{"operation":"document","citation":"CPF 120190004","title":"RICHMOND, CITY OF — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"current","official":true,"published_on":"2019-04-22","effective_on":null,"summary":"OPEN notice of probable violation citing 192.465(a), 192.491(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190004.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190004.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190004","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120190004","body":"Notice of Probable Violation involving RICHMOND, CITY OF. PHMSA's enforcement data identifies the cited regulations as 192.465(a),  192.491(a). The case was opened on 2019-04-22 and is reported as open. Proposed civil penalty: $80,500. Assessed civil penalty: $0. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120190004_Consent Agreement and Order_04222020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190004/120190004_Consent%20Agreement%20and%20Order_04222020.pdf\n\n120190004_Consent Agreement and Order_04222020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190004/120190004_Consent%20Agreement%20and%20Order_04222020_text.pdf\n\n120190004_NOPV PCP PCO_04222019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190004/120190004_NOPV%20PCP%20PCO_04222019.pdf\n\n120190004_NOPV PCP PCO_04222019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190004/120190004_NOPV%20PCP%20PCO_04222019_text.pdf\n\n120190004_Operator Response to Notice_06202019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190004/120190004_Operator%20Response%20to%20Notice_06202019.pdf\n\n120190004_NOPV PCP PCO_04222019_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS DELIVERY\nApril 22, 2019\nMr. Robert Steidel\nDirector, City of Richmond\nDepartment of Public Utilities\n730 East Broad Street\nRichmond, VA 23219\nCPF 1-2019-0004\nDear Mr. Steidel:\nFrom February 8, 2017 to October 8, 2018, inspectors from the Virginia State Corporation\nComission (VA SCC), acting as an Agent for the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected the City of Richmond’s (City) facilities and records in Richmond,\nVA.\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. § 192.465 External corrosion control: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at least once each\ncalendar year, but with intervals not exceeding 15 months, to determine whether\nthe cathodic protection meets the requirements of §192.463. However, if tests at\nthose intervals are impractical for separately protected short sections of mains or\ntransmission line not in excess of 100 feet (30 meters), or separately protected\nservice line, these pipelines may be surveyed on a sampling basis. At least 10\npercent of these protected structures, distributed over the entire system must be\nsurveyed each calendar year, so that the entire system is tested in each 10-year\nperiod.\n\n\n\nCPF 1-2019-0004\nThe City failed to survey at least 10 percent of its separately protected structures, distributed over\nthe entire system each calendar year, with a different 10 percent checked each subsequent year, so\nthat the entire system is tested in each 10-year period. Specifically, the City failed to monitor for\nexternal corrosion control at two pot drips located at 5900 Derrymore Court and 7548 Prairie Road,\nRichmond, VA, and at two isolated steel service lines located at 1703 and 1705 Windingridge\nPlace, Richmond, VA.\nDuring an inspection in February of 2017, a VA SCC inspector reviewed the City’s Leakage\nInspection-Location Records #578766 and #580156. Leak #578766 was located on a pot drip near\n5900 Derrymore Court, which was installed in 1991. Leak #580156 was located on a pot drip near\n7548 Prairie Road, which was installed in 1987. The two steel pot drips were cathodically protected\nby anodes, and each was connected to a two-inch plastic distribution main pipeline. The pot drips\nwere isolated short sections not in excess of 100 feet and were to be surveyed as part of the City’s\n10 percent monitoring program.\nWhen requested, the City was unable to provide cathodic protection monitoring survey records of\nthe pot drips. The VA SCC issued a Notice of Investigation (NOI) to the City on February 15,\n2017. In its response to the NOI on February 28, 2017, the City acknowledged failure to monitor\nthe two pot drips under its 10 percent monitoring program. The City’s response stated in part:\nThe pot drip located on 7548 Prairie Road… was never keyed into the\nGIS database, which resulted in our failure to monitor this particular\npot drip under the ten percent monitoring program.