{"operation":"document","citation":"CPF 52022033WL","title":"PHILLIPS 66 PIPELINE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-05-20","effective_on":null,"summary":"CLOSED warning letter citing 195.402(a), 195.403(b), 195.404(c)(3), 195.428(a), 195.581(a), 195.589(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022033wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022033wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022033wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52022033WL","body":"Warning Letter involving PHILLIPS 66 PIPELINE LLC. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.403(b),  195.404(c)(3),  195.428(a),  195.581(a),  195.589(c). The case was opened on 2022-05-20 and is reported as closed as of 2022-05-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52022033WL_Warning Letter_05202022_(21-228051).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022033WL/52022033WL_Warning%20Letter_05202022_(21-228051).pdf\n\n52022033WL_Warning Letter_05202022_(21-228051)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022033WL/52022033WL_Warning%20Letter_05202022_(21-228051)_text.pdf\n\n52022033WL_Warning Letter_05202022_(21-228051)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. TODD DENTON\nMay 20, 2022\nMr. Todd Denton\nPresident\nPhillips 66 Pipeline, LLC\n3010 Briar Park Drive\nPWC-7109\nHouston, TX 77042\nCPF 5-2022-033-WL\nDear Mr. Denton:\nFrom August 16 through August 19, 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 Portland Terminal in Portland, Oregon.\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. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\n\n\n\nmaintenance activities are conducted.\nPhillips 66 failed to follow their written procedure P66-MPR-6005 for Valve Inspection, Testing\nand Maintenance, Rev. 12, Effective Date Sept. 11, 2018. Section 10.2 states, in relevant part:\n“\n…If valve is Remote-operated by Control Center, contact the Control Center prior to\nperforming the task, as the Control Center will see a change in status. Under no circumstances\nshall the Control Center issue a close command to a remote-operated valve on a flowing\npipeline.”\nDuring the inspection, PHMSA reviewed Phillip 66’s valve inspection records for KM MOV1\n#296 for January 27, 2019, July 19, 2019, January 22, 2020, and July 27, 2020. The records\nfailed to demonstrate that the control room was contacted prior to performing the task, as\nrequired by Section 10.2 of the procedure.\n2. §195.403 Emergency Response Training.\n(a) . . .\n(b) At intervals not exceeding 15 months, but at least once each calendar year, each\noperator shall:\n(1) Review with personnel their performance in meeting the objectives of the\nemergency response training program set forth in paragraph (a) for this section;\nand\n(2) Make appropriate changes to the emergency response training program as\nnecessary to ensure that it is effective.\nPhillips 66 failed to review with personnel their performance in meeting the objectives of the\nemergency response training program and make appropriate changes to the program to ensure it\nis effective at intervals not exceeding 15 months, but at least once each calendar year.\nDuring the inspection, only one record (a screenshot with a date of December 11, 2020) could be\nprovided to PHMSA. Records for 2018 and 2019 could not be provided to demonstrate the\ncompany had conducted the requisite reviews.\n3. §195.404 Maps and records.\n(a)…\n(c) Each operator shall maintain the following records for the periods specified:\n(1)…\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.\nPhillips 66 failed to maintain a record of each inspection and test required under Part 195,\nSubpart F for at least 2 years or until the next inspection or test is performed, whichever is\nlonger. During the inspection, Phillips 66 did not provide documentation from 2018-2021 to\n1 MOV stands for motor-operated valve.\n\n\n\ndemonstrate that protection against ignitions during inspections and tests of its aboveground\nbreakout tanks was in accordance with API RP 2003 under § 195.404(a), nor did its O&M\nmanual explain why compliance with the standard was not necessary for the safety of its\nbreakout tanks. Phillips 66 informed PHMSA that it uses a third-party contractor to perform\noperations and maintenance activities for its breakout tanks. However, pursuant to § 195.10, it is\nthe responsibility of the operator to demonstrate compliance with the record-keeping\nrequirements set forth in § 195.404(c).\n4. §195.404 Maps and records.\n(a)…\n(c) Each operator shall maintain the following records for the periods specified:\n(1)…\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.