# UGI ENERGY SERVICES — Warning Letter

- **operation:** document
- **citation:** CPF 120153001W
- **title:** UGI ENERGY SERVICES — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2015-02-25
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 193.2605(b), 193.2801.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-120153001w.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-120153001w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-120153001w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/120153001W
**body:**

Warning Letter involving UGI ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulations as 193.2605(b),  193.2801. The case was opened on 2015-02-25 and is reported as closed as of 2015-02-25. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

120153001W_Warning Letter_02252015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120153001W/120153001W_Warning%20Letter_02252015.pdf

120153001W_Warning Letter_02252015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120153001W/120153001W_Warning%20Letter_02252015_text.pdf

120153001W_Warning Letter_02252015_text.pdf

U.S. Department Of Transportation Pipeline and 609.989.2171
Hazardous Materials
Safety Administration
820 Bear Tavern Road, Suite 103
West Trenton, NJ 08628
WARNING LETTER
OVERNIGHT EXPRESS DELIVERY
February 25, 2015
Mr. Joseph Hartz
Vice President Asset Management
UGI Energy Services
1 Meridian Blvd
Wyomissing, PA 19610
CPF 1-2015-3001W
Dear Mr. Hartz:
During the week of September 22, 2014, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code
inspected your Temple II interstate LNG facility in Reading, PA.
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. §193.2801 Fire protection.
Each operator must provide and maintain fire protection at LNG plants according
to sections 9.1 through 9.7 and section 9.9 of NFPA 59A (incorporated by reference,
see Sec. 193.2013). However, LNG plants existing on March 31, 2000, need not
comply with provisions on emergency shutdown systems, water delivery systems,
detection systems, and personnel qualification and training until September 12,
2005.
UGI failed to maintain fire protection equipment at LNG plants according to sections 9.1 through
9.7 and section 9.9 of NFPA 59A (incorporated by reference, see Sec. 193.2013). NFPA 59A
Section 9.5 states in part that “These extinguishers shall be provided and maintained in
accordance with NFPA 10, Standard for Portable Fire Extinguishers.” NFPA 10 states in part
that “Fire extinguishers shall be inspected when initially placed in service and thereafter at
approximately 30-day intervals.”



1-2015-3001W
During the inspection, a PHMSA inspector reviewed UGI’s fire extinguisher inspection records
for 2012, 2013 and 2014. The records show that UGI maintained quarterly records in 2012 and
2013 and did not begin maintaining monthly records until February 2014.
In addition, an e-mail from UGI dated 10/6/2014 states in part “The error in the frequency of
inspecting our portable fire extinguisher was not corrected till February 2014. Prior to this time,
the extinguishers were only visually inspected on a quarterly interval, consistent with the
facility’s hazard detection.”
Therefore, UGI did not maintain monthly fire extinguisher inspection records for UGI’s Temple
II tank facility in accordance with §193.2801.
2. §193.2605 Maintenance procedures.
(b) Each operator shall follow one or more manuals of written procedures for the
maintenance of each component, including any required corrosion control. The
procedure must include:
(1) The details of the inspections or tests determined under paragraph (a) of this
section and their frequency of performance; and
(2) A description of other actions necessary to maintain the LNG plant according to
the requirements of this subpart.
UGI failed to follow one or more manuals of written procedures for the maintenance of each
component. Specifically, UGI failed to follow its written procedure, 16.5 MP-1001 Testing
Pressure Relief Valves (Revision: 4, Issued: 1-6-2014).
During the inspection, a PHMSA inspector reviewed the referenced relief valve procedure,
which states in part in paragraphs 6 through 8:
6. Record the relief valve set pressure
7. Record the reseating pressure
8. Log the test results, time and date for each valve
The PHMSA inspector reviewed UGI’s “Tank and Boiloff Relief Valves” records from 2012
through 2014. None of the information required by the procedure was documented in the
records.
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. Also, for LNG facilities, an additional penalty of not more than
$50,000 for each violation may be imposed. 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 correct the
items identified in this letter. Failure to do so will result in UGI Energy Services being subject to
additional enforcement action.
120153001W_WL_02252015 Page 2 of 3



1-2015-3001W
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
1-2015-3001W. Be advised that all material you submit in response to this enforcement action is
subject to being 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).
Sincerely,
Byron Coy, PE
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
120153001W_WL_02252015 Page 3 of 3
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