{"operation":"document","citation":"CPF 520075035M","title":"CENEX PIPELINE LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2007-09-27","effective_on":null,"summary":"CLOSED notice of amendment citing 195.302(b), 195.306, 195.310(b)(10), 195.422(b), 195.426, 195.436, 195.442(c), 195.563(b), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075035m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075035m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520075035m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520075035M","body":"Notice of Amendment involving CENEX PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.302(b),  195.306,  195.310(b)(10),  195.422(b),  195.426,  195.436,  195.442(c),  195.563(b),  195.589(c). The case was opened on 2007-09-27 and is reported as closed as of 2008-01-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520075035M_notice of amendment_09272007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075035M/520075035M_notice%20of%20amendment_09272007.pdf\n\n520075035M_notice of amendment_09272007_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075035M/520075035M_notice%20of%20amendment_09272007_text.pdf\n\n520075035M_operator_response_to_notice_11012007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520075035M/520075035M_operator_response_to_notice_11012007.pdf\n\n520075035M_notice of amendment_09272007_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 27, 2007\nMr. Dan Knepper\nVP Energy Operations\nCHS Inc.\n803 Highway 212 South\nLaurel, MT 59044\nCPF 5-2007-5035M\nDear Mr. Knepper:\nOn April 17 through April 19, 2007, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected\nCHS procedures for operation and maintenance in Laurel, Montana.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nCHS plans or procedures, as described below:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nAnd\n§195.422 Pipeline Repairs.\n\n\n\n(a) Each operator shall, in repairing its pipeline systems, ensure that the repairs are\nmade in a safe manner and are made so as to prevent damage to persons or\nproperty.\nThe following procedures were inadequate to address testing of pipeline repairs:\n1.a. §195.302 General requirements.\n(b) Except for pipelines converted under §195.5, the following pipelines may be\noperated without pressure testing under this subpart:\n(1) Any hazardous liquid pipeline whose maximum operating pressure is\nestablished under §195.406(a)(5) that is-\n(i) An interstate pipeline constructed before January 8, 1971;\n(ii) An interstate offshore gathering line constructed before August 1, 1977;\n(iii) An intrastate pipeline constructed before October 21, 1985; or\n(iv) A low-stress pipeline constructed before August 11, 1994, that transports HVL.\n(2) Any carbon dioxide pipeline constructed before July 12, 1991, that-\n(i) Has its maximum operating pressure established under §195.406(a)(5); or\n(ii) Is located in a rural area as part of a production field distribution system.\n(3) Any low-stress pipeline constructed before August 11, 1994, that does not\ntransport HVL.\n(4) Those portions of older hazardous liquid and carbon dioxide pipelines for which\nan operator has elected the risk-based alternative under Sec. 195.303 and which are\nnot required to be tested based on the risk-based criteria.195.302(b), Except for\nlines converted under '195.5, certain lines listed under this section may be operated\nwithout having been pressure tested per Subpart E.\nCenex’s O&M manual Section I DESIGN, CONSTRUCTION AND REPAIR,\nHydrostatic Testing chapter, General Requirements does not describe any pipeline\nattributes that would preclude a pipeline from needing a pressure test. Instead the\nprocedure references Part 195 for exemption guidance.\nAn operator’s pressure test procedure must list the parameters that would preclude a\npipeline from needing a pressure test to be in compliance with Part 195. An operator\ncannot simply refer to Part 195 for guidance.\n1.b. §195.306 Test medium.\n(a) Except as provided in paragraph (b), (c), and (d) of this section, water must be\nused as the test medium.\n(b) Except for offshore pipelines, liquid petroleum that does not vaporize rapidly\nmay be used as the test medium if-\n(1) The entire pipeline under test is outside of cities and other populated areas;\n(2) Each building within 300 feet (91 meters) of the test section is unoccupied while\nthe test pressure is equal to or greater than a pressure which produces a hoop stress\nof 50 percent of specified minimum yield strength;\n(3) The test section is kept under surveillance by regular patrols during the test;\nand,\n2\n\n\n\n(4) Continuous communication is maintained along entire test section.\n(c) Carbon dioxide pipelines may use inert gas or carbon dioxide as the test medium\nif-\n(1) The entire pipeline section under test is outside of cities and other populated\nareas;\n(2) Each building within 300 feet (91 meters) of the test section is unoccupied while\nthe test pressure is equal to or greater than a pressure that produces a hoop stress of\n50 percent of specified minimum yield strength;\n(3) The maximum hoop stress during the test does not exceed 80 percent of\nspecified minimum yield strength;\n(4) Continuous communication is maintained along entire test section; and,\n(5) The pipe involved is new pipe having a longitudinal joint factor of 1.00.