{"operation":"document","citation":"CPF 12021018NOPV","title":"UGI ENERGY SERVICES — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-06-24","effective_on":null,"summary":"CLOSED notice of probable violation citing 193.2441(b), 193.2623(b), 193.2623(c), 193.2623(d), 193.2639(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021018nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021018nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021018nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021018NOPV","body":"Notice of Probable Violation involving UGI ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulations as 193.2441(b),  193.2623(b),  193.2623(c),  193.2623(d),  193.2639(a). The case was opened on 2021-06-24 and is reported as closed as of 2022-10-06. Proposed civil penalty: $27,400. Assessed civil penalty: $27,400. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021018NOPV_Closure Letter_10062022_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Closure%20Letter_10062022_(20-172065).pdf\n\n12021018NOPV_Closure Letter_10062022_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Closure%20Letter_10062022_(20-172065)_text.pdf\n\n12021018NOPV_Final Order_12082021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Final%20Order_12082021_(20-172065).pdf\n\n12021018NOPV_Final Order_12082021_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Final%20Order_12082021_(20-172065)_text.pdf\n\n12021018NOPV_Operator Response to Notice_11112021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Operator%20Response%20to%20Notice_11112021_(20-172065).pdf\n\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO%20(Amended)_10142021_(20-172065).pdf\n\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO%20(Amended)_10142021_(20-172065)_text.pdf\n\n12021018NOPV_PCP PCO_06242021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO_06242021_(20-172065).pdf\n\n12021018NOPV_PCP PCO_06242021_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO_06242021_(20-172065)_text.pdf\n\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text.pdf\n\nAMENDED NOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nOVERNIGHT EXPRESS DELIVERY\nOctober 14, 2021\nMr. Joseph Hartz\nVice President Asset Management\nUGI Energy Services\n1 Meridian Blvd\nWyomissing, PA 19610\nCPF 1-2021-018-NOPV\nDear Mr. Hartz:\nFrom November 9, 2020 to November 18, 2020, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.) inspected UGI Energy Services’ (UGI) procedures and\nrecords for the Temple LNG Plant in Reading, Pennsylvania.\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 items inspected\nand the probable violations are:\n1. § 193.2441 Control center.\nEach LNG plant must have a control center from which operations\nand warning devices are monitored as required by this part. A control\ncenter must have the following capabilities and characteristics:\n(a) ...\n(b) Each remotely actuated control system and each automatic\nshutdown control system required by this part must be operable from\nthe control center.\n\n\n\nCPF 1-2021-018-NOPV\nUGI’s control centers used for monitoring operations failed to have the required capabilities and\ncharacteristics. Specifically, UGI failed to have each of its remotely actuated control systems and\neach automatic shutdown control system operable from its off-site control center location.\nDuring the inspection, the PHMSA inspector requested data regarding UGI’s control center\nmonitoring operations and questioned UGI’s ability to operate each control system and automatic\nshutdown device from its off-site control center.\nUGI stated that the Reading, Pennsylvania Temple LNG plant is manned and has all monitoring\ncapabilities and functions Monday through Friday from 0600 hours to 1530 hours. Outside of\nthese timeframes monitoring is done via a 3rd party from an off-site control center site in\nPennsylvania. The off-site control center responds to alarms as needed and will contact UGI\ntechnicians to respond, who are required to be within 45 minutes of the LNG plant. The only\noperating functions the off-site control center has is to emergency shut down the entire LNG plant.\nThe off-site control center does not have control of UGI’s remotely actuated control systems and\neach automatic shutdown control system.\nUGI also provided its LNG Emergency Procedures Manual, Chapter 4 (Procedure). However,\nthis Procedure did not discuss or mention any functions or monitoring capabilities of the main\ncontrol center nor the off-site control center.\nWhen the PHMSA inspector asked UGI how they maintain operation and control of each control\nsystem and automatic shutdown control system when the Reading, Pennsylvania control center is\nnot manned, UGI’s subject matter engineering expert stated that the offsite control center does not\nhave full functionality to control the plant and that it has been operated like this for some time.