# UGI ENERGY SERVICES — Safety Order

- **operation:** document
- **citation:** CPF 12020009NOPSO
- **title:** UGI ENERGY SERVICES — Safety Order
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** current
- **official:** true
- **published on:** 2020-09-04
- **effective on:** Not available
- **summary:** OPEN safety order.
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-12020009nopso.md
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/12020009NOPSO
**body:**

Safety Order involving UGI ENERGY SERVICES. The dataset does not identify a cited regulation for this case. The case was opened on 2020-09-04 and is reported as open. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

12020009NOPSO_Consent Agreement and Order_08162021_(20-187254).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_Consent%20Agreement%20and%20Order_08162021_(20-187254).pdf

12020009NOPSO_Consent Agreement and Order_08162021_(20-187254)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_Consent%20Agreement%20and%20Order_08162021_(20-187254)_text.pdf

12020009NOPSO_Notice of Proposed Safety Order_09042020_(20-187254).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_Notice%20of%20Proposed%20Safety%20Order_09042020_(20-187254).pdf

12020009NOPSO_Notice of Proposed Safety Order_09042020_(20-187254)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_Notice%20of%20Proposed%20Safety%20Order_09042020_(20-187254)_text.pdf

12020009NOPSO_Operator Post-Hearing Submission_06112021_(20-187254).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_Operator%20Post-Hearing%20Submission_06112021_(20-187254).pdf

12020009NOPSO_Operator Request for Hearing_01192021_(20-187254).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_Operator%20Request%20for%20Hearing_01192021_(20-187254).pdf

12020009NOPSO_PHC Hearing Scheduled_02022021_(20-187254).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_PHC%20Hearing%20Scheduled_02022021_(20-187254).pdf

12020009NOPSO_PHC Hearing Scheduled_02022021_(20-187254)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12020009NOPSO/12020009NOPSO_PHC%20Hearing%20Scheduled_02022021_(20-187254)_text.pdf

12020009NOPSO_PHC Hearing Scheduled_02022021_(20-187254)_text.pdf

February 2, 2021
VIA ELECTRONIC MAIL TO: kcoyle@babstcalland.com and robert.burrough@dot.gov
Mr. Keith Coyle, Esq.
Counsel for UGI Energy Services
Babst Calland
505 9th Street NW, Suite 700
Washington, DC 20004
Mr. Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
820 Bear Tavern Road, Suite 103
West Trenton, New Jersey 08628
Re: Notice of Hearing, UGI Energy Services
CPF No. 1-2020-009-NOPSO
Dear Mr. Coyle and Mr. Burrough:
In accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of
Proposed Safety Order issued by the Pipeline and Hazardous Materials Safety Administration in
the above-referenced case. The hearing will take place on April 6, 2021, beginning at 9:00 am
Eastern Time.
The hearing will be held via videoconference. I will provide the videoconference information
prior to the hearing. At least 10 calendar days prior to the hearing (or by March 27, 2021), both
parties must submit and exchange any additional written materials they intend to present at the
hearing and the name and email address of each attendee. This information should be provided
electronically. Materials not submitted by this date may be excluded.
If you have any questions, please do not hesitate to contact me.
Sincerely,
Kristin Baldwin
Presiding Official
cc: Ms. Ajoke Agboola, Counsel, Office of Pipeline Safety, PHMSA
Ms. Melanie Lampton, Counsel, Office of Pipeline Safety, PHMSA

