{"operation":"document","citation":"CPF 12022025WL","title":"NATIONAL FUEL GAS SUPPLY CORP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-02-24","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022025wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022025wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022025wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022025WL","body":"Warning Letter involving NATIONAL FUEL GAS SUPPLY CORP. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2022-02-24 and is reported as closed as of 2022-02-24. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022025WL_Operator Response to Notice_05132022_(21-200484).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022025WL/12022025WL_Operator%20Response%20to%20Notice_05132022_(21-200484).pdf\n\n12022025WL_Warning Letter_02242022_(21-200484).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022025WL/12022025WL_Warning%20Letter_02242022_(21-200484).pdf\n\n12022025WL_Warning Letter_02242022_(21-200484)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022025WL/12022025WL_Warning%20Letter_02242022_(21-200484)_text.pdf\n\n12022025WL_Warning Letter_02242022_(21-200484)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nFebruary 24, 2022\nMr. Ramon Harris\nVice President\nNational Fuel Gas Supply Corporation\n6363 Main Street\nWilliamsville, New York 14221\nCPF 1-2022-025-WL\nDear Mr. Harris:\nFrom August 23 to 27, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nNational Fuel Gas Supply Corporation’s (NFG) Perrysburg and Derby underground natural gas\nstorage facilities in Perrysburg, New York.\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.\nNFG failed to meet the provisions of API RP 1171, section 9. Specifically, NFG failed to\n\n\n\nCPF 1-2022-025-WL\ndemonstrate that risk assessments were used to determine frequency requirements for integrity\ndemonstration, verification, and monitoring tasks in accordance with API RP 1171, Section 9.2.2\n(Section 9.2.2).\nSection 9.2.2 states in part that “Risk assessments shall be used as a basis for developing the\nintegrity demonstration, verification, and monitoring tasks and evaluating their frequency\nrequirements.”\nDuring the inspection, it was noted that 21 Perrysburg storage wells have conductor casing and\nproduction casing with no intermediate casing. NFG did not have cement bond log records of these\nwells for integrity demonstration. No wells were shown to be selected for future casing inspections\nand/or cement bond log inspections.\nTherefore, NFG failed to meet the provisions of Section 9.2.2.\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.\nNFG failed to meet the provisions of API RP 1171, Section 11. Specifically, NFG failed to\ndemonstrate adequate site security was provided at each well location in accordance with API RP\n1171, Section 11.9.1 (Section 11.9.1).\nSection 11.9.1 states in part that “The operator shall develop programs incorporating safeguards\nto the environment, site security, and safety and health into storage design, construction, and\noperations.”\nDuring the field inspection, Derby Well 1331 was observed. It was located within an active\nagriculture field. There were no barriers to protect the well even though there were many\nindications that the well had been impacted by farm equipment.\nTherefore, NFG failed to meet the provisions of Section 11.9.1.\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\n12022025WL_Warning Letter_02242022_(21-200484)_text Page 2 of 3\n\n\n\nCPF 1-2022-025-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\nNational Fuel Gas Supply Corporation 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 1-2022-025-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\n12022025WL_Warning Letter_02242022_(21-200484)_text Page 3 of 3","truncated":false,"body_characters":6762}