{"operation":"document","citation":"CPF 520155020S","title":"CENEX PIPELINE LLC — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2015-09-15","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520155020s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520155020s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520155020s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520155020S","body":"Safety Order involving CENEX PIPELINE LLC. The dataset does not identify a cited regulation for this case. The case was opened on 2015-09-15 and is reported as closed as of 2021-02-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520155020S_Closure Letter_02052021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Closure%20Letter_02052021.pdf\n\n520155020S_Closure Letter_02052021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Closure%20Letter_02052021_text.pdf\n\n520155020S_Consent Agreement_11242015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Agreement_11242015.pdf\n\n520155020S_Consent Agreement_11242015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Agreement_11242015_text.pdf\n\n520155020S_Consent Order_12162015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Order_12162015.pdf\n\n520155020S_Consent Order_12162015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Order_12162015_text.pdf\n\n520155020S_NOPSO_09152015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_NOPSO_09152015.pdf\n\n520155020S_NOPSO_09152015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_NOPSO_09152015_text.pdf\n\n520155020S_Operator Response to Notice and Request for Informal Consultation_09242015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Operator%20Response%20to%20Notice%20and%20Request%20for%20Informal%20Consultation_09242015.pdf\n\n520155020S_Closure Letter_02052021_text.pdf\n\nVIA E-MAIL TO MR. GREG BROWN\nFebruary 5, 2021\nMr. Greg Brown\nPresident and COO\nCenex Pipeline, LLC\n803 Highway 212 South\nLaurel, MT 59044\nCPF 5-2015-5020S\nClosure Letter\nDear Mr. Brown:\nI received your letter dated March 4, 2020 regarding the status of the items in the Remedial\nWork Plan. I understand that the pipe replacement project from Sidney, Montana to Minot, North\nDakota was completed and successfully tied in to the active Cenex Products Pipeline in June\n2020. As a result of this work, all items in the Remedial Work Plan have been completed and\nthis case is now closed. Thank you for your efforts to complete these items to ensure the long-\nterm integrity of the Cenex Products Pipeline.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Petronis (#165383)\nMs. Michelle Slyder, DOT Compliance Manager, Cenex Pipeline, LLC\nMr. Corey McIlvain, Manager, Pipeline Operations, Cenex Pipeline, LLC\n\n520155020S_Consent Agreement_11242015_text.pdf\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\n_\n)\nIn the Matter of )\n)\nCenex Pipeline, LLC, ) CPF No. 5-2015-5020S\n)\nRespondent. )\n)\nCONSENT AGREEMENT\nOn September 15, 2015, the Regional Director for the Western Region (the Region) of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS or the Agency), issued a Notice of Proposed Safety Order (Notice) to Cenex Pipeline, LLC\n(Cenex or Respondent). The Notice alleged that a condition exists on a portion of Respondent’s\nCenex Products Pipeline that poses a pipeline integrity risk to public safety, property, or the\nenvironment. The Notice also proposed that Cenex take certain corrective measures to remedy\nthe alleged conditions and ensure that the public, property, and the environment are protected\nfrom the potential risk.\nOn September 24, 2015, Cenex responded to the Notice by timely submitting a letter requesting\ninformal consultation and removal of the Notice’s 20% pressure restriction in light of the\ncorrective actions it has taken to address integrity concerns on the pipeline. In that letter, Cenex\nalso advised PHMSA of its plan to replace the pipe segment at issue. The Region responded on\nSeptember 25, 2015, by letter confirming informal consultation and approving removal of the\npressure restriction. An informal consultation was held on October 13, 2015.\nDuring the informal consultation, PHMSA and Cenex agreed that settlement of this proceeding\nwill avoid further administrative proceedings or litigation and that entry into this Consent\nAgreement is the most appropriate means of resolving issues raised in the Notice and in the\npublic interest. Therefore, pursuant to 49 C.F.R. Part 190, and without adjudication of any issue\nof fact or law, and upon consent and agreement of Respondent and PHMSA (Parties), the Parties\nagree as follows:\nI. General Provisions\n1. Respondent acknowledges that as operator of the Cenex Products Pipeline,\nRespondent and its pipeline system are subject to the jurisdiction of the Federal pipeline safety\nlaws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder.\nFor purposes of this Consent Agreement, Respondent acknowledges that it received proper\nnotice of PHMSA's action in this proceeding and that the Notice states claims upon which relief\n\n\n\nCPF No. 5-2015-5020S\nmay be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued\nthereunder.\n2. Respondent does not admit or deny any allegation or conclusion in the Notice but\nagrees, for purposes of this Consent Agreement, to address the integrity risks identified in the\nNotice by completing the actions specified in Section III of this agreement (Corrective\nMeasures) and to abide by the terms of this Consent Agreement. These actions, including any\nwork plans and schedules, shall automatically be incorporated into this Consent Agreement. This\nConsent Agreement does not constitute a finding of violation of any Federal law or regulation\nand may not be used in any civil or administrative proceeding of any kind as evidence or proof of\nany fact, fault or liability, or as evidence of the violation of any law, rule, regulation or\nrequirement, except in a proceeding to enforce the provisions of this Consent Agreement.\n3. After Respondent returns this signed agreement, PHMSA's representative will\npresent it to the Associate Administrator for Pipeline Safety recommending that the Associate\nAdministrator adopt the terms of this agreement by issuing an administrative order (Consent\nOrder) incorporating the terms of this Consent Agreement. The terms of this agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of the agreement.\n4. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Consent Agreement,\nincluding all rights to administrative or judicial hearings or appeals. Upon issuance of a Consent\nOrder for this matter, Respondent’s Request for Hearing will be deemed withdrawn.\n5. This Consent Agreement shall apply to and be binding upon PHMSA, and upon\nRespondent, its officers, directors, and employees, and its successors, assigns, or other entities or\npersons otherwise bound by law. Respondent agrees to provide a copy of this Consent\nAgreement and any incorporated work plans and schedules to all of Respondent's officers,\nemployees, and agents whose duties might reasonably include compliance with this Consent\nAgreement.\n6. For all transfers of ownership or operating responsibility of Cenex or the Cenex\nProducts Pipeline, Respondent shall provide a copy of this Consent Agreement to the prospective\ntransferee at least 30 days prior to such transfer and simultaneously provide written notice of the\nprospective transfer to the PHMSA Western Region Director (Director) who issued the Notice.\n7. This Consent Agreement constitutes the final, complete and exclusive agreement\nand understanding between the Parties with respect to the settlement embodied in this Consent\nAgreement, and the Parties acknowledge that there are no representations, agreements or\nunderstandings relating to the settlement other than those expressly contained in this Consent\nAgreement, except that the terms of this Consent Agreement may be construed by reference to\nthe Notice.\n2\n\n\n\nCPF No. 5-2015-5020S\n8. Nothing in this Consent Agreement affects or relieves Respondent of its\nresponsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49\nU.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this\nConsent Agreement alters the PHMSA's right of access, entry, inspection, and information\ngathering or the PHMSA's authority to bring enforcement actions against Respondent pursuant to\nthe Federal pipeline safety laws, the regulations and orders issued thereunder, or any other\nprovision of Federal or State law.\n9. This Consent Agreement does not waive or modify any Federal, State, or local\nlaws or regulations that are applicable to Respondent's pipeline systems. This Consent\nAgreement is not a permit, or a modification of any permit, under any Federal, State, or local\nlaws or regulations. Respondent remains responsible for achieving and maintaining compliance\nwith all applicable Federal, State, and local laws, regulations and permits.\n10. This Consent Agreement does not create rights in, or grant any cause of action to,\nany third party not a party to this Consent Agreement. The U.S. Department of Transportation is\nnot liable for any injuries or damages to persons or property arising from acts or omissions of\nRespondent or its officers, employees, or agents carrying out the work required by this Consent\nAgreement. Respondent agrees to hold harmless the U.S. Department of Transportation, its\nofficers, employees, agents, and representatives from any and all causes of action arising from\nany acts or omissions of Respondent or its contractors in carrying out any work required by this\nConsent Agreement.