{"operation":"document","citation":"CPF 12021021NOA","title":"DIVERSIFIED MIDSTREAM LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-11","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(c), 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021021noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021021noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021021noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021021NOA","body":"Notice of Amendment involving DIVERSIFIED MIDSTREAM LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(4). The case was opened on 2021-03-11 and is reported as closed as of 2021-08-24. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021021NOA_Closure Letter_08242021_(20-173094).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021021NOA/12021021NOA_Closure%20Letter_08242021_(20-173094).pdf\n\n12021021NOA_Closure Letter_08242021_(20-173094)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021021NOA/12021021NOA_Closure%20Letter_08242021_(20-173094)_text.pdf\n\n12021021NOA_Notice of Amendment_03112021_(20-173094).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021021NOA/12021021NOA_Notice%20of%20Amendment_03112021_(20-173094).pdf\n\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021021NOA/12021021NOA_Notice%20of%20Amendment_03112021_(20-173094)_text.pdf\n\n12021021NOA_Operator Response to Notice_05042021_(20-173094).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021021NOA/12021021NOA_Operator%20Response%20to%20Notice_05042021_(20-173094).pdf\n\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nMarch 11, 2021\nMr. Bobby Cayton\nSenior Vice President Operations\nDiversified Midstream LLC\n125 Industry Rd\nWaynesburg, PA 15370\nCPF 1-2021-021-NOA\nDear Mr. Cayton:\nFrom May 19 to 20, 2020, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nCranberry Pipeline Corporation’s (CPC) Heizer Creek Storage and Maxton underground natural\ngas storage facilities (UNGSF) in Putnam County and Raleigh County, West Virginia. Effective\nMay 27, 2020, CPC divested operatorship of these UNGSFs to Diversified Midstream LLC\n(Diversified). Diversified retained the procedures of Cranberry Pipeline Corp. for its own use.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nDiversified’s plans or procedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\n\n\n\nCPF 1-2021-021-NOA\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b)1 were inadequate. Specifically, Diversified\ndid not establish a threshold level for annular gas or have a procedure to evaluate each annular gas\noccurrence that exceeds defined threshold levels in accordance with API RP 1171, Section 9.3.2\n(Section 9.3.2).\nSection 9.3.2 states in part:\nThe operator shall evaluate each annular gas occurrence that exceeds operator- or\nregulatory-defined threshold levels determined from well integrity evaluation and from\nrisk assessment.\nDuring the inspection, Diversified reported that they did not have a procedure to evaluate each\nannular gas occurrence that exceeds a defined threshold level, and that they had not established a\nthreshold level for the occurrence of annular gas.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust establish an annular gas threshold level and revise its procedures to include details on how it\nevaluates each occurrence of annular gas that exceeds that threshold level in accordance with\nSection 9.3.2.\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\n1 §192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n(1) Each UNGSF that uses a depleted hydrocarbon reservoir or an aquifer reservoir for natural gas storage and was\nconstructed after July 18, 2017, must meet all provisions of API RP 1171 (incorporated by reference, see §192.7),\nand paragraphs (c) and (d) of this section, prior to commencing operations.\n(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an aquifer reservoir for natural gas storage and was\nconstructed on or before July 18, 2017, must meet the provisions of API RP 1171 (incorporated by reference, see\n§192.7), sections 8, 9, 10, and 11, and paragraph (c) of this section, by January 18, 2018, and must meet all\nprovisions of paragraph (d) of this section by March 13, 2021.\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 2 of 14\n\n\n\nCPF 1-2021-021-NOA\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under § 192.12(b) were inadequate. Specifically, Diversified\ndid not have a procedure to maintain records of storage inventory assessments for the life of the\nfacility in accordance with API RP 1171, Section 9.8.2 (Section 9.8.2).\nSection 9.8.2 states in part, “The operator shall maintain records of storage inventory assessments\nfor the life of the facility.”\nDuring the inspection, Diversified reported that they had not established a procedure to maintain\nrecords of storage inventory assessments for the life of the facility.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include how it will maintain records of storage inventory assessments\nfor the life of the facility in accordance with Section 9.8.2.\n3. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified\ndid not have a procedure for maintaining records to document establishment of and compliance\nwith procedures as required in Section 11 in accordance with API RP 1171, Section 11.13.1\n(Section 11.13.1).\nSection 11.13.1 states in part, “The operator shall maintain records to document establishment of\nand compliance with procedures as required in Section 11.”\nDuring the inspection, Diversified reported that they did not have a procedure in place for\nmaintaining records to document establishment of and compliance with procedures as required in\nSection 11.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include provisions for complying with Section 11.13.1.\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 3 of 14\n\n\n\nCPF 1-2021-021-NOA\n4. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified’s\nprocedures did not incorporate safeguards to the environment, site security, and safety and health\ninto storage operations in accordance with API RP 1171, Section 11.9.1 (Section 11.9.1).