# CENEX PIPELINE LLC — Warning Letter

- **operation:** document
- **citation:** CPF 520075032W
- **title:** CENEX PIPELINE LLC — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2007-11-07
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.116(e), 195.214(b), 195.402(c)(13), 195.402(d)(5), 195.403(b), 195.403(c), 195.505, 195.573(a)(1), 195.583(c).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520075032W
**body:**

Warning Letter involving CENEX PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.116(e),  195.214(b),  195.402(c)(13),  195.402(d)(5),  195.403(b),  195.403(c),  195.505,  195.573(a)(1),  195.583(c). The case was opened on 2007-11-07 and is reported as closed as of 2007-11-07. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520075032W_Warning Letter_11072007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075032W/520075032W_Warning%20Letter_11072007.pdf

520075032W_Warning Letter_11072007_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075032W/520075032W_Warning%20Letter_11072007_text.pdf

520075032W_Warning Letter_11072007_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 7, 2007
Mr. Dan Knepper
VP, Energy Operations
Cenex Pipeline, Inc.
803 Highway 212 South
Laurel, MT 59044
CPF 5-2007-5032W
Dear Mr. Knepper:
On April 2 through April 5, 2007, a representative of the Pipeline and Hazardous Materials
Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected
your Cenex Products Pipeline in Montana.
As a result of the inspection, it appears that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the
probable violations are:
1. §195.116 Valves.
Each valve installed in a pipeline system must comply with the following:
(e) Each valve other than a check valve must be equipped with a means for clearly
indicating the position of the valve (open, closed, etc.).
The upstream station valves for both the Rosebud and the Glendive stations are not
equipped with a means to clearly indicate the position of the valve. The Rosebud station
valve was installed after 1970 and therefore is required to be equipped with a means for
clearly indicating the position of the valve.



2. §195.214 Welding procedures.
(b) Each welding procedure must be recorded in detail, including the results of the
qualifying tests. This record must be retained and followed whenever the procedure
is used.
The qualification for Cenex’s in-service welding procedure does not have documentation
of the macro tests required under Section 2.4.4 of Appendix B of API 1104.
3. §195.402 Procedural manual for operations, maintenance, and emergencies.
c) Maintenance and normal operations. The manual required by paragraph (a) of
this section must include procedures for the following to provide safety during
maintenance and normal operations:
(13) Periodically reviewing the work done by operator to determine the
effectiveness of the procedures used in normal operation and maintenance and
taking corrective action where deficiencies are found.
CHS has a procedure for reviewing work done by personnel to evaluate the effectiveness
of normal operations and maintenance procedures but there is no documentation of any
reviews.
4. §195.403 Emergency Response Training.
(b) At the intervals not exceeding 15 months, but at least once each calendar year,
each operator shall:
(1) Review with personnel their performance in meeting the objectives of the
emergency response training program set forth in paragraph (a) of this section; and
(2) Make appropriate changes to the emergency response training program as
necessary to ensure that it is effective.
CHS has a procedure for reviewing emergency personnel training to see if personnel have
met emergency response training requirements but there is no documentation any
reviews.
5. §195.402 Procedural manual for operations, maintenance, and emergencies.
(d) Abnormal operation. The manual required by paragraph (a) of this section
must include procedures for the following to provide safety when operating design
limits have been exceeded;
(5) Periodically reviewing the response of operator personnel to determine the
effectiveness of the procedures controlling abnormal operation and taking
corrective action where deficiencies are found.
CHS has a procedure for reviewing work done by personnel to evaluate the effectiveness
of abnormal operation procedures but there is no documentation of any reviews being
conducted.
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6. §195.403 Emergency Response Training.
(c) Each operator shall require and verify that its supervisors maintain a thorough
knowledge of that portion of the emergency response procedures established under
195.402 for which they are responsible to ensure compliance.
There is no formal documentation of supervisor emergency response procedure
verifications.
7. §195.573 What must I do to monitor external corrosion control?
(a) Protected pipelines. You must do the following to determine whether cathodic
protection required by this subpart complies with Sec. 195.571:
(1) Conduct tests on the protected pipeline at least once each calendar year, but
with intervals not exceeding 15 months. However, if tests at those intervals are
impractical for separately protected short sections of bare or ineffectively coated
pipelines, testing may be done at least once every 3 calendar years, but with
intervals not exceeding 39 months.
There is no documentation why test stations that were read during the 2004/2005 survey
were not read during the 2006 survey.
8. §195.583 What must I do to monitor atmospheric corrosion control?
(c) If you find atmospheric corrosion during an inspection, you must provide
protection against the corrosion as required by Sec. 195.581.
Documentation shows that Cenex has completed atmospheric corrosion inspections but
there is no documentation showing the follow-up resulting from these inspections.
9. §195.505 Qualification program.
Each operator shall have and follow a written qualification program. The program
shall include provisions to:
(a) Identify covered tasks;
(b) Ensure through evaluation that individuals performing covered tasks are
qualified;
During this inspection the covered task for inspection and repair of powered valve
actuators was observed being done by a Cenex qualified individual. Because of
operational constraints the covered task could only be simulated. When the “qualified”
individual stepped through the checklist for “Inspect and Repair Electro-mechanical
Actuators” it became apparent that though the individual knew how to test the valve to
ensure it was functioning correctly, the individual did not have the confidence to
complete the electrical tests and repairs as shown on the checklist for the covered task,
“Inspect and Repair Electro-Mechanical Actuator”
.
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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
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 items identified in this letter.
Failure to do so will result in Cenex 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 5-2007-5032W. 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,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 G. Davis (#118877 & 119331)
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