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42021043NOA","body":"Notice of Amendment involving VALERO PARTNERS OPERATING CO. LLC. PHMSA's enforcement data identifies the cited regulations as 195.202,  195.402(a),  195.402(c)(3),  195.452(f)(4). The case was opened on 2021-09-24 and is reported as closed as of 2022-09-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42021043NOA_Closure Letter_09302022_(20-178576).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021043NOA/42021043NOA_Closure%20Letter_09302022_(20-178576).pdf\n\n42021043NOA_Closure Letter_09302022_(20-178576)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021043NOA/42021043NOA_Closure%20Letter_09302022_(20-178576)_text.pdf\n\n42021043NOA_Notice of Amendment_09242021_(20-178576).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021043NOA/42021043NOA_Notice%20of%20Amendment_09242021_(20-178576).pdf\n\n42021043NOA_Notice of Amendment_09242021_(20-178576)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021043NOA/42021043NOA_Notice%20of%20Amendment_09242021_(20-178576)_text.pdf\n\n42021043NOA_Operator Response to Notice and Request Time Extension_10222021_(20-178576).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021043NOA/42021043NOA_Operator%20Response%20to%20Notice%20and%20Request%20Time%20Extension_10222021_(20-178576).pdf\n\n42021043NOA_Operator Response to Notice_10222021_(20-178576).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42021043NOA/42021043NOA_Operator%20Response%20to%20Notice_10222021_(20-178576).pdf\n\n42021043NOA_Notice of Amendment_09242021_(20-178576)_text.pdf\n\nNOTICE OF AMENDMENT\nELECTRONIC MAIL - RETURN RECEIPT REQUESTED\nSeptember 24, 2021\nFred Hampton\nVice President\nValero Partners Operating Company. LLC\nOne Valero Way\nSan Antonio, Texas 78249\nCPF 4-2021-043-NOA\nDear Mr. Hampton:\nFrom May 4, 2020 through May 8, 2020, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code virtually\ninspected Valero Partners Operating Company. LLC’s (Valero) operations and maintenance\nprocedures.\nBased on the inspection, PHMSA has identified the apparent inadequacies found within Valero’s\nplans or procedures, as described below:\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.\nValero failed to have adequate procedures to construct its pipelines in accordance with\ncomprehensive written specifications or standards consistent with Part 195. The procedures\nfor construction are included in Valero’s Operation, Maintenance, and Emergency\nProcedures Manual, Revision 5.0 (September 2019). The procedures that do not provide\nprocedures to complete the process satisfying the requirements of 49 CFR § 195.202\nincluding:\n\n\n\nA. Section 7.1.6 Design Requirements, Aboveground Breakout Tanks does not detail the\ndesign and construction of breakout tanks to withstand the internal pressure produced\nby the hazardous liquid to be stored therein and any anticipated external loads in\naccordance with § 195.132(a);\nB. Section 7.1.3 Construction Inspection and Inspector Training does not detail what\nindustry standards or company procedures were applicable when defining inspector's\ntraining in accordance with § 195.204;\nC. Section 2.11.2 Inspection Requirements for Breakout Tanks does not detail the\nprocedures the operator will use for repairing, altering, and reconstructing breakout\ntanks in accordance with § 195.205(a);\nD. Section 7.1.2 Material Inspection does not detail how the operator will inspect a\ncomponent when it is delivered to the site of installation in accordance with § 195.206;\nE. Section 7.1.2 Construction Requirements New Pipe does not include the statement that\nAPI RP 5LT will be used when transporting pipe by truck in accordance with §\n195.207(c);\nF. Section 7.10 Welding does not include a statement that welding must be protected from\nweather conditions that could impair the quality of completed welds in accordance with\n§ 195.224;\nG. Section 7.11.3 Testing Requirements and Pipeline Construction (VTDC-ES-20-001)\nand Section 10.8 Inspection of Production Welds, which are used for welds and welding\ninspections are inadequate. The Operation, Maintenance & Emergency Procedures\nManual states, “at least 10% of girth welds made by each welder and welding operator\nduring each welding day must be nondestructively tested over the entire circumference\nof the weld, selected at random by the operator” for new construction. The Pipeline\nConstruction (VTDC-ES-20-001) states, “one hundred percent (100%) of production\nwelds shall be subject to visual and radiographic inspection by Valero’s Welding\nInspector employed by Valero exclusively for the purpose.” The two procedures are\ncontradictory, and not in accordance with § 195.228(a);\nH. Section 7.11.1 Testing Methods does not specify how Engineering Specifications (ES)\nor Shell Design and Engineering Practices (DEPs) assisted in the development of Non-\nDestructive Testing (NDT) procedures in accordance with § 195.234(c);\nI. Section 7.3.3 Cover Over Buried Pipeline does not specify what additional protection\nis equivalent to the minimum required in accordance with § 195.248(b);\nJ. Section 7.3.6 Clearance Between Pipe and Underground Structures does not describe\nwhat type of provisions should be made if the operator cannot meet the required 12\ninches of clearance from underground structures in accordance with § 195.250;\nK. Section 7.3.4 Backfill does not define “rocky terrain” or reference specifications when\n2\n\n\n\ndiscussing padding or the type of rock shield required in accordance with\n§ 195.252(b);\nL. Section 