CPF 12022080NOPSO
CPF 12022080NOPSO
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 1Official PDFMay 26, 2023 VIA ELECTRONIC MAIL TO: rcooper@equitransmidstream.com Robert Cooper Senior Vice President, Construction Services Equitrans Midstream Corporation 2200 Energy Drive Canonsburg, PA 15317 CPF No. 1-2022-080-NOPSO Dear Mr. Cooper: Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Equitrans Midstream Corporation, which was executed on May 25, 2023. Service of the Consent Order and Consent Agreement by electronic mail is deemed effective upon the date of transmission and acknowledgement of receipt, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosures: Consent Order and Consent Agreement cc: Mr. Robert Burrough, Director, Eastern Region, Office of Pipeline Safety, PHMSA Mr. Matthew Eggerding, Deputy General Counsel, Environmental and Regulatory Affairs, Equitrans Midstream Corporation, meggerding@equitransmidstream.com Ms. Brianne Kurdock, Outside Counsel for Equitrans Midstream Corporation, bkurdock@babstcalland.com CONFIRMATION OF RECEIPT REQUESTED#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Equitrans Midstream Corporation, ) CPF No. 1-2022-080-NOPSO ) Respondent. ) ____________________________________) CONSENT ORDER By letter dated December 29, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Proposed Safety Order (Notice) to Equitrans Midstream Corporation (Equitrans or Respondent). In accordance with 49 C.F.R. § 190.239, the Notice alleged that conditions exist on Respondent’s Rager Mountain Storage Facility, an interstate underground natural gas storage facility, that pose an integrity risk to public safety, property, or the environment. The Notice also proposed that Respondent take certain corrective measures to remedy the alleged conditions and ensure that the public, property, and the environment are protected from the potential risk. In response to the Notice, Respondent requested an informal consultation, whereupon the parties engaged in good-faith settlement discussions that have resulted in the Consent Agreement attached to this Consent Order that settles all of the allegations in the Notice. Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this Consent Order. The Respondent is hereby ordered to comply with the terms of the Consent Agreement, effective immediately. Pursuant to 49 U.S.C. § 60101, et seq., failure to comply with this Consent Order may result in the assessment of civil penalties as set forth in 49 U.S.C. § 60122 and 49 C.F.R. § 190.223, or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this Consent Order are effective upon service in accordance with 49 C.F.R. § 190.5. May 26, 2023 ______________________________ ______________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 3U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, DC 20590 ) In the Matter of ) ) Equitrans Midstream Corporation, ) CPF No. 1-2022-080-NOPSO ) Respondent. ) ) CONSENT AGREEMENT On December 29, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety, Eastern Region issued a Notice of Proposed Safety Order (Notice) to Equitrans Midstream Corporation (Equitrans or Respondent). The Notice was issued after a reportable incident occurred on November 6, 2022, at Respondent’s Rager Mountain Storage Facility, an interstate underground natural gas storage facility (the Facility). The Facility includes ten operating storage wells and two observation wells, and is connected via pipeline segments to interstate gas transmission pipelines. On November 6, 2022, Equitrans was notified that Well 2244 at the Facility was unintentionally venting natural gas to the atmosphere. Equitrans’s contractor, CUDD Pressure Control, Inc. (CUDD), responded to the scene. CUDD made multiple attempts to stop the venting by flooding the well with fresh and brine water. On November 17, 2022, CUDD temporarily stopped the venting by flooding the well. On November 18, 2022, gas began flowing from the annulus. CUDD re-initiated dynamic kill activities and attempted to set a bridge plug. On November 19, 2022, CUDD set a plug at a depth of 5,875 feet. On November 20, 2022, CUDD set another plug at 5,830 feet and had cement pumped into the well bore. As a result of a preliminary investigation and in accordance with 49 C.F.R. § 190.239, PHMSA issued the Notice, which alleged that integrity risks to public safety, property, and the environment existed at the Facility. PHMSA alleged that at the time the Notice was issued, the cause of the incident and the later venting of annulus gas from Wells 2248 and 2251 were unknown and it was not clear whether other leaks were present at the Facility without a root cause analysis. The Notice proposed that Respondent take certain corrective measures, including retaining a third-party expert to conduct a root cause analysis, to remedy the alleged conditions and ensure that the public, property, and the environment are protected from the alleged integrity risks. On January 16, 2023, Equitrans responded to the Notice requesting an informal consultation, whereupon PHMSA and Respondent (the Parties) engaged in good-faith settlement discussions. Informal consultations were held virtually between February 16, 2023, and March 30, 2023. As a#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 4result of the informal consultations, the Parties agreed that settlement of this proceeding will avoid further administrative proceedings or litigation of the Notice and that entry into this Consent Agreement (Agreement) is the most appropriate means of resolving the issues raised in the Notice. Therefore, without adjudication of any issue of fact or law, and upon consent and agreement of the Parties, PHMSA and Equitrans agree to the terms and conditions set forth in this Agreement. I. General Provisions 1. Respondent acknowledges that as the operator of the Facility, an interstate underground natural gas storage facility, Respondent is subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder. For purposes of this Agreement, Respondent acknowledges that it received proper notice of PHMSA's action in this proceeding and that the Notice states claims upon which relief may be granted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders issued thereunder. 