# CENEX PIPELINE LLC — Safety Order

- **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:** Not available
- **summary:** CLOSED safety order.
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- **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.

Official case documents:

520155020S_Closure Letter_02052021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Closure%20Letter_02052021.pdf

520155020S_Closure Letter_02052021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Closure%20Letter_02052021_text.pdf

520155020S_Consent Agreement_11242015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Agreement_11242015.pdf

520155020S_Consent Agreement_11242015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Agreement_11242015_text.pdf

520155020S_Consent Order_12162015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Order_12162015.pdf

520155020S_Consent Order_12162015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_Consent%20Order_12162015_text.pdf

520155020S_NOPSO_09152015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_NOPSO_09152015.pdf

520155020S_NOPSO_09152015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520155020S/520155020S_NOPSO_09152015_text.pdf

520155020S_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

520155020S_Closure Letter_02052021_text.pdf

VIA E-MAIL TO MR. GREG BROWN
February 5, 2021
Mr. Greg Brown
President and COO
Cenex Pipeline, LLC
803 Highway 212 South
Laurel, MT 59044
CPF 5-2015-5020S
Closure Letter
Dear Mr. Brown:
I received your letter dated March 4, 2020 regarding the status of the items in the Remedial
Work Plan. I understand that the pipe replacement project from Sidney, Montana to Minot, North
Dakota was completed and successfully tied in to the active Cenex Products Pipeline in June
2020. As a result of this work, all items in the Remedial Work Plan have been completed and
this case is now closed. Thank you for your efforts to complete these items to ensure the long-
term integrity of the Cenex Products Pipeline.
Sincerely,
Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 M. Petronis (#165383)
Ms. Michelle Slyder, DOT Compliance Manager, Cenex Pipeline, LLC
Mr. Corey McIlvain, Manager, Pipeline Operations, Cenex Pipeline, LLC

520155020S_Consent Agreement_11242015_text.pdf

U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
_
)
In the Matter of )
)
Cenex Pipeline, LLC, ) CPF No. 5-2015-5020S
)
Respondent. )
)
CONSENT AGREEMENT
On September 15, 2015, the Regional Director for the Western Region (the Region) of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS or the Agency), issued a Notice of Proposed Safety Order (Notice) to Cenex Pipeline, LLC
(Cenex or Respondent). The Notice alleged that a condition exists on a portion of Respondent’s
Cenex Products Pipeline that poses a pipeline integrity risk to public safety, property, or the
environment. The Notice also proposed that Cenex take certain corrective measures to remedy
the alleged conditions and ensure that the public, property, and the environment are protected
from the potential risk.
On September 24, 2015, Cenex responded to the Notice by timely submitting a letter requesting
informal consultation and removal of the Notice’s 20% pressure restriction in light of the
corrective actions it has taken to address integrity concerns on the pipeline. In that letter, Cenex
also advised PHMSA of its plan to replace the pipe segment at issue. The Region responded on
September 25, 2015, by letter confirming informal consultation and approving removal of the
pressure restriction. An informal consultation was held on October 13, 2015.
During the informal consultation, PHMSA and Cenex agreed that settlement of this proceeding
will avoid further administrative proceedings or litigation and that entry into this Consent
Agreement is the most appropriate means of resolving issues raised in the Notice and in the
public interest. Therefore, pursuant to 49 C.F.R. Part 190, and without adjudication of any issue
of fact or law, and upon consent and agreement of Respondent and PHMSA (Parties), the Parties
agree as follows:
I. General Provisions
1. Respondent acknowledges that as operator of the Cenex Products Pipeline,
Respondent and its pipeline system are subject to the jurisdiction of the Federal pipeline safety
laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder.
For purposes of this Consent Agreement, Respondent acknowledges that it received proper
notice of PHMSA's action in this proceeding and that the Notice states claims upon which relief



