{"operation":"document","citation":"CPF 120201004W","title":"ANR PIPELINE CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-01-02","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d), 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201004w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201004w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201004w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120201004W","body":"Warning Letter involving ANR PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.12(d),  192.12(e). The case was opened on 2020-01-02 and is reported as closed as of 2020-01-02. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120201004W_Warning Letter_01022020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201004W/120201004W_Warning%20Letter_01022020.pdf\n\n120201004W_Warning Letter_01022020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201004W/120201004W_Warning%20Letter_01022020_text.pdf\n\n120201004W_Warning Letter_01022020_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nJanuary 2, 2020\nMr. Stan Chapman\nSenior Vice President\nANR Pipeline Co.\n700 Louisiana St.\nHouston, TX. 77002\nCPF 1-2020-1004W\nDear Mr. Chapman:\nDuring the weeks of March 11 – March 15 and August 19 – August 22, 2019, representatives of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601\nof 49 United States Code (U.S.C.), inspected ANR Pipeline Co’s (ANR) Reed City, Austin and\nLoreed Underground Natural Gas facilities in Michigan.\nAs a result of the inspections, 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. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Each underground natural gas storage facility that uses a\ndepleted hydrocarbon reservoir or an aquifer reservoir for gas storage,\nincluding those constructed not later than July 18, 2017 must meet the\noperations, maintenance, integrity demonstration and verification,\nmonitoring, threat and hazard identification, assessment, remediation,\nsite security, emergency response and preparedness, and\nrecordkeeping requirements and recommendations of API RP 1171,\nsections 8, 9, 10, and 11 (incorporated by reference, see §192.7) by\nJanuary 18, 2018.\n\n\n\nCPF 1-2020-1004W\nANR failed to meet the monitoring requirements of API RP 1171, Section 9. Specifically, ANR\nfailed to evaluate each annular gas occurrence that exceeded operator-defined threshold levels\ndetermined from well integrity evaluation and from risk assessment, as directed by API RP 1171,\nSection 9.3.2.\nSection 9.3.2 of API RP 1171, Well Integrity Monitoring, states in part:\nThe operator shall evaluate each annular gas occurrence that exceeds operator- or\nregulatory-defined threshold levels determined from well integrity evaluation and from risk\nassessment.\nANR’s procedure TEP-PR-REST-G, Well Annulus Pressure Analysis Section 2.1, states that every\nwell shall have a calculated Maximum Allowable Annulus Surface Pressure (MAASP).\nDuring the inspection, the PHMSA inspector reviewed records for MAASP cacluations. The\nrecords demonstrated that not all wells had MAASP cacluations completed, and therefore not all\nannular gas occurences were evaluated based on an operator-defined threshold.\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.\nANR failed to follow its written procedures for operations, maintenance, and emergencies\nimplementing the requirements of API RP 1170 and API RP 1171. Specifically, ANR failed to\ninspect the mastervalves on an annual basis as required in its procedure TEP-PR-WESTS-G,\nWellheads and Wellhead Valves Monitoring, Testing, and Maintenance.\nANR’s procedure TEP-PR-WESTS-G, Wellheads and Wellhead Valves Monitoring, Testing, and\nMaintenance states that master valves will be inspected and tested annually.\nDuring the field inspection at Loreed, the PHMSA inspectors reviewed valve inspection records\nfor the wells at the Loreed storage facilities. Records indicated that in 2018, not all wells had been\nfunction tested. The records indicated approximately 107 of the 198 wells had been inspected\nduring 2018.\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\n120201004W_Warning Letter_01022020_text Page 2 of 3\n\n\n\nCPF 1-2020-1004W\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 ANR Pipeline Co. 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,\nWest Trenton, NJ 08628. Please refer to CPF 1-2020-1004W 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 a 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\n120201004W_Warning Letter_01022020_text Page 3 of 3","truncated":false,"body_characters":6762}