{"operation":"document","citation":"CPF 12023065WL","title":"EGYPTIAN GAS STORAGE CORP — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2023-12-21","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023065wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023065wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12023065wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12023065WL","body":"Warning Letter involving EGYPTIAN GAS STORAGE CORP. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2023-12-21 and is reported as closed as of 2023-12-21. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12023065WL_Warning Letter_12212023_(22-236177).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023065WL/12023065WL_Warning%20Letter_12212023_(22-236177).pdf\n\n12023065WL_Warning Letter_12212023_(22-236177)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12023065WL/12023065WL_Warning%20Letter_12212023_(22-236177)_text.pdf\n\n12023065WL_Warning Letter_12212023_(22-236177)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: robinson@sigecom.net\nDecember 21, 2023\nMr. Charles Robinson\nPresident\nEgyptian Gas Storage Corp\n1410 North Cullen Avenue\nEvansville, Indiana 47715\nCPF 1-2023-065-WL\nDear Mr. Robinson:\nFrom October 4, 2022 to October 6, 2022, inspectors from the Illinois Department of Natural\nResources 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.), conducted\nan on-site inspection of Egyptian Gas Storage Corp’s (EGSC) Mills underground natural gas\nstorage facility in Gallatin County, Illinois.\nAs a result of the inspection, it is alleged that you have committed probable violations 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.\n\n\n\nEGSC failed to meet the provisions of API RP 1171, Section 11. Specifically, EGSC failed to\ntrain operating personnel when changes were made to its operating procedures pursuant to API RP\n1171, Section 11.12.2.\nAPI 1171, Section 11.12.2 requires in part that \"Whenever changes are made to the operating\nprocedures specified in 11.3, operating personnel shall be notified and trained as necessary in the\nchanges and training documented before operating storage wells and reservoirs.\"\nDuring the inspection, EGSC was unable to provide documentation demonstrating that operating\npersonnel were trained when an applicable change was made to the operating procedures.\nTherefore, EGSC failed to comply with § 192.12(b)(2) by failing to meet the\nprovisions of API RP 1171, Section 11.\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.\nEGSC failed to meet the provisions of API RP 1171, Section 8. Specifically, EGSC failed to\nperform a review on either the risk assessment for the ranked wells or the resulting prioritization\nto determine whether they represented the facility as required by API RP 1171, Section 8.5.2.\nAPI RP 1171, Section 8.5.2 requires in part that \"The operator shall review the results of the risk\nassessment to determine whether the risk assessment, resulting prioritization, or ranking represents\nits facilities and characterizes the risks.\"\nDuring the inspection, EGSC was unable to provide a risk ranking analysis for the wells.\nTherefore, EGSC failed to comply with § 192.12(b)(2) by failing to meet the provisions of API\nRP 1171, Section 8.\n3. § 192.12 Underground natural gas storage facilities.\n(a) ….\n(1) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n\n\n\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.\nEGSC failed to meet the provisions of API RP 1171, Section 11. Specifically, EGSC’s Re-Work\nPlan for Spence #1 failed to address the safety and health of workers and the public pursuant to\nAPI RP 1171, Section 6.8.1.\nAPI RP 1171, Section 11.2.1 requires in part that \"The operator shall develop and follow\nprocedures for the construction, operation, and maintenance of natural gas storage wells and\nreservoirs to establish and maintain functional integrity.\" API 1171, Section 6.8.1 requires in part\nthat \"Safeguards to the environment, safety, and health of workers and the public shall be\nincorporated into well design and well work activities.\"\nDuring the inspection EGSC provided a document titled Well Re-Work Plan for Spence #1. The\ndocumentation did not include safeguards to the safety and health of workers and the public.\nTherefore, EGSC failed to comply with § 192.12 (b)(1) by failing to meet the provisions of API\nRP 1171, Section 11.\n4. § 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.\nEGCS failed to meet the provisions of API RP 1171, Section 11. Specifically, EGSC was unable\nto demonstrate that storage personnel communicated guidelines for maintaining reservoir and well\nfunctional integrity pursuant to API RP 1171, Section 11.7.1.\nAPI RP 1171, Section 11.7.1 states “Storage personnel shall be responsible for preparing and\ncommunicating guidelines for maintaining reservoir and well functional integrity.”\nDuring the inspection, EGSC was unable to demonstrate that there were communications between\nstorage personnel and the control room for maintaining reservoir and well functional integrity\nduring normal, abnormal, and emergency conditions.\n\n\n\nTherefore, EGSC failed to comply with § 192.12(b)(2) by not meeting the provisions of API RP\n1171 Section 11.\n5. § 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.\nEGSC failed to meet the provisions of API RP 1171, Section 10. Specifically, EGSC failed to\ntrain storage facility staff in the use of the emergency preparedness/response plan pursuant to\nAPI RP 1171, Section 10.6.2.\nAPI RP 1171, Section 10.6.2 requires in part that \"Storage operations and applicable staff shall\nreceive training in the use of the emergency preparedness/response plan.\"\nDuring the inspection, records of training storage operations and applicable staff in the use of\nEGSC’s emergency response plan were requested. EGSC was unable to provide any\ndocumentation demonstrating that it had completed training.\nTherefore, EGSC failed to comply with § 192.12(b)(2) by not meeting the provisions of API RP\n1171, Section 10.\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\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.\n\n\n\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\nEgyptian Gas Storage Corp 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 1-2023-065-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,\nP.P.\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":10876}