{"operation":"document","citation":"CPF 520165009","title":"PHILLIPS 66 PIPELINE LLC — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-10-26","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.401(b)(1), 195.402(a), 195.505(h).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520165009.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520165009.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520165009","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520165009","body":"Notice of Probable Violation involving PHILLIPS 66 PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.401(b)(1),  195.402(a),  195.505(h). The case was opened on 2016-10-26 and is reported as closed as of 2017-09-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520165009_Closure Letter_09222017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Closure%20Letter_09222017.pdf\n\n520165009_Closure Letter_09222017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Closure%20Letter_09222017_text.pdf\n\n520165009_Final Order_06162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Final%20Order_06162017.pdf\n\n520165009_Final Order_06162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Final%20Order_06162017_text.pdf\n\n520165009_NOPV PCO_10262016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_NOPV%20PCO_10262016.pdf\n\n520165009_NOPV PCO_10262016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_NOPV%20PCO_10262016_text.pdf\n\n520165009_Closure Letter_09222017_text.pdf\n\nVIA FED EX – TRACKING NO. 7703 2752 4560\nSeptember 22, 2017\nMr. Todd Denton\nPresident\nPhillips 66 Pipeline LLC\n2331 CityWest Blvd.\nHQ-08-N 812-01\nHouston, Texas 77042\nCPF 5-2016-5009\nClosure Letter\nDear Mr. Denton:\nOn June 16, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Phillips 66 Pipeline a Final Order in the above-referenced case. This Order included\na Compliance Order. Based on our review of the documentation you provided, it has been\ndetermined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nDustin Hubbard\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: Mr. Todd Tullio, Phillips 66, Regulatory Compliance Manager, 1075 W. Sam Houston\nN., Ste. 200, Houston, TX 77043\nPHP-60 Compliance Registry\nPHP-500 C. Allen / T. Jez (#152708)\n\n520165009_Final Order_06162017_text.pdf\n\nJune 16, 2017\nMr. Todd Denton\nPresident\nPhillips 66 Pipeline, LLC\n2331 CityWest Blvd.\nHQ-08-N 812-01\nHouston, Texas 77042\nRe: CPF No. 5-2016-5009\nDear Mr. Denton:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Phillips 66 Pipeline, LLC, to comply with\nthe pipeline safety regulations. When the terms of the compliance order have been completed, as\ndetermined by the Director, Western Region, this enforcement action will be closed. Service of\nthe Final Order by certified mail is deemed effective as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Todd Tullio, Phillips 66, Regulatory Compliance Manager, 2331 CityWest Blvd.,\nHouston, Texas 77042\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)\nPhillips 66 Pipeline, LLC, ) CPF No. 5-2016-5009\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nDuring the period from August 8, 2016, through August 12, 2016, pursuant to 49 U.S.C.\n§ 60117, representatives of the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of\nthe facilities and records of the Phillips 66 Pipeline, LLC (Phillips 66 or Respondent) Powder\nRiver Highly Volatile Liquid (HVL) System in La Junta, Colorado. Respondent, a wholly-\nowned subsidiary of Phillips 66, manages more than 18,000 miles of crude oil, raw natural gas\nliquids, liquefied petroleum gas, and natural gas and petroleum products pipeline systems across\nthe United States. The Powder River HVL System originates in Sage Creek, Wyoming,\nterminates in Borger, Texas, and consists of 705 pipeline miles.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated October 26, 2016, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that Phillips 66 had violated 49 C.F.R. §§ 195.402(a), 195.401(b)(1), and 195.505(h), and\nproposed ordering Respondent to take certain measures to correct the alleged violations.\nPhillips 66 responded to the Notice by email dated November 28, 2016 (Response). Respondent\ndid not contest the allegations of violation and stated that it would comply with the terms of the\nProposed Compliance Order. Respondent did not request a hearing and therefore has waived its\nright to one.\nFINDINGS OF VIOLATION\nIn its Response, Phillips 66 did not contest the allegations in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:\n\n\n\nCPF No. 5-2016-5009\nPage 2\n§ 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\nsystem commence, and appropriate parts shall be kept at locations where operations\nand maintenance activities are conducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow for each\npipeline system a manual of written procedures for conducting normal operations and\nmaintenance activities. Specifically, the Notice alleged that Phillips 66 failed to follow its own\nwritten procedures for conducting Span and Exposed Piping Inspections, including completion of\nappropriate field-inspection forms, in 2013 and 2016.\nAccording to the Notice, Respondent performed inspections of pipeline spans using its written\nprocedure MPR-6020 and Form 15597-N. Pursuant to the Respondent’s written procedures, an\nexposed pipe segment at Mile Post (MP) 3.63 should have had a maximum span length of 40\nfeet.1 The Notice alleged that Respondent’s Form 15597-N from the 2013 inspection record\nnoted that the unsupported span length at MP 3.63 was 46 feet but failed to note that there were\npotential integrity issues or a need for remedial action.