{"operation":"document","citation":"CPF 12021056WL","title":"GILL RANCH STORAGE LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-08-24","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021056wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021056wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021056wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021056WL","body":"Warning Letter involving GILL RANCH STORAGE LLC. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2021-08-24 and is reported as closed as of 2021-08-24. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021056WL_Warning Letter_08242021_(20-197118).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021056WL/12021056WL_Warning%20Letter_08242021_(20-197118).pdf\n\n12021056WL_Warning Letter_08242021_(20-197118)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021056WL/12021056WL_Warning%20Letter_08242021_(20-197118)_text.pdf\n\n12021056WL_Warning Letter_08242021_(20-197118)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nAugust 24, 2021\nMr. Mark Stauss\nPresident\nGill Ranch Storage LLC\n10000 Memorial Drive, Suite 330\nHouston, TX 77024\nCPF 1-2021-056-WL\nDear Mr. Stauss:\nFrom August 18 to August 20, 2020, California Geologic Energy Management Division\n(CalGEM) acting as an agent for the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Gill Ranch Gas\nStorage LLC’s (Gill Ranch) Underground Natural Gas Storage (UNGS) operations located near\nMendota, California.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\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 1-2021-056-WL\nGill Ranch failed to meet the provisions of API RP 1171, Section 8. Specifically, Gill Ranch failed\nto include risk related to the storage operation using available information from its bi-annual land\nsurface elevation monitoring program in accordance with API RP 1171, Section 8.3.2 Data\nSources (Section 8.3.2).\nSection 8.3.2 states:\nThe operator shall use available information such as performance data collected through the\nfield history, operations and maintenance (O&M) activities, geotechnical data such as well\nlogs, engineering data, and completion reports to determine susceptibility to threat and\nhazard-related events and to assess threat and hazard interaction.\nDuring the inspection, CalGEM inspectors reviewed Gill Ranch’s Risk Management Plan (RMP),\ndated July 27, 2020. The inspectors noted that Gill Ranch’s biannual land surface elevation\nmonitoring program and its basic storage well design indicated understanding of threats posed by\nseasonal vertical fluctuation and longer-term subsidence of the ground surface to well and reservoir\nintegrity. However, Gill Ranch maintained that the program was mandatory, yet, did not include\nit as a mandatory component of their RMP.\nTherefore, Gill Ranch failed to meet the provisions of API RP 1171, Section 8 as required by\n§ 192.12(b)(2).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related\nseries of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,\nthe maximum penalty may not exceed $222,504 per violation per day the violation persists, up to\na maximum of $2,225,034 for a related series of violations. For violation occurring on or after\nJuly 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022.\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 item identified in this letter. Failure to do so will result in Gill\nRanch Gas 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 1-2021-056-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\n12021056WL_Warning Letter_08242021_(20-197118)_text Page 2 of 3\n\n\n\nCPF 1-2021-056-WL\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\n12021056WL_Warning Letter_08242021_(20-197118)_text Page 3 of 3","truncated":false,"body_characters":5721}