\nSection 11.9.1 states in part, “The operator shall develop programs incorporating safeguards to the\nenvironment, site security, and safety and health into storage design, construction, and operations.”\nDuring the inspection, Diversified was not able to provide operations procedures that incorporated\nsafeguards to the environment, site security, and safety and health.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to incorporate safeguards to the environment, site security, and safety\nand health into storage design, construction, and operations in accordance with Section 11.9.1.\n5. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified’s\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 4 of 14\n\n\n\nCPF 1-2021-021-NOA\nprocedures did not include retention intervals for records that meet regulatory requirements in\naccordance with API RP 1171, Section 11.13.3 (Section 11.13.3).\nSection 11.13.3 states in part:\nThe operator shall establish retention intervals for records that meet regulatory\nrequirements; where no regulatory requirements exist, retention intervals should be\ndetermined by the operator.\nDuring the inspection, Diversified reported that they had not established retention intervals for\nrecords that meet regulatory requirements.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include how it will establish retention intervals for records that meet\nregulatory requirements in accordance with Section 11.13.3.\n6. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified\ndid not have procedures describing how active well mechanical integrity evaluations included\ninitial and subsequent evaluations as determined by the risk assessment and information derived\nfrom initial evaluations in accordance with API RP 1171, Section 9.3.1 (Section 9.3.1).\nSection 9.3.1 states in part:\nActive well mechanical integrity evaluations shall include initial and subsequent\nevaluations as determined using the risk assessment and the information derived from the\ninitial evaluation.\nDuring the inspection, Diversified reported that they had not established procedures describing\nhow active well mechanical integrity evaluations included initial and subsequent evaluations as\ndetermined by the risk assessment and information derived from initial evaluations.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include how active well mechanical integrity evaluations will include\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 5 of 14\n\n\n\nCPF 1-2021-021-NOA\ninitial and subsequent evaluations in accordance with Section 9.3.1.\n7. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified\ndid not have procedures for evaluating the mechanical integrity of each active well, including each\nthird-party well, that penetrates the storage reservoir and buffer zone or areas influenced by storage\noperations in accordance with API RP 1171 Section 9.3.1 (Section 9.3.1).\nSection 9.3.1 states in part:\nThe operator shall evaluate the mechanical integrity of each active well, including\neach third-party well, that penetrates the storage reservoir and buffer zone or areas\ninfluenced by storage operations.\nDuring the inspection, Diversified reported that they had not established procedures for evaluating\nthe mechanical integrity of each active well that penetrated the storage reservoir and buffer zone\nor areas influenced by storage operations.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include how it will evaluate the mechanical integrity of each active\nwell that penetrates the storage reservoir and buffer zone or areas influenced by storage operations\nin accordance with Section 9.3.1.\n8. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 6 of 14\n\n\n\nCPF 1-2021-021-NOA\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified\ndid not develop procedures for the construction, operation, and maintenance of natural gas storage\nwells and reservoirs in accordance with API RP 1171, Section 11.2.1 (Section 11.2.1).\nSection 11.2.1 states in part:\nThe operator shall develop and follow procedures for the construction, operation, and\nmaintenance of natural gas storage wells and reservoirs to establish and maintain\nfunctional integrity.\nDuring the inspection, Diversified reported that they had not developed O&M procedures specific\nto underground natural gas storage operations.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust develop procedures for the construction, operation, and maintenance of natural gas storage\nwells and reservoirs to establish and maintain functional integrity in accordance with Section\n11.2.1.\n9. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified\ndid not develop procedures to use risk assessments as a basis for developing the integrity\ndemonstration, verification, and monitoring tasks and evaluating their frequency requirements in\naccordance with API RP 1171 Section 9.2.2 (Section 9.2.2).\nSection 9.2.2 states in part:\nRisk assessments shall be used as a basis for developing the integrity demonstration,\nverification, and monitoring tasks and evaluating their frequency requirements.\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 7 of 14\n\n\n\nCPF 1-2021-021-NOA\nDuring the inspection, Diversified reported that they did not have procedures in place describing\nhow risk assessments were used for developing the integrity demonstration, verification, and\nmonitoring tasks and for evaluating frequency requirements.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include how it will use risk assessments for developing the integrity\ndemonstration, verification, and monitoring tasks and for evaluating frequency requirements in\naccordance with Section 9.2.2.\n10. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nDiversified’s written procedures for conducting operations, maintenance, and emergency\npreparedness and response activities under §192.12(b) were inadequate. Specifically, Diversified\ndid not have a procedure for maintaining, repairing, or replacing wellhead isolation valves in\naccordance with API RP 1171, Section 9.3.2 (Section 9.3.2).