# SPIRE MISSOURI INC. EAST — Notice of Probable Violation **Citation:** CPF 320205024 **Type / status:** enforcement / historical **Agency:** Pipeline and Hazardous Materials Safety Administration **Effective:** Not stated **Published:** 2020-11-30 CLOSED notice of probable violation citing 195.402(a), 195.436, 195.440(c), 195.446(c)(3), 195.452(b)(5), 195.452(h)(1)(ii), 195.452(l)(1)(ii), 195.505(b). ## Document text Notice of Probable Violation involving SPIRE MISSOURI INC. EAST. PHMSA's enforcement data identifies the cited regulations as 195.402(a), 195.436, 195.440(c), 195.446(c)(3), 195.452(b)(5), 195.452(h)(1)(ii), 195.452(l)(1)(ii), 195.505(b). The case was opened on 2020-11-30 and is reported as closed as of 2021-10-13. Proposed civil penalty: $139,800. Assessed civil penalty: $62,600. Open the official case record for notices, responses, orders, and the latest status. Official case documents: 320205024_Closure Letter_10132021_(19-167980S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Closure%20Letter_10132021_(19-167980S).pdf 320205024_Closure Letter_10132021_(19-167980S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Closure%20Letter_10132021_(19-167980S)_text.pdf 320205024_Consent Agreement and Order_04092021_(19-167980S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Consent%20Agreement%20and%20Order_04092021_(19-167980S).pdf 320205024_Consent Agreement and Order_04092021_(19-167980S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Consent%20Agreement%20and%20Order_04092021_(19-167980S)_text.pdf 320205024_NOPV PCP PCO_11302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_NOPV%20PCP%20PCO_11302020.pdf 320205024_NOPV PCP PCO_11302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_NOPV%20PCP%20PCO_11302020_text.pdf 320205024_Operator Response to Notice and Request for Hearing and Request Preliminary Statement of Issues_02012021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Request%20Preliminary%20Statement%20of%20Issues_02012021.pdf 320205024_PHC Hearing Scheduled_02182021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_PHC%20Hearing%20Scheduled_02182021.pdf 320205024_PHC Hearing Scheduled_02182021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_PHC%20Hearing%20Scheduled_02182021_text.pdf 320205024_Closure Letter_10132021_(19-167980S)_text.pdf VIA ELECTRONIC MAIL TO: craig.hoeferlin@spireenergy.com and Bob.Gardner@spireenergy.com October 13, 2021 Mr. Craig Hoeferlin Vice President, Operations Services and SMS Spire Missouri Inc. East 700 Market Street St. Louis, Missouri 63101 Re: CPF 3-2020-5024 Dear Mr. Hoeferlin: On April 9, 2021, the Pipeline and Hazardous Materials Administration (PHMSA) issued to Spire Missouri Inc. East, a Consent Order incorporating the terms of the Consent Agreement between PHMSA and Spire Missouri Inc. East, which was executed on April 7, 2021 in the above referenced case. Based on our review of the documentation provided and confirmation of payment of the civil penalty and schedule provided with respect to Item 5,6, 8 and 9 of the above referenced case, it has been determined that you have complied with the terms of the Order. This letter is to inform you no further action is necessary and this case is now closed. PHMSA will conduct a specialized inspection in 2022 to review the above referenced items that have been scheduled to be completed by Spire Missouri Inc. East for Items 5, 6, 8 and 9 by September 30, 2021. Thank you for your cooperation. Sincerely, Gregory A. Ochs Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration Cc: Bob Gardner, Director, Compliance & Pipeline Integrity, Bob.Gardner@spireenergy.com 320205024_PHC Hearing Scheduled_02182021_text.pdf February 18, 2021 VIA ELECTRONIC MAIL TO: bsk@vnf.com and gregory.ochs@dot.gov Ms. Bryn Karaus, Esq. Counsel for Spire Missouri Inc. Van Ness Feldman 1050 Thomas Jefferson Street, NW Seventh Floor Washington, DC 20007 Mr. Gregory Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration 901 Locust Street, Suite 480 Kansas City, MO 64106-2641 Re: Notice of Hearing, Spire Missouri Inc. CPF No. 3-2020-5024 Dear Ms. Karaus and Mr. Ochs: In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline and Hazardous Materials Safety Administration in the above-referenced case. The hearing will take place on April 28, 2021, beginning at 8:30 a.m. Central Time. The hearing will be held via videoconference. I will provide the videoconference information prior to the hearing. At least 10 calendar days prior to the hearing (or by April 19, 2021), both parties must submit and exchange any additional written materials they intend to present at the hearing and the name and email address of each attendee. This information should be provided electronically. Materials not submitted by this date may be excluded. If you have any questions, please do not hesitate to contact me. Sincerely, Larry White Presiding Official cc: Mr. Scott Carter, President, Spire Missouri Inc., scott.carter@spireenergy.com Mr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety, joseph.hainline@dot.gov 320205024_NOPV PCP PCO_11302020_text.pdf NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER VIA ELECTRONIC MAIL TO: Suzanne.Sitherwood@spireenergy.com and Bob.Gardner@spireenergy.com November 30, 2020 Ms. Suzanne Sitherwood President and Chief Executive Officer Spire Inc. Spire Missouri Inc. East 700 Market Street St. Louis, MO 63101 Suzanne.Sitherwood@spireenergy.com CPF 3-2020-5024 Dear Ms. Sitherwood: From February 5, 2019 to June 21, 2019, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected the Spire Inc. (Spire) Highly Volatile Liquid (HVL) pipeline system which contains propane and butane and is located in the St. Louis area (Missouri and Illinois). As a result of the inspection, it is alleged that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violations are: 1. §195.402 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline system a manual of written procedures for conducting normal operations and maintenance activities and handling abnormal operations and emergencies. This manual shall be reviewed at intervals not exceeding 15 months, but at least once each calendar year, and appropriate changes made as necessary to insure that the manual is effective. This manual shall be prepared before initial operations of a pipeline system commence, and appropriate parts shall be kept at locations where operations and maintenance activities are conducted. Spire failed to follow its own manual of written procedures for conducting normal operations and maintenance activities as required by §195.402(a). Specifically, Spire failed to follow its operations and maintenance (O&M) NGL 2050 Procedure dated December 2017. The Procedure defines the valve inspection intervals as occurring in May and November. However, records reviewed by PHMSA during the inspection show that Spire conducted valve inspections outside of the defined intervals of May and November over multiple years. Below are the number of valve inspections that occurred outside of intervals defined in Spire’s O&M NGL 2050 Procedure. Year # of valves outside of May and November 2015 63 2016 16 2017 30 2018 20 Accordingly, Spire failed to follow its O&M manual as required by §195.402(a). 2. §195.436 Security of facilities. Each operator shall provide protection for each pumping station and breakout tank area and other exposed facility (such as scraper traps) from vandalism and unauthorized entry. Spire failed to provide protection for each pumping station and breakout tank area and other exposed facility from vandalism and unauthorized entry in accordance with §195.436. Specifically, Spire failed to provide protection for the Catalan Station located in St. Louis, Missouri from vandalism and unauthorized entry. This location has a scraper trap (launcher) and other exposed facilities, measurement and vaporization. During the inspection, the PHMSA inspectors observed that the Catalan Station was fenced on three sides but the southeast side did not have a fence. During the inspection, PHMSA was informed by the operator, that fencing on the southeast side was taken out when a warehouse facility was built approximately 3 years ago. At the time of the inspection, 2 Spire had not replaced the fencing. Therefore, Spire failed to provide adequate protection for the Catalan Station from vandalism and unauthorized entry. 3. §195.440 Public awareness. (a) . . . (c) The operator must follow the general program recommendations, including baseline and supplemental requirements of API RP 1162, unless the operator provides justification in its program or procedural manual as to why compliance with all or certain provisions of the recommended practice is not practicable and not necessary for safety. Spire failed to follow the general program recommendations of API RP 1162 in developing and implementing a written continuing public awareness program, and failing to provide justification in its program or procedural manual as to why compliance with certain provisions of the recommended practice was not practicable and not necessary for safety in accordance with §195.440(c). Specifically, Spire did not perform an effectiveness review inclusive of the HVL system as recommended by Section 8.4, “Measuring Program Effectiveness,” and Section 8.5, “Summary of Baseline Evaluation Program,” of API RP 1162. During the inspection, Spire was unable to provide any documentation demonstrating that it performed an effectiveness review for its HVL system or justification why an effectiveness review was not practicable and not necessary for safety. 4. §195.446 Control room management. (a) . . . (c) Provide adequate information. Each operator must provide its controllers with the information, tools, processes and procedures necessary for the controllers to carry out the roles and responsibilities the operator has defined by performing each of the following: (1) . . . (3) Test and verify an internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months; Spire failed to test and verify its internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months as required by §195.446(c)(3). During the inspection, PHMSA reviewed the testing records of the internal communication plan. Spire produced testing records from 2015, 2017 and 2018; however, were unable to produce any testing record from 2016. The 2015 test record indicated a test was conducted on 11/13/2015 and the next available test record indicated a test was conducted on 3 5. 