{"operation":"document","citation":"CPF 12023015WL","title":"FREEBIRD GAS STORAGE, LLC — 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(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023015wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023015wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023015wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12023015WL","body":"Warning Letter involving FREEBIRD GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulation as 192.12(d)(4). 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\n12023015WL_Warning Letter_02232023_(22-235367).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023015WL/12023015WL_Warning%20Letter_02232023_(22-235367).pdf\n\n12023015WL_Warning Letter_02232023_(22-235367)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023015WL/12023015WL_Warning%20Letter_02232023_(22-235367)_text.pdf\n\n12023015WL_Warning Letter_02232023_(22-235367)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nFebruary 23, 2023\nMr. Paul Bieniawski\nChief Executive Officer\nFreebird Gas Storage, LLC\n10375 Richmond Avenue, Suite 1900\nHouston, Texas 77042\nCPF 1-2023-015-WL\nDear Mr. Bieniawski:\nFrom November 15, 2022 through November 17, 2022, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Freebird Gas Storage, LLC’s (FGS) Freebird Storage Facility in Lamar County, Alabama.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the Pipeline\nSafety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and the probable\nviolation is:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program--\n(1) …\n(4) Integrity management procedures and recordkeeping. Each UNGSF\noperator must establish and follow written procedures to carry out its\nintegrity management program under API RP 1171 (incorporated by\nreference, see § 192.7), section 8 (\"Risk Management for Gas Storage\nOperations\"), and this paragraph (d). The operator must also maintain,\nfor the useful life of the UNGSF, records that demonstrate compliance\nwith the requirements of this paragraph (d). This includes records\ndeveloped and used in support of any identification, calculation,\namendment, modification, justification, deviation, and determination\nmade, and any action taken to implement and evaluate any integrity\nmanagement program element.\n\n\n\nFGS failed to follow its Storage Integrity Management Plan (SIMP), Section 2. Specifically, FGS\nfailed to update the risk model with data collected in 2019 in accordance with SIMP, Sections 2.5.4,\nData Gathering (Section 2.5.4), item 1 and 2.6, Data Review (Section 2.6).\nSection 2.5.4 stated in part:\nThe Operations Manager shall gather all pertinent data for each storage well. The data that\nshall be evaluated for the threats is included in the risk analysis model. The data shall be\ncollected from the Company's engineering and construction records, operational and\ninspection reports, and interviews with SMEs.\nAvailable data applicable to gas storage falls into six broad categories. Following is a\ndescription of each category and how that data applies to the design, development, and\noperation of the storage reservoirs and wells:\n1) Well Files – Well files are maintained for all injection/withdrawal (I/W), key indicator\n(KI), and OM wells. These files will be maintained at the corporate office. Common\ndocument types include drilling reports, cement reports, completion reports, logs, mud\nlogs, field tickets, regulatory records, tally, geological characterization, reservoir\nengineering, and schematics.\nSection 2.6 stated in part:\nThe Risk Management Team shall:\n• Review the inputted data and the resulting score.\n• Select each storage well to compare the data and LOF scores with other storage wells'\naverages to ensure the data is correct and to understand the factors contributing to\nvarious threats in a particular storage well.\n• Review the inputted data with SMEs to better understand the analysis and identify\npotential anomalies in the data. The review should include, but not limited to, the\nfollowing steps:\n1) Review the data for accuracy.\n2) Review the data in comparison with other storage wells to determine\nwhether any well's data is outside of expected results.\n3) Review the data with the threat scoring to ensure that the data and the\nindividual threat score are rational.\n4) Compare the threat score with other storage wells to determine\nwhether any well's score is not in line with expectations.\n5) Assess program effectiveness.\nThe review will be conducted on an annual basis not to exceed 15 months. OM Form 1300-\n11 will be completed for each facility to document the review as described above, document\nthe risk assessment results, review changes from previous assessments, recommend actions to\nbe taken, assess effectiveness of review process, and record participants in the review\nprocess.\n\n\n\nDuring the inspection, FGS presented its risk analysis model to demonstrate risk determination and the\nrisk analysis model had not been updated with data collected in 2019. The data included casing\ninspection results for 4 wells.\nTherefore, FGS failed to follow its SIMP, Section 2.5.4 and Section 2.6, as required by\n§ 192.12(d)(4).\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, 2023,\nthe maximum penalty may not exceed $239,142 per violation per day the violation persists, up to a\nmaximum of $2,391,142 for a related series of violations. For violation occurring on or after May 3,\n2021, and before March 21, 2022, the maximum penalty may not exceed $225,134 per violation per\nday the violation persists, up to a maximum of $2,251,334 for a related series of violations. For\nviolation occurring on or after January 11, 2021, and before May 3, 2021, the maximum penalty may\nnot exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a\nrelated series of violations. For violation occurring on or after July 31, 2019, and before January 11,\n2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up\nto a maximum 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 or\nafter 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 decided\nnot to conduct additional enforcement action or penalty assessment proceedings at this time. We advise\nyou to correct the item identified in this letter. Failure to do so will result in Freebird Gas Storage,\nLLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF\n1-2023-015-WL. Be advised that all material you submit in response to this enforcement action is\nsubject to being made publicly available. If you believe that any portion of your responsive material\nqualifies for confidential treatment under 5 U.S.C. § 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential 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":7833}