{"operation":"document","citation":"CPF 120193002M","title":"UGI ENERGY SERVICES — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-10-03","effective_on":null,"summary":"CLOSED notice of amendment citing 193.2503(c), 193.2509(b)(3), 193.2509(b)(4), 193.2605(b)(1), 193.2605(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120193002m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120193002m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120193002m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120193002M","body":"Notice of Amendment involving UGI ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulations as 193.2503(c),  193.2509(b)(3),  193.2509(b)(4),  193.2605(b)(1),  193.2605(b)(2). The case was opened on 2019-10-03 and is reported as closed as of 2020-03-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120193002M_Closure Letter_03202020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193002M/120193002M_Closure%20Letter_03202020.pdf\n\n120193002M_Closure Letter_03202020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193002M/120193002M_Closure%20Letter_03202020_text.pdf\n\n120193002M_Notice of Amendment (REVISED)_10032019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193002M/120193002M_Notice%20of%20Amendment%20(REVISED)_10032019.pdf\n\n120193002M_Notice of Amendment (REVISED)_10032019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193002M/120193002M_Notice%20of%20Amendment%20(REVISED)_10032019_text.pdf\n\n120193002M_Operator Response to Notice_10312019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193002M/120193002M_Operator%20Response%20to%20Notice_10312019.pdf\n\n120193002M_Closure Letter_03202020_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nMarch 20, 2020\nJoseph Hartz\nVice President, Asset Management\nUGI Energy Services, LLC\n1 Meridian Boulevard\nWyomising, PA 19610\nCPF 1-2019-3002M\nDear Mr. Hartz:\nOn July 11 to 13, 2017, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an on-\nsite pipeline safety inspection of UGI Energy Services, LLC (UGI)’s procedures in Berks County,\nPennsylvania. As a result of the inspection, UGI was issued a Notice of Amendment on October\n3, 2019, which proposed amendment of your procedures.\nUGI submitted its amended procedures on February 7, 2020. 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\n120193002M_Notice of Amendment (REVISED)_10032019_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nOctober 3, 2019\nJoseph Hartz\nVice President, Asset Management\nUGI Energy Services, LLC\n1 Meridian Boulevard\nWyomissing, PA 19610\nCPF 1-2019-3002M\nDear Mr. Hartz:\nOn July 11 to July 13, 2017, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nUGI Energy Services, LLC (UGI)’s facility in Berks County, Pennsylvania.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nUGI’s plans or procedures, as described below:\n1. § 193.2503 Operating Procedures.\nEach operator shall follow one or more manuals of written procedures to provide\nsafety in normal operation and in responding to an abnormal operation that would\naffect safety. The procedures must include provisions for:\n…\n(c) Recognizing abnormal operating conditions.\nUGI’s manuals of written procedures, including its Operations Manual, issued October 10, 2016\n(Operations Manual), were inadequate in that they failed to include provisions for recognizing\nabnormal operating conditions.\nDuring the inspection, UGI presented Operations Manual Section 12.2.2 and Section 13.2.6. The\n\n\n\nCPF 1-2019-3002M\nsections refer to occurrences which can lead to emergency shut down and process alarm\nshutdowns. However, an alarm may not necessarily be the only signal of an abnormal operating\ncondition.\nThe terms abnormal operation or abnormal operating condition are not used in the Operations\nManual. Additionally, the Operations Manual did not identify abnormal operating conditions.\nTherefore, UGI’s Operations Manual was inadequate because it failed to include provisions for\nrecognizing abnormal operating conditions.\n2. § 193.2509 Emergency Procedures.\n(b) To adequately handle each type of emergency identified under paragraph (a) of\nthis section and each fire emergency, each operator must follow one or more manuals\nof written procedures. The procedures must provide for the following:\n. . .\n(3) Coordinating with appropriate local officials in preparation of an emergency\nevacuation plan, which sets forth the steps required to protect the public in the event\nof an emergency, including catastrophic failure of an LNG storage tank.