{"operation":"document","citation":"CPF 120131027W","title":"NATIONAL FUEL GAS SUPPLY CORP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-11-26","effective_on":null,"summary":"CLOSED warning letter citing 192.616(a), 192.616(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120131027w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120131027w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120131027w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120131027W","body":"Warning Letter involving NATIONAL FUEL GAS SUPPLY CORP. PHMSA's enforcement data identifies the cited regulations as 192.616(a),  192.616(c). The case was opened on 2013-11-26 and is reported as closed as of 2013-11-26. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120131027W_Operator Response_12202013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131027W/120131027W_Operator%20Response_12202013.pdf\n\n120131027W_Warning Letter_11262013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131027W/120131027W_Warning%20Letter_11262013.pdf\n\n120131027W_Warning Letter_11262013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120131027W/120131027W_Warning%20Letter_11262013_text.pdf\n\n120131027W_Warning Letter_11262013_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\nWARNING LETTER\nOVERNIGHT EXPRESS MAIL\nNovember 26, 2013\nJohn Pustulka\nPresident\nNational Fuel Gas Supply Corporation\n6363 Main Street\nWilliamsville, NY 14221\nCPF 1-2013-1027W\nDear Mr. Pustulka:\nFrom July 12 to July 14, 2011, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code inspected National Fuel Gas Supply Corporation’s (National Fuel) Public Awareness\nProgram titled Public Awareness and Education Program for Gas Distribution, Gathering and\nTransmission Pipelines, Version 1, July 11, 2011(Public Awareness and Education Program)1\n, in\nErie, Pennsylvania.\nAs a result of the inspection, it appears that you have committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable\nviolations are:\n1. §192.616 Public awareness.\n(a) Except for an operator of a master meter or petroleum gas system covered under\nparagraph (j) of this section, each pipeline operator must develop and implement a\nwritten continuing public education program that follows the guidance provided in the\nAmerican Petroleum Institute's (API) Recommended Practice (RP) 1162 (incorporated\nby reference, see § 192.7).\nNational Fuel failed to develop a written continuing education program that followed the guidance\nprovided in Sections 2.5 and 2.7 of API RP 1162 because it did not include a management statement\nfor National Fuel Gas Midstream Corporation.\n1 National Fuel applies this program to its affiliated business units.\n\n\n\n1-2013-1027W\nPursuant to Section 2.5 of API RP 1162, “[m]anagement should demonstrate its support through\ncompany policy, management participation, and allocation of resources and funding.” According to\nStep 2 under Section 2.7 of API RP 1162, an operator should “[d]evelop a company policy and\n‘statement of support’ for\nthe Public Awareness Program. This should include a commitment of participation, resources, and\nfunding for the development, implementation, and management of the program.”\nAt the time of the inspection, National Fuel used the Public Awareness and Education Program for\nvarious assets, including National Fuel Gas Midstream Corporation (Midstream). In Appendix A on\npage 28 of the Public Awareness and Education Program there was an organization chart for\nMidstream that showed a different senior executive who was responsible for program development\nand implementation than the senior executive on the management statement in Appendix A on page\n26 of the Public Awareness and Education Program. The senior executive who signed the\nmanagement statement was a senior executive for other assets but not Midstream. Thus, National\nFuel did not include a management statement for National Fuel Gas Midstream Corporation.\n2. §192.616 Public awareness.\n(a) Except for an operator of a master meter or petroleum gas system covered under\nparagraph (j) of this section, each pipeline operator must develop and implement a\nwritten continuing public education program that follows the guidance provided in the\nAmerican Petroleum Institute's (API) Recommended Practice (RP) 1162 (incorporated\nby reference, see § 192.7).\nNational Fuel failed to develop a written continuing public education that followed the guidance\nprovided in Section 4.2 of API RP 1162.\nAccording to Section 4.2 of API RP 1162, operators should provide an overview of potential\nhazards, their potential consequences and the measures undertaken by it to prevent or mitigate the\nrisks from pipeline, as well as preventive measures to help assure safety and prevent incidents to the\nstakeholders. However, at the time of the inspection, National Fuel had no process or procedures\nthat addressed the hazards and preventions measures it takes and how to provide that information to\nstakeholders. Consequently, National Fuel’s brochure for each stakeholder did not contain any\ninformation that addressed Section 4.2 of API RP 1162.\n3. §192.616 Public awareness.\n(a) Except for an operator of a master meter or petroleum gas system covered under\nparagraph (j) of this section, each pipeline operator must develop and implement a\nwritten continuing public education program that follows the guidance provided in the\nAmerican Petroleum Institute's (API) Recommended Practice (RP) 1162 (incorporated\nby reference, see § 192.7).\nNational Fuel failed to develop a written continuing public education program that followed the\nguidance in Section 4.4.3.\n120131027W_WL_11252013 2 of 5\n\n\n\n1-2013-1027W\nPursuant to Section 4.4.3 of API RP, an operator should “include information about how emergency\nofficials can access the operator’s emergency response plans covering their jurisdiction.” However,\nat the time of the inspection, National Fuel had no process or procedures that addressed how\nemergency official can access its emergency response plan and how to provide that information to\nemergency officials. Consequently, National Fuel’s brochure for emergency response did not\ncontain any information that addressed Section 4.4.3 of API RP 1162.\n4. §192.616 Public awareness.