{"operation":"document","citation":"CPF 42022014WL","title":"ROSE ROCK MIDSTREAM OPERATING, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-02-08","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.402(d)(5), 195.573(a)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022014wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022014wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42022014wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42022014WL","body":"Warning Letter involving ROSE ROCK MIDSTREAM OPERATING, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(d)(5),  195.573(a)(1). The case was opened on 2022-02-08 and is reported as closed as of 2022-02-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42022014WL_Warning Letter_02082022_(21-202689).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022014WL/42022014WL_Warning%20Letter_02082022_(21-202689).pdf\n\n42022014WL_Warning Letter_02082022_(21-202689)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022014WL/42022014WL_Warning%20Letter_02082022_(21-202689)_text.pdf\n\n42022014WL_Warning Letter_02082022_(21-202689)_text.pdf\n\nWARNING LETTER\nELECRONIC MAIL - RETURN RECEIPT REQUESTED\nFebruary 8, 2022\nGreg McIlwain\nSenior Vice President, Operations\nRose Rock Midstream Operating, LLC\n1300 Main Street\nHouston, Texas 77002\nCPF 4-2022-014-WL\nDear Mr. McIlwain:\nFrom February 1, 2021 through September 17, 2021, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCode (U.S.C.), inspected Rose Rock Midstream Operating LLC’s (Rose Rock) Semgroup Cushing\nSystem in Kansas and Oklahoma.\nAs a result of the inspection it is alleged that Rose Rock has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 195.402 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.\nRose failed to follow its written Standard Operating Procedures, Recognizing and Responding\nto Abnormal Operations, HLA.13 (Revision Date: 07/01/2021) for recognizing, reacting to,\nand documenting abnormal operations.\n\n\n\nDuring the inspection of Rose Rock’s records for abnormal operations, PHMSA found that the\ncauses of several of the abnormal operation events were not identified under the categories\nlisted in its procedure. PHMSA also identified that Rose Rock’s operation personnel failed to\nrecord and document data required to be reported for abnormal operation events in its Incident\nManagement System (IMS) Application as required by its procedure Standard Operating\nProcedures, Recognizing and Responding to Abnormal Operations, HLA.13, 7.9 Reviewing\nOperator Response.\nSubsequently, Rose Rock personnel stated during an informal consultation that operations\npersonnel had not entered certain abnormal operations events data into its IMS Application.\nRose Rock management has conducted training with personnel on recognizing, reacting to,\nand documenting abnormal operations in its IMS application as per its procedure.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a)…\n(d) Abnormal operation. The manual required by paragraph (a) of this section must\ninclude procedures for the following to provide safety when operating design limits\nhave been exceeded:\n(1)…\n(5) Periodically reviewing the response of operator personnel to determine the\neffectiveness of the procedures controlling abnormal operation and taking\ncorrective action where deficiencies are found.\nRose Rock failed to periodically review the response of personnel to determine the\neffectiveness of its procedures for controlling abnormal operating and taking corrective actions\nwhen deficiencies were found. Rose Rock’s Standard Operating Procedures, Recognizing\nand Responding to Abnormal Operations, HLA.13 (Revision Date: 07/01/2021), states\npersonnel will “Review the response(s) of personnel to each situation that resulted in an\nabnormal operation report to determine the effectiveness of the procedure.”\nDuring the inspection of Rose Rock’s records for abnormal operations, PHMSA found that\nRose Rock failed to review the response of operator personnel to determine the effectiveness\nof its procedure controlling abnormal operations for several abnormal operation events.\n3. § 195.573 What must I do to monitor external corrosion control?\n(a) Protected pipelines. You must do the following to determine whether cathodic\nprotection required by this subpart complies with § 195.571:\n(1) Conduct tests on the protected pipeline at least once each calendar year, but\nwith intervals not exceeding 15 months. However, if tests at those intervals are\nimpractical for separately protected short sections of bare or ineffectively coated\npipelines, testing may be done at least once every 3 calendar years, but with\nintervals notexceeding 39 months.\n2\n\n\n\nRose Rock failed to conduct tests on its cathodically protected pipelines at least once each\ncalendar year, with intervals not exceeding 15 months in accordance with § 195.573(a)(1) for\nits Semgroup Cushing System.\nPHMSA reviewed Rose Rock’s cathodic protection DOT Annual Survey Reports for the\ncalendar year 2020 and discovered that no cathodic protection tests were conducted at the\nfollowing test stations:\nArlington to Burton Segment\n SEM Crude MP 31.4 test station\n Trailwest E/W Sand MP 47.2 test station;\nLyons to Burton Segment\n Burmac Rd. MP 36.2 test station\n Abandoned RR MP 10.6 test station;\nHaven Station\n East end of 6\" loop by East 12\" trap #3 test station;\nBurrton to Eldorado Segment\n 72nd & Mission E/W Rd.-MP 10.5 test station\n 96th & Meridian Sharps Junction- MP 15.8 test station\n N. 143rd East MP 27 test station\n Arlington Junction-3 test stations at the meter manifold\n Hudar Junction Launcher NE 90th Ave. MP 3 test station;\nHanston to Hudson Segment\n NE 90th Ave. N/S MP 63;\nPixley – Alva Segment\n Railroad Xing TS South Side Pixley Station North; and\nWhelan to Isabel Segment\n MP 8.2 test station\n MP 11.59 test station.\nRose Rock personnel explained that a third-party vendor (MATCOR) was contracted to\nperform cathodic protection tests in calendar year 2020 and failed to perfom at the\naforementioned test stations. The survey was completed for calendar year 2021 as required.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, Rose Rock Midstream Operator, LLC is subject\nto a civil penalty not to exceed $225,134 per violation per day the violation persists, up to a\nmaximum of $2,251,334 for a related series of violations. For violations occurring on or after\nJanuary 11, 2021, and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violations occurring on or after July 31, 2019, and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations.\n3\n\n\n\nFor violations occurring on or after November 27, 2018, and before July 31, 2019, the maximum\npenalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed\n$2,132,679. For violations occurring on or after November 2, 2015, and before November 27,\n2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nRose Rock Midstream Operator, LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 4-2022-014-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document, you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nMary L. McDaniel, P.E.\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Todd Nardozzi, Director, Regulatory Compliance, Energy Transfer Company,\ntodd.nardozzi@energytransfer.com\n4","truncated":false,"body_characters":8973}