{"operation":"document","citation":"CPF 12022006NOA","title":"WSP USA INC. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-01-13","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022006noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022006noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022006noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022006NOA","body":"Notice of Amendment involving WSP USA INC.. PHMSA's enforcement data identifies the cited regulation as 192.12(d)(4). The case was opened on 2022-01-13 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\n12022006NOA_Closure Letter_02222022_(21-200037).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022006NOA/12022006NOA_Closure%20Letter_02222022_(21-200037).pdf\n\n12022006NOA_Closure Letter_02222022_(21-200037)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022006NOA/12022006NOA_Closure%20Letter_02222022_(21-200037)_text.pdf\n\n12022006NOA_Notice of Amendment_01132022_(21-200037).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022006NOA/12022006NOA_Notice%20of%20Amendment_01132022_(21-200037).pdf\n\n12022006NOA_Notice of Amendment_01132022_(21-200037)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022006NOA/12022006NOA_Notice%20of%20Amendment_01132022_(21-200037)_text.pdf\n\n12022006NOA_Operator Response to Notice_01312022_(21-200037).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022006NOA/12022006NOA_Operator%20Response%20to%20Notice_01312022_(21-200037).pdf\n\n12022006NOA_Closure Letter_02222022_(21-200037)_text.pdf\n\nVIA ELECTRONIC MAIL TO: roger.blair@wsp.com\nFebruary 22, 2022\nMr. Roger Blair\nPresident, US Energy\nWSP USA Inc.\n16285 Park Ten Place, 4th Floor\nHouston, Texas 77005\nCPF 1-2022-006-NOA\nDear Mr. Blair:\nFrom May 11, 2021 through May 14, 2021, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of WSP USA, Inc.’s (WSP) procedures, including\nits integrity management plan, for its underground natural gas storage facility in Jefferson County,\nTexas. As a result of the inspection, WSP was issued a Notice of Amendment on January 13, 2022,\nwhich proposed amendment of your integrity management plan.\nWSP submitted its amended integrity management plan on January 31, 2022. My staff reviewed\nthe amended integrity management plan, and your commitment to further revise the plan, and it\nappears that the inadequacies outlined in this Notice of Amendment have been corrected.\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\n12022006NOA_Notice of Amendment_01132022_(21-200037)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nJanuary 13, 2022\nMr. Roger Blair\nPresident, US Energy\nWSP USA Inc.\n16285 Park Ten Place, 4th Floor\nHouston, Texas 77005\nCPF 1-2022-006-NOA\nDear Mr. Blair:\nFrom May 11, 2021 through May 14, 2021, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nWSP USA Inc.’s (WSP) procedures for its Spindletop Underground Storage Facility in Jefferson\nCounty, Texas.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within WSP’s\nprocedures, as described below:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program—\n(1) …\n(4) Integrity management procedures and recordkeeping. Each UNGSF\noperator must establish and follow written procedures to carry out its\nintegrity management program under API RP 1171 (incorporated by\nreference, see § 192.7), section 8 (\"Risk Management for Gas Storage\nOperations\"), and this paragraph (d). The operator must also maintain,\nfor the useful life of the UNGSF, records that demonstrate compliance\nwith the requirements of this paragraph (d). This includes records\ndeveloped and used in support of any identification, calculation,\namendment, modification, justification, deviation, and determination\nmade, and any action taken to implement and evaluate any integrity\nmanagement program element.\n\n\n\nCPF 1-2022-006-NOA\nWSP’s written procedures for carrying out its integrity management program were inadequate to\nensure safe operation of a pipeline facility. Specifically, WSP’s procedures failed to include sufficient\ndetail to ensure that the results from earlier risk assessments and updated risk analyses were used to\ndetermine appropriate reassessment intervals in accordance with § 192.12(d)(3).1\nUnder § 192.12(d)(3), WSP is required to determine appropriate intervals for risk assessments for each\ncavern and well using the results from earlier assessments and updated risk analyses. In addition, API\nRP 1171, subsection 8.7.1 requires operators to assess the effectiveness of risk monitoring and risk\nmanagement programs and maintain a continual review and improvement cycle.2\nDuring the inspection, PHMSA reviewed WSP’s written integrity management plan, WSP\nUnderground Storage Integrity Management Plan Spindletop Salt Cavern (2021) (IM Plan). Based\non this review, PHMSA identified that results from earlier assessments and updated risk analyses were\nnot factored into WSP’s decision process for determining intervals for reassessment. WSP’s process\nfor determining the appropriate interval for risk assessments was limited to a baseline risk model\nperformed for WSP by DNV GL Oil & Gas Services (DNV).3 DNV used a probability of failure\ncalculation to determine proof test intervals for WSP’s system. In calculating the probability of failure,\nDNV used outside data sources rather than WSP cavern data such as results from earlier integrity\ninspections, monitoring activities, or risk assessments.\nWSP’s integrity management plan failed to include procedures for establishing the appropriate interval\nfor risk assessments or procedures that would ensure that reassessment intervals would be established\nusing the results from earlier assessments and updated risk analyses.\nTherefore, WSP’s integrity management procedures required by § 192.12(d)(4) were inadequate. WSP\nmust revise its IM Plan to address the deficiency noted above.\n1 § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program\n(1) …\n(3) Integrity management re-assessment intervals. The operator must determine the appropriate interval for risk\nassessments under API RP 1171 (incorporated by reference, see §192.7), subsection 8.7.1, and this paragraph (d) for\neach reservoir, cavern, and well, using the results from earlier assessments and updated risk analyses. The re-\nassessment interval for each reservoir, cavern, and well must not exceed seven years from the date of the baseline\nassessment for each reservoir, cavern, and well.