{"operation":"document","citation":"CPF 520186009W","title":"TESORO ALASKA PIPELINE COMPANY LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-03-16","effective_on":null,"summary":"CLOSED warning letter citing 195.222(a), 195.228(a), 195.446(c)(4), 195.446(e)(4), 195.446(h), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520186009w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520186009w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520186009w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520186009W","body":"Warning Letter involving TESORO ALASKA PIPELINE COMPANY LLC. PHMSA's enforcement data identifies the cited regulations as 195.222(a),  195.228(a),  195.446(c)(4),  195.446(e)(4),  195.446(h),  195.589(c). The case was opened on 2018-03-16 and is reported as closed as of 2018-03-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520186009W_Warning Letter_03162018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520186009W/520186009W_Warning%20Letter_03162018.pdf\n\n520186009W_Warning Letter_03162018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520186009W/520186009W_Warning%20Letter_03162018_text.pdf\n\n520186009W_Warning Letter_03162018_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 16, 2018\nMr. Don Sorenson\nSenior Vice President, Logistics\nTesoro Alaska Pipeline Company LLC\n19100 Ridgewood Parkway\nSan Antonio, TX 78259\nCPF 5-2018-6009W\nDear Mr. Sorenson:\nOn September 11 through 20, 2017, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected Tesoro Alaska Pipeline Company LLC (Tesoro) procedures and records in Nikiski\nand Anchorage, Alaska.\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 (CFR). The items\ninspected and the probable violations are:\n1. § 195.446 Control Room Management.\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator has defined by performing\neach of the following:\n\n\n\n(4) Test any backup SCADA systems at least once each calendar year, but at\nintervals not to exceed 15 months;\nRecords which demonstrate that the backup SCADA system has been tested at least once each\ncalendar year, at intervals not to exceed 15 months, are not adequate. No Tesoro Alaska\nPipeline (TAPL) testing records exist prior to 2017.\n2. §195.446 Control Room Management.\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator has defined by performing\neach of the following:\n(4) Test any backup SCADA systems at least once each calendar year, but at\nintervals not to exceed 15 months;\nThe testing records, which verify that there are adequate processes in place for decision-\nmaking and internal communications to successfully implement a transition from primary\nSCADA to backup SCADA, and back to primary SCADA, are incomplete. No such TAPL\nrecords of testing and verification exist prior to 2017.\n3. § 195.446 Control Room Management.\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator has defined by performing\neach of the following:\n(4) Test any backup SCADA systems at least once each calendar year, but at\nintervals not to exceed 15 months;\nThe TAPL records are incomplete as relating to the sampling of critical functions of the back-\nup SCADA system. Such testing validates the proper operation of the backup system. No\nsuch TAPL records of sampling or validating the critical functions in the back-up SCADA\nsystem exist prior to 2017.\n4. § 195.446 Control Room Management.\n(e) Alarm management. Each operator using a SCADA system must have a\nwritten alarm management plan to provide for effective controller response to\nalarms. An operator's plan must include provisions to:\n(4) Review the alarm management plan required by this paragraph at least once\neach calendar year, but at intervals not exceeding 15 months, to determine the\neffectiveness of the plan;\nTAPL records do not indicate review of the alarm management plan at least once each\ncalendar year, but at intervals not exceeding 15 months, in order to determine the\neffectiveness of the plan. Tesoro staff conducted alarm management plan reviews on January\n2\n\n\n\n21, 2016 and August 31, 2017, thus exceeding the maximum interval of 15 months. Further,\nTesoro Compliance and Deviation Policy 10.2 was not followed in 2016 and 2017 since only\ntwo staff members completed the review. Tesoro’s policy states: “The following list identifies\nthe key personnel required for the compliance review to be considered complete: DOT\nCompliance Manager, Logistics Regional Managers, Shift Leaders/Supervisors, Controller.”\nThe Tesoro 2016 and 2017 CRM Annual Review Forms were only signed by two individuals\nwhose staff positions are unidentified. It is unclear whether the individuals held any one of\nthe 4 identified positions.\n5. § 195.446 Control Room Management.\n(h) Training. Each operator must establish a controller training program and\nreview the training program content to identify potential improvements at least\nonce each calendar year, but at intervals not to exceed 15 months. An operator's\nprogram must provide for training each controller to carry out the roles and\nresponsibilities defined by the operator. In addition, the training program must\ninclude the following elements:\nTAPL records do not indicate processes have been implemented to review the controller\ntraining program content to identify potential improvements at least once each calendar year,\nbut at intervals not to exceed 15 months. Tesoro staff conducted training manual reviews on\nJanuary 21, 2016 and August 31, 2017, thus exceeding the maximum interval of 15 months.