{"operation":"document","citation":"CPF 120181011W","title":"EASTERN SHORE NATURAL GAS CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-05-14","effective_on":null,"summary":"CLOSED warning letter citing 192.709(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120181011w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120181011w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120181011w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120181011W","body":"Warning Letter involving EASTERN SHORE NATURAL GAS CO. PHMSA's enforcement data identifies the cited regulation as 192.709(c). The case was opened on 2018-05-14 and is reported as closed as of 2018-05-14. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120181011W_Warning Letter_05142018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120181011W/120181011W_Warning%20Letter_05142018.pdf\n\n120181011W_Warning Letter_05142018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120181011W/120181011W_Warning%20Letter_05142018_text.pdf\n\n120181011W_Warning Letter_05142018_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nMay 14, 2018\nMr. Steven Thompson\nSenior Vice President\nEastern Shore Natural Gas Company\n1110 Forrest Avenue\nSuite 201\nDover, DE 19904\nCPF 1-2018-1011W\nDear Mr. Thompson:\nFrom May 15, 2017 to June 22, 2017, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Eastern Shore Natural Gas Company’s (ESNG) pipeline system in Delaware, Maryland\nand Pennsylvania.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violation(s) are:\n1. § 192.709 Transmission lines: Record keeping.\nEach operator shall maintain the following records for transmission line for the\nperiods specified:\n(c) A record of each patrol, survey, inspection, and test required by subparts L and\nM of this part must be retained for at least 5 years or until the next patrol, survey,\ninspection, or test is completed, whichever is longer.\nESNG failed to adequately document that it inspected and tested each pressure relieving device in\na compressor station in accordance with § 192.739. Specifically, ESNG’s records did not\ndemonstrate that the unit override switch at the Delaware City compressor station was tested to\ndetermine its reliability of operation for the service in which it is employed, and that it controls\n\n\n\nCPF 1-2018-1011W\npressure in accordance with the pressure limits of § 192.201(a).\nSection 192.739(a) states:\n“(a) Each pressure limiting station, relief device (except rupture discs), and Pressure regulating\nstation and its equipment must be subjected at intervals not exceeding 15 months, but at least once\neach calendar year, to inspections and tests to determine that it is:\n(1) In good mechanical condition;\n(2) Adequate from the standpoint of capacity and reliability of operation for the service in\nwhich it is employed;\n(3) Except as provided in paragraph (b) of this section, set to control or relieve at the correct\npressure consistent with the pressure limits of § 192.201(a); and\n(4) Properly installed and protected from dirt, liquids, or other conditions that might prevent\nproper operation.”\nDuring the inspection, the PHMSA inspector requested records of performance tests for the unit\noverride (high pressure cutoff) switch at the Delaware City station. The unit override switch is the\nprimary overpressure protection device for the downstream piping supplied by the station\ncompression units.\nOn July 19, 2017, ESNG provided 2015-2016 records for the compression unit override switch at\nDelaware City station, and the procedure for the testing of these devices. The records showed that\nthe device was calibrated for appropriate span limits, and the ambient conditions were documented\nat the time of the test, but did not show the device was performance tested to function at the\nappropriate set pressures.\nSubsequently, ESNG provided a screen shot of the control panel display, Delaware City South\nCompressor Station Alarms, Overrides, and Shutdown Limits, which shows the settings for the\nexisting in-service compression units at Delaware City. The record showed discharge pressure\nlimit settings that are appropriate to protect the MAOP of the downstream pipeline, but did not\ndemonstrate that the device was tested to function at the set pressures shown on the panel display.\nESNG therefore failed to maintain adequate records of inspections and tests of each pressure\nrelieving device in a compressor station in accordance with § 192.739.\n2. § 192.709 Transmission lines: Record keeping.\n(c) A record of each patrol, survey, inspection, and test required by subparts L and\nM of this part must be retained for at least 5 years or until the next patrol, survey,\ninspection, or test is completed, whichever is longer.\nESNG failed to adequately document that it conducted a performance test of the emergency\nshutdown system at the Delaware City and Bridgeville compressor stations to determine that these\nsystems would function properly.\nDuring the inspection, the PHMSA inspector requested records for annual emergency shutdown\nsystem performance testing at Delaware City and Bridgeville stations. ESNG provided “Fire\n120181011W_Warning Letter_05142018_text\nPage 2 of 3\n\n\n\nCPF 1-2018-1011W\nSystem Inspection” records for 2014-2016. The records produced for examination did not show\nall of the elements of a successful ESD system performance test.\nThe records demonstrated that ESNG conducted individual device tests over multiple days with\nthe control panel in test mode. The records noted that the control loop for the panel key SESD\n(System Emergency Shut Down) was activated. There was no indication in the records provided\nthat any one trigger device was used to conduct a full system ESD performance test, in which the\nfire gates were observed to be fully closed and the station piping blown down.\nESNG therefore failed to maintain adequate records of inspections and tests of the emergency\nshutdown systems at the Delaware City and Bridgeville compressor stations.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$209,002 per violation per day the violation persists, up to a maximum of $2,090,022 for a related\nseries of violations. For violations occurring prior to November 2, 2015, the maximum penalty\nmay not exceed $200,000 per violation per day, with a maximum penalty not to exceed $2,000,000\nfor a related series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the item(s) identified in this letter.\nFailure to do so will result in Eastern Shore Natural Gas Company being subject to additional\nenforcement action.\nPlease be advised that all material you submit in response to this enforcement action is subject to\nbeing made publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\nNo reply to this letter is required. If you choose to reply, please submit all correspondence in this\nmatter to Robert Burrough, Director, PHMSA Eastern Region, 820 Bear Tavern Road, Suite 103,\nWest Trenton, NJ 08628. Please refer to CPF 1-2018-1011W on each document you submit, and\nwhenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed\nto robert.burrough@dot.gov. Larger files should be sent on a CD accompanied by the original\npaper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120181011W_Warning Letter_05142018_text\nPage 3 of 3","truncated":false,"body_characters":7836}