{"operation":"document","citation":"CPF 52022047WL","title":"HOLLY ENERGY PARTNERS - OPERATING, L.P. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-09-02","effective_on":null,"summary":"CLOSED warning letter citing 195.214(a), 195.428(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022047wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022047wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022047wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52022047WL","body":"Warning Letter involving HOLLY ENERGY PARTNERS - OPERATING, L.P.. PHMSA's enforcement data identifies the cited regulations as 195.214(a),  195.428(a). The case was opened on 2022-09-02 and is reported as closed as of 2022-09-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52022047WL_Warning Letter_09022022_(22-239525).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022047WL/52022047WL_Warning%20Letter_09022022_(22-239525).pdf\n\n52022047WL_Warning Letter_09022022_(22-239525)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022047WL/52022047WL_Warning%20Letter_09022022_(22-239525)_text.pdf\n\n52022047WL_Warning Letter_09022022_(22-239525)_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. RICHARD VOLIVA\nSeptember 2, 2022\nMr. Richard Voliva\nPresident\nHolly Energy Partners\n2828 N. Harwood, Suite 1300\nDallas, TX 75201\nCPF 5-2022-047-WL\nDear Mr. Voliva:\nFrom April 4 through 8, 2022 and May 5 through 13, 2022, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.), inspected your Holly Energy Sinclair Transportation (Holly) liquid\ntransmission system in Wyoming and Colorado.\nAs a result of this 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. § 195.214 Welding procedures.\n(a) Welding must be performed by a qualified welder or welding operator in\naccordance with welding procedures qualified under section 5, section 12, Appendix\nA or Appendix B of API Std 1104 (incorporated by reference, see § 195.3), or\nSection IX of the ASME Boiler and Pressure Vessel Code (ASME BPVC)\n\n\n\n(incorporated by reference, see § 195.3). The quality of the test welds used to qualify\nthe welding procedures must be determined by destructive testing.\nHolly conducted welding activities using unqualified welders. During the inspection, PHMSA\nlearned that on December 12, 2020, Holly installed a pump station at Casper Station that\nrequired welding activities. The welding procedure used for this project was WPS (Welding\nProcedure Specification) N2 Rev. 2 adopted 8/15/2017. The welders who performed the welding\nactivity for the project, however, were qualified to WPS N1 instead of N2.\n2. § 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.\nHolly failed to inspect and test pressure control equipment to determine that each is functioning\nproperly, is in good mechanical condition, and is adequate from the standpoint of capacity and\nreliability of operation for the service in which it is used at least once each calendar year, not to\nexceed 15 months. Specifically, during the inspection, PHMSA found that Holly failed to\ninspect twelve relief valves that protect the upstream pipeline or protect lower pressure station\npiping and twelve relief valves that protect small segments of aboveground pipe from over\npressure, caused by thermal expansion during its 2020 and 2021 inspection cycle.\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.\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\n\n\n\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nHolly Energy Sinclair Transportation 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 5-2022-047-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 G. Ogirima (#22-239525)","truncated":false,"body_characters":6284}