{"operation":"document","citation":"CPF 12020008WL","title":"DANVILLE, CITY OF — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-09-03","effective_on":null,"summary":"CLOSED warning letter citing 192.13(c), 192.465(a), 192.465(b), 192.605(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020008wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020008wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12020008wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12020008WL","body":"Warning Letter involving DANVILLE, CITY OF. PHMSA's enforcement data identifies the cited regulations as 192.13(c),  192.465(a),  192.465(b),  192.605(a). The case was opened on 2020-09-03 and is reported as closed as of 2020-09-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12020008WL_Warning Letter_09032020_(20-172761).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020008WL/12020008WL_Warning%20Letter_09032020_(20-172761).pdf\n\n12020008WL_Warning Letter_09032020_(20-172761)_test.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020008WL/12020008WL_Warning%20Letter_09032020_(20-172761)_test.pdf\n\n12020008WL_Warning Letter_09032020_(20-172761).pdf\n\nU.S. Department\nof Transportation\n840 Bear Tavern Road, Suite 300\nWest Trenton, NJ 08628\nPipeline and\n609.771.7800\nSafety Administration\nHazardous Materials\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nSeptember 3, 2020\nJason Grey\nInterim Director of Utilities\nCity of Danville\n1040 Monument St\nDanville, VA 24540\nCPF 1-2020-008-WL\nDear Jason Grey:\nFrom February 20, 2019 to January 17, 2020, inspectors from the Virginia State Corporation\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCommission, Division of Pipeline Safety (VA SCC), acting as Agent for the Pipeline and\nCode (U.S.C.) inspected City of Danville's (the City) plans and procedures.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nand the probable violations are:\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\n1.\n§192.13 What general requirements apply to pipelines regulated under this part?\n(c) Each operator shall maintain, modify as appropriate, and follow\nthe plans, procedures, and programs that it is required to establish\nunder this part.\nThe City failed to follow the plans, procedures, and programs that it is required to establish under\nPart 192. Specifically, the City failed to follow its Distribution Integrity Management Plan,\neffective 2018-12-01, (DIMP), a program required per §192.1005.\nDIMP stated in part:\n\"Chapter 8. PERIODIC EVALUATION AND IMPROVEMENT\n\n\n\nCPF 1-2020-008-WL\nDanville Utilities will conduct a complete re-evaluation of this Plan at least every 5 years.\"\nDuring the inspection, it was established that the City last validated its risk results by subject matter\nexpert input in August of 2013. The risk results in Chapter 5 of the City's DIMP were not re-\nevaluated in accordance its Chapter 8 requirement as the City failed to provide documentation\ndemonstrating that a re-evaluation was conducted within 5 years of August 2013.\nTherefore, the City failed to follow the integrity management program that it is required to\nestablish under §192.1005, as per §192.13(c).\n2.\n§192.13 What general requirements apply to pipelines regulated under this part?\n(c) Each operator shall maintain, modify as appropriate, and follow\nthe plans, procedures, and programs that it is required to establish\nunder this part.\nThe City failed to follow the plans, procedures, and programs that it is required to establish under\nPart 192. Specifically, the City failed to follow its Distribution Integrity Management Plan,\neffective 2018-12-01, (DIMP), a program required per §192.1005.\nDIMP stated in part:\n\"6.2. RISK BASED ADDITIONAL ACTIONS ...\nh. Section: Cast, Ductile, Wrought Iron (larger than 8\"') portion of Danville Utilities\nFor external corrosion on cast, wrought, ductile iron mains and services (larger than\n8) on the Cast, Ductile, Wrought Iron (larger than 8\") (Entire System) section,\nDanville Utilities will:\n•••\n• Annual leak survey of ductile iron greater than 8\" rather than the minimum required\nsurvey.\"\nDuring the inspection, the City failed to provide records demonstrating that it had conducted\nannual leak surveys on these portions on its cast, ductile or wrought iron mains greater than 8-\ninches in diameter. On June 19, 2019, the City confirmed via email that it had failed to conduct\nannual leak surveys on approximately 5.4 miles of these portions of its distribution system.\nTherefore, the City failed to follow the integrity management program that it is required to\nestablish under § 192.1005, as per §192.13(c).\n3.