6. 5/10/2017, yet there was no test record for 2016. As such, Spire failed to test and verify its internal communication plan in calendar year 2016. §195.452 Pipeline integrity management in high consequence areas. (a) . . . (b) What program and practices must operators use to manage pipeline integrity? Each operator of a pipeline covered by this section must: (1)… (5) Implement and follow the program. Spire failed to follow and implement its own IMP Plan. Specifically, Spire failed to measure the IMP’s effectiveness as required by §195.452(f)(7) and Section 11.3 of the IMP Plan. Spire was unable to produce records demonstrating that it measured the effectiveness of its IMP Plan. Therefore, Spire violated §195.452(b)(5) by failing to follow and implement Section 11 (including specifics found in subsection 11.3) of its IMP Plan. §195.452 Pipeline integrity management in high consequence areas. (a) . . . (f) What are the elements of an integrity management program? An integrity management program begins with the initial framework. An operator must continually change the program to reflect operating experience, conclusions drawn from results of the integrity assessments, and other maintenance and surveillance data, and evaluation of consequences of a failure on the high consequence area. An operator must include, at minimum, each of the following elements in its written integrity management program: (1) . . . (3) An analysis that integrates all available information about the integrity of the entire pipeline and the consequences of a failure (see paragraph (g) of this section); Spire failed to integrate all available information concerning the integrity of the entire pipeline and the consequences of failure. As the time of the inspection, Spire was not integrating all available information as required by §195.452(f)(3) and Section 5.1 of Spire’s Integrity Management Program (IMP) Plan, dated December 16, 2018. A review of the current model in Spire’s IMP Plan showed that the operator did not address or integrate all available information about known areas of alternating current interference. The operator also failed to address all required risk factions identified in 195.452(e) such as manufacturing information, seam type, local environmental factors that could affect the pipeline (e.g., corrosivity of soil, subsidence, climatic) and geo- technical hazards. In addition, Spire could neither confirm verbally nor produce records 4 8. 7. at the time of the inspection to demonstrate whether or not low-frequency electric resistance weld pipe exists within the system. Therefore, Spire violated §195.452(f)(3) by failing to integrate all available information about the integrity of the entire pipeline and the consequences of failure. §195.452 Pipeline integrity management in high consequence areas. (a) . . . (h) What actions must an operator take to address integrity issues? (1) General requirements. An operator must take prompt action to address all anomalous conditions the operator discovers through the integrity assessment or information analysis. In addressing all conditions, an operator must evaluate all anomalous conditions and remediate those that could reduce a pipeline's integrity. An operator must be able to demonstrate that the remediation of the condition will ensure the condition is unlikely to pose a threat to the long-term integrity of the pipeline. An operator must comply with §195.422 when making a repair. (i) . . . (ii) Long-term pressure reduction. When a pressure reduction exceeds 365 days, the operator must notify PHMSA in accordance with paragraph (m) of this section and explain the reasons for the delay. An operator must also take further remedial action to ensure the safety of the pipeline. Spire failed to submit a notification to PHMSA as required by §195.452(h)(1)(ii) when a pressure reduction exceeded 365 days. A records review indicated a long-term pressure reduction as the result of an ILI investigation dig. Upon excavation of the line, a bolted repair clamp was discovered and the pressure was reduced in October 2017. The operator reduced the maximum operating pressure (MOP) of the line to 519 psig; prior to discovery of the anomaly, the MOP was 533 psig. The anomaly was evaluated, but at the time of PHMSA’s inspection, Spire had not yet remediated the bolted repair clamp due to the location, which was more than 365 days after Spire had taken a pressure reduction. When the pressure reduction exceeded 365 days, Spire failed to notify PHMSA and explain the reasons for the delay. Therefore, Spire violated §195.452(h)(1)(ii). §195.452 Pipeline integrity management in high consequence areas. (a) . . . integrity? (1) . . . (j) What is a continual process of evaluation and assessment to maintain a pipeline's 5 (3) Assessment intervals. An operator must establish five-year intervals, not to exceed 68 months, for