{"operation":"document","citation":"CPF 120121002","title":"EASTERN SHORE NATURAL GAS CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-04-04","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(a), 192.605, 192.605(a), 192.605(b)(1), 192.616(g), 192.709.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120121002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120121002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120121002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120121002","body":"Notice of Probable Violation involving EASTERN SHORE NATURAL GAS CO. PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.605,  192.605(a),  192.605(b)(1),  192.616(g),  192.709. The case was opened on 2012-04-04 and is reported as closed as of 2013-05-13. Proposed civil penalty: $34,600. Assessed civil penalty: $34,600. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120121002_Closure Letter_05132013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120121002/120121002_Closure%20Letter_05132013.pdf\n\n120121002_Closure Letter_05132013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120121002/120121002_Closure%20Letter_05132013_text.pdf\n\n120121002_Final Order_12312012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120121002/120121002_Final%20Order_12312012.pdf\n\n120121002_Final Order_12312012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120121002/120121002_Final%20Order_12312012_text.pdf\n\n120121002_NOPV_PCP_PCO_04042012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120121002/120121002_NOPV_PCP_PCO_04042012_text.pdf\n\n120121002_Operator Response_04302012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120121002/120121002_Operator%20Response_04302012.pdf\n\n120121002_Closure Letter_05132013_text.pdf\n\nU.S. Department Of Transportation Pipeline and 609.989.2171\nHazardous Materials\nSafety Administration\n820 Bear Tavern Road, Suite 103\nWest Trenton, NJ 08628\nOVERNIGHT EXPRESS MAIL\nMay 13, 2013\nMr. Stephen Thompson\nSenior Vice President\nEastern Shore Natural Gas Company\n909 Silver lake Blvd\nDover, Delaware 19901\nCPF 1-2012-1002\nDear Mr. Thompson:\nOn December 31, 2012, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Eastern Shore Natural Gas Company a Final Order in the above-referenced case. This\nOrder included a Compliance Order and Civil Penalty assessment. Based on our review of the\ndocumentation you provided and confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120121002_Final Order_12312012_text.pdf\n\nDECEMBER 31, 2012\nMr. Michael P. McMasters, President\nChesapeake Utilities Corporation\n909 Silver Lake Blvd.\nDover, Delaware 19904\nRe: CPF No. 1-2012-1002\nDear Mr. McMasters:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $34,600, withdraws one of the allegations of violation and\nspecifies actions that need to be taken by Eastern Shore Natural Gas to comply with the pipeline\nsafety regulations. The penalty payment terms are set forth in the Final Order. When the civil\npenalty has been paid and the terms of the compliance order completed, as determined by the\nDirector, Eastern Region, this enforcement action will be closed. Service of the Final Order by\ncertified mail is deemed effective upon the date of mailing, or as otherwise provided under\n49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. William Zipf, Jr., Vice President, Eastern Shore Natural Gas Company, 1110 Forrest\nAve, Suite 201, Dover, Delaware 19904\nByron Coy, Eastern Region Director, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nEastern Shore Natural Gas Company, ) )\n)\n)\nRespondent. )\n____________________________________)\nCPF No. 1-2012-1002\nFINAL ORDER\nDuring the week of May 16, 2011, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Eastern Shore Natural\nGas (ESNG or Respondent) in Dover, Delaware. ESNG is the interstate natural gas pipeline\nsubsidiary of Chesapeake Utilities Corporation. It operates 428 miles of natural gas pipeline\ntransmission pipeline for distribution to the Delmarva Peninsula.1\nAs a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent,\nby letter dated April 4, 2012, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that ESNG had committed various violations of 49 C.F.R. Part 192 and\nproposed assessing a civil penalty of $34,600 for the alleged violations. The Notice also\nproposed ordering Respondent to take certain measures to correct the alleged violations.\nESNG responded to the Notice by letter dated April 30, 2012 (Response). The company did not\ncontest the allegations of violation but provided information concerning the corrective actions it\nhad taken and submitted copies of its revised procedures. Respondent did not request a hearing\nand therefore has waived its right to one.