{"operation":"document","citation":"CPF 120201029M","title":"UGI ENERGY SERVICES — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-07-16","effective_on":null,"summary":"CLOSED notice of amendment citing 192.605(b)(2), 192.605(b)(3), 192.605(b)(8), 192.907(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201029m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201029m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120201029m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120201029M","body":"Notice of Amendment involving UGI ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulations as 192.605(b)(2),  192.605(b)(3),  192.605(b)(8),  192.907(a). The case was opened on 2020-07-16 and is reported as closed as of 2020-10-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120201029M_Closure Letter_10012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201029M/120201029M_Closure%20Letter_10012020.pdf\n\n120201029M_Closure Letter_10012020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201029M/120201029M_Closure%20Letter_10012020_text.pdf\n\n120201029M_Notice of Amendment_07162020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201029M/120201029M_Notice%20of%20Amendment_07162020.pdf\n\n120201029M_Notice of Amendment_07162020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201029M/120201029M_Notice%20of%20Amendment_07162020_text.pdf\n\n120201029M_Operator Response to Notice_08142020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120201029M/120201029M_Operator%20Response%20to%20Notice_08142020.pdf\n\n120201029M_Closure Letter_10012020_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nOctober 1, 2020\nJoseph L. Hartz\nPresident\nUGI Energy Services\n1 Meridian Blvd\nWyomissing, PA 19610\nCPF 1-2020-1029M\nDear Mr. Hartz:\nOn August 5 - 15, 2019, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an on-\nsite pipeline safety inspection of UGI Energy Service’s (UGI) procedures in Meshoppen,\nAllentown, and Mansfield, Pennsylvania. As a result of the inspection, UGI was issued a Notice\nof Amendment on July 16, 2020, which proposed amendment of your procedures.\nUGI submitted its amended procedures on or about August 17, 2020. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\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\n\n120201029M_Notice of Amendment_07162020_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nJuly 16, 2020\nJoseph L. Hartz\nPresident\nUGI Energy Services\n835 Knitting Mills Way\nWyomissing, PA 19610\nCPF 1-2020-1029M\nDear Mr. Hartz:\nFrom August 5 – 15, 2019, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) performed\nan integrated inspection of UGI Energy Service’s (UGI) records and procedures at your facilities\nin Meshoppen, Allentown, and Mansfield, Pennsylvania.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nUGI’s plans or procedures, as described below:\n1. § 192.605 Procedure manual for operations, maintenance and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(2) Controlling corrosion in accordance with the operation and\nmaintenance requirements of subpart I of this part.\nUGI’s manual for operations, maintenance and emergencies was inadequate. Specifically, UGI’s\n001-04-SP-101, General Specification, Below Grade Coating Specification, dated May 20, 2015\n(Coating Specification) failed to address the field coating of girth welds.\nThe Coating Specification did not address the field coating of girth welds. The Coating\nSpecification also did not include information such as the characteristics of coatings to be used,\nsurface preparation requirements, and application standards specific to field coating of girth welds.\n\n\n\nCPF 1-2020-1029M\nTherefore, UGI’s Coating Specification was inadequate with regard to field coating of girth welds\nas it applies to § 192.455(a)(1)1. UGI must amend its Coating Specification to include procedures\nfor field coating of girth welds.\n2. § 192.605 Procedure manual for operations, maintenance and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(2) Controlling corrosion in accordance with the operation and\nmaintenance requirements of subpart I of this part.\nUGI’s manual for operations, maintenance and emergencies was inadequate. Specifically, UGI’s\nGas Operations Manual, Procedure 40.30.60, Requirements for Corrosion Control – O & M\nProcedures, last reviewed 7/24/2019 (Corrosion Control Procedure), failed to include sufficient\nguidance regarding the requirements of § 192.467(f).\nSection 192.467(f) states:\nWhere a pipeline is located in close proximity to electrical transmission tower footings,\nground cables or counterpoise, or in other areas where fault currents or unusual risk of\nlightning may be anticipated, it must be provided with protection against damage due\nto fault currents or lightning, and protective measures must also be taken at insulating\ndevices.\nUGI’s Corrosion Control Procedure did not include guidance for determining when protection\nagainst damage from fault currents or lightning is needed. The procedures did not include guidance\nabout how to protect the pipeline facility from fault currents and lightning, did not define what\n‘close proximity’ means, and did not address what determines that a pipeline facility needs\nprotection from lightning or other fault currents.\nTherefore, UGI’s Corrosion Control Procedure was inadequate regarding the requirements of\n§ 192.467(f). UGI must amend its Corrosion Control Procedure to include guidance for\ndetermining when protection against damage from fault currents or lightning is needed.\n1 Section 192.455(a)(1) states:\n(a) Except as provided in paragraphs (b), (c), (f) and (g) of this section, each buried or submerged pipeline installed\nafter July 31, 1971, must be protected against external corrosion, including the following:\n(1) It must have an external protective coating meeting the requirements of § 192.461.\n120201029M_Notice of Amendment_07162020_text Page 2 of 6\n\n\n\nCPF 1-2020-1029M\n3. § 192.605 Procedure manual for operations, maintenance and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(2) Controlling corrosion in accordance with the operation and\nmaintenance requirements of subpart I of this part.\nUGI’s manual for operations, maintenance and emergencies was inadequate. Specifically, UGI’s\nCorrosion Control Procedure failed to include sufficient guidance regarding the requirements of\n§ 192.481(c).