CPF No. 5-2015-5020S
may be granted pursuant to 49 U.S.C. § 60101, et seq., and the regulations and orders issued
thereunder.
2. Respondent does not admit or deny any allegation or conclusion in the Notice but
agrees, for purposes of this Consent Agreement, to address the integrity risks identified in the
Notice by completing the actions specified in Section III of this agreement (Corrective
Measures) and to abide by the terms of this Consent Agreement. These actions, including any
work plans and schedules, shall automatically be incorporated into this Consent Agreement. This
Consent Agreement does not constitute a finding of violation of any Federal law or regulation
and may not be used in any civil or administrative proceeding of any kind as evidence or proof of
any fact, fault or liability, or as evidence of the violation of any law, rule, regulation or
requirement, except in a proceeding to enforce the provisions of this Consent Agreement.
3. After Respondent returns this signed agreement, PHMSA's representative will
present it to the Associate Administrator for Pipeline Safety recommending that the Associate
Administrator adopt the terms of this agreement by issuing an administrative order (Consent
Order) incorporating the terms of this Consent Agreement. The terms of this agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of the agreement.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any
further procedural requirements with respect to its issuance. Respondent waives all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Consent Agreement,
including all rights to administrative or judicial hearings or appeals. Upon issuance of a Consent
Order for this matter, Respondent’s Request for Hearing will be deemed withdrawn.
5. This Consent Agreement shall apply to and be binding upon PHMSA, and upon
Respondent, its officers, directors, and employees, and its successors, assigns, or other entities or
persons otherwise bound by law. Respondent agrees to provide a copy of this Consent
Agreement and any incorporated work plans and schedules to all of Respondent's officers,
employees, and agents whose duties might reasonably include compliance with this Consent
Agreement.
6. For all transfers of ownership or operating responsibility of Cenex or the Cenex
Products Pipeline, Respondent shall provide a copy of this Consent Agreement to the prospective
transferee at least 30 days prior to such transfer and simultaneously provide written notice of the
prospective transfer to the PHMSA Western Region Director (Director) who issued the Notice.
7. This Consent Agreement constitutes the final, complete and exclusive agreement
and understanding between the Parties with respect to the settlement embodied in this Consent
Agreement, and the Parties acknowledge that there are no representations, agreements or
understandings relating to the settlement other than those expressly contained in this Consent
Agreement, except that the terms of this Consent Agreement may be construed by reference to
the Notice.
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CPF No. 5-2015-5020S
8. Nothing in this Consent Agreement affects or relieves Respondent of its
responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49
U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this
Consent Agreement alters the PHMSA's right of access, entry, inspection, and information
gathering or the PHMSA's authority to bring enforcement actions against Respondent pursuant to
the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other
provision of Federal or State law.
9. This Consent Agreement does not waive or modify any Federal, State, or local
laws or regulations that are applicable to Respondent's pipeline systems. This Consent
Agreement is not a permit, or a modification of any permit, under any Federal, State, or local
laws or regulations. Respondent remains responsible for achieving and maintaining compliance
with all applicable Federal, State, and local laws, regulations and permits.
10. This Consent Agreement does not create rights in, or grant any cause of action to,
any third party not a party to this Consent Agreement. The U.S. Department of Transportation is
not liable for any injuries or damages to persons or property arising from acts or omissions of
Respondent or its officers, employees, or agents carrying out the work required by this Consent
Agreement. Respondent agrees to hold harmless the U.S. Department of Transportation, its
officers, employees, agents, and representatives from any and all causes of action arising from
any acts or omissions of Respondent or its contractors in carrying out any work required by this
Consent Agreement.
II. Completed Corrective Measures
11. Definitions:
The term “Affected Segment,” as referenced in Sections II and III of this Consent
Agreement, means the segment of Respondent’s Cenex Products Pipeline that runs from the
Glendive Pump Station in Montana to the Minot Pump Station in North Dakota.
The term “Safety-Related Condition” as referenced in Section II, means the condition
identified in Respondent’s safety-related condition report, #20150009, that was submitted to
PHMSA on January 23, 2015.
12. In response to the Safety-Related Condition, to date, Cenex has completed the
following corrective measures:
(A) Implemented a voluntary 20% pressure restriction.
(B) From February to April 2015, Respondent assessed the Affected Segment
by inline inspection (ILI), using an ultrasonic tool (UT) to verify the
December 10, 2013 magnetic flux leakage (MFL) ILI results. A final
report was received on June 30, 2015.
Respondent repaired all of the UT ILI metal loss features that exceeded
40%. In addition, Respondent applied a 29% tolerance to all 2013 MFL
3
(C)



