CENTURY ALUMINUM — Warning Letter

12022066WL_Warning Letter_08032022_(21-200585)_text.pdf, page 1Official PDFWARNING LETTER VIA ELECTRONIC MAIL TO: jim.f.martin@orbitgas.com August 3, 2022 Mr. Jim Martin President Century Aluminum 1401 Spring Bank Drive, Suite 16 Owensboro, Kentucky 42303 CPF 1-2022-066-WL Dear Mr. Martin: From November 15 to November 19, 2021, and February 15 to February 16, 2022, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected Century Aluminum’s East Slaughters Underground Natural Gas Storage in Hopkins, Kentucky. As a result of the inspection, it is alleged that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable violation is: 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. Century Aluminum failed to meet the provisions of § 192.12(c) by January 18, 2018. Specifically, Century Aluminum’s operations and maintenance manual and its emergency response plan (ERP) within its Storage Integrity Management Plan were not created until January of 2022, past the January 18, 2018, deadline required by § 192.12(b)(2).#

12022066WL_Warning Letter_08032022_(21-200585)_text.pdf, page 2Section 192.12(c) requires in part that “[e]ach operator of a UNGSF must prepare and follow for each facility one or more manuals of written procedures for conducting operations, maintenance, and emergency preparedness and response activities under paragraphs (a) and (b) of this section.” During the inspection, Century Aluminum’s O&M Manual and ERP were reviewed. PHMSA determined that these manuals had not been reviewed due to the fact that they were not created until after January 2022. Therefore, Century Aluminum failed to meet the provisions of § 192.12(c) by January 18, 2018, as required by § 192.12(b)(2). Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related series of violations. For violation occurring on or after May 3, 2021, and before March 21, 2022, the maximum penalty may not 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 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 item identified in this letter. Failure to do so will result in Century Aluminum 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 1-2022-066-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#