{"operation":"document","citation":"CPF 520166001S","title":"WYOMING PIPELINE COMPANY — Safety Order","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-01-25","effective_on":null,"summary":"CLOSED safety order.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166001s.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166001s.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166001s","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520166001S","body":"Safety Order involving WYOMING PIPELINE COMPANY. The dataset does not identify a cited regulation for this case. The case was opened on 2016-01-25 and is reported as closed as of 2017-01-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520166001S_Closure Letter_01122017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Closure%20Letter_01122017.pdf\n\n520166001S_Closure Letter_01122017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Closure%20Letter_01122017_text.pdf\n\n520166001S_NOPSO (See Region Letter Correcting Wrong CPF Number Error)_01252016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_NOPSO%20(See%20Region%20Letter%20Correcting%20Wrong%20CPF%20Number%20Error)_01252016.pdf\n\n520166001S_NOPSO (See Region Letter Correcting Wrong CPF Number Error)_01252016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_NOPSO%20(See%20Region%20Letter%20Correcting%20Wrong%20CPF%20Number%20Error)_01252016_text.pdf\n\n520166001S_Operator Response to Notice_02252016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Operator%20Response%20to%20Notice_02252016.pdf\n\n520166001S_Region Letter to Operator Explaining CPF Error_02032016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Region%20Letter%20to%20Operator%20Explaining%20CPF%20Error_02032016.pdf\n\n520166001S_Region Letter to Operator Explaining CPF Error_02032016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Region%20Letter%20to%20Operator%20Explaining%20CPF%20Error_02032016_text.pdf\n\n520166001S_Safety Order_06272016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Safety%20Order_06272016.pdf\n\n520166001S_Safety Order_06272016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166001S/520166001S_Safety%20Order_06272016_text.pdf\n\n520166001S_Safety Order_06272016_text.pdf\n\nJune 27, 2016\nMr. James Runyan, President\nWyoming Pipeline Company, LLC\n1600 Broadway Street, Suite 1500\nDenver, Colorado 80202\nRe: CPF 5-2016-6001S\nDear Mr. Runyan:\nEnclosed please find the Safety Order issued in the above-referenced case. It makes a finding\nthat the Wyoming Pipeline Company, LLC’s (WPC) crude oil pipeline system has a condition or\nconditions that pose a pipeline integrity risk and specifies actions that must be taken by WPC to\nensure that the public, property, and the environment are protected from the risk. When the\nterms of the Safety Order have been completed, as determined by the Director, Western Region,\nthis enforcement action will be closed. Service of the Safety Order by certified mail is deemed\neffective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nActing Associate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Nelson D. Holwell, Pipeline Manager/ Operations Engineer, WPC, P. O. Box 10,\nNewcastle, Wyoming 82701\nMr. Chris Hoidal, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Huy Nguyen, Operations Supervisor, Western Region, Office of Pipeline Safety,\nPHMSA\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED\n\n\n\nDEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\n____________________________________\nIn the Matter of )\nWyoming Pipeline Company, LLC, ) CPF No. 5-2016-6001S\n)\n)\n)\nRespondent. )\n____________________________________)\nSAFETY ORDER\nOn January 25, 2016, the Region Director for the Western Region (Region) of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a\nNotice of Proposed Safety Order (Notice) to Wyoming Pipeline Company, LLC (WPC or\nRespondent), which operates the Wyoming Crude System in Niobrara and Weston Counties,\nWyoming. The Notice alleged that certain conditions existed on the Crude System that posed an\nintegrity risk to public safety, property, or the environment and proposed that WPC take certain\ncorrective measures to remedy the alleged conditions on the Crude System and ensure that the\npublic, property, and the environment were protected from the potential risk.\nWPC responded to the Notice by timely submitting a written letter on February 25, 2016 and\nMarch 15, 2016 (Response). In its Response, WPC neither contested the allegations set forth in\nthe Notice nor requested an informal consultation or hearing. Therefore, WPC has waived its\nright to both. Because it appears that the continued operation of the affected pipeline facility\nwithout corrective measures would pose a pipeline integrity risk to public safety, property, or the\nenvironment, PHMSA hereby issues this Safety Order.\nI. Findings of Pipeline Integrity Risk\nRespondent did not contest the proposed findings in the Notice that its Crude System has a\ncondition or conditions that pose a pipeline safety risk. Accordingly, pursuant to 49 U.S.C. §\n60117(l) and 49 CFR § 190.239, I find as follows:\n1. The affected pipeline facility is WPC’s Crude System (Crude System), which is\nused to transport crude oil to a refinery in Newcastle, Wyoming, using three main trunk lines.\nThe crude oil is first transported to WPC’s Mush Creek Pump Station and then to the refinery.\n2. Approximately 148 miles of the Crude System are regulated low-stress rural\npipelines as defined under 49 C.F.R. § 195.12. However, the Crude System has a 1.86-mile\n\n\n\nCPF No. 5-2016-6001S\nPage 2\nsegment of 6-inch pipeline that crosses a non-rural area within the boundaries of Newcastle,\nWyoming – an Other Populated Area (OPA) and High Consequence Area (HCA) as defined in\n49 C.F.R. § 195.450. The Crude System also crosses the Cheyenne River, Oil Creek, Bobcat\nCreek, and several small streams.