\nThe Notice further alleged that in 2016, Respondent used a revised Form 15597-N that explicitly\nincluded entries for the maximum allowable length for a pipeline span, the measured length of an\nunsupported span, and whether remediation was required. However, Phillips 66 again failed to\nnote that the span length at MP 3.63 exceeded the maximum length allowed or to recommend\nany remediation.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its\nown manual of written procedures for conducting normal operations and maintenance activities.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.401(b)(1), which states:\n§ 195.401 General requirements.\n(a) . . . .\n(b) An operator must make repairs on its pipeline system according to the\nfollowing requirements:\n(1) Non Integrity management repairs. Whenever an operator discovers any\ncondition that could adversely affect the safe operation of its pipeline system, it\nmust correct the condition within a reasonable time. However, if the condition is\nof such a nature that it presents an immediate hazard to persons or property, the\n1 According to the Notice, the pipeline span at MP 3.63 consists of an exposed pipe segment 6.625 inches in\ndiameter, with a wall thickness of 0.188 inches, and is made of a steel material with a specified minimum yield\nstrength of 42,000 psig. Pursuant to Respondent’s MPR-6020 Appendix C, the maximum allowable span length for\nthis pipe segment is 40 feet.\n\n\n\nCPF No. 5-2016-5009\nPage 3\noperator may not operate the affected part of the system until it has corrected the\nunsafe condition.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.401(b)(1) by failing to discover a\ncondition that could adversely affect the safe operation of its pipeline system and correct the\ncondition within a reasonable time. Specifically, the Notice alleged that although Phillips 66 had\nprocedures in place to discover conditions that could adversely affect the safe operation of its\npipeline, repeated pipe-span field inspections failed to identify for remediation or repair one\nparticular span that exceeded the company’s maximum safe span length.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.401(b)(1) by failing to discover\na condition that could adversely affect the safe operation of the Powder River HVL pipeline\nsystem and correct the condition within a reasonable time.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.505(h), which states:\n§ 195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The\nprogram shall include provisions to:\n(a) . . . .\n(h) After December 16, 2014, provide training, as appropriate, to ensure that\nindividuals performing covered tasks have the necessary knowledge and skills to\nperform the tasks in a manner that ensures the safe operation of pipeline facilities;\n. . .\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.505(h) by failing to ensure that\nindividuals performing the Span and Exposed Piping Inspection, a covered task, had the\nnecessary knowledge and skills to perform this task in a manner that ensured the safe operation\nof the pipeline system. As stated above, the Notice alleged that Respondent’s personnel\nperforming the Span and Exposed Piping Inspection failed to identify a pipeline span that\nexceeded the company’s maximum allowable safe span length.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 195.505(h) by failing to ensure that\ntheir personnel performing covered tasks had the necessary knowledge and skills to perform the\ntasks in a manner that ensured the safe operation of the pipeline system.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for\nviolations of 49 C.F.R. §§ 195.402(a), 195.401(b)(1), and 195.505(h), respectively. Under 49\nU.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who\n\n\n\nCPF No. 5-2016-5009\nPage 4\nowns or operates a pipeline facility is required to comply with the applicable safety standards\nestablished under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.\n§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the\npipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 195.402(a) (Item 1) pertaining to span and\nexposed piping inspection procedure MPR-6020 and Form 15597-N, Respondent\nmust review and revise its written procedures to include step-by-step instructions to\nits inspectors for adequately inspecting the spans, completing Form 15597-N and\nidentifying conditions that could adversely affect safe operation.\n2. With respect to the violation of § 195.401(b)(1) (Item 2), Respondent must\nreevaluate all spans in the Powder River HVL System as to whether the span lengths\nrequire corrective action or remediation within a reasonable time, as required by\n§ 195.401(b).\n3. With respect to the violation of § 195.505(h) (Item 3), pertaining to training of\npersonnel, Respondent must train its personnel to the revised written procedures as\nrequired by Item 1 listed above.\n4. Respondent must complete all requirements of the Final Order within 30 days of\nreceipt of the Final Order.\n5. It is requested (not mandated) that Phillips 66 maintain documentation of the\nsafety improvement costs associated with fulfilling this Compliance Order and submit\nthe total to Dustin Hubbard, Acting Director, Western Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $200,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Final Order are effective upon receipt of service in accordance\nwith 49 C.F.R. § 190.5.\nJune 16, 2017\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":14040}