{"operation":"document","citation":"CPF 520195004W","title":"EXPRESS HOLDINGS (USA), LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-01-23","effective_on":null,"summary":"CLOSED warning letter citing 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520195004w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520195004w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520195004w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520195004W","body":"Warning Letter involving EXPRESS HOLDINGS (USA), LLC. PHMSA's enforcement data identifies the cited regulation as 195.432(b). The case was opened on 2019-01-23 and is reported as closed as of 2019-01-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520195004W_Warning Letter_01232019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520195004W/520195004W_Warning%20Letter_01232019.pdf\n\n520195004W_Warning Letter_01232019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520195004W/520195004W_Warning%20Letter_01232019_text.pdf\n\n520195004W_Warning Letter_01232019_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJanuary 23, 2019\nMr. Bradley Shamla\nVice President, US Operations\nExpress Holdings (USA), LLC\n5400 Westheimer Court\nHouston, TX 77056\nCPF 5-2019-5004W\nDear Mr. Shamla:\nOn October 16, 2018, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) received\ninformation from Express Holdings (USA), LLC representatives in Lakewood, Colorado about\ncompliance issues they had discovered about the breakout tanks designated as Tanks 301 and\n302 at the Edgar Terminal in Montana.\nDuring Express Holdings self-disclosure, it was confirmed that the tank inspections were not\ncompleted within the specified timeframe in Title 49, Code of Federal Regulations (CFR). At\nPHMSA’s request, Express Holdings submitted inspection records on December 17, 2018, for\nTanks 301 and 302. Western Region staff reviewed the records pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.). The records reviewed confirmed the following probable violations\noccurred:\n\n\n\n1. § 195.432 Inspection of in-service breakout tanks\n(b) Each operator must inspect the physical integrity of in-service atmospheric and\nlow-pressure steel above-ground breakout tanks according to API Std 653 (except\nsection 6.4.3, Alternative Internal Inspection Interval) (incorporated by reference,\nsee §195.3). However, if structural conditions prevent access to the tank bottom, its\nintegrity may be assessed according to a plan included in the operations and\nmaintenance manual under §195.402(c)(3). The risk- based internal inspection\nprocedures in API Std 653, section 6.4.3 cannot be used to determine the internal\ninspection interval.\nExpress Holdings did not conduct physical integrity inspections of their breakout tanks in\naccordance with §195.432. Following your self-disclosure of compliance issues with two\nbreakout tanks at your Edgar, Montana facility and an independent PHMSA review of the\nExpress Holdings records submitted, we confirmed the noncompliance. Two breakout tanks,\nTanks 301 and 302, were placed in-service on December 22, 2005 and October 29, 2005,\nrespectively. These tanks are PHMSA-regulated above-ground breakout tanks and must be\nexternally and internally inspected at intervals in accordance with API 653. Prior to March 2017,\nExpress Holdings and their previous parent company, Spectra, performed risk based inspections\nof these two tanks on March 16, 2016. In-service external inspections of Tanks 301 and 302\nwere conducted on September 21, 2011 and again on March 16, 2016. After the merger with\nExpress Holdings, an out-of-service internal inspection was performed on Tank 302 between\nAugust 23 and September 18, 2018. Information from the Tank 302 inspection, including\ncorrosion rate data, was used for a Similar Service Assessment of Tank 301.\nFor Tanks 301 and 302, Express Holdings exceeded the maximum interval of 10 years by three\n(3) years for establishing corrosion rates for the bottom plates as specified by 195.432(b) and\nAPI 653, 6.4.2.2. Furthermore, Express Holdings exceeded the maximum external inspection\ninterval of five (5) years by approximately one year (with thickness inspections) for the first\nround of external inspections of Tanks 301 and 302 which were conducted in 2011. External\ninspection intervals are specified by 195.432(b) and API 653, 6.3.3.2.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a\nrelated series of violations. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with\na maximum penalty not to exceed $2,090,022. For violations occurring prior to November 2,\n2015, 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. We reviewed the\ncircumstances and supporting documents involved in this case, and have decided not to conduct\nadditional enforcement action or penalty assessment proceedings at this time. The self-\ndisclosure coupled with the fact that an unsafe condition did not exist (albeit indeterminate for 3\n2\n\n\n\nyears per regulations) were considered in our determination to not issue additional enforcement\nactions.\nWe advise you to correct the items identified in this letter and establish ongoing processes to\nprevent recurrence. Failure to do so will result in Express Holdings being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 5-2019-5004W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nChris Hoidal\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 C. Allen (#163430)\n3","truncated":false,"body_characters":6129}