{"operation":"document","citation":"CPF 12023014WL","title":"CITIZENS GAS & COKE UTILITY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-02-23","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023014wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023014wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023014wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12023014WL","body":"Warning Letter involving CITIZENS GAS & COKE UTILITY. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2023-02-23 and is reported as closed as of 2023-02-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12023014WL_Warning Letter_02232023_(22-244908).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023014WL/12023014WL_Warning%20Letter_02232023_(22-244908).pdf\n\n12023014WL_Warning Letter_02232023_(22-244908)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023014WL/12023014WL_Warning%20Letter_02232023_(22-244908)_text.pdf\n\n12023014WL_Warning Letter_02232023_(22-244908)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nFebruary 23, 2023\nMr. Christopher Braun\nVice President Energy Operations\nCitizens Gas & Coke Utility\n2150 Dr. MLK Jr. Street\nIndianapolis, Indiana 46202\nCPF 1-2023-014-WL\nDear Mr. Braun:\nFrom November 1, 2022, through November 3, 2022, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCode (U.S.C.) inspected Citizens Gas & Coke Utility’s (CGCU) Dixon, Switz City and\nWorthington Storage Facilities in Greene County, Indiana.\nAs a result of the inspection, it is alleged that you have committed probable violation 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.\nCGCU failed to meet the provisions of API RP 1171, Section 9. Specifically, CGCU failed to test\nthe operation of the master valve and wellhead pipeline isolation valve at least annually for proper\n\n\n\nfunction and ability to isolate the well in accordance with API RP 1171, Section 9.3.2 (Section\n9.3.2).\nSection 9.3.2 states in part, “The operator shall test the operation of the master valve and wellhead\npipeline isolation valve at least annually for proper function and ability to isolate the well.”\nDuring the inspection, CGCU provided test records of the operation of the wellhead master valves\nand wellhead pipeline isolation valves for 2018 and 2022 but was not able to provide records for\n2019, 2020 and 2021.\nTherefore, CGCU failed to meet the provisions of Section 9.3.2.\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.\nCGCU failed to meet the provisions of API RP 1171, Section 9. Specifically, CGCU failed to\nperform annual visual wellhead assembly inspections for leaks in accordance with API RP 1171,\nSection 9.3.2 (Section 9.3.2).\nSection 9.3.2 states in part, “The operator shall visually inspect each wellhead assembly at least\nannually for leaks.”\nDuring the inspection, CGCU provided records of field notes from 2018 through 2021 that stated\nthat “all wells in the 3 fields were checked” but the notes did not include information that the wells\nwere visually inspected for leaks.\nTherefore, CGCU failed to meet the provisions of Section 9.3.2.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related\nseries of violations. For violation occurring on or after March 21, 2022, and before January 6,\n2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists,\nup to a maximum of $2,391,142 for a related series of violations. For violation occurring on or\nafter May 3, 2021, and before March 21, 2022, the maximum penalty may not exceed $225,134\nper violation per day the violation persists, up to a maximum of $2,251,334 for a related series of\nviolations. For violation occurring on or after January 11, 2021, and before May 3, 2021, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n\n\n\n31, 2019, and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations. For violation occurring on or after November 27, 2018, and before July 31, 2019, the\nmaximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to\nexceed $2,132,679. For violation occurring on or after November 2, 2015, and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty 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\nCitizens Gas & Coke Utility 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 1-2023-014-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":6655}