{"operation":"document","citation":"CPF 520166004W","title":"WYOMING REFINING CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-08-19","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.405, 195.440(d), 195.452(i)(1), 195.452(l)(1)(ii), 195.49, 195.505(b), 195.505(i), 195.567(c), 195.569, 195.571, 195.575(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166004w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166004w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166004w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520166004W","body":"Warning Letter involving WYOMING REFINING CO. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.405,  195.440(d),  195.452(i)(1),  195.452(l)(1)(ii),  195.49,  195.505(b),  195.505(i),  195.567(c),  195.569,  195.571,  195.575(a). The case was opened on 2016-08-19 and is reported as closed as of 2016-08-19. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520166004W_Warning Letter_08192016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166004W/520166004W_Warning%20Letter_08192016.pdf\n\n520166004W_Warning Letter_08192016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166004W/520166004W_Warning%20Letter_08192016_text.pdf\n\n520166004W_Warning Letter_08192016_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 19, 2016\nMr. James Runyan\nPresident\nWyoming Refining Company\nP.O. Box 10\nNewcastle, WY 82701\nCPF 5-2016-6004W\nDear Mr. Runyan:\nOn the week of November 2 through 6, 2015, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States\nCode, inspected your Wyoming Refining Company (WRC) facilities in Newcastle, Wyoming.\nAs part of the inspection, we also reviewed your operation and maintenance procedures, and\nrecords documenting the implementation of those procedures.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violation(s) are:\n1. §195.505 Qualification Program\n…(b) Ensure through evaluation that individuals performing covered tasks are\nqualified.\nAt the time of the inspection, WRC’s corrosion protection supervisor/technician was not\nqualified at the time he was performing the cathodic protection covered tasks, nor was he\nsupervised by qualified personnel.\n\n\n\n2. §195.404 Maps and Records\n…(c) Each operator shall maintain the following records for the periods\nspecified;\n…(3) A record of each inspection and test required by this subpart shall be\nmaintained for at least 2 years or until the next inspection or test is performed,\nwhichever is longer.\nRecords available at the time of the inspection indicated that the maximum 3-week interval\nbetween right-of-way inspections allowed under §195.412(a) was exceeded between July 29,\n2015 and August 24, 2015.\n3. §195.440 Public Awareness\n…(d) The operator’s program must specifically include provisions to educate the\npublic, appropriate government organizations, and persons engaged in\nexcavation activities.\nWRC had not previously identified excavators as one of their four (4) affected stakeholder\naudience groups as required. WRC stated they will include this group in future pamphlet\nmailings.\n4. §195.402 Procedural manual for operations, maintenance, and emergencies\n(a) Each operator shall prepare and follow for each pipeline system a manual of\nwritten procedures for conducting normal operations and maintenance activities\nand handling abnormal operations and emergencies. This manual shall be\nreviewed 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\noperations and maintenance activities are conducted.\nAt the time of the inspection, WRC failed to follow their written procedures for maintaining\nliaison as required by §195.401(c)(12). Liaison records were reviewed for Weston County\nFire Protection (July 2010), Hermes Fire Department Insurance (July 2010), and the\nNewcastle Fire Department (May 2003). Documentation of liaison activities with Homeland\nSecurity was also missing. Furthermore, records at the time of inspection appeared to be\nincomplete, with gaps in years, and did not show a consistent “continuing” program.\n5. §195.575 Which facilities must I electrically isolate and what inspections, tests,\nand safeguards are required?\n(a) You must electrically isolate each buried or submerged pipeline from other\nmetallic structures, unless you electrically interconnect and cathodically protect\nthe pipeline and other structures as a single unit.\n2\n\n\n\nWRC stated that they performed continuity tests at the refinery and at Mule Creek isolation\npoints but were unable to provide records to demonstrate those tests from 2010 to 2015. There\nare four (4) casing locations and the annual survey, performed in November 2015, which\nindicated adequate isolation at those areas; however, no records were produced to show\nisolation from 2010 to 2015. There appears to be an electrical short around the insulator\nbetween WRC and the Magellan lines at Mule Creek. Impressed current, identified as “high”\npolarized potential (off) reading, was found from mile post (MP) 27 to Mule Creek during the\nNovember 2015 cathodic protection (CP) annual survey. WRC should require their CP\ncontractor to investigate and correct the issue, as necessary.\n6. §195.567 Which pipelines must have test leads and what must I do to install and\nmaintain the leads?\n…(c) Maintenance. You must maintain the test lead wires in a condition that\nenables you to obtain electrical measurements to determine whether cathodic\nprotection complies with §195.571.\nDuring the field inspection, PHMSA observed at the MP 2 fence line the CP test station was\nnot working. While reviewing the current annual survey, performed by a contractor, it was\nnoted that several CP test stations were missing or were in need of repair.\n7. §195.571 What criteria must I use to determine the adequacy of cathodic\nprotection?\nCathodic protection required by this Subpart must comply with one or more of\nthe applicable criteria and other considerations for cathodic protection contained\nin paragraphs 6.2 and 6.3 of NACE SP 0169 (incorporated by reference, see\n§195.3).