\nTherefore, UGI failed to have each remotely actuated control system and each automatic shutdown\ncontrol system operable from its off-site control center location in accordance with § 193.2441(b).\n2. § 193.2623 Inspecting LNG storage tanks.\nEach LNG storage tank must be inspected or tested to verify that\neach of the following conditions does not impair the structural integrity\nor safety of the tank:\n(a) …\n(b) Inner tank leakage.\n(c) Effectiveness of insulation.\n(d) Frost heave.\nUGI failed to inspect or test its LNG storage tanks. Specifically, UGI failed to inspect or test its\nLNG Temple II storage tank to verify that inner tank leakage, effectiveness of insulation and frost\nheave do not impair the structural integrity or safety of the tank.\nDuring the inspection, the PHMSA inspector requested records for LNG storage tank Temple T-\nII for calendar years 2018 – 2019. UGI provided Temple T-II LNG Tank Foundation Elevation\nSurvey, dated 5/31/19 and Temple T-II Tank Foundation Elevation Survey, dated 5/29/18\n(Records).\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 2 of 6\n\n\n\nCPF 1-2021-018-NOPV\nWhen the PHMSA inspector asked UGI how they inspect or test tank T-II for inner tank leakage,\neffectiveness of insulation and front heave, UGI stated that it is a concrete walled tank and they do\nnot conduct the inspections or tests.\nIn email communication subsequent to the inspection when the PHMSA inspector again requested\ninspection or testing records for Temple T-II tank, UGI stated, “Because of the design of T2,\ninstead of doing a periodic monitor of the tank for inner tank leakage and insulation effectiveness\nan engineering solution was created. There are multiple temperature sensors in between the tank\nand the outer containment that constantly detect for leakage. If these sensors detected a low enough\ntemperature it would create an alarm on the HMI to alert the operator. Going through the alarm\nlogs I found four instances since January 2018 of alarms related to the T2 tank. None of these were\nin relation to the previously mentioned temperature sensors. I’ve included these four alarm\nresponses for your review.”\nHowever, the alarm log records do not indicate the required inspection and testing data. The use\nof temperature sensors that UGI discussed was not documented in any UGI procedure.\nFurthermore, installing temperature sensors in between the tank and the outer containment to\ndetect for leakage (only) does not satisfy the inspection or testing requirements in § 193.2623.\nTherefore, UGI failed to inspect its storage tank Temple T-II during calendar years 2018 and 2019\nin accordance with § 193.2623.\n3. § 193.2639 Maintenance records.\n(a) Each operator shall keep a record at each LNG plant of the date\nand type of each maintenance activity performed on each component\nto meet the requirements of this part. For each LNG facility that is\ndesigned and constructed after March 31, 2000 the operator shall also\nmaintain related periodic inspection and testing records that NFPA-\n59A-2001 (incorporated by reference, see § 193.2013) requires.\nMaintenance records, whether required by this part or NFPA 59A\nmust be kept for a period of not less than five years.\nUGI failed to maintain a record of each maintenance activity performed on each component at its\nLNG plant to meet the requirements of Part 193. Specifically, UGI failed to maintain its 2019 fire\nextinguisher records for Temple I and Temple II facilities at its LNG plant.\nDuring the inspection, the PHMSA inspector requested records for calendar year 2019 for fire\nextinguisher inspections. UGI could not provide any records of these inspections during the\nPHMSA inspection. The PHMSA inspector asked whether the inspection was conducted and if so,\nif a record was generated, and UGI stated they were searching for the information.\nWhen the PHMSA inspector re-requested this information subsequent to the inspection, UGI stated\nvia email communication, “For the 2019 fire extinguisher inspection UGIES only has the invoice.\nWe are currently working with Kistler-O’Brien to clean up these records and ensure we have all\nthe appropriate copies on hand at the facility. Kistler-O’Brien is providing us a copy of the 2019\nresults as soon as possible. I will forward this over to you as soon as we have it.” And, “The fire\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 3 of 6\n\n\n\nCPF 1-2021-018-NOPV\nextinguisher records are kept in paper format at Temple. After searching in the folder containing\nthe other fire extinguisher records I was unable to find the 2019 records. I then began combing\nthrough other paper records at Temple and was still unable to find this. It appears it has been\nmisplaced. I then reached out to Kistler-O'Brien to request an electronic copy as a replacement.