{"operation":"document","citation":"CPF 520095040W","title":"CALUMET MONTANA REFINING, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2009-11-16","effective_on":null,"summary":"CLOSED warning letter citing 195.404(b)(1), 195.432(a), 195.575, 195.579(a), 195.583(a), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520095040w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520095040w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520095040w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520095040W","body":"Warning Letter involving CALUMET MONTANA REFINING, LLC. PHMSA's enforcement data identifies the cited regulations as 195.404(b)(1),  195.432(a),  195.575,  195.579(a),  195.583(a),  195.589(c). The case was opened on 2009-11-16 and is reported as closed as of 2009-11-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520095040W_warning letter_11162009.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520095040W/520095040W_warning%20letter_11162009.pdf\n\n520095040W_warning letter_11162009_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520095040W/520095040W_warning%20letter_11162009_text.pdf\n\n520095040W_warning letter_11162009_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 16, 2009\nMr. Peter Sametz\nExecutive Vice President and Chief Operating Officer\nMontana Refining Company, Inc\nSuite 2600, Watermark Tower\n530 8th Avenue, SW\nCalgary, Alberta T2P3S8\nCPF 5-2009-5040W\nDear Mr. Sametz:\nFrom June 30 to July 2, 2009, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected your Bootlegger Pipeline in Great Falls, Montana.\nAs a result of the inspection, it appears that Montana Refining Company, Inc. (MRC), has\ncommitted probable violations of the Pipeline Safety Regulations, Title 49, Code of\nFederal Regulations. The items inspected and the probable violations are:\n1. § 195. 583 What must I do to monitor atmospheric corrosion control?\n(a) You must inspect each pipeline or portion of pipeline that is exposed to\nthe atmosphere for evidence of atmospheric corrosion, as follows:\nIf the pipeline is located: Then the frequency of inspection is:\nOnshore At least once every 3 calendar years, but\nwith intervals not exceeding 39 months\n\n\n\nOffshore At least once each calendar year, but with\nintervals not exceeding 15 months\n(b) During inspections you must give particular attention to pipe at soil-to-\nair interfaces, under thermal insulation, under disbonded coatings, at pipe\nsupports, in splash zones, at deck penetrations, and in spans over water.\n(c) If you find atmospheric corrosion during an inspection, you must provide\nprotection against the corrosion as required by Sec. 195.581.\nDuring the field inspection of the receiver and associated piping at the MRC Refinery,\natmospheric corrosion was visible on the receiver barrel and associated valves and\nflanges. MRC must inspect its aboveground pipeline facilities for coating damage and\nevidence of corrosion. If coating damage and/or evidence of corrosion is observed,\nappropriate actions should be promptly taken to repair the coating damage and/or\ncorrosion.\n2. § 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\nthis subpart in sufficient detail to demonstrate the adequacy of corrosion\ncontrol measures or that corrosion requiring control measures does not exist.\nYou must maintain these records for at least 5 years.\nMRC was unable to provide documentation of their atmospheric corrosion monitoring\ninspections as required by § 195.583. MRC must inspect its aboveground pipeline\nfacilities for coating damage and evidence of corrosion and retain a record of each\ninspection for at least five (5) years.\n3. § 195.404 Maps and Records\n(b)(1) Each operator shall maintain for at least 3 years daily operating\nrecords that indicate the discharge pressure at each pump station\nMRC was unable to provide any documentation of the pressure of their pipeline at the\nGreat Falls Station (or anywhere along the pipeline) where it receives crude oil from the\nFront Range Pipeline. MRC indicated that they rely on Front Range Pipeline personnel\nto monitor the discharge pressures into their pipeline and to maintain any documentation\nthat is required. While it is acceptable to have a third party monitor the pipeline pressure\nand retain the pressure records, as the pipeline operator, MRC must also obtain the\nrecords from the third party and retain the pressure records for at least three (3) years.\n\n\n\n4. § 195.432 Inspection of in-service breakout tanks\n(a) Except for breakout tanks inspected under paragraphs (b) and (c) of this\nsection, each operator shall, at intervals not exceeding 15 months, but at least\nonce each calendar year, inspect each in-service breakout tank.\nMRC was unable to provide documentation of their annual in-service breakout tank\n(Tank 124) inspection. MRC indicated that they assumed refinery personnel were\nperforming this task. MRC must conduct annual inspections of Tank 124 and maintain a\nrecord of each inspection.\n5. § 195.579(a) What must I do to mitigate internal corrosion?\n(a) General. If you transport any hazardous liquid or carbon dioxide that\nwould corrode the pipeline, you must investigate the corrosive effect of the\nhazardous liquid or carbon dioxide on the pipeline and take adequate steps\nto mitigate internal corrosion.\nMRC was unable to provide documentation of any corrosive effect investigations. MRC\nindicated that they assumed Front Range Pipeline personnel were performing this task.\nWhile it is acceptable to have a third party perform corrosive effect investigations of the\nhazardous liquid transported through their pipeline, MRC must obtain the records from\nthe third party and retain the records for at least three (3) years. In addition, MRC must\ntake the appropriate steps to mitigate corrosion if the investigations determine that there\nis a possibility that the hazardous liquid could cause internal corrosion of the Bootlegger\nPipeline.\n6. § 195.575 Which facilities must I electrically isolate and what inspections,\ntests and safeguards are required?\n(b) You must install one or more insulating devices where electrical isolation\nof a portion of a pipeline is necessary to facilitate the application of corrosion\ncontrol.\n(c) You must inspect and electrically test each electrical isolation to assure\nthe isolation is adequate.\nThe annual cathodic protection survey records for the Bootlegger Pipeline do not include\ncasing to soil potential readings to demonstrate that the casings are not shorted to the\npipeline. MRC must ensure that casing to soil potential readings are obtained and\ndocumented during each annual cathodic protection survey that is conducted on the\nBootlegger Pipeline.\n\n\n\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$100,000 for each violation for each day the violation persists up to a maximum of\n$1,000,000 for any related series of violation. We have reviewed the circumstances and\nsupporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to\ncorrect the items identified in this letter. Failure to do so will result in the Montana\nRefining Company being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please\nrefer to CPF 5-2009-5040W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C.\n552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted\nand an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: Maureen Krum, Montana Refining Company, Inc.\nPHP-60 Compliance Registry\nPHP-500 M. Petronis (#123972)","truncated":false,"body_characters":7933}