{"operation":"document","citation":"CPF 520176001","title":"NGL CRUDE TERMINALS — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-02-13","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.412(a), 195.428(a), 195.428(d), 195.440(c), 195.440(i).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520176001.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520176001.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520176001","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520176001","body":"Notice of Probable Violation involving NGL CRUDE TERMINALS. PHMSA's enforcement data identifies the cited regulations as 195.412(a),  195.428(a),  195.428(d),  195.440(c),  195.440(i). The case was opened on 2017-02-13 and is reported as closed as of 2017-07-28. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520176001_Closure Letter_07282017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Closure%20Letter_07282017.pdf\n\n520176001_Closure Letter_07282017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Closure%20Letter_07282017_text.pdf\n\n520176001_Final Order_06272017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Final%20Order_06272017.pdf\n\n520176001_Final Order_06272017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Final%20Order_06272017_text.pdf\n\n520176001_Operator Response to Notice_03102017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Operator%20Response%20to%20Notice_03102017.pdf\n\n520176001_Revised NOPV PCO_02132017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Revised%20NOPV%20PCO_02132017.pdf\n\n520176001_Revised NOPV PCO_02132017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Revised%20NOPV%20PCO_02132017_text.pdf\n\n520176001_Final Order_06272017_text.pdf\n\nJune 27, 2017\nMr. H. Michael Krimbill\nChief Executive Officer\nNGL Energy Partners, LP\n6120 South Yale Avenue, Suite 805\nTulsa, Oklahoma 74136\nRe: CPF No. 5-2017-6001\nDear Mr. Krimbill:\nEnclosed please find the Final Order issued in the above-referenced case. It makes a finding of\nviolation and specifies actions that need to be taken by NGL Energy Partners, LP 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 effective upon the date of mailing as provided under\n49 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 Tanory, Senior Vice President Midstream Management, NGL Energy Partners,\nLP, Brookhollow Central II, 2900 North Loop West, Suite 1250, Houston, TX 77092\nMr. Eric Coleman, Director of Terminal Operations, NGL Energy Partners, LP,\nBrookhollow Central II, 2900 North Loop West, Suite 1250, Houston, TX 77092\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)\nNGL Energy Partners, LP, ) CPF No. 5-2017-6001\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn May 10 and 11, 2016, and August 8 and 9, 2016, pursuant to 49 U.S.C. § 60117, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office\nof Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the facilities and\nrecords of NGL Energy Partners, LP (NGL or Respondent), in the vicinity of Wheatland,\nWyoming. NGL owns and operates crude-oil loading terminals and transfer facilities, and a\npipeline system that transports crude oil, including an 8-inch diameter pipeline 3,300 feet in\nlength that extends from a connection on the Sinclair Pipeline to the Dwyer Pump Station near\nWheatland.1\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated February 13, 2017, a Notice of Probable Violation and Proposed\nCompliance Order (Notice), which also included warnings pursuant to 49 C.F.R. § 190.205. In\naccordance with 49 C.F.R. § 190.207, the Notice proposed finding that NGL had violated 49\nC.F.R. §195.428 and proposed ordering Respondent to take certain measures to correct the\nalleged violations. The warning items required no further action, but warned the operator to\ncorrect the probable violations or face possible enforcement action.\nRespondent responded to the Notice by letter dated March 10, 2017 (Response). The company\ndid not contest the allegation of violation but provided information concerning the corrective\nactions it planned to take in response. Respondent did not request a hearing and therefore has\nwaived its right to one.\nFINDING OF VIOLATION\nIn its Response, Respondent did not contest the allegation in the Notice that it violated 49 C.F.R.\nPart 195, as follows:\n1 Pipeline Safety Violation Report (Violation Report), (Feb. 13, 2017) (on file with PHMSA), at 1.\n\n\n\nCPF No. 5-2017-6001\nPage 2\nItem 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.428, which states in\nrelevant part:\n§ 195.428 Overpressure safety devices and overfill protection system.