\nUGI’s manual of written procedures was inadequate in that it failed to include provisions for\ncoordinating with appropriate local officials in preparation of an emergency evacuation plan.\nDuring the inspection, the PHMSA inspector reviewed UGI’s LNG Emergency Procedures\nManual, Revision 5, dated March 10, 2016 (Emergency Procedure). Emergency Procedure\nChapters 1 through 4 described activities of plant personnel during an emergency. However,\nUGI’s Emergency Procedure failed to provide prescriptive language on the periodic training or\ncommunications with appropriate local officials to respond properly during an emergency and\nevacuation.\nTherefore, UGI’s Emergency Procedure was inadequate because it failed to include provisions for\ncoordinating with appropriate local officials in preparation of an emergency evacuation plan.\n3. § 193.2509 Emergency Procedures.\n(b) To adequately handle each type of emergency [a deviation from normal\noperation, a structural failure, or severe environmental conditions that probably\nwould cause harm to people or property] identified under paragraph (a) of this\nsection and each fire emergency, each operator must follow one or more manuals of\nwritten procedures. The procedures must provide for the following:\n…\n(4) Cooperating with appropriate local officials in evacuations and emergencies\nrequiring mutual assistance and keeping these officials advised of:\n(i) The LNG plant fire control equipment, its location, and quantity of units located\nthroughout the plant;\n(ii) Potential hazards at the plant, including fires;\n120193002M_Notice of Amendment (REVISED)_10032019_text Page 2 of 6\n\n\n\nCPF 1-2019-3002M\n(iii) Communication and emergency control capabilities at the LNG plant; and,\n(iv) The status of each emergency.\nUGI’s manual of written procedures was inadequate in that it failed to require cooperating with\nappropriate local officials in evacuations and emergencies requiring mutual assistance and keeping\nthese officials advised of all the information required by § 193.2509(b)(4)(i)-(iv).\nDuring the inspection, the PHMSA inspector reviewed UGI’s LNG Emergency Procedures\nManual, Revision 5, dated March 10, 2016 (Emergency Procedure). Emergency Procedure’s\nChapters 1 through 4 described activities of plant personnel during an emergency. Section 2.4 of\nthe manual stated “UGI supervisory personnel shall coordinate with local officials keeping them\nadvised of the location of the plant fire control equipment, the potential hazards at the plant, and\nthe status of each emergency.”\nUGI’s Emergency Procedure failed to:\n provide details of the LNG plant fire control equipment location, and quantity of units\nlocated throughout the plant;\n provide methods of communication and emergency control capabilities at the LNG plant;\nTherefore, UGI’s Emergency Procedure was inadequate because it failed to include provisions for\ncooperating with appropriate local officials in evacuations and emergencies requiring mutual\nassistance and keeping these officials advised of all the information required by\n§ 193.2509(b)(4)(i)-(iv).\n4. § 193.2605 Maintenance Procedures.\n(b) Each operator shall follow one or more manuals of written procedures for the\nmaintenance of each component, including any required corrosion control. The\nprocedure must include:\n(1) The details of the inspections or tests determined under paragraph (a) of this\nsection and their frequency of performance; and\nUGI’s manual of written procedures was inadequate in that it failed to provide details of the\ninspections or tests determined under § 193.2605(a).\nNational Fire Protection Association (NFPA)-59A (2001), incorporated by reference, Sec. 9.3.2\nstates:\nContinuously monitored low-temperature sensors or flammable gas detection\nsystems shall sound an alarm at the plant site and at a constantly attended location\nif the plant site is not attended continuously. Flammable gas detection systems shall\nactivate an audible and visual alarm at not more than 25 percent of the lower\nflammable limit of the gas or vapor being monitored.\nDuring the inspection, the PHMSA inspector reviewed UGI’s Operations Manual, issued October\n10, 2016 (Operations Manual) Maintenance Procedure, MP 1050 Combustible Gas Detector\nCalibration. The procedure failed to provide details of performance testing to demonstrate that gas\n120193002M_Notice of Amendment (REVISED)_10032019_text Page 3 of 6\n\n\n\nCPF 1-2019-3002M\ndetectors will activate an alarm at ≤ 25% lower explosive limit (LEL) gas-in-air.\nTherefore, UGI’s Operations Manual was inadequate because it failed to provide details of\nperformance testing to demonstrate that gas detectors will activate an alarm at ≤ 25% LEL gas-in-\nair, and frequency of performance.