\nII. Completed Corrective Measures\n11. Definitions:\nThe term “Affected Segment,” as referenced in Sections II and III of this Consent\nAgreement, means the segment of Respondent’s Cenex Products Pipeline that runs from the\nGlendive Pump Station in Montana to the Minot Pump Station in North Dakota.\nThe term “Safety-Related Condition” as referenced in Section II, means the condition\nidentified in Respondent’s safety-related condition report, #20150009, that was submitted to\nPHMSA on January 23, 2015.\n12. In response to the Safety-Related Condition, to date, Cenex has completed the\nfollowing corrective measures:\n(A) Implemented a voluntary 20% pressure restriction.\n(B) From February to April 2015, Respondent assessed the Affected Segment\nby inline inspection (ILI), using an ultrasonic tool (UT) to verify the\nDecember 10, 2013 magnetic flux leakage (MFL) ILI results. A final\nreport was received on June 30, 2015.\nRespondent repaired all of the UT ILI metal loss features that exceeded\n40%. In addition, Respondent applied a 29% tolerance to all 2013 MFL\n3\n(C)\n\n\n\nCPF No. 5-2015-5020S\n(D) (E) (F) (G) (H) (I) metal loss callouts and re-analyzed the data to determine if any anomalies\nmet its repair criteria (all of the metal loss feature field measurements\nwere found to be within the newly-established 29% tolerance). In total,\nfrom January through September 2015, Respondent performed 42\nadditional metal-loss inspections and completed 41 repairs, two of which\nwere made following the 2015 ILI (following application of 10% tolerance\nto the UT ILI data).\nBased on the 2015 ILI data, the worst-case depth of any metal loss feature\nremaining in the Affected Segment is a 38% external metal loss feature.\nPursuant to 49 C.F.R. Part 195, Respondent has repaired all defects within\nthe Affected Segment meeting Cenex’s repair criteria using a 29%\ntolerance for the MFL ILI metal loss features and all UT ILI metal loss\nfeatures that exceed 40%.\nOn September 14, 2015, Respondent retained the contract services of a\nNACE Cathodic Protection Specialist (NACE CP Specialist) to analyze\nthe cathodic protection on the Affected Segment and to make\nrecommendations to address any cathodic protection issues that may be\ndiscovered.\nIn response to cathodic protection deficiencies, Respondent isolated the\nGlendive Terminal piping and tankage from the Affected Segment, which\nresulted in the improvement of pipe-to-soil readings on the Affected\nSegment.\nThe NACE CP Specialist analyzed current requirement information on a\nportion of the first 57 miles of the Affected Segment and based on that\nstudy, Respondent plans to install four additional rectifiers on that portion.\nRespondent commissioned the NACE CP Specialist to perform an On-\nOff-Static close interval survey on the first 50 miles of the Affected\nSegment, which was completed on October 5, 2015. The NACE CP\nSpecialist’s report was delivered to Respondent on October 12, 2015.\nOn September 24, 2015, Respondent submitted a report summarizing the\nactions referenced above to the PHMSA Western Region Director and\nrequesting removal of the 20% pressure restriction set forth in the\nNOPSO. In response, PHMSA issued a letter on September 25, 2015,\napproving the removal of the pressure restriction.\nIII. Corrective Measures\n13. Upon issuance of the Consent Order, Respondent agrees to perform the additional\nCorrective Measures set forth below.\n4\n\n\n\nCPF No. 5-2015-5020S\n14. Within 60 days after the Consent Order is issued, develop and submit to the\nDirector for approval a written remedial work plan that includes corrective measures. The work\nplan must include:\n(A) (B) (C) (D) (E) (F) (G) The implementation of recommendations received from the NACE CP\nSpecialist, including the installation of additional rectifiers within the first\n13 miles of the Affected Segment;\nReview of the most current ILI data available for the Affected Segment in\nan effort to establish an average anomaly growth rate. Make the growth\nrate analysis results available for review by PHMSA.\nPerform a static close interval survey of the Affected Segment to be used\nin conjunction with the 2013 close interval survey to determine whether\nand to what extent the conditions described in the Notice are present\nelsewhere on the Affected Segment. Make the results of the static close\ninterval survey and field examination reports available for review by\nPHMSA.