{"operation":"document","citation":"CPF 12021071NOA","title":"DELTA NATURAL GAS CO INC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-12-29","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021071noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021071noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12021071noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12021071NOA","body":"Notice of Amendment involving DELTA NATURAL GAS CO INC. PHMSA's enforcement data identifies the cited regulation as 192.12(c). The case was opened on 2021-12-29 and is reported as closed as of 2022-02-08. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12021071NOA_Closure Letter_02082022_(20-173603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021071NOA/12021071NOA_Closure%20Letter_02082022_(20-173603).pdf\n\n12021071NOA_Closure Letter_02082022_(20-173603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021071NOA/12021071NOA_Closure%20Letter_02082022_(20-173603)_text.pdf\n\n12021071NOA_Notice of Amendment_12292021_(20-173603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021071NOA/12021071NOA_Notice%20of%20Amendment_12292021_(20-173603).pdf\n\n12021071NOA_Notice of Amendment_12292021_(20-173603)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021071NOA/12021071NOA_Notice%20of%20Amendment_12292021_(20-173603)_text.pdf\n\n12021071NOA_Operator Response to Notice_01182022_(20-173603).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12021071NOA/12021071NOA_Operator%20Response%20to%20Notice_01182022_(20-173603).pdf\n\n12021071NOA_Closure Letter_02082022_(20-173603)_text.pdf\n\nOVERNIGHT EXPRESS DELIVERY\nFebruary 8, 2022\nMr. John Brown\nPresident\nDelta Natural Gas Company Inc.\n3617 Lexington Road\nWinchester, Kentucky 40391\nCPF 1-2021-071-NOA\nDear Mr. Brown:\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, inspected\nDelta Natural Gas Company, Inc’s (DNG) procedures for its Canada Mountain Storage Field,\nlocated in Bell County, Kentucky. As a result of the inspection, DNG was issued a Notice of\nAmendment on December 29, 2021, which proposed amendment of your procedures.\nDNG submitted its response to the Notice of Amendment on January 18, 2022. My staff reviewed\nthe response, and it appears that the inadequacies outlined in this Notice of Amendment have been\naddressed.\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\n12021071NOA_Notice of Amendment_12292021_(20-173603)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: gjennings@deltagas.com\nDecember 29, 2021\nMr. Glenn Jennings\nPresident\nDelta Natural Gas Company Inc.\n3617 Lexington Road\nWinchester, Kentucky 40391\nCPF 1-2021-071-NOA\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) procedures for its Canada Mountain Storage\nField, located in Bell County, Kentucky.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacy found within\nDNG’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\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\n\n\n\nCPF 1-2021-071-NOA\nDNG’s written procedures for conducting operations and maintenance activities were inadequate\nto ensure safe operation of a pipeline facility. Specifically, DNG’s written procedures did not\ndescribe the process for evaluating each annular gas occurrence that exceeds operator- or\nregulatory-defined threshold levels in accordance with API RP 1171, Section 9.3.2 (Section\n9.3.2).1\nDuring the inspection, PHMSA requested DNG’s procedures for evaluating annular gas\noccurrences that exceed operator- or regulatory-defined thresholds. DNG’s Storage Field Integrity\nManagement Plan (SFIMP) was presented. The SFIMP discussed monitoring, recording, and\nventing excessive pressure buildup in the annulus of wells. However, the SFIMP did not describe\nthe process for evaluating each annular gas occurrence exceeding operator- or regulatory-defined\nthreshold levels.\nTherefore, DNG’s written procedures, required by § 192.12(c), were inadequate. DNG must\nrevise its procedures to address the evaluation process for wells exceeding annular threshold limits.\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.\n1 API RP 1171, Section 9.3.2, Well Integrity Monitoring\n[T]he operator shall monitor for presence of annular gas by measuring and recording annular pressure and/or annular\ngas flow. The operator shall evaluate each annular gas occurrence that exceeds operator- or regulatory-defined\nthreshold levels determined from well integrity evaluation and from risk assessment.…\n12021071NOA_Notice of Amendment_12292021_(20-173603)_text Page 2 of 3\n\n\n\nCPF 1-2021-071-NOA\nIt is requested (not mandated) that Delta Natural Gas Company, Inc. (DNG) maintain\ndocumentation of the safety improvement costs associated with fulfilling this Notice of\nAmendment (preparation/revision of plans, procedures) and submit the total to Robert Burrough,\nDirector, Eastern Region, Pipeline and Hazardous Materials Safety Administration, 840 Bear\nTavern Road, Suite 300, West Trenton, NJ 08628. In correspondence concerning this matter,\nplease refer to CPF 1-2021-071-NOA and, for each document you submit, please provide a copy\nin electronic format whenever possible. Smaller files may be emailed to robert.burrough@dot.gov.\nLarger files should be sent on USB flash drive accompanied by the original paper copy to the\nEastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n12021071NOA_Notice of Amendment_12292021_(20-173603)_text Page 3 of 3","truncated":false,"body_characters":8208}