2. Respondent agrees, for the purposes of this Agreement, to address the alleged integrity risks identified in the Notice by completing the actions specified in Section II of this Agreement (Corrective Measures) and to abide by the terms of this Agreement. This Agreement does not constitute a finding of violation of any Federal law or regulation and may not be used in any civil or administrative proceeding of any kind as evidence or proof of any fact, fault, or liability, or as evidence of the violation of any law, rule, regulations, or requirement, except in a proceeding to enforce the provisions in the Agreement. 3. After Respondent returns this signed Agreement to PHMSA, an agency representative will present it to the Associate Administrator for Pipeline Safety recommending that the Associate Administrator adopt the terms of this Agreement by issuing an administrative order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement constitute an offer of settlement until accepted by the Associate Administrator. Once accepted, the Associate Administrator will issue a Consent Order incorporating the terms of the Agreement. 4. Respondent consents to the issuance of a Consent Order that is consistent with this Agreement, and hereby waives any further procedural requirements with respect to its issuance. Respondent waives all rights to contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including all rights to administrative or judicial hearings or appeals in this case, except as set forth herein. 5. This Agreement shall apply to and be binding upon PHMSA, and upon Respondent, its officers, directors, and employees, and its successors, assigns, or other entities or persons otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans and schedules to all of Respondent’s officers, employees, and agents whose duties might reasonably include compliance with this Agreement. 6. For all transfers of ownership or operating responsibility of the Facility, Respondent will provide a copy of this Agreement to the prospective transferee at least 30 days prior to such transfer and provide written notice of the transfer within 30 days after the transfer to the PHMSA Eastern Region Director.#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 57. This Agreement constitutes the final, complete and exclusive agreement and understanding between the Parties with respect to the settlement embodied in this Agreement. The Parties acknowledge that there are no representations, agreements or understandings relating to settlement other than those expressly contained in this Agreement, except that the terms of this Agreement may be construed by reference to the Notice. 8. Nothing in this Agreement affects or relieves Respondent of its responsibility to comply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued thereunder. Nothing in this Agreement alters PHMSA’s right of access, entry, inspection, and information gathering or PHMSA's authority to bring enforcement actions against Respondent, pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any other provision of Federal or State law. 9. This Agreement does not waive or modify any Federal, State, or local laws or regulations that are applicable to Respondent's underground natural gas storage facilities. This Agreement is not a permit, or a modification of any permit, under any Federal, State, or local laws or regulations. Respondent remains responsible for achieving and maintaining compliance with all applicable Federal, State, and local laws, regulations and permits. 10. This Agreement does not create rights in, or grant any cause of action to, any third party not party to this Agreement. The U.S. Department of Transportation is not liable for any injuries or damages to persons or property arising from acts or omissions of Respondent or its officers, employees, or agents carrying out the work required by this Agreement. Equitrans agrees to hold harmless the U.S. Department of Transportation, its officers, employees, agents, and representatives from any and all causes of action arising from any acts or omissions of Respondent or its contractors in carrying out any work required by this Agreement. 11. Upon issuance of the Consent Order, the Parties agree to the following terms. II. Corrective Measures 12. Definitions. A. The “Director” means the Director, Eastern Region, Office of Pipeline Safety (OPS), PHMSA. “Effective Date” means the date the Consent Order was issued. The “Facility” means Equitrans’s Rager Mountain Storage Facility. D. The “Incident” means the event reported in NRC Report #s 1351880 and 1352149 pursuant to 49 C.F.R. § 191.5, as well as the unexpected presence of annulus gas from Wells 2248 and 2251, or any other well at the Facility between November 6, 2022, and the Effective Date. B. C.