This is the background image for an unknown creator of an OCR page with image plus hidden text. U.S. Departmentof Transportation 
400 Seventh Street, S.W. 
Washington, D.C. 20590 
Pipeline and Hazardous 
Materials Safety Administration 
OCT 1 9 2006 
Mr. Rick Olson 
Vice President of Transportation 
Magellan Pipeline Company, LLC 
1 Williams Center, Bank of Oklahoma Tower 
P.O. Box 22 186 
Tulsa, OK 7412 1-2 1 86 
Re: CPF No. 3-2006-5005 
Dear Mr. Olson: 
Enclosed is the Final Order issued by the Acting Associate Administrator for Pipeline Safety 
in the above-referenced case. It makes findings of violation and assesses a civil penalty of 
$5,000. The penalty payment terms are set forth in the Final Order. This enforcement action 
closes automatically upon payment. Your receipt of the Final Order constitutes service of that 
document under 49 C.F.R. Ħħ 190.5. 
Sincerely, 
James Reynolds 
Pipeline Compliance Registry 
Office of Pipeline Safety 
Enclosure 
cc: Ivan Huntoon, Director, Central Region, OPS 
CERTIFIED MAIL -RETURN RECEIPT REQUESTED 

This is the background image for an unknown creator of an OCR page with image plus hidden text. DEPARTMENT OF TRANSPORTATION 
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION 
OFFICE OF PIPELINE SAFETY 
WASHINGTON, D.C. 20590 
1 
In the Matter of 
1 
Magellan Pipeline Company, LLC,) CPF NO. 3-2006-5005 
) 
Respondent 1 
FINAL ORDER 
Between May 2 and September 9,2005, pursuant to 49 U.S.C. 5 601 17, representatives of the 
Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (OPS) and 
the Minnesota Office of Pipeline Safety (MNOPS) conducted an on-site pipeline safety 
inspection of Respondent's facilities and records at its Tulsa, Oklahoma headquarters and 
various field locations. As a result of the inspection, the Director, Central Region, OPS, issued 
to Respondent, by letter dated January 17,2006, a Notice of Probable Violation and Proposed 
Civil Penalty (Notice). In accordance with 49 C.F.R. 5 190.207, the Notice proposed finding 
that Respondent had violated 49 C.F.R. Part 195 and proposed assessing a civil penalty of $5,000 
for the alleged violation. 
Respondent responded to the Notice by letter dated February 22,2006 (Response). Respondent 
did not contest the allegations of violation and offered information describing the corrective 
actions it has taken. Respondent did not request a hearing, and therefore has waived its right to 
one. 
FINDING OF VIOLATION 
In its Response, Respondent did not contest the alleged violation in the Notice. Accordingly, I 
find that Respondent violated the following section of 49 C.F.R. Part 195, as more fully 
described in the Notice: 
49 C.F.R. tj 195.432 -failing to demonstrate that the specified breakout tanks received 
monthly inspections for the specified time periods in 2003 and 2004. 
This finding of violation will be considered a prior offense in any subsequent enforcement action 
taken against Respondent. 

This is the background image for an unknown creator of an OCR page with image plus hidden text. ASSESSMENT OF PENALTY 
Under 49 U.S.C. tj 60122, Respondent is subject to a civil penalty not to exceed $100,000 per 
violation for each day of the violation up to a maximum of $1,000,000 for any related series of 
violations. 
49 U.S.C. 5 60122 and 49 C.F.R. 5 190.225 require that, in determining the amount of the civil 
penalty, 1consider the following criteria: nature, circumstances, and gravity of the violation, 
degree of Respondent's culpability, history of Respondent's prior offenses, Respondent's ability 
to pay the penalty, good faith by Respondent in attempting to achieve compliance, the effect on 
Respondent's ability to continue in business, and such other matters as justice may require. 
The Notice proposed a total civil penalty of $5,000 for Respondent's failure to demonstrate that 
the specified breakout tanks received monthly inspections for the specified time periods in 2003 
and 2004 in accordance with 5 195.432. Monthly inspection of above-ground breakout tanks is 
key to ensuring that any physical integrity concerns are promptly identified and addressed. In its 
response, Respondent described the corrective actions it had taken including incorporating its 
monthly external tank inspection procedure into an electronic inspection, maintenance and 
management system capable of transmitting automatic notifications to supervisors if inspections 
are not timely completed. Respondent, however, has presented no information that would 
warrant a reduction in the civil penalty amount proposed in the Notice for this violation. 
Accordingly, having reviewed the record and considered the assessment criteria, 1assess 
Respondent a total civil penalty of $5,000. Respondent has the ability to pay this penalty without 
adversely affecting its ability to continue in business. 
Payment of the civil penalty must be made within 20 days of service. Payment may be made by 
sending a certified check or money order (containing the CPF Number for this case) payable to 
"U.S. Department of Transportation" to the Federal Aviation Administration, Mike Monroney 
Aeronautical Center, Financial Operations Division (AMZ-300), P.O. Box 25082, Oklahoma 
City, OK 73 125. 
Federal regulations (49 C.F.R. 5 89.2 1 (b)(3)) also permit this payment to be made by wire 
transfer, through the Federal Reserve Communications System (Fedwire), to the account of the 
U.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire 
transfers should be directed to: Financial Operations Division (AMZ-300), Federal Aviation 
Administration, Mike Monroney Aeronautical Center, P.O. Box 25082, Oklahoma City, OK 
73 125; (405) 954-8893. 
Failure to pay the $5,000 civil penalty will result in accrual of interest at the current annual rate 
in accordance with 31 U.S.C. 5 3717,31 C.F.R. 5 901.9 and 49 C.F.R. 5 89.23. Pursuant to 
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if 
payment is not made within 1 10 days of service. Furthermore, failure to pay the civil penalty 
may result in referral of the matter to the Attorney General for appropriate action in a United 
States District Court. 

This is the background image for an unknown creator of an OCR page with image plus hidden text. The terms and conditions of this Final Order are effective on receipt. 
OCT 1 9 2006 
Date Issued 
A in Associate Administrator 
Uipeline Safety