EPA found that Respondent had violated regulations implementing Section 112(r) of the Act at 40 C.F.R. Part 68 by failing to comply with the regulations as noted on the enclosed Risk Management Plan Inspection Findings and Alleged Violations Summary, which is hereby incorporated by reference. In consideration of Respondent’s size of business, its full compliance history, its good-faith effort to comply, and other factors as justice may require, and upon consideration of the entire record, the parties enter into the ESA in order to settle the violations described in the enclosed Summary for the total penalty amount of $12,000.
REASON FOR INSPECTION:
This inspection is for the purpose of determining compliance with Section 112(r)(7) accidental release prevention requirements of the Clean Air Act, as amended 1990. The scope of this inspection may include, but is not limited to: reviewing and obtaining copies of documents and records; interviews and taking of statements: reviewing of chemical storage, handling, processing, and use; taking samples and photographs; and any other inspection activities necessary to determine compliance with the Act.
#EMPLOYEES: 8
INSPECTION START DATE AND TIME: August 11, 2015, 09:30 AM
INSPECTION END DATE AND TIME: August 11, 2015, 12:00 PM
IS FACILITY SUBJECT TO RMP REGULATION (40 CFR 68)? YES
DID FACILITY SUBMIT AN RMP AS PROVIDED IN 68.150 TO 68.185? YES
DATE RMP FILED WITH EPA: 06/21/1999
DATE OF LATEST RMP UPDATE: 06/09/2014
#1 PROCESS/NAICS CODE: 325311
PROGRAM LEVEL: 3
REGULATED SUBSTANCE: Ammonia (Anhydrous)
MAX. QUANTITY IN PROCESS: 183,910 {lbs}
#2 PROCESS/NAICS CODE: 42491
PROGRAM LEVEL: 2
REGULATED SUBSTANCE: Ammonia conc 20% or greater
MAX. QUANTITY IN PROCESS: 308,080 {lbs}
DESCRIPTION OF ALLEGED VIOLATIONS
CAA Section 112(r) and its implementing regulations in 40 C.F.R. Part 68 require an owner or operator of a stationary source that has more than a threshold quantity of a regulated substance (listed in § 68.130) in a process, to develop a Risk Management Plan (RMP) and Risk Management Program.
Three EPA representatives inspected the facility on August 11, 2015. Based upon this inspection the facility is in violation of the following risk management program elements:
1. Process Safety Information [68.651: the facility did not provide adequate information pertaining to the equipment in the process included in the piping and instrument diagrams (P&ID’s) as required by 40 C.F .R. § 68.65(d)(1)(ii).
On December 11, 2015 the facility provided a process diagram (no date) for the ammonia storage and aqua ammonia converter process identifying some of the process equipment by number.
On January 29, 2016, the facility provided another revised process diagram (no date) that properly identified the emergency valve for the emergency shutoff of the ammonia storage process.
2. Process Safety Information [68.651: the facility did not provide information pertaining to the relief system design and design basis of the equipment in the process as required by 40 C.F.R. § 68.65(d)(1)(iv).
The facility was unable to produce the relief system design and design basis for the pressure relief valves located on the ammonia pressure vessels.
3. Program Process Hazard Analysis [68.67): the facility has not established a system to promptly address the team’s findings and recommendations; assured that the recommendations are resolved in a timely manner and documented; documented what actions are to be taken; completed actions as soon as possible; developed a written schedule of when these actions are to be completed; and communicated the actions to operating, maintenance, and other employees whose work assignments are in the process and who may be affected by the recommendations as required by 40 C.F.R. § 68.67(e).
The facility did not document a written schedule with assigned dues dates, who is responsible in resolving the findings/recommendations and completion action item dates for their 2013 and 2015 PHA.
4. Mechanical Integrity (68.73): the facility has not followed recognized and generally accepted good engineering practices for inspections and testing procedures as required by 40 C.F.R. § 68. 73(d)(2).
The facility was unable to produce documentation identifying the industry standard being followed for the inspection and testing of the underground pipe for the aqua ammonia converter/storage process. The American Petroleum Institute (API) 570, Piping Inspection Code: Inspection, Repair, Alteration, Rerating of In-service Piping Systems, identifies the inspection and testing methods for buried piping.
5. Mechanical Integrity (68.73): the facility has not ensured the frequency of inspections and tests of process equipment is consistent with applicable manufacturers’ recommendations, good engineering practices, and prior operating experience as required by 40 C.F.R. § 68.73(d)(3).
The facility was unable to produce documentation on the frequency of inspections and testing following manufacturer’s recommendations and good engineering practices on the buried pipe for the aqua ammonia converter/storage process.
6. Management of Change (68.75): the facility did not implement written procedures to manage changes to process chemicals, technology, equipment, and procedures and changes to stationary sources that affect a covered process meeting the requirements of 40 C.F.R. § 68.75(b) as required by 40 C.F.R. § 68.75(a).
On January 29, 2016, the facility’s Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update documentation.