#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 613. Root Cause Failure Analysis. Within 90 days of the Effective Date, Respondent must complete a root cause failure analysis (RCFA) examining the cause of the Incident. The RCFA must also recommend corrective measures. Respondent must submit the RCFA to the Director. PHMSA has approved Equitrans’s selection of Blade Energy Partners as the third-party conducting the RCFA on behalf of Equitrans. A. The RCFA must document the decision-making process and all factors contributing to the failures. B. The RCFA must include an analysis of the recent downhole inspections. C. The RCFA must analyze and document whether the findings and any lessons learned are applicable to other locations within the Facility. 14. Remedial Work Plan. Within 60 days after submission of the RCFA, Equitrans must develop and submit to the Director for approval a written Remedial Work Plan (RWP) that includes corrective measures. The RWP can be submitted contemporaneous with the RCFA. The submitted RWP will be based on the relevant information available at that time. Equitrans will update the RWP with the information required below, as it becomes available, and will periodically resubmit the RWP to the Director until all required elements are complete. The Director may approve the RWP elements incrementally. Once approved, the RWP (including elements approved incrementally) shall become incorporated into this Agreement, including any revisions to the RWP. The RWP must include: A. A plan for completing inspections of Wells 2244, 2251, and 2248. B. A plan to inspect all other wells at the Facility for similar conditions and to address any additional findings and associated repairs. C. A plan to address the final disposition of the temporary plugs in Wells 2244, 2251, and 2248. i. The plan must consider the cause of the Incident, and describe whether Equitrans will plug and abandon or reactivate Well 2244 for future use. ii. The plan must consider the cause of annulus gas at Well 2251 and describe whether Equitrans will plug and abandon or reactivate Well 2251 for future use. iii. The plan must consider the cause of annulus gas at Well 2248 and describe whether Equitrans will plug and abandon or reactivate Well 2248 for future use. iv. The plan must include a list of all currently installed plugs at the Facility and their locations and Equitrans’s plan for their disposition.#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 7D. A plan to complete repairs and/or other corrective measures that may be needed to address the alleged integrity risks listed in paragraph 3 on page 1 of this Agreement. This plan must also include provisions for continuing long-term and periodic testing and integrity verification measures to ensure the ongoing safe operation of the Facility after injection resumes. E. Documentation of continuous, real time monitoring of annulus pressures at the Facility (when the valves are closed). F. A proposed schedule for completion of the actions required by paragraphs (A), (B), (C), and (D) of this Item. G. The results of all inspections described in Paragraphs 14(A) and (B) must be provided to the Director within 30 days of the inspection or the Effective Date, whichever is later. 15. Review of Records and Procedures. Equitrans must: A. Within 30 days of the Effective Date, conduct a review of the construction, operation, maintenance and integrity management records and procedures for the Facility, make these records and procedures available for PHMSA’s inspection electronically or at a mutually acceptable date and location, and submit the analysis and findings from the records and procedures review to the Director. B. Address any findings from the review that require remedial measures and complete any necessary procedural modifications prior to restarting injection. Findings that require remedial measures may be identified by either Equitrans or the Director (within 30 days of submission of the analysis). 16. Assessment of Personnel Training. Within 30 days of the Effective Date, Equitrans must submit to the Director for review and approval an assessment of the training of operations, maintenance, and supervisory personnel (to include Equitrans contractors) who perform work at the Facility. This assessment must be performed by Blade Energy Partners. The Assessment must include a review of the training of the employees involved in the implementation of all applicable Emergency Response Plans. 17.Injection Plan. Prior to injecting any gas into the Facility and resuming injection operations, Equitrans must submit a written Injection Plan to the Director for approval. The Director may approve the Injection Plan incrementally without approving the entire plan, but Equitrans cannot begin injecting until the Injection Plan is approved in its entirety. The Injection Plan must include: A. The day-light hour schedule to begin the injection into the Facility including a plan for providing advance communication to local emergency response officials and the Director before beginning any injection.#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 8B. Documentation that verifies the submission of the obligations in Paragraph 13 (RCFA), Paragraph 14 (RWP), Paragraph 15 (Review of Records and Procedures), and Paragraph 16 (Assessment of Personnel Training). C. Documentation of the real-time monitoring results at the Facility (See Paragraph 14(E)). D. Documentation that Equitrans has implemented the corrective measures from its RWP necessary to provide a safe storage field operation and well integrity for the wells to be operated, as determined by the Director. 