{"operation":"document","citation":"CPF 120193003W","title":"UGI ENERGY SERVICES — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-09-26","effective_on":null,"summary":"CLOSED warning letter citing 193.2639(c)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120193003w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120193003w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120193003w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120193003W","body":"Warning Letter involving UGI ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulation as 193.2639(c)(2). The case was opened on 2019-09-26 and is reported as closed as of 2019-09-26. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120193003W_Warning Letter_09262019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193003W/120193003W_Warning%20Letter_09262019.pdf\n\n120193003W_Warning Letter_09262019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120193003W/120193003W_Warning%20Letter_09262019_text.pdf\n\n120193003W_Warning Letter_09262019_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nSeptember 26, 2019\nJoseph Hartz\nVice President, Asset Management\nUGI Energy Services, LLC\n1 Meridian Boulevard\nWyomissing, PA 19610\nCPF 1-2019-3003W\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.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item(s) inspected\nand the probable violation(s) are:\n1. § 193.2639 Maintenance records.\n(c) Each of the following records must be retained for as long as the LNG facility\nremains in service:\n…\n(2) Records of each test, survey, or inspection required by Subpart G in sufficient\ndetail to demonstrate the adequacy of corrosion control measures.\nUGI failed to retain records of each test, survey, or inspection required by Subpart G in sufficient\ndetail to demonstrate the adequacy of corrosion control measures. Specifically, UGI failed to retain\nrecords of its visual inspections of the transfer hoses used in LNG or flammable refrigerant transfer\nsystems for damage or defects before each use as required under § 193.2621(b).\n\n\n\nCPF 1-2019-3003W\nSection 193.2621(b) states:\n“Hoses used in LNG or flammable refrigerant transfer systems must be:\n…\n(b) Visually inspected for damage or defects before each use.”\nDuring the inspection, the PHMSA inspector reviewed UGI’s LNG Truck Transfer System\nManual, revised March 4, 2017 (Transfer Manual). UGI’s Transfer Manual Section 3.3.D.5 stated\nin part:\n(a) Visually inspect hose for any cracks, dents, or other damage. Record\ninspection results on the transfer hose inspection sheet. Never transfer LNG\nthrough a damaged hose.\nThe PHMSA inspector requested transfer hose visual inspection records. UGI provided trucking\ntickets and stated that UGI did not have records of transfer hose inspections.\nTherefore, UGI failed to retain record of each inspection required by Subpart G, § 193.2621(b).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31,\n2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum\npenalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before\nNovember 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a\nmaximum penalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015,\nthe maximum penalty may not exceed $200,000 per violation per day, with a maximum penalty\nnot to exceed $2,000,000 for a related series of violations. Also, for each violation involving LNG\nfacilities, and additional penalty of not more than $79,875 occurring on or after July 31, 2019 may\nbe imposed. For each violation involving LNG facilities, an additional penalty of not more than\n$77,910 occurring on or after November 27, 2018 and before July 31,2019 may be imposed. For\neach violation involving LNG facilities occurring on or after November 2, 2018 and before\nNovember 27, 2018, an additional penalty of not more than $76,352 may be imposed. For each\nviolation involving LNG facilities occurring prior to November 2, 2015, an additional penalty of\nnot more than $75,000 may be imposed. We have reviewed the circumstances and supporting\ndocuments involved in this case, and have decided not to conduct additional enforcement action\nor penalty assessment proceedings at this time. We advise you to correct the item(s) identified in\nthis letter. Failure to do so will result in UGI Energy Services, LLC being subject to additional\nenforcement action.\nBe advised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you must\nprovide 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).\n120193003W_Warning Letter_09262019_text Page 2 of 3\n\n\n\nCPF 1-2019-3003W\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 1-2019-3003W 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\n120193003W_Warning Letter_09262019_text Page 3 of 3","truncated":false,"body_characters":5936}