OP RENO LLC — Warning Letter

party submissionOfficial PDF520196004W_Operator Response to Notice_03112020.pdf#

520196004W_Warning Letter_09182019_text.pdf, page 1Official PDFWARNING LETTER 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 5-2019-6004W 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 (U.S.C.), inspected your breakout tank facility in Sparks, Nevada. 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 (CFR). The items inspected and the probable violations are: 1. §195.202 Compliance with specifications or standards. Each pipeline system must be constructed in accordance with comprehensive written specifications or standards that are consistent with the requirements of this part. The OPReno Sparks Terminal OM&E procedure manual does not have a procedure or policy stating how pipeline facilities will be constructed in accordance with Subpart D of Part 195.#

520196004W_Warning Letter_09182019_text.pdf, page 22. §194.121 Response plan review and update procedures. (a) Each operator shall update its response plan to address new or different operating conditions or information. In addition, each operator shall review its response plan in full at least every 5 years from the date of the last submission or the last approval as follows: (1) For substantial harm plans, an operator shall resubmit its response plan to OPS every 5 years from the last submission date. (2) For significant and substantial harm plans, an operator shall resubmit every 5 years from the last approval date. OPReno was not able to present documentation or other substantiating evidence that a review of the OPReno Oil Spill response plan was conducted at the minimum 5-year interval as required by §194.121. 3. §195.402 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. This manual shall be reviewed at intervals not exceeding 15 months, but at least once each calendar year, and appropriate changes made as necessary to insure that the manual is effective. This manual shall be prepared before initial operations of a pipeline system commence, and appropriate parts shall be kept at locations where operations and maintenance activities are conducted. OPReno was not able to present records that the OPReno OM&E procedure manual was reviewed at least once each calendar year, not to exceed 15 months as required by §195.402(a). 4. §195.436 Security of facilities. Each operator shall provide protection for each pumping station and breakout tank area and other exposed facility (such as scraper traps) from vandalism and unauthorized entry. Recent events at the OPReno Sparks terminal have demonstrated that the facility (specifically the gate areas) are vulnerable to damage from neighboring businesses. Specifically, the OPReno Sparks Terminal main gate was damaged by a moving truck belonging to a business located directly next to the terminal. The parked, not running, unoccupied moving truck experienced a brake failure allowing the truck to roll into the maingate of the terminal, damaging it and preventing the gate from operating. 2#

520196004W_Warning Letter_09182019_text.pdf, page 3Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, 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. 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 correct the items identified in this letter. Failure to do so will result in OP Reno, LLC being subject to additional enforcement action. No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 5-2019-6004W. 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). Sincerely, Dustin Hubbard Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 J. Dunphy (#162143) 3#