\n…\nPot drip located on Derrymore Court…the City failed to monitor this\nparticular pot drip under our ten percent monitoring program.\nDuring an inspection in May of 2018, a VA SCC inspector observed the City of Richmond\nperform cathodic protection reads on its “Windingridge Road Cathodic Protection Survey #06-\n014.” The VA SCC inspector identified two isolated steel service lines at 1703 and 1705\nWindingridge Place. Both service lines were cathodically protected and had acceptable readings\nbut, according to the City, had never been monitored as part of the City's isolated short section\nlist. These service lines were installed in 1974.\nThe VA SCC issued an NOI to the City on June 11, 2018 in regard to the May 2018 inspection.\nIn its response to the NOI on June 21, 2018, the City acknowledged failure to monitor the two\nsteel service lines under its 10 percent monitoring program. The City’s response stated in part:\nDuring the inspection, the commission observed a City technician\nmonitoring two steel service line at 1703 & 1705 Windingridge Place.\nWhile both were found to be cathodic protected, they were later\ndetermined to be isolated short sections (under 100' in length) and\nwere not in City's 10 percent monitoring database.\nThe City is aware that the 10 percent monitoring database does not\nfully reflect accurate number of services in our system. The City is\n120190004_NOPV PCP PCO_04222019_text Page 2 of 6\n\n\n\nCPF 1-2019-0004\nworking diligently everyday on improving the knowledge of our\ninfrastructure in accordance to City's Distribution Integrity\nManagement Program Section 5.0.\nTherefore, the City failed to monitor two separately protected pot drips, installed on distribution\nmains, and two isolated steel service lines so that its entire system is tested in each 10-year period,\nas required by § 192.465(a).\nThis violation is a repeat of violations found in CPF # 1-2015-0008 Item # 1, and CPF # 1-2013-\n0003 Item # 1.\n2. § 192.491 Corrosion control records.\n(a) Each operator shall maintain records or maps to show the location of cathodically\nprotected piping, cathodic protection facilities, galvanic anodes, and neighboring\nstructures bonded to the cathodic protection system. Records or maps showing\nstated number of anodes, installed in a stated manner or spacing, need not show\nspecific distances to each buried anode.\nThe City failed to maintain records or maps to show the location of cathodically protected piping.\nSpecifically, the City failed to maintain accurate construction records or maps of its cathodically\nprotected pot drip near 7548 Prairie Road, Richmond, VA.\nDuring the inspection, the VA SCC inspector reviewed the City’s Leakage Inspection-Location\nRecord #580156 in comparison with the City’s mapping system. Leak #580156 was located on a\npot drip near 7548 Prairie Road. The steel pot drip was cathodically protected by an anode, and\nwas connected to a two-inch plastic distribution main pipeline. The pot drip was an isolated short\nsection not in excess of 100 feet and was to be surveyed as part of the City’s 10 percent monitoring\nprogram. The pot drip location was not identified in the City’s mapping system.\nThe City acknowledged failure to maintain accurate construction records or maps. The City’s post\ninspection response stated in part:\nThe pot drip located on 7548 Prairie Road was not in our GIS\ndatabase due to the inaccurancy of the ‘As Built’ drawings\nsubmitted by our New Construction Department.\nTherefore, the City failed to maintain records or maps to show the location of its cathodically\nprotected pot drip in the area of 7548 Prairie Road, Richmond, VA.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$213,268 per violation per day the violation persists, up to a maximum of $2,132,679 for a related\nseries of violations. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the\nmaximum penalty may not exceed $200,000 per violation per day, with a maximum penalty not to\nexceed $2,000,000 for a related series of violations. The Compliance Officer has reviewed the\n120190004_NOPV PCP PCO_04222019_text Page 3 of 6\n\n\n\nCPF 1-2019-0004\ncircumstances and supporting documentation involved in the above probable violation(s) and has\nrecommended that you be preliminarily assessed a civil penalty of $80,500 as follows:\nItem number PENALTY\n1 $80,500\nProposed Compliance Order\nWith respect to item number 2 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous\nMaterials Safety Administration proposes to issue a Compliance Order to City of Richmond.