\nYesterday (12/18) they responded to me and provided the record requested. You'll see it's in the\nsame format as the 2020 extinguisher inspection record. I've attached this to this email.\"\nTherefore, UGI failed to maintain its records of its 2019 fire extinguisher inspection records, in\naccordance with § 193.2639(a).\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related\nseries of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,\nthe maximum penalty may not exceed $222,504 per violation per day the violation persists, up to\na maximum of $2,225,034 for a related series of violations. For violation occurring on or after\nJuly 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $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. Also, for each violation involving LNG facilities, and additional\npenalty of not more than $82,245 occurring on or after May 3, 2021 may be imposed. For each\nviolation involving LNG facilities, an additional penalty of not more than $81,284 occurring on or\nafter January 11, 2021 and before May 3, 2021 may be imposed. For each violation involving\nLNG facilities, an additional penalty of not more than $79,875 occurring on or after July 31, 2019\nand before January 11, 2021 may be imposed. For each violation involving LNG facilities, an\nadditional penalty of not more than $77,910 occurring on or after November 27, 2018 and before\nJuly 31, 2019 may be imposed. For each violation involving LNG facilities occurring on or after\nNovember 2, 2015 and before November 27, 2018, an additional penalty of not more than $76,352\nmay be imposed.\nWe have reviewed the circumstances and supporting documentation involved for the above\nprobable violations and recommend that you be preliminarily assessed a civil penalty of $27,400\nas follows:\nItem number\nPENALTY\n2\n$27,400\nWarning Item\nWith respect to Item 3, we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct this item. Failure to do so may result\nin additional enforcement action.\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text\nPage 4 of 6\n\n\n\nCPF 1-2021-018-NOPV\nProposed Compliance Order\nWith respect to Item 1, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety\nAdministration proposes to issue a Compliance Order to UGI Energy Services. Please refer to the\nProposed Compliance Order, which is enclosed and made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in\nEnforcement Proceedings. Please refer to this document and note the response options. All\nmaterial you submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that you\nsubmit your correspondence to my office within 30 days from receipt of this Notice. This period\nmay be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 1-2021-018-NOPV and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 5 of 6\n\n\n\nCPF 1-2021-018-NOPV\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to UGI Energy Services (UGI) a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of UGI Energy\nServices with the pipeline safety regulations:\nA. B. In regard to Item 1 of the Notice pertaining to UGI’s control center monitoring,\nUGI must bring each LNG Plant control center location it utilizes under\n§ 193.2441 into compliance with § 193.2441(b). Specifically, UGI must submit a\nwork plan and schedule of action detailing how they will demonstrate compliance\nwith § 193.2441(b). The work plan will demonstrate compliance when each LNG\nPlant control center location has the ability to remotely actuate each control\nsystem and each automatic shutdown control system is fully operable from the\ncontrol center location. UGI must submit the work plan and schedule of action\nwithin 30 days of receipt of the Final Order to the Director, Eastern Region. Prior\nto implementation of the plan and schedule, PHMSA Eastern Region will review\nand approve the plan and schedule. UGI must begin to implement the plan and\nschedule within 30 days of receipt of the Region’s approval.\nIt is requested (not mandated) that UGI Energy Services maintain documentation\nof the safety improvement costs associated with fulfilling this Compliance Order\nand submit the total to Robert Burrough, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration. It is requested that these costs be\nreported in two categories: 1) total cost associated with preparation/revision of\nplans, procedures, studies and analyses, and 2) total cost associated with\nreplacements, additions and other changes to pipeline infrastructure.