12020009NOPSO_Consent Agreement and Order_08162021_(20-187254)_text.pdf

August 16, 2021
VIA ELECTRONIC MAIL TO: jhartz@ugies.com
Mr. Joseph L. Hartz
President of UGI Energy Services, LLC
1 Meridian Blvd.
Wyomissing, PA 19610
CPF No. 1-2020-009-NOPSO
Dear Mr. Hartz:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and UGI Energy Services,
LLC, (UGIES) which was executed on August 10, 2021. Service of the Consent Order and
Consent Agreement by e-mail is deemed effective upon the date of transmission, or as otherwise
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosures: Consent Order
Consent Agreement
cc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA
Ms. Mary McDaniel, Director, Southwest Region, Office of Pipeline Safety, PHMSA
Mr. Frank Markle, Senior Counsel, UGI Corporation, marklef@ugicorp.com
Mr. Keith Coyle, Babst Calland, Counsel for UGIES, kcoyle@babstcalland.com
Ms. Brianne Kurdock, Babst Calland, Counsel for UGIES, bkurdock@babstcalland.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
)
In the Matter of )
)
UGI Energy Services, LLC, ) CPF No. 1-2020-009-NOPSO
)
Respondent. )
)
CONSENT ORDER
By letter dated September 4, 2020, the Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety (OPS or Agency), issued a Notice of Proposed Safety Order
(Notice) to UGI Energy Services, LLC (UGIES).
In accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions exist on
Respondent’s Temple LNG Peak Shaving Plant that pose a pipeline integrity risk to public
safety, property, or the environment. The Notice also proposed that Respondent take certain
corrective measures to remedy the alleged conditions and ensure that the public, property, and
the environment are protected from the potential risk.
In response to the Notice, Respondent requested an informal consultation. After two informal
consultations were held, UGIES requested a hearing, which was held virtually on April 6, 2021.
Following the hearing, PHMSA and UGIES reengaged in good-faith settlement discussions that
have resulted in the Consent Agreement attached to this Consent Order that settles all of the
allegations in the Notice.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order. The Respondent is hereby ordered to comply with the terms of the Consent
Agreement, effective immediately.
Pursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the
assessment of civil penalties of up to $200,000, as adjusted for inflation (see 49 C.F.R.
§ 190.223), for each violation for each day the violation continues or in referral to the Attorney
General for appropriate relief in a district court of the United States. The terms and conditions of
this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5.
August 16, 2021
________________________ ________________________
Alan K. Mayberry Date
Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, DC 20590
)
In the Matter of )
)
UGI Energy Services, LLC, ) CPF No. 1-2020-009-NOPSO
)
Respondent. )
)
CONSENT AGREEMENT
On September 4, 2020, the Pipeline and Hazardous Materials Safety Administration (PHMSA),
Office of Pipeline Safety, issued a Notice of Proposed Safety Order (Notice) to UGI Energy
Services, LLC, a subsidiary of UGI Corporation (UGIES or Respondent).1 PHMSA issued the
Notice after it initiated an investigation into the safety of the liquefied natural gas (LNG) storage
tank 1 at the Temple LNG Peak Shaving Plant (Temple 1).
The Notice alleged two conditions exist with Temple 1 that pose a potential pipeline integrity risk
to public safety, property, or the environment. Those two conditions were identified as
deformation at various anchor strap locations along the circumference of Temple 1’s outer tank
and natural gas migration between the tank floor and the foundation. The Notice proposed that
Respondent take certain corrective actions to remedy the alleged conditions and ensure that the
public, property, and the environment are protected from potential risk.
On September 20, 2020, UGIES responded to the Notice by timely submitting a written response
and a request for an informal consultation. Two informal consultations were held on October 28,
2020 and November 12, 2020. After the informal consultations, pursuant to 49 C.F.R. §
190.239(b)(3), UGIES requested a hearing on January 19, 2021. A hearing was held virtually on
April 6, 2021 before a PHMSA Presiding Official.
Following the hearing, PHMSA and UGIES (collectively, the Parties) reengaged in settlement
discussions and have jointly determined that settlement of this proceeding will avoid further
administrative proceedings or litigation and that entering into this Consent Agreement
(Agreement) is the most appropriate means of resolving the issues raised in the Notice. Therefore,
pursuant to 49 C.F.R. Part 190, without adjudication of any issue of fact or law, and upon consent
and agreement of the Parties, UGIES and PHMSA agree to the terms and conditions set forth in
this Agreement.
1 UGIES is a wholly owned subsidiary of UGI Corporation, an international energy distribution and services
company.
1



