{"operation":"document","citation":"CPF 520136004W","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":"2013-10-10","effective_on":null,"summary":"CLOSED warning letter citing 195.404(c)(1), 195.410(a), 195.452(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520136004w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520136004w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520136004w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520136004W","body":"Warning Letter involving HOLLY ENERGY PARTNERS - OPERATING, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.404(c)(1),  195.410(a),  195.452(a). The case was opened on 2013-10-10 and is reported as closed as of 2013-10-10. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520136004W_warning letter_10102013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136004W/520136004W_warning%20letter_10102013.pdf\n\n520136004W_warning letter_10102013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520136004W/520136004W_warning%20letter_10102013_text.pdf\n\n520136004W_warning letter_10102013_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nOctober 10, 2013\nMr. Mark Cunningham\nVice President\nHolly Energy Partners-Operating, L.P.\n2828 N. Harwood, Suite 1300\nDallas, TX 75201\nCPF 5-2013-6004W\nDear Mr. Cunningham:\nOn May 10, 2011, a representative of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code, inspected the Holly Energy Partners-\nOperating, L.P. (HEP) hazardous liquid transfer pipelines associated with the Holly Refinery in Woods\nCross, Utah. During the inspection, my staff inspected your procedures and records, including those\nassociated with your integrity management program. My inspectors also conducted field inspections of\nyour facilities.\nFirst, I want to apologize for how long it has taken to provide the results of this inspection to HEP. As\nyou know there were numerous discussions between us on who was responsible for the various Holly\npipeline assets in the Salt Lake City area. Nevertheless, we must notify you that it appears that HEP\ncommitted probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations.\nThe items inspected and the probable violations are:\n1. §195.404 Maps and Records.\n(c) Each operator shall maintain the following records for the periods specified;\n(1) The date, location, and description of each repair made to pipe shall be maintained for\nthe useful life of the pipe.\nThere were no records for a repair of a pipe anomaly that was identified by your In Line Inspection (ILI)\nsurvey of the 10-inch Pioneer line. The anomaly location was at latitude 40.8829, longitude -111.9039.\nThe pipe repair occurred on November 3, 2007. HEP must keep pipe repair records for the useful life of\nthe pipe as required by §195.404(c)(1).\n\n\n\n2. §195.410 Line markers.\n(a) Except as provided in paragraph (b) of this section, each operator shall place and\nmaintain line markers over each buried pipeline in accordance with the following:\n(1) Markers must be located at each public road crossing, at each railroad crossing, and in\nsufficient number along the remainder of each buried line so that its location is accurately\nknown.\n(2) The marker must state at least the following on a background of sharply contrasting\ncolor:\n(i) The word \"Warning,\" \"Caution,\" or \"Danger\" followed by the words ``Petroleum (or\nthe name of the hazardous liquid transported) Pipeline'', or ``Carbon Dioxide Pipeline,'' all\nof which, except for markers in heavily developed urban areas, must be in letters at least 1\ninch (25 millimeters) high with an approximate stroke of \\1/4\\ inch (6.4 millimeters).\n(ii) The name of the operator and a telephone number (including area code) where the\noperator can be reached at all times.\nAt the time of inspection, Holly Energy Partner’s name was not on pipeline markers located over the 8-\ninch or 10-inch Pioneer pipelines as required by §195.410(a)(2)(ii). Improperly identified markers were\nlocated at crossings of South 875 West, on fence lines, and at several other places along the right-of-way.\n3. §195.452 Pipeline integrity management in high consequence areas.\n(a) Which pipelines are covered by this section? This section applies to each hazardous\nliquid pipeline and carbon dioxide pipeline that could affect a high consequence area,\nincluding any pipeline located in a high consequence area unless the operator effectively\ndemonstrates by risk assessment that the pipeline could not affect the area. (Appendix C of\nthis part provides guidance on determining if a pipeline could affect a high consequence\narea.) Covered pipelines are categorized as follows:\n(1) Category 1 includes pipelines existing on May 29, 2001, that were owned or operated by\nan operator who owned or operated a total of 500 or more miles of pipeline subject to this\npart.\n(2) Category 2 includes pipelines existing on May 29, 2001, that were owned or operated by\nan operator who owned or operated less than 500 miles of pipeline subject to this part.\n(3) Category 3 includes pipelines constructed or converted after May 29, 2001.\n(b) What program and practices must operators use to manage pipeline integrity?\nEach operator of a pipeline covered by this section must:\n(1) Develop a written integrity management program that addresses the risks on each\nsegment of pipeline in the first column of the following table not later than the date in\nthe second column:\nPipeline Date\nCategory 1 March 31, 2002\nCategory 2 February 18, 2003.\nCategory 3 1 year after the date the pipeline begins operation\n2\n\n\n\nAt the time of the 2011 inspection, HEP had not included the 8-inch Pioneer Pipeline in their Integrity\nManagement Plan (IMP) as required by §195.452. During the inspection, HEP’s Manager of Integrity\nManagement, Todd Wright, confirmed that the 8-inch Pioneer pipeline was not included in their IMP. In\naddition, as of February 18, 2011, the 8-inch Pioneer pipeline was purged with nitrogen, double blocked\nand locked inside the Pioneer facility. PHMSA’s understanding is that HEP began operating this pipeline\nin July 2004 when it acquired the Woods Cross Refinery and associated pipeline facilities, including the\n8-inch Pioneer Pipeline. Within one year of acquiring the 8-inch Pioneer line, HEP should have\nconsidered if the pipeline could affect high consequence areas (HCA, high population and drinking water)\nand addressed any risk to the HCAs.\nUnder 49 United States Code, §60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of violations.\nFor violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per\nviolation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations.\nWe have reviewed the circumstances and supporting documents involved in this case, and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time. We advise\nyou to correct the item(s) identified in this letter. Failure to do so will result in HEP being subject to\nadditional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 5-\n2013-6004W. Be advised that all material you submit in response to this enforcement action is subject to\nbeing made publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you must\nprovide a second copy of the document with the portions you believe qualify for confidential treatment\nredacted and 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: PHP-60 Compliance Registry\nPHP-500 C. Allen (#133597)\n3","truncated":false,"body_characters":7668}