\nAt the time of the inspection, WRC did not collect “off” pipe-to-soil potentials reading, no\n“on/off” Close Interval Survey (CIS), or any comprehensive consideration of IR drop (voltage\ndrop), per NACE SP 0169.\n8. §195.452(i) What preventive and mitigative measure must an operator take to\nprotect the high consequence area?\n3\n\n\n\n(1) General requirements. An operator must take measures to prevent and\nmitigate the consequences of a pipeline failure that could affect a high\nconsequence area. These measures include conducting a risk analysis of the\npipeline segment to identify additional actions to enhance public safety or\nenvironmental protection. Such actions may include, but are not limited to,\nimplementing damage prevention best practices, better monitoring of cathodic\nprotection where corrosion is a concern, establishing shorter inspection intervals,\ninstalling EFRDs on the pipeline segment, modifying the systems that monitor\npressure and detect leaks, providing additional training to personnel on response\nprocedures, conducting drills with local emergency responders and adopting\nother management controls.\nAt the time of the inspection, WRC was unable to provide any documentation of preventive\nand mitigative measures (P&MM) which were considered or implemented to reduce the\nconsequences of a pipeline failure that could affect the high consequence area.\n9. §195.49 Annual Report\nEach operator must annually complete and submit DOT Form PHMSA F 7000-\n1.1 for each type of hazardous liquid pipeline facility operated at the end of the\nprevious year. An operator must submit the annual report by June 15 each year,\nexcept that for the 2010 reporting year the report must be submitted by August\n15, 2011. A separate report is required for crude oil, HVL (including anhydrous\nammonia), petroleum products, carbon dioxide pipelines, and fuel grade ethanol\npipelines. For each state a pipeline traverses, an operator must separately\ncomplete those sections on the form requiring information to be reported for\neach state.\nAt the time of the inspection, WRC failed to submit DOT Form PHMSA F7000-1.1 for\ncalendar year 2010.\n10. §195.569 Do I have to examine exposed portions of buried pipelines?\nWhenever you have knowledge that any portion of a buried pipeline is exposed,\nyou must examine the exposed portion for evidence of external corrosion if the\npipe is bare, or if the coating is deteriorated. If you find external corrosion\nrequiring corrective action under §195.585, you must investigate\ncircumferentially and longitudinally beyond the exposed portion (by visual\nexamination, indirect method, or both) to determine whether additional\ncorrosion requiring remedial action exists in the vicinity of the exposed portion.\nThere were no records produced to indicate that WRC examined the exposed portions of the\nburied pipeline during the January 2006 pipe replacement in the refinery.\n4\n\n\n\n11. §195.505 Qualification Program\n…(i) After December 16, 2004, notify the Administrator or a state agency\nparticipating under 49 U.S.C. Chapter 601 if the operator significantly modifies\nthe program after the Administrator or state agency has verified that it complies\nwith this section.\nAt the time of the inspection, WRC did not notify PHMSA of significant changes to their\nQualification Program. The primary change is that the operator no longer qualifies their\nemployees for covered tasks. Wyoming Contractor Association is now the entity that\nqualifies the WRC’s individual personnel.\n12. §195.452(l) What records must be kept?\n(1) An operator must maintain for review during an inspection:\n(ii) Documents to support the decisions and analyses, including any\nmodifications, justifications, variances, deviations and determinations made, and\nactions taken, to implement and evaluate each element of the integrity\nmanagement program listed in paragraph (f) of this section.\nAt the time of the inspection, WRC failed to provide records to demonstrate they were\nconfirming and/or validating the accuracy of In Line Inspection (ILI) tool that was used. No\nrecords of comparison of results/anomalies from either the 2005 or 2010 ILI results were\nprovided. WRC disagrees with the premise that ILI validation digs are required to compare\nILI data. WRC believes disturbing the soil and digging an anomaly that is not a required\nrepair is unnecessary. From WRC’s ILI Manual, Section 7, Documentation: \"The Integrity\nManagement plan development and update involves a review of the current in-line inspection\nresults in conjunction with subsequent excavations, cathodic protection data, corrosion growth\nmodels, pressure cycle monitoring, coating type and condition, and metallurgical components\nof the steel pipe.\" No records were provided to demonstrate the operator is following this\nprocess.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a\nrelated series of violations. For violation occurring between January 4, 2012 to August 1,\n2016, the maximum penalty may not exceed $200,000 per violation per day, with a maximum\npenalty not to exceed $2,000,000 for a related series of violations. For violations occurring\nprior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per\nday, with a maximum penalty not to exceed $1,000,000 for a related series of violations. We\nhave reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at\nthis time. We advise you to correct the item(s) identified in this letter. Failure to do so will\nresult in Wyoming Refining Company being subject to additional enforcement action.\n5\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2016-6004W. Be advised that all material you submit in response to this\nenforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong with the complete original document you must provide a second copy of the document\nwith the portions you believe qualify for confidential treatment redacted and an explanation of\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 D. Fehling/C. Allen (#150199)\n6","truncated":false,"body_characters":12635}