\nPerform a review of corrosion mitigation procedures that may have\ncontributed to the current conditions;\nUpdate Cenex’s integrity management program to include a requirement\nthat Respondent provide field measurement data to ILI vendors to allow\nthem to assess the accuracy of their algorithms and make adjustments if\nnecessary;\nThe performance of repairs or other corrective measures that fully\nremediate the identified risk conditions. Include provisions for pipe\nreplacement and continuing long-term periodic testing and integrity\nverification measures to ensure the ongoing safe operation of the pipeline,\nconsidering the results of the analyses, inspections, and corrective\nmeasures undertaken;\nA proposed schedule for completion of the actions required by paragraphs\n14(A) - (F) of this Consent Agreement.\n15. Revise the remedial work plan as necessary to incorporate new information\nobtained during the evaluations and associated remedial activities. Submit any such plan\nrevisions to the Director for prior approval. The Director may approve plan elements\nincrementally. The remedial work plan shall become incorporated into the Consent Order.\n16. revisions to the plan.\nImplement the remedial work plan as it is approved by the Director, including any\n17. Submit quarterly reports to the Director that: (1) include available data and results\nof the testing and evaluations required by the Consent Order; and (2) describe the progress of the\n5\n\n\n\nCPF No. 5-2015-5020S\nrepairs and other remedial actions being undertaken. The first quarterly report will be due 90\ndays after the Consent Order is issued, with subsequent reports due every 90 days thereafter until\nthis Consent Agreement is terminated.\n18. The Director may grant an extension of time for compliance with any of the terms\nof the Consent Agreement upon a written request timely submitted demonstrating good cause for\nan extension.\n19. Respondent may appeal any decision of the Director to the Associate\nAdministrator for Pipeline Safety. Decisions of the Associate Administrator shall be final.\n20. PHMSA requests that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling the Consent Order and submit the total to the\nDirector. PHMSA requests that these costs be reported in two categories: 1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated\nwith replacements, additions and other changes to pipeline infrastructure.\nIV. Review and Approval Process\n21. With respect to any submission under Section III of this Consent Agreement that\nrequires the approval of the Region Director, the Director may: (a) approve, in whole or in part,\nthe submission; (b) approve the submission on specified conditions; (c) disapprove, in whole or\nin part, the submission; or (d) any combination of the foregoing. If the Region Director\napproves, approves in part, or approves with conditions, Respondent will take all action as\napproved by the Director, subject to Respondent's right to invoke the dispute resolution\nprocedures in Section V with respect to any conditions the Director identifies. If the Director\ndisapproves all or any portion of the submission, the Director will provide Respondent with a\nwritten notice of the deficiencies. Respondent will correct all deficiencies within the time\nspecified by the Director and resubmit it for approval.\nV. Dispute Resolution\n22. The Region Director and Respondent will informally attempt to resolve any\ndisputes arising under this Consent Agreement. If Respondent and the Region Director are\nunable to informally resolve the dispute within 15 days, Respondent may request in writing,\nwithin 10 days, a written determination resolving the dispute from the Associate Administrator\nfor Pipeline Safety providing all information that Respondent believes is relevant to the dispute.\nIf the request is submitted as provided herein, the Associate Administrator will issue a final\ndetermination in writing. The existence of a dispute and PHMSA's consideration of matters\nplaced in dispute will not excuse, toll, or suspend any term or timeframe for completion of any\nwork to be performed under this agreement during the pendency of the dispute resolution process\nexcept as agreed by the Region Director or the Associate Administrator in writing.\nVI. Enforcement\n23. This Consent Agreement, as adopted by the Consent Order, is subject to all\nenforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R.\n6\n\n\n\nCPF No. 5-2015-5020S\nPart 190. All work plans and associated schedules set forth or referenced in Section II will be\nautomatically incorporated into this Consent Agreement and are enforceable in the same manner.