\n§192.465 External corrosion control: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at\nleast once each calendar year, but with intervals not exeeeding 15\nmonths, to determine whether the cathodic protection meets the\nrequirements of $192.463. However, if tests at those intervals are\nimpractical for separately protected short sections of mains or\ntransmission lines, not in excess of 100 feet (30 meters), or separately\nprotected service lines, these pipelines may be surveyed on a sampling\n12020008WL_ Warning Letter_09032020 (20-172761) doex\nPage 2 of 5\n\n\n\nCPF 1-2020-008-WL\nbasis. At least 10 percent of these protected structures, distributed over\nthe entire system must be surveyed each calendar year, with a different\n10 percent checked each subsequent year, so that the entire system is\ntested in each 10-year period.\nThe City failed to test each pipeline that is under cathodic protection, at least once each calendar\nyear, but with intervals not exceeding 15 months, to determine whether the cathodic protection\nmeets the requirements of § 192.463.\nDuring the inspection, the VA SC inspector requested cathodic protection test records. Prior to\nbeginning the inspection, the City disclosed and provided 55 locations where the City failed to\nperform cathodic protection testing at intervals not exceeding 15 months. Table 1, created by\nPHMSA and located in Attachment, depicts the locations with a cathodic protection test that\nexceeded 15-month interval.\nTherefore, the City failed in 55 instances to test each pipeline that is under cathodic protection, at\nleast once cach calendar year, but with intervals not exceeding 15 months.\nPHSMA encourages self-reporting of code violations. The City's transparency was taken into\nconsideration during the selection of administrative enforcement actions.\n4.\n§192.465 External corrosion control: Monitoring.\n(b) Each cathodic protection rectifier or other impressed current\npower source must be inspected six times each calendar year, but with\nintervals not exceeding 2 ½ months, to insure that it is operating.\nThe City failed to inspect six times each calendar year, but with intervals not exceeding 2 ½\nmonths, each cathodic protection rectifier or other impressed current power source to ensure that\nit is operating.\nDuring the inspection, the VA SCC inspector requested cathodic protection records. Prior to\nbeginning the inspection, the City disclosed and provided 4 locations where the City failed to\nperform cathodic protection inspections at intervals not exceeding 2 1/2 months. Table 2, created\nby PHMSA and located in Attachment, depicts the locations with a cathodic protection rectifier\ninspection that exceeded 2½ month interval.\nTherefore, the City failed in 4 instances to inspect cathodic protection rectifiers at intervals not\nexceeding 2½ months to ensure that they were operating.\nPHSMA encourages self-reporting of code violations. The City's transparency was taken into\nconsideration during the selection of administrative enforcement actions.\n$192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response. For transmission\n12020008WL_Warning Letter_09032020 (20-172761).docx\nPage 3 of 5\n\n\n\nCPF 1-2020-008-WL\nlines, the manual must also include procedures for handling abnormal\noperations. This manual must be reviewed and updated by the operator\nat intervals not exceeding 15 months, but at least once each calendar\nyear. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at\nlocations where operations and maintenance activities are conducted.\nThe City failed to review and update its manual of written procedures for conducting operations\nand maintenance activities and for emergency response at intervals not exceeding 15 months, but\nat least once each calendar year.\nDuring the inspection, the VA SCC inspector discovered that the City's Procedural Manual\nReview Form did not include review information for 2017 and 2018. The City responded to the\nVA SCC's December 23, 2019 Notice of Investigation on January 17, 2020, indicating reviews\ntook place in 2017 and 2018 and providing associated records. The documentation provided by\nthe City for the 2017 review identified a date of February 10, 2017, however the documentation\nfor 2018 did not identify a date. The 2018 record failed to demonstrate that the 2018 review was\nperformed prior to May 10, 2018, at an interval not exceeding 15 months.\nTherefore, the City failed to review and update its manual of written procedures at intervals not\nexceeding 15 months, but at least once each calendar year.