# WYOMING PIPELINE COMPANY — Notice of Probable Violation

- **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:** Not available
- **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.

Official case documents:

520136003_Closure Letter_08272019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Closure%20Letter_08272019.pdf

520136003_Closure Letter_08272019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Closure%20Letter_08272019_text.pdf

520136003_Final Order_03262014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Final%20Order_03262014.pdf

520136003_Final Order_03262014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Final%20Order_03262014_text.pdf

520136003_NOPV PCO_08062013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_NOPV%20PCO_08062013.pdf

520136003_NOPV PCO_08062013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_NOPV%20PCO_08062013_text.pdf

520136003_Operator Response to Notice_02032014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136003/520136003_Operator%20Response%20to%20Notice_02032014.pdf

520136003_Final Order_03262014_text.pdf

MARCH 26, 2014
Mr. James Runyan
President
Wyoming Pipeline Co.
1600 Broadway, Suite 2300
Denver, CO 80202
Re: CPF No. 5-2013-6003
Dear Mr. Runyan:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and specifies actions that need to be taken by Wyoming Pipeline Co. 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, OPS
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Wyoming Pipeline Company, ) CPF No. 5-2013-6003
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
On October 22, 2012, 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 Wyoming Pipeline
Company (WPC or Respondent) in Newcastle, Wyoming. WPC operates approximately 150 miles
of 6, 8, and 10-inch, low-stress, crude oil transmission in the Niobrara and Weston counties of
Wyoming.1
As a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent,
by letter dated August 6, 2013, a Notice of Probable Violation and Proposed Compliance Order
(Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that WPC had
violated 49 C.F.R. § 195.5 and proposed ordering Respondent to take certain measures to correct
the alleged violation.
WPC responded to the Notice by letter dated September 5, 2013 (Response). The company did
not contest the allegation of violation but asked for an extension until February 3, 2014, to
complete the proposed compliance actions. Respondent did not request a hearing and therefore
has waived its right to one.
FINDING OF VIOLATION
In its Response, WPC did not contest the allegation 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. § 195.5, which states:
1 Violation Report at 1.



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§ 195.5 – Conversion to service subject to this part.
(a) A steel pipeline previously used in service not subject to this part
qualifies for use under this part if the operator prepares and follows a
written procedure to accomplish the following:
(1) The design, construction, operation, and maintenance history of the
pipeline must be reviewed and, where sufficient historical records are
not available, appropriate tests must be performed to determine if the
pipeline is in satisfactory condition for safe operation. If one or more
of the variables necessary to verify the design pressure under
§ 195.106 or to perform the testing under paragraph (a)(4) of this
section is unknown, the design pressure may be verified and the
maximum operating pressure determined by—
(i) Testing the pipeline in accordance with ASME B31.8, Appendix N,
to produce a stress equal to the yield strength; and
(ii) Applying, to not more than 80 percent of the first pressure that
produces a yielding, the design factor F in § 195.106(a) and the
appropriate factors in § 195.106(e).
(2) The pipeline right-of-way, all aboveground segments of the
pipeline, and appropriately selected underground segments must be
visually inspected for physical defects and operating conditions which
reasonably could be expected to impair the strength or tightness of the
pipeline.
(3) All known unsafe defects and conditions must be corrected in
accordance with this part.
(4) The pipeline must be tested in accordance with subpart E of this
part to substantiate the maximum operating pressure permitted by
§ 195.406.
(b) A pipeline that qualifies for use under this section need not comply
with the corrosion control requirements of subpart H of this part until
12 months after it is placed into service, notwithstanding any previous
deadlines for compliance.
(c) Each operator must keep for the life of the pipeline a record of the
investigations, tests, repairs, replacements, and alterations made under
the requirements of paragraph (a) of this section.
The Notice alleged that Respondent violated 49 C.F.R. § 195.5 by failing to develop and follow
written procedures for 148 miles of category 3, rural, low-stress pipeline facilities that are now
subject to Part 195. Specifically, the Notice alleged that Respondent failed to develop
procedures to: 1) review the design, construction, operation and maintenance history of the steel
pipeline; 2) perform a visual inspection of the pipeline right-of-way, all aboveground segments
of the pipeline, and appropriately selected underground segments for physical defects and
operating conditions that could impair the strength or tightness of the pipeline, 3) correct all
known, unsafe defects; and 4) test the pipeline in accordance with subpart E of Part 195 to
substantiate the maximum operating pressure permitted by § 195.406. The Notice explained
that, per § 195.12(c)(3), WPC’s pipeline system became subject to Part 195 and was required to