7.3.5 Crossing of Railroads and Highways does not describe how pipe at each\nrailroad or highway crossing must be installed to adequately withstand dynamic forces\nand how those forces will be determined in accordance with § 195.256;\nM. Section 7.1.6 Design Requirements, Valves does not detail who are the authorized\nemployees and how unauthorized people are prevented access to valves in accordance\nwith § 195.258(a);\nN. Section 7.1.6 Design Requirements, Valves does not state that an Emergency Flow\nRestrictive Device (EFRD) study must be completed to minimize damage or pollution\nfrom accidental discharge in accordance with § 195.260;\nO. Section 7.1.6 Design Requirements, Aboveground Breakout Tanks does not describe a\nprocess that requires venting and relief devices are sized for adequate capacity,\ninstalled, and tested prior to placing the tank in service in accordance with § 195.264(e);\nP. Appendix B.10, Pressure Testing is inadequate because:\ni. ii. iii. iv. The Abnormal Operating Condition table does not define conditions that could be\nexperienced during a pressure test;\nDoes not include a calculation of the safe distance while conducting a pressure test;\nMeasuring pressure in at least one hour increments is too long a duration to record\nreadings during the test; and\nTest water disposal procedures must refer to obtaining permits, testing of the water\nbefore disposal, and testing water sources prior to putting water into the pipeline.\nOperator procedures must include all four of the elements listed (i, ii, iii, and iv) in\naccordance with § 195.302(a);\nQ. Section 7.8.1 Subpart E Pressure Test Requirements does not define “auxiliary piping\nand fittings.” Pipe that is two inches in outside diameter could see pressure directly\nfrom the mainline and would apply under the requirements of 49 CFR Subpart E-\nPressure Testing in accordance with § 195.305;\nR. Section 2.11.9 Pressure Testing Aboveground Breakout Tanks does not provide\nadequate detail in the process of conducting a leak test for a breakout tank in accordance\nwith § 195.307(c);\nValero must amend its procedures to adequately describe the requirements for the\nprocedures listed above and to ensure compliance with § 195.202.\n3\n\n\n\n2. 3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted\nValero’s Operation, Maintenance, and Emergency Procedures Manual, Revision 5.0\n(September 2019), is inadequate. Section 1.5 Roles and Responsibilities does not have a\nprocedure in place to address management of change to ensure that revisions/changes are\nimplemented in accordance with § 195.402(a).\nValero must amend its procedures to adequately describe the requirements for the\nprocedure listed above and to ensure compliance with § 195.402(a).\n§ 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\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(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.\nValero’s Operation, Maintenance, and Emergency Procedures Manual, Revision 5.0\n(September 2019), are inadequate. Specifically:\nA. Section 5.5.7 Release Volume Estimates used for calculating spill volume of accidents\nis inadequate. The procedures do not sufficiently calculate and provide a reasonable\ninitial estimate of the amount of released product in accordance with § 195.52(c);\nB. Section 7.9.2 Repair Timelines does not define what conditions could adversely affect\nsafe operation of the pipeline, criteria to define what is reasonable time for repairs, or\n4\n\n\n\na definition of “immediate and non-immediate hazards in non-HCA areas” in\naccordance with § 195.401(b)(1);\nC. Section 7.9.1 Repair Requirements and Appendix B.11, Pipeline Repairs do not\ndescribe what the responsibilities are of operator personnel and all required equipment\nand resources needed to make repairs in a non-HCA area of a pipeline in accordance\nwith § 195.402(c)(14);\nD. Appendix B.07, Abnormal Operating Conditions does not describe how the operator\nwill periodically review the response of operating personnel to determine the\neffectiveness of the procedures for controlling abnormal operation and taking\ncorrective action where deficiencies are found in accordance with § 195.402(d)(5);\nE. Appendix B.08, Pipe Movement used for moving pipeline is inadequate. The procedures\ndo not contain a process for finding whether the pipeline does or does not include\nvalves, flanges, fittings, concrete coatings, sags, overbends, field bends, or other\nattached appurtenances in the section to be lowered or otherwise moved if records do\nnot exist. There is no process to calculate longitudinal stresses when moving a pipeline.\nThere are no considerations for equipment in the procedure for assisting in moving the\npipe during operation. There are no standards restraining the pipeline laterally.