I. General Provisions
1. Respondent acknowledges that as the operator of Temple 1, Respondent is subject to the
jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and
administrative orders issued thereunder. For purposes of this Agreement, Respondent
acknowledges that it received proper notice of PHMSA's action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and
the regulations and orders issued thereunder.
2. Respondent agrees, for purposes of the Agreement, to address the integrity risks identified
in the Notice by completing the actions specified in Section II of the Agreement (Corrective
Measures) and to abide by the terms of this Agreement. This Agreement does not constitute a
finding of violation of any Federal law or regulation and may not be used in any civil or
administrative proceeding of any kind as evidence or proof of any fact, fault or liability, or as
evidence of the violation of any law, rule, regulation or requirement, except in a proceeding to
enforce the provisions of this Agreement.
3. After Respondent returns this signed Agreement to PHMSA, a PHMSA’s representative
will present it to the Associate Administrator for Pipeline Safety recommending that the Associate
Administrator adopt the terms of this Agreement by issuing an administrative order (Consent
Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer
of settlement until accepted by the Associate Administrator. Once accepted, the Associate
Administrator will issue a Consent Order incorporating the terms of the Agreement.
4. Respondent consents to the issuance of the Consent Order, and hereby waives any further
procedural requirements with respect to its issuance. Respondent waives all rights to contest the
adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to
administrative or judicial hearings or appeals, except as set forth herein.
5. This Agreement shall apply to and be binding upon PHMSA, and upon UGIES, its officers,
directors, and employees, and its successors, assigns, or other entities or persons otherwise bound
by law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans
and schedules to all of UGIES' officers, employees, and agents whose duties might reasonably
include compliance with this Agreement.
6. For all transfers of ownership or operating responsibility of the Temple LNG Peak Shaving
Plant, Respondent will provide a copy of this Agreement to the prospective transferee at least 30
days prior to such transfer and simultaneously provide written notice of the prospective transfer to
the PHMSA Southwest Region Director (Director), with a copy to the Eastern Region Director,
who issued the Notice.2
7. This Agreement constitutes the final, complete and exclusive agreement and understanding
between the Parties with respect to the subject matter of the Notice and the settlement embodied
in this Agreement. The Parties acknowledge that there are no representations, agreements or
2
2 Although PHMSA Eastern Region Director issued this Notice for this matter, for the purposes of this Agreement,
Director is defined as PHMSA Southwest Region Director.



understandings relating to settlement other than those expressly contained in this Agreement,
except that the terms of this Agreement may be construed by reference to the Notice.
8. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply
with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq.,
and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA's right
of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement
actions against UGIES pursuant to the Federal pipeline safety laws, the regulations and orders
issued thereunder, or any other provision of Federal or State law.
9. This Agreement does not waive or modify any Federal, State, or local laws or regulations
that are applicable to Respondent's LNG or pipeline systems. This Agreement is not a permit, or
a modification of any permit, under any Federal, State, or local laws or regulations. UGIES remains
responsible for achieving and maintaining compliance with all applicable Federal, State, and local
laws, regulations and permits.
10. This Agreement does not create rights in, or grant any cause of action to, any third party
not party to this Agreement. The U.S. Department of Transportation is not liable for any injuries
or damages to persons or property arising from acts or omissions of Respondent or its officers,
employees, or agents carrying out the work required by this Agreement. UGIES agrees to hold
harmless the U.S. Department of Transportation, its officers, employees, agents, and
representatives from any and all causes of action arising from any acts or omissions of Respondent
or its contractors in carrying out any work required by this Agreement.
11. Upon issuance of the Consent Order, UGIES agrees to perform the Corrective Measures
set forth below in Section II.
II. Corrective Measures
12. Temporary Gas Detection. Within 15 days of the Effective Date of the Consent Order,
UGIES shall begin to implement and follow of its Alarm Response LNG Tank Gas Detection
Procedure, including ordering any necessary gas detection equipment. See Appendix A. The gas
detection equipment must be installed no later than 15 days after receipt of the equipment and must
be continuously operated in place until approval is given by the Director for removal. UGIES
must comply with the notification requirements in paragraph 16 if a gas leak is discovered at
Temple 1. UGIES must obtain the Director’s approval under paragraph 21 to modify the
procedures referenced in Appendix A.
13. Heater Cable Replacement Project. Within 30 days of the Effective Date of the Consent
Order, UGIES must begin installing the heater cable replacement project as described in the
Conduit Cleaning and Heater Tube Installation Procedure. See Appendix B. UGIES must
complete the heater cable replacement project within 120 days of initiating the work. UGIES must
comply with the notification requirements in paragraph 16 when the heater cable replacement
project is initiated, if issues (including unexpected events, such as the presence of natural gas,
broken equipment or facilities, a fire, or inability to follow its procedures) are encountered during
the project or while the facilities are readied for service. UGIES must also comply with the
3



