ONEOK ROCKIES MIDSTREAM, LLC — Notice of Probable Violation

party submissionOfficial PDF520075043_operator response_05272008.pdf#

520075043_nopv pco letter_12112007_text.pdf, page 1Official PDFSENT To CGIvlPI. IANGE REGlsTT$Y Ha dcopy i', ie~ n oritcalfy Q of Copje& t I Date ~li U. S. Department of Transportation Pipeline and Hazardous Materials Safety Administration 12300 W Dakota Ave, Suite 110 Lakewood, CO 80228 NOTICE OF PROBABLE UIOLATION and PROPOSED COMPLIANCE ORDER CERTIFIED MAIL - RETUkVf RECEIPT RE UESTED December 11, 2007 Mr. Craig Forsander Vice President ONEOK 100 West 5th Street Tulsa, OK 74103 CPF 5-2007-5043 Dear Mr. Forsander: On April 25 to 27, 2006, June 13, 2007 and July 18, 2007, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Riverview pipeline at your Grass Lands Complex in North Dakota. 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 item inspected and the probable violation is: $195. 310 Records. (a) A record must be made of each pressure test required by this subpart, and the record of the latest test must be retained as long as the facility tested is in use. (b) The record required by paragraph (a) of this section must include: (1) The pressure recording charts; (2) Test instrument calibration data;#

520075043_nopv pco letter_12112007_text.pdf, page 2(3) The name of the operator, the name of the person responsible for making the test, and the name of the test company used, if any; (4) The date and time of the test; (5) The minimum test pressure; (6) The test medium; (7) A description of the facility tested and the test apparatus; (8) An explanation of any pressure discontinuities, including test failures, that appear on the pressure recording charts; and, (9) Where elevation differences in the section under test exceed 100 feet (30 meters), a profile of the pipeline that shows the elevation and test sites over the entire length of the test section. (10) Temperature of the test medium or pipe during the test period. The latest pressure test records for the Riverview pipeline do not include a record of the test instrument calibration data, the minimum test pressure, the test medium, a description of the facility tested including the test apparatus, an explanation of any pressure discontinuities including test failures that appear on the pressure recording charts, and where elevation differences in the section under test exceed 100 feet (30 meters) a profile of the pipeline that shows the elevation and test sites over the entire length of the test section. The Riverview pipeline pressure test records consisted of one pressure/temperature recording chart showing a 24-hour test. Operations personnel labeled this chart "McKenzie to Riverview. " Pro osed Com liance Order Pursuant to 49 United States Code $ 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Bear Paw Energy. Please refer to the Proposed Compliance Order that is enclosed and made a part of this Notice. Res onse to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance ProceeCkngs. Please refer to this document and note the response options. 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). If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order.#

520075043_nopv pco letter_12112007_text.pdf, page 3In your correspondence on this matter, please refer to CPF 5-2007-5043 and for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, / C ' oia Director, Western Region Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings cc: PHP-60 Compliance Registry PHP-500 G. Davis (¹116825 & ¹119570)#

520075043_nopv pco letter_12112007_text.pdf, page 4PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code $ 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Bear Paw Energy (BPE) a Compliance Order incorporating the following remedial requirements to ensure the compliance of BPE with. the pipeline safety regulations: 1. In regard to Item Number 1 of the Notice pertaining to the latest pressure test for the Riverview pipeline, BPE must complete one of the following directives: a) Provide documentation of the latest pressure test for the Riverview pipeline that includes all of the requirements of $195. 310. Or b) Complete a pressure test for all or segments of the Riverview Pipeline that do not have documentation meeting $195. 310 and provide documentation of the test. Or c) Lower the Maximum Operating Pressure (MOP) to a level that is the lesser of: 1) 80% of the highest operating pressure to which the pipeline was subjected for 4 or more continuous hours that can be demonstrated by recording charts or logs made at the time the operations were conducted as per $195. 406(a)(5). Or 2) A pressure that will insure that 20% of the Specified Minimum Yield Strength (SMYS) will not be exceeded as per )195. 302(b)(1)(iv). And 3) Lower all set points for pressure controls and pressure protection at a pressure that will insure that 110% of the new MOP will not be exceeded during surges or other variations. And 4) Provide documentation showing calculations and or documentation of the new MOP and new set points for pressure controls and pressure protection. 2. BPE has 60 days to provide valid pressure test documentation to support either option a), b) or c) to Chris Hoidal, Director, Western Region, Pipeline and Hazardous Materials Safety Administration after the Final Order has been issued. 3. BPE shall maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Chris Hoidal, Director, Western Region, Pipeline and Hazardous Materials Safety Administration. Costs shall be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure.#

