{"operation":"document","citation":"CPF 12021036NOA","title":"WYCKOFF GAS STORAGE COMPANY, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-07-09","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-12021036noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021036noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021036noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021036NOA","body":"Notice of Amendment involving WYCKOFF GAS STORAGE COMPANY, LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(4). The case was opened on 2021-07-09 and is reported as closed as of 2021-11-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021036NOA_Closure Letter_11092021_(20-173832).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021036NOA/12021036NOA_Closure%20Letter_11092021_(20-173832).pdf\n\n12021036NOA_Closure Letter_11092021_(20-173832)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021036NOA/12021036NOA_Closure%20Letter_11092021_(20-173832)_text.pdf\n\n12021036NOA_Notice of Amendment_07092021_(20-173832).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021036NOA/12021036NOA_Notice%20of%20Amendment_07092021_(20-173832).pdf\n\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021036NOA/12021036NOA_Notice%20of%20Amendment_07092021_(20-173832)_text.pdf\n\n12021036NOA_Operator Response to Notice_08052021_(20-173832).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021036NOA/12021036NOA_Operator%20Response%20to%20Notice_08052021_(20-173832).pdf\n\n12021036NOA_Closure Letter_11092021_(20-173832)_text.pdf\n\nVIA ELECTRONIC MAIL TO: CharlesL@KFOC.net\nNovember 9, 2021\nMr. Don Millican\nVice President/CFO\nWyckoff Gas Storage Company, LLC\n6733 S. Yale Aveneue\nTulsa, Oklahoma 74136\nCPF 1-2021-036-NOA\nDear Mr. Millican:\nFrom June 15, 2020 to June 18, 2020, representatives from the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, conducted a\nvirtual pipeline safety inspection of Wyckoff Gas Storage Company, LLC s (WGS) procedures for\nconducting operations, maintenance, and emergency preparedness and responses activities. As a\nresult of the inspection, WGS was issued a Notice of Amendment on July 9, 2021, which proposed\namendment of your procedures.\nWGS submitted its amended procedures on August 5, 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\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: DonM@kfoc.net\nJuly 9, 2021\nMr. Don Millican\nVice President/CFO\nWyckoff Gas Storage Company, LLC\n6733 S. Yale Aveneue\nTulsa, Oklahoma 74136\nCPF 1-2021-036-NOA\nDear Mr. Millican:\nFrom June 16, 2020 through June 18, 2020, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\ninspected Wyckoff Gas Storage Company, LLC’s (WGS) procedures for its Underground Gas\nStorage Facility (UNGS) Program in Greenwood, New York.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nWGS’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\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.\n\n\n\nCPF 1-2021-036-NOA\nWGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities under § 192.12(b)1 were inadequate. Specifically, WGS’s Gas Operations\nand Maintenance Manual, dated July 2019 (O&M Manual), lacked details for the operation of\nunderground natural gas storage fields with regard to various reporting requirements of 49 CFR\nPart 191.\nDuring the inspection, the PHMSA inspection team reviewed the O&M Manual. The inspection\nteam identified the following elements of the O&M Manual related to the reporting requirements\nof 49 CFR Part 191 that were inadequate:\nReporting\n1. The O&M Manual defined incidents on a pipeline but did not address incidents in\nunderground natural gas storage facilities. (§ 191.3)\n2. The O&M Manual addressed immediate notifications of incidents, but did not address\nincidents in underground natural gas storage facilities. (§ 191.5(a))\n3. The O&M Manual addressed the 30-day incident report, but did not address incidents in\nunderground natural gas storage facilities. (§ 191.15(c))\n4. The O&M Manual did not address underground natural gas storage facilities filing of\nsupplemental or revised reports. (§ 191.15(d))\n5. The O&M Manual did not clearly require the filing of the annual report for underground\nnatural gas storage facilities. (§ 191.17(c))\n6. The O&M Manual failed to include specific language for underground natural gas storage\nfacilities notifications (i.e. construction, conversions, change in entity, or acquisition or\ndivestiture). (§ 191.22(c))\n7. The O&M Manual did not address safety related conditions for underground natural gas\nstorage facilities. (§ 191.23(a))\nTherefore, WGS’s written procedures were inadequate regarding various reporting requirements\nfound in Part 191. WGS must revise its O&M Manual to address the deficiencies in reporting\nprocedures outlined above.\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\n1 § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 2 of 8\n\n\n\nCPF 1-2021-036-NOA\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.\nWGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities under § 192.12(b) were inadequate. Specifically, WGS’s Natural Gas\nStorage Integrity Management Program, dated 6/2/20 (IMP Manual), lacked sufficient details for\nthe operation of underground natural gas storage fields regarding various integrity monitoring\nrequirements found in API RP 1171, Section 9, Integrity Demonstration, Verification, and\nMonitoring Practices (Section 9).