notification requirements in paragraph 16 if any of the following events occur during the heater
replacement project: (i) conduits 1, 3, 4, 6, 8, 10, 12, 14, 16, 17, or 19 are sealed and abandoned,
(ii) more than 50 percent of the total number of conduits are sealed and abandoned, (iii) any
adjacent conduits are sealed and abandoned, or (iv) additional engineering approval is sought from
Matrix PDM to proceed with the project. UGIES will not use any of the facilities installed as part
of the heater cable replacement project for more than five years from the in-service date. UGIES
must obtain the Director’s approval under paragraph 21 to modify the procedures referenced in
Appendix B.
14. Shell Deformation. Upon the Effective Date of the Consent Order, UGIES will implement
and follow the provisions in the MP-65, LNG Tank Foundation Settlement Inspection and MP-
108, LNG Tank Shell Deformation Assessment. See Appendix C. UGIES must conduct an
inspection of Temple 1 for foundation settlement and shell deformation at least once each calendar
year, but at intervals not to exceed fifteen months. UGIES must comply with the notification
requirements in paragraph 16 to provide the annual inspection results to PHMSA. UGIES must
obtain the Director’s approval under paragraph 21 to modify the procedures referenced in
Appendix C.
15. Long-Term Remediation Plan. UGIES will promptly commence development of a plan
to either: (i) temporarily remove Temple 1 from service in order to conduct an internal inspection
of Temple 1, identify the root cause of the gas migration problem, and complete remediation; or
(ii) decommission Temple 1, in which case UGIES may replace the LNG storage and/or
deliverability of Temple 1 with other assets to be constructed at the Temple LNG Terminal or
another location (Long-Term Remediation Plan). UGIES will complete the necessary analysis,
select an option, and obtain management approval for the recommended (i) remediation or (ii)
decommission and replacement, and provide the Director with the Long-Term Remediation Plan
within twelve months of the Effective Date of the Consent Order. UGIES must include an
implementation schedule in the Long-Term Remediation Plan that requires the completion of all
necessary activities by no later than July 1, 2025. If UGIES elects to perform an internal tank
inspection, the implementation schedule must require Temple 1 to be temporarily removed from
service for the performance of that inspection by no later than July 1, 2023. The terms of the
Long-Term Remediation Plan, except for provisions related to the replacement of Temple 1 or the
construction of new LNG facilities, will be subject to the Director’s approval. The replacement of
Temple 1 or construction of any new LNG facilities would be governed by applicable law,
including 49 C.F.R. Part 193. UGIES must comply with the notification requirements in paragraph
16 upon completion of the provisions in the Long-Term Remediation Plan.
16. events:
Notification. UGIES must notify the Director within 48 hours of any of the following
(1) a gas leak of any concentration discovered at Temple 1;
(2) the heater cable replacement project is initiated in accordance with the procedures
referenced in Appendix B;
(3) any issues are encountered during the heater cable replacement project performed under
the procedures referenced in Appendix B;
4