\nPlease refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nPlease submit all correspondence in this matter to Robert Burrough, Director, PHMSA Eastern\nRegion, 840 Bear Tavern Road, Suite 300, West Trenton, New Jersey 08628. Please refer to\nCPF 1-2019-0004 on each document you submit, and whenever possible provide a signed PDF\ncopy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger files\nshould be sent on a USB flash drive accompanied by the original paper copy to the Eastern Region\nOffice.\n120190004_NOPV PCP PCO_04222019_text Page 4 of 6\n\n\n\nCPF 1-2019-0004\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\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Compliance Proceedings\n120190004_NOPV PCP PCO_04222019_text Page 5 of 6\n\n\n\nCPF 1-2019-0004\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to City of Richmond a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of City of Richmond\nwith the pipeline safety regulations:\n1. In regard to Item Number 2 of the Notice pertaining to § 192.491, the City shall\nidentify all cathodically protected pot drips and verify they are incorporated into\nthe City’s 10 percent monitoring program by taking the following actions:\na. Within 60 days of issuance of the Final Order, the City shall develop and\nprovide to PHMSA a plan to:\ni. identify cathodically protected pot drips in the City’s mapping system.\nii. identify cathodically protected pot drips in the City’s ’As-Built’\ndrawings that have been revised during the previous four years of the\ndate of issuance of this Final Order.\niii. identify cathodically protected pot drips on the City’s leak reports\nduring the previous four years of the date of issuance of this Final Order.\nb. Within 180 days of issuance of the Final Order, the City shall provide PHMSA\nverification pot drips in the City’s mapping system have been compared to ‘As-\nBuilt’ drawings and leak reports, and all discrepancies corrected.\n2. It is requested (not mandated) that City of Richmond maintain documentation of\nthe safety improvement costs associated with fulfilling this Compliance Order and\nsubmit the total to Robert Burrough, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n120190004_NOPV PCP PCO_04222019_text Page 6 of 6\n\n120190004_Consent Agreement and Order_04222020_text.pdf\n\nApril 22, 2020\nVIA EMAIL TO: calvin.farr@richmondgov.com\nMr. Calvin D. Farr, Jr.\nDirector, City of Richmond\nDepartment of Public Utilities\n900 East Broad Street, Room 115\nRichmond, Virginia 23219\nCPF No.: 1-2019-0004\nDear Mr. Farr:\nEnclosed please find a copy of the fully-executed Consent Agreement and Order issued in the\nabove-referenced case. It contains terms of settlement pursuant to 49 C.F.R. § 190.219 and\nincludes a work plan for the development and implementation of a two-phase project under the\nCity of Richmond’s Distribution Integrity Management Program.\nWhen the terms of the work plan have been completed, as determined by the Director, Eastern\nRegion, this enforcement action will be closed. The effective date of this agreement is April 22,\n2020. Service of the Consent Agreement and Order by electronic mail is deemed effective upon\nthe date of transmission as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure: Consent Agreement and Order\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\nMs. Linda Daugherty, Deputy Associate Administrator for Field Operations, PHMSA\nMr. David Kearney, Senior Assistant City Attorney, david.kearney@richmondgov.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, DC 20590\nIn the Matter of )\nCity of Richmond, Virginia, ) CPF No. 1-2019-0004\na municipal corporation, )\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT AND ORDER\nFrom February 8, 2017 to October 8, 2018, pursuant to Chapter 601 of 49 United States Code,\ninspectors from the Virginia State Corporation Commission (VA SCC), acting as agents for the\nPipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), inspected the City of Richmond’s (the City or Respondent) pipeline facilities in\nRichmond, Virginia. The City’s pipeline facilities consist of more than 1900 miles of\ndistribution mains and eight gate stations to supply gas at necessary pressures.