# NGL CRUDE TERMINALS — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 195.412(a), 195.428(a), 195.428(d), 195.440(c), 195.440(i).
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- **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.

Official case documents:

520176001_Closure Letter_07282017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Closure%20Letter_07282017.pdf

520176001_Closure Letter_07282017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Closure%20Letter_07282017_text.pdf

520176001_Final Order_06272017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Final%20Order_06272017.pdf

520176001_Final Order_06272017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Final%20Order_06272017_text.pdf

520176001_Operator Response to Notice_03102017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Operator%20Response%20to%20Notice_03102017.pdf

520176001_Revised NOPV PCO_02132017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Revised%20NOPV%20PCO_02132017.pdf

520176001_Revised NOPV PCO_02132017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520176001/520176001_Revised%20NOPV%20PCO_02132017_text.pdf

520176001_Final Order_06272017_text.pdf

June 27, 2017
Mr. H. Michael Krimbill
Chief Executive Officer
NGL Energy Partners, LP
6120 South Yale Avenue, Suite 805
Tulsa, Oklahoma 74136
Re: CPF No. 5-2017-6001
Dear Mr. Krimbill:
Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of
violation and specifies actions that need to be taken by NGL Energy Partners, LP 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 effective upon the date of mailing 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 Tanory, Senior Vice President Midstream Management, NGL Energy Partners,
LP, Brookhollow Central II, 2900 North Loop West, Suite 1250, Houston, TX 77092
Mr. Eric Coleman, Director of Terminal Operations, NGL Energy Partners, LP,
Brookhollow Central II, 2900 North Loop West, Suite 1250, Houston, TX 77092
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 )
)
NGL Energy Partners, LP, ) CPF No. 5-2017-6001
)
Respondent. )
____________________________________)
FINAL ORDER
On May 10 and 11, 2016, and August 8 and 9, 2016, pursuant to 49 U.S.C. § 60117, a
representative 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 NGL Energy Partners, LP (NGL or Respondent), in the vicinity of Wheatland,
Wyoming. NGL owns and operates crude-oil loading terminals and transfer facilities, and a
pipeline system that transports crude oil, including an 8-inch diameter pipeline 3,300 feet in
length that extends from a connection on the Sinclair Pipeline to the Dwyer Pump Station near
Wheatland.1
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated February 13, 2017, a Notice of Probable Violation and Proposed
Compliance Order (Notice), which also included warnings pursuant to 49 C.F.R. § 190.205. In
accordance with 49 C.F.R. § 190.207, the Notice proposed finding that NGL had violated 49
C.F.R. §195.428 and proposed ordering Respondent to take certain measures to correct the
alleged violations. The warning items required no further action, but warned the operator to
correct the probable violations or face possible enforcement action.
Respondent responded to the Notice by letter dated March 10, 2017 (Response). The company
did not contest the allegation of violation but provided information concerning the corrective
actions it planned to take in response. Respondent did not request a hearing and therefore has
waived its right to one.
FINDING OF VIOLATION
In its Response, Respondent did not contest the allegation in the Notice that it violated 49 C.F.R.
Part 195, as follows:
1 Pipeline Safety Violation Report (Violation Report), (Feb. 13, 2017) (on file with PHMSA), at 1.



CPF No. 5-2017-6001
Page 2
Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 195.428, which states in
relevant part:
§ 195.428 Overpressure safety devices and overfill protection system.
(a) Except as provided in paragraph (b) of this section, each operator shall, at
intervals not exceeding 15 months, but at least once each calendar year, or in the
case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7
½ months, but at least twice each calendar year, inspect and test each pressure
limiting device, relief valve, pressure regulator, or other item of pressure control
equipment to determine that it is functioning properly, is in good mechanical
condition, and is adequate from the standpoint of capacity and reliability of
operation for the service in which it is used . . . .
(d) After October 2, 2000, the requirements of paragraphs (a) and (b) of this
section for inspection and testing of pressure control equipment apply to the
inspection and testing of overfill protection systems.
The Notice alleged that Respondent violated 49 C.F.R. § 195.428(a) and (d) by failing to inspect
and test overfill protection systems at intervals not exceeding 15 months, but at least once each
calendar year. Specifically, the Notice alleged that during the OPS inspection, NGL could not
provide documentation of the required inspections and tests for the overfill protection systems of
Tank 1001, nor could NGL personnel confirm that the overfill protection systems had been
inspected and tested with the required frequency.
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. § 195.428(a) and (d) by failing to
inspect and test overfill protection systems at intervals not exceeding 15 months, but at least once
each calendar year.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Item 4 in the Notice for violation of 49
C.F.R. § 195.428(a) and (d). Under 49 U.S.C. § 60118(a), each person who engages in the
transportation of hazardous liquids or who 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 § 195.428(a) and (d) (Item 4), Respondent must:
a. Inspect and test or provide records demonstrating the inspection and
testing of the overfill protection systems for Tank 1001, within 30 days of