continually assessing the line pipe's integrity. An operator must base the assessment intervals on the risk the line pipe poses to the high consequence area to determine the priority for assessing the pipeline segments. An operator must establish the assessment intervals based on the factors specified in paragraph (e) of this section, the analysis of the results from the last integrity assessment, and the information analysis required by paragraph (g) of this section. Spire failed to establish the assessment schedule based on all risk factors that reflect the conditions on the pipeline segment. Spire currently considers the entire system to be a high consequence area (HCA) and has established a five-year interval for assessment. However, at the time of the inspection, records indicated that there is no integration of data into the risk model to determine the assessment interval. Furthermore, Spire did not follow the IMP per Section 8 Procedure for Continual Evaluation and Assessment of Pipeline Integrity. Specifically, this section stated “These reassessment intervals for evaluation will not normally exceed 5 years and will be based upon the associated risk to each pipeline segment.” The risk model was initially run in 2004 and again in 2007 but records did not show that the risk model had been run since 2007. This was also confirmed verbally by the operator during the inspection. Therefore, Spire violated §195.452(j)(3) by failing to base its assessment intervals on the risks that the pipeline segment poses to an HCA. 9. §195.505 Qualification program. Each operator shall have and follow a written qualification program. The program shall include provisions to: (a) . . . (b) Ensure through evaluation that individuals performing covered tasks are qualified; Spire failed to ensure through evaluation that qualified individuals were performing covered tasks for the HVL system. At the time of the inspection, the supervisor for Spire’s HVL system commented that the Spire MOE Operator Qualification (OQ) Program (incorporated into Spire’s O&M manual) was not being utilized to qualify individuals performing covered tasks for the HVL system. Upon review of the Spire MOE OQ Program, PHMSA discovered that the following tasks were not identified in the OQ Program, but have been documented to have been completed on the HVL system in a review of Spire’s records:  Non-destructive testing (NDT)  Hydrostatic Pressure testing  Underwater leak survey  Launching and Receiving in-line inspection (ILI) Tools  Sonar 6 Spire also confirmed at the time of the inspection that individuals who performed the hydrotesting on the Catalan line segment as an integrity assessment method were not qualified for the covered task on July 13, 2015. Proposed Civil Penalty Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000 for a related series of violations. We have reviewed the circumstances and supporting documentation involved for the above probable violations and have recommended that you be preliminarily assessed a civil penalty of $139,800 as follows: Item number PENALTY Item number 6 Item number 7 Item number 9 $46,600 $46,600 $46,600 Warning Items With respect to items 1, 3, and 4, we have reviewed the circumstances and supporting documents involved in this case and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to promptly correct these items. Failure to do so may result in additional enforcement action. Proposed Compliance Order With respect to items 2, 5, 6, 8, 9 pursuant to 49 U.S.C. § 60118, PHMSA proposes to issue a Compliance Order to Spire. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement Proceedings. Please refer to this document and note the response options. All material submit in response to this enforcement action may be made publicly available. If you believe that any portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document you must provide a second copy of the document with the portions you believe qualify for confidential treatment redacted and an 7 explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). Following the receipt of this Notice, you have 30 days to submit written comments, or request a hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a Final Order. If you are responding to this Notice, we propose that you submit your correspondence to my office within 30 days from the receipt of this Notice. This period may be extended by written request for good cause. In your correspondence on this matter, please refer to CPF 3-2020-5024 and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Gregory A. Ochs Director, Central Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings cc: Mr. Bob Gardner, Director, Compliance & Pipeline Integrity, Spire Inc., Bob.Gardner@spireenergy.com 8 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Spire Energy (Spire) a Compliance Order incorporating the following remedial requirements to ensure the compliance of Spire with the pipeline safety regulations: 1. 2. 3. 4. 