OP RENO LLC — Notice of Amendment

party submissionOfficial PDF520196003M_Operator Response to Notice_03112020.pdf#

520196003M_Notice of Amendment_09182019_text.pdf, page 1Official PDFNOTICE OF AMENDMENT CERTIFIED MAIL - RETURN RECEIPT REQUESTED September 18, 2019 Mr. John Niemi Compliance Manager OP Reno, LLC 1331 Christine Avenue, Suite 100 Saint Louis, MO 63131 CPF 5-2019-6003M Dear Mr. Niemi: On November 13 through 15, 2018, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected OP Reno, LLC’s procedures for the breakout tank facility in Sparks, Nevada. On the basis of the inspection, PHMSA has identified the apparent inadequacies found within OP Reno, LLC’s plans or procedures, as described below: 1. § 195.402 Procedural manual for operations, maintenance, and emergencies. (a) . . . (c) Maintenance and normal operations. The manual required by paragraph (a) of this section must include procedures for the following to provide safety during maintenance and normal operations: (1) … (3) Operating, maintaining, and repairing the pipeline system in accordance with each of the requirements of this subpart and subpart H of this part.#

520196003M_Notice of Amendment_09182019_text.pdf, page 2OPReno Sparks Terminal OM&E manual contains incomplete procedures for operating, maintaining and repairing the pipeline system in accordance with each of the requirements of Subpart F. Specifically, §195.405(b) requires that, after October 2, 2000, operators must review and consider the potentially hazardous conditions, safety practices, and procedures in API Pub 2026 (incorporated by reference, see §195.3) for inclusion in their procedure manuals. OP Reno’s Procedure PMP-SPK-01, Section 4 – Tank Inspection states in part that a visual tank inspection of all aboveground tanks at the facility shall occur on a monthly basis. However, the procedure does not contain any instructions on completing the roof seal inspection, inspection criteria concerning the floating roof seal or safety considerations involved in conducting the floating roof seal inspection. 2. § 195.403 Emergency response training. (a) Each operator shall establish and conduct a continuing training program to instruct emergency response personnel to: (1) Carry out the emergency procedures established under 195.402 that relate to their assignments; (2) … The OPReno Sparks Terminal Emergency Response Plan, Section 6.4 relies on other sections of the plan (i.e. 6.2 – Part194, 6.3 – OSHA) without directing the reader to those sections. 3. § 195.403 Emergency response training. (a) . . . (b) At the intervals not exceeding 15 months, but at least once each calendar year, each operator shall: (1) Review with personnel their performance in meeting the objectives of the emergency response training program set forth in paragraph (a) of this section; and (2) Make appropriate changes to the emergency response training program as necessary to ensure that it is effective. The OPReno Sparks Terminal Emergency Response Plan, Section 6.4 states in part that appropriate training shall be conducted for each employee on an annual basis. However, §195.403(b) requires training at intervals not exceeding 15 months, but at least once each calendar year. 2#

520196003M_Notice of Amendment_09182019_text.pdf, page 3Response to this Notice This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. 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). Following the receipt of this Notice, you have 30 days to submit written comments, revised procedures, or a request for a hearing under §190.211. 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 an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within 60 days of receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. It is requested (not mandated) that OP Reno, LLC maintain documentation of the safety improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this matter, please refer to CPF 5-2019-6003M and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Dustin Hubbard Director, Western Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings cc: PHP-60 Compliance Registry PHP-500 J. Dunphy (#162143) 3#

520196003M_Closure Letter_05212020_text.pdf, page 1Official PDFVIA E-MAIL TO MR. JOHN NIEMI May 21, 2020 Mr. John Niemi Member and Compliance Manager Omega Partners, LLC 16647 Chesterfield Grove Road, Suite 200 St. Louis, Missouri 63005 CPF 5-2019-6002 & 5-2019-6003M Closure Letter Dear Mr. Niemi: On April 6 & 7, 2020 respectively, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to Omega Partners, LLC (Omega), the parent company for OP Reno LLC, an Order Directing Amendment for CPF 5-2019-6003M and a Final Order for CPF 5-2019-6002. The Final Order for CPF 5-2019-6002 included a Compliance Order. Based on our review of the documentation you provided, it has been determined that you have complied with the terms of this Order. The Order Directing Amendment for CPF 5-2019-6003M included a requirement to amend your procedures. Based on our review of the documentation you provided, it has been determined that you have complied with the terms of this Order. Accordingly, CPF 5-2019-6002 and CPF 5-2019-6003M are now closed and no further action is contemplated with respect to the matters involved in these cases. Thank you for your cooperation in this matter. Sincerely, Dustin Hubbard Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 J. Dunphy (#162143)#