\nDuring the inspection, the PHMSA inspection team identified the following elements of the IMP\nManual related to Section 9 requirements that were inadequate:\nIntegrity Demonstration, Verification, and Monitoring Practices\n1. The IMP Manual did not have any procedures to verify the functional integrity of the\nreservoir. No hysteresis curve had been developed or was available, wherein WGS analyzed\npressure/volume data to determine reservoir integrity. (API RP1171, Section 9.2.1)\n2. The IMP Manual did not have a procedure to develop integrity demonstration, verification,\nand monitoring tasks. (API RP1171, Section 9.2.2)\n3. The IMP Manual did not have a procedure to integrate well integrity evaluations into the risk\nassessment program. (API RP1171, Section 9.3.1)\n4. The IMP Manual did not have a procedure to request third party well integrity evaluation data\nor explain how that data, once received, is reviewed, and incorporated into the Risk Management\nprogram. (API RP 1171, Section 9.3.1)\n5. The IMP Manual did not have a threshold requirement specified for annular pressure or\nannular gas flow for observation wells, and therefore there is no follow up process for threshold\nexcursions. (API RP1171, Section 9.3.2)\n6. The IMP Manual did not address addresses valve inspections in general. WGS stated that\nthey use their O&M Manual to address valve inspections, but the O&M Manual was silent on\nthis provision. (API RP1171, Section 9.3.2)\n7. The IMP Manual did not have any procedure to require that all integrity related inspections,\ntests, patrols, and analysis retained for the life of the facility. (API RP1171, Section 9.8.1)\nTherefore, WGS’s written procedures required by § 192.12(c) were inadequate. WGS must revise\nits procedures to address the deficiencies outlined above.\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.\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 3 of 8\n\n\n\nCPF 1-2021-036-NOA\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.\nWGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities under § 192.12(b) were inadequate. Specifically, WGS’s O&M Manual\nand IMP Manual lacked sufficient details for the operation of underground natural gas storage\nfields regarding various requirements of API RP 1171, Section 11 Procedures and Training\n(Section 11).\nDuring the inspection, the PHMSA inspection team reviewed the O&M Manual and IMP Manual.\nThe inspection team identified the following elements of the manuals related to Section 11\nrequirements that were inadequate:\nProcedures and Training\n1. The O&M Manual, page 35, IFR – Underground Gas Storage listed a general framework, but\ndid not specify detailed procedures for construction, operation, and maintenance to establish and\nmaintain functional integrity of the wells and reservoirs. (API RP 1171, Section 11.2.1)\n2. The IMP Manual, Section 5 Records and Management of Change (MOC), presented a\nframework and referenced WGS’s Control Room Management (CRM) procedure, but did not\ninclude a detailed process for implementing UNGS changes in a controlled manner. (API RP\n1171, Section 11.11.1). The MOC procedure in the CRM plan did not reference UNGS facilities.\nFurther, this MOC procedure had not been revised since 2015.\nTherefore, WGS’s written procedures required by § 192.12(c) were inadequate. WGS must revise\nits procedures to address the deficiencies outlined above.\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.\nWGS’s written procedures for conducting operations, maintenance, and emergency preparedness\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 4 of 8\n\n\n\nCPF 1-2021-036-NOA\nand response activities under § 192.12(b) were inadequate. Specifically, WGS’s Emergency\nResponse Plan, dated January 2020 (ERP), lacked sufficient details for the operation of\nunderground natural gas storage fields regarding various requirements of API RP 1171, Section\n10, Site Security and Safety, Site Inspections, and Emergency Preparedness and Response (Section\n10).\nDuring the inspection, the PHMSA inspection team reviewed the ERP. The inspection team\nidentified the following elements of the ERP related to Section 10 requirements that were\ninadequate:\nSite Security and Safety, Site Inspections, and Emergency Preparedness and Response\n1. The inspection team discussed the four specific topics that must be addressed in the\nemergency preparedness/response plan. WGS’s ERP did not have the correct verbiage for all\nfour required elements; specifically, natural disasters, accidental releases, equipment failure, and\nthird-party emergencies are not covered. (API RP 1171, Section 10.6.1)\n2. The ERP did not include a Blowout Contingency Plan. (API RP 1171, Section 10.6.1)\n3. The ERP addressed training, but did not specify the required intervals and did not require\nTable Top Exercises or In Person Drills to evaluate the plan for effectiveness. (API RP 1171,\nSection 10.6.2)\nTherefore, WGS’s written procedures required by § 192.12(c) were inadequate. WGS must revise\nits procedures to address the deficiencies outlined above.\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.\nWGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities under § 192.12(b)(1)2 were inadequate. Specifically, WGS’s O&M Manual\nlacked sufficient details for the maintenance of underground natural gas storage fields regarding\nvarious requirements of API RP 1171, Section 6, Integrity in Well Design & Construction (Section\n2 § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs. (1) Each UNGSF that uses a depleted hydrocarbon reservoir or an\naquifer reservoir for natural gas storage and was constructed after July 18, 2017, must meet all provisions of API RP 1171\n(incorporated by reference, see §192.7), and paragraphs (c) and (d) of this section, prior to commencing operations.