{"operation":"document","citation":"CPF 120190001M","title":"NORTHWESTERN CORPORATION — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-02-04","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190001m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190001m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190001m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120190001M","body":"Notice of Amendment involving NORTHWESTERN CORPORATION. PHMSA's enforcement data identifies the cited regulation as 192.12(e). The case was opened on 2019-02-04 and is reported as closed as of 2019-03-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120190001M_Closure Letter_03212019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190001M/120190001M_Closure%20Letter_03212019.pdf\n\n120190001M_Closure Letter_03212019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190001M/120190001M_Closure%20Letter_03212019_text.pdf\n\n120190001M_Notice of Amendment_02042019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190001M/120190001M_Notice%20of%20Amendment_02042019.pdf\n\n120190001M_Notice of Amendment_02042019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190001M/120190001M_Notice%20of%20Amendment_02042019_text.pdf\n\n120190001M_Operator Response to Notice_03062019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190001M/120190001M_Operator%20Response%20to%20Notice_03062019.pdf\n\n120190001M_Closure Letter_03212019_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nMarch 21, 2019\nMr. Curtis Pohl\nVice President Distribution Operations\nNorthwestern Corporation\n3010 W. 69th Street\nSioux Falls, SD 57108\nCPF 1-2019-0001M\nDear Mr. Pohl:\nFrom August 21-23, 2018, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of Title 49 of the United States Code\ninspected the Northwestern Corporation’s (NWC) procedures and records for the operation of\nthe Dry Creek Underground Natural Gas Storage Field (Dry Creek). The inspection was\nconducted at NWC’s office in Billings, Montana and the Dry Creek field located in a remote area\nsouth of Bridger and fifty-five (55) miles southwest of Billings, Montana.\nAs a result of the inspection, NWC was issued a Notice of Amendment (NOA) on February 4,\n2019. NWC responded on March 6, 2019, choosing not to contest the Notice. NWC submitted\ndocumentation showing it took certain actions to ensure compliance with the terms of the Notice.\nBased on our review of the documentation, it appears that the inadequacies outlined in this NOA\nhave been corrected.\nThis letter is to inform you no further action is necessary, and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n120190001M_Notice of Amendment_02042019_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nFebruary 4, 2019\nMr. Curtis Pohl\nVice President Distribution Operations\nNorthwestern Corporation\n3010 W. 69th Street\nSioux Falls, SD 57108\nCPF 1-2019-0001M\nDear Mr. Pohl:\nFrom August 21-23, 2018, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected the\nNorthwestern Corporation (NWC) procedures and records for the operation of the Dry Creek\nUnderground Natural Gas Storage Field (Dry Creek). The inspection was conducted at NWC’s\noffice in Billings, Montana and the Dry Creek field located in a remote area south of Bridger and\n55 miles southwest of Billings, Montana.\nBased on the results of the inspection, PHMSA has identified the apparent inadequacy found\nwithin the NWC.’s Underground Natural Gas Storage (UNGS) procedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\n(e) Operators of underground gas storage facilities must establish and follow written\nprocedures for operations, maintenance, and emergencies implementing the\nrequirements of API RP 1170 and API RP 1171, as required under this section,\nincluding the effective dates as applicable, and incorporate such procedures into\ntheir written procedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nNWC’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1170 and API RP 1171 were inadequate. Specifically, NWC did not establish a written\nBlowout Contingency Plan (BCP) as required in API RP 1171, Section 10.6.3, for the wells at\nDry Creek.\n\n\n\nCPF 1-2019-0001M\nAPI RP 1171, Section 10.6.3 Blowout Contingency Plan, states:\nThe operator shall have a blowout contingency plan in place.\nA blowout contingency plan is company specific and should identify the procedures, equipment,\nand personnel needed to avoid or respond to a loss of well control situation.\nNOTE The operator can consult with well control experts in developing a blowout contingency\nplan.\nNWC discovered that after an insurance broker change, no formal BCP agreement was included\nwith its new insurance policy. Thus, NWC did not have a BCP, as required by API RP 1171,\nSection 10.6.3, covering the wells in Dry Creek.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190. 206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings. Please refer to this document and note the response options. Be advised that all\nmaterial 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).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n60 days of receipt of this Notice. This period may be extended by written request for good cause.\nOnce the inadequacies identified herein have been addressed in your amended procedures, this\nenforcement action will be closed.\nIt is requested (not mandated) that Northwestern Corporation maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Robert Burrough, Director,\nPHMSA Eastern Region, 840 Bear Tavern Road, Suite 300, West Trenton, New Jersey 08628.\nPlease refer to CPF 1-2019-0001M on each document you submit, and whenever possible\nprovide a signed PDF copy in electronic format. Smaller files may be emailed to\nrobert.burrough@dot.gov. Larger files should be sent on a CD accompanied by the original paper\ncopy to the Eastern Region Office.\n120190001M_Notice of Amendment_02042019_text\nPage 2 of 3\n\n\n\nCPF 1-2019-0001M\nAdditionally, if you choose to respond to this (or any other case), please ensure that any response\nletter pertains solely to one CPF case number.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n120190001M_Notice of Amendment_02042019_text\nPage 3 of 3","truncated":false,"body_characters":7753}