# UGI ENERGY SERVICES — Notice of Probable Violation

- **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:** Not available
- **summary:** CLOSED notice of probable violation citing 193.2441(b), 193.2623(b), 193.2623(c), 193.2623(d), 193.2639(a).
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- **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.

Official case documents:

12021018NOPV_Closure Letter_10062022_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Closure%20Letter_10062022_(20-172065).pdf

12021018NOPV_Closure Letter_10062022_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Closure%20Letter_10062022_(20-172065)_text.pdf

12021018NOPV_Final Order_12082021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Final%20Order_12082021_(20-172065).pdf

12021018NOPV_Final Order_12082021_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_Final%20Order_12082021_(20-172065)_text.pdf

12021018NOPV_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

12021018NOPV_PCP PCO (Amended)_10142021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO%20(Amended)_10142021_(20-172065).pdf

12021018NOPV_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

12021018NOPV_PCP PCO_06242021_(20-172065).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO_06242021_(20-172065).pdf

12021018NOPV_PCP PCO_06242021_(20-172065)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021018NOPV/12021018NOPV_PCP%20PCO_06242021_(20-172065)_text.pdf

12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text.pdf

AMENDED NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
OVERNIGHT EXPRESS DELIVERY
October 14, 2021
Mr. Joseph Hartz
Vice President Asset Management
UGI Energy Services
1 Meridian Blvd
Wyomissing, PA 19610
CPF 1-2021-018-NOPV
Dear Mr. Hartz:
From November 9, 2020 to November 18, 2020, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter
601 of 49 United States Code (U.S.C.) inspected UGI Energy Services’ (UGI) procedures and
records for the Temple LNG Plant in Reading, Pennsylvania.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 193.2441 Control center.
Each LNG plant must have a control center from which operations
and warning devices are monitored as required by this part. A control
center must have the following capabilities and characteristics:
(a) ...
(b) Each remotely actuated control system and each automatic
shutdown control system required by this part must be operable from
the control center.



CPF 1-2021-018-NOPV
UGI’s control centers used for monitoring operations failed to have the required capabilities and
characteristics. Specifically, UGI failed to have each of its remotely actuated control systems and
each automatic shutdown control system operable from its off-site control center location.
During the inspection, the PHMSA inspector requested data regarding UGI’s control center
monitoring operations and questioned UGI’s ability to operate each control system and automatic
shutdown device from its off-site control center.
UGI stated that the Reading, Pennsylvania Temple LNG plant is manned and has all monitoring
capabilities and functions Monday through Friday from 0600 hours to 1530 hours. Outside of
these timeframes monitoring is done via a 3rd party from an off-site control center site in
Pennsylvania. The off-site control center responds to alarms as needed and will contact UGI
technicians to respond, who are required to be within 45 minutes of the LNG plant. The only
operating functions the off-site control center has is to emergency shut down the entire LNG plant.
The off-site control center does not have control of UGI’s remotely actuated control systems and
each automatic shutdown control system.
UGI also provided its LNG Emergency Procedures Manual, Chapter 4 (Procedure). However,
this Procedure did not discuss or mention any functions or monitoring capabilities of the main
control center nor the off-site control center.
When the PHMSA inspector asked UGI how they maintain operation and control of each control
system and automatic shutdown control system when the Reading, Pennsylvania control center is
not manned, UGI’s subject matter engineering expert stated that the offsite control center does not
have full functionality to control the plant and that it has been operated like this for some time.
Therefore, UGI failed to have each remotely actuated control system and each automatic shutdown
control system operable from its off-site control center location in accordance with § 193.2441(b).
2. § 193.2623 Inspecting LNG storage tanks.
Each LNG storage tank must be inspected or tested to verify that
each of the following conditions does not impair the structural integrity
or safety of the tank:
(a) …
(b) Inner tank leakage.
(c) Effectiveness of insulation.
(d) Frost heave.
UGI failed to inspect or test its LNG storage tanks. Specifically, UGI failed to inspect or test its
LNG Temple II storage tank to verify that inner tank leakage, effectiveness of insulation and frost
heave do not impair the structural integrity or safety of the tank.
During the inspection, the PHMSA inspector requested records for LNG storage tank Temple T-
II for calendar years 2018 – 2019. UGI provided Temple T-II LNG Tank Foundation Elevation
Survey, dated 5/31/19 and Temple T-II Tank Foundation Elevation Survey, dated 5/29/18
(Records).
12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 2 of 6