5. In regard to Item Number 2 of the Notice pertaining to the Catalan station, Spire must fully secure the site to provide protection from vandalism and unauthorized entry. A schedule for completion of securing the station must be submitted to the Director, Central Region within 30 days of the final order. Completion of this station security shall not exceed 6 months from the issuance of the final order. In regard to Item Number 5 of the Notice pertaining to Spire’s failure to perform an effectiveness review of the IMP program, Spire must measure the program’s effectiveness. A schedule for effectiveness review of the IMP program is to be submitted to the Director, Central Region within 30 days of the final order. Completion of this review shall not exceed 6 months from the issuance of the final order. In regard to Item Number 6 of the Notice pertaining to Spire’s failure to integrate all identified threats into the risk model, Spire must integrate all available information about the integrity of the entire pipeline and the consequences of a failure. A schedule for completion of data integration into the risk model is to be submitted to the Director, Central Region within 30 days of the final order. Completion of this integration shall not exceed 6 months from the issuance of the final order. In regard to Item Number 8 of the Notice pertaining to establishment of the assessment schedule, Spire must establish the assessment schedule based on all risk factors that reflect the conditions on the pipeline segment. A schedule for the assessment based on all risk factors that reflect the conditions on the pipeline segment(s) is to be submitted to the Director, Central Region within 30 days of the final order. Completion of the assessment schedule based on all risk factors shall not exceed 6 months from the issuance of the final order. In regard to Item Number 9 of the Notice pertaining to identification of covered tasks, Spire shall revise the OQ program to address the HVL pipeline and associated covered tasks. Spire will follow and ensure through evaluation that individuals performing covered tasks are qualified per the revised OQ plan that addresses HVL pipelines. This revised OQ plan will be sent to the Director, Central Region. Completion of this reviwed OQ plan shall not exceed 6 months from the issuance of the final order. 9 6. It is requested (not mandated) that Spire Inc. maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Greggory A. Ochs, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 10 320205024_Consent Agreement and Order_04092021_(19-167980S)_text.pdf April 9, 2021 VIA ELECTRONIC MAIL TO: craig.hoeferlin@spireenergy.com Mr. Craig Hoeferlin Vice President, Operations Services and SMS Spire Missouri Inc. East 700 Market Street St. Louis, Missouri 63101 CPF No. 3-2020-5024 Dear Mr. Hoeferlin: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Spire Missouri Inc. East, which was executed on April 7, 2021. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure: Order and Consent Agreement cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Ms. Bryn Karaus, Esq., Van Ness Feldman, Counsel for Spire Missouri Inc. East bsk@vnf.com CONFIRMATION OF RECEIPT REQUESTED U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Spire Missouri Inc. East, ) CPF No. 3-2020-5024 a subsidiary of Spire, Inc. ) ) ) ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated November 30, 2020, the Pipeline and Hazardous Materials Safety Administration, Office of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice) to Spire Missouri Inc. East (Spire). In response to the Notice, Spire contested the allegations and requested a hearing. Subsequently, PHMSA and Spire (collectively referred to as the Parties) agreed that the issues in the Notice may be resolved through informal discussions. On March 17, 19, and 24, 2021, the Parties engaged in good-faith settlement discussions that have resulted in the Consent Agreement attached to this Order that settles all of the issues in the Notice. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Order. Spire is hereby ordered to comply with the terms of the Consent Agreement, effective immediately. Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the assessment of civil penalties as set forth in 49 C.F.R. § 190.223. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. April 9, 2021 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ In the Matter of ) Spire Missouri Inc. East, ) CPF No. 3-2020-5024 a subsidiary of Spire Inc. ) ) ) ) Respondent. ) ____________________________________) CONSENT AGREEMENT From February 5, 2019 to June 21, 2019, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected the Spire Missouri Inc. East’s (Spire or Respondent) Highly Volatile Liquid (HVL) pipeline system which contains propane and butane and is located in the St. Louis area (Missouri and Illinois). As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated November 30, 2020, a Notice of Probable Violation, Proposed Civil Penalty and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that Spire had violated nine provisions of 49 C.F.R. Part 195, and proposed ordering Respondent to take certain measures to correct the alleged violations, and to pay a civil penalty