{"operation":"document","citation":"CPF 12022067WL","title":"AMEREN ILLINOIS COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-08-03","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022067wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022067wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022067wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022067WL","body":"Warning Letter involving AMEREN ILLINOIS COMPANY. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2022-08-03 and is reported as closed as of 2022-08-03. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022067WL_Warning Letter_08032022_(21-215879).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022067WL/12022067WL_Warning%20Letter_08032022_(21-215879).pdf\n\n12022067WL_Warning Letter_08032022_(21-215879)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022067WL/12022067WL_Warning%20Letter_08032022_(21-215879)_text.pdf\n\n12022067WL_Warning Letter_08032022_(21-215879)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: dwakeman@ameren.com\nAugust 3, 2022\nMr. David Wakeman\nPresident and Chief Executive Officer\nAmeren Illinois Company\n10 Executive Drive\nCollinsville, Illinois 62234\nCPF 1-2022-067-WL\nDear Mr. Wakeman:\nFrom July 26, 2021 to July 28, 2021, the Illinois Department of Natural Resources, Office of Oil and\nGas Resource Management (IDNR) acting as a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nAmeren Illinois Company’s (Ameren Illinois) Hookdale storage field in Bond County, Illinois.\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.\nAmeren Illinois failed to meet the provisions of § 192.12(c) by January 18, 2018. Specifically,\nAmeren Illinois’ Gas Operating & Maintenance Plan, dated May 7, 2021, applicable to its\n\n\n\nunderground natural gas storage facilities (UNGSF), was not created until May of 2021, past the\nJanuary 18, 2018 deadline required by § 192.12(b)(2).\nSection 192.12(c) requires in part that “Each operator of a UNGSF must prepare and follow for\neach facility one or more manuals of written procedures for conducting operations, maintenance,\nand emergency preparedness and response activities under paragraphs (a) and (b) of this section.”\nDuring the inspection, Ameren Illinois’ Gas Operating & Maintenance Plan was reviewed.\nPHMSA determined that this manual was not implemented until after May 2021.\nTherefore, Ameren Illinois failed to prepare manuals of written procedures in accordance with\n§ 192.12(c) by January 18, 2018, as required by § 192.12(b)(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.\nAmeren Illinois failed to meet the provisions of API RP 1171, Section 8. Specifically, Ameren\nIllinois did not properly evaluate the potential threats and hazards impacting storage wells in\naccordance with API RP 1171, Section 8.4.2.\nSection 8.4.2 states in part:\nThe operator shall evaluate the potential threats and hazards impacting storage wells and\nreservoirs. The operator should refer to the list of common threats and hazards in Table 1\nand may supplement the list in Table 1 with other hazards or threats identified by site-\nspecific assessments.\nDuring the inspection, it was noted that records did not demonstrate potential threats and hazards\nimpacting the storage wells and reservoir were adequately evaluated. Specifically, third party well\ndrilling, seismicity, and inventory analysis were not a part of the quantitative risk model. While\nthese threats were considered to be very low probability and potentially equally weighted across\nthe entire facility, Ameren Illinois should still include all potential threats and hazards in\nconsideration that the risk from these threats could change over time.\nTherefore, Ameren Illinois failed to meet the provisions of Section 8.4.2.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for a related\nseries of violations. For violation occurring on or after May 3, 2021 and before March 21, 2022,\n\n\n\nthe maximum penalty may not exceed $225,134 per violation per day the violation persists, up to\na maximum of $2,251,334 for a related series of violations. For violation occurring on or after\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on\nor after November 2, 2015, and before November 27, 2018, the maximum penalty may not exceed\n$209,002 per violation per day, with a maximum penalty 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\nAmeren Illinois Company 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 1-2022-067-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","truncated":false,"body_characters":7207}