{"operation":"document","citation":"CPF 520136003","title":"WYOMING PIPELINE COMPANY — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-08-06","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.5.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520136003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520136003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520136003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520136003","body":"Notice of Probable Violation involving WYOMING PIPELINE COMPANY. PHMSA's enforcement data identifies the cited regulation as 195.5. The case was opened on 2013-08-06 and is reported as closed as of 2019-08-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520136003_Closure Letter_08272019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Closure%20Letter_08272019.pdf\n\n520136003_Closure Letter_08272019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Closure%20Letter_08272019_text.pdf\n\n520136003_Final Order_03262014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Final%20Order_03262014.pdf\n\n520136003_Final Order_03262014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Final%20Order_03262014_text.pdf\n\n520136003_NOPV PCO_08062013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_NOPV%20PCO_08062013.pdf\n\n520136003_NOPV PCO_08062013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_NOPV%20PCO_08062013_text.pdf\n\n520136003_Operator Response to Notice_02032014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Operator%20Response%20to%20Notice_02032014.pdf\n\n520136003_Final Order_03262014_text.pdf\n\nMARCH 26, 2014\nMr. James Runyan\nPresident\nWyoming Pipeline Co.\n1600 Broadway, Suite 2300\nDenver, CO 80202\nRe: CPF No. 5-2013-6003\nDear Mr. Runyan:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and specifies actions that need to be taken by Wyoming Pipeline Co. to comply with\nthe pipeline safety regulations. When the terms of the compliance order have been completed, as\ndetermined by the Director, Western Region, this enforcement action will be closed. Service of\nthe Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise\nprovided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Chris Hoidal, Director, Western Region, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nWyoming Pipeline Company, ) CPF No. 5-2013-6003\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn October 22, 2012, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Wyoming Pipeline\nCompany (WPC or Respondent) in Newcastle, Wyoming. WPC operates approximately 150 miles\nof 6, 8, and 10-inch, low-stress, crude oil transmission in the Niobrara and Weston counties of\nWyoming.1\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent,\nby letter dated August 6, 2013, a Notice of Probable Violation and Proposed Compliance Order\n(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that WPC had\nviolated 49 C.F.R. § 195.5 and proposed ordering Respondent to take certain measures to correct\nthe alleged violation.\nWPC responded to the Notice by letter dated September 5, 2013 (Response). The company did\nnot contest the allegation of violation but asked for an extension until February 3, 2014, to\ncomplete the proposed compliance actions. Respondent did not request a hearing and therefore\nhas waived its right to one.\nFINDING OF VIOLATION\nIn its Response, WPC did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.5, which states:\n1 Violation Report at 1.\n\n\n\n2\n§ 195.5 – Conversion to service subject to this part.\n(a) A steel pipeline previously used in service not subject to this part\nqualifies for use under this part if the operator prepares and follows a\nwritten procedure to accomplish the following:\n(1) The design, construction, operation, and maintenance history of the\npipeline must be reviewed and, where sufficient historical records are\nnot available, appropriate tests must be performed to determine if the\npipeline is in satisfactory condition for safe operation. If one or more\nof the variables necessary to verify the design pressure under\n§ 195.106 or to perform the testing under paragraph (a)(4) of this\nsection is unknown, the design pressure may be verified and the\nmaximum operating pressure determined by—\n(i) Testing the pipeline in accordance with ASME B31.8, Appendix N,\nto produce a stress equal to the yield strength; and\n(ii) Applying, to not more than 80 percent of the first pressure that\nproduces a yielding, the design factor F in § 195.106(a) and the\nappropriate factors in § 195.106(e).\n(2) The pipeline right-of-way, all aboveground segments of the\npipeline, and appropriately selected underground segments must be\nvisually inspected for physical defects and operating conditions which\nreasonably could be expected to impair the strength or tightness of the\npipeline.\n(3) All known unsafe defects and conditions must be corrected in\naccordance with this part.\n(4) The pipeline must be tested in accordance with subpart E of this\npart to substantiate the maximum operating pressure permitted by\n§ 195.406.\n(b) A pipeline that qualifies for use under this section need not comply\nwith the corrosion control requirements of subpart H of this part until\n12 months after it is placed into service, notwithstanding any previous\ndeadlines for compliance.\n(c) Each operator must keep for the life of the pipeline a record of the\ninvestigations, tests, repairs, replacements, and alterations made under\nthe requirements of paragraph (a) of this section.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.5 by failing to develop and follow\nwritten procedures for 148 miles of category 3, rural, low-stress pipeline facilities that are now\nsubject to Part 195. Specifically, the Notice alleged that Respondent failed to develop\nprocedures to: 1) review the design, construction, operation and maintenance history of the steel\npipeline; 2) perform a visual inspection of the pipeline right-of-way, all aboveground segments\nof the pipeline, and appropriately selected underground segments for physical defects and\noperating conditions that could impair the strength or tightness of the pipeline, 3) correct all\nknown, unsafe defects; and 4) test the pipeline in accordance with subpart E of Part 195 to\nsubstantiate the maximum operating pressure permitted by § 195.406. The Notice explained\nthat, per § 195.12(c)(3), WPC’s pipeline system became subject to Part 195 and was required to\n\n\n\n3\ncomply with the requirements of § 195.5 by October 1, 2012 to qualify for service. Additionally,\nWPC operates a 1.86 mile segment of non-rural low-stress pipeline that should have been\nconsidered by WPC as subject to Part 195. WPC did not have written procedures in place for\nthis segment either. Respondent did not contest this allegation of violation. Accordingly, based\nupon a review of all of the evidence, I find that violated 49 C.F.R. § 195.5 by failing to develop\nand follow written procedures to qualify for use pipeline facilities that are now subject to Part\n195.