in the amount of $139,800. Three of the alleged violations were brought as warning items. After requesting and receiving an extension of time to respond to the Notice, Spire responded to the Notice by letter dated February 1, 2021 (Response). Spire contested five of the allegations and requested a hearing. On March 17, 19, and 24, 2021, Spire and PHMSA (collectively the Parties) met to discuss a possible resolution of the case in lieu of proceeding to a hearing. During each meeting, the Parties offered additional information regarding the allegations, and an agreement was reached that resolves all of the issues in the Notice. Having agreed that settlement of this proceeding will avoid further administrative proceedings or litigation and will serve the public interest by promoting safety and protection of the environment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of Spire and PHMSA, the Parties hereby agree as follows: I. General Provisions 1. Respondent acknowledges that as the operator of the Highly Volatile Liquid (HVL) pipeline system located in the St. Louis area (Missouri and Illinois), Respondent and its referenced HVL pipeline system are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA's action in this proceeding and that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders issued thereunder. 2. After Spire returns this signed Agreement to PHMSA, the Agency’s representative will present it to the Associate Administrator for Pipeline Safety, recommending that the Associate Administrator adopt the terms of this Agreement by issuing an administrative order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement 3. Respondent consents to the issuance of the Consent Order, and hereby waives any further procedural requirements with respect to its issuance. Respondent waives all rights to contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to administrative or judicial hearings or appeals, except as set forth herein. 4. This Agreement shall apply to and be binding upon PHMSA and Spire, its officers, directors, and employees, and its successors, assigns, or other entities or persons otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans and schedules to all of Spire’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement. 5. This Agreement constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or understandings relating to settlement other than those expressly contained in this Agreement, except that the terms of this Agreement may be construed by reference to the Notice. 6. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement actions against Spire pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or State law. 7. For all transfers of ownership or operating responsibility of Spire’s HVL pipeline system referenced herein, Spire will provide a copy of this Agreement to the prospective transferee at least 30 days prior to such transfer. Spire will provide written notice of the transfer to the PHMSA Central Regional Director no later than 60 days after the transfer occurs. 8. This Agreement does not waive or modify any Federal, State, or local laws or regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Spire remains responsible for achieving and maintaining compliance with all applicable Federal, State, and local laws, regulations and permits. 9. This Agreement does not create rights in, or grant any cause of action to, any third party not party to this Agreement. The U.S. Department of Transportation is not liable for any injuries or damages to persons or property arising from acts or omissions of Respondent or its officers, employees, or agents carrying out the work required by this Agreement. Spire agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and representatives from any and all causes of action arising from any acts or omissions of Respondent or its contractors in carrying out any work required by this Agreement. 10. Upon issuance of the Consent Order, the Parties agree to the following terms. II. Items 1, 3, and 4 of the Notice (Warning Items): 12. Allegations of Violation – §§ 195.402(a) (Item 1); 195.440(c) (Item 3); and 195.446(c)(3) (Item 4): With respect to Items 1, 3, and 4 of the Notice, these Items were issued as warning items in the Notice, requiring no further action by Spire. Spire did not contest these Items. As such, these Items remain as warning items as written in the Notice. III. Item 2 of the Notice: 13. Allegation of Violation - § 195.436: With respect to Item 2 of the Notice, the Parties agree that Spire violated § 195.436, as alleged in the Notice, and shall be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Spire. 14. Compliance Order: With respect to Item 2 of the Notice, the Parties agree that Spire shall take the following actions: The Notice proposed to require Spire to fully secure the site to provide protection from vandalism and unauthorized entry, and to complete this project within 6 months from issuance of a final order. Spire has provided information to the Director that this work was completed in August 2020. Spire must provide documentation of the completion of this project to the Director within 30 days from issuance of the consent order. IV. Item 5 of the Notice: 15. Allegation of Violation - § 195.452(b)(5): With respect to Item 5 of the Notice, the Parties agree that Spire violated § 195.452(b)(5), as alleged in the Notice, and shall be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Spire. 