7. Management of Change (68.75): the facility did not document that employees, involved in operating a process and maintenance, and contract employees, whose job tasks would be affected by a change in the process, were not informed of, and trained in, the change prior to start-up of the process or affected parts of the process as required by 40 C.F.R. § 68.75(c).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to inform and train the employees affected by the change.
8. Management of Change (68.75): the facility did not update process safety information resulting from the change in the ammonia storage process as required by 40 C.F.R. § 68.75(d).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update the process safety information such as the P&ID.
9. Management of Change (68.75): the facility did not update operating procedures or practices resulting from the change in the ammonia storage process as required by 40 C.F.R. § 68.75(e).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was signed and backdated March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update the operating procedures.
10. Pre-startup Safety Review (68.77): the facility did not perform a pre-startup safety review for a modified stationary source when the modification is significant enough to require a change in the process safety information as required by 40 C.F.R. § 68.77(a).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update documentation. A Pre-Startup Safety Review Form for MOC#1 dated March 4, 2013 was signed and backdated March 4-8, 2013 on January 28, 2016, three years after the work was completed on March 2013.
11 . Pre-startup Safety Review (68.77): the facility did not confirm that the safety, operating, maintenance, and emergency procedures were in place and were adequate prior to introduction of the regulated substance to the ammonia storage process as required by 40 C.F.R. § 68.77(b)(2).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks In installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update documentation. A Pre-Startup Safety Review Form for MOC#1 dated March 4, 2013 was signed and backdated March 4-8, 2013 on January 28, 2016, three years after the work was completed on March 2013.
12. Pre-startup Safety Review (68.77): the facility did not confirm that the modified stationary source met the requirements contained in management of change prior to introduction of the regulated substance to the ammonia storage process as required by 40 C.F.R. § 68.77(b)(3).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update documentation. A Pre-Startup Safety Review Form for MOC#1 dated March 4, 2013 was signed and backdated March 4-8, 2013 on January 28, 2016, three years after the work was completed on March 2013.
13. Pre-startup Safety Review (68.77): the facility did not ensure that the training of each employee involved in operating the ammonia storage process was completed as required by 40 C.F.R. § 68.77(b)(4).
On January 29, 2016, the facility provided an MOC Form, MOC#1 that was retroactively signed March 4, 2013 on January 28, 2016 for work completed March 2013 on a change for the ammonia storage tanks in installing pressure relief valves, a temperature gauge, and a pressure gauge to meet current regulatory standards. MOC#1 was done three years after the change was completed to update documentation. A PreStartup Safety Review Form for MOC#1 dated March 4, 2013 was signed and backdated March 4-8, 2013 on January 28, 2016, three years after the work was completed on March 2013. CHS Inc. provided an Employee Notification Of Change Form that was signed by employees on January 28-29, 2016 acknowledging that they have been trained and understood the changes.
14. RMP Registration (68.160): the facility did not assign the correct program level to the aqua ammonia storage process as required by 40 C.F.R. § 68.160(b)(7).
The June 9, 2014 RMP submitted identified the covered process, aqua ammonia storage, as a Program Level 2. The aqua ammonia storage process is a Program Level 3 process. The interconnection between the anhydrous ammonia storage tanks, the stationary converter (reactor) and the aqua ammonia storage tanks is a single covered process. The highest program level can only be applied to the covered process.
15. RMP Registration (68.160): the facility did not assign the correct five- or six-digit NAIC code that most closely corresponds to the ammonia storage and converting process to aqua ammonia as required by 40 C.F .R. § 68.160(b)(7).
The NAIC code 325311, Nitrogenous Fertilizer Manufacturing, applies to manufacturing of ammonia or ammonia nitrate, etc. The mixing of ammonia and water does not classify the process as a 325311. The NAIC code 325314, Fertilizer (Mixing Only) Manufacturing, applies to the process of aqua ammonia (cone. greater or equal to 20%).
16. RMP Registration (68.160]: the facility did not correctly report the maximum quantity of each regulated substance or mixture in the process (in pounds) to two significant digits for the aqua ammonia (20% concentration) storage process as required by 40 C.F.R. § 68.160(b)(7).
The facility did not calculate the amount of ammonia in solution for the maximum intended inventory. The facility reported in their June 9, 2014 RMP submission a maximum intended inventory of 308,080 pounds of ammonia (20% concentration) solution (exceeds the threshold of 20,000 pounds of ammonia in solution). EPA General RMP Guidance – Chapter 1 explains how the amount or ammonia in solution should be calculated.
Other Areas of Concern:
17. The emergency shutoff located at the anhydrous storage tanks were placarded as “Converter” Emergency Shutoff Pull Ring” (Photo#6). The emergency pull cable shuts off the emergency valve on the ammonia supply pipe from the anhydrous ammonia storage tanks to the aqua ammonia converter. The emergency pull cable does not shutdown the converter. The placarding should be corrected to state, “Ammonia Emergency Shutoff Pull Ring”.
18. Faded labels were observed on the back control panel of the aqua ammonia converter (Photo# 10). The labels should be replaced to be visible and readable by the operator.
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