COLUMBIA GAS TRANSMISSION, LLC — Notice of Probable Violation

party submissionOfficial PDF120131037_Operator Response to Notice_02112014.pdf#

120131037_Final Order_09102014_text.pdf, page 1Official PDFSEPTEMBER 10, 2014 Mr. Shawn L. Patterson President Columbia Gas Transmission Corporation 1700 MacCorkle Avenue, SE Charleston, WV 25314 Re: CPF No. 1-2013-1037 Dear Mr. Patterson: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation, assesses a civil penalty of $24,400, and specifies actions that need to be taken by Columbia Gas Transmission Corporation to comply with the pipeline safety regulations. The penalty payment terms are set forth in the Final Order. When the civil penalty has been paid and the terms of the compliance order completed, as determined by the Director, Eastern Region, this enforcement action will be closed. Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure cc: Mr. Byron Coy, PE, Director, Eastern Region, OPS Mr. Perry Michael Hoffman, Manager – System Integrity, Columbia Gas Transmission Corporation CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

120131037_Final Order_09102014_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 __________________________________________ In the Matter of ) Columbia Gas Transmission Corporation, ) CPF No. 1-2013-1037 ) ) ) Respondent. ) __________________________________________) FINAL ORDER Between July 23-31, 2012, pursuant to 49 U.S.C. § 60117, inspectors from the New York State Department of Public Service (NYSDPS), acting as agents for the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United States Code, conducted an on-site pipeline safety inspection of the facilities and records of Columbia Gas Transmission Corporation (CGT) Millennium Pipeline facilities in Kirkwood, NY. CGT, a subsidiary of Columbia Pipeline Group, operates approximately 12,000 miles of pipeline, transporting an average of 3 billion cubic feet of natural gas per day through 10 1 states. As a result of the inspection, the Director, Eastern Region, OPS (Director), issued to Respondent, by letter dated December 23, 2013, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that CGT had committed various violations of 49 C.F.R. Part 192 and proposed assessing a civil penalty of $24,400 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violations. The warning items required no further action, but warned the operator to correct the probable violation. CGT responded to the Notice by letter dated February 11, 2014 (Response). The company did not contest the allegations of violation but provided information concerning the corrective actions it had taken and submitted copies of its revised procedures. Respondent did not request a hearing and therefore has waived its right to one. 1 See http://www.columbiapipelinegroup.com/en/about-us/our-companies.aspx#columbiagastransmission, last visited on August 7, 2014.#

120131037_Final Order_09102014_text.pdf, page 32 FINDING OF VIOLATION In its Response and, CGT did not contest the allegation in the Notice that it violated 49 C.F.R. Part 192, as follows: Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.603, which states in relevant part: § 192.603 General Provisions. (a) . . . . (b) Each operator shall keep records necessary to administer the procedures established under § 192.605. The Notice alleged that Respondent violated 49 C.F.R. § 192.603 by failing to keep records necessary to administer the procedures established under § 192.605. Specifically, the Notice alleged that CGT failed to adequately document what caused a compressor station emergency shutdown (ESD) in its Abnormal Operations Report as required by its procedures. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.603 by failing to keep records necessary to administer the procedures established under § 192.605. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.2 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; and any effect that the penalty may have on its ability to continue doing business; and the good faith of Respondent in attempting to comply with the pipeline safety regulations. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $24,400 for the violations cited above. Item 1: The Notice proposed a civil penalty of $24,400 for Respondent’s violation of 49 C.F.R. § 192.603, for failing to keep document adequate records necessary to administer the procedures under § 192.605. CGT neither contested the allegation nor presented any evidence or argument 2 The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, Pub. L. No. 112-90, § 2(a)(1), 125 Stat. 1904, January 3, 2012, increased the civil penalty liability for violating a pipeline safety standard to $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.#

