{"operation":"document","citation":"CPF 52021015WL","title":"HARVEST ALASKA, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-18","effective_on":null,"summary":"CLOSED warning letter citing 195.428(c), 195.432(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021015wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021015wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021015wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021015WL","body":"Warning Letter involving HARVEST ALASKA, LLC. PHMSA's enforcement data identifies the cited regulations as 195.428(c),  195.432(b). The case was opened on 2021-03-18 and is reported as closed as of 2021-03-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021015WL_Warning Letter_03182021_(21-202999).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021015WL/52021015WL_Warning%20Letter_03182021_(21-202999).pdf\n\n52021015WL_Warning Letter_03182021_(21-202999)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021015WL/52021015WL_Warning%20Letter_03182021_(21-202999)_text.pdf\n\n52021015WL_Warning Letter_03182021_(21-202999)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. SEAN KOLASSA\nMarch 18, 2021\nMr. Sean Kolassa\nPresident\nHarvest Midstream Company\n1111 Travis Street\nHouston, Texas 77002\nCPF 5-2021-015-WL\nDear Sean Kolassa:\nFrom April 20, 2020 through April 24, 2020, and on January 21, 2021 a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected your Cook Inlet Pipeline System and the crude oil relief tank at your KPL Junction\nfacility in the Kenai Peninsula Borough, Alaska.\nAs a result of the inspection, it is alleged that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable\nviolations are:\n1. § 195.428 Overpressure safety devices and overfill protection systems.\n…\n(c) Aboveground breakout tanks that are constructed or significantly altered\naccording to API Std 2510 (incorporated by reference, see § 195.3) after October 2,\n2000, must have an overfill protection system installed according to API Std 2510,\nsection 7.1.2. Other aboveground breakout tanks with 600 gallons (2271 liters) or\nmore of storage capacity that are constructed or significantly altered after October\n2, 2000, must have an overfill protection system installed according to API RP 2350\n(incorporated by reference, see § 195.3). However, an operator need not comply with\n\n\n\nany part of API RP 2350 for a particular breakout tank if the operator describes in\nthe manual required by § 195.402 why compliance with that part is not necessary\nfor safety of the tank.\nThe operator failed to conduct the required inspections of the overfill protection devices on the crude oil\nrelief tank (Tank 001) at the KPL Junction Facility, where the Cook Inlet Pipeline and Swanson River\nPipeline systems interconnect.\nAPI 2350 requires that \"(a)n overfill protection system shall be tested on initial installation and retested\nfrequently enough as required thereafter to determine its reliability and to develop data that establishes the\ntesting, maintenance, and inspection schedules.\" (API 2350 3rd Ed. para 4.8.2(a)). The operator failed to\ntest the overfill protection system on initial installation and therefore violated 192.428(c).\nComponents used in the overfill prevention system of Tank 001 include a high-high level switch (LSHH\n4548) and an automatic tank gauge and transmitter (LIT 4549). Tank 001 was put into service in October\n2018.\nThe operator provided three documents in association with this requirement:\n A point-to-point verification worksheet for LSHH 4548 and LIT 4549 completed on December\n26, 2018. Because this worksheet was completed after the December 25, 2018 surge event into\nthe tank, it does not demonstrate that the overfill devices were tested on initial installation.\n Harvest’s instrument technician stated in a letter dated 5/11/2020 that he tested the functionality\nof LSHH-4548 in December 2018. However, this record was not contemporaneous with the test,\nand does not show that LIT 4549 was tested.\n The PSSR Process/Process Equipment startup sheet dated 12/10/2018 indicates that \"critical\nalarms, controls, and shutdowns\" have been tested. However, this worksheet does not\nspecifically show that LSHH 4548 and LIT 4549 were included as part of this test.\nTherefore, the operator failed to complete the testing of LSHH 4548 and LIT 4549 upon initial\ninstallation and in doing so failed to comply with 195.428(c).\n2. § 195.432 - Inspection of in-service breakout tanks.\n…\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.\nThe operator failed to complete a monthly in-service inspection of Tank 001 for March 2019. Monthly in-\nservices inspections are required by paragraph 6.3.1 of API 653. The operator stated that the monthly in-\nservice inspection of the breakout tank was typically completed as part of a monthly work order that also\nincluded inspection of the other KPL Junction facilities. In March 2019, the operator did not complete the\n\"Routine Breakout Tank External Inspection (Operations) Form\" that was to be completed as part of the\nmonthly work order, indicating they failed to inspect of the tank.\n2\n\n\n\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series\nof violations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum\nof $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018\nand before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and\nbefore November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time. We advise\nyou to correct the items identified in this letter. Failure to do so will result in Harvest Alaska, LLC being\nsubject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 5-\n2021-015-WL. Be advised that all material you submit in response to this enforcement action is subject\nto being made publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you must\nprovide a second copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment 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 J. Gano (#21-202999)\nRich Novcaski, Vice President, Harvest Alaska\nBen Wasson, Harvest Alaska\n3","truncated":false,"body_characters":7561}