\nFINDING[S] OF VIOLATION\nIn its Response, ESNG did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.616(g), which states:\n1 http://www.esng.com/ (last visited December 20, 2012).\n\n\n\n2\n§ 192.616 Public Awareness.\n(a) …\n(g) The program must be conducted in English and in other languages\ncommonly understood by a significant number and concentration of the\nnon-English speaking population in the operator's area.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.616(g) by failing to conduct its\npublic awareness program in other languages commonly understood by a significant number and\nconcentration of the non-English speaking population in the operator’s area. Specifically, the\nNotice alleged that ESNG failed to evaluate the size and groups of non-English speakers in its\nservice territory. Respondent did not contest this allegation of violation. Accordingly, based\nupon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.616 by\nfailing to conduct its public awareness program in other languages commonly understood by a\nsignificant number and concentration of the non-English speaking population in the operator’s\narea.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.465(a):\n§ 192.465 External Corrosion: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at\nleast once each calendar year, but with intervals not exceeding 15 months,\nto determine whether the cathodic protection meets the requirements of §\n192.463.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.465(a) by failing to test each\npipeline under cathodic protection once each calendar year, but with intervals not exceeding 15\nmonths, to determine whether the cathodic protection meets the requirements of § 192.463.\nSpecifically, the Notice alleged that ESNG failed to perform annual monitoring at seventeen test\nstations for a total of twenty-nine missed readings. Respondent did not contest this allegation of\nviolation. Accordingly, based upon a review of all of the evidence, I find that Respondent\nviolated 49 C.F.R. § 192.465(a) by failing to test each pipeline under cathodic protection once\neach calendar year, but with intervals not exceeding 15 months, to determine whether the\ncathodic protection meets the requirements of § 192.463.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(b)(1):\n§ 192.605 Procedural manual for operations, maintenance and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following, if\napplicable, to provide safety during maintenance and operations.\n(1) Operating, maintaining, and repairing the pipeline in accordance\nwith each of the requirements of this subpart and Subpart M of this part.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(b)(1) by failing to include in\nits maintenance and normal operations manual procedures to operate, maintain, and repair the\n\n\n\n3\npipeline in accordance with each of the requirements of Subpart L and Subpart M of Part 192.\nSpecifically, the Notice alleged that the operator required its facilities to be patrolled on foot or\nby aerial surveillance 4 times per year. However, there are no procedures to look for missing\nline markers, canopy coverage, or missing casing vents. The procedures direct the patroller to\nsimply seek out leaks and construction activity. Respondent did not contest this allegation of\nviolation. Accordingly, based upon a review of all of the evidence, I find that Respondent\nviolated 49 C.F.R. § 192.605(b)(1) by failing to include in its maintenance and normal operations\nmanual procedures to operate, maintain, and repair the pipeline in accordance with each of the\nrequirements of Subpart L and Subpart M of Part 192.\nThese findings of violation will be considered prior offense in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any\nrelated series of violations. In determining the amount of a civil penalty under 49 U.S.C.\n§ 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,\ncircumstances, and gravity of the violation, including adverse impact on the environment; the\ndegree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s\nability to pay the penalty and any effect that the penalty may have on its ability to continue doing\nbusiness; and the good faith of Respondent in attempting to comply with the pipeline safety\nregulations. In addition, I may consider the economic benefit gained from the violation without\nany reduction because of subsequent damages, and such other matters as justice may require.\nThe Notice proposed a total civil penalty of $34,600 for the violations cited above.\nItem 2: The Notice proposed a civil penalty of $34,600 for Respondent’s violation of 49 C.F.R.