{"operation":"document","citation":"CPF 12021041WL","title":"WILD GOOSE STORAGE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-04-23","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021041wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021041wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021041wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021041WL","body":"Warning Letter involving WILD GOOSE STORAGE LLC. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2021-04-23 and is reported as closed as of 2021-04-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021041WL_Warning Letter_04232021_(20-174600).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021041WL/12021041WL_Warning%20Letter_04232021_(20-174600).pdf\n\n12021041WL_Warning Letter_04232021_(20-174600)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021041WL/12021041WL_Warning%20Letter_04232021_(20-174600)_text.pdf\n\n12021041WL_Warning Letter_04232021_(20-174600)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC DELIVERY TO: simon.dupere@rockpointgs.com\nApril 23, 2021\nMr. Simon Dupere\nPresident & CEO\nWild Goose Storage LLC\nSuite 400, 607-8th Ave. SW\nCalgary, T2P 0A7\nCPF 1-2021-041-WL\nDear Mr. Dupere:\nFrom June 2 through June 4, 2020, an inspector from the California Geologic Energy Management\nDivision (CalGEM), acting as an agent for the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nWild Goose Storage LLC’s (WG) Wild Goose Storage Field in Gridley, California.\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) …\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.\n\n\n\nCPF 1-2021-041-WL\nWG failed to meet the provisions of API RP 1171, Section 8. Specifically, WG failed to assess\nrisk related to the storage operation using a consistent process, in accordance with AP RP 1171,\nSection 8.5.2 (Section 8.5.2).\nSection 8.5.2 states in part that “The operator shall assess risk related to the storage operation using\na consistent process.”\nDuring the inspection, WG provided an attendee roster for the risk assessment meeting. However,\nthe records did not show what was discussed or any meeting notes to demonstrate that a consistent\nmethodology was used in performing the risk assessment, including arriving at conclusions or\nusing data in making decisions. Therefore, WG failed to meet the provisions of Section 8.5.2.\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.\nWG failed to meet the provisions of API RP 1171, Section 8. Specifically, WG failed to maintain\na continual risk management review and improvement cycle in accordance with API RP 1171,\nSection 8.71 (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, WG did not have records to demonstrate that any risk management review\nand improvement cycle had been performed. Therefore, WG failed to meet the provisions of\nSection 8.7.1.\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.\n12021041WL_Warning Letter_04232021_(20-174600)_text Page 2 of 3\n\n\n\nCPF 1-2021-041-WL\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 items identified in this letter. Failure to do so will result in\nWild Goose Storage 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 1-2021-041-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\n12021041WL_Warning Letter_04232021_(20-174600)_text Page 3 of 3","truncated":false,"body_characters":6122}