{"operation":"document","citation":"CPF 52023007WL","title":"TWIN EAGLE MIDSTREAM ASSETS, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-09-22","effective_on":null,"summary":"CLOSED warning letter citing 194.7(b), 195.452(c)(1)(i), 195.579(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023007wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023007wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52023007wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52023007WL","body":"Warning Letter involving TWIN EAGLE MIDSTREAM ASSETS, LLC. PHMSA's enforcement data identifies the cited regulations as 194.7(b),  195.452(c)(1)(i),  195.579(b)(1). The case was opened on 2023-09-22 and is reported as closed as of 2023-09-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52023007WL_Warning Letter_09222023_(22-232556).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023007WL/52023007WL_Warning%20Letter_09222023_(22-232556).pdf\n\n52023007WL_Warning Letter_09222023_(22-232556)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52023007WL/52023007WL_Warning%20Letter_09222023_(22-232556)_text.pdf\n\n52023007WL_Warning Letter_09222023_(22-232556)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Michael.Matlock@twineagle.com\nSeptember 22, 2023\nMr. Michael Matlock\nVP of Compliance\nTwin Eagle Midstream Assets, LLC\n1700 City Plaza Dr., Suite 500\nSpring, TX 77389\nCPF 5-2023-007-WL\nDear Mr. Matlock:\nBetween November 8, 2022, and November 10, 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 Twin Eagle Midstream’s Powder River Basin Connector\nHazardous Liquid (HL) System in Converse County, Wyoming.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected,\nand the probable violations are:\n1. § 194.7 Operating restrictions and interim operating authorization.\n(a) . . . .\n(b) An operator must operate its onshore pipeline facilities in accordance with the\napplicable response plan.\nTwin Eagle Midstream failed to provide records demonstrating the onshore pipeline facilities\nwere operated in accordance with the applicable response plan. Specifically, Twin Eagle\nMidstream failed to provide records for performing an annual spill management exercise in\n\n\n\naccordance with the drill program outlined in its response plan for the calendar year of 2021.\nTwin Eagle Midstream’s response plan required it to conduct multiple drills including an annual\nOil Pollution Act (OPA) drill. However, during the inspection, Twin Eagle Midstream could not\nproduce documentation demonstrating an OPA drill had been conducted for the calendar year of\n2021.1\nTherefore, Twin Eagle Midstream failed to comply with § 194.7(b) by performing an annual\nOPA drill as required by the National Preparedness for Response Exercise Program (PREP)\nguidelines and applicable response plan in 2021.\n2. § 195.452 Pipeline integrity management in high consequence areas.\n(a) . . . .\n(c) What must be in the baseline assessment plan?\n(1) An operator must include each of the following elements in its written baseline\nassessment plan\n(i) The methods selected to assess the integrity of the line pipe. An operator must\nassess the integrity of the line pipe by in-line inspection tool(s) described in\nparagraph (c)(1)(i)(A) of this section for the range of relevant threats to the pipeline\nsegment. If it is impracticable based upon the construction of the pipeline (e.g.,\ndiameter changes, sharp bends, and elbows) or operational limits including\noperating pressure, low flow, pipeline length, or availability of in-line inspection tool\ntechnology for the pipe diameter, then the operator must use the appropriate\nmethod(s) in paragraphs (c)(1)(i)(B), (C), or (D) of this section for the range of\nrelevant threats to the pipeline segment. The methods an operator selects to assess\nlow-frequency electric resistance welded pipe, pipe with a seam factor less than 1.0\nas defined in § 195.106(e) or lap-welded pipe susceptible to longitudinal seam\nfailure, must be capable of assessing seam integrity, cracking, and of detecting\ncorrosion and deformation anomalies.\nTwin Eagle Midstream failed to comply with § 195.452(c)(1)(i) as it was unable to provide in its\nbaseline assessment plan the method selected to assess the integrity of the pipeline by in-line\ninspection (ILI) tool(s) for the range of relevant threats to the pipeline segment.