\nAdditionally, there is no reference for the necessary type of documentation that\ncompromises the records in accordance with § 195.424(b)(2);\nF. Product Storage – Above Ground Welded Steel Tank (VTDC-ES-40-008), Engineering\nData Requirements, Section 9.1 Contractor’s Submittal is inadequate because it lacks\nspecific detail to determine that each protective device is functioning properly, is in\ngood mechanical condition, and is adequate from the standpoint of capacity and\nreliability of operation for the tank service in accordance with § 195.428(a);\nG. Section 5.4.5 Emergency Equipment and/or Supplies does not describe for maintaining\nfirefighting equipment in accordance with § 195.430;\nH. Appendix B.11, Pipeline Repairs does not define “armadillo sleeve” or “pumpkin\nsleeve” as an approved Type B sleeve or Over Sleeve method in the approved methods\nof repair in accordance with § 195.452(h)(1);\nI. Section 3.5 Supervisor Knowledge does not describe specific requirements for\ncorrosion training or professional certification in accordance with § 195.555;\nJ. Section 3.1.2 Protective Coatings does not define what constitutes a low stress soil area\nand a high stress soil area in accordance with § 195.557(a);\nK. Section 3.1.2 Protective Coatings does not include specific requirements for inspecting\nprotective coating to include surface preparation, application techniques, and\ninspection requirements in accordance with § 195.561(a);\nL. Appendix B.13, Corrosion Control does not include a test lead maintenance procedure\nin accordance with § 195.567(c);\n5\n\n\n\n4. M. Appendix B.13, Corrosion Control, Exposed Pipe Inspection does not include specific\ndetails on performing exposed pipe inspections in accordance with § 195.569;\nN. Section 3.1.4 Cathodic Protection of Pipelines does not include procedures directing\npersonnel to monitor for excessive cathodic protection current in accordance with\n§ 195.571;\nO. Appendix B.13 Corrosion Control, Close Interval Survey does not include details for\ncalibration and inspection frequency in accordance with § 195.573(a)(1);\nP. Section 3.1.6 Electrical Isolation and Section 3.1.8 Casing Monitoring does not include\ndetails on frequency of testing and reporting format in accordance with § 195.575;\nQ. Section 3.1.7 Interference Currents and Appendix B.13, Testing for Interference\nCurrents and Remedial Measures do not include details on mitigating interference\ncurrents frequency of testing and reporting format in accordance with § 195.577(a);\nR. Section 3.3.1 General Requirements does not state that breakout tank piping will be\ndesigned to minimize low flow to minimize the potential for water accumulation and\nareas of zero/low flow (i.e., dead legs) in accordance with § 195.579(a).\nS. Section 3.3.1 General Requirement and Section 3.3.2 Corrosion Inhibitors and\nMonitoring do not include specific guidance on measuring the corrosion potential of a\nproduct or the effectiveness of chemical inhibitor programs using corrosion coupons\nand/or sampling in accordance with § 195.579(b)(2);\nT. Section 3.3 Internal Corrosion Control does not include specific guidance on how to\nperform an internal corrosion inspection or the distance the inspection should continue\nup/downstream from removed pipe in accordance with § 195.579(c); and\nU. Section 3.4.4 Remaining Strength Calculations does not include specific guidance on\ndetermining the remaining strength on corroded pipe in accordance with § 195.587.\nValero must amend its procedures to adequately describe the requirements for the\nprocedures listed above and to ensure compliance with § 195.402(c)(3).\n§ 195.452 Pipeline integrity management in high consequence areas.\n(a)…\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions drawn\nfrom results of the integrity assessments, and other maintenance and surveillance\ndata, and evaluation of consequences of a failure on the high consequence area. An\n6\n\n\n\noperator must include, at minimum, each of the following elements in its written\nintegrity management program:\n(1)…\n(4) Criteria for remedial actions to address integrity issues raised by the\nassessment methods and information analysis (see paragraph (h) of this section);\nValero’s Operation, Maintenance, and Emergency Procedures Manual, Revision 5.0\n(September 2019), is inadequate to provide the provisions for § 195.452(F)(4).\nSpecifically:\nA. Appendix B.11, Pipeline Repairs used for remedial action to address integrity issues\nis inadequate because it does not contain sufficient procedures for evaluating cracks\nand crack-like features in the pipeline in accordance with § 195.452(f)(4); and\nB. Section 6.2.2 Conditions Discovered by ILI does not have adequate procedures in\nplace to call out for discovery and no immediate actions to reduce pressure and\nproceed with excavation and repairs for a metal loss greater than 80% in accordance\nwith § 195.452(h)(4)(i)(A).\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 30 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.\n7\n\n\n\nIt is requested (not mandated) that Valero Partners Operating Co. LLC maintain documentation of\nthe safety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Mary L. McDaniel, Director,\nSouthwest Region, Pipeline and Hazardous Materials Safety Administration. In correspondence\nconcerning this matter, please refer to CPF 4-2021-043-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\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n8\n\n42021043NOA_Closure Letter_09302022_(20-178576)_text.pdf\n\nELECTONIC MAIL – RETURN RECEIPT REQUESTED\nSeptember 30, 2022\nFred Hampton\nVice President\nValero Partners Operating Company. LLC\nOne Valero Way\nSan Antonio, Texas 78249\nCPF 4-2021-043 NOA\nDear Mr. Hampton:\nFrom May 4 through May 8, 2020, a representative from the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code, conducted a\nvirtual inspection of Valero Partners Operating Co. LLC (Valero) procedures. As a result of the\ninspection, Valero was issued a Notice of Amendment on September 24, 2021, which proposed\namendment of your procedures.\nValero submitted its amended procedures on March 31, 2022. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\nThis letter is to inform you that no further action is necessary, and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":20723}