\nFurther, Tesoro Compliance and Deviation Policy 10.2 was not followed in 2016 and 2017\nsince only two staff members completed the review. Tesoro’s policy states: “The following\nlist identifies the key personnel required for the compliance review to be considered complete:\nDOT Compliance Manager, Logistics Regional Managers, Shift Leaders/Supervisors,\nController.” The Tesoro 2016 and 2017 CRM Annual Review Forms were only signed by two\nindividuals whose staff positions are unidentified. It is unclear whether the individuals held\nany one of the 4 identified positions.\n6. § 195.589 What corrosion control information do I have to maintain?\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by this\nsubpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that corrosion requiring control measures does not exist. You must\nretain these records for at least 5 years, except that records related to §§ 195.569,\n195.573(a) and (b), and 195.579(b)(3) and (c) must be retained for as long as the\npipeline remains in service.\nRecords do not document inspection of all aboveground pipe exposed to atmospheric\ncorrosion. No TAPL coating inspection reports for the Nikiski terminal pig launcher were\navailable.\n3\n\n\n\n7. § 195.222 Welders and welding operators: Qualification of welders and welding\noperators.\n(a) Each welder or welding operator must be qualified in accordance with section\n6, section 12 or Appendix A of API Std 1104 (incorporated by reference, see §\n195.3), or section IX of ASME Boiler and Pressure Vessel Code (BPVC),\n(incorporated by reference, see § 195.3), except that a welder or welding operator\nqualified under an earlier edition than an edition listed in § 195.3, may weld but\nmay not re-qualify under that earlier edition.\nTAPL integrity assessment and remediation projects records were incomplete regarding\nrepairs requiring welding performed by qualified welders with qualified welding procedures.\nThe Welder Qualification Records for Jarid Bush were incomplete at the time of inspection.\nThe records did not indicate what type of test the welder was qualifying to perform and\nwhether the welder was determined to be qualified. Further, the records fail to indicate\nwhether the qualifying weld was visually inspected and determined to be acceptable\naccording to the requirements of API 1104, Section 6.4. The welder qualification records fail\nto record whether the welder complied with or was even aware of the pre-heat requirements of\nTesoro WPS P42. At the time of the welder's P42 test the ambient temperature was recorded\nas 47° F. Tesoro WPS P24 specifies \"At temperatures below 50° F: The preheat temperature\nshall be 150° F. Min. - 250° F. Max.\"\nThe Welder Qualification Records for Nick Wagner and Josh Walters were also incomplete at\nthe time of inspection. The records did not indicate whether the welders were determined to\nbe qualified. Further, the records fail to indicate whether the qualifying welds were visually\ninspected and determined to be acceptable according to the requirements of API 1104, Section\n6.4. The welder qualification records failed to record whether the welders complied with or\nwere even aware of the pre-heat requirements of Tesoro WPS P60. At the time of the welder's\nP60 tests the ambient temperature was recorded as 47° F. Tesoro WPS P60 specifies \"At\ntemperatures below 50° F: The preheat temperature shall be 150° F. Min. - 250° F. Max.\"\n8. § 195.228 Welds and welding inspection: Standards of acceptability.\n(a) Each weld and welding must be inspected to insure compliance with the\nrequirements of this subpart. Visual inspection must be supplemented by\nnondestructive testing.\nTAPL records were not adequate to determine whether the new welds were inspected and\nexamined in accordance with §§ 195.228 or 195.234. The inspection records were not signed\nand dated.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $209,002 per violation per day the violation persists, up to a maximum of $2,090,022\nfor a related series of violations. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\n4\n\n\n\nnot to exceed $2,000,000 for a related series of violations. We have reviewed the\ncircumstances and supporting documents involved in this case, and have decided not to\nconduct additional enforcement action or penalty assessment proceedings at this time. We\nadvise you to correct the items identified in this letter. Failure to do so will result in Tesoro\nAlaska Pipeline Company LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2018-6009W. 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,\nKim West\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP 60 - Compliance Registry\nPHP 500 – M. Chard (#155158)\n5","truncated":false,"body_characters":11309}