120131037_Final Order_09102014_text.pdf, page 43 justifying a reduction in the proposed penalty. Respondent failed to comply with its own procedures for documenting abnormal operations. Operators must properly follow procedures regarding abnormal operations in order to respond to, investigate, and correct the cause of an unintended shutdown, which could result in a hazard. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $24,400 for violation of 49 C.F.R. § 192.603. In summary, having reviewed the record and considered the assessment criteria for each of the Items cited above, I assess Respondent a total civil penalty of $24,400. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 60118. Under 49 U.S.C. § 60118(a), each person 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. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 192.603 (Item 1), Respondent must perform an analysis to determine the cause of the ESD activation and submit the analysis to the Director within 90 days after receipt of this Final Order. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Failure to comply with this Order may result in the administrative assessment of civil penalties not to exceed $200,000 for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. WARNING ITEMS With respect to Items 2 and 3, the Notice alleged probable violations of Part 192 but did not propose a civil penalty or compliance order for these items. Therefore, these are considered to be warning items. The warnings were for: 49 C.F.R. § 192.603 (Item 2) ─ Respondent’s alleged failure to keep records necessary to administer the procedures established under § 192.605, specifically the records of the capacity review of each and every overpressure protection device required by § 192.743(a); and 49 C.F.R. § 192.603 (Item 3) ─ Respondent’s alleged failure to keep records necessary to administer the procedures established under § 192.605, specifically#

120131037_Final Order_09102014_text.pdf, page 54 the records documenting a 2011 field population density survey that was required by its procedures. CGT presented information in its Response showing that it had taken certain actions to address the cited items. If OPS finds a violation of any of these items in a subsequent inspection, Respondent may be subject to future enforcement action. Under 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA will accept petitions received no later than 20 days after receipt of service of this Final Order by the Respondent, provided they contain a brief statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of any civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all other terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#

120131037_Closure Letter_12172014_text.pdf, page 1Official PDFU.S. Department Of Transportation Pipeline and 609.989.2171 Hazardous Materials Safety Administration 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 EXPRESS OVERNIGHT DELIVERY December 17, 2014 Mr. Shawn L. Patterson President Columbia Gas Transmission Corporation 1700 MacCorkle Avenue, SE Charleston, WV 25314 CPF 1-2013-1037 Dear Mr. Patterson: On September 10, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to the Columbia Gas Transmission Corporation a Final Order in the above-referenced case. This Order included a Compliance Order and Civil Penalty assessment. Based on our review of the documentation you provided, and confirmation of payment of the civil penalty, it has been determined that you have complied with the terms of this Order. Accordingly, this case is now closed and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Byron Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: Mr. Kevin Speicher, NYSDPS#

120131037_NOPV PCP PCO_12232013_text.pdf, page 1Official PDFU.S. Department Of Transportation Pipeline and 609.989.2171 Hazardous Materials Safety Administration 820 Bear Tavern Road, Suite 103 West Trenton, NJ 08628 NOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER EXPRESS MAIL OVERNIGHT December 23, 2013 Shawn L. Patterson President Engineering & Project Development Columbia Gas Transmission Corp. 1700 MacCorkle Avenue, SE Charleston, WV 25314 CPF 1-2013-1037 Dear Mr. Patterson: Between July 23-31, 2012 inspectors from the New York State Department of Public Service (NYSDPS), acting as agents for the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the Columbia Gas Transmission Corporation (CGT) Millennium Pipeline facilities in Kirkwood, NY. As a result of the inspection, it appears that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violations are: 1. §192.603 General Provisions. (b) Each operator shall keep records necessary to administer the procedures established under §192.605. CGT failed to keep adequate records necessary to administer the procedures established under §192.605(c) Abnormal operation. Specifically, the CGT Abnormal Operations Report (AOR) for Work Order Number (WO) B2293112 dated 6/13/2011 did not adequately document what caused the compressor station emergency shutdown (ESD). CGT Procedure 220.005.003 Version 6, effective 02232011, Paragraph 2.1.1 states...”Record a description to explain the Abnormal Operation (Required)”. The description recorded on WO B2293112 to explain the abnormal operation states “Station ESD between 10 AM 6/12/11 and 8 AM 6/13/11”. The description provided by CGT does not indicate what caused the emergency shutdown. Therefore CGT failed to keep records necessary to administer the procedures established under §192.605. NYSDPS commented on the inadequate AOR and requested and received a copy of the AOR during the July 2012 inspection.#