(4) conduits 1, 3, 4, 6, 8, 10, 12, 14, 16, 17, or 19 are sealed and abandoned, more than 50
percent of the total number of conduits are sealed and abandoned, any adjacent conduits
are sealed and abandoned, or additional engineering approval is sought from Matrix PDM
to proceed with the project under the procedures referenced in Appendix B;
(5) the facilities installed as part of the heater cable replacement project are ready for
service under the procedures referenced in Appendix B;
(6) the results of an annual foundation settlement or shell deformation inspection
performed under the procedures referenced in Appendix C are complete; or
(7) implementation of the Long-Term Remediation Plan referenced in paragraph 15 is
complete.
17. Quarterly Reports. UGIES will submit quarterly reports to the Director that: (1) include
analysis of all available data and results of the testing and evaluations required by this Agreement;
and (2) describe the progress of the repairs and other remedial actions being undertaken as required
by this Agreement. The first report will be due 45 days from the Effective Date of the Consent
Order.
18. Referenced Procedures. UGIES must provide copies of the procedures referenced in this
Agreement not previously provided to the Director for review and acceptance. No Corrective
Measure shall be performed pursuant to a procedure referenced in this Agreement that has not be
reviewed and accepted by the Director.
19. Extensions of Time. The Director may grant an extension of time for compliance with any
of the terms of the Agreement upon a written request timely submitted demonstrating good cause
for an extension. The Director shall respond in writing to any such request.
20. Appeals. Respondent may appeal any decision of the Director to the Associate
Administrator for Pipeline Safety. Decisions of the Associate Administrator will be final.
III. Review and Approval Process
21. With respect to any submission under Section II (Corrective Measures) of this Agreement
that requires the approval of the Director, the Director may: (a) approve, in whole or in part, the
submission, (b) approve the submission on specified, reasonable conditions, (c) disapprove, in
whole or in part, the submission, or (d) any combination of the foregoing. If the Director approves,
approves in part, or approves with conditions, UGIES will take all action as approved by the
Director, subject to Respondent's right to invoke the dispute resolution procedures in Section IV
with respect to any conditions the Director identifies. If the Director disapproves all or any portion
of the submission, the Director will provide UGIES with a written notice of the deficiencies.
Respondent will correct all deficiencies within the time specified by the Director and resubmit it
for approval.
IV. Dispute Resolution
22. The Director and UGIES will informally attempt to resolve any disputes arising under this
Agreement. If Respondent and the Director are unable to informally resolve the dispute within 15
5



days of submittal of Respondent's invoking dispute resolution, UGIES may request in writing,
within 10 days thereafter, a written determination resolving the dispute from the Associate
Administrator for Pipeline Safety providing all information that Respondent believes is relevant
to the dispute. If the request is submitted as provided herein, the Associate Administrator will issue
a final determination in writing. The existence of a dispute and PHMSA's consideration of matters
placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any
work to be performed under this Agreement during the pendency of the dispute resolution process
except as agreed by the Director or the Associate Administrator in writing.
V. Enforcement
23. This Agreement, as adopted by the Consent Order, is subject to all the enforcement
authorities available to the PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190. All
procedures set forth or referenced in Section II will be automatically incorporated into this
Agreement and are enforceable in the same manner.
VI. Recordkeeping and Information Disclosure
24. Unless otherwise required in this Agreement, UGIES agrees to maintain records
demonstrating compliance with all requirements of this Agreement for a period of at least five
years following completion of all work to be performed. For any reports, plans, or other
deliverables required to be submitted to PHMSA pursuant to this Agreement, UGIES may assert
a claim of business confidentiality or other protections applicable to the release of information by
PHMSA, covering part or all of the information required to be submitted to PHMSA pursuant to
this Agreement in accordance with 49 C.F.R. Part 7. UGIES must mark the claim of confidentiality
in writing on each page, and include a statement specifying the grounds for each claim of
confidentially. PHMSA determines release of any information submitted pursuant to this
Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552,
DOT and PHMSA policies, and other applicable regulations and Executive Orders.
VII. Effective Date
25. The term "Effective Date," as used herein, is the date on which the Consent Order is issued
by the Associate Administrator incorporating the terms of this Agreement. Unless specified to the
contrary, all deadlines for actions required by this Agreement run from the Effective Date of this
Consent Order.
VIII. Modification
26. The terms of this Agreement may be modified by mutual agreement of the Parties. Such
modifications must be in writing and signed by both parties.
IX. Termination
27. This Agreement shall remain in effect until the Corrective Measures set forth in Section II
are satisfied, as determined by the Director, or after UGIES decommissions Temple 1. Nothing in
6



this Agreement prevents UGIES from completing any of the obligations earlier than the deadlines
provided for in this Agreement.
X. Ratification
28. The Parties' undersigned representatives certify that they are fully authorized to enter into
the terms and conditions of this Agreement and to execute and legally bind such party to this
document.
29. The Parties hereby agree to all conditions and terms of this Agreement.
For Respondent:
___________________________________
Joseph L. Hartz
President of UGI Energy Services, LLC
___________________________________
Date
For PHMSA:
___________________________________
Robert Burrough
Director, Eastern Region, Office of Pipeline Safety
___________________________________
Date
7

