{"operation":"document","citation":"CPF 12021025NOA","title":"ROCKY MOUNTAIN NATURAL GAS LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-05-06","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-12021025noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021025noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021025noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021025NOA","body":"Notice of Amendment involving ROCKY MOUNTAIN NATURAL GAS LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(4). The case was opened on 2021-05-06 and is reported as closed as of 2021-08-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021025NOA_Closure Letter_08052021_(20-173110).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021025NOA/12021025NOA_Closure%20Letter_08052021_(20-173110).pdf\n\n12021025NOA_Closure Letter_08052021_(20-173110)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021025NOA/12021025NOA_Closure%20Letter_08052021_(20-173110)_text.pdf\n\n12021025NOA_Notice of Amendment_05062021_(20-173110).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021025NOA/12021025NOA_Notice%20of%20Amendment_05062021_(20-173110).pdf\n\n12021025NOA_Notice of Amendment_05062021_(20-173110)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021025NOA/12021025NOA_Notice%20of%20Amendment_05062021_(20-173110)_text.pdf\n\n12021025NOA_Operator Response to Notice_07152021_(20-173110).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021025NOA/12021025NOA_Operator%20Response%20to%20Notice_07152021_(20-173110).pdf\n\n12021025NOA_Closure Letter_08052021_(20-173110)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nAugust 5, 2021\nLinn Evans\nPresident and CEO\nRocky Mountain Natural Gas LLC\n7001 Mt. Rushmore RD\nPO Box 1400\nRapid City, SD 57709\nCPF 1-2021-025-NOA\nDear Linn Evans:\nFrom June 23 to June 25, 2020, representatives from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted an\nunderground natural gas storage inspection of Rocky Mountain Natural Gas LLC’s (RMNG)\nprocedures in Pitkin County, Colorado. As a result of the inspection, RMNG was issued a Notice\nof Amendment on May 6, 2021, which proposed amendment of your procedures.\nRMNG submitted its amended procedures on July 15, 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\n\n12021025NOA_Notice of Amendment_05062021_(20-173110)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nMay 6, 2021\nMr. Linn Evans\nPresident and CEO\nRocky Mountain Natural Gas LLC\n7001 Mt. Rushmore Rd\nPo Box 1400\nRapid City, SD 57709\nCPF 1-2021-025-NOA\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 inspected Rocky Mountain\nNatural Gas LLC’s (RMNG) procedures for Wolf Creek underground natural gas storage operations in\nPitkin County, Colorado\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within RMNG’s\nplans 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 and\nfollow for each facility one or more manuals of written procedures for\nconducting operations, maintenance, and emergency preparedness and\nresponse activities under paragraphs (a) and (b) of this section. Each operator\nmust keep records necessary to administer such procedures and review and\nupdate these manuals at intervals not exceeding 15 months, but at least once\neach calendar year. Each operator must keep the appropriate parts of these\nmanuals accessible at locations where UNGSF work is being performed. Each\noperator must have written procedures in place before commencing\noperations or beginning an activity not yet implemented.\n\n\n\nCPF 1-2021-025-NOA\nRMNG’s written procedures for conducting operations, maintenance, and emergency preparedness and\nresponse activities under § 192.12(b)1 were inadequate. Specifically, RMNG’s procedures failed to\naddress a unique situation with the annular space on some wells, and failed to require consideration of this\nunique situation when determining annular gas threshold levels in accordance with API RP 1171, Section\n9.2.1 (Section 9.2.1) and Section 9.3.2 (Section 9.3.2).\nSection 9.2.1 states in part:\nThe operator shall maintain functional integrity of storage wells and reservoirs. Storage wells and\nreservoirs can have different characteristics resulting in unique requirements in approaching\nintegrity demonstration, verification, and monitoring.\nSection 9.3.2 states in part:\nThe operator shall evaluate each annular gas occurrence that exceeds operator- or regulatory-\ndefined threshold levels determined from well integrity evaluation and from risk assessment.\nDuring the inspection, RMNG reported that annular gas pressures were being affected by expanding fluid\nduring withdrawal in some wells in the storage field. However, this particular situation was not addressed\nin RMNG’s procedures, nor was it considered in its process for determining annular gas threshold levels.\nTherefore, RMNG’s written procedures required by § 192.12(c) were inadequate. RMNG must revise its\nprocedures to address unique requirements stemming from this well characteristic, including in its\nprocedures related to Section 9.3.2.