CPF No. 5-2015-5020S
(D) (E) (F) (G) (H) (I) metal loss callouts and re-analyzed the data to determine if any anomalies
met its repair criteria (all of the metal loss feature field measurements
were found to be within the newly-established 29% tolerance). In total,
from January through September 2015, Respondent performed 42
additional metal-loss inspections and completed 41 repairs, two of which
were made following the 2015 ILI (following application of 10% tolerance
to the UT ILI data).
Based on the 2015 ILI data, the worst-case depth of any metal loss feature
remaining in the Affected Segment is a 38% external metal loss feature.
Pursuant to 49 C.F.R. Part 195, Respondent has repaired all defects within
the Affected Segment meeting Cenex’s repair criteria using a 29%
tolerance for the MFL ILI metal loss features and all UT ILI metal loss
features that exceed 40%.
On September 14, 2015, Respondent retained the contract services of a
NACE Cathodic Protection Specialist (NACE CP Specialist) to analyze
the cathodic protection on the Affected Segment and to make
recommendations to address any cathodic protection issues that may be
discovered.
In response to cathodic protection deficiencies, Respondent isolated the
Glendive Terminal piping and tankage from the Affected Segment, which
resulted in the improvement of pipe-to-soil readings on the Affected
Segment.
The NACE CP Specialist analyzed current requirement information on a
portion of the first 57 miles of the Affected Segment and based on that
study, Respondent plans to install four additional rectifiers on that portion.
Respondent commissioned the NACE CP Specialist to perform an On-
Off-Static close interval survey on the first 50 miles of the Affected
Segment, which was completed on October 5, 2015. The NACE CP
Specialist’s report was delivered to Respondent on October 12, 2015.
On September 24, 2015, Respondent submitted a report summarizing the
actions referenced above to the PHMSA Western Region Director and
requesting removal of the 20% pressure restriction set forth in the
NOPSO. In response, PHMSA issued a letter on September 25, 2015,
approving the removal of the pressure restriction.
III. Corrective Measures
13. Upon issuance of the Consent Order, Respondent agrees to perform the additional
Corrective Measures set forth below.
4



CPF No. 5-2015-5020S
14. Within 60 days after the Consent Order is issued, develop and submit to the
Director for approval a written remedial work plan that includes corrective measures. The work
plan must include:
(A) (B) (C) (D) (E) (F) (G) The implementation of recommendations received from the NACE CP
Specialist, including the installation of additional rectifiers within the first
13 miles of the Affected Segment;
Review of the most current ILI data available for the Affected Segment in
an effort to establish an average anomaly growth rate. Make the growth
rate analysis results available for review by PHMSA.
Perform a static close interval survey of the Affected Segment to be used
in conjunction with the 2013 close interval survey to determine whether
and to what extent the conditions described in the Notice are present
elsewhere on the Affected Segment. Make the results of the static close
interval survey and field examination reports available for review by
PHMSA.
Perform a review of corrosion mitigation procedures that may have
contributed to the current conditions;
Update Cenex’s integrity management program to include a requirement
that Respondent provide field measurement data to ILI vendors to allow
them to assess the accuracy of their algorithms and make adjustments if
necessary;
The performance of repairs or other corrective measures that fully
remediate the identified risk conditions. Include provisions for pipe
replacement and continuing long-term periodic testing and integrity
verification measures to ensure the ongoing safe operation of the pipeline,
considering the results of the analyses, inspections, and corrective
measures undertaken;
A proposed schedule for completion of the actions required by paragraphs
14(A) - (F) of this Consent Agreement.
15. Revise the remedial work plan as necessary to incorporate new information
obtained during the evaluations and associated remedial activities. Submit any such plan
revisions to the Director for prior approval. The Director may approve plan elements
incrementally. The remedial work plan shall become incorporated into the Consent Order.
16. revisions to the plan.
Implement the remedial work plan as it is approved by the Director, including any
17. Submit quarterly reports to the Director that: (1) include available data and results
of the testing and evaluations required by the Consent Order; and (2) describe the progress of the
5



CPF No. 5-2015-5020S
repairs and other remedial actions being undertaken. The first quarterly report will be due 90
days after the Consent Order is issued, with subsequent reports due every 90 days thereafter until
this Consent Agreement is terminated.
18. The Director may grant an extension of time for compliance with any of the terms
of the Consent Agreement upon a written request timely submitted demonstrating good cause for
an extension.
19. Respondent may appeal any decision of the Director to the Associate
Administrator for Pipeline Safety. Decisions of the Associate Administrator shall be final.
20. PHMSA requests that Respondent maintain documentation of the safety
improvement costs associated with fulfilling the Consent Order and submit the total to the
Director. PHMSA requests 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.
IV. Review and Approval Process
21. With respect to any submission under Section III of this Consent Agreement that
requires the approval of the Region Director, the Director may: (a) approve, in whole or in part,
the submission; (b) approve the submission on specified conditions; (c) disapprove, in whole or
in part, the submission; or (d) any combination of the foregoing. If the Region Director
approves, approves in part, or approves with conditions, Respondent will take all action as
approved by the Director, subject to Respondent's right to invoke the dispute resolution
procedures in Section V with respect to any conditions the Director identifies. If the Director
disapproves all or any portion of the submission, the Director will provide Respondent with a
written notice of the deficiencies. Respondent will correct all deficiencies within the time
specified by the Director and resubmit it for approval.
V. Dispute Resolution
22. The Region Director and Respondent will informally attempt to resolve any
disputes arising under this Consent Agreement. If Respondent and the Region Director are
unable to informally resolve the dispute within 15 days, Respondent may request in writing,
within 10 days, a written determination resolving the dispute from the Associate Administrator
for Pipeline Safety providing all information that Respondent believes is relevant to the dispute.
If the request is submitted as provided herein, the Associate Administrator will issue a final
determination in writing. The existence of a dispute and PHMSA's consideration of matters
placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any
work to be performed under this agreement during the pendency of the dispute resolution process
except as agreed by the Region Director or the Associate Administrator in writing.
VI. Enforcement
23. This Consent Agreement, as adopted by the Consent Order, is subject to all
enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R.
6