\nAs a result of this inspection, the Director, Eastern Region, Office of Pipeline Safety (Director),\nissued to Respondent, by letter dated April 22, 2019, a Notice of Probable Violation, Proposed\nCivil Penalty, and Proposed Compliance Order (Notice). A copy of the Notice is attached hereto as\nAppendix A. In accordance with 49 C.F.R. §190.207, the Notice proposed finding that\nRespondent had committed two violations of 49 C.F.R. Part 192 and proposed assessing a civil\npenalty of $80,500 for the alleged violation of 49 C.F.R. § 192.465(a) (Item 1). The City shall\naddress Item 2, a violation of 49 C.F.R. § 192.491(a), through the proposed compliance actions\nincluded in the Notice (“Proposed Compliance Order”), and Item 2 is not addressed in the\nattached Work Plan. The Director grants the City’s request for additional time to complete the\nproposed compliance actions with respect to Item 2.\nThe City responded to the Notice by letter dated June 20, 2019 (Response). The Response\nproposed to resolve Item 1 of this matter via an administrative consent agreement requiring the\nCity to expend a minimum of $1,575,556, to develop and implement a two-phase project under the\nCity’s Distribution Integrity Management Program (DIMP). The City proposes to add additional\nmanpower to survey and identify all coated steel services in the City’s distribution system,\ndetermine which steel services or pot drips are missing from the City’s database, to temporarily\nadd these newly identified missing services to the City’s ten percent program, and to monitor\nthose services accordingly. The City will replace all services with low readings with\npolyethylene pipe once they are located. The City will complete the project within seven years.\n\n\n\nCPF No. 1-2019-0004\nPage 2\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of Respondent and\nPHMSA (collectively, the Parties), the Parties hereby agree as follows:\nA. General Provisions.\n1. Respondent acknowledges that its pipeline system is subject to the jurisdiction of\nthe federal Pipeline Safety Laws, 49 U.S.C. 60101, et seq., and the regulations and administrative\norders issued thereunder. As used in this Consent Agreement and Order (Agreement), the terms\n“pipeline system” and “pipeline facility” shall be defined as in 49 C.F.R. Part 192. Respondent\nacknowledges that it received proper notice of PHMSA’s action in this proceeding and that the\nNotice states claims upon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and\nthe regulations and orders issued thereunder.\n2. Respondent consents to the issuance of this Agreement and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice or the validity of this Agreement, including all rights to\nadministrative or judicial hearings, reviews, or appeals.\n3. This Agreement shall apply to and be binding upon PHMSA and Respondent, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all City officers, employees, agents, and successors-in-\ninterest whose duties reasonably might include compliance with this Agreement.\n4. This Agreement constitutes the final, complete, and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement, and\nthe Parties acknowledge that there are no representations, agreements, or understandings relating\nto the settlement other than those expressly contained in this Agreement and its appendices.\n5. Nothing in this Agreement affects or relieves the City of its responsibility to\ncomply with all applicable requirements of the federal Pipeline Safety Laws, 49 U.S.C. § 60101,\net seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA’s right of access, entry, inspection, and information-gathering or its authority to bring\nany enforcement action against Respondent pursuant to the federal Pipeline Safety Laws, the\nregulations and orders issued thereunder, or any other provision of federal or state law.\n6. This Agreement does not waive or modify any federal, state, or local laws or\nregulations that are applicable to the City or its pipeline system. This Agreement is not a permit,\nor a modification of any permit, under any federal, state, or local laws or regulations. Respondent\nremains responsible for achieving and maintaining compliance with all applicable federal, state,\nand local laws, regulations and permits.\n7. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not a party to this Agreement. The U.S. Department of Transportation (DOT) is not liable\nfor any injuries or damages to persons or property arising from acts or omissions of Respondent\nor its officers, employees, agents, or successors-in-interest in carrying out the work required by\nthis Agreement.