12020009NOPSO_Notice of Proposed Safety Order_09042020_(20-187254)_text.pdf

NOTICE OF PROPOSED SAFETY ORDER
OVERNIGHT EXPRESS DELIVERY
September 4, 2020
Joseph Hartz
Vice President, Asset Management
UGI Energy Services
1 Meridian Blvd
Wyomissing, PA 19610
CPF 1-2020-009-NOPSO
Dear Joseph Hartz:
Enclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The
Notice proposes that you take certain measures with respect to UGI Energy Services’ (UGIES or
Respondent) Temple LNG Peak Shaving Plant’s (LNG Plant) storage tank 1 (Tank 1) to ensure
pipeline safety. Your options for responding are set forth in the Notice. Your receipt of the Notice
constitutes service of that document under 49 C.F.R. § 190.5.
We look forward to a successful resolution to ensure pipeline safety. Please direct any questions
on this matter to me at (609) 771-7809.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Notice of Proposed Safety Order
Copy of 49 C.F.R. § 190.239



DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
EASTERN REGION
WEST TRENTON, NJ 08628
_________________________________________
)
In the Matter of )
)
UGI Energy Services )
a subsidiary of UGI Corporation, ) CPF No. 1-2020-009-NOPSO
)
)
Respondent. )
_________________________________________ )
NOTICE OF PROPOSED SAFETY ORDER
Pursuant to Chapter 601 of Title 49, United States Code, the Pipeline and Hazardous Materials
Safety Administration (PHMSA), U.S. Department of Transportation, has initiated an
investigation into the safety of UGI Energy Services’ (UGIES or Respondent) Temple LNG Peak
Shaving Plant’s (LNG Plant) storage tank 1 (Tank 1). UGIES is a wholly owned subsidiary of UGI
Corporation, an international energy distribution and services company.1
The investigation was prompted following a discussion of a Federal Energy Regulatory
Commission’s (FERC) inspection conducted in August 2018. FERC reported that the south-east
portion of Tank 1’s shell was buckling and gas was migrating between the tank floor and the
heating conduits beneath the tank. FERC also informed PHMSA that UGIES had applied a weather
seal to act as a vapor barrier around the entire base of Tank 1.
On August 31, 2018, PHMSA requested information on the gas migration beneath the tank from
UGIES. The Respondent provided a May 2018 tank inspection report conducted by Matrix PDM
entitled Project No. 5308-1103 Temple 1 LNG Tank Inspection Report (Matrix PDM Report) and
information on the multi-layer epoxy weather proofing seal that was applied to the base of Tank
1. Over the course of 18 months, UGIES has attempted to mitigate the detected vapor leaks by
applying a seal to the circumference of the chime and horizontal plane of Tank 1’s concrete
foundation. UGIES also sleeved the heater conduits with stainless steel tubing upon discovering
1 UGI Corporation Website, About UGI, available at https://www.ugicorp.com/company/corporate-
information/about-ugi/default.aspx, (last accessed August 19, 2020).



