{"operation":"document","citation":"CPF 12021060NOA","title":"UGI ENERGY SERVICES — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-10-07","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(3), 195.402(e)(3), 195.402(e)(7), 195.403(a), 195.403(b), 195.403(c), 195.452(f)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021060noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021060noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021060noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021060NOA","body":"Notice of Amendment involving UGI ENERGY SERVICES. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(3),  195.402(e)(3),  195.402(e)(7),  195.403(a),  195.403(b),  195.403(c),  195.452(f)(4). The case was opened on 2021-10-07 and is reported as closed as of 2021-12-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021060NOA_Closure Letter_12222021_(21-199003).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021060NOA/12021060NOA_Closure%20Letter_12222021_(21-199003).pdf\n\n12021060NOA_Closure Letter_12222021_(21-199003)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021060NOA/12021060NOA_Closure%20Letter_12222021_(21-199003)_text.pdf\n\n12021060NOA_Notice of Amendment_10072021_(21-199003).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021060NOA/12021060NOA_Notice%20of%20Amendment_10072021_(21-199003).pdf\n\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021060NOA/12021060NOA_Notice%20of%20Amendment_10072021_(21-199003)_text.pdf\n\n12021060NOA_Operator Response to Notice_11052021_(21-199003).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021060NOA/12021060NOA_Operator%20Response%20to%20Notice_11052021_(21-199003).pdf\n\n12021060NOA_Closure Letter_12222021_(21-199003)_text.pdf\n\nVIA ELECTRONIC MAIL TO: jhartz@ugies.com\nDecember 22, 2021\nMr. Joseph Hartz\nVice President Asset Management\nUGI Energy Services\n1 Meridian Boulevard\nWyomissing, PA 19610\nCPF 1-2021-060-NOA\nDear Mr. Hartz:\nFrom March 29, 2021 to April 1, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) inspected UGI Energy Services’ (UGI) procedures. As a result of the\ninspection, UGI was issued a Notice of Amendment (NOA) on October 7, 2021, which proposed\namendment of your procedures. UGI submitted its amended procedures on November 5, 2021.\nOn November 9, 2021 PHMSA discussed with UGI its concerns regarding the inadequacies\nidentified in the amended procedures. UGI re-submitted its amended procedures on December 17,\n2021. My staff reviewed the amended procedures, and it appears that the inadequacies outlined in\nthis Notice of Amendment have been corrected.\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\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nOctober 7, 2021\nMr. Joseph Hartz\nVice President Asset Management\nUGI Energy Services\n1 Meridian Boulevard\nWyomissing, PA 19610\nCPF 1-2021-060-NOA\nDear Mr. Hartz:\nFrom March 29, 2021 to April 1, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.) inspected UGI Energy Services’ (UGI) procedures.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nUGI’s plans or procedures, as described below:\n1. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each\npipeline system a manual of written procedures for conducting normal\noperations and maintenance activities and handling abnormal\noperations and emergencies. This manual shall be reviewed at intervals\nnot exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to insure that the manual is\neffective. This manual shall be prepared before initial operations of a\npipeline system commence, and appropriate parts shall be kept at\nlocations where operations and maintenance activities are conducted.\nUGI’s emergency procedures were inadequate to assure safe operation of a pipeline facility.\nSpecifically, UGI’s Asset Emergency Response Plan - Base Plan, revision date 03/03/2021 (ERP),\nfailed to state the proper frequency for conducting a review of the emergency response manual, in\naccordance with § 195.402(a).\n\n\n\nCPF 1-2021-060-NOA\nDuring the inspection, PHMSA requested UGI’s procedures regarding the emergency response\nplan annual review and UGI provided its ERP. The ERP failed to state that the manual must be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year, and\nappropriate changes made as necessary to ensure that the manual is effective. When the PHMSA\ninspector re-requested this information, UGI stated that it was located in the field listing the next\nrevision date of the document. That field had the next revision date as one year from the prior\nrevision. This does not accurately state the review requirement of § 195.402(a).\nTherefore, UGI failed to include adequate details in its written procedures requiring that the\nmanual shall be reviewed at intervals not exceeding 15 months, but at least once each calendar\nyear, and appropriate changes made as necessary to ensure that the manual is effective, in\naccordance with § 195.402(a). UGI must revise its procedures to specifically address this\nrequirement.\n2. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following\nto provide safety during maintenance and normal operations:\n(1) …\n(3) Operating, maintaining, and repairing the pipeline system in\naccordance with each of the requirements of this subpart and subpart\nH of this part.