120131037_NOPV PCP PCO_12232013_text.pdf, page 21-2013-1037 2. §192.603 General Provisions. (b) Each operator shall keep records necessary to administer the procedures established under §192.605. CGT failed to produce to produce records to show that a capacity review required by §192.743(a) of each and every overpressure protection device had been done in 2011. CGT representatives stated during the inspection of the Corning Compressor Station that the capacity review is part of an undocumented consideration, and is only documented upon input from the local engineer that there were known changes to the pipeline. As of 12/17/2012 there had been no records provided by CGT to NYSDPS as requested for overpressure protection device capacity review documentation for 2011. 3. §192.603 General Provisions. (b) Each operator shall keep records necessary to administer the procedures established under §192.605. CGT failed to keep adequate records necessary to administer the procedures established under §192.605. Specifically, CGT Plan No._220.02.03_Sec 3.2.1 and 3.3.1 Effective 12/31/2011 states… “Field population density surveys shall be conducted annually on all pipelines to identify any changes in class location and HCAs. Ongoing surveys will also be conducted throughout the year by Operations, who will identify and document new structures using GPS coordinates and other data with Plan 200.02.01”. CGT could not produce records to substantiate that they conducted a field population density study in 2011. Therefore, CGT failed to keep records necessary to administer the procedures established under §192.605. Proposed Civil Penalty Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a related series of violations. For violations occurring prior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a related series of violations. The Compliance Officer has reviewed the circumstances and supporting documentation involved in the above probable violations and has recommended that you be preliminarily assessed a civil penalty of $24,400 as follows: Item number PENALTY 1 $24,400 Warning Items With respect to items 2 and 3, 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 this item. Failure to do so may result in additional enforcement action. Proposed Compliance Order With respect to item 1 pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Columbia Gas Transmission Corporation. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. 120131037_NOPV_PCP_PCO_12232013 Page 2 of 4#

120131037_NOPV PCP PCO_12232013_text.pdf, page 31-2013-1037 Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. All material you 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 explanation of why you believe the redacted information qualifies for confidential treatment under 5 U.S.C. 552(b). 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. Please submit all correspondence in this matter to Byron Coy, PE, Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, W. Trenton, NJ 08628. Please refer to CPF 1-2013-1037 on each document you submit, and please whenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed to Byron.Coy@dot.gov. Larger files should be sent on a CD accompanied by the original paper copy to the Eastern Region Office. Additionally, if you choose to respond to this (or any other case), please ensure that any response letter pertains solely to one CPF case number. Sincerely, Byron Coy, PE Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Cc: Kevin Speicher, NYSDPS Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Compliance Proceedings 120131037_NOPV_PCP_PCO_12232013 Page 3 of 4#

120131037_NOPV PCP PCO_12232013_text.pdf, page 41-2013-1037 PROPOSED COMPLIANCE ORDER Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Columbia Gas Transmission Corporation (CGT) a Compliance Order incorporating the following remedial requirements to ensure the compliance of CGT with the pipeline safety regulations: 1. 2. 3. In regard to Item Number 1 of the Notice pertaining to CGT failure to keep adequate records by not identifying what was the cause of the ESD activation, CGT is to perform an analysis to determine the cause of the ESD activation. CGT shall have 90 days from the receipt of a Final Order to complete the requirements for Item Number 1 of the Notice and forward the completed analysis to Byron Coy, PE, Director, Eastern Region, Pipeline and Hazardous Materials Safety Administration. It is requested (not mandated) that CGT maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Byron Coy, PE, Director, Eastern 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. 120131037_NOPV_PCP_PCO_12232013 Page 4 of 4#