\n\n\n\nCPF No. 1-2019-0004\nPage 3\n8. The Parties agree that the facts as alleged in the Notice are true and correct and\nmay be considered by PHMSA to be a prior offense in any future PHMSA enforcement action\ntaken against the City.\n9. Respondent agrees to complete the corrective actions specified in Section B\n(Additional Work to be Performed) of this Agreement.\n10. Respondent agrees that the activities described in Section B of this Agreement, and\nin all work plans and schedules incorporated thereunder, are not required by any federal, state, or\nlocal law or regulation and do not include actions which Respondent would likely be required to\nperform:\na. as injunctive relief, including as a mitigation project, in the instant case;\nb. as injunctive relief in any other existing legal action initiated by PHMSA or\nany other regulatory agency against Respondent;\nc. as part of an existing settlement or order in another legal action; or\nd. under any other federal, state, or local requirement.\nB. Additional Work to be Performed.\n11. Respondent agrees to perform the actions set forth in the Work Plan, incorporated\nherein as Appendix B to this Agreement. Respondent will complete the actions described in\nPart 2 of the Work Plan (General Information and Proposed Action Description) and will adhere\nto the schedule set forth in Part 3 of the Work Plan (Project Schedule).\n12. Respondent agrees to revise the Work Plan as necessary to incorporate new\ninformation obtained during the evaluations and remedial activities performed under the Work\nPlan. Respondent shall submit any such plan revisions to the Director for prior approval. The\nDirector may approve Work Plan revision elements incrementally.\n13. The Director may grant an extension of time for completion of any of the work to\nbe performed under this Section B (Additional Work to be Performed) upon Respondent’s timely,\nwritten request that demonstrates both good cause for an extension and provides sufficient detail\nto enable the Director to evaluate Respondent’s request.\n14. Respondent agrees to maintain documentation of the costs associated with\nimplementation of the Work Plan and agrees to make this information available to PHMSA upon\nrequest.\nC. Review and Approval Process.\n15. With respect to any submission by the City under Section B (Additional Work to\nbe Performed) of this Agreement that requires the approval of the Director, the Director may:\n(a) approve the submission, in whole or in part; (b) disapprove the submission on specified\nconditions; (c) disapprove the submission, in whole or in part; or (d) undertake any combination\n\n\n\nCPF No. 1-2019-0004\nPage 4\nof the foregoing. In the event of approval in whole, in part, or upon conditions, the City will\nproceed to take all actions required by the submission as modified by the Director, subject to\nRespondent’s right to invoke the procedures in Section D (Dispute Resolution) with respect to any\nconditions identified by the Director. In the event that the Director does not approve all or any\nportion of a submission, the Director will provide the City with a written notice of the\ndeficiencies. Respondent will correct all deficiencies within the time specified by the Director and\nresubmit it for acceptance. If Respondent fails to correct the specified deficiencies, the Director\nmay invoke the dispute resolution process provided in Section D below.\nD. Dispute Resolution.\n16. The Director and Respondent will attempt to informally resolve any disputes\narising under this Agreement. If the City and the Director are unable to informally resolve the\ndispute within 15 business days, Respondent may request in writing, within 10 business days, a\nwritten determination resolving the dispute by the Associate Administrator for Pipeline Safety,\nPHMSA. Along with its request, Respondent will provide the Associate Administrator with all\ninformation Respondent believes is relevant to the dispute. If the request is submitted as\nprovided herein, the Associate Administrator will issue a written determination that shall\nconstitute final agency action. The existence of a dispute and PHMSA’s consideration of\nmatters placed in dispute shall not excuse, toll, or suspend any term or timeframe for completion\nof any work to be performed under this Agreement during the pendency of the dispute resolution\nprocess, except as agreed by the Regional Director or the Associate Administrator in writing.