# CITIZENS GAS & COKE UTILITY — Warning Letter

- **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:** Not available
- **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.

Official case documents:

12023014WL_Warning Letter_02232023_(22-244908).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023014WL/12023014WL_Warning%20Letter_02232023_(22-244908).pdf

12023014WL_Warning Letter_02232023_(22-244908)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023014WL/12023014WL_Warning%20Letter_02232023_(22-244908)_text.pdf

12023014WL_Warning Letter_02232023_(22-244908)_text.pdf

WARNING LETTER
OVERNIGHT EXPRESS DELIVERY
February 23, 2023
Mr. Christopher Braun
Vice President Energy Operations
Citizens Gas & Coke Utility
2150 Dr. MLK Jr. Street
Indianapolis, Indiana 46202
CPF 1-2023-014-WL
Dear Mr. Braun:
From November 1, 2022, through November 3, 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 Citizens Gas & Coke Utility’s (CGCU) Dixon, Switz City and
Worthington Storage Facilities in Greene County, Indiana.
As a result of the inspection, it is alleged that you have committed probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
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.
CGCU failed to meet the provisions of API RP 1171, Section 9. Specifically, CGCU failed to test
the operation of the master valve and wellhead pipeline isolation valve at least annually for proper



function and ability to isolate the well in accordance with API RP 1171, Section 9.3.2 (Section
9.3.2).
Section 9.3.2 states in part, “The operator shall test the operation of the master valve and wellhead
pipeline isolation valve at least annually for proper function and ability to isolate the well.”
During the inspection, CGCU provided test records of the operation of the wellhead master valves
and wellhead pipeline isolation valves for 2018 and 2022 but was not able to provide records for
2019, 2020 and 2021.
Therefore, CGCU failed to meet the provisions of Section 9.3.2.
2. § 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.
CGCU failed to meet the provisions of API RP 1171, Section 9. Specifically, CGCU failed to
perform annual visual wellhead assembly inspections for leaks in accordance with API RP 1171,
Section 9.3.2 (Section 9.3.2).
Section 9.3.2 states in part, “The operator shall visually inspect each wellhead assembly at least
annually for leaks.”
During the inspection, CGCU provided records of field notes from 2018 through 2021 that stated
that “all wells in the 3 fields were checked” but the notes did not include information that the wells
were visually inspected for leaks.
Therefore, CGCU failed to meet the provisions of Section 9.3.2.
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related
series of violations. For violation occurring on or after March 21, 2022, and before January 6,
2023, the maximum penalty may not 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 items identified in this letter. Failure to do so will result in
Citizens Gas & Coke Utility 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 1-2023-014-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
- **truncated:** false
- **body characters:** 6655