18. Return to Full Operations. After the Director approves the Injection Plan, Equitrans may inject gas into the Facility, but the operating pressure must not initially exceed eighty percent (80%) of the actual operating pressure in effect immediately prior to the Incident. A. After reaching 80% of the actual operating pressure in effect at the time of the Incident, Equitrans must complete a 7-day shut-in test to determine all storage wells used for injection, withdrawal, and/or observation are not leaking and are otherwise safe to operate. B. Equitrans must submit the results of the shut-in test to the Director for approval prior to resuming operation at the Maximum Allowable Operating Pressure. 19. Monthly Reports. Equitrans must submit monthly reports to the Director that: (1) describe the progress of the repairs and other long-term remedial actions being undertaken and (2) provide the results of the inspections required by this Agreement (if not already provided through compliance with Paragraph 14(G)). The first report is due 30 days from the Effective Date. 20. Extensions of Time. The Director may grant an extension of time for compliance with any of the terms of the Agreement upon a written request timely submitted demonstrating good cause for an extension. The Director shall respond in writing to any such request within 30 days. 21. Documentation of the Costs. It is requested but not mandated that Equitrans maintain documentation of the safety improvement costs associated with fulfilling this Agreement and submit the total to the Director. It is requested that these costs be reported in two categories: (1) total cost associated with preparation and revision of plans, procedures, studies, and analyses and (2) total cost associated with replacement, additions, or other changes to underground natural gas storage infrastructure. III. Review and Approval Process 22. With respect to any submission under Section II (Corrective Measures) of this Agreement that requires the approval of the Director, the Director may: (a) approve, in whole or in part, the submission, (b) approve the submission on specified, reasonable conditions, (c)#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 9disapprove, in whole or in part, the submission, or (d) any combination of the foregoing. If the Director approves, approves in part, or approves with conditions, Equitrans will take all action as approved by the Director, subject to Respondent's right to invoke the dispute resolution procedures in Section IV. If the Director disapproves all or any portion of the submission, the Director will provide Equitrans with a written notice of the deficiencies. Respondent will correct all deficiencies within the time specified by the Director and resubmit it for approval. IV. Dispute Resolution 23. The Director and Equitrans will informally attempt to resolve any disputes arising under this Agreement. If Respondent and the Director are unable to informally resolve the dispute within 15 business days, Respondent may request in writing, within 10 days from the 15 business day deadline, a written determination resolving the dispute from the Associate Administrator. The Director and counsel for the Eastern Region should be copied on any such request. Along with its request, Respondent will provide all information that Respondent reasonably believes is relevant to the dispute. If the request is submitted as provided herein, the Associate Administrator will issue a final determination in writing. This determination will constitute final agency action. The existence of a dispute and PHMSA's consideration of matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion of any work to be performed under this Agreement during the pendency of the dispute resolution process except as agreed by the Director or the Associate Administrator in writing. V. Enforcement 24. This Agreement is subject to all enforcement authorities available to PHMSA under 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties under 49 U.S.C. § 60122, of up to $257,664 per violation for each day the violation continues and referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that Respondent is not complying with the terms of this Agreement in accordance with the determinations made by the Director, or in accordance with decisions of the Associate Administrator if resolved pursuant to the Dispute Resolution process herein. All work plans and associated schedules set forth or referenced in Section II are automatically incorporated into this Agreement and are enforceable in the same manner. VI. Recordkeeping and Information Disclosure 25. Unless otherwise required in this Agreement or the pipeline safety regulations, Equitrans agrees to maintain records demonstrating compliance with all requirements of this Agreement for a period of at least five years following completion of all work to be performed. For any reports, plans, or other deliverables required to be submitted to PHMSA pursuant to this Agreement, Equitrans may assert a claim of business confidentiality or other protections applicable to the release of information by PHMSA, covering part or all of the information required to be submitted to PHMSA pursuant to this Agreement in accordance with 49 C.F.R. Part 7. Equitrans must mark the claim of confidentiality in writing on each page, and include a statement specifying the grounds#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 10for each claim of confidentially. PHMSA determines release of any information submitted pursuant to this Agreement in accordance with 49 C.F.R. Part 7, the Freedom of Information Act, 5 U.S.C. § 552, DOT and PHMSA policies, and other applicable regulations and Executive Orders. VII. Effective Date 26. The term "Effective Date," as used herein, is the date on which the Consent Order is issued by the Associate Administrator incorporating the terms of this Agreement. Unless specified to the contrary, all deadlines for actions required by this Agreement run from the Effective Date of the Consent Order. Nothing in this Agreement prevents Equitrans from completing any of the obligations earlier than the deadlines provided for in this Agreement. VIII. Modification 27. The terms of this Agreement may be modified by mutual agreement of the Parties. Such modifications must be in writing and signed by both parties. IX. Termination 28. This Agreement shall remain in effect until the Corrective Measures set forth in Section II are satisfied, as determined by the Director. X. Ratification 29. The Parties' undersigned representatives certify that they are fully authorized to enter into the terms and conditions of this Agreement and to execute and legally bind such party to this document. 30. The Parties hereby agree to all conditions and terms of this Agreement.#
