{"operation":"document","citation":"CPF 520146002W","title":"PAR HAWAII REFINING, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2014-06-25","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.402(c)(12), 195.452(i)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520146002w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520146002w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520146002w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520146002W","body":"Warning Letter involving PAR HAWAII REFINING, LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(12),  195.452(i)(4). The case was opened on 2014-06-25 and is reported as closed as of 2014-06-25. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520146002W_warning letter_06252014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520146002W/520146002W_warning%20letter_06252014.pdf\n\n520146002W_warning letter_06252014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520146002W/520146002W_warning%20letter_06252014_text.pdf\n\n520146002W_warning letter_06252014_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJune 25, 2014\nMr. Eric Wright\nVice President, Logistics\nHawaii Independent Energy\n800 Gessner Road, Suite 875\nHouston, TX 77024\nCPF 5-2014-6002W\nDear Mr. Wright:\nDuring the weeks of November 18, 2013 and February 24, 2014, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601\nof 49 CFR United States Code, inspected the Hawaii Independent Energy (HIE) pipeline\nfacilities on Oahu Island, Hawaii. Our representative also inspected operational and\nmaintenance procedures and records at the HIE Offices in Honolulu and Kapolei, Hawaii.\nAs a result of the inspections, it appears that HIE has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations, Part 195. The items\ninspected and the probable violations are:\n1. §195.402 Procedural manual for operations, maintenance, and emergencies\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall\nbe reviewed at intervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a pipeline\n\n\n\nsystem commence, and appropriate parts shall be kept at locations where\noperations and maintenance activities are conducted\nAt the time of the inspection, HIE had not completed a review and update of the O&M\nManuals for the HIE Pipeline that had been received from the previous owner/operator.\nFollowing the inspection, HIE indicated that they had subsequently completed a review and\nupdate of the O&M Manuals to meet their organizational requirements. HIE should have\nensured that the O&M Manuals for the HIE Pipeline met their organizational needs\nimmediately upon taking ownership of the pipeline. HIE must ensure that the O&M Manuals\nare reviewed at intervals not exceeding 15 months, at least once each calendar year, and update\nthe manuals as necessary to ensure that they are effective.\n2. §195.402 Procedural manual for operations, maintenance, and emergencies\n(c) Maintenance and normal operations. The manual required by paragraph (a)\nof this section must include procedures for the following to provide safety during\nmaintenance and normal operations:\n(12) Establishing and maintaining liaison with fire, police, and other appropriate\npublic officials to learn the responsibility and resources of each government\norganization that may respond to a hazardous liquid or carbon dioxide pipeline\nemergency and acquaint the officials with the operator's ability in responding to a\nhazardous liquid or carbon dioxide pipeline emergency and means of\ncommunication.\nBased on discussions with HIE personnel during the inspection and a review of the associated\nrecords, it appears that the process that the previous operator, and now HIE, utilizes to\nestablish and maintain liaison with fire, police, and other appropriate public officials is\ninadequate. HIE subsequently indicated that it is working to improve the liaison process. HIE\nmust ensure that the process is substantially improved so it provides the following: 1) establish\nand maintain liaison with fire, police, and other appropriate public officials, 2) learn the\nresponsibility and resources of each government organization that may respond to a hazardous\nliquid pipeline emergency, and 3) acquaint the officials with the operator's ability in\nresponding to a hazardous liquid pipeline emergency and means of communication. In\naddition, HIE must ensure complete records are kept to fully document all liaison activity\ndescribed above.\n3. §195.452 Pipeline integrity management in high consequence areas.\n(i) What preventive and mitigative measures must an operator take to protect the\nhigh consequence area?\n(4) Emergency Flow Restricting Devices (EFRD). If an operator determines that\nan EFRD is needed on a pipeline segment to protect a high consequence area in\nthe event of a hazardous liquid pipeline release, an operator must install the\nEFRD. In making this determination, an operator must, at least, consider the\nfollowing factors—the swiftness of leak detection and pipeline shutdown\n2\n\n\n\ncapabilities, the type of commodity carried, the rate of potential leakage, the\nvolume that can be released, topography or pipeline profile, the potential for\nignition, proximity to power sources, location of nearest response personnel,\nspecific terrain between the pipeline segment and the high consequence area, and\nbenefits expected by reducing the spill size.\nHIE did not receive an EFRD Analysis from the previous owner/operator of the pipeline and,\nat the time of inspection, had not conducted their own EFRD analysis for the HIE Pipeline.\nHIE must conduct an ERFD analysis for the HIE Pipeline. HIE must install the EFRD(s) if it is\ndetermined that an EFRD(s) is (are) needed to protect a high consequence area(s) in the event\nof a hazardous liquid pipeline release. HIE must consider the following factors when\nconducting the EFRD Analysis: the swiftness of leak detection and pipeline shutdown\ncapabilities, the type of commodity carried, the rate of potential leakage, the volume that can\nbe released, topography or pipeline profile, the potential for ignition, the proximity to power\nsources, the location of nearest response personnel, specific terrain between the pipeline\nsegment and the high consequence area, and benefits expected by reducing the spill size.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000\nfor any related series of violation. We have reviewed the circumstances and supporting\ndocuments involved in this case, and have decided not to conduct additional enforcement\naction or penalty assessment proceedings at this time. We advise you to correct the items\nidentified in this letter. Failure to do so will result in HIE being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2014-6002W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any portion\nof your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along\nwith the complete original document you must provide a second copy of the document with\nthe portions you believe qualify for confidential treatment redacted and an explanation of why\nyou believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Petronis (#146621)\n3","truncated":false,"body_characters":7726}