{"operation":"document","citation":"CPF 12023064WL","title":"CITIZENS GAS & COKE UTILITY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-11-14","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023064wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023064wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023064wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12023064WL","body":"Warning Letter involving CITIZENS GAS & COKE UTILITY. PHMSA's enforcement data identifies the cited regulation as 192.12(d)(4). The case was opened on 2023-11-14 and is reported as closed as of 2023-11-14. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12023064WL_Warning Letter_11142023_(22-245538).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023064WL/12023064WL_Warning%20Letter_11142023_(22-245538).pdf\n\n12023064WL_Warning Letter_11142023_(22-245538)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023064WL/12023064WL_Warning%20Letter_11142023_(22-245538)_text.pdf\n\n12023064WL_Warning Letter_11142023_(22-245538)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nNovember 14, 2023\nMr. Christopher Braun\nVice President Energy Operations\nCitizens Gas & Coke Utility\n2150 Dr. ML King Jr St.\nIndianapolis, Indiana 46202\nCPF 1-2023-064-WL\nDear Mr. Braun:\nFrom June 27, 2022 through June 30, 2022, inspectors from the Indiana Department of Natural\nResources (IDNR) acting as a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nCitizen’s Gas & Coke Utility’s (Citizens) Howesville, Mineral City, and Simpson underground\nnatural gas storage facilities in Greene County, Indiana.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation 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\nUNGSF operator must establish and follow written procedures to carry\nout its integrity management program under API RP 1171\n(incorporated by reference, see § 192.7), section 8 (\"Risk Management\nfor Gas Storage Operations\"), and this paragraph (d). The operator\nmust also maintain, for the useful life of the UNGSF, records that\ndemonstrate compliance with the requirements of this paragraph (d).\nThis includes records developed and used in support of any\n\n\n\nidentification, calculation, amendment, modification, justification,\ndeviation, and determination made, and any action taken to implement\nand evaluate any integrity management program element.\nCitizens failed to follow its written procedures for carrying out its integrity management program\nunder API RP 1171 Section 8. Specifically, Citizens failed to follow its integrity management plan,\nSection 4.8, by failing to conduct an evaluation of the threats and hazards identified in the risk\nassessment in 2020 for their UNGSFs.\nAPI RP-1171 Section 8.2 Risk Management states:\nThe operator shall develop, implement, and document a program to manage risk\nthat includes data collection, identification of potential threats and hazards to the\nstorage operation, risk analysis including estimation of the likelihood of\noccurrence of events related to each threat, the likelihood of occurrence and\npotential severity of the consequences of such events, and the preventive,\nmitigative, and monitoring processes to reduce the likelihood of occurrence\nand/or the likelihood and severity of consequences, and a periodic review and\nreassessment of the processes.\nIn its integrity management plan, Section 4.8, Citizens stated that an evaluation of the threats and\nhazards identified in the risk assessment was to be performed once each calendar year not to exceed\n15 months.\n“Section 4.8 – Periodic Review and Reassessment\n[49 CFR Part 192.12(d), API RP 1171 section 8.5]\nThe iterative review and periodic reassessment cycle presented in the SMS (Section 3.0) shall be\nutilized to evaluate the Threats and Hazards identified in the RA, and to monitor the\neffectiveness of the corresponding P&M measures. A reassessment will be performed at least\nonce each calendar year, not to exceed 15 months. Note: The initial Implementation Plan and\nGeneral Timeframe (Section 8) will likely change over time as new data is collected and\nevaluated during this ongoing risk-analysis process.”\nDuring the inspection, the Indiana DNR inspector requested records demonstrating that Citizens\nhad performed these annual reassessments. Citizens was unable to provide records demonstrating\nthat a risk evaluation of their storage fields was completed in 2020.\nTherefore, Citizens failed to implement their program to manage risk by failing to conduct a\nperiodic review and reassessment, in accordance with § 192.12(d)(4) and API RP1171, Section\n8.2.\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\n\n\n\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\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 item 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 1-2023-064-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":7336}