12022080NOPSO_Consent Agreement and Order_05262023_(22-259271)_text.pdf, page 11For Respondent: ___________________________________ Robert Cooper Senior Vice President, Construction Services Equitrans Midstream Corporation ___________________________________ Date For PHMSA: ___________________________________ Robert Burrough Director, Eastern Region, Office of Pipeline Safety ___________________________________ Date#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: cbaker@equitransmidstream.com December 29, 2022 Clifford Baker Senior Vice President, Commercial Development & Operations Equitrans Midstream Corporation 2200 Energy Drive Canonsburg, PA 15317 CPF 1-2022-080-NOPSO Dear Mr. Baker: Enclosed is a Notice of Proposed Safety Order (Notice) issued in the above-referenced case. The Notice proposes that you take certain measures with respect to your Rager Mountain underground natural gas storage facility and wells to ensure safety. Your options for responding are set forth in the Notice. Your receipt of the Notice constitutes service of that document under 49 C.F.R. § 190.5. We look forward to a successful resolution to ensure pipeline safety. Please direct any questions on this matter to me at 609-771-7809. Sincerely, Robert Burrough, Director, Eastern Region Pipeline and Hazardous Materials Safety Administration Enclosures: Notice of Proposed Safety Order 49 C.F.R. § 190.239 Cc: Ms. Linda Daugherty, Deputy Associate Administrator for Field Operations, Office of Pipeline Safety <linda.daugherty@dot.gov> Mr. Jake Lyons, Manager Pipeline Safety and Compliance, Equitrans Midstream Corporation <jlyons@equitransmidstream.com> CONFIRMATION OF RECEIPT REQUESTED#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 2DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY EASTERN REGION WEST TRENTON, NJ 08628 __________________________________________ ) In the Matter of ) ) Equitrans Midstream Corporation, ) CPF No. 1-2022-080-NOPSO ) Respondent. ) __________________________________________) NOTICE OF PROPOSED SAFETY ORDER Background and Purpose Pursuant to Chapter 601 of title 49, United States Code, the Pipeline and Hazardous Materials Safety Administration (PHMSA) has initiated an investigation and review of the safety of Equitrans Midstream Corporation’s (ETRN) Rager Mountain Storage (RMS) Facility after November 2022 failure incidents resulting in the leak of a large amount of natural gas. As a result of PHMSA’s preliminary investigation, it appears that a condition or conditions exist at your RMS Facility that poses a pipeline integrity risk to public safety, property, or the environment. Pursuant to 49 U.S.C. § 60117(m), PHMSA issues this Notice of Proposed Safety Order (Notice) notifying you of the preliminary findings of the investigation, and proposing that you take measures to ensure that the public, property, and the environment are protected from the potential risk. Preliminary Findings • ETRN owns and operates an interstate natural gas transportation system spanning several states. ETRN’s system includes the RMS Facility located in Cambria County, Pennsylvania. The RMS Facility is an underground natural gas storage facility (UNGSF; see 49 C.F.R. § 192.3) which includes ten operating storage wells and two observation wells, and is connected via pipeline segments to interstate gas transmission pipelines. The RMS Facility is an interstate gas pipeline facility subject to the Federal#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 3Pipeline Safety Regulations. 1 This facility is located within a Pennsylvania state park, in a remote area. • On November 6, 2022, ETRN was notified that Well 22442 (also known as the George L. Reade No. 1 Well) at the RMS Facility was unintentionally venting natural gas (the Incident) to the atmosphere through a 1 5/8-inch vent located on the annulus of the well at a pressure of approximately 1,300 pounds per square inch gauge (psig). • ETRN reported the Incident to the National Response Center (NRC) on November 6, 2022. 3 ETRN’s contractor, Wild Well Control, indicated it would be unable to arrive at the RMS Facility until Tuesday, November 8, 2022. Another contractor, CUDD Well Services (CUDD), was in the area and responded to the Incident on Monday, November 7, 2022. Beginning on November 10, 2022, CUDD made multiple attempts to stop the leak by flooding the well with either fresh water or varying salinities of brine water. These attempts to stop the leak were unsuccessful. • On November 19, 2022, CUDD temporarily stopped the leak of gas out of the vent of Well 2244 by successfully setting a temporary bridge plug in the well bore. This was CUDD’s second attempt to set a plug to stop the leak. The first attempt failed due to a mechanical failure. This secondary plug was set at a depth of 5,875 feet and a tertiary plug was set at 5,830 feet. On November 20, 2022, ETRN had cement pumped into the well bore. • ETRN estimates that Well 2244 vented over one billion cubic feet (BCF) of natural gas to the atmosphere before the leak was halted on November 19, 2022. • During the Incident, based on PHMSA’s observations at the site, it appears that ETRN did not review its up-to-date schematics of Well 2244 before attempting to stop the leak. ETRN and Cudd also did not follow all of the procedures in the facility’s “Storage Well Emergency Response Plan”. The failure to follow all of the "Storage Well Emergency Response Plan" procedures may have been a factor contributing to the delay in stopping the leak. The initial attempt to temporarily plug the well failed due to the plug being stuck on an obstruction not previously identified by ETRN prior to initiating repairs. 