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comply with the requirements of § 195.5 by October 1, 2012 to qualify for service. Additionally,
WPC operates a 1.86 mile segment of non-rural low-stress pipeline that should have been
considered by WPC as subject to Part 195. WPC did not have written procedures in place for
this segment either. Respondent did not contest this allegation of violation. Accordingly, based
upon a review of all of the evidence, I find that violated 49 C.F.R. § 195.5 by failing to develop
and follow written procedures to qualify for use pipeline facilities that are now subject to Part
195.
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 for violation of
49 C.F.R. § 195.5. 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 § 195.5 (Item 1), Respondent must provide
documentation and evidence to PHMSA showing compliance with the following
items for the crude oil system:
a. Evaluate whether SCADA hardware is adequate to indicate accurate
display of its system, flow rates, and discharge pressures, and the pressure
polling is frequent enough to capture peak operating pressures, especially
during abnormal events.
b. Evaluate the requirement for thermal pressure controls or procedural
controls on segments that can be isolated and determine the maximum
operating pressure as required by § 195.406 to include the process in
accordance with § 195.106 for segments where pipe material properties
are unknown.
c. Evaluate the material specifications or conduct the test results for
metallurgy. WPC must evaluate the material specifications or conduct
the test results for metallurgy of the 1.86 mile segment and the Clariton
to Mush Creek segment to ensure the maximum operating pressure was
established in accordance with §§ 195.406 (195.402(c)(3), 195.406(a),
195.406(b), 195.302(b), 195.302(c)). WPC must maintain the records of
the maximum operating pressure for the Clariton to Mush Creek
segment and the 1.86 mile-segment of “could affect a High
Consequence Area segment.”
d. Evaluate the requirement to determine overfill protection devices for all
atmospheric breakout tanks that need to be installed, inspected, and
tested, as required by § 195.428 for the breakout tanks Nos. 94, 97, 99,
100, 101, 103, 106, and 239.



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e. Evaluate the requirement to determine External, Ultrasonic Thickness,
and/or Internal API 653 inspections as required by § 195.432(b) for
breakout tanks Nos. 94, 97, 99, 100, 101, 102, 103, 104, 105, 106, and
239. At minimum, WPC must perform external inspections per section
6.3.2, ultrasonic inspections per section 6.3.3.2(a) of API 653 within 5
years, and internal inspections per section 6.4.2.2 of API 653 within 10
years, unless WPC can demonstrate the alternate inspection intervals to
establish corrosion rates. Alternatively, if there is an unsafe condition,
WPC shall repair the unsafe condition per the requirements of
§ 195.401(b). Note: The conditions of several of the steel atmospheric
tanks appear to be unacceptable. Bolted tanks Nos. 99, 100, 101 at
Mush Creek PS, 103 at Clariton (disconnected), and 97 Fidlar Creek
have very significant corrosion and integrity problems in shell and
bottom, and there are visible leakage problems at the chimes and near
the floor.
f. Establish a written external coating procedure as required by §§
195.402(c) (3), 195.557(b), and 195.559 for the pipelines that have been
converted to liquid service and were constructed after the applicable
date in accordance with § 195.401(c).`
g. Establish a written Cathodic Protection ( C P ) procedure for the
pipelines that have been placed into service, as required by §§
195.402(c)(3),195.563(b), and 195.573(e), i.e. the 1.86 mile non-rural
low-stress pipeline segment that could affect an HCA. Note: The 148
miles of rural low-stress pipeline must comply with Subpart H by
October 1, 2014, as required by § 195.12(c)(3)(A)(iii).
h. Evaluate its CP program for all the atmospheric breakout tanks in
accordance with API 651. WPC must develop a written CP procedure for
its breakout tanks and correct all known unsafe defects and conditions
for its breakout tanks to comply with Part 195.5(a)(3) and Section 4 of
API 653. Note: At the time of inspection, WPC was not performing CP
monitoring tests on breakout tank bottoms per 195.573(d). Tank
bottom-to-soil potential readings were about-350 mV.
i. Evaluate its corrosion control program to include a close-interval
survey, internal corrosion, external corrosion, atmospheric corrosion,
CP test station spacing, and CP criteria. Note: At the time of
inspection, WPC did not perform CP monitoring that met the criteria
of § 195.571 for its crude oil system. Most pipe-to-soil potential
readings that were taken during the field inspection appear to be
much more positive than -850 mV. Many pipe-to-soil (P/S) readings
in the field were about -600 mV or less, P/S readings in the HCA were
about -500 mV, P/S for the breakout tanks readings were about -350
mV, and casings readings were essentially the same as the pipeline.
2. WPC has 60 days after receipt of the Final Order to complete the items.



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3. It is requested (not mandated) that WPC 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. It is requested that these costs 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.
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 administrative assessment of civil penalties not
to exceed $200,000 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

520136003_Closure Letter_08272019_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
August 27, 2019
Mr. Michael Farnsworth
Vice President
Wyoming Refining Company
10 Stampede St.
Newcastle, WY 82701
CPF 5-2013-6003
Closure Letter
Dear Mr. Farnsworth:
On March 26, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Wyoming Pipeline Company 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 substantially 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,
Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 C. Allen (#139527)
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