RICHMOND, CITY OF — Warning Letter

120170003W_Warning Letter_07282017_text.pdf, page 1Official PDFWARNING LETTER OVERNIGHT EXPRESS DELIVERY July 28, 2017 Mr. Robert Steidel Director, Department of Public Utilities City of Richmond 730 East Broad Street Richmond, VA 23219 CPF 1-2017-0003W Dear Mr. Steidel: On Septemper 22, 2016, an inspector from the Virginia State Corporation Commission (VA SCC), acting as an Agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected the City of Richmond’s (City) records in Richmond, Virginia. As a result of the inspection, it is alleged that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violation(s) are: 1. §192.605 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted. The City failed to follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. Specifically, the City failed to follow its manual for conducting residential leakage surveys.#

120170003W_Warning Letter_07282017_text.pdf, page 2CPF 1-2017-0003W During the inspection, the VA SCC inspector reviewed the City’s Volume II Procedures Manual, Chapter 6, Section I, Leak Survey, Effective date 1/13/12 (Procedure). The Procedure stated in part: I. Policy B. Residential Surveys (all other areas of the gas distribution system) shall be conducted with leak detector equipment as frequently as necessary but at least once every 3 years at intervals not exceeding 39 months. The VA SCC inspector reviewed leak survey records and discovered 26 map pages that were not leak surveyed at least every 3 years at intervals not exceeding 39 months. Table 1, created by PHMSA based on the information provided, summarizes the records with time between leak survey exceeding 39 months. Table 1: Dates of performed Leak Surveys exceeding 39 months Map Page Leak Survey Date Leak Survey Date Duration in days >39 months 403NE Installed 2005 2013 >1462 486NE 06/01/2010 12/23/2014 478 486SE 06/01/2010 12/23/2014 478 487NE 05/13/2010 12/09/2014 483 487NW 05/13/2010 12/16/2014 490 487SE 05/04/2010 12/09/2014 492 487SW 05/10/2010 12/09/2014 486 488NE 05/05/2010 05/28/2014 296 488NW 05/05/2010 05/21/2014 289 488SE 05/04/2010 05/21/2014 290 488SW 04/08/2010 05/22/2014 318 489NE 01/21/2010 05/27/2014 401 489SE 01/26/2010 02/12/2014 292 490NE 01/26/2010 02/10/2014 290 490SE 01/28/2010 12/02/2014 583 490SW 01/28/2010 11/26/2014 577 491NE 01/28/2010 12/04/2014 585 491SE 01/19/2010 02/14/2014 301 492NE 02/01/2010 02/10/2014 285 492NW 02/03/2010 07/07/2014 430 492SE 02/01/2010 07/02/2014 427 492SW 02/01/2010 07/07/2014 432 493NE 02/03/2010 02/25/2014 298 493NW 02/02/2010 12/17/2014 594 493SE 02/02/2010 02/25/2014 299 493SW 02/01/2010 02/25/2014 300 120170003W_Warning Letter_07282017_text Page 2 of 3#

120170003W_Warning Letter_07282017_text.pdf, page 3CPF 1-2017-0003W The City responded on October 13, 2016 to VA SCC’s Notice of Investigation. The City stated in part “The City did not follow the O&M procedure and failed to survey 26 residential map grids during the year 2013. The City discovered this finding in 2014 during our initial phase of our date quality assurance effort prior to uploading the data to the new compliance scheduling software…” Therefore, the City failed to follow a manual of written procedures by not performing leak survey activities at least once every 3 years at intervals not exceeding 39 months on 26 map pages requiring Residential surveys. As of April 27, 2017, under 49 U.S.C. §60122 and 49 CFR §190.223, you are subject to a civil penalty not to exceed $209,002 per violation per day the violation persists up to a maximum of $2,090,022 for a related series of violations. 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 item identified in this letter. Failure to do so will result in the City being subject to additional enforcement action. No reply to this letter is required. If you choose to reply, please submit all correspondence in this matter to Robert Burrough, Acting Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103, West Trenton, NJ 08628. Please refer to CPF 1-2017-0003W on each document you submit, and whenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent on a CD accompanied by the original paper copy to the Eastern Region Office. 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, Robert Burrough Acting Director, Eastern Region Pipeline and Hazardous Materials Safety Administration 120170003W_Warning Letter_07282017_text Page 3 of 3#