520075043_FinalOrder_02262010_text.pdf, page 1Official PDFFEB 26 2010 Mr. David L. Kyle Chairman ONEOK, Inc. 100 West 5th Street Tulsa, OK 74103 Re: CPF No. 5-2007-5043 Dear Mr. Kyle: Enclosed please find the Final Order issued in the above-referenced case. It makes findings of violation and finds that Bear Paw Energy, LLC, has completed the actions specified in the Notice to comply with the pipeline safety regulations. Therefore, this case is now closed. Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure cc: Mr. Chris Hoidal, Director, Western Region, OPS CERTIFIED MAIL – RETURN RECEIPT REQUESTED [7009 1410 0000 2472 9956]#

520075043_FinalOrder_02262010_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ______________________________ In the Matter of ) Bear Paw Energy, LLC, ) CPF No. 5-2007-5043 a subsidiary of ONEOK, Inc., ) ) ) ) Respondent. ) ______________________________) FINAL ORDER Between April 25 and 27, 2006, and on June 13 and July 18, 2007, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS) conducted an on-site pipeline safety inspection of the facilities and records of Bear Paw Energy, LLC (Bear Paw or Respondent), Complex in North Dakota. That included an inspection of the 11.2-mile-long Riverview Pipeline, which transports highly volatile liquids from the Grass Lands Complex to a storage tank in Sydney, Montana. 1 at its Grass Lands As a result of the inspection, the Director, Western Region, OPS (Director), issued to Bear Paw, by letter dated December 11, 2007, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Respondent had violated 49 C.F.R. § 195.310 and proposed ordering the company to take certain measures to correct the alleged violation. Bear Paw received an extension of time and responded to the Notice by letter dated May 27, 2008. Respondent did not contest the allegation of violation, but provided information on the corrective actions it had taken. Bear Paw did not request a hearing and therefore has waived its right to one. FINDING OF VIOLATION In its Response, Bear Paw did not contest the allegation in the Notice that it violated 49 C.F.R. Part 195, as follows: 1 PHMSA’s records indicate that Bear Paw became a wholly-owned subsidiary of ONEOK, Inc., in June 2006.#

520075043_FinalOrder_02262010_text.pdf, page 32 Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.310, which states: § 195.310 – Records. (a) A record must be made of each pressure test required by this subpart, and the record of the latest test must be retained as long as the facility tested is in use. (b) The record required by paragraph (a) of this section must include: (1) The pressure recording charts; (2) Test instrument calibration data; (3) The name of the operator, the name of the person responsible for making the test, and the name of the test company used, if any; (4) The date and time of the test; (5) The minimum test pressure; (6) The test medium; (7) A description of the facility tested and the test apparatus; (8) An explanation of any pressure discontinuities, including test failures, that appear on the pressure recording charts; (9) Where elevation differences in the section under test exceed 100 feet (30 meters), a profile of the pipeline that shows the elevation and test sites over the entire length of the test section; and (10) Temperature of the test medium or pipe during the test period. The Notice alleged that Respondent violated section 195.310(b) because the most recent pressure test records for the Riverview Pipeline did not include all of the information required by that regulation. In particular, the Notice alleged that Bear Paw only had one record on file for the Riverview Pipeline at the time of the inspection—i.e., a pressure/temperature recording chart from a 24-hour test performed on August 22 and 23, 1986—and that said record did not provide the test instrument calibration data, the minimum test pressure, the test medium, a description of the facility tested including test apparatus, an explanation of any pressure discontinuities, including test failures, that appear on the pressure recording charts, and where elevation differences in the section under test exceed 100 feet, a profile of the pipeline that shows the elevation and test sites over the entire length of the test section. As Respondent has not contested this allegation, I find that Bear Paw violated 49 C.F.R. § 195.310(b) by failing to include all of the required information on its latest pressure test record for the Riverview Pipeline. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to item 1 in the Notice. Under 49 U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who owns or operates a pipeline facility is required to comply with the applicable safety standards established#

520075043_FinalOrder_02262010_text.pdf, page 43 under chapter 601. The Director has indicated that Respondent has taken the following actions specified in the proposed compliance order: Bear Paw performed an 8-hour hydrostatic pressure test of the Riverview Pipeline on April 29, 2008, and provided the Director, Western Region, OPS, with the records from that test on May 27, 2008. Respondent’s documents included records of the test instrument calibration data, the minimum test pressure, the test medium, a description of the facility tested including test apparatus, and a profile of the pipeline that shows the elevation and test sites over the entire length of the test section. Bear Paw also submitted costs associated with the pressure test on April 29, 2008. Accordingly, I find that these actions comply with the requirements of the Proposed Compliance Order and therefore are not included in this Order. The terms and conditions of this Final Order are effective upon receipt. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#