\nPhillips 66 failed to maintain a record of each inspection and test required under Part 195,\nSubpart F for at least 2 years or until the next inspection or test is performed, whichever is\nlonger. During the inspection, Phillips 66 did not provide documentation from 2018-2021 to\ndemonstrate that during inspections and tests of its aboveground breakout tanks, its procedures\nregarding hazards associated with access/egress under § 195.404(b) were followed. Phillips 66\ninformed PHMSA that it uses a third-party contractor to perform operations and maintenance\nactivities for its breakout tanks. However, pursuant to § 195.10, it is the responsibility of the\noperator to demonstrate compliance with the record-keeping requirements set forth in §\n195.404(c).\n5. §195.428 Overpressure safety devices and overfill protection systems.\n(a) Except as provided in paragraph (b) of this section, each operator shall, at\nintervals not exceeding 15 months, but at least once each calendar year, or in the\ncase of pipelines used to carry highly volatile liquids, at intervals not to exceed 7 ½\nmonths, but at least twice each calendar year, inspect and test each pressure limiting\ndevice, relief valve, pressure regulator, or other item of pressure control equipment\nto determine that it is functioning properly, is in good mechanical condition, and is\nadequate from the standpoint of capacity and reliability of operation for the service\nin which it is used.\nPhillips 66 failed to inspect and test each pressure limiting device, relief valve, pressure\nregulator, or other item of pressure control equipment to determine that it is functioning properly,\nis in good mechanical condition, and is adequate from the standpoint of capacity and reliability\nof operation for the service in which it is used at the requisite intervals. During the inspection,\nrecords could not be provided for the inspections of the overpressure protection devices in\ncalendar year 2019.2 (The May 1, 2020 inspection record was incorrectly dated May 2019.)\n2 See 195.404(c)(3) (requiring each operator to maintain records of inspections and tests for at least 2 years).\n\n\n\nAdditionally, inspection records for the pressure transmitter on the KM line, dated May 26, 2021\nand May 28, 2020, indicated that the point is not a safety-related point. All points related to over\npressure protection are safety-related. These records also incorrectly indicated that the product is\n\"gas\" rather than non-HVL. Phillips 66 should take care to ensure that records used to\ndemonstrate compliance are free from errors and correct dates are recorded.\n6. §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.\nPhillips 66 failed to clean and coat each pipeline or portion of pipeline exposed to the\natmosphere in accordance with § 195.581(a). During the inspection, PHMSA reviewed the 2019\natmospheric inspection records for tank numbers 2915, 3408 and 3409 (dated June 24, 2019),\nwhich indicated that coating/painting deterioration had occurred. Although the records indicated\nthat corrective actions were required, repair records to demonstrate completion of the\nrecommended corrective actions could not be provided to PHMSA during the inspection.3\n7. §195.589 What corrosion control information do I have to maintain?\n(a)…\n(c) You must maintain a record of each analysis, check, demonstration,\nexamination, inspection, investigation, review, survey, and test required by this\nsubpart in sufficient detail to demonstrate the adequacy of corrosion control\nmeasures or that corrosion requiring control measures does not exist. You must\nretain these records for at least 5 years, except that records related to §§195.569,\n195.573(a) and (b), and 195.579(b)(3) and (c) must be retained for as long as the\npipeline remains in service.\nPhillips 66 could not provide records for 2018 to demonstrate compliance with § 195.589(c).\nSpecifically, annual pipe-to-soil readings for breakout tanks could not be provided for 2018.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a\nrelated series of violations. For violation occurring on or after May 3, 2021 and before March\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related series of violations. For violation occurring on or after July 31, 2019 and before\nJanuary 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the\nviolation persists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\n3 See 195.404(c)(2) (requiring each operator to maintain records of repairs for at least 1 year).\n\n\n\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto 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 Pipeline, LLC 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 5-2022-033-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 D. Fehling, L. Green (#21-228051)","truncated":false,"body_characters":12148}