1 ETRN Underground Natural Gas Storage Facility Annual Report for Calendar Year 2021 (OMB No. 2137-0522) (submitted Mar. 14, 2022). 2 The production string well tubulars for Well 2244 were constructed in 1965 (1,875 feet) and 1993 (5,950 feet), respectively. The tubulars from both years were 7-inch, N-80, 26 pounds per square foot, and cemented partially. The cement is present from the bottom of the well to a depth of 2,940 feet. From the depth of approximately 10 feet to 2,940 feet, a gel was installed to fill the void. The maximum allowable operating pressure (MAOP) of the underground natural gas storage facility is 3,200 psig. Gas is stored in well composed of Oriskany sandstone located at a minimum depth of 7,601 feet to a maximum depth of 8,060 feet, per ETRN’s annual report. 3 NRC Report No. 1351880.#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 4• On November 22, 2022, it was discovered another well in the RMS Facility, Well 2251 (also known as the Peoples Natural Gas No. 1 Well), which previously did not have any flow out of its annulus, was flowing gas at a rate of seven percent gas in air, which is above the Lower Explosive Limit (LEL) for natural gas. Well 2251 was temporarily plugged on December 7, and later an additional well, Well 2248, was also temporarily plugged after a leak was discovered. These additional events may be an indication that some of the escaping natural gas that was exposed to the annulus in Well 2244 and vented to the atmosphere may have leaked to additional formations. This may also indicate there is an additional casing integrity issue. • To date, the exact causes of the casing failure in Well 2244 and leaks during the Incident and at Wells 2251 and 2248, are unknown. It is also presently unknown if the natural gas leak from Well 2244 has affected other portions of the RMS Facility, including Wells 2251 and 2248. At present, PHMSA is gathering additional data regarding the Incident and the leaks at the additional wells and is continuing its investigation. ETRN has reported that is it not presently injecting natural gas into the RMS Facility. Further, the Commonwealth of Pennsylvania’s Department of Environmental Protection has alerted PHMSA to other alleged natural gas leaks and potential integrity issues within the RMS Facility at present.4 Proposed Issuance of Safety Order Section 60117(m) of Title 49, United States Code, provides for the issuance of a safety order, after reasonable notice and the opportunity for a hearing, requiring corrective measures, which may include physical inspection, testing, repair, or other action, as appropriate. The basis for making the determination that a pipeline facility, including an underground natural gas storage facility, has a condition or conditions that pose a pipeline integrity risk to public safety, property, or the environment is set forth both in the above-referenced statute and 49 C.F.R. § 190.239, a copy of which is enclosed. After evaluating the foregoing preliminary findings of fact, and based on: (1) The amount of natural gas stored in the RMS Facility; (2) The amount of natural gas vented to the atmosphere during the Incident that was discovered beginning on November 6, 2022; (3) The failed well casing involved; (4) The hazardous nature to persons and the environment of the product stored and transported; (5) The operating pressures at this UNGSF; and, (6) The presently unknown aspects regarding the cause of the three leaks, including whether other leaks are present and if unknown additional impacts are occurring to the RMS Facility, any injection into affected Well 2244 and the other wells at the RMS Facility, without a root cause analysis and corresponding corrective measures, would pose a risk to public safety, property, and the environment. Accordingly, PHMSA issues this Notice to notify Respondent of the proposed issuance of a safety order and to propose that Respondent take measures specified herein to address the potential risks. 4 See https://www.ahs.dep.pa.gov/NewsRoomPublic/articleviewer.aspx?id=22235&typeid=1.#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 5Proposed Corrective Measures Pursuant to 49 U.S.C. § 60117(m) and 49 C.F.R. § 190.239, PHMSA proposes to issue to ETRN a safety order incorporating the following remedial requirements with respect to the affected pipeline: 1. Definitions. For the purpose of this Notice the following terms are defined as: (A) “Director” is the Director, Eastern Region, Office of Pipeline Safety (OPS), Pipeline and Hazardous Materials Safety Administration (PHMSA) (B) “Effective Date” is the date a safety order is issued. 