{"operation":"document","citation":"CPF 12021055NOA","title":"CENTRAL VALLEY GAS STORAGE, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-08-12","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-12021055noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021055noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021055noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021055NOA","body":"Notice of Amendment involving CENTRAL VALLEY GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(4). The case was opened on 2021-08-12 and is reported as closed as of 2021-11-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021055NOA_Closure Letter_11182021_(20-197119).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Closure%20Letter_11182021_(20-197119).pdf\n\n12021055NOA_Closure Letter_11182021_(20-197119)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Closure%20Letter_11182021_(20-197119)_text.pdf\n\n12021055NOA_Notice of Amendment_08122021_(20-197119).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Notice%20of%20Amendment_08122021_(20-197119).pdf\n\n12021055NOA_Notice of Amendment_08122021_(20-197119)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Notice%20of%20Amendment_08122021_(20-197119)_text.pdf\n\n12021055NOA_Operator Response to Notice_08312021_(20-197119).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Operator%20Response%20to%20Notice_08312021_(20-197119).pdf\n\n12021055NOA_Notice of Amendment_08122021_(20-197119)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nAugust 12, 2021\nMr. Jack Sutton\nSVP Operations Services\nCentral Valley Gas Storage, LLC\n10 Peachtree Place NE\nAtlanta, Georgia 30309\nCPF 1-2021-055-NOA\nDear Mr. Sutton:\nFrom July 7 through July 10, 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 inspected Central\nValley Gas Storage, LLC’s (CVGS) procedures for its underground natural gas storage facility\n(UNGSF) wellpad near Princeton, California.\nOn the basis of the inspection, PHMSA has identified apparent inadequacies found within CVGS’s\nplans or procedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\nUnderground natural gas storage facilities, as defined in § 192.3, are\nnot subject to any requirements of this part aside from this section.\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\n\n\n\nCPF 1-2021-055-NOA\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.\nCVGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities under § 192.12(b) failed to include various reporting requirements in 49\nC.F.R. Part 191. Specifically, CVGS’s Reporting and Control of Incidents Procedure 1.01\n(Incidents Procedure) dated 2017 lacked the following reporting requirements set forth in Part 191:\n1. The procedure defined incidents on a pipeline but did not address incidents occurring\nin UNGSFs. (§ 191.3)\n2. The procedure regarding immediate notice of certain incidents did not address\nincidents occurring in UNGSFs. (§ 191.5(a))\n3. The procedure regarding 30-day incident reports did not address incidents occurring in\nUNGSFs. (§ 191.15(c))\n4. The procedure regarding supplemental or revised reports did not address incidents\noccurring in UNGSFs. (§ 191.15(d))\n5. The procedure did not address safety related conditions for UNGSFs. (§ 191.23(a))\nTherefore, CVGS’s written procedures for operations, maintenance, and emergency preparedness\nand response activities were inadequate because they failed to address reporting requirements for\nUNGSFs. CVGS must revise its Incidents Procedure to address the deficiencies in reporting\nprocedures outlined above.\n2. § 192.12 Underground natural gas storage facilities.\nUnderground natural gas storage facilities, as defined in § 192.3, are\nnot subject to any requirements of this part aside from this section.\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.\nCVGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities under § 192.12(b) failed to adequately address the requirements of API RP\n1171, Section 11.9.1 (Section 11.9.1).1 Section 11.9.1 states that “The operator shall develop\n1 See 49 C.F.R. § 192.12(b)(2)\n12021055NOA_Notice of Amendment_08122021_(20-197119)_text Page 2 of 4\n\n\n\nCPF 1-2021-055-NOA\nprograms incorporating safeguards to the environment, site security, and safety and health into\nstorage design, construction, and operations.” CVGS’s Integrity and Risk Management Plan\n(RMP), dated March 2019, failed to state what the referenced programs were or how they\nincorporated the required safeguards, nor did it provide any information regarding the location of\nthe programs within either the RMP or elsewhere.2 CVGS must revise its manuals to adequately\naddress the requirements set forth in API RP 1171 Section 11.9.1.\n3. § 192.12 Underground natural gas storage facilities.\nUnderground natural gas storage facilities, as defined in § 192.3, are\nnot subject to any requirements of this part aside from this section.\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.\nCVGS’s written procedures for carrying out its integrity management program failed to address\nthreat and hazard interactions as required by API RP 1171 Section 8.3.2. Section 8.3.2 states: “The\noperator shall use available information such as performance data collected through the field\nhistory, operations and maintenance (O&M) activities, geotechnical data such as well logs,\nengineering data, and completion reports to determine susceptibility to threat and hazard-related\nevents and to assess threat and hazard interaction.”\nDuring the inspection, the CalGEM inspectors reviewed CVGS’s RMP. The RMP did not include\na process addressing threat and hazard interactions as required by Section 8.3.2. Therefore,\nCVGS’s written procedures required by § 192.12(d)(4) were inadequate. CVGS must revise its\nRMP procedure to address threat and hazard interactions in accordance with API RP 1171 Section\n8.3.2.\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\n2 Instead, CVGS’s procedures generally stated that “CVGS has developed programs incorporating safeguards to the\nenvironment, site security, and safety and health into storage design, construction, and operations. CVGS’s programs\nincorporate established procedures that are founded on industry recommended practices and are applicable to process\nsafety in storage operations.” RMP, Section 4.4.3 Safety and Environmental Programs.\n12021055NOA_Notice of Amendment_08122021_(20-197119)_text Page 3 of 4\n\n\n\nCPF 1-2021-055-NOA\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\nthe document 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\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 Central Valley Gas Storage, LLC maintain documentation of\nthe 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\n1-2021-055-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\n12021055NOA_Notice of Amendment_08122021_(20-197119)_text Page 4 of 4\n\n12021055NOA_Closure Letter_11182021_(20-197119)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nNovember 18, 2021\nMr. Jack Sutton\nSVP Operations Services\nCentral Valley Gas Storage, LLC\n10 Peachtree Place NE\nAtlanta, Georgia 30309\nCPF 1-2021-055 NOA\nDear Mr. Sutton:\nOn July 7 through July 10, 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 inspected Central\nValley Gas Storage, LLC’s (CVGS) procedures for its underground natural gas storage facility\n(UNGSF) wellpad near Princeton, California.\nAs a result of the inspection, CVGS was issued a Notice of Amendment on August 12, 2021, which\nproposed amendment of your procedures.\nCVGS submitted its amended procedures on August 31, 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","truncated":false,"body_characters":12517}