{"operation":"document","citation":"CPF 12023041NOA","title":"LODI GAS STORAGE, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-06-15","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(b)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023041noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023041noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023041noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12023041NOA","body":"Notice of Amendment involving LODI GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(1). The case was opened on 2023-06-15 and is reported as closed as of 2023-07-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12023041NOA_Closure Letter_07272023_(22-235020).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023041NOA/12023041NOA_Closure%20Letter_07272023_(22-235020).pdf\n\n12023041NOA_Closure Letter_07272023_(22-235020)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023041NOA/12023041NOA_Closure%20Letter_07272023_(22-235020)_text.pdf\n\n12023041NOA_Notice of Amendment_06152023_(22-235020).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023041NOA/12023041NOA_Notice%20of%20Amendment_06152023_(22-235020).pdf\n\n12023041NOA_Notice of Amendment_06152023_(22-235020)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023041NOA/12023041NOA_Notice%20of%20Amendment_06152023_(22-235020)_text.pdf\n\n12023041NOA_Operator Response to Notice_07142023_(22-235020).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023041NOA/12023041NOA_Operator%20Response%20to%20Notice_07142023_(22-235020).pdf\n\n12023041NOA_Closure Letter_07272023_(22-235020)_text.pdf\n\nCPF 1-2023-041-NOA\nDear Mr. KcKenna:\nFrom September 26, 2022, to September 30, 2022, an inspector from California Geologic Energy\nManagement Division (CalGEM), acting as an agent for the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Lodi Gas Storage LLC’s procedures for the Kirby Hills Storage and Lodi Storage\ndepleted hydrocarbon Underground Natural Gas Storage Facilities (UNGSF) in Solano County\nand San Joaquin County California, respectively. As a result of the inspection, Lodi Gas Storage\nLLC was issued a Notice of Amendment on June 15, 2023.\nLodi Gas Storage LLC submitted its amended procedures on July 14, 2023. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nP.P.\nVIA ELECTRONIC MAIL TO: toby.mckenna@rockpointgs.com\nJuly 27, 2023\nMr. Toby McKenna\nPresident and Chief Executive Officer\nLodi Gas Storage, LLC\n607 8th Avenue SW, Suite 400\nCalgary, AB T2P 0A7\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n12023041NOA_Notice of Amendment_06152023_(22-235020)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: toby.mckenna@rockpointgs.com\nJune 15, 2023\nMr. Tobias McKenna\nPresident and Chief Executive Officer\nLodi Gas Storage, LLC\n607 8th Avenue SW, Suite 400\nCalgary, AB T2P 0A7\nCPF 1-2023-041-NOA\nDear Mr. McKenna:\nFrom September 26, 2022 to September 30, 2022, an inspector from the California Geologic\nEnergy Management Division (CalGEM), acting as an agent for the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected Lodi Gas Storage, LLC’s (LGS) procedures for Kirby Hills Storage and Lodi\nStorage depleted hydrocarbon Underground Natural Gas Storage Facilities (UNGSF) in Solano\nCounty and San Joaquin County California, respectively. LGS has been operating these fields since\n2001.\nAs a result of the inspection, PHMSA has identified the apparent inadequacy found within LGS’\nplans or procedures. The item inspected and the inadequacy is described below:\n1. 49 CFR § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs\n(1) Each UNGSF that uses a depleted hydrocarbon reservoir or an\naquifer reservoir for natural gas storage and was constructed after\nJuly 18, 2017, must meet all provisions of API RP 1171 (incorporated\nby reference, see § 192.7), and paragraphs (c) and (d) of this section,\nprior to commencing operations.\nLGS’ procedures were inadequate because they failed to meet the provisions of API RP 1171,\n\n\n\nSection 11.2.11 and Section 6 as required. Specifically, LGS’ procedures failed to define a records\nretention period in accordance with API RP 1171, Section 6.11.2.\nAPI RP 1171, Section 6.11.2 states in part:\nRecords relating to permitting, procedures, personnel, and equipment shall be\nretained for a period that meets regulatory requirements, or where no regulatory\nrequirements exist, intervals as determined by the operator. These records shall\ninclude, as applicable and available, the items listed below as referenced in each\nsubsection.\n— 6.8 Environmental, Health, and Safety\n— On-site safety meeting records.\n— 6.10 Monitoring of Construction Activities\n— Supervisor qualifications.\n— Contractor personnel qualifications.\n— Equipment suitability records.\n— Contractor safety orientation\nDuring the inspection, PHMSA reviewed LGS’ Record Management Program, Lodi Gas Storage\nLLC (\"RMP\"), which failed to list a retention period for records relating to permitting, procedures,\npersonnel, and equipment.\nTherefore, LGS’ procedures required by § 192.12(b)(1) were inadequate. LGS must revise its\nprocedures to include a records retention period as outlined above.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in Compliance\nProceedings.\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\n1 API RP 1171 Sec. 11.2.1 requires, in part “[t]he operator shall develop and follow procedures for the construction,\noperation, and maintenance of natural gas storage wells and reservoirs to establish and maintain functional\nintegrity.”\n\n\n\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that LGS maintain documentation of the safety improvement costs\nassociated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures)\nand submit the total to Robert Burrough, Director, Eastern Region, Pipeline and Hazardous\nMaterials Safety Administration. In correspondence concerning this matter, please refer to CPF 1-\n2023-041-NOA and, for each document you submit, please provide a copy in electronic format\nwhenever possible.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings","truncated":false,"body_characters":8030}