\nE. Enforcement.\n17. This Agreement, including all plans and schedules incorporated by reference, is\nsubject to all enforcement authorities available to PHMSA under 49 U.S.C. §60101, et seq., and\n49 C.F.R. Part 190, including administrative civil penalties under 49 U.S.C. §60122, of up to\n$200,000 per violation for each day the violation continues and referral of the case to the\nAttorney General for judicial enforcement, if PHMSA determines that Respondent is not\ncomplying with the terms of this Agreement in accordance with determinations made by the\nDirector, or if appealed, in accordance with decisions of the Associate Administrator. The\nmaximum civil penalty amounts are adjusted annually for inflation. See, e.g., Pipeline Safety:\nInflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017). All\nother work plans and associated schedules developed under Section B shall be automatically\nincorporated into this Agreement and are enforceable in the same manner.\nF. Civil Penalties.\n18. PHMSA agrees to withdraw the proposed civil penalty for Item 1 in the Notice, in\nexchange for completion of the Project Schedule outlined in Part 3 of the Work Plan.\n19. If the Work Plan is not implemented within the timeframe contemplated in the\nProject Schedule, subject to any extensions approved by the Director, PHMSA reserves the right\nto take further enforcement action, including assessment of the civil penalty proposed in the\nNotice.\n\n\n\nCPF No. 1-2019-0004\nPage 5\nG. Miscellaneous.\n20. Respondent agrees to maintain records demonstrating compliance with all\nrequirements of this Agreement for a period of at least five years following completion of all\nwork to be performed. PHMSA and the VA SCC will have the right to inspect the records and\nfacilities of the City, or any contractor, agent, or successor-in-interest thereof, upon reasonable\nnotice, to confirm that the compliance terms of this Agreement are being undertaken in\nconformity with the terms of this Agreement.\n21. Except as otherwise provided herein, this Agreement may be modified only by the\nmutual agreement of the Parties as set forth in writing and signed by the Parties.\n22. Each undersigned representative of the Parties certifies that he or she is fully\nauthorized by the party represented to enter into the terms and conditions hereof and to execute\nand legally bind that party to it.\n23. Respondent certifies that it is not a party to any open federal financial assistance\ntransaction that is funding or could fund the same activities described in this Agreement,\nincluding all activities described in the Work Plan or any other incorporated plan or schedule.\nRespondent further certifies that it has inquired of City departments and of any parties acting on\nthe behalf of the City whether they are a party to any open federal financial assistance transaction\nthat is funding or could fund the same activities described in this Agreement, and has been\ninformed by said parties that they are not subject to such a transaction.\nH. Effective Date and Term.\n24. The “Effective Date,” as used herein, is the date on which this Agreement is\nsigned by both Respondent and PHMSA. Unless otherwise specified, all deadlines for actions\nrequired by the Agreement run from the Effective Date.\nI. Termination.\n25. This Agreement will terminate upon the completion of all terms set forth in\nSection B (Additional Work to Be Performed), as determined by the Director. Respondent may\nrequest, and PHMSA will provide, written confirmation of the termination of this Agreement.\nNothing in this Agreement prevents Respondent from completing any of the obligations earlier than\nthe deadlines provided for herein.\n\n\n\nCPF No. 1-2019-0004\nPage 6\nThe Parties hereby agree to all conditions and terms of this Agreement:\nFor PHMSA: For the City of Richmond, Virginia:\n_______________________________\nAlan K. Mayberry\nAssociate Administrator for\nPipeline Safety, PHMSA\n_________________________________\nCalvin D. Farr, Jr.\nDirector of Public Utilities\nCity of Richmond, VA\nApproved as to form:\nApril 22, 2020\n_______________________________\nDate Issued\n_________________________________\nDavid B. Kearney\nSenior Assistant City Attorney\nCity of Richmond\n\n\n\nAPPENDIX A\n\n\n\nAPPENDIX B\n\n\n\nWork Plan for the Development and Implementation of a\nSteel Services Identification and Replacement Program\nCity of Richmond, Virginia\nCPF 1-2019-0004\n1. Introduction.