{"operation":"document","citation":"CPF 12021061WL","title":"NATIONAL FUEL GAS SUPPLY CORP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-09-14","effective_on":null,"summary":"CLOSED warning letter citing 191.5(a), 192.465(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021061wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021061wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021061wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021061WL","body":"Warning Letter involving NATIONAL FUEL GAS SUPPLY CORP. PHMSA's enforcement data identifies the cited regulations as 191.5(a),  192.465(b)(1). The case was opened on 2021-09-14 and is reported as closed as of 2021-09-14. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021061WL_Warning Letter_09142021_(20-172141).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021061WL/12021061WL_Warning%20Letter_09142021_(20-172141).pdf\n\n12021061WL_Warning Letter_09142021_(20-172141)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021061WL/12021061WL_Warning%20Letter_09142021_(20-172141)_text.pdf\n\n12021061WL_Warning Letter_09142021_(20-172141)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nSeptember 14, 2021\nMr. Ronald Kraemer\nPresident/CEO\nNational Fuel Gas Supply Corp\n6363 Main Street\nWilliamsville, NY14221\nCPF 1-2021-061-WL\nDear Mr. Kraemer:\nFrom June 23, 2020 to April 12, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) and inspectors from New York Department of Public Service\n(NY DPS) acting as agent of PHMSA, pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected National Fuel Gas Supply Corp’s (National Fuel) records of facilities in New York.\nAs a result of the inspection/investigation, it is alleged that you have committed probable violations\nof the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items\ninspected and the probable violations are:\n1. § 191.5 Immediate notice of certain incidents.\n(a) At the earliest practicable moment following discovery, but no\nlater than one hour after confirmed discovery, each operator must give\nnotice in accordance with paragraph (b) of this section of each incident\nas defined in §191.31\n.\nNational Fuel failed to give notice at the earliest practicable moment following discovery, but no\nlater than one hour after confirmed discovery of an incident. Specifically, National Fuel failed to\ngive immediate notice of a 11/28/2018 incident at Station EVE 47 on Line RM32/Ferrier Road\nStation.\n\n\n\nCPF 1-2021-061-WL\nDuring the inspection, the NY inspector reviewed Incident Report – Gas Transmission and\nGathering Pipeline Systems No. 20180134-31360, original report date 12-20-2018 (Incident\nReport). The Incident Report indicated that on 11/22/2018 21:23 local time, an incident occurred\nat Station EVE 47 on Line RM32 / Ferrier Rd Station. An equipment failure resulted in 5,300\nthousand cubic feet (MCF) of natural gas unintentionally released (per §191.3 definition of\nincident (1)(3)). The Incident Report indicated that National Fuel confirmed the incident on\n11/22/2018 21:59 and gave notice to the National Response Center on 11/28/2018 11:29. National\nFuel exceeded the earliest practicable moment following discovery, but no later than one hour after\nconfirmed discovery, by approximately 7 days and 14 hours.\nTherefore, National Fuel failed to give timely notice in accordance with § 191.5(b)2 of the\n11/22/2018 incident at Station EVE 47.\n2. § 192.465 External corrosion control: Monitoring.\n(a)…\n(b) Cathodic protection rectifiers and impressed current power\nsources must be periodically inspected as follows:\n(1) Each cathodic protection rectifier or impressed current power\nsource must be inspected six times each calendar year, but with\nintervals not exceeding 21∕2 months between inspections, to ensure\nadequate amperage and voltage levels needed to provide cathodic\nprotection are maintained. This may be done either through remote\nmeasurement or through an onsite inspection of the rectifier.\nNational Fuel failed to inspect each cathodic protection rectifier or impressed current power source\nsix times each calendar year, but with intervals not exceeding 2 ½ months between inspections, to\nensure adequate amperage and voltage levels needed to provide cathodic protection are\nmaintained. Specifically, cathodic protection rectifier 88139 was inspected twice at intervals\nexceeding 2 ½ months.\nDuring the inspection, the NY inspector reviewed National Fuel’s inspection history record of\nCorrosion Device ID 88139. The record indicated that rectifier 88139 was inspected on 3/14/2016\nand not again until 6/6/2016. The record also indicated that rectifier 88139 was inspected on\n5/7/2018 and not again until 7/24/2018. In both instances, the timeframe between inspections\nexceeded 2 ½ months by 8 days and 2 days respectively.\nTherefore, National Fuel failed to inspect each cathodic protection rectifier six times each calendar\nyear, but with intervals not exceeding 2 ½ months.\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\n12021061WL_Warning Letter_09142021_(20-172141)_text Page 2 of 3\n\n\n\nCPF 1-2021-061-WL\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 items identified in this letter. Failure to do so will result in\nNational Fuel Gas Supply Corp 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 1-2021-061-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\n1 §191.3 Definitions.\nIncident means any of the following events:\n(1) An event that involves a release of gas from a pipeline, gas from an underground natural gas storage facility (UNGSF),\nliquefied natural gas, liquefied petroleum gas, refrigerant gas, or gas from an LNG facility, and that results in one or more of the\nfollowing consequences:\n(i) A death, or personal injury necessitating in-patient hospitalization;\n(ii) Estimated property damage of $122,000 or more, including loss to the operator and others, or both, but excluding the\ncost of gas lost. For adjustments for inflation observed in calendar year 2021 onwards, changes to the reporting threshold will be\nposted on PHMSA's website. These changes will be determined in accordance with the procedures in appendix A to part 191.\n(iii) Unintentional estimated gas loss of three million cubic feet or more.\n2 § 191.5 Immediate notice of certain incidents.\n(b) Each notice required by paragraph (a) of this section must be made to the National Response Center either by telephone to\n800-424-8802 (in Washington, DC, 202 267-2675) or electronically at http://www.nrc.uscg.mil and must include the following\ninformation:\n(1) Names of operator and person making report and their telephone numbers.\n(2) The location of the incident.\n(3) The time of the incident.\n(4) The number of fatalities and personal injuries, if any.\n(5) All other significant facts that are known by the operator that are relevant to the cause of the incident or extent of the\ndamages.\n12021061WL_Warning Letter_09142021_(20-172141)_text Page 3 of 3","truncated":false,"body_characters":8523}