# HOLLY ENERGY PARTNERS - OPERATING, L.P. — Warning Letter

- **operation:** document
- **citation:** CPF 42022037WL
- **title:** HOLLY ENERGY PARTNERS - OPERATING, L.P. — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2022-02-14
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.579(c).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-42022037wl
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/42022037WL
**body:**

Warning Letter involving HOLLY ENERGY PARTNERS - OPERATING, L.P.. PHMSA's enforcement data identifies the cited regulation as 195.579(c). The case was opened on 2022-02-14 and is reported as closed as of 2022-02-14. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

42022037WL_Warning Letter_02142022_(21-203267).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022037WL/42022037WL_Warning%20Letter_02142022_(21-203267).pdf

42022037WL_Warning Letter_02142022_(21-203267)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42022037WL/42022037WL_Warning%20Letter_02142022_(21-203267)_text.pdf

42022037WL_Warning Letter_02142022_(21-203267)_text.pdf

WARNING LETTER
ELECTRONIC MAIL - RETURN RECEIPT REQUESTED
February 14, 2022
Richard Voliva
President
Holly Energy Partners-Operating, L.P.
2828 North Harwood Street, Suite 1300
Dallas, Texas 75201
CPF 4-2022-037-WL
Dear Mr. Voliva:
From April 27, 2021 through December 2, 2021, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
(U.S.C.), inspected Holly Energy Partners-Operating, L.P.’s (HEP) Cheyenne facility in
Cheyenne, Wyoming.
As a result of the inspection, it is alleged that HEP has committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and
the probable violation is:
1. § 195.579 What must I do to mitigate internal corrosion?
(a) General. If you transport any hazardous liquid or carbon dioxide that would
corrode the pipeline, you must investigate the corrosive effect of the hazardous liquid
or carbon dioxide on the pipeline and take adequate steps to mitigate internal
corrosion.
(b)…
(c) Removing pipe. Whenever you remove pipe from a pipeline, you must inspect the
internal surface of the pipe for evidence of corrosion. If you find internal corrosion
requiring corrective action under § 195.585, you must investigate circumferentially
and longitudinally beyond the removed pipe (by visual examination, indirect method,
or both) to determine whether additional corrosion requiring remedial action exists in
the vicinity of the removed pipe.



HEP failed to inspect the internal surface of a pipe removed at its Cheyenne facility as required
by § 195.579(c). In September 2020, the joint of a pipe was removed and flanges were
installed at the demarcation from the Plains pipeline to the HEP pipeline. HEP did not perform
an internal corrosion inspection on the removed pipe to determine whether additional corrosion
requiring remedial action exists in the vicinity of the removed pipe. In the event that the internal
inspection was performed, the operator could not provide records proving the inspection took
place as required by § 195.589(c).
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, HEP 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 violation occurring on or after November 2, 2015, and before November
27, 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 item identified in this letter. Failure to do so will result in
Holly Energy Partners-Operating, L.P. 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 4-2022-037-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
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