{"operation":"document","citation":"CPF 120201016M","title":"NGO TRANSMISSION, INC. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-04-30","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201016m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201016m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201016m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120201016M","body":"Notice of Amendment involving NGO TRANSMISSION, INC.. PHMSA's enforcement data identifies the cited regulation as 192.12(e). The case was opened on 2020-04-30 and is reported as closed as of 2021-03-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120201016M_Closure Letter_03112021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201016M/120201016M_Closure%20Letter_03112021.pdf\n\n120201016M_Closure Letter_03112021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201016M/120201016M_Closure%20Letter_03112021_text.pdf\n\n120201016M_Notice of Amendment_04302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201016M/120201016M_Notice%20of%20Amendment_04302020.pdf\n\n120201016M_Notice of Amendment_04302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201016M/120201016M_Notice%20of%20Amendment_04302020_text.pdf\n\n120201016M_Operator Response to Notice_08062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201016M/120201016M_Operator%20Response%20to%20Notice_08062020.pdf\n\n120201016M_Notice of Amendment_04302020_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nApril 30, 2020\nMr. Dan McVey\nChief Operating Officer\nNGO Transmission, Inc.\n1500 Granville Road\nNewark, OH 43058-4970\nCPF 1-2020-1016M\nDear Mr. McVey:\nFrom October 8 - 10, 2019, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nNGO Transmission, Inc. (NGO)’s procedures for Underground Natural Gas Storage (UNGS) in\nHebron, Ohio.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nNGO’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 § 192.605.1\nNGO’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, NGO’s Storage Risk Management Plan (SRMP) did not require a periodic review of\nthe risk assessment to update information and evaluate risk management effectiveness in\naccordance with API RP 1171, Section 8.5.2 Methodology (Section 8.5.2).\n1 The final rule, Pipeline Safety: Safety of Underground Natural Gas Storage Facilities, 85 FR 8104 (February 12,\n2020), revised § 192.12. The requirement cited in this Notice of Amendment is still present but is now codified in\n§ 192.12(c).\n\n\n\nCPF 1-2020-1016M\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 evaluate risk\nmanagement effectiveness.\nAt the time of the inspection, NGO’s SRMP did not define a regular frequency for performing\nreviews of risk assessment results in accordance with Section 8.5.2.\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.\nNGO’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, NGO’s SRMP did not describe how preventive and mitigative (P&M) measures were\nidentified and implemented, in accordance with API RP 1171, Section 8.6.2 Methodology (Section\n8.6.2).\nSection 8.6.2 states in part:\nThe operator shall develop P&M measures to manage risks.\nAt the time of the inspection, NGO’s written procedures failed to address how P&M measures\nwere determined to manage risk, based on site-specific conditions, in accordance with Section\n8.6.2.\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\npursuant to § 192.605.\n120201016M_Notice of Amendment_04302020_text Page 2 of 5\n\n\n\nCPF 1-2020-1016M\nNGO’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, NGO’s SRMP requirements did not adequately account for site specific\ncharacteristics for each reservoir and well, in accordance with API RP 1171, Section 9.2.1 Integrity\nMaintenance (Section 9.2.1).\nSection 9.2.1 states:\nThe operator shall maintain functional integrity of storage wells and reservoirs. Storage\nwells and reservoirs can have different characteristics resulting in unique requirements in\napproaching integrity demonstration, verification, and monitoring.\nDuring the inspection, it was established that Muskie storage field has 5 injection/withdrawal wells\nand 4 constant withdrawal-only wells that do not cycle with the field. These site-specific\ncharacteristics were not accounted for in the integrity monitoring program and may warrant unique\nrequirements in approaching integrity demonstration, verification, and monitoring per section\n9.2.1.\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.\nNGO’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, NGO’s SRMP did not use a risk-based approach for developing the integrity\ndemonstration, verification, and monitoring tasks, as required by API RP 1171, Section 9.2.2 Risk-\nbased Evaluation (Section 9.2.2).\nSection 9.2.2 states in part:\nRisk assessments shall be used as a basis for developing the integrity demonstration,\nverification, and monitoring tasks and evaluating their frequency requirements.\nAt the time of the inspection, NGO’s written procedures failed to address how risk assessments fit\ninto the risk management plan. Risk assessments shall drive storage reservoir and well integrity\nmonitoring practices in accordance with Section 9.2.2.\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\n120201016M_Notice of Amendment_04302020_text Page 3 of 5\n\n\n\nCPF 1-2020-1016M\napplicable, and incorporate such procedures into their written\nprocedures for operations, maintenance, and emergencies established\npursuant to § 192.605.\nNGO’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, NGO’s SRMP did not include a process to integrate initial and subsequent well\nintegrity evaluations into the risk management program, as required by API RP 1171, Section 9.3.1\nWell Integrity Evaluation (Section 9.3.1).\nSection 9.3.1 states in part:\nActive well mechanical integrity evaluations shall include initial and subsequent\nevaluations as determined using the risk assessment and the information derived from the\ninitial evaluation.\nAt the time of the inspection, NGO’s SRMP did not outline procedures to utilize NGO’s integrity\nevaluations within its risk management program in accordance with Section 9.3.1.\n6. § 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.\nNGO’s written procedures for implementing the requirements of API RP 1171 were inadequate.\nSpecifically, NGO’s Emergency Response Plan (ER) did not address natural disasters and third\nparty emergencies for site security and safety, as required by API RP 1171, Section 10.6.1\nEmergency Preparedness/Emergency Response Plan (Section 10.6.1).\nSection 10.6.1 states in part:\nFor site security and safety, the operator shall develop and implement a structured\nemergency preparedness/response plan in order to address accidental releases, equipment\nfailures, natural disasters, and third-party emergencies.\nAt the time of the inspection, NGO’s ER Plan addressed general emergencies but did not\nspecifically address natural disasters and third-party emergencies in accordance with Section\n10.6.1.\n120201016M_Notice of Amendment_04302020_text Page 4 of 5\n\n\n\nCPF 1-2020-1016M\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 NGO Transmission, Inc. maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, PHMSA Eastern Region,\n840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer to CPF 1-2020-1016M\non each document you submit, and whenever possible provide a signed PDF copy in electronic\nformat. Smaller files may be emailed to. Larger files should be sent on USB flash drive\naccompanied by the original paper copy to the Eastern Region 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\nCC: Don Wheeler, Operations Manager, NGO Transmission, Inc. (via email)\n120201016M_Notice of Amendment_04302020_text Page 5 of 5\n\n120201016M_Closure Letter_03112021_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nMarch 11, 2021\nMr. Dan McVey\nChief Operationg Officer\nNGO Transmission, Inc.\n1500 Granville Road\nNewark, Ohio 43058-4970\nCPF 1-2020-1016M\nDear Mr. McVey:\nFrom October 8-10, 2019, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nNGO Transmission, Inc.’s (NGO) procedures for Underground Natural Gas Storage in Hebron,\nOhio. As a result of the inspection, NGO was issued a Notice of Amendment on April 30, 2020,\nwhich proposed amendment of your procedures.\nNGO submitted its amended procedures on February 2, 2021. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\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":13865}