CPF 1-2021-018-NOPV
When the PHMSA inspector asked UGI how they inspect or test tank T-II for inner tank leakage,
effectiveness of insulation and front heave, UGI stated that it is a concrete walled tank and they do
not conduct the inspections or tests.
In email communication subsequent to the inspection when the PHMSA inspector again requested
inspection or testing records for Temple T-II tank, UGI stated, “Because of the design of T2,
instead of doing a periodic monitor of the tank for inner tank leakage and insulation effectiveness
an engineering solution was created. There are multiple temperature sensors in between the tank
and the outer containment that constantly detect for leakage. If these sensors detected a low enough
temperature it would create an alarm on the HMI to alert the operator. Going through the alarm
logs I found four instances since January 2018 of alarms related to the T2 tank. None of these were
in relation to the previously mentioned temperature sensors. I’ve included these four alarm
responses for your review.”
However, the alarm log records do not indicate the required inspection and testing data. The use
of temperature sensors that UGI discussed was not documented in any UGI procedure.
Furthermore, installing temperature sensors in between the tank and the outer containment to
detect for leakage (only) does not satisfy the inspection or testing requirements in § 193.2623.
Therefore, UGI failed to inspect its storage tank Temple T-II during calendar years 2018 and 2019
in accordance with § 193.2623.
3. § 193.2639 Maintenance records.
(a) Each operator shall keep a record at each LNG plant of the date
and type of each maintenance activity performed on each component
to meet the requirements of this part. For each LNG facility that is
designed and constructed after March 31, 2000 the operator shall also
maintain related periodic inspection and testing records that NFPA-
59A-2001 (incorporated by reference, see § 193.2013) requires.
Maintenance records, whether required by this part or NFPA 59A
must be kept for a period of not less than five years.
UGI failed to maintain a record of each maintenance activity performed on each component at its
LNG plant to meet the requirements of Part 193. Specifically, UGI failed to maintain its 2019 fire
extinguisher records for Temple I and Temple II facilities at its LNG plant.
During the inspection, the PHMSA inspector requested records for calendar year 2019 for fire
extinguisher inspections. UGI could not provide any records of these inspections during the
PHMSA inspection. The PHMSA inspector asked whether the inspection was conducted and if so,
if a record was generated, and UGI stated they were searching for the information.
When the PHMSA inspector re-requested this information subsequent to the inspection, UGI stated
via email communication, “For the 2019 fire extinguisher inspection UGIES only has the invoice.
We are currently working with Kistler-O’Brien to clean up these records and ensure we have all
the appropriate copies on hand at the facility. Kistler-O’Brien is providing us a copy of the 2019
results as soon as possible. I will forward this over to you as soon as we have it.” And, “The fire
12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 3 of 6