\n(a) …\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator provides\njustification in its program or procedural manual as to why compliance with all or\ncertain provisions of the recommended practice is not practicable and not necessary\nfor safety.\nNational Fuel failed to follow the general program recommendation, including baseline and\nsupplemental requirements under Section 4.7 of API RP 1162. Specifically, National Fuel did not\nprovide information about whether it has High Consequence Areas (HCAs) and/or an Integrity\nManagement Program (IMP) to the affected public, emergency officials, and public officials.\nSection 4.7 of API RP 1162 describes the information that should be included in the message\ncontent to affected public, emergency officials, and public officials within HCAs. Pursuant to\nSection 4.7.1 of API RP 1162, operators should include general information that some segments\nalong their transmission pipeline are designated as HCAs and that an IMP has been developed, to\naffected public. Also, operators should include information on where to obtain an overview of their\nIMP or view upon request. However, National Fuel’s brochure that was mailed to the affected\npublic in 2010 did not contain the aforementioned information.\nIn addition, Section 4.7.2 of API RP 1162 requires operators to include an overview of the IMP to\nemergency officials as well as a chance for them to provide feedback on the IMP. However,\nNational Fuel’s brochure that was mailed to the emergency officials in 2010 did not contain\ninformation about its IMP and how to provide feedback.\nLastly, Section 4.7.3 of API RP 1162 requires operators to include information on where to obtain\nan overview of their IMP or view upon request, to the public officials. However, National Fuel’s\nbrochure that was mailed to the public officials in 2010 did not contain the aforementioned\ninformation.\nNational Fuel did not provide information that addressed the requirements outlined under Section\n4.7 of API RP 1162 to the appropriate stakeholders.\n120131027W_WL_11252013 3 of 5\n\n\n\n1-2013-1027W\n5. §192.616 Public awareness.\n(a) …\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator provides\njustification in its program or procedural manual as to why compliance with all or\ncertain provisions of the recommended practice is not practicable and not necessary\nfor safety.\nNational Fuel failed to follow the general program recommendations, including baseline and\nsupplemental requirements under API RP 1162 Section 8.4, because it did not determine whether its\nwritten public awareness program was effective.\nPursuant to Section 8.4 of API RP 1162, an operator should assess its program to determine whether\nthe actions undertaken in implementation of the API RP 1162 achieved the intended goals and\nobjectives.\nDuring the inspection, a PHMSA inspector requested National Fuel to provide documentation of the\nevaluation that covers Section 8.4 of API RP 1162. National Fuel then produced records that\nfocused on comparing the percentages from survey results that the trade-association and the third\nparty conducted. However, National Fuel was unable to produce documentation that showed\nwhether it determined that its written public awareness program was effective or needed\nimprovement.\n6. §192.616 Public awareness.\n(a) . . .\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator provides\njustification in its program or procedural manual as to why compliance with all or\ncertain provisions of the recommended practice is not practicable and not necessary\nfor safety.\nNational Fuel failed to follow the general program recommendations, including baseline and\nsupplemental requirements in Section 8.4.2 of API RP 1162.\nSection 8.4.2 of API RP 1162, states that “[a]n effective method for assessing understandability is\nto survey the target stakeholder audience. . . .(emphasis added)” If an operator chose to “participate\nin and use the results of an industry group or trade-association survey” then “the industry or trade-\nassociation survey should allow the operator to assess the results relevant to the operator’s own\npipeline corridors and Public Awareness Programs (emphasis added).”\nNational Fuel chose the survey method. National Fuel also chose to participate in and use the\nresults of a trade-association survey. The trade-association’s survey was divided into eight (8)\nregions. National Fuel used the trade-association survey for Region 4 to assess the effectiveness of\nits program for its New York stakeholders. Those surveyed were based on zip code through which\npipeline operators passed, therefore, it is not known whether the stakeholders were all surveyed\n120131027W_WL_11252013 4 of 5\n\n\n\n1-2013-1027W\nwithin National Fuel’s notification area (zip code boundaries can exceed 660 feet pipeline buffer)\nfor its baseline messages.\nNational Fuel could not demonstrate that a survey was targeted to its stakeholder audience as\nprescribed in Section 8.4.2 of API RP 1162.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per\nviolation per day the violation persists up to a maximum of $2,000,000 for a related series of\nviolations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed\n$100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related\nseries of violations. We have reviewed the circumstances and supporting documents involved in\nthis case, and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to correct the items identified in this letter. Failure to do\nso will result in National Fuel being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2013-1027W. Please send all correspondence in this matter to Byron Coy, PE, Director,\nPHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, W. Trenton, NJ 08628. Be advised\nthat all material you submit in response to this enforcement action is subject to being made publicly\navailable. If you believe that any portion of your responsive material qualifies for confidential\ntreatment under 5 U.S.C. 552(b), along with the complete original document you must provide a\nsecond copy of the document with the portions you believe qualify for confidential treatment\nredacted and an explanation of why you believe the redacted information qualifies for confidential\ntreatment under 5 U.S.C. 552(b).\nSincerely,\nByron Coy, PE\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCC: NY DPS – Mr. Kevin Speicher\nPA PUC – Mr. Paul Metro\n120131027W_WL_11252013 5 of 5","truncated":false,"body_characters":13137}