\nSection 192.481(c) states that: “If atmospheric corrosion is found during an inspection, the\noperator must provide protection against the corrosion as required by §192.479.”\nDuring the inspection, the PHMSA inspector reviewed records of atmospheric inspections\nperformed within the last 6 years. On some of the reports, atmospheric corrosion was noted as\nbeing light or severe, yet the pipe coating was left as found. When asked to provide further\nclarification, UGI was unable to provide clear guidance for differentiating between light and severe\ncorrosion, or the criteria used to determine when pipe impacted by corrosion should be repaired.\nUGI was also unable to provide a follow-up mitigation/repair action plan with appropriate\ntimeframes for mitigating atmospheric corrosion. UGI provided its Corrosion Control Procedure,\nbut it failed to address these aspects of atmospheric corrosion inspection and follow up.\nTherefore, UGI’s Corrosion Control Procedure was inadequate regarding the requirements of\n§ 192.481(c). UGI must amend its Corrosion Control Procedure to correct this deficiency.\n4. § 192.605 Procedure manual for operations, maintenance and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(3) Making construction records, maps, and operating history\navailable to appropriate operating personnel.\nUGI’s manual for operations, maintenance and emergencies was inadequate. Specifically, UGI\nEnergy Services Gas Operations Manual (GOM) failed to include a procedure addressing the\nrequirements of § 192.605(b)(3).\nUGI Energy Services GOM did not include a procedure for making construction records, maps,\nand operating history available to appropriate operating personnel, if applicable, to provide safety\nduring maintenance and operations.\n120201029M_Notice of Amendment_07162020_text Page 3 of 6\n\n\n\nCPF 1-2020-1029M\nTherefore, UGI’s O&M Manual was inadequate regarding the requirements of § 192.605(b)(3).\nUGI must amend its O&M Manual to address this requirement.\n5. § 192.605 Procedure manual for operations, maintenance and emergencies.\n(a) …\n(b) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following,\nif applicable, to provide safety during maintenance and operations.\n(1) …\n(8) Periodically reviewing the work done by operating personnel to\ndetermine the effectiveness, and adequacy of the procedures used in\nnormal operations and maintenance and modifying the procedures\nwhen deficiencies are found.\nUGI’s manual for operations, maintenance and emergencies was inadequate. Specifically, UGI’s\nGOM failed to include a procedure addressing the requirements of § 192.605(b)(8).\nSection 3.1 of UGI’s GOM 30.10.10 assigned responsibility for review and necessary modification\nof the GOM to the Midstream Engineering Group. However, the procedure did not include a\nrequirement to perform a review of operating personnel’s work to determine the effectiveness and\nadequacy of the procedures used for normal operations and maintenance.\nTherefore, UGI’s GOM was inadequate regarding the requirements of § 192.605(b)(8). UGI must\namend its GOM to address this requirement.\n6. § 192.907 What must an operator do to implement this subpart?\n(a) General. No later than December 17, 2004, an operator of a\ncovered pipeline segment must develop and follow a written integrity\nmanagement program that contains all the elements described in §\n192.911 and that addresses the risks on each covered transmission\npipeline segment. The initial integrity management program must\nconsist, at a minimum, of a framework that describes the process for\nimplementing each program element, how relevant decisions will be\nmade and by whom, a time line for completing the work to implement\nthe program element, and how information gained from experience will\nbe continuously incorporated into the program. The framework will\nevolve into a more detailed and comprehensive program. An operator\nmust make continual improvements to the program.\nUGI’s integrity management program procedures were inadequate. Specifically, UGI’s\nTransmission Line Integrity Management Program, dated 12/04/2018 (TIMP), failed to include a\nprocess for performing risk analysis to determine if an automatic shut off (ASV) or remote control\nvalve (RCV) would be an efficient means of adding protection to a high consequence area in the\nevent of a gas release, in accordance with § 192.935(c).\n120201029M_Notice of Amendment_07162020_text Page 4 of 6\n\n\n\nCPF 1-2020-1029M\nSection 192.935(c) states:\nAutomatic shut-off valves (ASV) or Remote-control valves (RCV). If an operator\ndetermines, based on a risk analysis, that an ASV or RCV would be an efficient means\nof adding protection to a high consequence area in the event of a gas release, an operator\nmust install the ASV or RCV. In making that determination, an operator must, at least,\nconsider the following factors-- swiftness of leak detection and pipe shutdown\ncapabilities, the type of gas being transported, operating pressure, the rate of potential\nrelease, pipeline profile, the potential for ignition, and location of nearest response\npersonnel.\nUGI’s TIMP, Section 11 - Preventive and Mitigative Measures, did not have a risk-based\nmethodology for determining if an ASV or RCV should be added. A procedure providing guidance\non how a risk-based study should be undertaken regarding the need for an ASV or RCV,\nconsidering the factors outlined in § 192.935(c), was not included in the plan.\nTherefore, UGI’s TIMP failed to include all the elements described in § 192.911, as required by §\n192.907(a). UGI must amend its TIMP to adequately address performing a risk-based study in\naccordance with § 192.935(c).\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 UGI Energy Services 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,\n120201029M_Notice of Amendment_07162020_text Page 5 of 6\n\n\n\nCPF 1-2020-1029M\n840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. Please refer to CPF 1-2020-1029M\non each document you submit, and whenever possible provide a signed PDF copy in electronic\nformat. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should be sent on\nUSB flash drive accompanied 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\n120201029M_Notice of Amendment_07162020_text Page 6 of 6","truncated":false,"body_characters":15776}