CPF 1-2021-018-NOPV
extinguisher records are kept in paper format at Temple. After searching in the folder containing
the other fire extinguisher records I was unable to find the 2019 records. I then began combing
through other paper records at Temple and was still unable to find this. It appears it has been
misplaced. I then reached out to Kistler-O'Brien to request an electronic copy as a replacement.
Yesterday (12/18) they responded to me and provided the record requested. You'll see it's in the
same format as the 2020 extinguisher inspection record. I've attached this to this email."
Therefore, UGI failed to maintain its records of its 2019 fire extinguisher inspection records, in
accordance with § 193.2639(a).
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related
series of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,
the maximum penalty may not exceed $222,504 per violation per day the violation persists, up to
a maximum of $2,225,034 for a related series of violations. For violation occurring on or after
July 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per
violation per day the violation persists, up to a maximum of $2,186,465 for a related series of
violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the
maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to
exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November
27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum
penalty not to exceed $2,090,022. Also, for each violation involving LNG facilities, and additional
penalty of not more than $82,245 occurring on or after May 3, 2021 may be imposed. For each
violation involving LNG facilities, an additional penalty of not more than $81,284 occurring on or
after January 11, 2021 and before May 3, 2021 may be imposed. For each violation involving
LNG facilities, an additional penalty of not more than $79,875 occurring on or after July 31, 2019
and before January 11, 2021 may be imposed. For each violation involving LNG facilities, an
additional penalty of not more than $77,910 occurring on or after November 27, 2018 and before
July 31, 2019 may be imposed. For each violation involving LNG facilities occurring on or after
November 2, 2015 and before November 27, 2018, an additional penalty of not more than $76,352
may be imposed.
We have reviewed the circumstances and supporting documentation involved for the above
probable violations and recommend that you be preliminarily assessed a civil penalty of $27,400
as follows:
Item number
PENALTY
2
$27,400
Warning Item
With respect to Item 3, we have reviewed the circumstances and supporting documents involved
in this case and have decided not to conduct additional enforcement action or penalty assessment
proceedings at this time. We advise you to promptly correct this item. Failure to do so may result
in additional enforcement action.
12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text
Page 4 of 6



CPF 1-2021-018-NOPV
Proposed Compliance Order
With respect to Item 1, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety
Administration proposes to issue a Compliance Order to UGI Energy Services. Please refer to the
Proposed Compliance Order, which is enclosed and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in
Enforcement Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be made publicly available. If you
believe that any portion of your responsive material qualifies for confidential treatment under 5
U.S.C. 552(b), along with the complete original document you must provide a second copy of the
document with the portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for confidential treatment under
5 U.S.C. 552(b).
Following the receipt of this Notice, you have 30 days to submit written comments, or request a
hearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,
this constitutes a waiver of your right to contest the allegations in this Notice and authorizes the
Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further
notice to you and to issue a Final Order. If you are responding to this Notice, we propose that you
submit your correspondence to my office within 30 days from receipt of this Notice. This period
may be extended by written request for good cause.
In your correspondence on this matter, please refer to CPF 1-2021-018-NOPV and, for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Enforcement Proceedings
12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 5 of 6



CPF 1-2021-018-NOPV
PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to UGI Energy Services (UGI) a Compliance Order
incorporating the following remedial requirements to ensure the compliance of UGI Energy
Services with the pipeline safety regulations:
A. B. In regard to Item 1 of the Notice pertaining to UGI’s control center monitoring,
UGI must bring each LNG Plant control center location it utilizes under
§ 193.2441 into compliance with § 193.2441(b). Specifically, UGI must submit a
work plan and schedule of action detailing how they will demonstrate compliance
with § 193.2441(b). The work plan will demonstrate compliance when each LNG
Plant control center location has the ability to remotely actuate each control
system and each automatic shutdown control system is fully operable from the
control center location. UGI must submit the work plan and schedule of action
within 30 days of receipt of the Final Order to the Director, Eastern Region. Prior
to implementation of the plan and schedule, PHMSA Eastern Region will review
and approve the plan and schedule. UGI must begin to implement the plan and
schedule within 30 days of receipt of the Region’s approval.
It is requested (not mandated) that UGI Energy Services maintain documentation
of the safety improvement costs associated with fulfilling this Compliance Order
and submit the total to Robert Burrough, Director, Eastern Region, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be
reported in two categories: 1) total cost associated with preparation/revision of
plans, procedures, studies and analyses, and 2) total cost associated with
replacements, additions and other changes to pipeline infrastructure.
12021018NOPV_PCP PCO (Amended)_10142021_(20-172065)_text Page 6 of 6