\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) Integrity management procedures and recordkeeping. Each UNGSF\noperator must establish and follow written procedures to carry out its integrity\nmanagement program under API RP 1171 (incorporated by reference, see\n§192.7), section 8 (“Risk Management for Gas Storage Operations”), and this\nparagraph (d). The operator must also maintain, for the useful life of the\nUNGSF, records that demonstrate compliance with the requirements of this\nparagraph (d). This includes records developed and used in support of any\nidentification, calculation, amendment, modification, justification, deviation,\n1 §192.12 Underground natural gas storage facilities.\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), and\nparagraphs (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 §192.7),\nsections 8, 9, 10, and 11, and paragraph (c) of this section, by January 18, 2018, and must meet all provisions of paragraph\n(d) of this section by March 13, 2021.\nPage 2 of 4\n\n\n\nCPF 1-2021-025-NOA\nand determination made, and any action taken to implement and evaluate any\nintegrity management program element.\nRMNG’s written procedures for carrying out its integrity management program under API RP 1171,\nSection 8 were inadequate. Specifically, RMNG’s written procedures did not detail how the effectiveness\nof risk monitoring and risk management programs would be assessed in accordance with API RP 1171,\nSection 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 programs and\nmaintain a continual review and improvement cycle in risk management activities to provide\nfunctional integrity of the storage operation.\nDuring the inspection, RMNG presented procedures from their Storage Integrity Management Plan\n(SIMP), Section 133.6.1.2. Those procedures failed to explain how the effectiveness of risk monitoring\nand risk management programs would be assessed. Therefore, RMNG’s written procedures required by §\n192.12(d)(4) were inadequate. RMNG must revise its procedures to includes details on how it will comply\nwith Section 8.7.1.\n3. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) Integrity management procedures and recordkeeping. Each UNGSF\noperator must establish and follow written procedures to carry out its integrity\nmanagement program under API RP 1171 (incorporated by reference, see\n§192.7), section 8 (“Risk Management for Gas Storage Operations”), and this\nparagraph (d). The operator must also maintain, for the useful life of the\nUNGSF, records that demonstrate compliance with the requirements of this\nparagraph (d). This includes records developed and used in support of any\nidentification, calculation, amendment, modification, justification, deviation,\nand determination made, and any action taken to implement and evaluate any\nintegrity management program element.\nRMNG’s written procedures for carrying out its integrity management program under API RP 1171,\nSection 8 were inadequate. Specifically, RMNG’s procedures did not detail how potential threats and\nhazards would be evaluated in accordance with API RP 1171, Section 8.4.2.\nSection 8.4.2 states in part that, “[t]he operator shall evaluate the potential threats and hazards impacting\nstorage wells and reservoirs.”\nDuring the inspection, RMNG presented procedures from Section 133.6.1.2, Integration of Risk\nInformation, of their SIMP. Those procedures failed to explain how potential threats and hazards\nimpacting storage wells and reservoirs would be evaluated.\nTherefore, RMNG’s written procedures required by § 192.12(d)(4) were inadequate. RMNG must revise\nPage 3 of 4\n\n\n\nCPF 1-2021-025-NOA\nits procedures to include details on how it evaluates potential threats and hazards in accordance with\nSection 8.4.2.\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 part of\nthis Notice is a document entitled Response Options for Pipeline Operators in Enforcement Proceedings.\nPlease refer to this document and note the response options. Be advised that all material you submit in\nresponse to this enforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with\nthe complete original document you must provide a second copy of the document with the portions you\nbelieve qualify for confidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised procedures,\nor a request for a hearing under §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 Associate\nAdministrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and\nto issue an Order Directing Amendment. If your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R.\n§ 190.206). If you are not contesting this Notice, we propose that you submit your amended procedures\nto my office within 30 days of receipt of this Notice. This period may be extended by written request for\ngood cause. Once the inadequacies identified herein have been addressed in your amended procedures,\nthis enforcement action will be closed.\nIt is requested (not mandated) that Rocky Mountain Natural Gas LLC maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration, 840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628.\nIn correspondence concerning this matter, please refer to CPF 1-2021-025-NOA and, for each document\nyou submit, please provide a copy in electronic format whenever possible. Smaller files may be emailed\nto robert.burrough@dot.gov. Larger files should be sent on USB flash drive accompanied by the original\npaper 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\nPage 4 of 4","truncated":false,"body_characters":12535}