\n2 Specifically, the\npipeline safety regulations require an operator to conduct a baseline assessment of the integrity\nof the pipeline using ILI tool(s). 3 However, during the inspection, Twin Eagle Midstream could\n1 See 49 C.F.R. §194.107(c)(1)(ix) (requiring operators to include a drill program within their response plan that\nfollows the National Preparedness for Response Exercise Program (PREP) or equivalent guidelines.)\n2Utilizing NPMS, Twin Eagle Midstream determined in 2022, that the Powder River Basin Connector crude system\nwas within the vicinity of an HCA.\n3See 49 C.F.R.§195.452(c)((1)(i)(A) (requiring operators to utilize in-line inspection tool or tools capable of\ndetecting corrosion and deformation anomalies including dents, gouges, and grooves. For pipeline segments with an\nidentified or probable risk or threat related to cracks (such as at pipe body or weld seams) based on the risk factors\nspecified in paragraph (e), an operator must use an in-line inspection tool or tools capable of detecting crack\nanomalies. When performing an assessment using an in-line inspection tool, an operator must comply with §\n195.591. An operator using this method must explicitly consider uncertainties in reported results (including tool\ntolerance, anomaly findings, and unity chart plots or equivalent for determining uncertainties) in identifying\nanomalies).\n\n\n\n3. not provide any records demonstrating it had performed any ILI tool integrity assessments for\nassessing the integrity of \"piggable\" (practicable) pipe segments.\nTherefore, Twin Eagle Midstream failed to comply with § 195.452(c)(i) by not performing a\nbaseline assessment of the pipeline’s integrity with ILI tools.\n§ 195.579 What must I do to mitigate internal corrosion?\n(a) . . . .\n(b) Inhibitors. If you use corrosion inhibitors to mitigate internal corrosion, you\nmust—\n(1) Use inhibitors in sufficient quantity to protect the entire part of the pipeline\nsystem that the inhibitors are designed to protect;\nTwin Eagle Midstream failed to comply with § 195.579(j)(1) by not utilizing corrosion control\ninhibiters in a sufficient quantity. Specifically, during the inspection, Twin Eagle Midstream\ncould not provide records demonstrating corrosion control inhibiters were used in a sufficient\nquantity. § 195.589 requires operators to investigate, mitigate, and keep records of the corrosive\neffects of the hazardous liquid transported through the pipeline.4 While reviewing Twin Eagle\nMidstream’s records, PHMSA found the operator had failed to perform inhibitor and corrosive\neffect sampling, testing, and analysis in-line with their procedures.\n5 Additionally, Twin Eagle\nMidstream could not provide liquid laboratory or corrosion inhibitor rate analyses for any\nbatches transported in 2019, 2020, 2021, and 2022. Without conducting and analyzing the tests\nrequired, Twin Eagle Midstream could not accurately determine it was utilizing sufficient\nconcentrations of corrosion control inhibitor to mitigate internal corrosion.\nTherefore, Twin Eagle Midstream failed to comply with § 195.579 by not utilizing sufficient\nconcentrations of corrosion inhibitor to mitigate internal corrosion.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a\nrelated series of violations. For violation occurring on or after March 21, 2022, and before\nJanuary 6, 2023, the maximum penalty may not exceed $239,142 per violation per day the\nviolation persists, up to a maximum of $2,391,142 for a related series of violations. For violation\noccurring on or after May 3, 2021 and before March 21, 2022, the maximum penalty may not\nexceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for\na related series of violations. For violation occurring on or after January 11, 2021, and before\nMay 3, 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,\n4 See 49 C.F.R.§ 195.589(a) and (c).\n5 See Corrosion Control Procedures at 10.4, 10.5, 10.5.4.\n\n\n\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\nTwin Eagle Midstream being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply in your correspondence, please refer\nto CPF 5-2023-007-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. Mulligan, M. Flaherty (#22-232556)\nRobert Littlepage – Twin Eagle EHS Field Manager, Robert.Littlepage@teterminals.com","truncated":false,"body_characters":10271}