CENEX PIPELINE LLC — Notice of Probable Violation

case documentOfficial PDFCENEX HARVEST (520035012).pdf#

520035012_final order_06212005.pdf, page 1Official PDFu.s. Deportment of Transportation Plpelln. and HazardOus Mm.rtall safety Admlnlltratton 400 ~-;:; s.w. ;.~.. D.c. ~ JUN 2 1 ax1J Dan Knepper Vice President, Energy Operations Cmex Harvest 803 Highway 212 South Laure ~ MT 5 9044 Rc: CPF No. S.2003.SO12 Dear Mr. Knepper: Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes findings of violation and L.~ a civil penalty for those violations. I Kknowledge your wire transfer dated February 17, 2004, for $25,000 as payment in full of the civil penalty u.~~ in the Final Order. The Final Order acknowledges your completion of the proposed compliance order items to comply with the pipeline ~afety regulations and }'Our submission of amended procedures addressing the inadequacies cited in the Notice. This case is now clolcd. under 49 C.F.R. § 190.5. Your receipt of the F ina1 Order consti tu tea service 0 f that document Sincerely, /Lt Compliance Pipeline Safety Enclosure#

520035012_final order_06212005.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIAlS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, DC 20590 In the Matter 0 f CenexHarvest, Respondent } ) ) ) CPF No. S-2003-SO12 FINAL ORDER On J\U1e 3t 2003t the Directort Western Regio~ Office of Pipeline Safetyt issued Respondent a Notice of Probable Vio1atio~ Proposed Compliance Order, Proposed Civil Penalty and Notice of Amendment (Notice) in Kcordance with 49 C.F.R. § 190.207. The Notice pro posed assessing a civil penattyof$25tOOO for the alleged violation of 49 C.F.R. 195.401(a) and proposed specific actions that Respondent take to comply with the requirements of Part 195. The Notice also proposed that Respondent amend its operating and maintenance procedW'CS. Respondent submitted a request by letter dated June 30. 2003. for a 6O-day extension to respond to the Notice. which the Di~tor, Western Region. OPS granted. Respondent responded to the Notice by letter dated August 29, 2003. and did not contest the allegations. the amount of the proposed civil pcoalty, the proposed compliance order, or the notice of inadequate procedures. Respondent submitted a wire transfer in the amount of the proposed civil penalty (525.000), waiving further right to respond. and authorizing the entry of this Final Order. FINDINGS OF VIOLA nON Pursuant to § 190.2O9(aXl) and 49 U.S.C. § 60122, I find that Respondent violated the following sections of 49 C.F.R. Part 195 as described more completely in the Notice: 195.401(a) (Item 1) - failing to properly locate an active product pipeline during a replacement project in Glendive, Montana, resulting in the striking and rupture of that pipeline by Respondmt's contractor during horizontal directional drilling; 195 .4 28( a) (Item 6) - failing to collect testing and calibration records for overpressure safety devices on the Front Range Pipeline from the Canadian border to the Santa Rita pump station;and#

520035012_final order_06212005.pdf, page 32 195 . 567 (b X I) (Item 8) - fai ling to install . cadIOdic protection test lead at die Mi Ie Post 172.1 cuing. in order to have leads at intervals frequent enough to obtain electrical measurement demonstrating the adequacy of the cathodic protection system. TbeIe fiM~-!" of violation will be ~deraI prior offmscs in 'Y IUblequeDt enforcement action tUtn against Respondent. Having reviewed the record aIKi considaQ! the U8C18rDcnt criteria, I U~S the civil penalty of S2S,OOO for the violation of 49 C.F.R. 19S.401(a), already paid by Respondent. COMPUANCEORDER The Notice pr~oIed a compliance ~ with rapect to ItaDs 6 8M! 8 in die Notice for violationa of 49 C.F.R. §§ 19S.428(a) aIM! 19S.S67(b)(1). UDder' 49 U.S.C. f 6O118(a), CKh peraiii who enSI8eI in the transportation of hazardous liquids or who OWDJ or operates a pipeline facility i. required to comply with die applicable safety stalxlards elt8b1i1hed Imder Cbapta' 601. The Regioaal Director baa ~CatCCI that J~lMimt has bepa collectiDladcq uate ovei"jil~ device teIting aIM! cah'brllion records for the C~an )x)rdcr to the Sauta Rita pump ItatiCXlleglDalta of the Front Range Pipeline and has iDItalJed a felt lc1d at Mile Post 172.1 to comply with tbepl 0IJ08ed compliance order. Accordingly, since compliance hu been achieved with respect to this violation, the compliance tennJ are not included in this Order. AMBNDMENTOFPROCF.D1~ The Notice a1ao alleged that catain ofResporxla It, proceciula wae inadequate (Items 5 n 7). Respondent submitted amended procedures for the Western Region to review. The Dira:tor, Western Region, OPS has indicated dJatRespo ndent' I amended procedures address the inadequacies cited in the Notice. Accordingly, I find that Respondent's original procedures u delCribed in the Notice wa'e in~U8te to ~ safe opeI~ of its pipeline IyItaD. but that R~OOaIt has co"a:-~ the identified in.teqUKies. WARNINGn'EMS The Notice did not propoee a civil paJalty CX' c:orrective action for failing to update drawings for the Santa Rita pump ltItion after co nItruc1ion aIKI prior to opa'8bon of the 8-inch Santa Rita to Cutbank pipeline (Item 2); failing to docummt repairs to previously-noted Item valve deficiencies (Item 3)~ failing to have adequate markers at severallocatiODJ along the pipeline right-of-way (Item 4); and failing to consider IrMI account for voltage drop at ODe (()Cation when conducting pipe-to-lOil potential cadM»dic protection monitoring surveys (!tan 9). lberg:.xii, these are conIidcred wmng items. Respondent is warned that if it 00cs DOt take ..,..-\lfII-iate ICtion to correct these items, cnfon:ement Ktion will be taken if a subsequent inspection reveal. a violation.#

520035012_final order_06212005.pdf, page 4, The teml s and conditions of this Final Order are effective on receipt. This case is now closed. JUN 21m Date Issued &"#