\n12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 6 of 6\n\n12021018NOPV_Closure Letter_10062022_(20-172065)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nOctober 6, 2022\nMr. Joseph Hartz\nPresident, Energy Services\nUGI Energy Services\n1 Meridian Boulevard\nWyomissing, PA 19610\nCPF 1-2021-018-NOPV\nDear Mr. Hartz:\nOn December 8, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to UGI Energy Services a Final Order in the above-referenced case. This Order included a\nCompliance Order. Based on our review of the documentation you provided and confirmation of\npayment of the civil penalty, it has been determined that you have complied with the terms of this\nOrder.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n12021018NOPV_Final Order_12082021_(20-172065)_text.pdf\n\nDecember 8, 2021\nVIA ELECTRONIC MAIL TO: jhartz@ugies.com\nMr. Joseph Hartz\nPresident\nUGI Energy Services, LLC\n1 Meridian Boulevard\nWyomissing, Pennsylvania 19610\nRe: CPF No. 1-2021-018-NOPV\nDear Mr. Hartz:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation, assesses a civil penalty of $27,400, and specifies actions that need to be taken to\ncomply with the pipeline safety regulations. When the civil penalty has been paid and the terms\nof the compliance order are completed, as determined by the Director, Eastern Region, this\nenforcement action will be closed. Service of the Final Order by e-mail is effective upon the\ndate of transmission as provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures (Final Order and NOPV)\ncc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA\nMr. Frank H. Markle, Senior Counsel, UGI Corporation, marklef@ugicorp.com\nMr. Keith Coyle, Counsel for UGI Energy Services, LLC, Babst Calland,\nkcoyle@babstcalland.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nUGI Energy Services, LLC, ) CPF No. 1-2021-018-NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nOn October 14, 2021, pursuant to 49 C.F.R. § 190.207, the Director, Eastern Region, Office of\nPipeline Safety (OPS), issued an Amended Notice of Probable Violation (Notice) to UGI Energy\nServices, LLC (Respondent).1 The Notice proposed finding that Respondent had violated the\npipeline safety regulations in 49 C.F.R. Part 193. The Notice also proposed certain measures to\ncorrect the violations. Respondent did not contest the allegations of violation, the proposed civil\npenalty, or corrective measures.\nBased upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the\npipeline safety regulations listed below, as more fully described in the enclosed Notice, which is\nincorporated by reference:\n49 C.F.R. § 193.2441 (Item 1) ─ Respondent failed to have the required\ncapabilities and characteristics at its control centers used for monitoring\noperations because each of its remotely actuated control systems and each\nautomatic shutdown control system was not operable from its off-site control\ncenter location.\n49 C.F.R. § 193.2623 (Item 2) ─ Respondent failed to inspect or test its LNG\nTemple II storage tank to verify that inner tank leakage, effectiveness of\ninsulation, and frost heave do not impair the structural integrity or safety of the\ntank.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a\ntotal civil penalty of $27,400.\n1 The original Notice of Probable Violation was issued on June 24, 2021.\n\n\n\nCPF No. 1-2021-018-NOPV\nPage 2\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $27,400 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ACTIONS\nPursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the\naction proposed in the enclosed Notice to correct the violation. The Director may grant an\nextension of time to comply with any of the required items upon a written request timely\nsubmitted by the Respondent and demonstrating good cause for an extension. Upon completion\nof ordered action, Respondent may request that the Director close the case. Failure to comply\nwith this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in\nreferral to the Attorney General for appropriate relief in a district court of the United States.\nWARNING ITEM\nWith respect to Item 3, the Notice alleged a probable violation of 49 C.F.R. § 193.2639 but did\nnot propose a civil penalty or compliance order for this item. Therefore, this is considered to be\na warning item. If OPS finds a violation of this provision in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nThe terms and conditions of this order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nDecember 8, 2021\n___________________________________ _________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":23382}