\nThe U.S. Department of Transportation's Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) has allowed the City of Richmond, Virginia (the City) the opportunity\nto perform the following supplemental safety actions as an alternative to paying a proposed civil\npenalty for a violation of the pipeline safety regulations in 49 C.F.R. Part 192. The City is to\nperform these risk-mitigating safety actions relative to the alleged violation to enhance the\ncontinued safe operations of the City’s distribution of natural gas and to provide value that\noffsets the proposed civil penalties. PHMSA and the City agree that the actions set forth below\nprovide safety and/or environmental value beyond the enforcement of the proposed civil penalty,\nand the City has entered into a Consent Agreement and Order (Agreement) with PHMSA to\nperform the proposed actions within agreed-upon timeframes.\n2. General Information and Proposed Action Description.\nPHMSA’s Notice of Probable Violation in CPF 1-2019-0004 identified two probable violations\nand included a proposed civil penalty for Item 1.\nItem 1\nIn Item 1, PHMSA alleged that the City failed to survey at least ten percent of its separately-\nprotected structures, distributed over the entire system each calendar year with a different ten\npercent checked each subsequent year, so that the entire system is tested in each ten-year period.\nSpecifically, the City failed to monitor for external corrosion control at two pot drips located at\n5900 Derrymore Court and 7548 Prairie Road, Richmond, VA, and at two isolated steel service\nlines located at 1703 and 17025 Windingridge Place, Richmond, VA.\nProposed Action for Item 1\nThe City plans to increase the personnel who will be responsible, under the City’s DIMP\nProgram, for surveying and identifying all coated steel services, valves, and pot drips in the\ndistribution system, determining which steel services, valves, or pot drips are missing from the\nCity’s database, temporarily adding the missing services to the City’s ten percent monitoring\nprogram, and monitoring accordingly. The City also will replace all steel services, valves or pot\ndrips with low readings with polyethylene pipe or fittings.\nThe City has determined that the best remedial action aligned with the probable violation of Item\n1 is for the City to have the Richmond Gas Works Corrosion contractor provide resources to\npatrol the City’s natural gas distribution system to locate all steel services, valves and pot drips,\nwhich are not currently in the City’s geographic information system (GIS), as part of the City’s\nten percent monitoring program. This project will require a minimum of two Corrosion Testers\nto locate steel pipelines not in the City’s ten percent program and an as-built drawing of the\n\n\n\nnewly identified steel services, valves, or pot drip will be made and forwarded to the Department\nof Public Utilities GIS section. The City’s GIS Technician shall enter this information in the\nGIS database, and the Richmond Gas Works Corrosion section shall monitor these pipelines\nunder the City’s ten percent program. The Richmond Gas Works Engineer Principal of\nCorrosion shall be responsible for coordinating the comprehensive project to locate all steel\nservices, valves, and pot drips that are not currently in the City’s ten percent program. The City\nshall replace all steel services that are determined to have low readings. The entire project will\nbe completed within seven years.\n3. Program Project Schedule.\nProposed Schedule for Item 1\nThe City shall require its corrosion contractor to assign at least two individuals to patrol the\nCity’s natural gas distribution system to locate all steel gas services, valves, and pot drips that are\nnot currently being monitored in the City’s ten percent program. The City will continue the\nproject that it initiated on November 1, 2019. The contractor shall remain on the project until all\nservices, valves, and pot drips are located and all as-built drawings are completed. The City also\nshall utilize its gas leak repair contractor to replace all services with low readings. The City’s\nGIS team shall enter the location of pipelines and pot drips in the City’s database.\nStart date November 1, 2019\nCompletion date November 1, 2026\n4. Costs.\nEstimated Cost to address Item 1: $1,575,556","truncated":false,"body_characters":34219}