\nUGI’s procedures were inadequate to assure safe operation of a pipeline facility. Specifically,\nUGI’s Liquid Operations Manual Section 30.30.40 – Firefighting Equipment – Portable Fire\nExtinguishers, issue date 03/22/2021 (LOM Fire Procedures) failed to provide adequate details\nregarding firefighting equipment in accordance with § 195.430.1\nDuring the inspection, PHMSA requested UGI’s procedures regarding firefighting equipment.\nUGI provided its LOM Fire Procedures. Section 3.0 of the LOM Fire Procedures stated in part:\n3.1 Firefighting equipment shall be maintained on a monthly basis and be in proper operating\ncondition at all times at each pump station and breakout tank area. This equipment consists of:\n3.1.1 Various types of portable fire extinguishers\n3.1.2 Spill containment materials\n3.2 Firefighting equipment at pump stations and breakout tanks areas must be plainly marked\nso that it can be clearly identified in the event of a fire.\n3.3 Firefighting equipment at pump stations and breakout tank areas will be placed in locations\n1 § 195.430 Firefighting equipment.\nEach operator shall maintain adequate firefighting equipment at each pump station and breakout tank area. The\nequipment must be—\n(a) In proper operating condition at all times;\n(b) Plainly marked so that its identity as firefighting equipment is clear; and\n(c) Located so that it is easily accessible during a fire.\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 2 of 8\n\n\n\nCPF 1-2021-060-NOA\nabout the facility such that it can be readily accessed during a fire. This includes the pump\narea as well as the inside and outside of the electrical control building.\nHowever, the LOM Fire Procedure did not provide adequate details to assure compliance with §\n195.430. For example, the LOM Fire Procedure failed to establish:\n Procedures for firefighting equipment inspections;\n The criteria for passage or failure of an inspection;\n Procedures requiring documenting the inspections on the proper inspection form – Hickory\nBend Gas Plant Company Compliance Program - MLBV Fire Extinguisher Inspection;\n Procedures for repairing firefighting equipment if it is found not to be in proper working\norder at the time of the inspection.\nTherefore, UGI failed to include adequate details in its written LOM Fire Procedures regarding\nfirefighting equipment. UGI must revise its procedures to address this requirement.\n3. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(c) Maintenance and normal operations. The manual required by\nparagraph (a) of this section must include procedures for the following\nto provide safety during maintenance and normal operations:\n(1) …\n(3) Operating, maintaining, and repairing the pipeline system in\naccordance with each of the requirements of this subpart and subpart\nH of this part.\nUGI’s procedures for maintenance and normal operations were inadequate to assure safe operation\nof a pipeline facility. Specifically, UGI’s Liquid Operations Manual Section 40.20.30 – Leak\nInspection and Response Plan, issue date 03/08/2021 (LOM Leak Procedures), failed to include\ndetails on evaluating the capability of its leak detection systems to protect the public, property, and\nthe environment and modifying them as necessary to do so, in accordance with § 195.444(b).2\nDuring the inspection, PHMSA requested UGI’s procedures regarding the § 195.444(b) leak\ndetection requirements. UGI was unable to provide a relevant section of the LOM Leak Procedures\nwhich indicated compliance with these requirements.\nTherefore, UGI’s procedures were inadequate regarding § 195.444(b). UGI must revise its\nprocedures to address this evaluation requirement, which should include, at a minimum,\nconsideration of all the factors set forth in § 195.444(b).\n2 § 195.444 Leak detection.\n(a) …\n(b) General. A pipeline must have an effective system for detecting leaks in accordance with §§195.134 or 195.452,\nas appropriate. An operator must evaluate the capability of its leak detection system to protect the public, property,\nand the environment and modify it as necessary to do so. At a minimum, an operator's evaluation must consider the\nfollowing factors—length and size of the pipeline, type of product carried, the swiftness of leak detection, location\nof nearest response personnel, and leak history.\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 3 of 8\n\n\n\nCPF 1-2021-060-NOA\n4. § 195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(e) Emergencies. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety\nwhen an emergency condition occurs:\n(1) …\n(3) Having personnel, equipment, instruments, tools, and material\navailable as needed at the scene of an emergency.\nUGI’s emergency procedures were inadequate to assure safe operation of a pipeline facility.\nSpecifically, UGI’s Asset Emergency Response Plan - Base Plan, revision date 03/03/2021 (ERP)\nand Emergency Response Plan Subpart D – Appendix E1 - 800 NGL LINE, revision date\n03/23/2021 (ERP Appendix E) failed to include adequate details requiring personnel, equipment,\ninstruments, tools, and material to be available as needed at the scene of an emergency, in\naccordance with § 195.402(e)(3).\nDuring the inspection, PHMSA requested UGI’s procedures regarding the §195.402(e)(3)\nrequirements. UGI was unable to provide a relevant section of its ERP or ERP Appendix E\nprocedures which indicated compliance with these requirements.