TESORO REFINING & MARKETING COMPANY, LLC — Notice of Amendment

party submissionOfficial PDF52021041NOA_Operator Response to Notice and Request for Hearing and Statement of Issues_09232021_(21-199494).pdf#

52021041NOA_Notice of Amendment_08262021_(21-199494)_text.pdf, page 1Official PDFNOTICE OF AMENDMENT VIA E-MAIL TO MR. SHAWN LYON August 26, 2021 Mr. Shawn Lyon President Marathon Pipe Line 539 S Main Street Findlay, OH 45840 CPF 5-2021-041-NOA Dear Mr. Lyon: From June 22 to June 23, 2021, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Marathon Pipe Line’s procedures for Class Location and HCA Identification for Marathon Pipe Line Gas Transmission Pipeline Process (MPL-DOT-00671-PRS) in Los Angeles, California. On the basis of the inspection, PHMSA has identified an apparent inadequacy found within Marathon Pipe Line’s plans or procedures, as described below: 1. §192.905 How does an operator identify a high consequence area? (a) … (c) Newly identified areas. When an operator has information that the area around a pipeline segment not previously identified as a high consequence area could satisfy any of the definitions in §192.903, the operator must complete the evaluation using method (1) or (2). If the segment is determined to meet the definition as a high consequence area, it must be incorporated into the operator's baseline assessment plan as a high consequence area within one year from the date the area is identified. Marathon Pipe Line’s procedures are inadequate to assure safe operation of a pipeline facility. Specifically, Marathon’s procedure entitled Class Location and High Consequence Area (HCA) Identification for MPL Gas Transmission Pipelines Process does not contain a requirement that all newly identified HCAs be incorporated into its baseline assessment plan within 1 year from the date of identification. Marathon must amend its procedures to explicitly include this requirement.1 1 PHMSA also notes that this line should undergo continuous monitoring pursuant to Section 2.2. of the above- referenced procedures from the knock out drum in the Los Angeles Refinery to the end of the line in the Sulfur Recovery Plant.#

52021041NOA_Notice of Amendment_08262021_(21-199494)_text.pdf, page 2Response 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 90 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 Marathon Pipe Line 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 5-2021- 041-NOA and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Dustin Hubbard Director, Western Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings cc: PHP-60 Compliance Registry PHP-500 J. Gilliam, J. Luo (#21-199494) 2#

52021041NOA_Closure Letter_10062021_(21-199494)_text.pdf, page 1Official PDFVIA E-MAIL TO MR. SHAWN LYON October 6, 2021 Mr. Shawn Lyon President Marathon Pipe Line 539 S. Main Street Findlay, OH 45840 CPF 5-2021-041-NOA Closure Letter Dear Mr. Lyon: From June 22 to June 23, 2021, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Marathon Pipe Line’s procedures for Class Location and HCA Identification for Marathon Pipe Line Gas Transmission Pipeline Process (MPL-DOT-00671-PRS) in Los Angeles, California. As a result of the inspection, Marathon was issued a Notice of Amendment (Notice) on August 26, 2021 that proposed revision of the above-referenced procedure to include the requirement that all newly-identified HCAs be incorporated into its baseline assessment plan within 1 year from the date of identification pursuant to 49 C.F.R. § 192.905(c)(2). Marathon responded to the Notice by letter dated September 23, 2021 (Response). The company contested the allegation that its procedure was inadequate to assure safe operation of a pipeline facility and requested a hearing. In its Response, Marathon provided a different procedure containing the § 192.905(c)(2) requirement. PHMSA has reviewed this procedure – Marathon Pipe Line Natural Gas Integrity Management Plan Governing Standard (MPL-DOT-01432-POL) and agrees that it does contain the 1-year requirement set forth in § 192.905(c)(2). Thank you for providing this procedure. During future inspections, please provide all procedures relevant to determining compliance. § 190.203. In closing, Marathon may wish to consider shortening its Comprehensive Verification Survey interval in Section 2.4 of its Class Location and HCA Identification for Marathon Pipe Line Gas Transmission Pipeline Process (MPL-DOT-00671-PRS) procedure. Although the company utilizes continuous monitoring per Section 2.2, the field verification survey to validate all existing HCA/MCA and class location boundaries is conducted at a minimum of once every fifth calendar year. In Advisory Bulletin ADB 2016-07, PHMSA noted that “if operators review class location and PIR data on an annual basis as a part of their IM programs, the accuracy of HCA determinations will be greatly improved.” Timely identifying HCAs is important in mitigating#

52021041NOA_Closure Letter_10062021_(21-199494)_text.pdf, page 2the consequences of pipeline failures and reducing the risk of harm to the public, property, and/or environment. This case is now closed. Thank you for your cooperation. Sincerely, Dustin Hubbard Director, Western Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 J. Gilliam, J. Luo (#21-199494) 2#