\nVII. Recordkeeping and Information Disclosure\n24. Unless otherwise required in this Consent Agreement, Respondent agrees to\nmaintain records demonstrating compliance with all requirements of this Consent Agreement for\na period of at least five years following completion of all work to be performed. For any reports,\nplans, or other deliverables required to be submitted to the PHMSA pursuant to this Consent\nAgreement, Respondent may assert a claim of business confidentiality or other protections\napplicable to the release of information by PHMSA, covering part or all of the information\nrequired to be submitted to PHMSA pursuant to this agreement in accordance with 49 C.F.R.\nPart 7. Respondent must mark the claim of confidentiality in writing on each page, and include a\nstatement specifying the grounds for each claim of confidentially. In accordance with applicable\nlaw, PHMSA will notify Respondent of any requests for public disclosure of information marked\nconfidential before disclosure, and allow Respondent to substantiate its claim of protected status.\nVIII. Effective Date\n25. The “Effective Date” as used herein is the date on which the Consent Order is\nissued by the Associate Administrator incorporating the terms of this Agreement. Unless\nspecified to the contrary, all deadlines for actions required by this Consent Agreement run from\nthe Effective Date of this Order.\nIX. Modification\n26. The terms of this Consent Agreement may be modified by mutual agreement of\nthe Parties. Such modifications must be in writing and signed by both parties.\nX. Termination\n27. This Consent Agreement terminates upon completion of all terms set forth in\nSection II (Corrective Measures) as determined by the Director, Western Region. Respondent\nmay request written confirmation from PHMSA when this Consent Agreement is terminated. To\nthe extent ongoing monitoring is required, PHMSA may terminate this Consent Agreement with\nrespect to all other requirements with the exception of such monitoring. Nothing in this Consent\nAgreement prevents Respondent from completing any of the obligations earlier than the\ndeadlines provided for in this Agreement.\nXI. Ratification\n28. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Consent Agreement and to execute and legally bind\nsuch party to this document.\n29. The Parties hereby agree to all conditions and terms of this Consent Agreement:\n7\n\n\n\nCPF No. 5-2015-5020S\nFor Respondent:\n______________________________\nRichard S. Petersen\nPresident\nCenex Pipeline, LLC\n______________________________\nDate\nFor PHMSA:\n_____________________________\nChris Hoidal\nDirector, Office of Pipeline Safety\nPHMSA Western Region\nU.S. Department of Transportation\n_____________________________\nDate\n8\n\n520155020S_Consent Order_12162015_text.pdf\n\nDecember 16, 2015\nMr. Richard S. Petersen\nPresident\nCenex Pipeline, LLC\nPO Box 909\nLaurel, MT 59044\nRe: CPF No. 5-2015-5020S\nDear Mr. Petersen:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement\nbetween Pipeline and Hazardous Materials Safety Administration (PHMSA) and Cenex Pipeline,\nLLC which was executed on November 24, 2015. Service of the Consent Order and Consent\nAgreement 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: Director, Western Region, PHMSA\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____________________________________\n)\nIn the Matter of )\n)\nCenex Pipeline, LLC, ) CPF No. 5-2015-5020S\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated September 15, 2015, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to\nCenex Pipeline, LLC (Cenex or Respondent), which operates the Cenex Products Pipeline in\nMontana and North Dakota.\nIn accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions existed on the\npipeline that might pose an integrity risk to public safety, property, or the environment. The\nNotice also proposed that Cenex take certain corrective measures to remedy the alleged\nconditions and ensure that the public, property, and the environment were protected from the\npotential risk.\nIn response to the Notice, Respondent requested an informal consultation, whereupon the parties\nengaged in good-faith settlement discussions that resulted in the Consent Agreement attached to\nthis Order and that settles all of the allegations in the Notice. Accordingly, the foregoing\nConsent Agreement is hereby approved and incorporated by reference into this Order. The\nRespondent is hereby ordered to comply with the terms of the Consent Agreement, effective\nimmediately.\nPursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case\nfor judicial enforcement. The terms and conditions of this Consent Order are effective upon\nservice in accordance with 49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":24860}