CPF No. 5-2015-5020S
Part 190. All work plans and associated schedules set forth or referenced in Section II will be
automatically incorporated into this Consent Agreement and are enforceable in the same manner.
VII. Recordkeeping and Information Disclosure
24. Unless otherwise required in this Consent Agreement, Respondent agrees to
maintain records demonstrating compliance with all requirements of this Consent Agreement for
a period of at least five years following completion of all work to be performed. For any reports,
plans, or other deliverables required to be submitted to the PHMSA pursuant to this Consent
Agreement, Respondent may assert a claim of business confidentiality or other protections
applicable to the release of information by PHMSA, covering part or all of the information
required to be submitted to PHMSA pursuant to this agreement in accordance with 49 C.F.R.
Part 7. Respondent must mark the claim of confidentiality in writing on each page, and include a
statement specifying the grounds for each claim of confidentially. In accordance with applicable
law, PHMSA will notify Respondent of any requests for public disclosure of information marked
confidential before disclosure, and allow Respondent to substantiate its claim of protected status.
VIII. Effective Date
25. The “Effective Date” as used herein is the date on which the Consent Order is
issued by the Associate Administrator incorporating the terms of this Agreement. Unless
specified to the contrary, all deadlines for actions required by this Consent Agreement run from
the Effective Date of this Order.
IX. Modification
26. The terms of this Consent Agreement may be modified by mutual agreement of
the Parties. Such modifications must be in writing and signed by both parties.
X. Termination
27. This Consent Agreement terminates upon completion of all terms set forth in
Section II (Corrective Measures) as determined by the Director, Western Region. Respondent
may request written confirmation from PHMSA when this Consent Agreement is terminated. To
the extent ongoing monitoring is required, PHMSA may terminate this Consent Agreement with
respect to all other requirements with the exception of such monitoring. Nothing in this Consent
Agreement prevents Respondent from completing any of the obligations earlier than the
deadlines provided for in this Agreement.
XI. Ratification
28. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Consent Agreement and to execute and legally bind
such party to this document.
29. The Parties hereby agree to all conditions and terms of this Consent Agreement:
7



CPF No. 5-2015-5020S
For Respondent:
______________________________
Richard S. Petersen
President
Cenex Pipeline, LLC
______________________________
Date
For PHMSA:
_____________________________
Chris Hoidal
Director, Office of Pipeline Safety
PHMSA Western Region
U.S. Department of Transportation
_____________________________
Date
8

520155020S_Consent Order_12162015_text.pdf

December 16, 2015
Mr. Richard S. Petersen
President
Cenex Pipeline, LLC
PO Box 909
Laurel, MT 59044
Re: CPF No. 5-2015-5020S
Dear Mr. Petersen:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement
between Pipeline and Hazardous Materials Safety Administration (PHMSA) and Cenex Pipeline,
LLC which was executed on November 24, 2015. Service of the Consent Order and Consent
Agreement 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: Director, Western Region, PHMSA
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 )
)
Cenex Pipeline, LLC, ) CPF No. 5-2015-5020S
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated September 15, 2015, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to
Cenex Pipeline, LLC (Cenex or Respondent), which operates the Cenex Products Pipeline in
Montana and North Dakota.
In accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions existed on the
pipeline that might pose an integrity risk to public safety, property, or the environment. The
Notice also proposed that Cenex take certain corrective measures to remedy the alleged
conditions and ensure that the public, property, and the environment were protected from the
potential risk.
In response to the Notice, Respondent requested an informal consultation, whereupon the parties
engaged in good-faith settlement discussions that resulted in the Consent Agreement attached to
this Order and that settles all of the allegations in the Notice. Accordingly, the foregoing
Consent Agreement is hereby approved and incorporated by reference into this Order. The
Respondent is hereby ordered to comply with the terms of the Consent Agreement, effective
immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties of up to $200,000 per violation per day, or in the referral of the case
for judicial enforcement. The terms and conditions of this Consent Order are effective upon
service in accordance with 49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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