{"operation":"document","citation":"CPF 120190012M","title":"CITIZENS GAS UTIL DIST — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-08-12","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190012m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190012m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120190012m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120190012M","body":"Notice of Amendment involving CITIZENS GAS UTIL DIST. PHMSA's enforcement data identifies the cited regulation as 192.12(e). The case was opened on 2019-08-12 and is reported as closed as of 2020-03-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120190012M_Closure Letter_03062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190012M/120190012M_Closure%20Letter_03062020.pdf\n\n120190012M_Closure Letter_03062020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190012M/120190012M_Closure%20Letter_03062020_text.pdf\n\n120190012M_Notice of Amendment_08122019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190012M/120190012M_Notice%20of%20Amendment_08122019.pdf\n\n120190012M_Notice of Amendment_08122019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120190012M/120190012M_Notice%20of%20Amendment_08122019_text.pdf\n\n120190012M_Closure Letter_03062020_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nMarch 6, 2020\nMr. Greg Bell\nGeneral Manager\nCitizens Gas Utility District\n12519 Scott Hwy, PO Box 320\nHelenwood TN, 37755\nCPF 1-2019-0012M\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 (CGUD) Indian Creek Underground Gas Storage Facility\nin Morgan County, TN. As a result of the inspection, CGUD was issued a Notice of Amendment\non August 12, 2019, which proposed amendment of your procedures.\nCGUD submitted its amended procedures on or about January 31, 2020. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\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\n120190012M_Notice of Amendment_08122019_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nAugust 12, 2019\nMr. Greg Bell\nGeneral Manager\nCitizens Gas Utility District\n12519 Scott Hwy, PO Box 320\nHelenwood TN, 37755\nCPF 1-2019-0012M\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.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nCGUD’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 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 1-2019-0012M\nCGUD’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD’s had not established procedures that used\nthe risk assessment process to determine the frequency requirements for integrity demonstration,\nverification, and monitoring tasks or activities as required in API RP 1171, Section 9.2.2.\nAPI RP 1171, Section 9.2.2 states, in part:\nRisk assessments shall be used as a basis for developing the integrity demonstration,\nverification, and monitoring tasks and evaluating their frequency requirements.\nAt the time of inspection, CGUD’s procedures failed to address this requirement of API RP 1171,\nSection 9.2.2.\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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD did not detail how, and how frequently, it\nwould request well integrity evaluation data from third-party well owners/operators as required in\nAPI RP 1171, Section 9.3.1.\nAPI RP 1171, Section 9.3.1 states, in part:\nThe operator shall evaluate the mechanical integrity of each active well, including each\nthird-party well, that penetrates the storage reservoir and buffer zone or areas influenced\nby storage operations.\nThe operator shall request well integrity evaluation data from third-party well\nowner/operators following the frequency established using conclusions from the risk\nassessment.\nAt the time of the inspection, CGUD’s procedures failed to address these specific requirements of\nAPI RP 1171, Section 9.3.1.\n120190012M_Notice of Amendment_08122019_text Page 2 of 7\n\n\n\nCPF 1-2019-0012M\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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD did not have a process to integrate the well\nintegrity evaluations into the risk management program as required in API RP 1171, Section 9.3.1.\nAPI RP 1171, Section 9.3.1 states, in part:\nActive well mechanical integrity evaluations shall include initial and subsequent\nevaluations as determined using the risk assessment and the information derived from the\ninitial evaluation.\nAt the time of the inspection, CGUD’s procedures failed to address this requirement of API RP\n1171, Section 9.3.1.\n4. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD had not established procedures to monitor\nfor the presence of annular gas between the surface casing and production casing and did not define\na threshold or limit for that annular pressure and/or gas flow as required in API RP 1171, Section\n9.3.2.