\n3. The Crude System has two segments, consisting of 6-inch, 8-inch, and 10-inch\nlow-stress crude oil transmission lines in Niobrara County and Weston County, Wyoming (the\nAffected Segments). In 2012, the pumps for these two segments were shut down and mainline\nvalves closed. Crude oil was present in many of the segments. These two segments are not\ncurrently operating and the only pressure on the line is due to elevation changes.\n4. The first segment is the Lance Creek to Buck Creek Station segment,\napproximately 19 miles long. The second segment is the Buck Creek Station to Mush Creek\nStation segment, approximately 48 miles long. The Affected Segments are located in semi-arid,\nrural ranch land with a low population density and little likelihood of population growth. These\nlocations also have right-of-ways traversing streams.\n5. On October 22, 2012, a PHMSA representative inspected the facilities and\nrecords of WPC in Newcastle, Wyoming. At the time of inspection, WPC had failed to develop\nwritten procedures to accomplish the requirements of 49 C.F.R. § 195.5.1\n6. On March 26, 2014, PHMSA issued a Final Order to WPC in CPF No. 5-2013-\n6003. Under this Final Order, WPC was to complete a conversion to service under 49 CFR §\n195.5 for the Crude System, which included the Affected Segments.2 On December 23, 2015,\nWPC informed PHMSA that it had completed all the Items in the Compliance Order and\ncontained in the Final Order, except for Items l(b), l(c) and l(e) due to scheduling delays. An\nextension to complete Items l(b), l(c) and l(e) was granted until December 31, 2016. The\nremaining items in the Compliance Order (Items 1(a), 1(d), 1(f), l(g), l(h), and 1(i)) were deemed\nfulfilled and closed.\n7. On August 24, 2015, at approximately 3:00 pm M.S.T., a contractor working for\nWPC noticed a leak on a portion of the Affected Segments located approximately 0.5 miles\nnorthwest of where the Affected Segments cross Morrissey Road (Leak Site). At the Leak Site,\nthe contractor noted approximately two to three barrels of crude oil had been released.\n1 WPC’s pipeline system became subject to Part 195, and therefore had to comply with the requirements of\n49 C.F.R. § 195.5 by October 1, 2012, to qualify for service. Specifically, WPC operates approximately 148 miles of\ncategory 3, rural, low-stress pipeline and pipe facilities per § 195.12 (c)(3) that became effective on October 1, 2011.\nPer the requirements of § 195.12(c)(3)(A)(iii), an operator must “comply with all safety requirements of this Part,\nexcept the requirements in § 195.452, Subpart B, and the requirements in Subpart H, before October 1, 2012, and\n“Comply with Subpart H of this Part before October 1, 2014.” Further, because WPC operated a 1.86-mile segment\nof non-rural low-stress pipeline, and because this non-rural segment could affect an \"Other Populated Area” (OPA),\nit should have also been in compliance with all the applicable requirements of Part 195.\n2 In order to qualify for service, WPC had to review the design, construction, operation and maintenance history of\nthe pipeline, perform a visual inspection and select underground segments for physical defects and operating\nconditions that could impair the strength or tightness of the pipeline, correct all known unsafe defects, and test the\npipeline to substantiate the maximum operating pressure permitted by 49 C.F.R. § 195.406.\n\n\n\nCPF No. 5-2016-6001S\nPage 3\n8. On the evening of August 24, 2015, WPC sent representatives to the Leak Site to\nassess and repair the leak. They used an 8-inch steel clamp and 3-inch diameter rubber hole plug\nto temporarily repair the portion of the Affected Segments at the Leak Site. According to the\nrepair technician, the small hole was due to internal corrosion. Following the leak, WPC did not\nreturn the Affected Segments to service.\n9. The Leak Site encompasses rural ranch property. The leak impacted no\nwaterways, had minimal environmental damage (related to soil contamination), and caused no\nharm to persons or property. The leak cost approximately $2,000 in damage and repairs.\n10. WPC estimates anywhere from 1600 to 1800 barrels remain in the Affected\nSegments. WPC claims that the pressure required to purge the Affected Segments would result\nin ruptures to the Crude System. However, WPC stated that it could tap into the line at two low\nspots and vacuum the line, thus removing the majority of crude remaining in the line.\n11. On August 25, 2015, WPC notified PHMSA of the August 24, 2015 leak by filing\na PHMSA Accident Report, Hazardous Liquid Pipeline Systems # 20150302 – 20688. At this\ntime, PHMSA became aware of numerous other past leaks in the system. Specifically, according\nto WPC, there were 33 releases on the Buck Creek Station segment of the Crude System from\nJanuary 2009 to August 2015. The volumes ranged from five gallons to 180 bbls. While most\nhad a relatively low impact to the environment, several releases affected small streams. The\nmajority of these releases were caused by internal or external corrosion. Additionally, thermal\nexpansion was a presumed factor in some releases. WPC did not file any accident reports for\nthese leaks.\nII. Determination of Necessity for Safety Order\nSection 60117(l) of Title 49, United States Code, provides for the issuance of a safety order, after\nreasonable notice and the opportunity for a hearing, requiring corrective measures, which may\ninclude physical inspection, testing, repair, or other action, as appropriate. The basis for making\nthe determination that a pipeline facility has a condition or conditions that pose a pipeline\nintegrity risk to public safety, property, or the environment is set forth both in the above-\nreferenced statute and 49 C.F.R. § 190.239.