\n(a) Except as provided in paragraph (b) of this section, each operator shall, at\nintervals not exceeding 15 months, but at least once each calendar year, or in the\ncase of pipelines used to carry highly volatile liquids, at intervals not to exceed 7\n½ months, but at least twice each calendar year, inspect and test each pressure\nlimiting device, relief valve, pressure regulator, or other item of pressure control\nequipment to determine that it is functioning properly, is in good mechanical\ncondition, and is adequate from the standpoint of capacity and reliability of\noperation for the service in which it is used . . . .\n(d) After October 2, 2000, the requirements of paragraphs (a) and (b) of this\nsection for inspection and testing of pressure control equipment apply to the\ninspection and testing of overfill protection systems.\nThe Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) and (d) by failing to inspect\nand test overfill protection systems at intervals not exceeding 15 months, but at least once each\ncalendar year. Specifically, the Notice alleged that during the OPS inspection, NGL could not\nprovide documentation of the required inspections and tests for the overfill protection systems of\nTank 1001, nor could NGL personnel confirm that the overfill protection systems had been\ninspected and tested with the required frequency.\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. § 195.428(a) and (d) by failing to\ninspect and test overfill protection systems at intervals not exceeding 15 months, but at least once\neach calendar year.\nThis finding of violation will be considered a prior offense in any subsequent enforcement action\ntaken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 4 in the Notice for violation of 49\nC.F.R. § 195.428(a) and (d). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of hazardous liquids or who owns or operates a pipeline facility is required to\ncomply with the applicable safety standards established under chapter 601. Pursuant to the\nauthority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\nfollowing actions to ensure compliance with the pipeline safety regulations applicable to its\noperations:\n1. With respect to the violation of § 195.428(a) and (d) (Item 4), Respondent must:\na. Inspect and test or provide records demonstrating the inspection and\ntesting of the overfill protection systems for Tank 1001, within 30 days of\n\n\n\nCPF No. 5-2017-6001\nPage 3\nb. the issuance of the Final Order; and\nReview and modify, as necessary, its written procedures to ensure that (i)\nthe overfill protection systems for Tank 1001 will be inspected and tested\neach calendar year, at intervals not exceeding 15 months in accordance\nwith 49 C.F.R. 195.428(a) and (d) by documenting the required\ninspections and tests for the overfill protection systems; and (ii) each tank\noverfill protection system inspection and test is documented and that the\ndocumentation is retained for at least two years.\n2. Respondent must submit records or other documentation to show that Item 1\nabove was completed to Director, Western Region, Pipeline and Hazardous\nMaterials Safety Administration within 60 days after receipt of the Final Order.\nIt is requested (not mandated) that Respondent maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the total to the\nDirector, Western Region, Pipeline and Hazardous Materials Safety Administration. 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 associated with\nreplacements, additions 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.\nWARNING ITEMS\nWith respect to Items 1, 2, and 3, the Notice alleged probable violations of Part 195 but did not\npropose a civil penalty or compliance order for these items. Therefore, these are considered to\nbe warning items. The warnings were for:\n49 C.F.R. § 195.412(a) (Item 1) ─ Respondent’s alleged failure to inspect the\nsurface conditions on or adjacent to each pipeline right-of-way at intervals not\nexceeding 3 weeks, but at least 26 times each calendar year. During the\ninspection on May 10, 2016, NGL representatives presented records to the\nPHMSA inspector showing its pipeline right-of-way was only inspected 24 times\nin 2015 and 15 times in 2014. During a follow-up visit on August 8, 2016, NGL\npresented an Excel spreadsheet that noted patrols of the line by foot in order to\naccount for some of the missing inspections. However, there were no date stamps\nor signatures on these new foot-patrolling records to indicate when they occurred.\n\n\n\nCPF No. 5-2017-6001\nPage 4\n49 C.F.R. § 195.440(i) (Item 2) ─ Respondent’s alleged failure to have its public\nawareness program documentation or evaluation results made available for\nperiodic review by appropriate regulatory agencies. During the inspection,\nPHMSA requested documentation and evaluation results, but was told by NGL\nstaff that these records were not available.\n49 C.F.R. § 195.440(c) (Item 3) ─ Respondent’s alleged failure to follow the\nprogram requirements of American Petroleum Institute (API) Recommended\nPractice (RP) 1162 (incorporated by reference, see § 195.3) in its implementation\nof a public awareness program. Specifically, NGL’s written public awareness\nprogram allegedly did not include an effectiveness evaluation process as\nrecommended by Section 8.3 Measuring Program Implementation of API RP\n1162. Pursuant to Section 8.3 of API RP 1162, an operator should complete an\nannual audit or review to determine whether the program has been developed and\nimplemented according to the guidelines in the RP.