\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 5 of 8\n\n\n\nCPF 1-2021-036-NOA\n6).\nDuring the inspection, the PHMSA inspection team reviewed the O&M Manual. The inspection\nteam identified the following elements of the manual related to Section 6 requirements that were\ninadequate:\nIntegrity in Well Design & Construction\n1. The O&M Manual did not have a provision to ensure that new or replaced wellheads allow\nfor full wellbore entry to the wellbore. (API RP1171, Section 6.2.2)\n2. The O&M Manual did not have a provision to ensure that wells are equipped with valves that\nprovide isolation of the well from the pipeline system and allow for entry into the wellbore. (API\nRP1171, Section 6.2.2)\n3. The O&M Manual did not have a provision to ensure that the equipment attached to the well\nis rated to exceed the maximum anticipated operating pressure. (API RP1171, Section 6.2.3)\n4. The O&M Manual did not have a provision to ensure the use of API Technical Report 5C3\nCalculating Performance Properties of Pipe Used as Casing or Tubing for casing designs. (API\nRP1171, Section 6.3.1)\n5. The O&M Manual did not have a provision to ensure that the casing connections can maintain\na gas seal under anticipated wellbore flow conditions and subsequent work. (API RP1171,\nSection 6.3.7)\n6. The O&M Manual did not have a provision to ensure that wells identified as having\ncompromised mechanical integrity requiring evaluation and responsive action with a timeframe\ndepending on severity of the integrity risk. (API RP1171, Section 6.6.1)\n7. The O&M Manual did not have a provision requiring WGS to verify that personnel are\nqualified to do work on wells. (API RP1171, Section 6.11.2)\nTherefore, WGS’s written procedures required by § 192.12(c) were inadequate. WGS must revise\nits procedures to address the deficiencies outlined above.\n6. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) Integrity management procedures and recordkeeping. Each\nUNGSF operator must establish and follow written procedures to carry\nout its integrity management program under API RP 1171\n(incorporated by reference, see § 192.7), section 8 (“Risk Management\nfor Gas Storage Operations”), and this paragraph (d). The operator\nmust also maintain, for the useful life of the UNGSF, records that\ndemonstrate compliance with the requirements of this paragraph (d).\nThis includes records developed and used in support of any\nidentification, calculation, amendment, modification, justification,\ndeviation, and determination made, and any action taken to implement\nand evaluate any integrity management program element.\nWGS’s written procedures for carrying out its integrity management program under API RP 1171,\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 6 of 8\n\n\n\nCPF 1-2021-036-NOA\nSection 8 were inadequate. Specifically, WGS’s IMP Manual lacked sufficient details for carrying\nout its integrity management program regarding various risk management requirements found in\nAPI RP 1171, Section 8, Risk Management for Storage Operations (Section 8).\nDuring the inspection, the PHMSA inspection team reviewed the IMP Manual. The inspection\nteam identified the following elements of the manual related to Section 8 requirements that were\ninadequate:\nRisk Management for Storage Operations\n1. In reviewing the risk management process, it was identified that WGS used a self-developed\nsystem. Their options consisted of ‘Probability Drivers’ and ‘Preventors’. Section 1.0 of the\nIMP Manual, subsection II.ii.iv defined preventors as “… measures that completely eliminate\nthreat probability, consequence, or both. These could be measures such as use of emergency\nshutoff devices, regular use of inhibitors, or other means of removing susceptibility to a specific\nthreat.” WGS’s scoring system was explained in P-192.12, Interim Final Rule, Procedure Step 4,\nwhich stated “Probability Drivers and Indicators are scored from 0 to 10, with 10 equating to the\nhighest probability of occurrence. Probability Resistors and Preventors are scored from 0 to -10,\nwith -10 equating to complete elimination of the probability of occurrence... Consequences are\nscored from 0 to 10 based on significance, with 0 equating to no significance or consequence and\n10 equating to extremely high significance or consequence.” The IMP Manual lacked a detailed\nand documented process involving subject matter experts required to eliminate any threat or\nconsequence. (API RP1171, Section 8.4.2).\n2. Compliance staff indicated that a periodic risk assessment review was performed (annually);\nhowever, the IMP Manual did not explicitly require this review. (API RP1171, Section 8.5.2)\n3. The IMP Manual did not specify or describe a procedure to monitor the effectiveness of the\nrisk monitoring and risk management process. (API RP1171, Section 8.7.1)\nTherefore, WGS’s written procedures required by § 192.12(d)(4) were inadequate. WGS must\nrevise its procedures to address each of the concerns outlined above.\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.\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\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 7 of 8\n\n\n\nCPF 1-2021-036-NOA\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 Wyckoff Gas Storage Company, LLC maintain documentation\nof the safety 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\n1-2021-036-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\n12021036NOA_Notice of Amendment_07092021_(20-173832)_text Page 8 of 8","truncated":false,"body_characters":23334}