\n(d) Air on inert gas may be used as the test medium in low-stress pipelines.\nCenex’s O&M manual Section I DESIGN, CONSTRUCTION AND REPAIR,\nHydrostatic Testing chapter, Test Medium does not describe acceptable hydrostatic test\nmediums. Instead the procedure references Part 195 for acceptable hydrostatic test\nmediums.\nAn operator’s pressure test procedure must either list acceptable hydrostatic test mediums\nor refer to an industry standard that contains acceptable hydrostatic test mediums that will\nensure a pressure test is in compliance with Part 195. An operator cannot simply refer to\nPart 195 for guidance.\n1.c. §195.310 Records.\n(b) The record required by paragraph (a) of this section must include:\n(10) Temperature of the test medium or pipe during the test period\nCenex’s hydrostatic testing procedures do not require a record be kept of test medium\ntemperatures during a pressure test.\nAn operator’s pressure testing procedure must require that an operator keep a record of\nthe test medium used for the pressure test.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of\nthis section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with\neach of the requirements of this subpart and subpart H of this part.\nThe procedures for installing and repairing valves, fittings, and scraper/sphere facilities\nwere inadequate. In addition, multiple sections of the O&M procedures were deficient\nwith respect to security, damage prevention, and corrosion control. Details of the\ninadequacies are presented below:\n3\n\n\n\n2.a. §195.422 Pipeline Repairs.\n(b) No operator may use any pipe, valve, or fitting, for replacement in repairing\npipeline facilities, unless it is designed and constructed as required by this part.\nCenex’s procedure under Section I PIPELINE REPAIRS, Responsibility and Purpose\nchapter does not describe or reference an industry standard for requirements of pipe,\nvalves and fittings to ensure compliance with Part 195. Instead the procedure references\nPart 195 for pipe, valve, and fitting requirements.\nAn operator’s procedure must either list acceptable pipe, valve, and fitting requirements\nor refer to an industry standard that contains acceptable pipe, valve, and fitting\nrequirements that will ensure pipe, valves, and fittings used in their pipeline are in\ncompliance with Part 195. An operator cannot simply refer to Part 195 for guidance.\n2.b. §195.426 Scraper and sphere facilities.\nNo operator may use a launcher or receiver that is not equipped with a relief device\ncapable of safely relieving pressure in the barrel before insertion or removal of\nscrapers or spheres. The operator must use a suitable device to indicate that\npressure has been relieved in the barrel or must provide a means to prevent\ninsertion or removal of scrapers or spheres if pressure has not been relieved in the\nbarrel.\nCenex’s O&M procedures do not describe the requirements for a scraper and sphere\nfacility.\nA scraper or sphere facility must be equipped with a relief device capable of safely\nrelieving pressure in the barrel before insertion or removal of scrappers or spheres, and\nmust have a suitable device to indicate that pressure has been relieved in the barrel, or\nthere must be a means to prevent insertion or removal of scrapers if the pressure has not\nbeen relieved in the barrel. These requirements must be contained within the operator’s\nscraper or sphere facility procedure or the procedure must refer to an industry standard\nthat contains these requirements.\n2.c. §195.436 Security of facilities.\nEach operator shall provide protection for each pumping station and breakout tank\narea and other exposed facility (such as scraper traps) from vandalism and\nunauthorized entry.\nCenex’s O&M Manual Section C SIGNS AND SECURITY, Security Of Facilities\nchapter, states “Protection from vandalism and unauthorized entry will be provided for\neach breakout tank area, pump station, exposed scraper trap and other exposed facilities\n(per 49 CFR Section 195.436), unless due to other factors such as the remoteness of the\nlocation it is not deemed necessary.”\nSection 195.436 requires protection for facilities from vandalism and unauthorized entry\nregardless of a facility’s remoteness therefore an operator’s procedure cannot simply state\n4\n\n\n\nthat protection for vandalism and unauthorized entry is not required if the facility is in a\nremote location.\n2.d. §195.442 Damage Prevention Program\n(c) The damage prevention program required by paragraph (a) of this section must,\nat a minimum:\n(2) Provides for notification of the public in the vicinity of the pipeline and actual\nnotification of persons identified in paragraph (c)(1) of this section of the following\nas often as needed to make them aware of the damage prevention program:\nCenex’s O&M manual Section D, DAMAGE PREVENTION PROGRAM, states “One\nof the major goals of the “One-Call” program is to encourage requests for pipeline\nlocations in construction areas”. Section D however does not include or reference\nmethods to be used by Cenex to achieve this goal.