{"operation":"document","citation":"CPF 12021070WL","title":"DELTA NATURAL GAS CO INC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-12-10","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021070wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021070wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021070wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021070WL","body":"Warning Letter involving DELTA NATURAL GAS CO INC. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2021-12-10 and is reported as closed as of 2021-12-10. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021070WL_Warning Letter_12102021_(20-173603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021070WL/12021070WL_Warning%20Letter_12102021_(20-173603).pdf\n\n12021070WL_Warning Letter_12102021_(20-173603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021070WL/12021070WL_Warning%20Letter_12102021_(20-173603)_text.pdf\n\n12021070WL_Warning Letter_12102021_(20-173603)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nDecember 10, 2021\nMr. Glenn Jennings\nPresident\nDelta Natural Gas Company Inc.\n3617 Lexington Road\nWinchester, Kentucky 40391\nCPF 1-2021-070-WL\nDear Mr. Jennings:\nFrom March 22, 2021 to March 26, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Delta Natural Gas Company Inc.’s (DNG) records and well sites for its Canada Mountain\nStorage, located in Bell County, Kentucky.\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\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.\nDNG’s records were insufficient to demonstrate compliance with the provisions of API RP 1171,\nSection 9. Specifically, DNG records do not demonstrate that the operation of the master valve\nand wellhead pipeline isolation valve, for proper function and ability to isolate the well, is being\ntested at least annually in accordance with API RP 1171 Section 9.3.2\n\n\n\nCPF 1-2021-070-WL\nSection 9.3.2 states in part that “The operator shall test the operation of the master valve and\nwellhead pipeline isolation valve at least annually for proper function and ability to isolate the\nwell.”\nDuring the inspection, PHMSA reviewed DNG’s records of annual wellhead valve operation,\nwhich were documented on its “Facility and Well Inspection Form 670”. However, these records\nof well inspection did not specify which valves were operated; namely the master valve, isolation\nvalve, or any other valve on the wellhead.\nTherefore, DNG’s documentation was insufficient to demonstrate compliance with the provisions\nof Section 9.3.2.\n2. § 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.\nDNG failed to meet the provisions of API RP 1171, Section 10. DNG’s wellsite signage did not\ninclude all required signage elements specified by API RP 1171, Section 10.4.1 (Section 10.4.1).\nSection 10.4.1 states:\nPermanent weatherproof signage shall be installed at each site for identification purposes.\nSignage should contain the following information, at a minimum:\n- storage facility name, well name, and/or identification number,\n- operator name; and,\n- operator’s 24-hour emergency contact number.\nDuring the well site inspection, PHMSA observed DNG’s signage at various well sites. The well\nsite signage did not include the storage facility name, well name, and/or identification number. All\nsignage was located at the well head and could not be seen from a safe distance in the event of a\nblowout or fire.\nTherefore, DNG failed to meet the provisions of Section 10.4.1.\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\n12021070WL_Warning Letter_12102021_(20-173603)_text Page 2 of 3\n\n\n\nCPF 1-2021-070-WL\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\nDelta Natural Gas Company 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 1-2021-070-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\n12021070WL_Warning Letter_12102021_(20-173603)_text Page 3 of 3","truncated":false,"body_characters":6779}