\nIf OPS finds a violation of any of these items in a subsequent inspection, Respondent may be\nsubject to future enforcement action.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay. The\nterms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nJune 27, 2017\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n520176001_Closure Letter_07282017_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 28, 2017\nMr. Todd Tanory\nSenior Vice President, Midstream Assets\nNGL Energy Partners LP\n2900 N Loop West Suite 1250\nHouston TX 77092\nCPF 5-2017-6001\nClosure Letter\nDear Mr. Tanory:\nOn June 27, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to NGL Energy Partners a Final Order in the above-referenced case. This Order\nincluded a Compliance Order requirement to take corrective actions on your pipeline. Based\non our review of the documentation you provided it has been determined that you have\ncomplied 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: PHP-60 Compliance Registry\nPHP-500 G. Ogirima (#153168)\n\n520176001_Revised NOPV PCO_02132017_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nand\nPROPOSED COMPLIANCE ORDER\nVIA FED EX – TRACKING # 7784 1284 9129\nFebruary 13, 2017\nMr. Todd Tanory\nSenior Vice President Midstream Management\nNGL Energy Partners LP\nBrookhollow Central II\n2900 North Loop West\nSuite 1250\nHouston, TX 77092\nCPF 5-2017-6001\nDear Mr. Tanory:\nOn May 10 and 11, 2016 and August 8 and 9, 2016, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United\nStates Code, inspected NGL Energy Partners LP’s (NGL) crude oil pipeline facility in the\nvicinity of Wheatland, Wyoming.\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 violations are:\n\n\n\n1. §195.412 Inspection of rights-of-way and crossings under navigable waters.\n(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times\neach calendar year, inspect the surface conditions on or adjacent to each pipeline\nright-of-way. Methods of inspection include walking, driving, flying or other\nappropriate means of traversing the right-of-way.\nNGL failed to inspect the surface conditions on or adjacent to each pipeline right-of-way at\nintervals not exceeding 3 weeks, but at least 26 times each calendar year in violation of 49\nC.F.R. § 195.412(a). During the inspection on May 10, 2016, NGL representatives presented\nrecords to the PHMSA inspector showing its pipeline right-of-way was only inspected 24\ntimes in 2015 and 15 times in 2014. During a follow-up visit on August 8, 2016, NGL\npresented an Excel spreadsheet that noted patrols of the line by foot in order to account for\nsome of the missing inspections. However, there were no date stamps or signatures on these\nnew foot patrolling records to indicate when they occurred. Therefore, NGL violated §\n195.412(a) by failing to inspect right of way conditions at least 26 times each calendar year.\n2. §195.440 Public awareness\n(i) The operator's program documentation and evaluation results must be\navailable for periodic review by appropriate regulatory agencies.\nNGL failed to have its public awareness program documentation or evaluation results made\navailable for periodic review by appropriate regulatory agencies in violation of 49 C.F.R. §\n195.440(i). During the inspection, PHMSA requested documentation and evaluation results,\nbut was told by NGL staff that these records were not available.\n3. §195.440 Public awareness\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator\nprovides justification in its program or procedural manual as to why compliance\nwith all or certain provisions of the recommended practice is not practicable and\nnot necessary for safety.\nNGL violated 49 C.F.R. § 195.440(c) by failing to follow the program requirements of\nAmerican Petroleum Institute (API) Recommended Practice (RP) 1162 in its implementation\nof a public awareness program. Specifically, NGL’s written public awareness program did not\ninclude an effectiveness evaluation process as recommended by Section 8.3 Measuring\nProgram Implementation of API RP 1162. Pursuant to Section 8.3 of API RP 1162, an\noperator should complete an annual audit or review to determine whether the program has\nbeen developed and implemented according to the guidelines in the RP. NGL did not\ncomplete an annual audit in 2014, thereby violating API 1162 Section 8.3’s requirement.\nBecause NGL did not otherwise provide a justification in its program or procedural manual as\nto why compliance with API RP Section 8.3 is not practicable and not necessary for safety, it\nviolated 49 C.F.R. § 195.440(c).