# CENTRAL VALLEY GAS STORAGE, LLC — Notice of Amendment

- **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:** Not available
- **summary:** CLOSED notice of amendment citing 192.12(c), 192.12(d)(4).
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- **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.

Official case documents:

12021055NOA_Closure Letter_11182021_(20-197119).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Closure%20Letter_11182021_(20-197119).pdf

12021055NOA_Closure Letter_11182021_(20-197119)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Closure%20Letter_11182021_(20-197119)_text.pdf

12021055NOA_Notice of Amendment_08122021_(20-197119).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021055NOA/12021055NOA_Notice%20of%20Amendment_08122021_(20-197119).pdf

12021055NOA_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

12021055NOA_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

12021055NOA_Notice of Amendment_08122021_(20-197119)_text.pdf

NOTICE OF AMENDMENT
OVERNIGHT EXPRESS DELIVERY
August 12, 2021
Mr. Jack Sutton
SVP Operations Services
Central Valley Gas Storage, LLC
10 Peachtree Place NE
Atlanta, Georgia 30309
CPF 1-2021-055-NOA
Dear Mr. Sutton:
From July 7 through July 10, 2020, an inspector from the California Geologic Energy Management
Division (CalGEM), acting as an agent for the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code inspected Central
Valley Gas Storage, LLC’s (CVGS) procedures for its underground natural gas storage facility
(UNGSF) wellpad near Princeton, California.
On the basis of the inspection, PHMSA has identified apparent inadequacies found within CVGS’s
plans or procedures, as described below:
1. § 192.12 Underground natural gas storage facilities.
Underground natural gas storage facilities, as defined in § 192.3, are
not subject to any requirements of this part aside from this section.
(a) …
(c) Procedural manuals. Each operator of a UNGSF must prepare
and follow for each facility one or more manuals of written procedures
for conducting operations, maintenance, and emergency preparedness
and response activities under paragraphs (a) and (b) of this section.
Each operator must keep records necessary to administer such
procedures and review and update these manuals at intervals not
exceeding 15 months, but at least once each calendar year. Each
operator must keep the appropriate parts of these manuals accessible



CPF 1-2021-055-NOA
at locations where UNGSF work is being performed. Each operator
must have written procedures in place before commencing operations
or beginning an activity not yet implemented.
CVGS’s written procedures for conducting operations, maintenance, and emergency preparedness
and response activities under § 192.12(b) failed to include various reporting requirements in 49
C.F.R. Part 191. Specifically, CVGS’s Reporting and Control of Incidents Procedure 1.01
(Incidents Procedure) dated 2017 lacked the following reporting requirements set forth in Part 191:
1. The procedure defined incidents on a pipeline but did not address incidents occurring
in UNGSFs. (§ 191.3)
2. The procedure regarding immediate notice of certain incidents did not address
incidents occurring in UNGSFs. (§ 191.5(a))
3. The procedure regarding 30-day incident reports did not address incidents occurring in
UNGSFs. (§ 191.15(c))
4. The procedure regarding supplemental or revised reports did not address incidents
occurring in UNGSFs. (§ 191.15(d))
5. The procedure did not address safety related conditions for UNGSFs. (§ 191.23(a))
Therefore, CVGS’s written procedures for operations, maintenance, and emergency preparedness
and response activities were inadequate because they failed to address reporting requirements for
UNGSFs. CVGS must revise its Incidents Procedure to address the deficiencies in reporting
procedures outlined above.
2. § 192.12 Underground natural gas storage facilities.
Underground natural gas storage facilities, as defined in § 192.3, are
not subject to any requirements of this part aside from this section.
(a) …
(c) Procedural manuals. Each operator of a UNGSF must prepare
and follow for each facility one or more manuals of written procedures
for conducting operations, maintenance, and emergency preparedness
and response activities under paragraphs (a) and (b) of this section.
Each operator must keep records necessary to administer such
procedures and review and update these manuals at intervals not
exceeding 15 months, but at least once each calendar year. Each
operator must keep the appropriate parts of these manuals accessible
at locations where UNGSF work is being performed. Each operator
must have written procedures in place before commencing operations
or beginning an activity not yet implemented.
CVGS’s written procedures for conducting operations, maintenance, and emergency preparedness
and response activities under § 192.12(b) failed to adequately address the requirements of API RP
1171, Section 11.9.1 (Section 11.9.1).1 Section 11.9.1 states that “The operator shall develop
1 See 49 C.F.R. § 192.12(b)(2)
12021055NOA_Notice of Amendment_08122021_(20-197119)_text Page 2 of 4