12021018NOPV_Closure Letter_10062022_(20-172065)_text.pdf

OVERNIGHT EXPRESS DELIVERY
October 6, 2022
Mr. Joseph Hartz
President, Energy Services
UGI Energy Services
1 Meridian Boulevard
Wyomissing, PA 19610
CPF 1-2021-018-NOPV
Dear Mr. Hartz:
On December 8, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)
issued to UGI Energy Services a Final Order in the above-referenced case. This Order included a
Compliance Order. Based on our review of the documentation you provided and confirmation of
payment of the civil penalty, it has been determined that you have complied with the terms of this
Order.
Accordingly, this case is now closed and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration

12021018NOPV_Final Order_12082021_(20-172065)_text.pdf

December 8, 2021
VIA ELECTRONIC MAIL TO: jhartz@ugies.com
Mr. Joseph Hartz
President
UGI Energy Services, LLC
1 Meridian Boulevard
Wyomissing, Pennsylvania 19610
Re: CPF No. 1-2021-018-NOPV
Dear Mr. Hartz:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a civil penalty of $27,400, and specifies actions that need to be taken to
comply with the pipeline safety regulations. When the civil penalty has been paid and the terms
of the compliance order are completed, as determined by the Director, Eastern Region, this
enforcement action will be closed. Service of the Final Order by e-mail is effective upon the
date of transmission as provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosures (Final Order and NOPV)
cc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA
Mr. Frank H. Markle, Senior Counsel, UGI Corporation, marklef@ugicorp.com
Mr. Keith Coyle, Counsel for UGI Energy Services, LLC, Babst Calland,
kcoyle@babstcalland.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
UGI Energy Services, LLC, ) CPF No. 1-2021-018-NOPV
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
On October 14, 2021, pursuant to 49 C.F.R. § 190.207, the Director, Eastern Region, Office of
Pipeline Safety (OPS), issued an Amended Notice of Probable Violation (Notice) to UGI Energy
Services, LLC (Respondent).1 The Notice proposed finding that Respondent had violated the
pipeline safety regulations in 49 C.F.R. Part 193. The Notice also proposed certain measures to
correct the violations. Respondent did not contest the allegations of violation, the proposed civil
penalty, or corrective measures.
Based upon a review of all of the evidence, pursuant to § 190.213, I find Respondent violated the
pipeline safety regulations listed below, as more fully described in the enclosed Notice, which is
incorporated by reference:
49 C.F.R. § 193.2441 (Item 1) ─ Respondent failed to have the required
capabilities and characteristics at its control centers used for monitoring
operations because each of its remotely actuated control systems and each
automatic shutdown control system was not operable from its off-site control
center location.
49 C.F.R. § 193.2623 (Item 2) ─ Respondent failed to inspect or test its LNG
Temple II storage tank to verify that inner tank leakage, effectiveness of
insulation, and frost heave do not impair the structural integrity or safety of the
tank.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent. In accordance with 49 C.F.R. § 190.223, I assess Respondent a
total civil penalty of $27,400.
1 The original Notice of Probable Violation was issued on June 24, 2021.



CPF No. 1-2021-018-NOPV
Page 2
Payment of the civil penalty must be made within 20 days of service. Federal regulations (49
C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike
Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.
The Financial Operations Division telephone number is (405) 954-8845.
Failure to pay the $27,400 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
COMPLIANCE ACTIONS
Pursuant to 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the
action proposed in the enclosed Notice to correct the violation. The Director may grant an
extension of time to comply with any of the required items upon a written request timely
submitted by the Respondent and demonstrating good cause for an extension. Upon completion
of ordered action, Respondent may request that the Director close the case. Failure to comply
with this Order may result in the assessment of civil penalties under 49 C.F.R. § 190.223 or in
referral to the Attorney General for appropriate relief in a district court of the United States.
WARNING ITEM
With respect to Item 3, the Notice alleged a probable violation of 49 C.F.R. § 193.2639 but did
not propose a civil penalty or compliance order for this item. Therefore, this is considered to be
a warning item. If OPS finds a violation of this provision in a subsequent inspection,
Respondent may be subject to future enforcement action.
The terms and conditions of this order are effective upon service in accordance with 49 C.F.R.
§ 190.5.
December 8, 2021
___________________________________ _________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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