16. Compliance Order: With respect to Item 5 of the Notice, the Parties agree that Spire shall take the following actions: Spire must measure the integrity management program’s effectiveness. A schedule for effectiveness review of the Integrity Management Program is to be submitted to the Director, Central Region, within 30 days of issuance of the consent order. Completion of this review shall not exceed 6 months from the issuance of the consent order. V. Items 6 and 8 of the Notice: 17. Allegations of Violation - §§ 195.452(f)(3) (Item 6); and 195.452(j)(3) (Item 8): With respect to Items 6 and 8 of the Notice, the Director, Central Region, has reviewed additional information provided by Spire, considered clarifications of its operations that were discussed during the informal meetings, and determined that these Items should be amended and combined into a single violation of § 195.452(l)(1)(ii). Spire agrees that it violated § 195.452(l)(1)(ii) for its failure to maintain all documentation necessary to support decisions and analyses, including any modifications, justifications, deviations and determinations made, variances, and actions taken, to implement and evaluate each element of the integrity management program, specifically its risk model. Spire further agrees that this violation shall be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Spire. 18. Civil Penalty: With respect to Spire’s violation of § 195.452(l)(1)(ii), as set forth above in paragraph 17, the Parties agree that Spire shall pay a penalty in the amount of $16,000 for the violation. Spire must pay the civil penalty no later than 30 days from the Effective Date of this Agreement. 19. Compliance Order: With respect to Spire’s violation of § 195.452(l)(1)(ii), as set forth above in paragraph 17, the Parties agree that Spire shall take the following actions: Spire must integrate all available information about the integrity of the entire pipeline and the consequences of a failure into its integrity management program risk model. A schedule for completion of data integration into the risk model is to be submitted to the Director, Central Region within 30 days of the final order. Completion of this integration shall not exceed 6 months from the issuance of the consent order. Spire must also establish an assessment schedule based on all risk factors that reflect the conditions on the applicable pipeline segment(s). A schedule for establishing the assessment schedule based on all risk factors that reflect the conditions on the pipeline segment(s) is to be submitted to the Director, Central Region within 30 days of the final order. Completion of the assessment schedule based on all risk factors shall not exceed 6 months from the issuance of the consent order. VI. Item 7 of the Notice: 20. Allegation of Violation - § 195.452(h)(1)(ii): With respect to Item 7 of the Notice, the Director, Central Region, has reviewed additional information provided by Spire and determined that this Item should be withdrawn in its entirety. Spire provided PHMSA with additional information that a pressure reduction exceeding 365 days did not occur, as alleged in the Notice. As such, the allegation of violation for Item 7 and the related proposed civil penalty associated with this Item are withdrawn. VII. Item 9 of the Notice: 21. Allegation of Violation - § 195.505(b): With respect to Item 9 of the Notice, the Parties agree that Spire violated § 195.505(b), as alleged in the Notice, and shall be considered by PHMSA as a prior offense in any future PHMSA enforcement action taken against Spire. 22. Civil Penalty: With respect to Item 9 of the Notice, Spire agrees that it shall pay a penalty in the amount of $46,600 for the violation. Spire must pay the civil penalty no later than 30 days from the Effective Date of this Agreement. 23. Compliance Order: With respect to Item 9 of the Notice, the Parties agree that Spire shall revise the Operator Qualification (OQ) program to address the HVL pipeline and associated covered tasks. Spire will follow and ensure through evaluation that individuals performing covered tasks are qualified per the revised OQ plan that addresses HVL pipelines. This revised OQ plan shall be sent to the Director, Central Region, no later than 6 months from the issuance of the consent order. VIII. Enforcement 24. This Agreement is subject to all enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under 49 U.S.C. § 60122, of up to $222,504 per violation for each day the violation continues and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent is not complying with the terms of this Agreement in accordance with determinations made by the Director, or if appealed, in accordance with decisions of the Associate Administrator. The maximum civil penalty amounts are