CPF 1-2021-055-NOA
programs incorporating safeguards to the environment, site security, and safety and health into
storage design, construction, and operations.” CVGS’s Integrity and Risk Management Plan
(RMP), dated March 2019, failed to state what the referenced programs were or how they
incorporated the required safeguards, nor did it provide any information regarding the location of
the programs within either the RMP or elsewhere.2 CVGS must revise its manuals to adequately
address the requirements set forth in API RP 1171 Section 11.9.1.
3. § 192.12 Underground natural gas storage facilities.
Underground natural gas storage facilities, as defined in § 192.3, are
not subject to any requirements of this part aside from this section.
(a) …
(d) Integrity management program—
(1) …
(4) Integrity management procedures and recordkeeping. Each
UNGSF operator must establish and follow written procedures to carry
out its integrity management program under API RP 1171
(incorporated by reference, see § 192.7), section 8 ("Risk Management
for Gas Storage Operations"), and this paragraph (d). The operator
must also maintain, for the useful life of the UNGSF, records that
demonstrate compliance with the requirements of this paragraph (d).
This includes records developed and used in support of any
identification, calculation, amendment, modification, justification,
deviation, and determination made, and any action taken to implement
and evaluate any integrity management program element.
CVGS’s written procedures for carrying out its integrity management program failed to address
threat and hazard interactions as required by API RP 1171 Section 8.3.2. Section 8.3.2 states: “The
operator shall use available information such as performance data collected through the field
history, operations and maintenance (O&M) activities, geotechnical data such as well logs,
engineering data, and completion reports to determine susceptibility to threat and hazard-related
events and to assess threat and hazard interaction.”
During the inspection, the CalGEM inspectors reviewed CVGS’s RMP. The RMP did not include
a process addressing threat and hazard interactions as required by Section 8.3.2. Therefore,
CVGS’s written procedures required by § 192.12(d)(4) were inadequate. CVGS must revise its
RMP procedure to address threat and hazard interactions in accordance with API RP 1171 Section
8.3.2.
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as
2 Instead, CVGS’s procedures generally stated that “CVGS has developed programs incorporating safeguards to the
environment, site security, and safety and health into storage design, construction, and operations. CVGS’s programs
incorporate established procedures that are founded on industry recommended practices and are applicable to process
safety in storage operations.” RMP, Section 4.4.3 Safety and Environmental Programs.
12021055NOA_Notice of Amendment_08122021_(20-197119)_text Page 3 of 4



CPF 1-2021-055-NOA
part of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement
Proceedings.
Please refer to this document and note the response options. Be advised that all material you
submit in response to this enforcement action is subject to being made publicly available. If you
believe that any portion of your responsive material qualifies for confidential treatment under 5
U.S.C. § 552(b), along with the complete original document you must provide a second copy of
the document with the portions you believe qualify for confidential treatment redacted and an
explanation of why you believe the redacted information qualifies for confidential treatment under
5 U.S.C. § 552(b).
Following the receipt of this Notice, you have 30 days to submit written comments, revised
procedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of
receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice
and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice
without further notice to you and to issue an Order Directing Amendment. If your plans or
procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans
or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this
Notice, we propose that you submit your amended procedures to my office within 30 days of
receipt of this Notice. This period may be extended by written request for good cause. Once the
inadequacies identified herein have been addressed in your amended procedures, this enforcement
action will be closed.
It is requested (not mandated) that Central Valley Gas Storage, LLC maintain documentation of
the safety improvement costs associated with fulfilling this Notice of Amendment
(preparation/revision of plans, procedures) and submit the total to Robert Burrough, Director,
Eastern Region, Pipeline and Hazardous Materials Safety Administration, 840 Bear Tavern Road,
Suite 300, West Trenton, NJ 08628. In correspondence concerning this matter, please refer to CPF
1-2021-055-NOA and, for each document you submit, please provide a copy in electronic format
whenever possible. Smaller files may be emailed to robert.burrough@dot.gov. Larger files should
be sent on USB flash drive accompanied by the original paper copy to the Eastern Region Office.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Enforcement Proceedings
12021055NOA_Notice of Amendment_08122021_(20-197119)_text Page 4 of 4

12021055NOA_Closure Letter_11182021_(20-197119)_text.pdf

OVERNIGHT EXPRESS DELIVERY
November 18, 2021
Mr. Jack Sutton
SVP Operations Services
Central Valley Gas Storage, LLC
10 Peachtree Place NE
Atlanta, Georgia 30309
CPF 1-2021-055 NOA
Dear Mr. Sutton:
On July 7 through July 10, 2020, an inspector from the California Geologic Energy Management
Division (CalGEM), acting as an agent for the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code inspected Central
Valley Gas Storage, LLC’s (CVGS) procedures for its underground natural gas storage facility
(UNGSF) wellpad near Princeton, California.
As a result of the inspection, CVGS was issued a Notice of Amendment on August 12, 2021, which
proposed amendment of your procedures.
CVGS submitted its amended procedures on August 31, 2021. My staff reviewed the amended
procedures, and it appears that the inadequacies outlined in this Notice of Amendment have been
corrected.
This letter is to inform you no further action is necessary and this case is now closed. Thank you
for your cooperation.
Sincerely,
Robert Burrough
Director, Eastern Region
Pipeline and Hazardous Materials Safety Administration
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