\n2 API RP 1171, Section 8\nSubsection 8.7.1. General. The operator shall assess the effectiveness of risk monitoring and risk management\nprograms and maintain a continual review and improvement cycle in risk management activities to provide\nfunctional integrity of the storage operation. The interval of review and reassessment should be short enough to\nidentify operational and monitoring trends and measure the effectiveness of P&M measures, but long enough that\nthe data and information that can be brought into the analysis are meaningful.\nSubsection 8.7.2. Frequency. The operator shall define a review frequency for the risk assessment and perform a\nreview and update of the risk assessment in accordance with the defined frequency.\n3 Underground Storage Integrity Management Plan, Appendix C & Appendix D (on file with PHMSA).\n12022006NOA_Notice of Amendment_01132022_(21-200037)_text Page 2 of 4\n\n\n\nCPF 1-2022-006-NOA\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 UNGSF\noperator must establish and follow written procedures to carry out its\nintegrity management program under API RP 1171 (incorporated by\nreference, see § 192.7), section 8 (\"Risk Management for Gas Storage\nOperations\"), and this paragraph (d). The operator must also maintain,\nfor the useful life of the UNGSF, records that demonstrate compliance\nwith the requirements of this paragraph (d). This includes records\ndeveloped and used in support of any identification, calculation,\namendment, modification, justification, deviation, and determination\nmade, and any action taken to implement and evaluate any integrity\nmanagement program element.\nWSP’s written procedures for carrying out its integrity management program were inadequate to\nensure safe operation of a pipeline facility. Specifically, WSP’s procedures failed to address three of\nthe six elements of an integrity management program required by § 192.12(d)(1).4\nDuring the inspection, PHMSA reviewed WSP’s written integrity management plan, WSP\nUnderground Storage Integrity Management Plan Spindletop Salt Cavern (2021) (IM Plan). Based\nupon this review, PHMSA determined that WSP failed to include three of the integrity management\nprogram elements required by § 192.12(d)(1). First, the IM Plan did not provide a framework that\ndescribed the roles and responsibilities for WSP personnel assigned to develop and implement the\nprocedures required by § 192.12(d), as required by § 192.12(d)(1)(iii). Additionally, the IM Plan’s\ntraining procedure did not address trainings on integrity management procedures for gas storage\noperations, as required by § 192.12(d)(1)(iv). Lastly, the IM Plan did not include a plan for continual\nimprovement of the risk management program based on incorporating information gained from\nexperience, as required by § 192.12(d)(1)(vi).\n4 § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program\n(1) Integrity management program elements. The integrity management program for each UNGSF under this\nparagraph (d) must consist, at a minimum, of a framework developed under API RP 1171 (incorporated by\nreference, see §192.7), section 8 (“Risk Management for Gas Storage Operations”), and that also describes how\nrelevant decisions will be made and by whom. An operator must make continual improvements to the program and\nits execution. The integrity management program must include the following elements:\n(i) A plan for developing and implementing each program element to meet the requirements of this section;\n(ii) An outline of the procedures to be developed;\n(iii) The roles and responsibilities of UNGSF staff assigned to develop and implement the procedures required by\nthis paragraph (d);\n(iv) A plan for how staff will be trained in awareness and application of the procedures required by this paragraph\n(d);\n(v) Timelines for implementing each program element, including the risk analysis and baseline risk assessments; and\n(vi) A plan for how to incorporate information gained from experience into the integrity management program on a\ncontinuous basis.\n12022006NOA_Notice of Amendment_01132022_(21-200037)_text Page 3 of 4\n\n\n\nCPF 1-2022-006-NOA\nTherefore, WSP’s integrity management plan required by § 192.12(d)(4) lacked three of the six\nelements specified by § 192.12(d)(1). WSP must revise its IM Plan to address these elements.\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 part\nof 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 submit\nin response to this enforcement action is subject to being made publicly available. If you believe that\nany portion of your responsive material qualifies for confidential treatment under 5 U.S.C. 552(b),\nalong with the complete original document you must provide a second copy of the document with the\nportions you believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised procedures,\nor a request for a hearing under §190.211. If you do not respond within 30 days of receipt of this\nNotice, this constitutes a waiver of your right to contest the allegations in this Notice and authorizes\nthe Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue an Order Directing Amendment. If your plans or procedures are found\ninadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct\nthe inadequacies (49 C.F.R. § 190.206). If you are not contesting this Notice, we propose that you\nsubmit your amended procedures to my office within 30 days of receipt of this Notice. This period\nmay be extended by written request for good cause. Once the inadequacies identified herein have been\naddressed in your amended procedures, this enforcement action will be closed.\nIt is requested (not mandated) that WSP USA Inc. maintain documentation of the safety improvement\ncosts associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures)\nand submit the total to Robert Burrough, Director, Eastern Region, Pipeline and Hazardous Materials\nSafety Administration, 840 Bear Tavern Road, Suite 300, West Trenton, NJ 08628. In correspondence\nconcerning this matter, please refer to CPF 1-2022-006-NOA and, for each document you submit,\nplease provide a copy in electronic format whenever possible. Smaller files may be emailed to\nrobert.burrough@dot.gov. Larger files should be sent on USB flash drive accompanied by the original\npaper 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\n12022006NOA_Notice of Amendment_01132022_(21-200037)_text Page 4 of 4","truncated":false,"body_characters":13931}