{"operation":"document","citation":"CPF 520166010W","title":"PHILLIPS 66 PIPELINE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-11-15","effective_on":null,"summary":"CLOSED warning letter citing 195.406(a), 195.452(l)(ii).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166010w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166010w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520166010w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520166010W","body":"Warning Letter involving PHILLIPS 66 PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.406(a),  195.452(l)(ii). The case was opened on 2016-11-15 and is reported as closed as of 2016-11-15. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520166010W_Warning Letter_11152016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166010W/520166010W_Warning%20Letter_11152016.pdf\n\n520166010W_Warning Letter_11152016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520166010W/520166010W_Warning%20Letter_11152016_text.pdf\n\n520166010W_Warning Letter_11152016_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 15, 2016\nMr. Todd Denton\nPresident\nPhillips 66 Pipeline, LLC\n3010 Briarpark Dr.\nHouston, TX 77042\nCPF 5-2016-6010W\nDear Mr. Denton:\nOn March 29 through 31, 2016, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your breakout\ntanks at your Portland Terminal Tank Farm facility in Portland, Oregon.\nAs a result of the inspection, it is alleged that Phillips 66 Pipeline, LLC (Phillips 66) has committed\nprobable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The\nitems inspected and the probable violations are:\n1. §195.406(a) Maximum Operating Pressure\n(a) Except for surge pressures and other variations from normal operations, no operator\nmay operate a pipeline at a pressure that exceeds any of the following:\nPhillips 66 lacked records to demonstrate that maximum operating pressures (MOPs) have been\ncorrectly established for pipeline segments between the breakout tanks and Kinder Morgan and\nOlympic Pipelines. The established MOPs are based solely on flange pressure ratings and fail to\nconsider the other criteria in 195.406(a)(1) through (5). All criteria in 195.406(a) must be considered\nwhen establishing the MOP of all regulated pipelines in your facility.\n\n\n\n2. §195.452 Pipeline integrity management in high consequence areas.\n(l) What records must an operator keep to demonstrate compliance? (1) An operator\nmust maintain, for the useful life of the pipeline, records that demonstrate compliance\nwith the requirements of this subpart. At a minimum, an operator must maintain the\nfollowing records for review during an inspection:\n…(ii) Documents to support the decisions and analyses, including any modifications,\njustifications, deviations and determinations made, variances, and actions taken, to\nimplement and evaluate each element of the integrity management program listed in\nparagraph (f) of this section.\nPhillips 66 did not conduct an “analysis that integrates all available information about the integrity of\nthe entire pipeline and consequences of a failure” per 49 CFR 195.452(f)(3). Phillip 66’s “Facility\nBuried Integrity Piping Integrity Program,” dated November 19, 2012, included procedures for\nconducting a risk analysis that considers probability and consequence of failure. However, Phillips 66\nhad not completed the risk analysis at the time of the inspection.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $205,638 per\nviolation per day the violation persists up to a maximum of $2,056,380 for a related series of\nviolations. For violation occurring between January 4, 2012 to August 1, 2016, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for\na related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty\nmay not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for\na related series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the items identified in this letter.\nFailure to do so will result in Phillips 66 being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF\n5-2016-6010W. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive material\nqualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 D. Hassell/J. Gano (#152515)","truncated":false,"body_characters":4965}