# CALUMET MONTANA REFINING, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 520105008
- **title:** CALUMET MONTANA REFINING, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2010-04-20
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 195.420(b), 195.428(a), 195.428(d).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520105008.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520105008
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520105008
**body:**

Notice of Probable Violation involving CALUMET MONTANA REFINING, LLC. PHMSA's enforcement data identifies the cited regulations as 195.420(b),  195.428(a),  195.428(d). The case was opened on 2010-04-20 and is reported as closed as of 2011-06-14. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520105008_closure letter_06142011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_closure%20letter_06142011.pdf

520105008_closure letter_06142011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_closure%20letter_06142011_text.pdf

520105008_FinalOrder_11032010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_FinalOrder_11032010.pdf

520105008_FinalOrder_11032010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_FinalOrder_11032010_text.pdf

520105008_NOPV PCO_04202010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_NOPV%20PCO_04202010.pdf

520105008_NOPV PCO_04202010_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_NOPV%20PCO_04202010_text.pdf

520105008_operator response_06152010.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520105008/520105008_operator%20response_06152010.pdf

520105008_closure letter_06142011_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
June 14, 2011
Ms. Maureen Krum
Environmental Engineer
Montana Refining Company, Inc.
1900 10th Street NE
Great Falls, MT 59404
CPF 5-2010-5008
Dear Ms. Krum:
On November 3, 2010, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued Montana Refining Company, Inc. (MRC) a Final Order in the above-referenced case.
This Order included a Compliance Order. Based on our review of the documentation you
provided, it has been determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 M. Petronis ((#123972)

520105008_FinalOrder_11032010_text.pdf

NOV 03 2010
Mr. Dana Leach
Vice President, Refining Operations
Montana Refining Company, Inc.
1900 Tenth Street NE
Great Falls, MT 59404-1955
Re: CPF No. 5-2010-5008
Dear Mr. Leach:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by Montana Refining Company, Inc., to
comply with the pipeline safety regulations. When the terms of the compliance order have been
completed, as determined by the Director, Western Region, this enforcement action will be
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, PHMSA
Mr. Peter Sametz
Executive Vice President and Chief Operating Officer
Montana Refining Company, Inc.
Suite 2600, Watermark Tower
530 8th Avenue, SW
Calgary, Alberta T2P3S8
Canada
CERTIFIED MAIL – RETURN RECEIPT REQUESTED [7005 1160 0001 0041 0305]



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Montana Refining Company, Inc., ) CPF No. 5-2010-5008
)
Respondent. )
____________________________________)
FINAL ORDER
From June 30-July 2, 2009, 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 Montana Refining
Company, Inc. (Montana or Respondent), in Great Falls, Montana. Montana, a subsidiary of
Connacher Oil and Gas Limited, operates an oil refinery and the 2.6-mile Bootlegger Pipeline in
Great Falls.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated April 20, 2010, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that Montana had violated 49 C.F.R. §§ 195.420(b), 195.428(a), and 195.428(d) and
proposed ordering Respondent to take certain measures to correct the alleged violations.
Montana responded to the Notice by letters dated May 21 and June 15, 2010 (collectively,
Response). The company did not contest the allegations of violation and stated that it intended
to take the steps described in the proposed compliance order. Respondent did not request a
hearing and therefore has waived its right to one.
FINDINGS OF VIOLATION
In its Response, Montana did not contest the allegations in the Notice that it violated 49 C.F.R.
Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.420(b), which states:
§ 195.420 -- Valve maintenance.