\nTherefore, UGI failed to include adequate details in its written procedures requiring personnel,\nequipment, instruments, tools, and material to be available as needed at the scene of an emergency,\nin accordance with §195.402(e)(3). UGI must revise its procedures to address this requirement.\n5. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) …\n(e) Emergencies. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety\nwhen an emergency condition occurs:\n(1) …\n(7) Notifying fire, police, and other appropriate public officials of\nhazardous liquid or carbon dioxide pipeline emergencies and\ncoordinating with them preplanned and actual responses during an\nemergency, including additional precautions necessary for an\nemergency involving a pipeline system transporting a highly volatile\nliquid.\nUGI’s emergency procedures were inadequate to assure safe operation of a pipeline facility.\nSpecifically, UGI’s Asset Emergency Response Plan - Base Plan, revision date 03/03/2021 (ERP)\nand Emergency Response Plan Subpart D – Appendix E1 - 800 NGL LINE, revision date\n03/23/2021 (ERP Appendix E) failed to contain details to notify fire, police, and other appropriate\npublic officials of hazardous liquid pipeline emergencies and details on coordinating with them\npreplanned and actual responses during an emergency in accordance with § 195.402(e)(7).\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 4 of 8\n\n\n\nCPF 1-2021-060-NOA\nDuring the inspection, PHMSA requested UGI’s procedures regarding the § 195.402(e)(7)\nrequirements. UGI was unable to provide a relevant section of the ERP or ERP Appendix E\nprocedures which indicated compliance with these requirements.\nTherefore, UGI failed to include adequate details in its written procedures requiring details to\nnotify fire, police, and other appropriate public officials of hazardous liquid pipeline emergencies\nand coordinate with them preplanned and actual responses during an emergency, in accordance\nwith § 195.402(e)(7). UGI must revise its procedures to address this requirement.\n6. §195.403 Emergency response training.\n(a) Each operator shall establish and conduct a continuing training\nprogram to instruct emergency response personnel to:\n(1) Carry out the emergency procedures established under 195.402\nthat relate to their assignments;\n(2) Know the characteristics and hazards of the hazardous liquids\nor carbon dioxide transported, including, in case of flammable HVL,\nflammability of mixtures with air, odorless vapors, and water\nreactions;\n(3) Recognize conditions that are likely to cause emergencies,\npredict the consequences of facility malfunctions or failures and\nhazardous liquids or carbon dioxide spills, and take appropriate\ncorrective action;\n(4) Take steps necessary to control any accidental release of\nhazardous liquid or carbon dioxide and to minimize the potential for\nfire, explosion, toxicity, or environmental damage; and\n(5) Learn the potential causes, types, sizes, and consequences of fire\nand the appropriate use of portable fire extinguishers and other on-site\nfire control equipment, involving, where feasible, a simulated pipeline\nemergency condition.\nUGI’s emergency procedures were inadequate to assure safe operation of a pipeline facility.\nSpecifically, UGI’s Asset Emergency Response Plan - Base Plan, revision date 03/03/2020 (ERP)\nfailed to contain adequate details to establish and conduct a training program to instruct emergency\nresponse personnel to meet the requirements of § 195.403(a).\nDuring the inspection, PHMSA requested UGI’s procedures regarding emergency response\ntraining. UGI provided its Training Course Outline – Emergency Response Operations, revision\ndate 03/05/21 (Training Record). This Training Record was not linked or referenced to the ERP\nManual. Furthermore, the Training Record did not correspond to or outline any details regarding\na training procedure.\nTherefore, UGI failed to include adequate details in its written procedures to establish and conduct\na training program to instruct emergency response personnel, in accordance with § 195.403(a).\nUGI must revise its procedures to address this requirement.\n7. § 195.403 Emergency response training.\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 5 of 8\n\n\n\nCPF 1-2021-060-NOA\n(a) …\n(b) At the intervals not exceeding 15 months, but at least once each\ncalendar year, each operator shall:\n(1) Review with personnel their performance in meeting the\nobjectives of the emergency response training program set forth in\nparagraph (a) of this section; and\n(2) Make appropriate changes to the emergency response training\nprogram as necessary to ensure that it is effective.\nUGI’s emergency procedures were inadequate to assure safe operation of a pipeline facility.\nSpecifically, UGI’s Asset Emergency Response Plan - Base Plan, revision date 03/03/2020 (ERP)\nfailed to state that it shall, at intervals not exceeding 15 months, but at least once each calendar\nyear, review with personnel their performance in meeting the objectives of the emergency response\ntraining program and make appropriate changes to the emergency response training program as\nnecessary to ensure that it is effective in accordance with the requirements of § 195.403(b).