{"operation":"document","citation":"CPF 12021067NOA","title":"LODI GAS STORAGE, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-11-19","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(c), 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021067noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021067noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021067noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021067NOA","body":"Notice of Amendment involving LODI GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(4). The case was opened on 2021-11-19 and is reported as closed as of 2022-02-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021067NOA_Closure Letter_02222022_(21-215235).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021067NOA/12021067NOA_Closure%20Letter_02222022_(21-215235).pdf\n\n12021067NOA_Closure Letter_02222022_(21-215235)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021067NOA/12021067NOA_Closure%20Letter_02222022_(21-215235)_text.pdf\n\n12021067NOA_Notice of Amendment_11192021_(21-215235).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021067NOA/12021067NOA_Notice%20of%20Amendment_11192021_(21-215235).pdf\n\n12021067NOA_Notice of Amendment_11192021_(21-215235)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021067NOA/12021067NOA_Notice%20of%20Amendment_11192021_(21-215235)_text.pdf\n\n12021067NOA_Operator Response to Notice_12182021_(21-215235).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021067NOA/12021067NOA_Operator%20Response%20to%20Notice_12182021_(21-215235).pdf\n\n12021067NOA_Notice of Amendment_11192021_(21-215235)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Mathieu.Fournier@rockpointgs.com\nNovember 19, 2021\nMr. Mathieu Fournier\nManager, Reservoir Engineering\nEngineering & Operations\nLodi Gas Storage, LLC\n400 - 607 8th Ave SW\nCalgary, AB T2P 0A7\nCPF 1-2021-067-NOA\nDear Mr. Fournier:\nFrom September 15, 2020 through September 18, 2020, California Geologic Energy Management\nDivision (CalGEM), acting as an agent for the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nprocedures for Lodi Gas Storage, LLC’s (LGS) Lodi and Kirby Hill Underground Natural Gas\nStorage Facilities near Acampo, California and Birds Landing, California, respectively.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nLGS’s procedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\n\n\n\nCPF 1-2021-067-NOA\nmust have written procedures in place before commencing\noperations or beginning an activity not yet implemented.\nLGS’s written procedures for conducting operations, maintenance, and emergency preparedness\nand response activities were inadequate to ensure safe operation of a pipeline facility. Specifically,\nthe procedures failed to address construction activities discussed in API RP 1171, Section 6 and\nincorporated by reference under § 192.12(b), as required by § 192.12(c). 1\nDuring the inspection, LGS’s procedures for conducting operations, maintenance, and emergency\npreparedness and response activities were reviewed. Based upon this review, it was determined\nthat no procedures had been developed for well construction work. This was despite the fact that\nLGS had provided construction notifications for multiple wells that were planned to be plugged\nand abandoned, and for other well work done pursuant to API RP 1171, Sections 6.6 and 6.7.2\nTherefore, LGS’s written procedures, required by § 192.12(c), were inadequate. LGS must revise\nits procedures to address the well construction activities described in API RP 1171, Section 6.\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) Integrity management procedures and recordkeeping. Each\nUNGSF operator must establish and follow written procedures to carry\nout its integrity management program under API RP 1171\n(incorporated by reference, see § 192.7), section 8 (\"Risk Management\nfor Gas Storage Operations\"), and this paragraph (d). The operator\nmust also maintain, for the useful life of the UNGSF, records that\ndemonstrate compliance with the requirements of this paragraph (d).\nThis includes records developed and used in support of any\nidentification, calculation, amendment, modification, justification,\ndeviation, and determination made, and any action taken to implement\nand evaluate any integrity management program element.\nLGS’s written procedures for carrying out its integrity management program were inadequate to\nensure safe operation of a pipeline facility. Specifically, the procedures failed to address threat\n1 API RP 1171, Section 6 discusses construction activities such as construction of new wells, plugging and\nabandoning wells, recompletion of wells by plugback, kickoff and drilling of a new horizontal well, and workovers.\nSee, e.g., API RP 1171, Section 6.6 Well Remediation, 6.6.1 General (advising operators that, “[A] well identified as\nhaving compromised mechanical integrity shall be evaluated and responsive action implemented within a timeframe\nand by method(s) determined by the operator and corresponding to the severity of the integrity risk.”); Id., at\nSection 6.7 Well Closure (Plugging and Abandonment), 6.7.1 General (advising operators that they “shall design a\nwell abandonment for long-term isolation of the storage zone in order to prevent fluid flow between the storage zone\nand any other penetrated zone and the surface.”).\n2 Construction notifications on file with PHMSA.\n12021067NOA_Notice of Amendment_11192021_(21-215235)_text Page 2 of 4\n\n\n\nCPF 1-2021-067-NOA\nand hazard interactions as required by API RP 1171, Section 8.3.2.\n3\nDuring the inspection, LGS’s Risk Management Plan for the Wells and Reservoirs of the Lodi\nUnderground Gas Storage Project, dated 3312019 (RMP) procedure was reviewed. Section 5 of\nthe RMP discussed threats and hazards. However, it did not include an assessment of threat and\nhazard interactions. LGS was unable to provide any procedures which addressed threat and hazard\ninteractions.\nTherefore, LGS’s written integrity management procedures, required by § 192.12(d)(4), were\ninadequate. LGS must revise its procedures to address threat and hazard interactions.\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.\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 Lodi Gas Storage, LLC 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 1-2021-067-NOA and, for\neach document you submit, please provide a copy in electronic format whenever possible. Smaller\n3 API RP 1171, Section 8.3.2 Data Sources\nThe operator shall use available information such as performance data collected through the field history, operations\nand maintenance (O&M) activities, geotechnical data such as well logs, engineering data, and completion reports to\ndetermine susceptibility to threat and hazard-related events and to assess threat and hazard interaction.\n12021067NOA_Notice of Amendment_11192021_(21-215235)_text Page 3 of 4\n\n\n\nCPF 1-2021-067-NOA\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\n12021067NOA_Notice of Amendment_11192021_(21-215235)_text Page 4 of 4\n\n12021067NOA_Closure Letter_02222022_(21-215235)_text.pdf\n\nVIA ELECTRONIC MAIL TO: Mathieu.Fournier@rockpointgs.com\nFebruary 22, 2022\nMr. Mathieu Fournier\nManager, Reservoir Engineering\nEngineering & Operations\nLodi Gas Storage, LLC\n400 - 607 8th Ave SW\nCalgary, AB T2P 0A7\nCPF 1-2021-067-NOA\nDear Mr. Fournier:\nFrom September 15 to September 18, 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.), conducted an on-site\npipeline safety inspection of Lodi Gas Storage, LLC’s (LGS) procedures near Acampo and Birds\nLanding in California. As a result of the inspection, LGS was issued a Notice of Amendment on\nNovember 19, 2021, which proposed amendment of your procedures.\nLGS submitted its amended procedures on December 18, 2021. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\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","truncated":false,"body_characters":11132}