TESORO LOGISTICS OPERATIONS LLC - MOUNTAIN REGION — Warning Letter

520075030w_warning letter_08032007_text.pdf, page 1Official PDFSENT TO COMPLIANCE REOIETTY Hardcopy Electronic ly 0 of Copies J / Date 12300 W Dakota Ave, SuIte 110 Lakewood, CO 80228 U. S. Department of Transportation Pipeline and Hazardous Materials Safety Administration WARNING LETTER CERTIFIED MAIL - RETURN RECEIPT RE UESTED August 3, 2007 Mr. John Moore VP, Pipelines and Terminals Tesoro Refining and Marketing Co. 300 Concord Plaza San Antonio, TX 78216 CPF 5-2007-5030W Dear Mr. Moore: On April 9-13, 2007, a representative of the Pipehne and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Salt Lake City Refinery Pipehnes in Salt Lake City, Utah. As a result of the inspection, it appears that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are: $195. 589 What corrosion control information do I have to maintain? (c) You must maintain a record of each analysis, check, demonstration, examination, inspection, investigation, review, survey, and test required by this subpart in sufficient detail to demonstrate the adequacy of corrosion control measures or that corrosion requiring control measures does not exist. You must retain these records for at least 5 years, except that records related to Secs. 195. 569, 195. 573(a) and (b), and 195. 579(b)(3) and (c) must be retained for as long as the pipeline remains in service.#

520075030w_warning letter_08032007_text.pdf, page 2$195. 583 What must I do to monitor atmospheric corrosion control? (a) You must inspect each pipeline or portion of pipeline that is exposed to the atmosphere for evidence of atmospheric corrosion, as follows: If the pipeline is located: Then the frequency of inspection is: Onshore At least once every 3 calendar years, but with intervals not exceeding 39 months At the time of the inspection, Tesoro did not produce any records to substantiate their atmospheric corrosion monitoring program. Under 49 United States Code, $ 60122, you are subject to a civil penalty not to exceed $100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000 for any related series of violations. We have reviewed the circumstances and supporting documents mvolved 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(s) identified in this letter. Failure to do so will result in Tesoro Refinmg and Marketing Co. 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 5-2007-5030W. Be advised that all material you submit m response to this enforcement action is subject to being made pubhcly available. If you beheve 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 quahfies for confidential treatment under 5 U. S. C. 552(b). Sincerely, Chris Hoi al Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Comphance Registry PHP-500 B. Brown (¹118902)#