\n§ 192.465, for failing to test each pipeline under cathodic protection once each calendar year, but\nwith intervals not exceeding 15 months, to determine whether the cathodic protection meets the\nrequirements of § 192.463. ESNG neither contested the allegation nor presented any evidence\nor argument justifying a reduction or elimination in the proposed penalty. By failing to conduct\ntests to determine whether cathodic protection was adequate, Respondent increased the risk of\nharm to the public, property and the environment. Accordingly, having reviewed the record and\nconsidered the assessment criteria, I assess Respondent a civil penalty of $34,600 for violation of\n49 C.F.R. § 192.465.\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $34,600.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations\n(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike\n\n\n\n4\nMonroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The\nFinancial Operations Division telephone number is (405) 954-8893.\nFailure to pay the $34,600 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Items 1 and 3 in the Notice for\nviolations of 49 C.F.R. §§ 192.616(g) and 192.605(b)(1), respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of gas or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601. The Director has indicated that Respondent has taken the following actions to\naddress some of the cited violations:\nWith respect to the violation of § 192.605(b)(1) (Item 3), Respondent provided a\nrevised procedure. The revised written procedures for Subsection 10, Paragraph 312\nsatisfy the requirements in the Proposed Compliance Order.\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice for Item 3 are not included in this Order.\nAs for the remaining compliance terms, pursuant to the authority of 49 U.S.C. § 60118(b) and\n49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance\nwith the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 192.616(g) (Item 1), Respondent must identify\nand establish threshold levels of non-English speaking individuals in proximity to the\npipeline, and establish a means to communicate with them with respect to the\nrequirements of § 192.616. ESNG must establish a procedure and frequency to\nconduct a demographic analysis within 90 days of execution of the Final Order to\ndetermine the numbers and language groups of non-English speakers in its present\nPublic Awareness areas. If the numbers of non-English speakers in a given group\nexceed threshold levels, the operator must establish a procedure to incorporate them\ninto the Public Awareness Program within 120 days of execution of the Final Order.\nWithin 180 days of execution of the Final Order, Eastern Shore must have the\nrevisions to the Public Awareness in effect. Within 10 days of each of the above\nthree benchmark deadlines, Eastern Shore must provide PHMSA-Eastern Region with\ndocumentation to confirm its compliance.\n2. It is requested (not mandated) that Eastern Shore maintain documentation of the\n\n\n\n5\nsafety improvement costs associated with fulfilling this Compliance Order and submit\nthe total to Byron Coy, Director, Eastern Region, Pipeline and Hazardous Materials\nSafety Administration. It is requested that these costs be reported in two categories:\n1) total cost associated with preparation/revision of plans, procedures, studies and\nanalyses, and 2) total cost associated with replacements, additions, and other changes\nto pipeline infrastructure.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in the administrative assessment of civil penalties\nnot to exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nWARNING ITEMS\nWith respect to Items 4-6, the Notice alleged probable violations of Part 192 but did not propose\na civil penalty or compliance order for these items. Therefore, these are considered to be\nwarning items. The warning(s) were for:\n49 C.F.R. § 192.605 (Item 4) ─ Respondent’s alleged failure to prepare and\nfollow for each pipeline a written procedure to verify the training of appropriate\noperating personnel, to assure that they are knowledgeable of the procedures in\nthe emergency plan and to verify that the training is effective;\n49 C.F.R. § 192.709 (Item 5) ─ Respondent’s alleged failure to maintain a record\nthat it had operated its valves that might be used in an emergency at the Delaware\nCity Compressor Station; and\n49 C.F.R. § 192.605a (Item 6) ─ Respondent’s alleged failure to follow its\nprocedures which state that it will perform electrical tests annually during the\nannual cathodic protection surveys to assure that electrical isolation is adequate.\nESNG presented information in its Response showing that it had taken certain actions to address\nthe cited items. If OPS finds a violation of any of these items, Respondent may be subject to\nfuture enforcement action.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\n\n\n\n6\nThe terms and conditions of this Final Order are effective upon service in accordance with\n49 C.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":17561}