# PHILLIPS 66 PIPELINE LLC — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.401(b)(1), 195.402(a), 195.505(h).
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- **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.

Official case documents:

520165009_Closure Letter_09222017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Closure%20Letter_09222017.pdf

520165009_Closure Letter_09222017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Closure%20Letter_09222017_text.pdf

520165009_Final Order_06162017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Final%20Order_06162017.pdf

520165009_Final Order_06162017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_Final%20Order_06162017_text.pdf

520165009_NOPV PCO_10262016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_NOPV%20PCO_10262016.pdf

520165009_NOPV PCO_10262016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520165009/520165009_NOPV%20PCO_10262016_text.pdf

520165009_Closure Letter_09222017_text.pdf

VIA FED EX – TRACKING NO. 7703 2752 4560
September 22, 2017
Mr. Todd Denton
President
Phillips 66 Pipeline LLC
2331 CityWest Blvd.
HQ-08-N 812-01
Houston, Texas 77042
CPF 5-2016-5009
Closure Letter
Dear Mr. Denton:
On June 16, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to Phillips 66 Pipeline a Final Order in the above-referenced case. This Order included
a Compliance Order. Based on our review of the documentation you provided, it has been
determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Dustin Hubbard
Acting Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: Mr. Todd Tullio, Phillips 66, Regulatory Compliance Manager, 1075 W. Sam Houston
N., Ste. 200, Houston, TX 77043
PHP-60 Compliance Registry
PHP-500 C. Allen / T. Jez (#152708)

520165009_Final Order_06162017_text.pdf

June 16, 2017
Mr. Todd Denton
President
Phillips 66 Pipeline, LLC
2331 CityWest Blvd.
HQ-08-N 812-01
Houston, Texas 77042
Re: CPF No. 5-2016-5009
Dear Mr. Denton:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by Phillips 66 Pipeline, LLC, to comply with
the pipeline safety regulations. When the terms of the compliance order have been completed, as
determined by the Director, Western Region, this enforcement action will be closed. Service of
the Final Order by certified mail is deemed effective as provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. Todd Tullio, Phillips 66, Regulatory Compliance Manager, 2331 CityWest Blvd.,
Houston, Texas 77042
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 )
)
Phillips 66 Pipeline, LLC, ) CPF No. 5-2016-5009
)
Respondent. )
____________________________________)
FINAL ORDER
During the period from August 8, 2016, through August 12, 2016, pursuant to 49 U.S.C.
§ 60117, representatives of the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of
the facilities and records of the Phillips 66 Pipeline, LLC (Phillips 66 or Respondent) Powder
River Highly Volatile Liquid (HVL) System in La Junta, Colorado. Respondent, a wholly-
owned subsidiary of Phillips 66, manages more than 18,000 miles of crude oil, raw natural gas
liquids, liquefied petroleum gas, and natural gas and petroleum products pipeline systems across
the United States. The Powder River HVL System originates in Sage Creek, Wyoming,
terminates in Borger, Texas, and consists of 705 pipeline miles.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated October 26, 2016, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that Phillips 66 had violated 49 C.F.R. §§ 195.402(a), 195.401(b)(1), and 195.505(h), and
proposed ordering Respondent to take certain measures to correct the alleged violations.
Phillips 66 responded to the Notice by email dated November 28, 2016 (Response). Respondent
did not contest the allegations of violation and stated that it would comply with the terms of the
Proposed Compliance Order. Respondent did not request a hearing and therefore has waived its
right to one.
FINDINGS OF VIOLATION
In its Response, Phillips 66 did not contest the allegations in the Notice that it violated 49 C.F.R.
Part 195, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a), which states:



