{"operation":"document","citation":"CPF 120200001M","title":"LOUISVILLE GAS & ELECTRIC CO — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-03-13","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120200001m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120200001m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120200001m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120200001M","body":"Notice of Amendment involving LOUISVILLE GAS & ELECTRIC CO. PHMSA's enforcement data identifies the cited regulation as 192.12(e). The case was opened on 2020-03-13 and is reported as closed as of 2020-07-10. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120200001M_Closure Letter_07102020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200001M/120200001M_Closure%20Letter_07102020.pdf\n\n120200001M_Closure Letter_07102020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200001M/120200001M_Closure%20Letter_07102020_text.pdf\n\n120200001M_Notice of Amendment_03132020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200001M/120200001M_Notice%20of%20Amendment_03132020.pdf\n\n120200001M_Notice of Amendment_03132020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200001M/120200001M_Notice%20of%20Amendment_03132020_text.pdf\n\n120200001M_Operator Response to Notice_04142020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200001M/120200001M_Operator%20Response%20to%20Notice_04142020.pdf\n\n120200001M_Notice of Amendment_03132020_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nMarch 13, 2020\nMr. John Malloy\nVice President, Gas Distribution\nLouisville Gas & Electric Co.\n220 W. Main St.\nP.O. Box 32010\nLouisville, KY 40202\nCPF 1-2020-0001M\nDear Mr. Malloy:\nFrom July 22 - 25, 2019, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nLouisville Gas & Electric Co.’s (LG&E) procedures for Underground Natural Gas Storage\n(UNGS) in Louisville, Kentucky.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nLG&E’s plans or procedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(e) Operators of underground gas storage facilities must establish\nand follow written procedures for operations, maintenance, and\nemergencies implementing the requirements of API RP 1170 and API\nRP 1171, as required under this section, including the effective dates as\napplicable, and incorporate such procedures into their written\nprocedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nLG&E’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, LG&E’s Storage Integrity Management Plan (SIMP) did not require a frequency for\nperforming the reviews of risk assessment results within its Section 9.6, in accordance with API\n\n\n\nCPF 1-2020-0001M\nRP 1171, Section 8.5.2 Methodology (Section 8.5.2).\nSection 8.5.2 states in part:\nThe operator shall assess risk related to the storage operation using a consistent process.\nThe operator should determine the risk assessment method applicable for the facilities. A\nrisk assessment method should include the following characteristics in the risk assessment\nprotocol:\n(a) …\n(f) regular, periodic risk assessment reviews to update information and\nevaluate risk management effectiveness.\nAt the time of the inspection, LG&E’s SIMP, Section 9.6 referenced a periodic evaluation, but did\nnot define a regular frequency for performing reviews of risk assessment results.\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(e) Operators of underground gas storage facilities must establish\nand follow written procedures for operations, maintenance, and\nemergencies implementing the requirements of API RP 1170 and API\nRP 1171, as required under this section, including the effective dates as\napplicable, and incorporate such procedures into their written\nprocedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nLG&E’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, LG&E’s Annulus Pressure Monitoring Procedure did not address monitoring for the\npresence of annular gas where well annulus cannot be monitored, in accordance with API RP 1171,\nSection 9.3.2 Well Integrity Monitoring (Section 9.3.2).\nSection 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. The operator shall evaluate each annular gas occurrence\nthat exceeds operator- or regulatory-defined threshold levels determined from well\nintegrity evaluation and from risk assessment.\nAt the time of the inspection, LG&E’s written procedures failed to address how they would\nmonitor the integrity of wells without annular ports.\n3. § 192.12 Underground natural gas storage facilities.\n(a) …\n(e) Operators of underground gas storage facilities must establish\nand follow written procedures for operations, maintenance, and\nemergencies implementing the requirements of API RP 1170 and API\nRP 1171, as required under this section, including the effective dates as\napplicable, and incorporate such procedures into their written\nprocedures for operations, maintenance, and emergencies established\n120200001M_Notice of Amendment_03132020_text Page 2 of 5\n\n\n\nCPF 1-2020-0001M\npursuant to § 192.605.\nLG&E’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, LG&E’s Annulus Pressure Monitoring Procedure did not define a threshold or limit\nfor the annular pressure and/or annular gas flow, in accordance with Section 9.3.2.\nSection 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. The operator shall evaluate each annular gas occurrence\nthat exceeds operator- or regulatory-defined threshold levels determined from well\nintegrity evaluation and from risk assessment.\nAt the time of the inspection, LG&E’s annular pressure thresholds were in draft form only and had\nnot gone through the Management of Change process.\n4. § 192.12 Underground natural gas storage facilities.\n(a) …\n(e) Operators of underground gas storage facilities must establish\nand follow written procedures for operations, maintenance, and\nemergencies implementing the requirements of API RP 1170 and API\nRP 1171, as required under this section, including the effective dates as\napplicable, and incorporate such procedures into their written\nprocedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nLG&E’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, LG&E’s Annulus Pressure Monitoring Procedure did not require that each annular\ngas occurrence that exceeds operator-defined or regulatory-defined threshold levels be evaluated,\nas required by Section 9.3.2.\nSection 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. The operator shall evaluate each annular gas occurrence\nthat exceeds operator- or regulatory-defined threshold levels determined from well\nintegrity evaluation and from risk assessment.\nAt the time of the inspection, LG&E’s written procedures failed to address how they would\nevaluate annular gas occurrences that exceeds annular pressure thresholds or limits.\n5. § 192.12 Underground natural gas storage facilities.\n(a) …\n(e) Operators of underground gas storage facilities must establish\nand follow written procedures for operations, maintenance, and\nemergencies implementing the requirements of API RP 1170 and API\nRP 1171, as required under this section, including the effective dates as\napplicable, and incorporate such procedures into their written\n120200001M_Notice of Amendment_03132020_text Page 3 of 5\n\n\n\nCPF 1-2020-0001M\nprocedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nLG&E’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, LG&E’s emergency response (ER) training plan did not define a frequency for ER\ntraining, as required by API RP 1171, Section 10.6.2 Training (Section 10.6.2).\nSection 10.6.2 states:\nStorage operations and applicable staff shall receive training in the use of the emergency\npreparedness/response plan. The training can include mock drills and participation in table-\ntop exercises at regular intervals. The table-top exercises or mock drills can include civil\nemergency responders to enhance understanding and successful incident response.\nAt the time of the inspection, LG&E’s ER plan described periodic training. The ER plan failed to\ndefine the actual interval to be used for performing the training.\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 Louisville Gas & Electric Co. 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 1-2020-0001M 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\n120200001M_Notice of Amendment_03132020_text Page 4 of 5\n\n\n\nCPF 1-2020-0001M\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\n120200001M_Notice of Amendment_03132020_text Page 5 of 5\n\n120200001M_Closure Letter_07102020_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nJuly 10, 2020\nMr. Tom Jessee\nVice President of Gas Operations\nLouisville Gas & Electric Co.\n220 West Main Street, P.O. Box 32010\nLouisville, Kentucky, 40202\nCPF 1-2020-0001M\nDear Mr. Jessee:\nFrom July 22-25, 2019, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nLouisville Gas & Electric Company’s (LG&E) procedures for Underground Natural Gas Storage\nin Louisville, Kentucky. As a result of the inspection, LG&E was issued a Notice of Amendment\non March 13, 2020, which proposed amendment of your procedures.\nLG&E submitted its amended procedures on or about April 14, 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","truncated":false,"body_characters":12639}