\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. We have reviewed the circumstances\nand supporting 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 City of Danville being subject to\nadditional enforcement 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).\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,\n12020008WL_Warning Letter_09032020 (20-172761).docx\nPage 4 of 5\n\n\n\nCPF 1-2020-008-WL\nWest Trenton, NJ 08628. Please refer to CPF 1-2020-008-WL 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,\nPlit Bund\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCC:\nScott Marshall, VA SCC (via email)\nEnclosure:\nAttachment\n12020008WL_Warning Letter_09032020 (20-172761) doex\nPage 5 of 5\n\n12020008WL_Warning Letter_09032020_(20-172761)_test.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nSeptember 3, 2020\nJason Grey\nInterim Director of Utilities\nCity of Danville\n1040 Monument St\nDanville, VA 24540\nCPF 1-2020-008-WL\nDear Jason Grey:\nFrom February 20, 2019 to January 17, 2020, inspectors from the Virginia State Corporation\nCommission, Division of Pipeline Safety (VA SCC), acting as Agent for the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCode (U.S.C.) inspected City of Danville’s (the City) plans and procedures.\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. §192.13 What general requirements apply to pipelines regulated under this part?\n(c) Each operator shall maintain, modify as appropriate, and follow\nthe plans, procedures, and programs that it is required to establish\nunder this part.\nThe City failed to follow the plans, procedures, and programs that it is required to establish under\nPart 192. Specifically, the City failed to follow its Distribution Integrity Management Plan,\neffective 2018-12-01, (DIMP), a program required per §192.1005.\nDIMP stated in part:\n“Chapter 8. PERIODIC EVALUATION AND IMPROVEMENT\n\n\n\nCPF 1-2020-008-WL\nDanville Utilities will conduct a complete re-evaluation of this Plan at least every 5 years.”\nDuring the inspection, it was established that the City last validated its risk results by subject matter\nexpert input in August of 2013. The risk results in Chapter 5 of the City’s DIMP were not re-\nevaluated in accordance its Chapter 8 requirement as the City failed to provide documentation\ndemonstrating that a re-evaluation was conducted within 5 years of August 2013.\nTherefore, the City failed to follow the integrity management program that it is required to\nestablish under §192.1005, as per §192.13(c).\n2. §192.13 What general requirements apply to pipelines regulated under this part?\n(c) Each operator shall maintain, modify as appropriate, and follow\nthe plans, procedures, and programs that it is required to establish\nunder this part.\nThe City failed to follow the plans, procedures, and programs that it is required to establish under\nPart 192. Specifically, the City failed to follow its Distribution Integrity Management Plan,\neffective 2018-12-01, (DIMP), a program required per §192.1005.\nDIMP stated in part:\n“6.2. RISK BASED ADDITIONAL ACTIONS …\nh. Section: Cast, Ductile, Wrought Iron (larger than 8”) portion of Danville Utilities\n…\nFor external corrosion on cast, wrought, ductile iron mains and services (larger than\n8”) on the Cast, Ductile, Wrought Iron (larger than 8”) (Entire System) section,\nDanville Utilities will:\n…\nꞏ Annual leak survey of ductile iron greater than 8” rather than the minimum required\nsurvey.”\nDuring the inspection, the City failed to provide records demonstrating that it had conducted\nannual leak surveys on these portions on its cast, ductile or wrought iron mains greater than 8-\ninches in diameter. On June 19, 2019, the City confirmed via email that it had failed to conduct\nannual leak surveys on approximately 5.4 miles of these portions of its distribution system.\nTherefore, the City failed to follow the integrity management program that it is required to\nestablish under § 192.1005, as per §192.13(c).\n3. §192.465 External corrosion control: Monitoring.\n(a) Each pipeline that is under cathodic protection must be tested at\nleast once each calendar year, but with intervals not exceeding 15\nmonths, to determine whether the cathodic protection meets the\nrequirements of §192.463. However, if tests at those intervals are\nimpractical for separately protected short sections of mains or\ntransmission lines, not in excess of 100 feet (30 meters), or separately\nprotected service lines, these pipelines may be surveyed on a sampling\n12020008WL_Warning Letter_09032020_(20-172761)_test Page 2 of 5\n\n\n\nCPF 1-2020-008-WL\nbasis. At least 10 percent of these protected structures, distributed over\nthe entire system must be surveyed each calendar year, with a different\n10 percent checked each subsequent year, so that the entire system is\ntested in each 10-year period.