NAVAJO REFINING COMPANY — Notice of Probable Violation

520035030_final order_07282004.pdf, page 1Official PDF~J US~~ ~ ~TofO1 ReMGfCh C81d SpecI~ ~~.. Adn-~~"vI'oiX1 400 SevetIt" 51 W8sh~~ 0 C sw ~ JUl 2 8 m4 Mr. Jim G. Townsend Vice President, Pipeline and Terminals Navajo Refining Co. - Pipeline Division P.o. Box IS9 Artesi~ New Mexico 88211-0159 Re: CPF No. S-2003-S030 Dear Mr. T ownlelMi: Enclosed is the Final Order issued by the Associate Administrator for Pipeline Safety in the above-referenced case. It makes a finding of violation and finds that you have completed the actions specified in the Notice required to comply with the pipeline safety regulations. The Final Order also finds that)")U have addressed the inadeqUKies in your procedures that were cited in the Notice of Amcrxlment. This case is now closed. Your receipt of the Final Order constitutes service oftbat document under 49 C.F.R. § 190.S. Sincerely, ~ ~1l James Re)11Olds Pipeline Compliance Registry Office of Pipeline Safety Enclosure CERTIFIED MAIL - RETURN RECEIPT REOUESTED#

520035030_final order_07282004.pdf, page 2DEPARTMENT OF TRANSPORTAllON RESEARCH AND SPECIAL PROGRAMS ADMINISTRA nON OFFICE OF PIPELINE SAFETY WASHINGTON, DC 20S90 In the Matter of Navajo Refining Co., Respondent CPF No. 5-2003-5030 FINAL ORDER On August 12-14 and 26-27, 2003, pursuant to 49 V.S.C. § 60117, rqJresentatives of the Office of Pipeline Safety (OPS) and the State of New Mexico conducted an on-sjte pipeline safety inspection of Respondent's integrity management program and records in Artesia, New Mexico. As a result oftbeinspection, the Director, WestemRegion, OPS, issued to Respondent by letter-dated ~ber 8,2003, a Notice of Probable Violation, Proposed Compliance Order, and Notice of Amendment (Notice). In accordance with 49 C.F .R. § 190.207, the Notice proposed finding that Respondent had violated 49 C.F.R. § 195.452 and proposed that R~ndent take certain measures to correct the alleged violation. The Notice also alleged inadequxies in Respondent's integrity management program and proposed to require amendment of Respondent's procedures to comply with the requirementsof49 C.F.R. § 195.452. Respondent responded to the Notice by letter dated January 7. 2004 (Response). Respondent did not contest the allegations but provided infonnation concerning the corrective actions it has tak~ including copies of its revised procedures. Respondent did not request a hearing. and therefore has waived its right to one. F1NDING OF VIOLA nON In its Response. Respondent did not contest the violation alleged in Item 1 of the Notice. Accordingly, I find that Respondent violated the followjng sectjon of 49 C.F .R. Part 195. as more fully described in the Notice: 49 C.F.R. § 19S.452(c)(l)(i) - failing to U-~! the integrity of low frequency electric resistance welded (ERW) pipe susceptible to longitudinal seam failure using a method capable of~ing seam integrity. Respondent's pipeline from MP 179 to PD Terminal contains pre-1970 low freqUelx;y ERW pipe. Respondent's written baseline assessmei"d showed the integrity of the pipeline was assessed using a magnetic Oux leakage tool and a geometry tool. While these devices are capable of detecting corrosion and defoMlation anomalies. they are not capable of assessing seam integrity. See e.g., NACE RPOI 02-2002.#

520035030_final order_07282004.pdf, page 32 This finding of violation will be considered a prior offense in any subsequent enforcement Ktion taken against Respondent. COMPLIANCE ORDER The Notice proposed 8 compliance order with respect to Item I. Under 49 U .S.C. § 60 118(8), each person who engages in the transportation of hazardous liquids or who owns or operates 8 pipeline facility is required to comply with the applicable safety standards established under Chapter 601. The Director, Western Region. OPS. bas reviewed the corrective action taken by Respondent and has dctcnnined that compliance has been achieved with respect to this violation. Accordingly, it is not necessary to include the compliance terms in this order. AMENDMENT OF PROCEDURES Items 3, 4 and 5 in the Notice alleged inadequacies in Respondent's integrity management program and proposed to require amendment of Respondent's procedures to comply with the requirements of 49 C.F .R. § 195.452. In its response, Respondent submitted copies of its amended procedures. which the Regional Di~tor has reviewed. Accordingly. based on the results of this review, I find that Respondent's original procedures as described in the Notice were inadequate to ensure safe operation of its pipeline system, but that Respondent has COlTected the identified inadequacies. No need exists to issue an order di~ting amendment. W ARNING ~ The Notice did not propose a civil penalty or con-ective action for Item 2, but warned Respondent that it should take appropriate corrective action to correct the item. The warning was for: 49 C.F.R. § 19S.4S2(h)(4)(i)(D) - failing to immediately repair a dent located at the top of the pipeline at approximately the 12 o'clock position with a depth of9.4% of the nominal pipe diameter. Respondent presented infonnation in its response showing that it has addressed the cited item. Respondent is again warned that ifOPS finds a violation for this item in a subsequent inspection. enforcement Ktion will be taken. JUl 2 8 m4 Date Issued Stacey .~"' Associat . nistrator - for Pipeline Safety !"!.~~-#