\nDuring the inspection, PHMSA requested UGI’s procedures regarding emergency response\ntraining review and update frequencies relative to § 195.403(b). UGI was unable to provide a\nrelevant section of the ERP procedures which indicated compliance with these requirements.\nTherefore, UGI failed to include adequate details in its written procedures for complying with the\nrequirements of § 195.403(b). UGI must revise its procedures to address these requirements.\n8. § 195.403 Emergency response training.\n(a) …\n(c) Each operator shall require and verify that its supervisors\nmaintain a thorough knowledge of that portion of the emergency\nresponse procedures established under 195.402 for which they are\nresponsible to ensure compliance.\nUGI’s procedures were inadequate to assure safe operation of a pipeline facility. Specifically,\nUGI’s Asset Emergency Response Plan - Base Plan, revision date 03/03/2020 (ERP) failed to\nestablish a continuing training program that includes provisions to require and verify that\nsupervisors be knowledgeable of emergency response procedures for which they are responsible,\nin accordance with the requirements of § 195.403(c).\nDuring the inspection, PHMSA requested UGI’s procedures regarding emergency response\nsupervisor training. UGI was unable to provide a relevant section of the ERP which indicated\ncompliance with this requirement. UGI stated that training is verified through completion of a\ntest. However, this is not contained in the procedure.\nTherefore, UGI failed to establish a continuing training program that includes provisions to require\nand verify that supervisors are knowledgeable of emergency response procedures for which they\nare responsible, in accordance with § 195.403(c). UGI must revise its procedures to address this\nrequirement.\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 6 of 8\n\n\n\nCPF 1-2021-060-NOA\n9. § 195.452 Pipeline integrity management in high consequence areas.\n(a) …\n(f) What are the elements of an integrity management program? An\nintegrity management program begins with the initial framework. An\noperator must continually change the program to reflect operating\nexperience, conclusions drawn from results of the integrity assessments,\nand other maintenance and surveillance data, and evaluation of\nconsequences of a failure on the high consequence area. An operator must\ninclude, at minimum, each of the following elements in its written integrity\nmanagement program:\n(1) …\n(4) Criteria for remedial actions to address integrity issues raised by\nthe assessment methods and information analysis (see paragraph (h) of this\nsection);\nUGI’s integrity management program procedures were inadequate to assure safe operation of a\npipeline facility. Specifically, UGI’s Liquid Operations Manual – Integrity Management\nProgram, issue date 3/23/21 (LOM IMP) failed to include details to notify PHMSA if it believes\nthat 180 days are impracticable to make a determination about a condition found during an\nassessment in accordance with § 195.452(h)(2).3\nDuring the inspection, PHMSA requested UGI’s procedure regarding the § 195.452(h)(2)\nrequirements. UGI was unable to provide a relevant section of the LOM IMP. UGI stated that\nthis information is not included in the procedure because they do not give the option to exceed the\n180-day requirement. Although this may be true, there may be times when UGI exceeds the 180-\nday requirement due to unforeseeable circumstances or for other reasons, in which case it must\ngive notice to PHMSA. Therefore, the reporting requirement must be included in its written\nprocedures, despite how rarely the company intends to use it.\nUGI must revise its procedures to address this requirement.\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.\n3 § 195.452 Pipeline integrity management in high consequence areas.\n(a) …\n(h) What actions must an operator take to address integrity issues?\n(1) …\n(2) Discovery of condition. Discovery of a condition occurs when an operator has adequate information to determine\nthat a condition presenting a potential threat to the integrity of the pipeline exists. An operator must promptly, but no\nlater than 180 days after an assessment, obtain sufficient information about a condition to make that determination,\nunless the operator can demonstrate the 180-day interval is impracticable. If the operator believes that 180 days are\nimpracticable to make a determination about a condition found during an assessment, the pipeline operator must\nnotify PHMSA in accordance with paragraph (m) of this section and provide an expected date when adequate\ninformation will become available.\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 7 of 8\n\n\n\nCPF 1-2021-060-NOA\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\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 UGI Energy Services maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration, 840 Bear Tavern Road, Suite 300, West Trenton, NJ\n08628. In correspondence concerning this matter, please refer to CPF 1-2021-060-NOA and, for\neach document you submit, please provide a copy in electronic format whenever possible. Smaller\nfiles may be emailed to robert.burrough@dot.gov. Larger files should be sent on USB flash drive\naccompanied 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\n12021060NOA_Notice of Amendment_10072021_(21-199003)_text Page 8 of 8","truncated":false,"body_characters":24099}