\nSection 9.3.2 states in part:\nThe valves shall be maintained, repaired, or replaced in accordance with the\noperator’s valve maintenance program for isolation valves.\nDuring the inspection, Diversified reported that they did not have a procedure for maintaining,\nrepairing, or replacing faulty wellhead isolation valves.\nTherefore, Diversified’s written procedures required by § 192.12(c) were inadequate. Diversified\nmust revise its procedures to include how it will maintain, repair, or replace wellhead isolation\nvalves in accordance with its valve maintenance program for isolation valves in accordance with\nSection 9.3.2.\n11. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 8 of 14\n\n\n\nCPF 1-2021-021-NOA\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified’s risk management procedures did not\ninclude a definition for risk and Diversified did not multiply consequence of a realized threat by\nthe likelihood of its occurrence when calculating risk scores in accordance with API RP 1171,\nSection 8.1 (Section 8.1).\nSection 8.1 states in part, “Risk is defined as the consequence of a realized threat multiplied by the\nlikelihood of its occurrence.”\nDuring the inspection, Diversified displayed their Risk Management Program, Section 1, Risk\nAssessment, that did not include a definition of risk. Furthermore, Diversified did not multiply the\nconsequence of a realized threat by the likelihood of its occurrence when computing the risks\nscores of the individual wells at the Maxton and Heizer Creek storage fields.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures to define and calculate risk in accordance with Section 8.1.\n12. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified did not have a procedure to review the\nresults of the risk assessment in accordance with API RP 1171, Section 8.5.2 (Section 8.5.2).\nSection 8.5.2 states in part:\nThe operator shall review the results of the risk assessment to determine whether the\nrisk assessment, resulting prioritization, or ranking represents its facilities and\ncharacterizes the risks.\nDuring the inspection, Diversified reported that they had not established a procedure to review the\nresults of the risk assessment.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures to include how it will review the results of the risk\nassessment to determine whether the risk assessment, resulting prioritization, or ranking represents\nits facilities and characterizes the risks in accordance with Section 8.5.2.\n13. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 9 of 14\n\n\n\nCPF 1-2021-021-NOA\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified did not have a process to assess threat\nand hazard interaction in accordance with API RP 1171, Section 8.3.2 (Section 8.3.2).\nSection 8.3.2 states in part:\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, Diversified reported that they had not established a procedure to assess\nthreat and hazard interaction.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures to include how it will assess threat and hazard interaction in\naccordance with Section 8.3.2.\n14. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified did not have a procedure to assess the\nrisk associated with newly identified or changing threats and hazards in accordance with API RP\n1171, Section 8.7.3 (Section 8.7.3).\nSection 8.7.3 states in part:\nIf during the course of operations new threats or hazards are identified, or the impact\nof threats or hazards changes markedly, the operator shall assess the risk associated\nwith new conditions and evaluate and prioritize risk management options in\naccordance with the risk assessment.\nDuring the inspection, Diversified reported that they had not established a procedure to assess the\nrisk associated with new or changing threats and hazards and to evaluate and prioritize risk\nmanagement options in accordance with the risk assessment.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures to include how it will assess the risk associated with new or\nchanging threats or hazards, and how it will evaluate and prioritize risk management options in\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 10 of 14\n\n\n\nCPF 1-2021-021-NOA\naccordance with its risk assessment, commensurate with Section 8.7.3.\n15. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified did not have a procedure for assessing\nrisks related to the storage operation using a consistent process in accordance with API RP 1171,\nSection 8.5.2 (Section 8.5.2).\nSection 8.5.2 states in part, “The operator shall assess risk related to the storage operation using a\nconsistent process.”\nDuring the inspection, Diversified displayed their risk assessment process of using continuing\nsurveillance information as inputs for the risk scores. Diversified’s O&M Manual Appendix E-\nStandard Operating Procedure section 11_Continuing Surveillance states in part that “the threats\nand hazards found during well inspections and facility patrols will be entered on form UNGS-001\nto compile a risk score on each storage facility.” No other process was presented during the\ninspection to describe how risk would be assessed using a consistent process.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures so risk related to the storage operation is assessed using a\nconsistent process in accordance with Section 8.5.2.\n16. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified did not have procedures for identifying\nor developing preventative and mitigative measures to manage risks in accordance with API RP\n1171, Section 8.6.2 (Section 8.6.2).\nSection 8.6.2 states in part, “The operator shall develop P&M measures to manage risks.”\nDuring the inspection, Diversified reported that they did not have procedures for identifying or\ndeveloping P&M measures to manage risks.