CPF No. 5-2016-5009
Page 2
§ 195.402 Procedural manual for operations, maintenance, and emergencies.
(a) General. Each operator shall prepare and follow for each pipeline system a
manual of written procedures for conducting normal operations and maintenance
activities and handling abnormal operations and emergencies. This manual shall
be reviewed at intervals not exceeding 15 months, but at least once each calendar
year, and appropriate changes made as necessary to insure that the manual is
effective. This manual shall be prepared before initial operations of a pipeline
system commence, and appropriate parts shall be kept at locations where operations
and maintenance activities are conducted.
The Notice alleged that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow for each
pipeline system a manual of written procedures for conducting normal operations and
maintenance activities. Specifically, the Notice alleged that Phillips 66 failed to follow its own
written procedures for conducting Span and Exposed Piping Inspections, including completion of
appropriate field-inspection forms, in 2013 and 2016.
According to the Notice, Respondent performed inspections of pipeline spans using its written
procedure MPR-6020 and Form 15597-N. Pursuant to the Respondent’s written procedures, an
exposed pipe segment at Mile Post (MP) 3.63 should have had a maximum span length of 40
feet.1 The Notice alleged that Respondent’s Form 15597-N from the 2013 inspection record
noted that the unsupported span length at MP 3.63 was 46 feet but failed to note that there were
potential integrity issues or a need for remedial action.
The Notice further alleged that in 2016, Respondent used a revised Form 15597-N that explicitly
included entries for the maximum allowable length for a pipeline span, the measured length of an
unsupported span, and whether remediation was required. However, Phillips 66 again failed to
note that the span length at MP 3.63 exceeded the maximum length allowed or to recommend
any remediation.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.402(a) by failing to follow its
own manual of written procedures for conducting normal operations and maintenance activities.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 195.401(b)(1), which states:
§ 195.401 General requirements.
(a) . . . .
(b) An operator must make repairs on its pipeline system according to the
following requirements:
(1) Non Integrity management repairs. Whenever an operator discovers any
condition that could adversely affect the safe operation of its pipeline system, it
must correct the condition within a reasonable time. However, if the condition is
of such a nature that it presents an immediate hazard to persons or property, the
1 According to the Notice, the pipeline span at MP 3.63 consists of an exposed pipe segment 6.625 inches in
diameter, with a wall thickness of 0.188 inches, and is made of a steel material with a specified minimum yield
strength of 42,000 psig. Pursuant to Respondent’s MPR-6020 Appendix C, the maximum allowable span length for
this pipe segment is 40 feet.



CPF No. 5-2016-5009
Page 3
operator may not operate the affected part of the system until it has corrected the
unsafe condition.
The Notice alleged that Respondent violated 49 C.F.R. § 195.401(b)(1) by failing to discover a
condition that could adversely affect the safe operation of its pipeline system and correct the
condition within a reasonable time. Specifically, the Notice alleged that although Phillips 66 had
procedures in place to discover conditions that could adversely affect the safe operation of its
pipeline, repeated pipe-span field inspections failed to identify for remediation or repair one
particular span that exceeded the company’s maximum safe span length.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.401(b)(1) by failing to discover
a condition that could adversely affect the safe operation of the Powder River HVL pipeline
system and correct the condition within a reasonable time.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 195.505(h), which states:
§ 195.505 Qualification program.
Each operator shall have and follow a written qualification program. The
program shall include provisions to:
(a) . . . .
(h) After December 16, 2014, provide training, as appropriate, to ensure that
individuals performing covered tasks have the necessary knowledge and skills to
perform the tasks in a manner that ensures the safe operation of pipeline facilities;
. . .
The Notice alleged that Respondent violated 49 C.F.R. § 195.505(h) by failing to ensure that
individuals performing the Span and Exposed Piping Inspection, a covered task, had the
necessary knowledge and skills to perform this task in a manner that ensured the safe operation
of the pipeline system. As stated above, the Notice alleged that Respondent’s personnel
performing the Span and Exposed Piping Inspection failed to identify a pipeline span that
exceeded the company’s maximum allowable safe span length.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 195.505(h) by failing to ensure that
their personnel performing covered tasks had the necessary knowledge and skills to perform the
tasks in a manner that ensured the safe operation of the pipeline system.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, and 3 in the Notice for
violations of 49 C.F.R. §§ 195.402(a), 195.401(b)(1), and 195.505(h), respectively. Under 49
U.S.C. § 60118(a), each person who engages in the transportation of hazardous liquids or who



CPF No. 5-2016-5009
Page 4
owns or operates a pipeline facility is required to comply with the applicable safety standards
established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R.
§ 190.217, Respondent is ordered to take the following actions to ensure compliance with the
pipeline safety regulations applicable to its operations:
1. With respect to the violation of § 195.402(a) (Item 1) pertaining to span and
exposed piping inspection procedure MPR-6020 and Form 15597-N, Respondent
must review and revise its written procedures to include step-by-step instructions to
its inspectors for adequately inspecting the spans, completing Form 15597-N and
identifying conditions that could adversely affect safe operation.
2. With respect to the violation of § 195.401(b)(1) (Item 2), Respondent must
reevaluate all spans in the Powder River HVL System as to whether the span lengths
require corrective action or remediation within a reasonable time, as required by
§ 195.401(b).
3. With respect to the violation of § 195.505(h) (Item 3), pertaining to training of
personnel, Respondent must train its personnel to the revised written procedures as
required by Item 1 listed above.
4. Respondent must complete all requirements of the Final Order within 30 days of
receipt of the Final Order.
5. It is requested (not mandated) that Phillips 66 maintain documentation of the
safety improvement costs associated with fulfilling this Compliance Order and submit
the total to Dustin Hubbard, Acting Director, Western Region, Pipeline and
Hazardous Materials Safety Administration. It is requested 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.
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
The terms and conditions of this Final Order are effective upon receipt of service in accordance
with 49 C.F.R. § 190.5.
June 16, 2017
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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