{"operation":"document","citation":"CPF 12021024WL","title":"ROCKY MOUNTAIN NATURAL GAS LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-25","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(1), 192.12(b)(2), 192.12(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021024wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021024wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021024wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021024WL","body":"Warning Letter involving ROCKY MOUNTAIN NATURAL GAS LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(b)(1),  192.12(b)(2),  192.12(c). The case was opened on 2021-03-25 and is reported as closed as of 2021-03-25. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021024WL_Warning Letter_03252021_(20-173110).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021024WL/12021024WL_Warning%20Letter_03252021_(20-173110).pdf\n\n12021024WL_Warning Letter_03252021_(20-173110)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021024WL/12021024WL_Warning%20Letter_03252021_(20-173110)_text.pdf\n\n12021024WL_Warning Letter_03252021_(20-173110)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nMarch 25, 2021\nMr. Linn Evans\nPresident and CEO\nRocky Mountain Natural Gas LLC\n7001 Mt. Rushmore Rd\nPo Box 1400\nRapid City, SD 57709\nCPF 1-2021-024-WL\nDear Mr. Evans:\nFrom June 23 to June 25, 2020, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nRocky Mountain Natural Gas LLC’s (RMNG) Wolf Creek underground natural gas storage facility\nin Pitkin County, Colorado.\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. § 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\naquifer reservoir for natural gas storage and was constructed after July\n18, 2017, must meet all provisions of API RP 1171 (incorporated by\nreference, see § 192.7), and paragraphs (c) and (d) of this section, prior\nto commencing operations.\nRMNG failed to meet the provisions of API RP 1171, Section 6. Specifically, RMNG did not\nmaintain records indicating that API 5C3 was used for the design of the casings for 2 wells drilled\n\n\n\nCPF 1-2021-024-WL\nin 2019 in accordance with API RP 1171, Section 6.3.1 (Section 6.3.1) and as required to be\nmaintained by API RP 1171, Section 6.11.1 (Section 6.11.1).\nSection 6.3.2 states in part:\nEach string of casing shall be designed in accordance with API 5C3 in order to safely contain\nthe internal casing pressures and withstand the external casing (formation) pressures through\nthe setting depth.\nAnd Section 6.11.1 states in part:\nRecords of well completion (as-built), well construction and well work activities shall be\nmaintained for the life of the facility. These records shall include, as applicable and available,\nthe items listed below as referenced in each subsection.\n…\n6.3 Well Casing\n…\n- Design evaluations.\nDuring the inspection, RMNG was not able to provide records demonstrating that API 5C3 was\nused for the design of the casings used in wells 9-D2 and 9-D3 that were drilled in 2019. Therefore,\nRMNG failed to maintain records relevant to Section 6.3.1 and in accordance with the\nrequirements of Section 6.11.1.\n2. § 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\naquifer reservoir for natural gas storage and was constructed after July\n18, 2017, must meet all provisions of API RP 1171 (incorporated by\nreference, see § 192.7), and paragraphs (c) and (d) of this section, prior\nto commencing operations.\nRMNG failed to meet the provisions of API RP 1171, Section 6. Specifically, RMNG did not\nmaintain records indicating that casing was stored, transported, lifted and installed as specified by\nthe manufacturer and in accordance with API 5C1 and API RP 1171, Section 6.3.6 (Section 6.3.6)\nand as required to be maintained by API RP 1171, Section 6.11.1 (Section 6.11.1).\nAPI RP 1171, Section 6.3.6 states in part:\nCasing shall be stored, transported, lifted and installed as specified by the manufacturer and\nin accordance with API 5C1.\nAnd Section 6.11.1 states in part:\nRecords of well completion (as-built), well construction and well work activities shall be\nmaintained for the life of the facility. These records shall include, as applicable and\n12021024WL_Warning Letter_03252021_(20-173110)_text Page 2 of 7\n\n\n\nCPF 1-2021-024-WL\navailable, the items listed below as referenced in each subsection.\n…\n6.3 Well Casing\n…\n- Design evaluations.\nDuring the inspection, RMNG was not able to provide records to verify that casing was stored,\ntransported, lifted and installed as specified by the manufacturer and in accordance with API 5C1\nfor casings used in wells 9-D2 and 9-D3 that were drilled in 2019.\n3. § 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\naquifer reservoir for natural gas storage and was constructed after July\n18, 2017, must meet all provisions of API RP 1171 (incorporated by\nreference, see § 192.7), and paragraphs (c) and (d) of this section, prior\nto commencing operations.\nRMNG failed to meet the provisions of API RP 1171, Section 6. Specifically, RMNG did not\nmaintain records indicating that production casing was compatible with fluid chemical\ncomposition for wells 9-D2 and 9-D3, drilled in 2019, in accordance with API RP 1171, Section\n6.3.5 (Section 6.3.5) and as required to be maintained by API RP 1171, Section 6.11.1 (Section\n6.11.1).