{"operation":"document","citation":"CPF 120190006W","title":"BLACK HILLS ENERGY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-04-08","effective_on":null,"summary":"CLOSED warning letter citing 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190006w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190006w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190006w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120190006W","body":"Warning Letter involving BLACK HILLS ENERGY. PHMSA's enforcement data identifies the cited regulation as 192.12(e). The case was opened on 2019-04-08 and is reported as closed as of 2019-04-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120190006W_Warning Letter_04082019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190006W/120190006W_Warning%20Letter_04082019.pdf\n\n120190006W_Warning Letter_04082019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190006W/120190006W_Warning%20Letter_04082019_text.pdf\n\n120190006W_Warning Letter_04082019_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nApril 8, 2019\nMs. Linn Evans\nPresident and CEO\nBlack Hills Energy\n7001 Mt Rushmore RD, PO Box 1400\nRapid City, SD 57709\nCPF 1-2019-0006W\nDear Ms. Evans:\nFrom October 23 through 25, 2018, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Black Hills Energy’s (BHE) Bunker Hill, East Mahoney, and Kirk Ranch Underground\nNatural Gas Storage Fields. The inspection was conducted at the BHE offices in Casper, Wyoming\nand the Bunker Hill and East Mahoney fields located in Carbon County, Wyoming and the Kirk\nRanch field located in Fremont County, Wyoming.\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 violations are:\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 their\nwritten procedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\n\n\n\nCPF 1-2019-0006W\nBHE failed to follow its written procedures for operations, maintenance, and emergencies\nimplementing the requirements of API RP 1170 and API RP 1171. Specifically, BHE failed to\ndocument annular pressures as required in BHE’s Underground Storage O&M, Section 30.10.2,\nWELL INTEGRITY MONITORING, dated 01/18/2018 (O&M Sec 30).\nBHE’s O&M Sec 30 states in part, “The Company shall perform the following actions to monitor\nwell integrity: Monitor for the presence of annular gas every three months, not to exceed four and\na half months, by recording measurements of pressure and/or gas flow in the annulus using\n3538_18 Pressure Monitoring Form”.\nBHE was not able to produce records that reflected that annular pressures were documented\naccording to its procedure.\n2. § 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 their\nwritten procedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nBHE failed to follow its written procedures for operations, maintenance, and emergencies\nimplementing the requirements of API RP 1170 and API RP 1171. Specifically, BHE failed to\ndocument visual wellhead inspections as required in BHE’s Underground Storage O&M, Section\n30.10.2, WELL INTEGRITY MONITORING, dated 01/18/2018 (O&M Sec 30).\nBHE’s O&M Sec 30 states in part, “The Company shall perform the following actions to monitor\nwell integrity: Annually, at an interval not to exceed 15 months, perform a visual inspection of\neach wellhead assembly for leaks. The following tasks shall be performed in these inspections:\n Check for new developments around the well.\n Check for new hazards or obstructions around the well (if there is fencing, check that it is\nnot damaged).\n Inspect for leaks at all connections and surface equipment.\n Inspect for surface corrosion (e.g., badly rusted, bolts warn out).\n Make sure signage is visible and correct.\n Check access road condition.\n Verify that valves are locked and secured as appropriate.”\nBHE documented the visual wellhead inspections on a valve inspection form that did not include\nall the elements listed in their procedure.\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\n2\n\n\n\nCPF 1-2019-0006W\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. We have reviewed the circumstances and\nsupporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct the\nitem(s) identified in this letter. Failure to do so will result in Black Hills Energy being subject to\nadditional enforcement 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, 840 Bear Tavern Road, Suite 300,\nWest Trenton, NJ 08628. Please refer to CPF 1-2019-0006W 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 USB flash drive accompanied by the\noriginal paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n3","truncated":false,"body_characters":6659}