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(a) . . . .
(b) Each operator shall, at intervals not exceeding 7 ½ months, but at
least twice each calendar year, inspect each mainline valve to determine
that it is functioning properly.
The Notice alleged that Respondent violated 49 C.F.R. § 195.420(b) by failing to inspect the six
mainline valves of the Bootlegger Pipeline at intervals not exceeding 7 ½ months, but at least
twice each calendar year. Respondent could not provide documentation of the required
inspections, nor could Montana personnel definitively confirm that the valves had been inspected
with the required frequency. Respondent did not contest this allegation of violation.
Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49
C.F.R. § 195.420(b) by failing to inspect the mainline valves of the Bootlegger Pipeline with the
required frequency.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a), which states:
§ 195.428 -- Overpressure safety devices and overfill protection
systems.
(a) Except as provided in paragraph (b) of this section, each operator
shall, at intervals not exceeding 15 months, but at least once each calendar
year, or in the case of pipelines used to carry highly volatile liquids, at
intervals not to exceed 7 ½ months, but at least twice each calendar year,
inspect and test each pressure limiting device, relief valve, pressure
regulator, or other item of pressure control equipment to determine that it
is functioning properly, is in good mechanical condition, and is adequate
from the standpoint of capacity and reliability of operation for the service
in which it is used.
The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect and test
the overpressure safety devices on the Bootlegger Pipeline at intervals not exceeding 15 months,
but at least once each calendar year. Respondent could not provide documentation of the
required inspections and tests, nor could Montana personnel definitively confirm that the
overpressure safety devices had been inspected and tested with the required frequency.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.428(a) by failing to inspect the
overpressure safety devices of the Bootlegger Pipeline with the required frequency.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.428(d), which states:
§ 195.428 -- Overpressure safety devices and overfill protection
systems.
(a) . . . .
(d) After October 2, 2000, the requirements of paragraphs (a) and (b)
of this section for inspection and testing of pressure control equipment
apply to the inspection and testing of overfill protection systems.
The Notice alleged that Respondent violated 49 C.F.R. § 195.428(d) by failing to inspect and test



3
the overfill protection systems on Tank 124 at intervals not exceeding 15 months, but at least
once each calendar year. Respondent could not provide documentation of the required
inspections or tests, nor could Montana personnel definitively confirm that the overfill protection
systems had been inspected and tested with the required frequency. Respondent did not contest
this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that
Respondent violated 49 C.F.R. § 195.428(d) by failing to inspect and test the overfill protection
systems of the Bootlegger Pipeline with the required frequency.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for
violations of 49 C.F.R. §§ 195.420(b), 195.428(a), and 195.428(d), respectively. 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 under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.
§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the
pipeline safety regulations applicable to its operations:
1. With respect to the violation of § 195.420(b) (Item 1), Respondent must:
a. Maintain and retain the valve inspection records from the last two years for
the six mainline valves installed on the Bootlegger Pipeline.
b. Ensure that each mainline valve is inspected twice each calendar year by
qualified personnel at intervals not exceeding 7 ½ months to determine that it
is functioning properly.
c. Ensure that each valve inspection is documented and that the documentation is
retained for at least two years.
2. With respect to the violation of § 195.428(a) (Item 2), Respondent must:
a. Maintain and retain the inspection records from the last two years for the
pressure control valve that controls the delivery pressure into the Bootlegger
Pipeline.
b. Maintain and retain the inspection records from the last two years of the
rupture disc on the Bootlegger Pipeline installed at the Montana refinery that
protects piping and equipment downstream of the relief line.
c. Ensure that each pressure limiting device, relief valve, pressure regulator, or
other item of pressure control equipment installed on, or affecting, the
Bootlegger Pipeline is inspected and tested each calendar year, at intervals not
to exceed 15 months, to determine that it is functioning properly, is in good
mechanical condition, and is adequate from the standpoint of capacity and
reliability of operation for the service in which it is used.
d. Ensure that each overpressure safety device inspection is documented and that
the documentation is retained for at least two years.
3. With respect to the violation of § 195.428(d) (Item 3), Respondent must:



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a. Maintain and retain the inspection records from the last two years of the
overfill protection systems for Tank 124.
b. Ensure that each breakout tank overfill protection system is inspected and
tested each calendar year, at intervals not exceeding 15 months, to determine
that it is functioning properly, is in good mechanical condition, and is
adequate from the standpoint of capacity and reliability of operation for the
service in which it is used.
c. Ensure that each tank overfill protection inspection is documented and that the
documentation is retained for at least two years.
4. Montana must complete the above terms of the Compliance Order within 90 days of
receipt of this Final Order.
5. Montana must maintain documentation of the safety improvement costs associated
with fulfilling this Compliance Order and submit that total to the Director, Western
Region, PHMSA. Costs shall be reported in two categories: (1) total cost associated
with preparation and revision of plans, procedures, studies, and analyses, and (2) total
cost associated with replacements, additions, and other changes to pipeline
infrastructure.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $100,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
Under 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of
this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline
Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA
will accept petitions received no later than 20 days after receipt of service of this Final Order by
the Respondent, provided they contain a brief statement of the issue(s) and meet all other
requirements of 49 C.F.R. § 190.215. Unless the Associate Administrator, upon request, grants a
stay, the terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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