520196003M_Order Directing Amendment_04062020_text.pdf, page 1Official PDFVIA EMAIL TO: john@omegapartnersllc.com, kmurphy@omegapartnersllc.com, and lwright@omegapartnersllc.com Mr. John Niemi Member and Compliance Manager Omega Partners, LLC 16647 Chesterfield Grove Road, Suite 200 St. Louis, Missouri 63005 Re: CPF No. 5-2019-6003M Dear Mr. Niemi: Enclosed please find the Order Directing Amendment issued in the above-referenced case. It makes findings of inadequate procedures against your subsidiary, OP Reno, LLC, and requires certain amendments to assure safe operation. When the amendment of procedures has been completed, as determined by the Director, Western Region, this enforcement action will be closed. Service of the Order Directing Amendment by e-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 Enclosures (Order Directing Amendment and Notice of Amendment) cc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA Mr. Kameron Murphy, General Counsel, OP Reno, LLC Mr. Larry Wright, Manager – Terminal Operations, OP Reno, LLC VIA EMAIL – CONFIRMATION OF RECEIPT REQUESTED#

520196003M_Order Directing Amendment_04062020_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 In the Matter of ) OP Reno, LLC, ) CPF No. 5-2019-6003M a subsidiary of Omega Partners, LLC, ) Respondent. ) ) ) ) ) ORDER DIRECTING AMENDMENT On September 18, 2019, pursuant to 49 C.F.R. § 190.206, the Director, Western Region, Office of Pipeline Safety (OPS), issued a Notice of Amendment (Notice) to OP Reno, LLC (Respondent).1 The Notice proposed finding that Respondent’s written procedures were inadequate to assure safe operation of a pipeline facility and proposed certain amendments to address the inadequacies. Respondent did not contest the allegations or proposed amendments. Based upon a review of all of the evidence, pursuant to § 190.206, I find Respondent’s procedures were inadequate with respect to the issues listed below, as more fully described in the enclosed Notice, which is incorporated by reference: 49 C.F.R. § 195.402(c)(3) (Item 1) ─ Respondent’s operations and maintenance manual contains incomplete procedures for operating, maintaining and repairing the pipeline system in accordance with each of the requirements of Subpart F. 49 C.F.R. § 195.403(a)(1) (Item 2) ─ Respondent’s Terminal Emergency Response Plan, Section 6.4, relies on other sections of the plan without directing the reader to those sections. 49 C.F.R. § 195.403(b) (Item 3) ─ Respondent’s Terminal Emergency Response Plan, Section 6.4, states in part that appropriate training shall be conducted for each employee on an annual basis. In contrast, § 195.403(b) requires training at intervals not exceeding 15 months, but at least once each calendar year. 1 OP Reno, LLC, is a subsidiary of Omega Partners, LLC. Omega Partners, LLC, website, available at https://omegapartnersllc.com/ (last accessed March 10, 2020); Omega Partners III filing with Missouri Secretary of State, available at https://bsd.sos.mo.gov/Common/CorrespondenceItemViewHandler.ashx?IsTIFF=true&filedDocumentid=4611165& version=1 (April 15, 2019).#

520196003M_Order Directing Amendment_04062020_text.pdf, page 3CPF No. 5-2019-6003M Page 2 Pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206, Respondent is ordered to take the actions proposed in the enclosed Notice to correct the inadequacies. 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. Upon completion of ordered actions, Respondent may request that the Director close the case. Failure to comply with this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this order are effective upon service in accordance with 49 C.F.R. § 190.5. April 6, 2020 ___________________________________ _________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#