# HOLLY ENERGY PARTNERS - OPERATING, L.P. — Warning Letter

- **operation:** document
- **citation:** CPF 520125004W
- **title:** HOLLY ENERGY PARTNERS - OPERATING, L.P. — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2012-04-06
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 195.581.
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520125004w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520125004W
**body:**

Warning Letter involving HOLLY ENERGY PARTNERS - OPERATING, L.P.. PHMSA's enforcement data identifies the cited regulation as 195.581. The case was opened on 2012-04-06 and is reported as closed as of 2012-04-06. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520125004W_warning letter_04062012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520125004W/520125004W_warning%20letter_04062012.pdf

520125004W_warning letter_04062012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520125004W/520125004W_warning%20letter_04062012_text.pdf

520125004W_warning letter_04062012_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
April 6, 2012
Mr. Mark Cunningham
Vice President
Holly Energy Partners-Operating, L.P.
2828 N. Harwood, Suite 1300
Dallas, TX 75201
CPF 5-2012-5004W
Dear Mr. Cunningham:
On May 12, 2011 a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your
refined products pipeline facilities in Mountain Home, Idaho.
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 items inspected and
the probable violation is:
1. §195.581 Which pipelines must I protect against atmospheric corrosion and what
coating material may I use?
(a) You must clean and coat each pipeline or portion of pipeline that is exposed
to the atmosphere, except pipelines under paragraph (c) of this section.
(b) Coating material must be suitable for the prevention of atmospheric
corrosion.
(c) Except portions of pipelines in offshore splash zones or soil-to-air interfaces,
you need not protect against atmospheric corrosion any pipeline for which you
demonstrate by test, investigation, or experience appropriate to the environment
of the pipeline that corrosion will-



(1) Only be a light surface oxide; or
(2) Not affect the safe operation of the pipeline before the next scheduled
inspection.
At the time of the inspection, the sump lines at the Mountain Home Terminal were not coated
at the air-to-soil interface. The sump lines are considered part of the pipeline facilities. In
order to prevent atmospheric corrosion on the sump lines at the air-to-soil interface at the
Mountain Home Terminal, Holly Energy Partners must clean and coat the air-to-soil interface
with a suitable coating to prevent atmospheric corrosion.
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 item(s) identified in this letter. Failure to do so will result in Holly Energy Partners-
Operating 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 5-2012-5004W. 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 C. Allen (#133598)
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