\nThe City failed to test each pipeline that is under cathodic protection, at least once each calendar\nyear, but with intervals not exceeding 15 months, to determine whether the cathodic protection\nmeets the requirements of § 192.463.\nDuring the inspection, the VA SCC inspector requested cathodic protection test records. Prior to\nbeginning the inspection, the City disclosed and provided 55 locations where the City failed to\nperform cathodic protection testing at intervals not exceeding 15 months. Table 1, created by\nPHMSA and located in Attachment, depicts the locations with a cathodic protection test that\nexceeded 15-month interval.\nTherefore, the City failed in 55 instances to test each pipeline that is under cathodic protection, at\nleast once each calendar year, but with intervals not exceeding 15 months.\nPHSMA encourages self-reporting of code violations. The City’s transparency was taken into\nconsideration during the selection of administrative enforcement actions.\n4. §192.465 External corrosion control: Monitoring.\n(b) Each cathodic protection rectifier or other impressed current\npower source must be inspected six times each calendar year, but with\nintervals not exceeding 2 ½ months, to insure that it is operating.\nThe City failed to inspect six times each calendar year, but with intervals not exceeding 2 ½\nmonths, each cathodic protection rectifier or other impressed current power source to ensure that\nit is operating.\nDuring the inspection, the VA SCC inspector requested cathodic protection records. Prior to\nbeginning the inspection, the City disclosed and provided 4 locations where the City failed to\nperform cathodic protection inspections at intervals not exceeding 2 1/2 months. Table 2, created\nby PHMSA and located in Attachment, depicts the locations with a cathodic protection rectifier\ninspection that exceeded 2 ½ month interval.\nTherefore, the City failed in 4 instances to inspect cathodic protection rectifiers at intervals not\nexceeding 2 ½ months to ensure that they were operating.\nPHSMA encourages self-reporting of code violations. The City’s transparency was taken into\nconsideration during the selection of administrative enforcement actions.\n5. §192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline, a manual of written procedures for conducting operations and\nmaintenance activities and for emergency response. For transmission\n12020008WL_Warning Letter_09032020_(20-172761)_test Page 3 of 5\n\n\n\nCPF 1-2020-008-WL\nlines, the manual must also include procedures for handling abnormal\noperations. This manual must be reviewed and updated by the operator\nat intervals not exceeding 15 months, but at least once each calendar\nyear. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at\nlocations where operations and maintenance activities are conducted.\nThe City failed to review and update its manual of written procedures for conducting operations\nand maintenance activities and for emergency response at intervals not exceeding 15 months, but\nat least once each calendar year.\nDuring the inspection, the VA SCC inspector discovered that the City’s Procedural Manual\nReview Form did not include review information for 2017 and 2018. The City responded to the\nVA SCC’s December 23, 2019 Notice of Investigation on January 17, 2020, indicating reviews\ntook place in 2017 and 2018 and providing associated records. The documentation provided by\nthe City for the 2017 review identified a date of February 10, 2017, however the documentation\nfor 2018 did not identify a date. The 2018 record failed to demonstrate that the 2018 review was\nperformed prior to May 10, 2018, at an interval not exceeding 15 months.\nTherefore, the City failed to review and update its manual of written procedures at intervals not\nexceeding 15 months, but at least once each calendar year.\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. We have reviewed the circumstances\nand supporting 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 City of Danville being subject to\nadditional enforcement 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).\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,\n12020008WL_Warning Letter_09032020_(20-172761)_test Page 4 of 5\n\n\n\nCPF 1-2020-008-WL\nWest Trenton, NJ 08628. Please refer to CPF 1-2020-008-WL 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\nCC: Enclosure: Attachment\nScott Marshall, VA SCC (via email)\n12020008WL_Warning Letter_09032020_(20-172761)_test Page 5 of 5","truncated":false,"body_characters":22535}