\nAfter evaluating the foregoing preliminary findings of fact and considering WPC’s failure to\ncomply with PHMSA regulations, including, but not limited to, the failure to file accident reports\nfor leaks occurring on the Affected Segments from January 2009 through August 2015, WPC’s\nfailure to maintain adequate corrosion protection on the Crude System, and the lack of\nknowledge regarding the pipeline, I find that the continued operation of the Affected Segments\nwithout corrective measures would pose a pipeline integrity risk to public safety, property, or the\nenvironment. Accordingly, PHMSA issues this Safety Order, which requires that Respondent\ntake certain measures specified below to address the potential risk.\n\n\n\nCPF No. 5-2016-6001S\nPage 4\nIII. Required Corrective Actions\nPursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, WPC must take the following\ncorrective actions with respect to the Affected Segments:\n1. 2. 3. WPC must gain written approval from the Director, Western Region, OPS (Director) of\nits plan and schedule to purge the Affected Segments of all crude oil, as set forth in its\nResponse Plan (Plan).3 As part of its Plan, WPC must identify additional steps to reduce\nthe probability of leaks, and to monitor the right-of-way and purging pressure for\nevidence of a leak.4 Upon notice of approval from the Director, WPC must implement\nthe Plan.\nWithin 60 days of completing the proposed corrective measures stated in Item 1, WPC\nmust submit a report to the Director showing the completion of these corrective\nmeasures. Thereafter, WPC must submit reports to the Director every 180 days to\nprovide updated information on the pipeline system.\nPHMSA requests that WPC maintain documentation of the safety improvement costs\nassociated with fulfilling this Safety Order and submit the total to the Director. It is\nrequested that these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses; and 2) total cost\nassociated with replacements, additions and other changes to pipeline infrastructure.\nIn your correspondence on this matter, please refer to CPF No. 5-2016-6001S and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. § 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. § 552(b).\nThe Director may grant an extension of time for compliance with any of the terms of the safety\norder upon a written request timely submitted demonstrating good cause for an extension.\n3 On February 25, 2016, and March 15, 2016, PHMSA received two written responses from WPC. The company\nstated that it had already purged the Lance Creek to Buck Creek segment. The responses also included a plan to\npurge the entire Affected Segments, with proposed completion dates.\n4 In its February 25, 2016 response to PHMSA, WPC proposed splitting the project into three sections to reduce the\npressure required to push foam pigs. Although this is a primary way to reduce the possibility of a rupture, it does\nnot eliminate the possibility of a leak on a highly corroded pipeline. Therefore, PHMSA requests additional\ninformation in WPC’s Plan to address the minimization of potential leaks on the Affected Segments.\n\n\n\nCPF No. 5-2016-6001S\nPage 5\nRespondent may appeal any decision of the Director to the Associate Administrator for Pipeline\nSafety. Decisions of the Associate Administrator shall be final.\nThe actions proposed by this Safety Order are in addition to and do not waive any requirements\nthat apply to Respondent’s pipeline system under 49 C.F.R. Parts 190 through 199, under any\nother order issued to Respondent under authority of 49 U.S.C. § 60101 et seq., or under any other\nprovision of Federal or state law.\nAfter receiving and analyzing additional data in the course of this proceeding, PHMSA may\nidentify other safety measures that WPC needs to take. In that event, Respondent will be notified\nof any proposed additional measures and, if necessary, amendments to the Safety Order.\nThe terms and conditions of this Safety Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n__________________________________ _________________________\nAlan K. Mayberry Date issued\nActing Associate Administrator for Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n\n520166001S_Closure Letter_01122017_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 12, 2017\nMr. James Runyan\nPresident\nWyoming Pipeline Company\n10 Stampede Street\nNewcastle, WY 82701\nRe: CPF 5-2016-6001S\nSafety Order Closure Letter\nDear Mr. Runyan:\nOn January 25, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued a Notice of Proposed Safety Order to Wyoming Pipeline Company (WPC). On\nFebruary 25, 2016, WPC responded with a tentative plan to comply with the Notice of\nProposed Safety Order. On June 27, 2016, PHMSA issued a final Safety Order to WPC. The\nOrder made a finding that your crude oil pipeline systems exhibited conditions that posed a\npipeline integrity risk, and mandated actions that must be taken by WPC to ensure protection\nof the public, property, and the environment.\nOn August 26, 2016, WPC notified us of actions completed including the purging of the\npipelines. Following my staff’s review of your action, one of my inspectors visited your\nfacility near Newcastle, Wyoming to verify the compliance with the Safety Order.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nChris Hoidal,\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 C. Allen (#151022)","truncated":false,"body_characters":17828}