\n\n\n\n4. §195.428 Overpressure safety devices and overfill protection system\n(a) Except as provided in paragraph (b) of this section, each operator shall, at\nintervals not exceeding 15 months, but at least once each calendar year, or in the\ncase of pipelines used to carry highly volatile liquids, at intervals not to exceed 7½\nmonths, but at least twice each calendar year, inspect and test each pressure\nlimiting device, relief valve, pressure regulator, or other item of pressure control\nequipment to determine that it is functioning properly, is in good mechanical\ncondition, and is adequate from the standpoint of capacity and reliability of\noperation for the service in which it is used.\n(d) After October 2, 2000, the requirements of paragraphs (a) and (b) of this\nsection for inspection and testing of pressure control equipment apply to the\ninspection and testing of overfill protection systems.\nNGL failed to inspect and test overfill protection systems at intervals not exceeding 15 months,\nbut at least once each calendar year in accordance with 49 C.F.R. § 195.428(d). During the\ninspection, NGL could not provide documentation of the required inspections and tests for the\noverfill protection systems of Tank 1001, nor could NGL personnel confirm that the overfill\nprotection systems had been inspected and tested with the required frequency.\nProposed Compliance Order\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 violations 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 maximum penalty not exceeding $1,000,000 for related series of violations.\nWe have reviewed the circumstances and supporting documents involved in this case, and\nhave decided not to propose a civil penalty assessment at this time.\nWith respect to Item 4, pursuant to 49 United States Code § 60118, the Pipeline and\nHazardous Materials Safety Administration proposes to issue a Compliance Order to NGL\nEnergy Partners LP. Please refer to the Proposed Compliance Order, which is enclosed and\nmade a part of this Notice.\nWarning Items\nWith respect to Items 1, 2 and 3 we have reviewed the circumstances and supporting\ndocuments involved in this case and have decided not to conduct additional enforcement\naction or penalty assessment proceedings at this time. We advise you to promptly correct\n\n\n\nthese items. Be advised that failure to do so may result in NGL Energy Partners LP being\nsubject to additional enforcement action.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline\nOperators in Compliance Proceedings. Please refer to this document and note the response\noptions. 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\nmaterial qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete\noriginal document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not\nrespond within 30 days of receipt of this Notice, this constitutes a waiver of your right to\ncontest the allegations in this Notice and authorizes the Associate Administrator for Pipeline\nSafety to find facts as alleged in this Notice without further notice to you and to issue a Final\nOrder.\nIn your correspondence on this matter, please refer to CPF 5-2017-6001 and for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 G. Ogirima (#153168)\nMr. Eric Coleman, Director of Terminal Operations, NGL Energy Partners LP,\nBrookhollow Central II, 2900 North Loop West, Suite 1250, Houston, TX 77092\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to NGL Energy Partners LP a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of NGL Energy\nPartners LP with the pipeline safety regulations:\n1. 2. 3. In regard to Item Number 4 of the Notice pertaining to overfill protection systems\ninspection, NGL Energy Partners LP must:\na. Inspect and test or provide records demonstrating the inspection and testing\nof the overfill protection system for Tank 1001, within 30 days of the\nissuance of the Final Order;\nb. Ensure the overfill protection system for Tank 1001 is inspected and tested\neach calendar year, at intervals not exceeding 15 months in accordance\nwith 49 C.F.R. 195.428(a) and (d):\nc. Ensure that each tank overfill protection system inspection is documented\nand that the documentation is retained for at least two years.\nNGL Energy Partners LP must submit records or other documentation to show\nthat Item (1) above was completed on time and as required to Chris Hoidal,\nDirector, Western Region, Pipeline and Hazardous Materials Safety\nAdministration\nIt is requested (not mandated) that NGL Energy Partners LP maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Chris Hoidal, Director, Western\nRegion, Pipeline and Hazardous Materials Safety Administration. It is\nrequested that these costs be reported in two categories: 1) total cost associated\nwith preparation/revision of plans, procedures, studies and analyses, and 2)\ntotal cost associated with replacements, additions and other changes to pipeline\ninfrastructure.","truncated":false,"body_characters":23518}