{"operation":"document","citation":"CPF 12021022WL","title":"DIVERSIFIED MIDSTREAM LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-11","effective_on":null,"summary":"CLOSED warning letter citing 191.17(c), 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021022wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021022wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021022wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021022WL","body":"Warning Letter involving DIVERSIFIED MIDSTREAM LLC. PHMSA's enforcement data identifies the cited regulations as 191.17(c),  192.12(b)(2). The case was opened on 2021-03-11 and is reported as closed as of 2021-03-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021022WL_Operator Response to Notice_05042021_(20-173094).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021022WL/12021022WL_Operator%20Response%20to%20Notice_05042021_(20-173094).pdf\n\n12021022WL_Warning Letter_03112021_(20-173094).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021022WL/12021022WL_Warning%20Letter_03112021_(20-173094).pdf\n\n12021022WL_Warning Letter_03112021_(20-173094)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021022WL/12021022WL_Warning%20Letter_03112021_(20-173094)_text.pdf\n\n12021022WL_Warning Letter_03112021_(20-173094)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nMarch 11, 2021\nMr. Bobby Cayton\nSenior Vice President Operations\nDiversified Midstream LLC\n125 Industry Rd\nWaynesburg, PA 15370\nCPF 1-2021-022-WL\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).\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. § 191.17 Transmission systems; gathering systems; liquefied natural gas facilities;\nand underground natural gas storage facilities: Annual report.\n(a) …\n(c) Underground natural gas storage facility. Each operator of a\nUNGSF must submit an annual report through DOT Form PHMSA\n7100.4-1. This report must be submitted each year, no later than March\n15, for the preceding calendar year.\nDiversified failed to report injection volumes for Heizer Creek Storage on its annual report filed\nfor calendar year 2019.\n\n\n\nCPF 1-2021-022-WL\nDuring the inspection, Diversified reported that they had injected approximately 1.2 BCF of\nnatural gas into Heizer Creek Storage but had not included the information on the annual report\nsubmitted on 3/11/2020 for calendar year 2019.\nTherefore, Diversified failed to meet the requirements of § 191.17(c).\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n(1) …\n(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an\naquifer reservoir for natural gas storage and was constructed on or\nbefore July 18, 2017, must meet the provisions of API RP 1171\n(incorporated by reference, see §192.7), sections 8, 9, 10, and 11, and\nparagraph (c) of this section, by January 18, 2018, and must meet all\nprovisions of paragraph (d) of this section by March 13, 2021.\nDiversified failed to meet the provisions of API RP 1171, Section 9. Specifically, Diversified failed\nto perform annual visual inspection of each wellhead assembly for leaks during 2018 in accordance\nwith API RP 1171, Section 9.3.2 (Section 9.3.2).\nSection 9.3.2 states in part, “The operator shall visually inspect each wellhead assembly at least\nannually for leaks.”\nDuring the inspection, Diversified was not able to provide records of visual inspection of each\nwellhead assembly for leaks for 2018.\nTherefore, Diversified failed to meet the provisions of Section 9.3.2.\n3. § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n(1) …\n(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an\naquifer reservoir for natural gas storage and was constructed on or\nbefore July 18, 2017, must meet the provisions of API RP 1171\n(incorporated by reference, see §192.7), sections 8, 9, 10, and 11, and\nparagraph (c) of this section, by January 18, 2018, and must meet all\nprovisions of paragraph (d) of this section by March 13, 2021.\nDiversified failed to meet the provisions of API RP 1171, Section 9. Specifically, Diversified was\nnot monitoring for the presence of annular gas in accordance with API RP 1171, Section 9.3.2\n(Section 9.3.2).\nSection 9.3.2 states in part, “The operator shall monitor for presence of annular gas by measuring\nand recording annular pressure and/or annular gas flow.”\n12021022WL_Warning Letter_03112021_(20-173094)_text Page 2 of 3\n\n\n\nCPF 1-2021-022-WL\nDuring the inspection, Diversified reported that they were not monitoring for the presence of\nannular gas.\nTherefore, Diversified failed to meet the provisions of Section 9.3.2.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related\nseries of violations. For violation occurring on or after July 31, 2019 and before January 11, 2021,\nthe maximum penalty may not exceed $218,647 per violation per day the violation persists, up to\na maximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on\nor after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty not to exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nDiversified Midstream LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2021-022-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe the\nredacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n12021022WL_Warning Letter_03112021_(20-173094)_text Page 3 of 3","truncated":false,"body_characters":6959}