adjusted annually for inflation. See, e.g., Pipeline Safety: Inflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017). IX. Dispute Resolution 25. The Director and Spire will informally attempt to resolve any disputes arising under this Agreement, including but not limited to any decision of the Director. If Spire and the Director are unable to informally resolve the dispute within 15 calendar days after the dispute is first raised, in writing, to the Director, Spire may submit a written request for a determination resolving the dispute from the Associate Administrator for Pipeline Safety, PHMSA. Such request must be made in writing and provided to the Director, counsel for the Central Region, and to the Associate Administrator for Pipeline Safety, no later than 10 calendar days from the 15 day deadline for informal resolution referenced in this paragraph. Along with its request, Spire must provide the Associate Administrator with all information Spire believes is relevant to the dispute. Decisions of the Associate Administrator under this paragraph will constitute final agency action. The existence of a dispute and PHMSA’s consideration of matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement during the pendency of the dispute resolution process, except as agreed by the Director or the Associate Administrator in writing, or ordered by a court of competent jurisdiction. X. Effective Date 26. The term “Effective Date,” as used herein, is the date on which the Consent Order is issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement. XI. Modification 27. The terms of this Agreement may be modified by mutual agreement of the Parties. Such modifications must be in writing and signed by both parties. XII. Ratification 28. The Parties’ undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and to execute and legally bind such party to this document. 29. The Parties hereby agree to all conditions and terms of this Agreement. For Spire Missouri Inc. East: ___________________________________ January 7, 2021 ___________________________________ Date For PHMSA: ___________________________________ Region Director January 7, 2021 ___________________________________ Date ## Provenance - Official: Yes - Source: - Source ID: `phmsa-enforcement` - SHA-256: `59c83e168115bcf806d4e4d998b4f9315a71b65636baf129d4c5c90e91fb00a5` - Retrieved: 2026-08-20T04:44:44.458Z - Exported: 2026-08-22T19:59:13.385Z - Document slug: `phmsa-enforcement-320205024` ### Source metadata ```json { "cpf": "320205024", "operator": "SPIRE MISSOURI INC. EAST", "region": "Central", "pipelineType": "INTERSTATE LIQUID ONSHORE", "caseStatus": "CLOSED", "citedSections": [ "195.402(a)", "195.436", "195.440(c)", "195.446(c)(3)", "195.452(b)(5)", "195.452(h)(1)(ii)", "195.452(l)(1)(ii)", "195.505(b)" ], "dataAsOf": "08/04/2026 12PM", "caseDataAsOf": "2026-08-04", "attachmentCount": 9, "attachments": [ { "name": "320205024_Closure Letter_10132021_(19-167980S).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Closure%20Letter_10132021_(19-167980S).pdf", "bytes": 245944, "category": "agency_document" }, { "name": "320205024_Closure Letter_10132021_(19-167980S)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Closure%20Letter_10132021_(19-167980S)_text.pdf", "bytes": 79198, "category": "agency_document" }, { "name": "320205024_Consent Agreement and Order_04092021_(19-167980S).pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Consent%20Agreement%20and%20Order_04092021_(19-167980S).pdf", "bytes": 613589, "category": "agency_document" }, { "name": "320205024_Consent Agreement and Order_04092021_(19-167980S)_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Consent%20Agreement%20and%20Order_04092021_(19-167980S)_text.pdf", "bytes": 210341, "category": "agency_document" }, { "name": "320205024_NOPV PCP PCO_11302020.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_NOPV%20PCP%20PCO_11302020.pdf", "bytes": 367021, "category": "agency_document" }, { "name": "320205024_NOPV PCP PCO_11302020_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_NOPV%20PCP%20PCO_11302020_text.pdf", "bytes": 216876, "category": "agency_document" }, { "name": "320205024_Operator Response to Notice and Request for Hearing and Request Preliminary Statement of Issues_02012021.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Request%20Preliminary%20Statement%20of%20Issues_02012021.pdf", "bytes": 661421, "category": "party_submission" }, { "name": "320205024_PHC Hearing Scheduled_02182021.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_PHC%20Hearing%20Scheduled_02182021.pdf", "bytes": 149693, "category": "agency_document" }, { "name": "320205024_PHC Hearing Scheduled_02182021_text.pdf", "url": "https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_PHC%20Hearing%20Scheduled_02182021_text.pdf", "bytes": 82709, "category": "agency_document" } ], "extractedAgencyDocumentCount": 4, "attachmentPolicy": "Official attachment links are retained. Agency-issued documents may also include a verified local PDF and page-level text representation.", "jurisdiction": "US", "operatorName": "SPIRE MISSOURI INC. EAST" } ```