{"operation":"document","citation":"CPF 52021050WL","title":"PHILLIPS 66 PIPELINE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-12","effective_on":null,"summary":"CLOSED warning letter citing 195.110(b), 195.559(b), 195.559(c), 195.583(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021050wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021050wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52021050wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52021050WL","body":"Warning Letter involving PHILLIPS 66 PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.110(b),  195.559(b),  195.559(c),  195.583(c). The case was opened on 2021-10-12 and is reported as closed as of 2021-10-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52021050WL_Warning Letter_10122021_(21-199945).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021050WL/52021050WL_Warning%20Letter_10122021_(21-199945).pdf\n\n52021050WL_Warning Letter_10122021_(21-199945)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52021050WL/52021050WL_Warning%20Letter_10122021_(21-199945)_text.pdf\n\n52021050WL_Warning Letter_10122021_(21-199945)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. TODD DENTON\nOctober 12, 2021\nMr. Todd Denton\nVP Midstream Operations\nPhillips 66\n2331 CityWest Boulevard, N812-03\nHouston, TX 77042\nCPF 5-2021-050-WL\nDear Mr. Denton:\nFrom July 13 through 15, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nyour Phillips 66 (P66) Denver Refined Products Terminal system in Commerce City, Colorado.\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. §195.583 What must I do to monitor atmospheric corrosion control?\n(a)…\n(c) If you find atmospheric corrosion during an inspection, you must provide\nprotection against the corrosion as required by §195.581.\nAfter finding atmospheric corrosion during inspection, P66 failed to provide protection against\ncorrosion as required by §195.581. Despite the prevalence of atmospheric corrosion on its line,\n\n\n\nP66 failed to adequately clean and coat the pipeline pursuant to § 195.581(a).1 During the\ninspection, PHMSA identified numerous areas of atmospheric corrosion on P66’s pipeline\nincluding multiple instances of soil-to-air interface corrosion (e.g. pipe laying in the soil without\nproper coating; this makes the pipe susceptible to corrosion more than either buried or\nraised/unburied sections), excessive external corrosion with pitting, and excessive crevice\ncorrosion (e.g., where pipe meets the supports). See in the form of Exhibit 1.1 – 1.3 attached\nhereto.\n2. §195.559 What coating material may I use for external corrosion control?\nCoating material for external corrosion control under § 195.557 must –\n(a)…\n(b) Have sufficient adhesion to the metal surface to prevent under film migration of\nmoisture;\n(c) Be sufficiently ductile to resist cracking;\nThe P66 lines moving product between the Mainline and Breakout Tanks failed to have external\ncorrosion control coating material with sufficient adhesion to the metal surface to prevent under\nfilm migration of moisture and was not sufficiently ductile to resist cracking. During the pipeline\nfield inspection, PHMSA identified multiple above-ground locations which had cracks, dis-\nbonding, and coating damage. These deficiencies allow moisture to collect between the coating\nand pipeline surface which can cause external corrosion and metal loss. See in the form of\nExhibit 2.1 – 2.2 attached hereto.\n3. §195.110 External loads.\n(a)…\n(b) The pipe and other components must be supported in such a way that the\nsupport does not cause excess localized stresses. In designing attachments to pipe,\nthe added stress to the wall of the pipe must be computed and compensated for.\nP66 failed to have its pipe and other components supported in such a way that the support does\nnot cause excess localized stress. During the field inspection, PHMSA identified multiple pipe\nsupports that had support cushions missing, deteriorated, or improperly installed between the\nmainline and breakout tanks. As a result, the pipeline is not properly supported and causes excess\nlocalized stress. See in the form of Exhibit 3.1 – 3.3 attached hereto.\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\n1 This does not fall within an exception in § 195.581(c) because this is not light surface oxide nor is it corrosion that otherwise\nwould not affect the safe operation of the pipeline before the next scheduled inspection. This corrosion impacts the safe operation\nof the pipeline due to the pipeline’s age (approximately 70 years old), its location within a High Consequence Area, and its inability\nto be assessed via in-line inspection.\n2\n\n\n\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\nPhillips 66 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 5-2021-050-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\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 M. Buss, H. Flaherty (#21-199945)\nTodd Fuksa, Compliance Director, Phillips 66\nJose Rodriguez, DOT Coordinator, Phillips 66\n3","truncated":false,"body_characters":6866}