2. Root Cause Failure Analysis. Within 90 days after the Effective Date, ETRN must complete a root cause failure analysis (RCFA) regarding the cause of the leaks that were discovered beginning on November 6, 2022 (applicable to the Incident and the two additional leaks) and submit a final RCFA to the Director. (A) The RCFA must be facilitated by an independent third-party acceptable to the Director and must document the decision-making process and all factors contributing to the failures. ETRN shall submit a proposed third- party for the Director’s approval within 30 days of the Effective Date. (B) The final RCFA must include findings and any lessons learned. The RCFA must also analyze and document whether the findings and any lessons learned are applicable to other locations within ETRN’s RMS Facility. 3. Remedial Work Plan. Within 60 days after submitting the RCFA, ETRN must develop and submit to the Director for approval a written Remedial Work Plan (RWP) that includes corrective measures. The Director may approve the RWP elements incrementally. Once approved, the RWP shall become incorporated into the safety order, including any revisions to the RWP. The RWP must include: (A) A plan for completing inspections of Wells 2244, 2251, and 2248 within 60 days of the RWP. The results of all inspections, field reviews, and evaluations must be provided to the Director within 30 days of the inspections. (B) A plan to inspect all other wells at the UNGSF for similar conditions and to address any additional findings/leaks and the repairs. (C) A plan to address the final disposition of the temporary plugs in Wells 2244 2251, and 2248. The plan must consider the cause of the leaks and describe whether ETRN will Plug and Abandon (P&A) or reactivate#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 6the wells for future use. The RWP must include a list of all plugs and their locations and ETRN’s plan as to their disposition. (D) A plan for the performance of repairs or other corrective measures that fully remediate the identified risk condition(s) within 30 days of corrective action. The plan must include provisions for continuing long- term, periodic testing and integrity verification measures to ensure the ongoing safe operation of the pipeline considering the results of the analyses, inspections, and corrective measures undertaken pursuant to the safety order; (E) A proposed schedule for completion of the actions required by paragraphs (A), (B), (C), and (D) of this Item. 4. Review of Records and Procedures. Within 30 days of the Effective Date, ETRN must: (A) Conduct a review of construction, operating and maintenance (O&M) and integrity management records, such as Magnetic FluxLeakage (MFL) logs, Gamma Ray Neutron (GRN) logs, Mechanical Integrity (MIT), root cause failure analysis of prior failures, and aerial and ground patrols for the RMS Facility. (B) Submit the analysis and findings from that review to the Director and address any findings that require remedial measures to be implemented prior to restarting injection. ETRN must also amend procedures as necessary. All procedural modifications must be incorporated into ETRN’s operations and maintenance procedures manual and submitted to the Director for approval. 5. Injection Plan. Prior to injecting any gas into the RMS Facility and/or resuming normal operations, ETRN must first develop and submit a written Injection Plan to the Director for approval. The Director may approve the Injection Plan incrementally without approving the entire plan, but ETRN cannot begin injecting until the Injection Plan is approved in its entirety. Once approved by the Director, the Injection Plan will be incorporated by reference into the safety order. The Injection Plan must include: (A) The day-light hour schedule to begin the injection into the RMS Facility, including a plan for providing advance communications to local emergency response officials and the Director before beginning any injection. (B) Documentation that verifies the completion of all mandated actions (to include those in the RWP).#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 76. Return to Full Operations. After the Director approves the Injection Plan ETRN may inject gas into the RMS Facility, but the operating pressure must not initially exceed eighty percent (80%) of the actual operating pressure in effect immediately prior to the failure on November 6, 2022. After reaching 80% of the actual operating pressure in effect immediately prior to the failure on November 6, 2022, ETRN shall complete a 7-day shut- in test to determine no storage wells are leaking and are otherwise safe to operate. ETRN must submit the results of the shut-in test to the Director for approval prior to resuming operation at the MAOP. 7. Assessment of Personnel Training. Within 30 days of the Effective Date, ETRN must submit to the Director for review and approval an assessment of the training of operations, maintenance, and supervisory personnel (to include for ETRN contractors) who perform work at the RMS Facility. This assessment must be performed by the approved third party. The assessment must include a review of the training of employees regarding ETRN’s “Storage Well Emergency Response Plan, ” including during well control emergencies. 8. Quarterly Reports. ETRN must submit quarterly reports to the Director that: (1) include available data and results of the testing and evaluations required by the safety order; (2) describe the progress of the repairs and other remedial actions being undertaken; and (3) document all mandated actions in the safety order. The first report will be due 30 days from the Effective Date. 9. Approvals. With respect to each submission under the safety order that requires the approval of the Director, the Director may: (a) approve, in whole or part, the submission; (b) approve the submission on specified conditions; (c) modify the submission to cure any deficiencies; (d) disapprove in whole or in part, the submission, directing that Respondent modify the submission, or (e) any combination of the above. In the event of approval, approval upon conditions, or modification by the Director, Respondent shall proceed to take all action required by the submission as approved or modified by the Director. If the Director disapproves all or any portion of the submission, Respondent must correct all deficiencies within the time specified by the Director and resubmit it for approval. 