{"operation":"document","citation":"CPF 120190007M","title":"BLACK HILLS ENERGY — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-04-11","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190007m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190007m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190007m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120190007M","body":"Notice of Amendment involving BLACK HILLS ENERGY. PHMSA's enforcement data identifies the cited regulation as 192.12(e). The case was opened on 2019-04-11 and is reported as closed as of 2019-08-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120190007M_Closure Letter_08122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190007M/120190007M_Closure%20Letter_08122019.pdf\n\n120190007M_Closure Letter_08122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190007M/120190007M_Closure%20Letter_08122019_text.pdf\n\n120190007M_Notice of Amendment_04112019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190007M/120190007M_Notice%20of%20Amendment_04112019.pdf\n\n120190007M_Notice of Amendment_04112019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190007M/120190007M_Notice%20of%20Amendment_04112019_text.pdf\n\n120190007M_Operator Response to Notice_05072019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190007M/120190007M_Operator%20Response%20to%20Notice_05072019.pdf\n\n120190007M_Closure Letter_08122019_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nAugust 12, 2019\nMr. Linn Evans\nPresident and CEO\nBlack Hills Energy\n7001 Mt Rushmore RD, PO Box 1400\nRapid City SD 57709\nCPF 1-2019-0007M\nDear Mr. Evans:\nFrom October 23 through 25, 2018, a representative from the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an\non-site pipeline safety inspection of Black Hills Energy’s (BHE) records and procedures in Bunker\nHill, East Mahoney, and Kirk Ranch Underground Natural Gas Storage Fields. The inspection was\nconducted at the BHE offices in Casper, Wyoming and the Bunker Hill and East Mahoney fields\nlocated in Carbon County, Wyoming and the Kirk Ranch field located in Fremont County,\nWyoming. As a result of the inspection, BHE was issued a Notice of Amendment on April 11,\n2019, which proposed amendment of your procedures.\nBHE submitted its amended procedures on June 19, 2019. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\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\n120190007M_Notice of Amendment_04112019_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nApril 11, 2019\nMr. Linn Evans\nPresident and CEO\nBlack Hills Energy\n7001 Mt Rushmore RD, PO Box 1400\nRapid City SD 57709\nCPF 1-2019-0007M\nDear Mr. 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.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nBHE’s plans or procedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\n(e) Operators of underground gas storage facilities must establish and follow\nwritten procedures 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.\n\n\n\nCPF 1-2019-0007M\nBHE’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1170 and API RP 1171 were inadequate. Specifically, BHE procedures did not define\na threshold level for annular pressure or flow as required in API RP 1171, Section 9.3.2.\nAPI RP 1171, Section 9.3.2 states, in part:\nThe operator shall evaluate each annular gas occurrence that exceeds operator- or regulatory-\ndefined threshold levels determined from well integrity evaluation and from risk assessment.\n2. § 192.12 Underground natural gas storage facilities.\n(e) Operators of underground gas storage facilities must establish and follow\nwritten procedures 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.\nBHE’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1170 and API RP 1171 were inadequate. Specifically, BHE’s Emergency Response\nPlan did not address equipment failures, natural disasters, and third-party emergencies as\nspecified in API RP 1171, Section 10.6.1.\nAPI RP 1171, Section 10.6.1 states, in part:\nFor site security and safety, the operator shall develop and implement a structured\nemergency preparedness/response plan in order to address accidental releases, equipment\nfailures, natural disasters, and third-party emergencies.\n3. § 192.12 Underground natural gas storage facilities.\n(e) Operators of underground gas storage facilities must establish and follow\nwritten procedures 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.\nBHE’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1170 and API RP 1171 were inadequate. Specifically, BHE had not developed\nprocedures for interaction with the control room as required in BHE’s Storage Integrity\nManagement Plan (SIMP), Section 133.6.10.\nBHE’s SIMP, Section 133.6.10 states, in part:\n120190007M_Notice of Amendment_04112019_text Page 2 of 4\n\n\n\nCPF 1-2019-0007M\nThe Company shall develop procedures for interaction with the control room that cover\nnormal, abnormal, and emergency conditions and include the designation of authority for\ninitiating flow, operating, and shutting in the facilities when necessary to maintain\nreservoir and well integrity.\nBHE did not have procedures available for interaction between storage operations and the\ncontrol room at the time of the inspection.\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 Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 60 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that Black Hills Energy maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, PHMSA Eastern Region,\n840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer to CPF 1-2019-0007M\non each document you submit, and whenever possible provide a signed PDF copy in electronic\nformat. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent on\nUSB flash drive accompanied by the original paper copy to the Eastern Region Office.\n120190007M_Notice of Amendment_04112019_text Page 3 of 4\n\n\n\nCPF 1-2019-0007M\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\n120190007M_Notice of Amendment_04112019_text Page 4 of 4","truncated":false,"body_characters":9653}