{"operation":"document","citation":"CPF 52021044WL","title":"CHEYENNE RAIL HUB — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-08-24","effective_on":null,"summary":"CLOSED warning letter citing 194.107(c)(1)(ix), 195.404(c)(3), 195.581(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021044wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021044wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021044wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021044WL","body":"Warning Letter involving CHEYENNE RAIL HUB. PHMSA's enforcement data identifies the cited regulations as 194.107(c)(1)(ix),  195.404(c)(3),  195.581(a). The case was opened on 2021-08-24 and is reported as closed as of 2021-08-24. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021044WL_Warning Letter_08242021_(21-199989).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021044WL/52021044WL_Warning%20Letter_08242021_(21-199989).pdf\n\n52021044WL_Warning Letter_08242021_(21-199989)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021044WL/52021044WL_Warning%20Letter_08242021_(21-199989)_text.pdf\n\n52021044WL_Warning Letter_08242021_(21-199989)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. JOSH JAMISON\nAugust 24, 2021\nMr. Josh Jamison\nPrincipal\nCheyenne Rail Hub\n1300 Venture Way\nCasper, WY 82609\nCPF 5-2021-044-WL\nDear Mr. Jamison:\nFrom June 1, 2021 through June 3, 2021, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), inspected your 1.8 miles of 12-inch bi-directional pipeline, operating between the\nBridger Swan Ranch Facility and CRH Terminal located in Cheyenne, 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 inspected\nand the probable violations are:\n1. § 194.107 - General response plan requirements.\n(a) …\n(c) Each response plan must include:\n(1) A core plan consisting of—\n(ix) Drill program—an operator will satisfy the requirement for a drill program by\nfollowing the National Preparedness for Response Exercise Program (PREP)\nguidelines. An operator choosing not to follow PREP guidelines must have a drill\nprogram that is equivalent to PREP. The operator must describe the drill program\nin the response plan and OPS will determine if the program is equivalent to PREP.\n1\n\n\n\nA review of documentation for drills showed a Government Initiated Unannounced Exercises\n(GIUE) with the EPA in 2020 and 2021. In addition, tabletop exercises were done in 2018 and\n2019. Discussion of lessons learned were conducted but no documentation was presented. It was\ndetermined that Cheyenne Rail Hub did not follow PREP guidelines for proper documentation of\nself-certification. The “Lessons Learned” were not addressed as required.\nAs the National Preparedness for Response Exercise Program (PREP) Guidelines state:\n“Self-certification is where the plan holder declares that he or she has met the following\nstandards: (1) completion of the exercise; (2) conducting of the exercise in accordance with the\nPREP guidelines, meeting all objectives listed; and (3) evaluation of the exercise using a\nmechanism that appraises the effectiveness of the response or contingency plan.” (1-8).\n“Proper documentation for self-certification should include, as a minimum, the following\ninformation:\n• The type of exercise.\n• Date and time of exercise.\n• A description of the exercise.\n• The objectives met in the exercise.\n• The components of the response plan exercised.\n• Lessons learned.\nThis documentation must be in writing and signed by an individual empowered by the plan\nholder organization.” (2-23).\n2. § 195.404 - Maps and records.\n(a) …\n(c) Each operator shall maintain the following records for the periods specified:\n(3) A record of each inspection and test required by this subpart shall be maintained\nfor at least 2 years or until the next inspection or test is performed, whichever is\nlonger.\n§ 195.581 - Which pipelines must I protect against atmospheric corrosion and what\ncoating material may I use?\n(a) You must clean and coat each pipeline or portion of pipeline that is exposed to\nthe atmosphere, except pipelines under paragraph (c) of this section.\nAtmospheric corrosion monitoring was not being performed on metering and station piping that\nhad thermal insulation. Cheyenne Rail Hub's Section 900 Subpart H - Corrosion Control\nProcedure considered “pipe under insulation” for atmospheric corrosion monitoring:\n2\n\n\n\n900.90.2 Atmospheric Corrosion Design Considerations\nFacility corrosion control design should include but not be limited to, the\nfollowing considerations:\n Flange gaps and bolts\n Air/ground interface\n Splash zones\n Air/building interface\n Crevices\n Pipe supports and wear pads\n Pipe under insulation\n Spans/bridges\n Deck penetrations\nHowever, Cheyenne Rail Hub’s most recent atmospheric corrosion inspection record in June\n2018 does not adequately document any completed actions taken regarding pipe under thermal\ninsulation. During the inspection, Cheyenne Rail Hub verbally confirmed with PHMSA\nrepresentatives that atmospheric corrosion monitoring was not being performed on pipe under\nthermal insulation.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a\nrelated series of violations. For violation occurring on or after January 11, 2021 and before May\n3, 2021, the maximum penalty may not exceed $222,504 per violation per day the violation\npersists, up to a maximum of $2,225,034 for a related series of violations. For violation\noccurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not\nexceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for\na related series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 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,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nCheyenne Rail Hub being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 5-2021-044-WL. 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 portions\n3\n\n\n\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nDustin Hubbard\nDirector, Western Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Luo, C. Cordova (#21-199989)\n4","truncated":false,"body_characters":7165}