EASTERN GAS TRANSMISSION AND STORAGE, INC. — Notice of Probable Violation

120031002_Final Order_07122004.pdf, page 1Official PDFu~~"'~-. a ~~-~1 ~~-;:-. ~ ~-;;-:~ ~.'-- M - ~-;;-. II . sw -:.-IIw-~-;. DC ~ JUl 1 2 3X)4 Mr. 1'IDD8 E. Capps President &; Chief Ex~tive Officer Dominion Tr8J8n illion. ~ . P. O. Box 26666 Richmolxi, VA 23261 RB: CPF No. 1-2003-1002 DearMr.~: Enclosed iI the Final Old« i!!1.!~ by the AIIociate Administrator for Pipeline Safety in the Ibove-.gf~ cue. It m8k~ a fiJMlina ofviolatioa aIMI .._=-:::~ a civil paaa1ty ofS2S.(xx). It further fiIMIs that )'Ou have completed the ~ specified in the Nocicerequ ired to CCXIIpIy with the pipeline safety regulations. The penalty payment tcrma are set f'orth in the Final Order. When the civil paIalty is paid, this eoiorcanmt Ktion win be clOled. Your receipt of' the Final Orda' constitutes service of that ~umalt WMIer 49 C.F.R. f 190.S. SilK:elely. cT=.!!:;-- Pipeti~ Ccxupli~ Registry Office of Pipeline Safety Elx:1osure cc: Mr. Jma E. p , on M_p, PipcliDe Integrity Mr. Gary L. Sypol~ Senior Vice President, DTI CERmiFlJ MAn.. -R EnJRNREC EIPT REO~TED#

120031002_Final Order_07122004.pdf, page 2DEPARTMENT OF TRANSPORT A TION RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, DC 20590 CPF No. 1-2003-1002 FINAL ORDER On May 24, 2002, pursuant to 49 V.S.C. § 60117, a representative of the West Virginia Public Service Commission (wvpSC), as agent for the Office of Pipeline Safety (OPS) conducted an investigation of an incident that occuned on April 24, 2002, which resulted in a fire and damage to the station' s dehydration unit at RCSJX>Ildent' s Comwcll CoullXelsor Station, Kanawha County, West Virginia. As a result of the inspccti~ the Director, Eutem Rcgi~ OPS, issued to Respondent, by letter dated March 4, 2003, a Notice of Probable Violati~ Proposed Civil Penalty, and Proposed Compliance Order (Notice). In accordance with 49 C.F.R § 190.207, the Notice proposed finding that Respondent had violated 49 C.F.R. §192.605(b)(6) and proposed assessing a civil penalty of $25,000 for the alleged violation. The Notice also proposed that Respondent take certain measures to co~t the alleged violation. Respondent responded to the Notice by tetter dated Aprit4, 2003 (Response). Respondent did not contest the allegation of violation but submitted infonnation concerning the co~tive actions it has taken. Respondent did not request a hearing, and therefore bas waived its right to one. FINDINGS OF VIOLADON (Uncontested) In its Response, Respondent did not contest the alleged violation in the Notice. Accoldingly, I find that Respondent violated 49 C.F.R. § 192.605(b)(6), as more fully described in the Notice: 49 C.F.R. §l92.605(b)(6}-failing to have maintenance procedures that provide guidance or that reference the manufacturer's recommended procedures for the maintenance of the glycol dehydration system and flame alTeStor located at the Cornwell Compressor Station, Kanawha County, West Virginia. Respondent also failed to follow the manufKturer's recommended procedures which require a thorough check of the glycol dch}tdration system at least every 30-40 days and failed to perform regular maintcnancc of the fircbox flame an'eStor to ensure proper operation.#

120031002_Final Order_07122004.pdf, page 32 This finding of violation will be consida'cd a prior offense in any subsequent enforcement -=lion taken against RespondenL ASSESSMENT OF PENAL TV Under 49 U.S.C. § 60122, Respondent is subject to a civil penalty not to exceed $100,000 per violation for each day of the violation up to a maximwn of $ 1 ,000,000 for any related series of violations. 49 V.S.C. § 60122 and 49 C.F.R. § 190.225 require that, in determining the amount of the civil penalty, I consider 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 Respondenes ability to continue in business, and such other matters as justice may require. The Notice proposed a $25,000 civil penalty for violation of 49 C.F.R. § 192.605(b)(6). Respondent did not contest the allegations that it failed to have maintenance procedures to provide guidance or that reference the manufacturer's recommended procedures for the maintenance of the glycol dehydration system and flame arrestor located at the Cornwell Compressor Station. Respondent also failed to follow the manufacturer's ~mmended procedures for the gl)'COI dehydration system and the firebox flame arrestor. All gas and hazardous liquid pipeline operators must maintain and make available to appropriate operating personnel a manual of written procedures for conducting operations and maintenance activities to enable persolUlel to safely and effectively perfonn their duties and maintain its facilities. Respondent bas not shown any circwnstance that would have prevented or justified it not having maintenance procedures that provide guidance or that reference the manufacturer's recommended procedures. Accordingly, having reviewed the ~ord and considered the assessment criteria, I assess Respondent a civil penalty of $25,000. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F .R. § 89.21(b)(3» require this payment may 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-120), Federal Aviation Administration, Mike MonroneyAeronautical Center, P.O. Box 25082, Oklahoma City, OK 73125; (405) 954-8893. Failure to pay the $25,000 civil penalty will result in accrual of interest at the current annual rate in accordance with 31 U.S.C. § 3717,31 C.F.R. § 901.9 and 49 C.F.R. § 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 110 days of service. Furthermore, failure to pay the civil penalty may result in refelTal of the matter to the Attorney General for appropriate action in an United States District Court. COMPLIANCE ORDER The Notice proposed a compliance order for violation of 49 C.F.R. § 192.605(b)( 6).#

120031002_Final Order_07122004.pdf, page 4, Vnder49 V.S.C. § 60118(a), each penon who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. The Regional Director has indicated that Respondent has taken the following actions sp~ified in the proposed compliance order: 1. Respondent submitted operation and maintenance procedures for the Glycol Dehydration Unit and the Super Heated Vapor (SHY) Dehydration Unit Flare System based on the manufacturer's procedures and recommendations for the safe operation of the dehydration unit ~ Respondent submitted an operation and maintenance schedule for the Cornwell Station operating personnel to perfonn the proper procedures to drain the condensate drips and prevent the overflow of condensate into the dehydration contact tower. Accordingly, since compliance has been achieved with respect to this violation, terms are not included in this Order. the compliance Under 49 C.FR § 190.215, Respondent has a right to petition for reconsideration of this Final Order. The petition must be received within 20 days of Respondent's receipt of this Final Order and must contain a brief statement of the issue(s). The filing of a petition automatically stays the payment of any civil penalty usessed. All other terms of the order, including any required corrective action, shall remain in full effect unless the Associate Administrator, upon written request, grants The tenns and conditions of this Final Order are effective upon receipt. '\') JUL 1 2 ~ Date Issued ~"" for Pipeline Safety#