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of\n49 C.F.R. § 195.5. Under 49 U.S.C. § 60118(a), each person who engages in the transportation\nof hazardous liquids or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C.\n§ 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to\nensure compliance with the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.5 (Item 1), Respondent must provide\ndocumentation and evidence to PHMSA showing compliance with the following\nitems for the crude oil system:\na. Evaluate whether SCADA hardware is adequate to indicate accurate\ndisplay of its system, flow rates, and discharge pressures, and the pressure\npolling is frequent enough to capture peak operating pressures, especially\nduring abnormal events.\nb. Evaluate the requirement for thermal pressure controls or procedural\ncontrols on segments that can be isolated and determine the maximum\noperating pressure as required by § 195.406 to include the process in\naccordance with § 195.106 for segments where pipe material properties\nare unknown.\nc. Evaluate the material specifications or conduct the test results for\nmetallurgy. WPC must evaluate the material specifications or conduct\nthe test results for metallurgy of the 1.86 mile segment and the Clariton\nto Mush Creek segment to ensure the maximum operating pressure was\nestablished in accordance with §§ 195.406 (195.402(c)(3), 195.406(a),\n195.406(b), 195.302(b), 195.302(c)). WPC must maintain the records of\nthe maximum operating pressure for the Clariton to Mush Creek\nsegment and the 1.86 mile-segment of “could affect a High\nConsequence Area segment.”\nd. Evaluate the requirement to determine overfill protection devices for all\natmospheric breakout tanks that need to be installed, inspected, and\ntested, as required by § 195.428 for the breakout tanks Nos. 94, 97, 99,\n100, 101, 103, 106, and 239.\n\n\n\n4\ne. Evaluate the requirement to determine External, Ultrasonic Thickness,\nand/or Internal API 653 inspections as required by § 195.432(b) for\nbreakout tanks Nos. 94, 97, 99, 100, 101, 102, 103, 104, 105, 106, and\n239. At minimum, WPC must perform external inspections per section\n6.3.2, ultrasonic inspections per section 6.3.3.2(a) of API 653 within 5\nyears, and internal inspections per section 6.4.2.2 of API 653 within 10\nyears, unless WPC can demonstrate the alternate inspection intervals to\nestablish corrosion rates. Alternatively, if there is an unsafe condition,\nWPC shall repair the unsafe condition per the requirements of\n§ 195.401(b). Note: The conditions of several of the steel atmospheric\ntanks appear to be unacceptable. Bolted tanks Nos. 99, 100, 101 at\nMush Creek PS, 103 at Clariton (disconnected), and 97 Fidlar Creek\nhave very significant corrosion and integrity problems in shell and\nbottom, and there are visible leakage problems at the chimes and near\nthe floor.\nf. Establish a written external coating procedure as required by §§\n195.402(c) (3), 195.557(b), and 195.559 for the pipelines that have been\nconverted to liquid service and were constructed after the applicable\ndate in accordance with § 195.401(c).`\ng. Establish a written Cathodic Protection ( C P ) procedure for the\npipelines that have been placed into service, as required by §§\n195.402(c)(3),195.563(b), and 195.573(e), i.e. the 1.86 mile non-rural\nlow-stress pipeline segment that could affect an HCA. Note: The 148\nmiles of rural low-stress pipeline must comply with Subpart H by\nOctober 1, 2014, as required by § 195.12(c)(3)(A)(iii).\nh. Evaluate its CP program for all the atmospheric breakout tanks in\naccordance with API 651. WPC must develop a written CP procedure for\nits breakout tanks and correct all known unsafe defects and conditions\nfor its breakout tanks to comply with Part 195.5(a)(3) and Section 4 of\nAPI 653. Note: At the time of inspection, WPC was not performing CP\nmonitoring tests on breakout tank bottoms per 195.573(d). Tank\nbottom-to-soil potential readings were about-350 mV.\ni. Evaluate its corrosion control program to include a close-interval\nsurvey, internal corrosion, external corrosion, atmospheric corrosion,\nCP test station spacing, and CP criteria. Note: At the time of\ninspection, WPC did not perform CP monitoring that met the criteria\nof § 195.571 for its crude oil system. Most pipe-to-soil potential\nreadings that were taken during the field inspection appear to be\nmuch more positive than -850 mV. Many pipe-to-soil (P/S) readings\nin the field were about -600 mV or less, P/S readings in the HCA were\nabout -500 mV, P/S for the breakout tanks readings were about -350\nmV, and casings readings were essentially the same as the pipeline.\n2. WPC has 60 days after receipt of the Final Order to complete the items.\n\n\n\n5\n3. It is requested (not mandated) that WPC maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit\nthe total to Chris Hoidal, Director, Western Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in\ntwo categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $200,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nUnder 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of\nthis Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline\nSafety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC\n20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA\nwill accept petitions received no later than 20 days after receipt of service of this Final Order by\nthe Respondent, provided they contain a brief statement of the issue(s) and meet all other\nrequirements of 49 C.F.R. § 190.215. Unless the Associate Administrator, upon request, grants a\nstay, the terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n520136003_Closure Letter_08272019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 27, 2019\nMr. Michael Farnsworth\nVice President\nWyoming Refining Company\n10 Stampede St.\nNewcastle, WY 82701\nCPF 5-2013-6003\nClosure Letter\nDear Mr. Farnsworth:\nOn March 26, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Wyoming Pipeline Company a Final Order in the above-referenced case. This Order\nincluded a Compliance Order. Based on our review of the documentation you provided, it has\nbeen determined that you have substantially complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 C. Allen (#139527)","truncated":false,"body_characters":15462}