{"operation":"document","citation":"CPF 12021066WL","title":"LODI GAS STORAGE, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-18","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021066wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021066wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021066wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021066WL","body":"Warning Letter involving LODI GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2021-11-18 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\n12021066WL_Warning Letter_11182021_(21-215235).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021066WL/12021066WL_Warning%20Letter_11182021_(21-215235).pdf\n\n12021066WL_Warning Letter_11182021_(21-215235)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021066WL/12021066WL_Warning%20Letter_11182021_(21-215235)_text.pdf\n\n12021066WL_Warning Letter_11182021_(21-215235)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Mathieu.Fournier@rockpointgs.com\nNovember 18, 2021\nMr. Mathieu Fournier\nManager, Reservoir Engineering\nEngineering & Operations\nLodi Gas Storage, LLC\n400 - 607 8th Ave SW\nCalgary, AB T2P 0A7\nCPF 1-2021-066-WL\nDear Mr. Fournier:\nFrom September 15 through 18, 2020, California Geologic Energy Management Division (CalGEM)\nacting as an agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant\nto Chapter 601 of 49 United States Code (U.S.C.) inspected Lodi Gas Storage, LLC’s (LGS) Lodi and\nKirby Hill Underground Natural Gas Storage Facilities near Acampo, California and Birds Landing,\nCalifornia, respectively.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable\nviolation 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 before\nJuly 18, 2017, must meet the provisions of API RP 1171 (incorporated by\nreference, see § 192.7), sections 8, 9, 10, and 11, and paragraph (c) of this\nsection, by January 18, 2018, and must meet all provisions of paragraph\n(d) of this section by March 13, 2021.\nLGS failed to meet the provisions of API RP 1171, Section 9. Specifically, LGS failed to evaluate each\nannular gas occurrence that exceeded operator-defined threshold levels in accordance with API RP\n1171, Section 9.3.2 (Section 9.3.2).\n\n\n\nCPF 1-2021-066-WL\nSection 9.3.2 states in part:\nThe operator shall evaluate each annular gas occurrence that exceeds operator- or regulatory-\ndefined threshold levels determined from well integrity evaluation and from risk assessment.\nDuring the inspection, LGS was not able to provide records of the evaluation of each annular gas\noccurrence that exceeded operator or regulatory-defined threshold levels.\nTherefore, LGS failed to meet the provisions of Section 9.3.2.\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, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July 31,\n2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per\nday the violation persists, up to a maximum of $2,186,465 for a related series of violations. For\nviolation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty\nmay not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum\npenalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed\n$2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case and have decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time. We advise\nyou to correct the item identified in this letter. Failure to do so will result in Lodi Gas Storage, LLC\nbeing subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF\n1-2021-066-WL. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive material\nqualifies for confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\nSincerely,\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\n12021066WL_Warning Letter_11182021_(21-215235)_text Page 2 of 2","truncated":false,"body_characters":5127}