{"operation":"document","citation":"CPF 120201018W","title":"NGO TRANSMISSION, INC. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-04-30","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d), 192.12(e).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201018w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201018w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201018w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120201018W","body":"Warning Letter involving NGO TRANSMISSION, INC.. PHMSA's enforcement data identifies the cited regulations as 192.12(d),  192.12(e). The case was opened on 2020-04-30 and is reported as closed as of 2020-04-30. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120201018W_Operator Response to Notice_08062020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201018W/120201018W_Operator%20Response%20to%20Notice_08062020.pdf\n\n120201018W_Warning Letter_04302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201018W/120201018W_Warning%20Letter_04302020.pdf\n\n120201018W_Warning Letter_04302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201018W/120201018W_Warning%20Letter_04302020_text.pdf\n\n120201018W_Warning Letter_04302020_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nApril 30, 2020\nMr. Dan McVey\nChief Operating Officer\nNGO Transmissions, INC.\n1500 Granville Road\nNewark, OH 43058-4970\nCPF 1-2020-1018W\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 NGO\nTransmission, Inc. (NGO)’s underground natural gas storage records for the Perry, Muskie and Zane\nstorage fields in Perrry County and Muskingum County, Ohio.\nAs a result of the inspection, it is alleged that NGO has committed probable violations of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the\nprobable violations are:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Each underground natural gas storage facility that uses a depleted\nhydrocarbon reservoir or an aquifer reservoir for gas storage, including\nthose constructed not later than July 18, 2017 must meet the operations,\nmaintenance, integrity demonstration and verification, monitoring, threat\nand hazard identification, assessment, remediation, site security,\nemergency response and preparedness, and recordkeeping requirements\nand recommendations of API RP 1171, sections 8, 9, 10, and 11\n(incorporated by reference, see §192.7) by January 18, 2018.1\n1 The final rule, Pipeline Safety: Safety of Underground Natural Gas Storage Facilities, 85 FR 8104 (February 12,\n2020), revised § 192.12. This requirement is still present but is now codified in § 192.12(b)(2).\n\n\n\nCPF 1-2020-1018W\nNGO failed to meet the applicable requirements and recommendations of API RP 1171, Section\n8. Specifically, NGO’s records did not demonstrate that appropriate data was collected and used to\ndetermine susceptibility to threats and hazard-related events for a well at the Perry storage field, as\nrequired by API RP 1171, Section 8.3.2 Data Sources (Section 8.3.2).\nSection 8.3.2 states:\nThe operator shall use available information such as performance data collected\nthrough the field history, operations and maintenance (O&M) activities, geotechnical\ndata such as well logs, engineering data, and completion reports to determine\nsusceptibility to threat and hazard-related events and to assess threat and hazard\ninteraction.\nDuring the inspection, records failed to demonstrate that appropriate data was used for the Cotterman\nwell-site assessment within the Perry storage field. The Cotterman well-site was assessed as a low\nrisk well, however there was no data to support the low risk assessment.\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(e) Operators of underground gas storage facilities must establish and\nfollow written procedures for operations, maintenance, and emergencies\nimplementing the requirements of API RP 1170 and API RP 1171, as\nrequired under this section, including the effective dates as applicable, and\nincorporate such procedures into their written procedures for operations,\nmaintenance, and emergencies established pursuant to §192.605.\nNGO failed to follow its written procedures for operations, maintenance and emergencies\nimplementing the requirements of API RP 1171. Specifically, NGO’s records did not demonstrate\nthat their emergency preparedness/response plan (ER Plan) was evaluated for effectiveness within the\ndefined frequency of its procedures that were developed to comply with API RP 1171, Section 11.4.2\nPlan Effectiveness (Section 11.4.2).\nSection 11.4.2 states:\nThe operator shall establish a program to determine operator familiarity with\nemergency plans and procedures and periodic testing of the effectiveness of the plan\nin accordance with 10.6 Emegency Preparedness/Emergency Response.\nDuring the inspection, it was established that NGO’s program requires annual evaluation of the ER\nPlan for effectiveness. However, NGO failed to produce records demonstrating that the ER Plan\nwas evaluated for effectiveness in 2018.\n2 The final rule, Pipeline Safety: Safety of Underground Natural Gas Storage Facilities, 85 FR 8104 (February 12, 2020),\nrevised § 192.12. This requirement is still present but is now codified in § 192.12(c).\n120201018W_Warning Letter_04302020_text Page 2 of 3\n\n\n\nCPF 1-2020-1018W\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, 2019,\nthe maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not\nto exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum\npenalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed\n$2,000,000 for a related series of violations. We have reviewed the circumstances and supporting\ndocuments involved in this case, and have decided not to conduct additional enforcement action or\npenalty assessment proceedings at this time. We advise you to correct the item identified in this letter.\nFailure to do so will result in NGO being subject to additional enforcement action.\nBe advised that all material you submit in response to this enforcement action is subject to being made\npublicly 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 1-2020-1018W on each document you submit, and\nwhenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed to\nrobert.burrough@dot.gov. Larger files should be sent on USB flash drive accompanied by the original\npaper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCC: Don Wheeler, Operations Manager, NGO Transmission, Inc. (via email)\n120201018W_Warning Letter_04302020_text Page 3 of 3","truncated":false,"body_characters":7544}