\nAPI RP 1171, Section 9.3.2 states, in part:\nThe operator shall monitor for presence of annular gas by measuring and recording annular\npressure and/or annular gas flow.\nThe operator shall evaluate each annular gas occurrence that exceeds operator- or\nregulatory-defined threshold levels determined from well integrity evaluation and from risk\nassessment.\n120190012M_Notice of Amendment_08122019_text Page 3 of 7\n\n\n\nCPF 1-2019-0012M\nAt the time of the inspection, CGUD’s procedures failed to address these requirements of API RP\n1171, Section 9.3.2.\n5. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD's procedures did not describe how to\nannually test the operation of the master valve and wellhead pipeline isolation valve for proper\nfunction and ability to isolate the well, and did not have a valve maintenance program for\nmaintaining, repairing, and replacing isolation valves as required in API RP 1171, Section 9.3.2.\nAPI RP 1171, Section 9.3.2 states, in part:\nThe operator shall test the operation of the master valve and wellhead pipeline isolation\nvalve at least annually for proper function and ability to isolate the well.\nThe valves shall be maintained, repaired, or replaced in accordance with the operator’s\nvalve maintenance program for isolation valves.\nAt the time of the inspection, CGUD’s procedures failed to address these requirements of API RP\n1171, Section 9.3.2.\n6. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD's procedures in UGS-01, Section 6.2 did\nnot specify the types of integrity-related inspections, tests, patrols and analyses that are to be\ndocumented as required in API RP 1171, Section 9.8.1.\n120190012M_Notice of Amendment_08122019_text Page 4 of 7\n\n\n\nCPF 1-2019-0012M\nAPI RP 1171, Section 9.8.1 states, in part:\nInspections, tests, patrols, or analyses shall be documented according to the operator’s\nprocedures.\nAt the time of the inspection, CGUD’s procedures failed to address this requirement of API RP\n1171, Section 9.8.1.\n7. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD's procedures in UGS-03, Section 5.1.2 did\nnot specify that well information be provided on the well signs as required in API RP 1171, Section\n10.4.1.\nAPI RP 1171, Section 10.4.1 states, in part:\nPermanent weatherproof signage shall be installed at each well site for identification\npurposes.\nAt the time of the inspection, CGUD’s procedure UGS-03 failed to address this requirement of\nAPI RP 1171, Section 10.4.1.\n8. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD’s Emergency Response Plan did not include\nprovisions to address equipment failure and 3rd party damage as required in API RP 1171, Section\n10.6.1.\nAPI RP 1171, Section 10.6.1 states, in part:\n120190012M_Notice of Amendment_08122019_text Page 5 of 7\n\n\n\nCPF 1-2019-0012M\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.\n9. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD did not have a formal Blowout Contingency\nPlan in place as required by API RP 1171, Section 10.6.3.\nAPI RP 1171, Section 10.6.3 states, in part:\nThe operator shall have a blowout contingency plan in place.\nAt the time of the inspection, CGUD did not have a Blowout Contingency Plan in place.\n10. §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’s procedures for operations, maintenance, and emergencies implementing the requirements\nof API RP 1171 were inadequate. Specifically, CGUD did not have adequate procedures in place\nto determine that personnel were familiar with emergency plans and procedures, and did not define\na frequency for reviewing and updating the Blowout Contingency Plan as required in API RP\n1171, Section 11.4.2.\nAPI RP 1171, Section 11.4.2 states, in part:\nThe operator shall establish a program to determine operator familiarity with emergency\nplans and procedures and periodic testing of the effectiveness of the plan in accordance\nwith 10.6.\nAt the time of the inspection, CGUD’s procedures failed to address these requirements of API RP\n1171, Section 11.4.2.\n120190012M_Notice of Amendment_08122019_text Page 6 of 7\n\n\n\nCPF 1-2019-0012M\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 Enforcement\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 Citizens Gas Utility District 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, NJ 08628. Please refer\nto CPF 1-2019-0012M on each document you submit, and whenever possible provide a signed\nPDF copy in electronic format. Smaller files may be emailed to robert.burrough@dot.gov. Larger\nfiles should be sent on USB flash drive accompanied by the original paper copy to the Eastern\nRegion Office.\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 Enforcement Proceedings\n120190012M_Notice of Amendment_08122019_text Page 7 of 7","truncated":false,"body_characters":17647}