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 11 of 14\n\n\n\nCPF 1-2021-021-NOA\nDiversified must revise its procedures to include how it will identify and develop P&M measures\nto manage risk in accordance with Section 8.6.2.\n17. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified did not define a review frequency for\nthe risk assessment in accordance with API RP 1171, Section 8.7.2 (Section 8.7.2).\nSection 8.7.2 states in part, “The operator shall define a review frequency for the risk assessment\nand perform a review and update of the risk assessment in accordance with the defined frequency.”\nDuring the inspection, Diversified reported that they had not established a review frequency for\nthe risk assessment.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures to include how frequently it will review and update the risk\nassessment in accordance with Section 8.7.2.\n18. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified’s procedures did not include a process\nfor assessing the effectiveness of risk monitoring and risk management programs and maintaining\na continual review and improvement cycle in risk management activities to provide functional\nintegrity of the storage operation in accordance with API RP 1171, Section 8.7.1 (Section 8.7.1).\nSection 8.7.1 states in part:\nThe operator shall assess the effectiveness of risk monitoring and risk management\nprograms and maintain a continual review and improvement cycle in risk management\nactivities to provide functional integrity of the storage operation.\nDuring the inspection, Diversified reported that they had not established procedures for assessing\nthe effectiveness of risk monitoring and risk management programs and maintaining a continual\nreview and improvement cycle in risk management activities to provide functional integrity of the\nstorage operation.\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 12 of 14\n\n\n\nCPF 1-2021-021-NOA\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedure to include how it will assess the effectiveness of risk\nmonitoring and risk management programs and maintain a continual review and improvement\ncycle in risk management activities in accordance with Section 8.7.1.\n19. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) A plan for how staff will be trained in awareness and application\nof the procedures required by this paragraph (d);\nDiversified’s written procedures for carrying out its integrity management program under API RP\n1171, Section 8 were inadequate. Specifically, Diversified’s procedures did not include\nperformance data collected through the field history, operations and maintenance (O&M)\nactivities, geotechnical data such as well logs, engineering data, and completion reports to\ndetermine susceptibility to threat and hazard-related events in accordance with API RP 1171,\nSection 8.3.2 (Section 8.3.2).\nSection 8.3.2 states in part:\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, Diversified reported that threat and hazard-related data collection\nprocedures only included the age of the wells and information collected during annual wellhead\ninspections as their inputs for determining risk. They did not refer to Table 1 of API RP 1171 to\ndetermine what type of information to utilize for performance data, O&M activities, geotechnical\ndata, engineering data and completions reports. Also, Diversified reported that they used 72-hour\nshut-in test results to assess the integrity of the wells, but did not include the results in their risk\nassessment.\nTherefore, Diversified’s written procedures required by § 192.12(d)(4) were inadequate.\nDiversified must revise its procedures to include the use of performance data collected through the\nfield history, operations and maintenance (O&M) activities, geotechnical data such as well logs,\nengineering data, and completion reports to determine susceptibility to threat and hazard-related\nevents in accordance with Section 8.3.2.\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.\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 13 of 14\n\n\n\nCPF 1-2021-021-NOA\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being 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, 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 Diversified Midstream, LLC maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Robert Burrough, Director,\nEastern Region, Pipeline and Hazardous Materials Safety Administration, 840 Bear Tavern Road,\nSuite 300, West Trenton, NJ 08628. In correspondence concerning this matter, please refer to CPF\n1-2021-021-NOA and, for each document you submit, please provide a copy in electronic format\nwhenever possible. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should\nbe sent on USB flash drive accompanied by the original paper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n12021021NOA_Notice of Amendment_03112021_(20-173094)_text Page 14 of 14\n\n12021021NOA_Closure Letter_08242021_(20-173094)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nAugust 24, 2021\nMr. Bobby Cayton\nSenior Vice President, Operations\nDiversified Midstream LLC\n125 Industry RD\nWaynesburg, PA 15370\nCPF 1-2021-021-NOA\nDear Mr. Cayton:\nFrom May 19 to 20, 2020, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nCranberry Pipeline Corporation’s (CPC) Heizer Creek Storage and Maxton underground natural\ngas storage facilities (UNGSF) in Putnam County and Raleigh County, West Virginia. Effective\nMay 27, 2020, CPC divested operatorship of these UNGSFs to Diversified Midstream LLC\n(Diversified). Diversified retained the procedures of Cranberry Pipeline Corp. for its own use. As\na result of the inspection, Diversified was issued a Notice of Amendment on March 11, 2021,\nwhich proposed amendment of your procedures.\nDiversified submitted its amended procedures on May 4, 2021. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\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","truncated":false,"body_characters":39203}