{"operation":"document","citation":"CPF 12022069WL","title":"PUBLIC SERVICE CO OF COLORADO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-08-18","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022069wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022069wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12022069wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12022069WL","body":"Warning Letter involving PUBLIC SERVICE CO OF COLORADO. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2022-08-18 and is reported as closed as of 2022-08-18. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12022069WL_Operator Response to Notice_09162022_(21-200486).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022069WL/12022069WL_Operator%20Response%20to%20Notice_09162022_(21-200486).pdf\n\n12022069WL_Warning Letter_08182022_(21-200486).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022069WL/12022069WL_Warning%20Letter_08182022_(21-200486).pdf\n\n12022069WL_Warning Letter_08182022_(21-200486)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12022069WL/12022069WL_Warning%20Letter_08182022_(21-200486)_text.pdf\n\n12022069WL_Warning Letter_08182022_(21-200486)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nAugust 18, 2022\nMr. Luke Litteken\nSenior Vice President, Gas\nPublic Service Co of Colorado\n1123 W. 3rd Avenue\nDenver, Colorado 80223\nCPF 1-2022-069-WL\nDear Mr. Litteken:\nFrom May 3, 2021 through May 7, 2021 representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Public Service Co of Colorado’s (PSCC) Roundup Underground Natural Gas Storage\nFacility (Roundup) in Morgan County, Colorado.\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.\n\n\n\nPSCC failed to meet the provisions of API RP 1171, Section 8. Specifically, PSCC failed to\nevaluate the potential threats and hazards of Hydrogen Sulfide (H2S) gas in the Roundup storage\nfield in accordance with API RP 1171, Section 8.4.2 (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 determined that PSCC did not include the threat of Hydrogen Sulfide\ngas (H2S) in their risk model, which was a known threat.\nTherefore, PSCC failed to meet the provisions of Section 8.4.2.\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.\nPSCC failed to meet the provisions of API RP 1171, Section 9. Specifically, PSCC failed to utilize\nits risk assessments to develop the frequency of their integrity demonstration, verification and\nmonitoring tasks in accordance with API RP 1171, Section 9.2.2.\nSection 9.2.2 Risk-based Evaluation states:\nRisk assessments shall be used as a basis for developing the integrity demonstration,\nverification, and monitoring tasks and evaluating their frequency requirements (see Section\n8). Following the risk assessment, the operator should develop and maintain a program and\nprocedures to address storage reservoir and well integrity monitoring practices for each\nstorage facility, multiple facilities, and/or system-wide. The operator’s approach should\naddress the need for reevaluation of risk-based conclusions and the monitoring task\nfrequency.\nDuring the inspection, PSCC was not able to provide records that demonstrate that they had used\ntheir risk assessments to develop the frequency of their various integrity requirements.\nTherefore, PSCC failed to meet the provisions of Section 9.2.2.\n3. § 192.12 Underground natural gas storage facilities.\n\n\n\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.\nPSCC failed to meet the provisions of API RP 1171, Section 11.11.1 Specifically, PSCC failed to\nfollow a Management of Change (MOC) process in the update of their SIMP plan of January 2021\nin accordance with API RP 1171, Section 11.11.1.\nSection 11.11.1 General states:\nRevision of procedures and processes is an acceptable practice, but the operator shall require\nchanges to be accomplished in a controlled manner. The program documentation,\nframework, and procedures shall be revised before the change can be implemented. Not all\nchanges need be approved through a formal MOC process. Some changes are expected and\nmay not be subject to a formal change control process. The operator should define the types\nof changes determined to be significant and requiring a MOC.\nDuring the inspection, PSCC was not able to provide records that demonstrated they had used their\nMOC process in updating their SIMP plan in January 2021.\nTherefore, PSCC failed to meet the provisions of Section 11.11.1.\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,\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\nPublic Service Co of Colorado being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2022-069-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":8589}