\nSection 6.3.5 states in part:\nThe production casing, which provides access to the storage interval, shall be of adequate\nsize and strength to maintain the well integrity and be compatible with fluid chemical\ncomposition.\nAnd Section 6.11.1 states in part:\nRecords of well completion (as-built), well construction and well work activities shall be\nmaintained for the life of the facility. These records shall include, as applicable and\navailable, the items listed below as referenced in each subsection.\n…\n6.3 Well Casing\n…\n- Design evaluations.\n12021024WL_Warning Letter_03252021_(20-173110)_text Page 3 of 7\n\n\n\nCPF 1-2021-024-WL\nDuring the inspection, RMNG was not able to provide records to verify that production casing was\ncompatible with fluid chemical composition for production casings installed in wells 9-D2 and 9-\nD3 that were drilled in 2019. Therefore, RMNG failed to meet the provisions of Section 6.3.5.\n4. § 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.\nRMNG failed to meet the provisions of API RP 1171, Section 9. Specifically, RMNG failed to\nevaluate each annular gas occurrence that exceeded operator-defined threshold levels in\naccordance with API RP 1171, Section 9.3.2 (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 risk\nassessment.\nDuring the inspection, RMNG was not able to provide records of the evaluation of each annular\ngas occurrence that exceeded operator-defined threshold levels. Therefore, RMNG failed to meet\nthe provisions of Section 9.3.2.\n5. § 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.\nRMNG failed to meet the provisions of API RP 1171, Section 9. Specifically, RMNG did not have\nrecords available to verify that ESD valves could only be reopened manually after an inspection\nin accordance with Section 9.3.2.\nSection 9.3.2 states in part:\nA closed storage well safety valve system shall be manually reopened at the site of the valve\n12021024WL_Warning Letter_03252021_(20-173110)_text Page 4 of 7\n\n\n\nCPF 1-2021-024-WL\nafter an inspection and not opened from a remote location.\nDuring the inspection, RMNG reported that their ESD valves could only be reopened manually.\nHowever, RMNG was not able to provide records to verify that information, as ESD test records\nor ESD valve specification sheets were not available. Therefore, RMNG failed to meet the\nprovisions of Section 9.3.2.\n6. § 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.\nRMNG failed to meet the provisions of API RP 1171, Section 9. Specifically, RMNG failed to\nperform annual surface safety valve function tests between 2018 and 2020 in accordance with\nSection 9.3.2.\nSection 9.3.2 states in part:\nSurface and subsurface safety valve systems, where installed, shall be function-tested at\nleast annually.\nDuring the inspection, RMNG was not able to provide records of any surface safety valve function\ntests between the years 2018 and 2020. Therefore, RMNG failed to meet the provisions of Section\n9.3.2.\n7. § 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.\nRMNG failed to meet the provisions of API RP 1171, Section 9. Specifically, RMNG failed to\nperform annual wing valve function tests for 2018 and 2019 in accordance with Section 9.3.2.\nSection 9.3.2 states in part:\nThe operator shall test the operation of the master valve and wellhead pipeline isolation\n12021024WL_Warning Letter_03252021_(20-173110)_text Page 5 of 7\n\n\n\nCPF 1-2021-024-WL\nvalve at least annually for proper function and ability to isolate the well.\nDuring the inspection, RMNG was not able to provide records of annual wing valve function tests\nfor 2018 and 2019. Therefore, RMNG failed to meet the provisions of Section 9.3.2.\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\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.\nRMNG failed to follow its manual of written procedures for conducting activities under\n§192.12(b). Specifically, RMNG failed to follow its Storage Integrity Management Plan (SIMP),\nSection 133.6.1.2, during 2019 regarding conducting periodic evaluations at least annually, not to\nexceed 15 months.\nSection 133.6.1.2 stated in part:\nThe company’s Storage Integrity Team will conduct periodic evaluations of PFIM risk\nmodel datasets as frequently as needed to assure they contain current and complete\ninformation. The frequency of evaluation will be at least annually, not to exceed 15 months\nor whenever indicated based upon risk factors specific to each component.\nDuring the inspection, RMNG was not able to provide records of the 2019 risk management review\nprocess. Therefore, RMNG failed to follow its SIMP, Section 133.6.1.2.\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\n12021024WL_Warning Letter_03252021_(20-173110)_text Page 6 of 7\n\n\n\nCPF 1-2021-024-WL\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nRocky Mountain Natural Gas 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 1-2021-024-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\n12021024WL_Warning Letter_03252021_(20-173110)_text Page 7 of 7","truncated":false,"body_characters":14962}