\n5. § 193.2605 Maintenance Procedures.\n(b) Each operator shall follow one or more manuals of written procedures for the\nmaintenance of each component, including any required corrosion control. The\nprocedure must include:\n(1) The details of the inspections or tests determined under paragraph (a) of this\nsection and their frequency of performance; and\nUGI’s manual of written procedures was inadequate in that it failed to provide details of the\ninspections or tests determined under § 193.2605(a).\nSection 193.2609 Support systems states:\nEach support system or foundation of each component must be inspected for any\ndetrimental change that could impair support.\nDuring the inspection, the PHMSA inspector requested procedures for the inspection of support\nsystems. The PHMSA inspector reviewed UGI’s Operations Manual, issued October 10, 2016\n(Operations Manual) Maintenance Procedure, MP-1003 Corrosion Protection –\nAtmospheric. However, the procedure failed to include a complete process for the inspection of\nthe support systems present at the facility.\nThe procedure failed to address corrosion to the structure, and ignored that many of the supports\nwere a metal/concrete system which mandates inspection of the non-metallic structure. The\nprocedure prescribed a triennial inspection on steel components, including supports, but failed to\nidentify concrete systems.\nTherefore, UGI’s Operations Manual was inadequate because it failed to provide adequate details\nof support system inspections.\n6. § 193.2605 Maintenance Procedures.\n(b) Each operator shall follow one or more manuals of written procedures for the\nmaintenance of each component including any required corrosion control. The\nprocedure must include:\n…\n(2) A description of other actions necessary to maintain the LNG plant according to\nthe requirements of this subpart.\nUGI’s manual of written procedures was inadequate in that it failed to provide a description of\nother actions necessary to maintain the LNG plant according to the requirements of Subpart G.\n120193002M_Notice of Amendment (REVISED)_10032019_text Page 4 of 6\n\n\n\nCPF 1-2019-3002M\n§ 193.2637 Remedial measures states:\nPrompt corrective or remedial action must be taken whenever an operator learns by\ninspection or otherwise that atmospheric, external, or internal corrosion is not\ncontrolled as required by this subpart.\nDuring the inspection, the PHMSA inspector reviewed UGI’s Operations Manual, issued October\n10, 2016 (Operations Manual) MP-1003, Corrosion Protection-Atmospheric. UGI’s Operations\nManual stated in part “Areas that need to be recoated shall be identified and remedial work shall\nbe scheduled within six months of the inspection.” UGI’s Operations Manual provided no other\nprescriptive language related to corrective or remedial action of uncontrolled atmospheric,\nexternal, or internal corrosion.\nTherefore, UGI’s Operations Manual was inadequate because it failed to provide description of\nremediation activities of uncontrolled atmospheric, external, or internal corrosion.\n7. § 193.2605 Maintenance Procedures.\n(b) Each operator shall follow one or more manuals of written procedures for the\nmaintenance of each component including any required corrosion control. The\nprocedure must include:\n(1) The details of the inspections or tests determined under paragraph (a) of this\nsection and their frequency of performance;\nUGI’s manual of written procedures was inadequate in that it failed to provide details of the\ninspections or tests determined under § 193.2605(a).\nSection 193.2633 Interference currents states:\n(a) Each component that is subject to electrical current interference must be\nprotected by a continuing program to minimize the detrimental effects of\ncurrents.\nDuring the inspection, the PHMSA inspector reviewed UGI’s Operations Manual, issued October\n10, 2016 (Operations Manual). The procedure failed to provide details on conducting electrical\ncurrent interference testing.\nTherefore, UGI’s Operations Manual was inadequate because it failed to provide details for\nelectrical interference testing.\n120193002M_Notice of Amendment (REVISED)_10032019_text Page 5 of 6\n\n\n\nCPF 1-2019-3002M\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 30 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 UGI Energy Services, LLC 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 1-2019-3002M 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\n120193002M_Notice of Amendment (REVISED)_10032019_text Page 6 of 6","truncated":false,"body_characters":16372}