# NATIONAL FUEL GAS SUPPLY CORP — Warning Letter

- **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:** Not available
- **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.

Official case documents:

12022025WL_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

12022025WL_Warning Letter_02242022_(21-200484).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022025WL/12022025WL_Warning%20Letter_02242022_(21-200484).pdf

12022025WL_Warning Letter_02242022_(21-200484)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022025WL/12022025WL_Warning%20Letter_02242022_(21-200484)_text.pdf

12022025WL_Warning Letter_02242022_(21-200484)_text.pdf

WARNING LETTER
OVERNIGHT EXPRESS DELIVERY
February 24, 2022
Mr. Ramon Harris
Vice President
National Fuel Gas Supply Corporation
6363 Main Street
Williamsville, New York 14221
CPF 1-2022-025-WL
Dear Mr. Harris:
From August 23 to 27, 2021, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected
National Fuel Gas Supply Corporation’s (NFG) Perrysburg and Derby underground natural gas
storage facilities in Perrysburg, New York.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 192.12 Underground natural gas storage facilities.
(a) . . .
(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.
(1) . . .
(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an
aquifer reservoir for natural gas storage and was constructed on or
before July 18, 2017, must meet the provisions of API RP 1171
(incorporated by reference, see §192.7), sections 8, 9, 10, and 11, and
paragraph (c) of this section, by January 18, 2018, and must meet all
provisions of paragraph (d) of this section by March 13, 2021.
NFG failed to meet the provisions of API RP 1171, section 9. Specifically, NFG failed to



CPF 1-2022-025-WL
demonstrate that risk assessments were used to determine frequency requirements for integrity
demonstration, verification, and monitoring tasks in accordance with API RP 1171, Section 9.2.2
(Section 9.2.2).
Section 9.2.2 states in part that “Risk assessments shall be used as a basis for developing the
integrity demonstration, verification, and monitoring tasks and evaluating their frequency
requirements.”
During the inspection, it was noted that 21 Perrysburg storage wells have conductor casing and
production casing with no intermediate casing. NFG did not have cement bond log records of these
wells for integrity demonstration. No wells were shown to be selected for future casing inspections
and/or cement bond log inspections.
Therefore, NFG failed to meet the provisions of Section 9.2.2.
2. § 192.12 Underground natural gas storage facilities.
(a) . . .
(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.
(1) . . .
(2) Each UNGSF that uses a depleted hydrocarbon reservoir or an
aquifer reservoir for natural gas storage and was constructed on or
before July 18, 2017, must meet the provisions of API RP 1171
(incorporated by reference, see §192.7), sections 8, 9, 10, and 11, and
paragraph (c) of this section, by January 18, 2018, and must meet all
provisions of paragraph (d) of this section by March 13, 2021.
NFG failed to meet the provisions of API RP 1171, Section 11. Specifically, NFG failed to
demonstrate adequate site security was provided at each well location in accordance with API RP
1171, Section 11.9.1 (Section 11.9.1).
Section 11.9.1 states in part that “The operator shall develop programs incorporating safeguards
to the environment, site security, and safety and health into storage design, construction, and
operations.”
During the field inspection, Derby Well 1331 was observed. It was located within an active
agriculture field. There were no barriers to protect the well even though there were many
indications that the well had been impacted by farm equipment.
Therefore, NFG failed to meet the provisions of Section 11.9.1.
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for a related
series of violations. For violation occurring on or after January 11, 2021 and before May 3, 2021,
the maximum penalty may not exceed $222,504 per violation per day the violation persists, up to
a maximum of $2,225,034 for a related series of violations. For violation occurring on or after
July 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per
12022025WL_Warning Letter_02242022_(21-200484)_text Page 2 of 3



CPF 1-2022-025-WL
violation per day the violation persists, up to a maximum of $2,186,465 for a related series of
violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the
maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to
exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November
27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum
penalty not to exceed $2,090,022.
We have reviewed the circumstances and supporting documents involved in this case and have
decided not to conduct additional enforcement action or penalty assessment proceedings at this
time. We advise you to correct the items identified in this letter. Failure to do so will result in
National Fuel Gas Supply Corporation being subject to additional enforcement action.
No reply to this letter is required. If you choose to reply, in your correspondence please refer to
CPF 1-2022-025-WL. Be advised that all material you submit in response to this enforcement
action is subject to being made publicly available. If you believe that any portion of your
responsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the
complete original document you must provide a second copy of the document with the portions
you believe qualify for confidential treatment redacted and an explanation of why you believe the
redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).
Sincerely,
Robert Burrough
Director, Eastern Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
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