{"operation":"document","citation":"CPF 520196009W","title":"NUSTAR PIPELINE OPERATING PARTNERSHIP L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-09-13","effective_on":null,"summary":"CLOSED warning letter citing 195.452(f)(3), 195.452(i)(1), 195.452(j)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520196009w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520196009w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520196009w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520196009W","body":"Warning Letter involving NUSTAR PIPELINE OPERATING PARTNERSHIP L.P.. PHMSA's enforcement data identifies the cited regulations as 195.452(f)(3),  195.452(i)(1),  195.452(j)(2). The case was opened on 2019-09-13 and is reported as closed as of 2019-09-13. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520196009W_Warning Letter_09132019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520196009W/520196009W_Warning%20Letter_09132019.pdf\n\n520196009W_Warning Letter_09132019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520196009W/520196009W_Warning%20Letter_09132019_text.pdf\n\n520196009W_Warning Letter_09132019_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 13, 2019\nMr. Gary Koegeboehn\nVP, Pipeline Operations\nNustar Pipeline Operating Partnership, L.P.\n19003 IH-10 WEST\nSan Antonio, TX, 78257\nCPF 5-2019-6009W\nDear Mr. Koegeboehn:\nFrom April 29 through May 3, 2019, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.),\ninspected your Sinclair to Rawlins, Wyoming Diesel Line in near Rawlins, Wyoming.\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. § 195.452 Pipeline integrity management in high consequence areas.\n(j) What is a continual process of evaluation and assessment to maintain a pipeline's\nintegrity?\n(2) Evaluation. An operator must conduct a periodic evaluation as frequently as\nneeded to assure pipeline integrity. An operator must base the frequency of\nevaluation on risk factors specific to its pipeline, including the factors specified in\nparagraph (e) of this section…\n\n\n\nAt the time of inspection, Nustar stated that no evaluations have been performed on the\nfacilities that could affect a High Consequence Area: Sinclair Pump Station and Rawlins\nRailroad delivery point. Evaluations would include integrity assessments such as visual\ninspections, direct inspections, and other evaluations appropriate for the identified threats and\nrisks at that facility.\n2. § 195.452 Pipeline integrity management in high consequence areas.\n(i) What preventive and mitigative measures must an operator take to protect the\nhigh consequence area?\n(1) General requirements. An operator must take measures to prevent and\nmitigate the consequences of a pipeline failure that could affect a high\nconsequence area. These measures include conducting a risk analysis of the\npipeline segment to identify additional actions to enhance public safety or\nenvironmental protection. Such actions may include, but are not limited to,\nimplementing damage prevention best practices, better monitoring of cathodic\nprotection where corrosion is a concern, establishing shorter inspection intervals,\ninstalling EFRDs on the pipeline segment, modifying the systems that monitor\npressure and detect leaks, providing additional training to personnel on response\nprocedures, conducting drills with local emergency responders and adopting\nother management controls.\nAt the time of inspection, consideration and implementation of preventive and mitigative\nmeasures had not been completed on the facilities that could affect a High Consequence Area:\nSinclair Pump Station and Rawlins Railroad delivery point.\n3. § 195.452 Pipeline integrity management in high consequence areas.\n(f) What are the elements of an integrity management program?\n(3) An analysis that integrates all available information about the integrity of the\nentire pipeline and the consequences of a failure…;\nRegarding prioritization for analysis and evaluation, the analysis for relative risk ranking for\nall Nustar facilities appears to not directly account for all available information. A discussion\nof risks confirmed that Nustar is cognizant of many of the appropriate risks including\ncorrosion and leak history. However, the relative risk ranking record appears not to directly\naddress those appropriate risks. The ranking considers five (5) factors: 1) API Class 1 Piping\nPresent, 2) Piping in an HCA, 3) Jurisdictional Piping, 4) NuStar Owned Facility, and 5) Site\nType. Although API Class 1 determination is based on the consequence of failure,\nprioritization for analysis and evaluation should analyze all available information.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465\nfor a related series of violations. For violation occurring on or after November 27, 2018 and\nbefore July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day,\n2\n\n\n\nwith a maximum penalty not to exceed $2,132,679. For violation occurring on or after\nNovember 2, 2015 and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For\nviolations occurring prior to November 2, 2015, the maximum penalty may not exceed\n$200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a\nrelated series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the items identified in this\nletter. Failure to do so will result in Nustar Pipeline Operating Partnership being subject to\nadditional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 2019-6009W. 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\nportions you believe qualify for confidential treatment redacted and an explanation of why you\nbelieve the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 C. Allen (#163215)\n3","truncated":false,"body_characters":6481}