{"operation":"document","citation":"CPF 120190009W","title":"CITIZENS GAS UTIL DIST — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-05-23","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d), 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190009w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190009w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190009w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120190009W","body":"Warning Letter involving CITIZENS GAS UTIL DIST. PHMSA's enforcement data identifies the cited regulations as 192.12(d),  192.12(e). The case was opened on 2019-05-23 and is reported as closed as of 2019-05-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120190009W_Warning Letter_05232019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190009W/120190009W_Warning%20Letter_05232019.pdf\n\n120190009W_Warning Letter_05232019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190009W/120190009W_Warning%20Letter_05232019_text.pdf\n\n120190009W_Warning Letter_05232019_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nMay 23, 2019\nMr. Greg Bell\nGeneral Manager\nCitizens Gas Utility District\n12519 Scott Hwy, PO Box 320\nHelenwood TN, 37755\nCPF 1-2019-0009W\nDear Mr. Bell:\nFrom December 11 through 13, 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 Citizens Gas Utility District’s (CGUD) Indian Creek Underground Natural Gas Storage\nField in Morgan County, TN.\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(d) Each underground natural gas storage facility that uses a depleted hydrocarbon\nreservoir or an aquifer reservoir for gas storage, including those constructed not later\nthan July 18, 2017 must meet the operations, maintenance, integrity demonstration\nand verification, monitoring, threat and hazard identification, assessment,\nremediation, site security, emergency response and preparedness, and recordkeeping\nrequirements and recommendations of API RP 1171, sections 8, 9, 10, and 11\n(incorporated by reference, see § 192.7) by January 18, 2018.\n\n\n\nCPF 1-2019-0009W\n2\n\n\n\nCPF 1-2019-0009W\nCGUD failed to meet the applicable requirements and recommendations of API RP 1171, Section\n10. Specifically, CGUD did not have permanent weatherproof signs installed at the Indian Creek\nUGS Field at each well site for identification purposes, as required by API RP 1171, Section\n10.4.1.\nAPI RP 1171, Section 10.4.1, Minimum Signage Information, states in part:\nPermanent weatherproof signage shall be installed at each well site for identification\npurposes.\nDuring the field inspection at the Indian Creek UGS Field, PHMSA discovered that CGUD did\nnot have permanent weatherproof signs installed at the following well sites:\n 674\n 714\n 821\n 770\n 780\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.\nCGUD failed to follow its written procedures for operations, maintenance, and emergencies\nimplementing the requirements of API RP 1170 and API RP 1171. Specifically, CGUD failed to\ninstall proper signage at each well site at the Indian Creek UGS Field as required in CGUD’s UGS\nCompliance Plan, Section 5.4.\nCGUD’s UGS Compliance Plan, Section 5.4, Signage, states in part:\nPermanent weatherproof signage shall be installed at each well site for identification, and\ninclude:\n Storage facility name, well name, and/or identification number\n Operator name; and,\n Operator’s 24-hour emergency contact number.\nDuring the field inspection at the Indian Creek UGS Field, PHMSA discovered that CGUD had\nsignage that did not include some of the required elements installed at the following well sites:\n3\n\n\n\nCPF 1-2019-0009W\n 601\n 643\n 698\n 684\n 1043\n3. § 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.\nCGUD failed to follow its written procedures for operations, maintenance, and emergencies\nimplementing the requirements of API RP 1170 and API RP 1171. Specifically, CGUD failed to\ninclude all wells into the integrity program as required in CGUD's UGS-01, Section 5.4.1.\nCGUD's UGS-01, Section 5.4.1 Plugged Wells, and Other Active Wells stated, in part:\nPlugged and other active wells must be included in the integrity program and include all\nother wells within the Indian Creek Field. …. These plugged and other wells will be\ninspected at least annually, and inspections documented.\nCGUD stated that not all plugged and active wells within the Indian Creek Field had been\nidentified at the time of the inspection. During the field inspection, a well with a 7466 sticker on\nthe wellhead was identified as one of the wells that was not yet included in the integrity program.\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. 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 Citizens Gas Utility District being\nsubject to additional 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\n4\n\n\n\nCPF 1-2019-0009W\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 1-2019-0009W 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\n5","truncated":false,"body_characters":7548}