{"operation":"document","citation":"CPF 120201023W","title":"PACIFIC GAS & ELECTRIC CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-06-12","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201023w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201023w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201023w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120201023W","body":"Warning Letter involving PACIFIC GAS & ELECTRIC CO. PHMSA's enforcement data identifies the cited regulation as 192.12(d). The case was opened on 2020-06-12 and is reported as closed as of 2020-06-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120201023W_Warning Letter_06122020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201023W/120201023W_Warning%20Letter_06122020.pdf\n\n120201023W_Warning Letter_06122020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201023W/120201023W_Warning%20Letter_06122020_text.pdf\n\n120201023W_Warning Letter_06122020_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nJune 12, 2020\nWilliam D. Johnson\nPresident\nPacific Gas and Electric Company\nPO Box 770000 Mail Code H15B\nSan Francisco, CA 94105\nCPF 1-2020-1023W\nDear Mr. Johnson:\nFrom November 19 – 22, 2019, inspectors from the California Geologic Energy Management\nDivision (CalGEM), acting as an Agent for the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected Pacific Gas & Electric Company’s (PG&E) underground natural\ngas storage program and records for the Pleasant Creek (PC) and McDonald Island (MI) intrastate\nunderground natural gas storage (UNGS) facilities in San Joaquin and Yolo Counties, California.\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 item(s) inspected\nand the probable violation(s) 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\n\n\n\nCPF 1-2020-1023W\nJanuary 18, 2018. 1\nPG&E failed to meet applicable requirements and recommendations of API RP 1171, Section 9.\nSpecifically, PG&E failed to demonstrate that the threshold of 225 psi for MI wells incorporated\nengineering and scientific principles, determined from well integrity evaluations and from risk\nassessments, in accordance with API RP 1171, Section 9.3.2, Well Integrity Monitoring (Section\n9.3.2).\nSection 9.3.2 states in part:\nThe operator shall monitor for presence of annular gas by measuring and recording\nannular pressure and/or annular gas flow. The operator shall evaluate each annular\ngas occurrence that exceeds operator- or regulatory-defined threshold levels\ndetermined from well integrity evaluation and from risk assessment.\nAt the time of the inspection, PG&E’s records did not provide documentation of how the 225 psi\nthreshold was determined using well integrity evaluations and risk assessments. Therefore, PG&E\nfailed to meet the requirements of Section 9.3.2.\n2. § 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.\nPG&E failed to meet the applicable requirements and recommendations of API RP 1171, Section\n9. Specifically, PG&E failed to demonstrate that it tested each master valve and wellhead pipeline\nisolation valve at least annually in accordance with API RP 1171, Section 9.3.2, Well Integrity\nMonitoring (Section 9.3.2).\nSection 9.3.2 states in part:\nThe operator shall test the operation of the master valve and wellhead pipeline\nisolation valve at least annually for proper function and ability to isolate the well. The\nvalves shall be maintained, repaired, or replaced in accordance with the operator’s\nvalve maintenance program for isolation valves.\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 Warning Letter is still present but is now codified in\n§ 192.12(b)(2).\n120201023W_Warning Letter_06122020_text Page 2 of 4\n\n\n\nCPF 1-2020-1023W\nAt the time of the inspection, PG&E’s records did not provide documentation of the testing of\nmaster valves for at least eight (8) wells at PC and MI on a frequency of at least annually.\nTherefore, PG&E failed to meet the requirements of Section 9.3.2.\n3. § 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.\nPG&E failed to meet the applicable requirements and recommendations of API RP 1171, Section\n10.4 Signage. Specifically, PG&E failed to install permanent weatherproof signage at each well\nsite for identification purposes in accordance with API RP 1171. Section 10.4.1, Minimum Signage\nInformation (Section 10.4.1).\nSection 10.4.1 states in part that “Permanent weatherproof signage shall be installed at each well\nsite for identification purposes.”\nAt the time of the field inspection, CalGEM observed a lack of signage at each well and a failure\nto use permanent and weatherproof materials at certain wells. Therefore, PG&E failed to meet the\nrequirements of Section 10.4.1.\n4. § 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.\nPG&E failed to meet the applicable requirements and recommendations of API RP 1171, Section\n11. Specifically, PG&E failed to have adequate provisions in place for communication to comply\nwith API RP 1171, Section 11.7, Interaction with Control Room (Section 11.7).\nSection 11.7.1 states that “Storage personnel shall be responsible for preparing and\ncommunicating guidelines for maintaining reservoir and well functional integrity.”\n120201023W_Warning Letter_06122020_text Page 3 of 4\n\n\n\nCPF 1-2020-1023W\nAt the time of the inspection, CalGEM requested PG&E to explain and demonstrate functionality\nof within-facility backup communication at PC and MI. The demonstration failed to show the\nfunctionality of backup communication at each facility. Specifically, the backup radios did not\nfunction as intended. Therefore, PG&E failed to meet the requirements of Section 11.7.1.\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 PGE being subject to additional\nenforcement 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 1-2020-1023W 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: Nick Stavropoulos, Executive Vice President, Gas Operations, Pacific Gas and Electric\nCompany (via email)\nMike Bradley, Senior Manager, Gas Ops Compliance, Pacific Gas and Electric Company\n(via email)\n120201023W_Warning Letter_06122020_text Page 4 of 4","truncated":false,"body_characters":10410}