CPF No. 5-2017-6001
Page 3
b. the issuance of the Final Order; and
Review and modify, as necessary, its written procedures to ensure that (i)
the overfill protection systems for Tank 1001 will be inspected and tested
each calendar year, at intervals not exceeding 15 months in accordance
with 49 C.F.R. 195.428(a) and (d) by documenting the required
inspections and tests for the overfill protection systems; and (ii) each tank
overfill protection system inspection and test is documented and that the
documentation is retained for at least two years.
2. Respondent must submit records or other documentation to show that Item 1
above was completed to Director, Western Region, Pipeline and Hazardous
Materials Safety Administration within 60 days after receipt of the Final Order.
It is requested (not mandated) that Respondent maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the total to the
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.
WARNING ITEMS
With respect to Items 1, 2, and 3, the Notice alleged probable violations of Part 195 but did not
propose a civil penalty or compliance order for these items. Therefore, these are considered to
be warning items. The warnings were for:
49 C.F.R. § 195.412(a) (Item 1) ─ Respondent’s alleged failure to inspect the
surface conditions on or adjacent to each pipeline right-of-way at intervals not
exceeding 3 weeks, but at least 26 times each calendar year. During the
inspection on May 10, 2016, NGL representatives presented records to the
PHMSA inspector showing its pipeline right-of-way was only inspected 24 times
in 2015 and 15 times in 2014. During a follow-up visit on August 8, 2016, NGL
presented an Excel spreadsheet that noted patrols of the line by foot in order to
account for some of the missing inspections. However, there were no date stamps
or signatures on these new foot-patrolling records to indicate when they occurred.



CPF No. 5-2017-6001
Page 4
49 C.F.R. § 195.440(i) (Item 2) ─ Respondent’s alleged failure to have its public
awareness program documentation or evaluation results made available for
periodic review by appropriate regulatory agencies. During the inspection,
PHMSA requested documentation and evaluation results, but was told by NGL
staff that these records were not available.
49 C.F.R. § 195.440(c) (Item 3) ─ Respondent’s alleged failure to follow the
program requirements of American Petroleum Institute (API) Recommended
Practice (RP) 1162 (incorporated by reference, see § 195.3) in its implementation
of a public awareness program. Specifically, NGL’s written public awareness
program allegedly did not include an effectiveness evaluation process as
recommended by Section 8.3 Measuring Program Implementation of API RP
1162. Pursuant to Section 8.3 of API RP 1162, an operator should complete an
annual audit or review to determine whether the program has been developed and
implemented according to the guidelines in the RP.
If OPS finds a violation of any of these items in a subsequent inspection, Respondent may be
subject to future enforcement action.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this
Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and
meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective
action, remain in effect unless the Associate Administrator, upon request, grants a stay. The
terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R.
§ 190.5.
June 27, 2017
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

520176001_Closure Letter_07282017_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
July 28, 2017
Mr. Todd Tanory
Senior Vice President, Midstream Assets
NGL Energy Partners LP
2900 N Loop West Suite 1250
Houston TX 77092
CPF 5-2017-6001
Closure Letter
Dear Mr. Tanory:
On June 27, 2017, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to NGL Energy Partners a Final Order in the above-referenced case. This Order
included a Compliance Order requirement to take corrective actions on your pipeline. 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: PHP-60 Compliance Registry
PHP-500 G. Ogirima (#153168)

520176001_Revised NOPV PCO_02132017_text.pdf

NOTICE OF PROBABLE VIOLATION
and
PROPOSED COMPLIANCE ORDER
VIA FED EX – TRACKING # 7784 1284 9129
February 13, 2017
Mr. Todd Tanory
Senior Vice President Midstream Management
NGL Energy Partners LP
Brookhollow Central II
2900 North Loop West
Suite 1250
Houston, TX 77092
CPF 5-2017-6001
Dear Mr. Tanory:
On May 10 and 11, 2016 and August 8 and 9, 2016, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United
States Code, inspected NGL Energy Partners LP’s (NGL) crude oil pipeline facility in the
vicinity of Wheatland, Wyoming.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and
the probable violations are:



1. §195.412 Inspection of rights-of-way and crossings under navigable waters.
(a) Each operator shall, at intervals not exceeding 3 weeks, but at least 26 times
each calendar year, inspect the surface conditions on or adjacent to each pipeline
right-of-way. Methods of inspection include walking, driving, flying or other
appropriate means of traversing the right-of-way.
NGL failed to inspect the surface conditions on or adjacent to each pipeline right-of-way at
intervals not exceeding 3 weeks, but at least 26 times each calendar year in violation of 49
C.F.R. § 195.412(a). During the inspection on May 10, 2016, NGL representatives presented
records to the PHMSA inspector showing its pipeline right-of-way was only inspected 24
times in 2015 and 15 times in 2014. During a follow-up visit on August 8, 2016, NGL
presented an Excel spreadsheet that noted patrols of the line by foot in order to account for
some of the missing inspections. However, there were no date stamps or signatures on these
new foot patrolling records to indicate when they occurred. Therefore, NGL violated §
195.412(a) by failing to inspect right of way conditions at least 26 times each calendar year.
2. §195.440 Public awareness
(i) The operator's program documentation and evaluation results must be
available for periodic review by appropriate regulatory agencies.
NGL failed to have its public awareness program documentation or evaluation results made
available for periodic review by appropriate regulatory agencies in violation of 49 C.F.R. §
195.440(i). During the inspection, PHMSA requested documentation and evaluation results,
but was told by NGL staff that these records were not available.
3. §195.440 Public awareness
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why compliance
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
NGL violated 49 C.F.R. § 195.440(c) by failing to follow the program requirements of
American Petroleum Institute (API) Recommended Practice (RP) 1162 in its implementation
of a public awareness program. Specifically, NGL’s written public awareness program did not
include an effectiveness evaluation process as recommended by Section 8.3 Measuring
Program Implementation of API RP 1162. Pursuant to Section 8.3 of API RP 1162, an
operator should complete an annual audit or review to determine whether the program has
been developed and implemented according to the guidelines in the RP. NGL did not
complete an annual audit in 2014, thereby violating API 1162 Section 8.3’s requirement.
Because NGL did not otherwise provide a justification in its program or procedural manual as
to why compliance with API RP Section 8.3 is not practicable and not necessary for safety, it
violated 49 C.F.R. § 195.440(c).



4. §195.428 Overpressure safety devices and overfill protection system
(a) Except as provided in paragraph (b) of this section, each operator shall, at
intervals not exceeding 15 months, but at least once each calendar year, or in the
case of pipelines used to carry highly volatile liquids, at intervals not to exceed 7½
months, but at least twice each calendar year, inspect and test each pressure
limiting device, relief valve, pressure regulator, or other item of pressure control
equipment to determine that it is functioning properly, is in good mechanical
condition, and is adequate from the standpoint of capacity and reliability of
operation for the service in which it is used.
(d) After October 2, 2000, the requirements of paragraphs (a) and (b) of this
section for inspection and testing of pressure control equipment apply to the
inspection and testing of overfill protection systems.
NGL failed to inspect and test overfill protection systems at intervals not exceeding 15 months,
but at least once each calendar year in accordance with 49 C.F.R. § 195.428(d). During the
inspection, NGL could not provide documentation of the required inspections and tests for the
overfill protection systems of Tank 1001, nor could NGL personnel confirm that the overfill
protection systems had been inspected and tested with the required frequency.
Proposed Compliance Order
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a
related series of violations. For violations occurring between January 4, 2012 to August 1,
2016, the maximum penalty may not exceed $200,000 per violation per day, with a maximum
penalty not to exceed $2,000,000 for a related series of violations. For violations occurring
prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per
day, with maximum penalty not exceeding $1,000,000 for related series of violations.
We have reviewed the circumstances and supporting documents involved in this case, and
have decided not to propose a civil penalty assessment at this time.
With respect to Item 4, pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to NGL
Energy Partners LP. Please refer to the Proposed Compliance Order, which is enclosed and
made a part of this Notice.
Warning Items
With respect to Items 1, 2 and 3 we have reviewed the circumstances and supporting
documents involved in this case and have decided not to conduct additional enforcement
action or penalty assessment proceedings at this time. We advise you to promptly correct



these items. Be advised that failure to do so may result in NGL Energy Partners LP being
subject to additional enforcement action.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline
Operators in Compliance Proceedings. Please refer to this document and note the response
options. Be advised that all material you submit in response to this enforcement action is
subject to being made publicly available. If you believe that any portion of your responsive
material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete
original document you must provide a second copy of the document with the portions you
believe qualify for confidential treatment redacted and an explanation of why you believe the
redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not
respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to
contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline
Safety to find facts as alleged in this Notice without further notice to you and to issue a Final
Order.
In your correspondence on this matter, please refer to CPF 5-2017-6001 and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Compliance Registry
PHP-500 G. Ogirima (#153168)
Mr. Eric Coleman, Director of Terminal Operations, NGL Energy Partners LP,
Brookhollow Central II, 2900 North Loop West, Suite 1250, Houston, TX 77092



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to NGL Energy Partners LP a Compliance Order
incorporating the following remedial requirements to ensure the compliance of NGL Energy
Partners LP with the pipeline safety regulations:
1. 2. 3. In regard to Item Number 4 of the Notice pertaining to overfill protection systems
inspection, NGL Energy Partners LP must:
a. Inspect and test or provide records demonstrating the inspection and testing
of the overfill protection system for Tank 1001, within 30 days of the
issuance of the Final Order;
b. Ensure the overfill protection system for Tank 1001 is inspected and tested
each calendar year, at intervals not exceeding 15 months in accordance
with 49 C.F.R. 195.428(a) and (d):
c. Ensure that each tank overfill protection system inspection is documented
and that the documentation is retained for at least two years.
NGL Energy Partners LP must submit records or other documentation to show
that Item (1) above was completed on time and as required to Chris Hoidal,
Director, Western Region, Pipeline and Hazardous Materials Safety
Administration
It is requested (not mandated) that NGL Energy Partners LP maintain
documentation of the safety improvement costs associated with fulfilling this
Compliance Order and submit the total to Chris Hoidal, 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.
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