that they were exposed to natural gas vapor in the tank’s annular space. Work on the heater
conduits is ongoing.
Background and Purpose:
On July 29, 2020, PHMSA conducted an onsite inspection of Tank 1 to continue its investigation
of the natural gas vapor migration in Tank 1. During the inspection, PHMSA observed that the
shell was deformed around the entire circumference of Tank 1 and the area that had the greatest
deformation was the south-east area of the tank. PHMSA also observed UGEIS constructing a new
truck loading station adjacent to Tank 1.
As a result of the preliminary investigation, it appears conditions exist at your liquefied natural gas
(LNG) facility that pose an integrity risk to public safety, property, or the environment. Pursuant
to 49 U.S.C. § 60117(l), PHMSA, Office of Pipeline Safety (OPS), issues this Notice of Proposed
Safety Order (Notice), notifying you of the preliminary findings of the investigation, and proposing
that you take certain measures to ensure that the public, property, and the environment are
protected from this integrity risk.
For the purposes of this Notice:
"Director" means the Director, Pipeline and Hazardous Materials Safety Administration
(PHMSA), Office of Pipeline Safety, Eastern Region. The Director’s address is 840 Bear Tavern
Road, Suite 300, West Trenton, NJ 08628.
Preliminary Findings:
 The UGIES LNG Plant is located in Temple, Pennsylvania. UGIES’ LNG Plant has a
storage capacity of 15 million gallons of LNG and a maximum daily deliverability of
205,200 dekatherms (Dth). The LNG Plant has a liquefaction capacity of 120,000 gallons
per day (10,000 Dth).
 UGIES Temple LNG Tank 1 is one of two LNG tanks located in the UGIES LNG Plant.
Tank 1 is a single containment, double-wall tank with a flat bottom, suspended deck, and
dome outer roof. The inner tank has a diameter of 75 feet and the outer tank has a diameter
of 87 feet. Tank 1 has a height of 93 feet and a nominal capacity of 73,000 barrels (bbls).
From January 2015 until July 2020, Tank 1 has stored approximately 34,000± bbls of
LNG each year. Tank 1 was constructed in 1972 and is equipped with an impressed current
cathodic protection system.
 The LNG Plant site is 6.62 acres of fenced-in industrial land, with open grass areas along
with 1.56 acres of existing pipeline right of way. The LNG Plant is located north of the
City of Reading in Berks County, Pennsylvania. Reading encompasses 10 square miles
and has a population density of 8,993 people per square mile. Between 2016 and 2017 the
population of Reading, Pennsylvania grew from 87,899 to 88,275, a 0.428% increase. The



LNG Plant is located adjacent to US Highway 222, which serves as the state's principal
artery between the Lancaster and Reading areas.
 Deformation was observed at various anchor strap locations along the circumference of
UGIES Tank 1 with the most severe instance occurring in the southeast area --
approximately 10 feet long and 6 feet in height.
 UGIES Tank 1 is experiencing natural gas vapor migration between the tank floor and the
foundation.
 The primary source of the vapor seepage in the heater conduit remains unknown. Natural
gas vapor in the heater system presents an identifiable ignition hazard.
 The migration and seepage of Tank 1’s natural gas vapors in conjunction with the
construction activities adjacent to the tank present an increased risk of accidental ignition.
 To date, UGIES has not be able to demonstrate to PHMSA that the remediation measures
it has performed complies with the repair requirements of Part 193 to ensure the integrity
and operational safety of Tank 1. See 49 C.F.R. § 193.2617.
Proposed Issuance of Safety Order:
Section 60117(1) of Title 49, United States Code, provides for the issuance of a safety order, after
reasonable notice and the opportunity for a hearing, requiring corrective action, which may include
physical inspection, testing, repair, replacement, or other action, as appropriate. The basis for
making the determination that a pipeline facility has a condition or conditions that pose a pipeline
integrity risk to public safety, property, or the environment is set forth both in the above referenced
statute and 49 C.F.R. § 190.239, a copy of which is enclosed.
After evaluating the foregoing preliminary findings of fact and considering the hazardous nature
of the product, the characteristics of the geographical area where the LNG facility is located, the
ongoing construction at the LNG facility which may result in an increased risk of accidental
ignition of the migrating gas, the unknown factors that resulted in the buckling of Tank 1, and the
likelihood that the issues could affect the safety of other areas of the LNG facility, it appears that
continued operation of the affected LNG Plant without corrective measures may pose an integrity
risk to public safety, property, or the environment.
Accordingly, PHMSA issues this Notice of Proposed Safety Order to notify Respondent of the
proposed issuance of a safety order and to propose that Respondent take measures specified herein
to address the potential risk
Proposed Corrective Actions:



Pursuant to 49 U.S.C. § 60117(l) and 49 C.F.R. § 190.239, PHMSA proposes to issue to UGIES a
safety order incorporating the following remedial requirements with respect to its Temple LNG
Peak Shaving Plant’s Tank 1:
1. 2. 3. 4. Limit Capacity. UGIES shall immediately limit the operations of Tank 1 to a liquid level
no greater than 35,000 bbls or 50% of the tank capacity. If UGIES determines that a
different level is necessary for safe operation, it must provide all information used in
calculating this level to the Director. The liquid level reduction must remain in place until
approval to resume normal operations of Tank 1 is given by the Director.
Gas Detection. UGIES shall immediately install temporary gas detection around Tank 1.
The gas levels should be monitored and recorded. The temporary gas detection must be
installed so that it will alert the control center and plant personnel of a natural gas vapor
leak in the vicinity of the Tank 1 chime area. The gas detection must remain in place until
approval is given by the Director for removal.
Records Inventory. Within 30 days of the date of the Safety Order, UGIES must submit to
the Director a complete inventory of all design and construction records for Tank 1. This
inventory of records for Tank 1 must include, but is not be limited to, tank metallurgical
and mechanical records of the shell plates and bottom plates; shell plate and bottom plate
welding records; non-destructive examination records; tank design specifications and all
loading conditions; all tank hydrotest records; all leak surveys; inspection records of the
heating conduits; and settlement surveys for the life of the tank. Additionally, the inventory
must include all geotechnical investigations and geotechnical updates conducted at the
LNG Plant.
Fitness-for-Service Assessment. Within 90 days of the date of the Safety Order, UGIES
must complete a fitness-for-service assessment in accordance with API RP 579-1 / ASME
FFS-1, Fitness-for-Service (3rd edition), issued in June 2016. All flaw types or damage
mechanisms needed to determine if Tank 1 is fit for service must be evaluated. The fitness-
for-service assessment must follow the eight-step process outlined in Section 2.1.3 (FFS
Assessment Procedure) of API RP 579-1/ASME FFS-1.
5. Remedial Work Plan. Within 30 days following completion of the fitness-for-service
assessment, UGIES must submit a Remedial Work Plan (RWP) to the Director for
approval. The RWP must include actions to remedy any issues identified by the Records
Inventory and Fitness-for-Service Assessment, described above, as well as any other
identified risk conditions determined by the investigation of the deformation of the shell
plates and migrating natural gas vapors in the foundation heater conduits. Identified risk
conditions may include, but is not limited to: (1) the continued presence of natural gas
vapors in the foundation slots that contain the heater conduits; (2) evidence of differential



circumferential settlement of the tank foundation that exceeds design criteria; (3)
geotechnical evidence that would require additional assessment and/or remediation to
sufficiently support the tank; and (4) out-of-roundness and localized distortions and
buckles that impair structural integrity of the tank.
a. The Director may incrementally approve parts of the RWP without approving the
entire RWP.
b. Once approved by the Director, the approved RWP increments or entire RWP is
considered incorporated by reference into this Safety Order or Consent Agreement.
c. The RWP must specify the tests, inspections, assessments, evaluations, and
remedial measures UGIES will use in order to remedy issues identified.
d. The RWP must include the following steps:
i. Integrate the results of the Fitness-For-Service Assessment, and other
corrective actions required by this Safety Order with all relevant preexisting
operational and assessment data for the identified risk conditions. Pre-
existing operational data includes, but is not limited to, construction,
operations, maintenance, testing, repairs, prior metallurgical analyses, and
any third-party consultation information.
ii. Determine if conditions similar to those found when assessing Tank 1 are
likely to exist elsewhere within the plant.
iii. Conduct additional field tests, inspections, assessments, and/or evaluations
to determine whether, and to what extent, the conditions similar to those
found when assessing Tank 1 are likely to be present elsewhere in the plant.
At a minimum, this process must consider evidence of differential
settlement and the presence of natural gas found from an unknown source
and specify the use of tests, inspections, assessments, and evaluations
appropriate for these conditions. UGIES may use the results of previous
tests, inspections, assessments, and evaluations, if approved by the Director,
provided the results of the tests, inspections, assessments, and evaluations
are analyzed with regard to the factors found on Tank 1.
iv. Describe the inspection and repair criteria UGIES will use to prioritize,
evaluate, and repair anomalies, imperfections, and other identified integrity
threats. Include a description of how any defects will be graded and a
schedule for repairs or replacement.
v. Based on the known history and condition of the tank and components
included in the identified risk condition, describe the methods UGIES will



6. use to repair, replace, or take other corrective measures to remediate the
conditions associated with Tank 1, and to address other known integrity
threats discovered at the plant. The repair, replacement, or other corrective
measures must be completed in accordance with 49 C.F.R. § 193.2617.
vi. Implement continuing long-term periodic inspection and integrity
verification measures to ensure
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