10. Extensions of Time. The Director may grant an extension of time for compliance with any of the terms of the safety order upon a written request timely submitted demonstrating good cause for an extension. 11. Documentation of the Costs. It is requested that ETRN maintain documentation of the costs associated with implementation of this safety order. Include in each monthly report submitted, the to-date total costs associated with: (1) preparation and revision of procedures, studies, and analyses; (2) physical changes to pipeline infrastructure, including repairs, replacements, and other modifications; and (3) environmental remediation, if applicable. The actions proposed by this Notice are in addition to and do not waive any requirements that apply to Respondent’s facility under 49 C.F.R. Parts 190 through 199, under any other order issued#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 8to Respondent under authority of 49 U.S.C. § 60101 et seq., or under any other provision of Federal or state law. After receiving and analyzing additional data in the course of this proceeding and implementation of the RWP, PHMSA may identify other safety measures that need to be taken. In that event, Respondent will be notified of any proposed additional measures and, if necessary, amendments to the RWP or safety order. Respondent may appeal any decision of the Director to the Associate Administrator for Pipeline Safety. Decisions of the Associate Administrator shall be final. Response to this Notice In accordance with 49 C.F.R. § 190.239, you have 30 days following receipt of this Notice to submit a written response to the official who issued the Notice. If you do not respond within 30 days, this constitutes a waiver of your right to contest this Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to you and to issue a safety order. In your response, you may notify that official that you intend to comply with the terms of the Notice as proposed, or you may request that an informal consultation be scheduled (you will also have the opportunity to request an administrative hearing before a safety order is issued). Informal consultation provides you with the opportunity to explain the circumstances associated with the risk condition(s) alleged in the notice and, as appropriate, to present a proposal for a work plan or other remedial measures, without prejudice to your position in any subsequent hearing. If you and PHMSA agree within 30 days of informal consultation on a plan and schedule for you to address each identified risk condition, we may enter into a written consent agreement (PHMSA would then issue an administrative consent order incorporating the terms of the agreement). If a consent agreement is not reached, or if you have elected not to request informal consultation, you may request an administrative hearing in writing within 30 days following receipt of the Notice or within 10 days following the conclusion of an informal consultation that did not result in a consent agreement, as applicable. Following a hearing, if the Associate Administrator finds the facility to have a condition that poses a pipeline integrity risk to the public, property, or the environment in accordance with § 190.239, the Associate Administrator may issue a final safety order. 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). In your correspondence on this matter, please refer to CPF 1-2022-080-NOPSO and for each document you submit, please provide a copy in electronic format whenever possible.#
12022080NOPSO_Notice of Proposed Safety Order_12292022_(22-259271)_text.pdf, page 9______________________________ ____________________ Robert Burrough Date issued Director, Eastern Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration#
12022080NOPSO_Closure Letter_02132026_(22-259271)_text.pdf, page 1Official PDFU.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration VIA ELECTRONIC MAIL TO: toby.rice@eqt.com 840 Bear Tavern Road, Suite 300 West Trenton, NJ 08628 609.771.7800 February 13, 2026 Mr. Toby Rice Chief Executive Officer and President EQT Production 2071 Garards Fort Road Waynesburg PA 15370 RE: CPF No. 1-2022-080-NOPSO / Closure Letter Dear Mr. Rice: On December 29, 2022, the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of Proposed Safety Order to Equitrans Midstream Corporation (n/k/a EQT Production). On May 26, 2023, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to EQT Production, a Consent Agreement and Order in the above-referenced case. This Order included a requirement to take corrective measures at your Rager Mountain Storage Facility. Based on our review of the documentation provided, it has been determined that EQT Production has complied with the terms of this Order. Accordingly, this Order is now closed, and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Robert Burrough Director, Eastern Region, Office of Pipeline Safety Pipeline and Hazardous Materials Safety Administration cc: Jake Lyons, Director, Midstream Compliance, EQT, jacob.lyons@eqt.com#
This material provides agency context. It does not replace binding regulatory text, and its legal effect depends on the underlying authority and facts.