\nAn operator’s damage prevention program procedure must include or reference methods\nthat will be used to ensure that the public who are in the vicinity of the operator’s\npipeline are notified of the proximity of the pipeline, the damage prevention program,\nand precautions to be taken when excavating. Additionally the damage prevention\nprogram procedure must describe or reference actual notification methods to be used to\ninform individuals involved in excavation activities in the area of the operator’s pipeline.\nThese notifications must include information about the operator’s damage prevention\nprogram and steps that must be taken when excavating.\n2.e. §195.442 Damage Prevention Program\n(c) The damage prevention program required by paragraph (a) of this section must,\nat a minimum:\n(4) If the operator has buried pipelines in the area of excavation activity, provide\nfor actual notification of persons who give notice of their intent to excavate of the\ntype of temporary markings to be provided and how to identify the markings.\n(5) Provide for temporary marking of buried pipelines in the area of excavation\nactivity before, as far as practical, the activity begins.\nCenex explained the process they use for receiving, recording, notifying, and temporary\nmarking activities used during pipeline locating. This process however is not a written\nprocedure in any of Cenex’s manuals.\nAn operator’s damage prevention program must provide or reference instructions to\npipeline personnel who 1) receive notices of the intention to excavate, 2) notify those\nwho have given notice to excavate, 3) locate and/or mark the operator’s pipeline in\nresponse to notices to excavate, 4) record of all activities involved in response to a notice\nto excavate.\n2.f. §195.563 Which pipelines must have cathodic protection?\n(b) Each buried or submerged pipeline converted under Sec. 195.5 must have\ncathodic protection if the pipeline--\n5\n\n\n\n(1) Has cathodic protection that substantially meets Sec. 195.571 before the pipeline\nis placed in service; or\n(2) Is a segment that is relocated, replaced, or substantially altered.\nCenex’s O&M manual Section H. CORROSION CONTROL, Cathodic Protection\nchapter does not address converted pipelines that had effective cathodic protection prior\nto conversion or when the converted pipeline is a segment that has been relocated,\nreplaced, or substantially altered.\nAn operator’s procedure must include or reference a requirement for a pipeline that is\nconverted to service. That requirement must state that if the pipeline had adequate\ncathodic protection meeting the requirements of Sec. 195.571 prior to conversion to\nservice then after the conversion to service has occurred that pipeline must maintain its\ncathodic protection. Additionally the operators procedure must require that if a converted\nsegment is relocated, replaced or substantially altered that segment must then have\ncathodic protection applied to it.\n2.g. §195.589 What corrosion control information do I have to maintain?\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by this\nsubpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that corrosion requiring control measures does not exist. You must\nretain these records for at least 5 years, except that records related to Secs. 195.569,\n195.573(a) and (b), and 195.579(b)(3) and (c) must be retained for as long as the\npipeline remains in service.\nCHS’s O&M manual Section H. CORROSION CONTROL Chapter for Monitoring\nExternal Corrosion Control states “The following electrical tests have or will be\nperformed as required on all protected pipeline systems and a report will be maintained\nuntil the next scheduled test\n(a) Pipe to soil potential\n(b) Tank to soil potential\n(c) Casing to soil potential\n(d) Insulated flange potential\n(e) Foreign structure corrosion bond\n(f) Rectifier inspection”.\nAn operator’s corrosion control procedure must require that records of annual pipe to soil\npotentials, be kept for the life of the system. The corrosion control procedure must\nrequire that all other records listed in Cenex’s procedure be kept for a minimum of 5\nyears.\n6\n\n\n\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue a Final Order.\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the inadequacies\n(49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that you submit your\namended procedures to my office within [number of days] days of receipt of this Notice. This\nperiod may be extended by written request for good cause. Once the inadequacies identified\nherein have been addressed in your amended procedures, this enforcement action will be closed.\nIn correspondence concerning this matter, please refer to CPF 5-2007-5035M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 G. Davis (#118877)\n7","truncated":false,"body_characters":17034}