# SALTVILLE GAS STORAGE COMPANY, L.L.C. — Warning Letter

- **operation:** document
- **citation:** CPF 12024009WL
- **title:** SALTVILLE GAS STORAGE COMPANY, L.L.C. — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2024-02-15
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 192.12(b)(1).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-12024009wl.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-12024009wl.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-12024009wl
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/12024009WL
**body:**

Warning Letter involving SALTVILLE GAS STORAGE COMPANY, L.L.C.. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(1). The case was opened on 2024-02-15 and is reported as closed as of 2024-02-15. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

12024009WL_Warning Letter_02152024_(23-264074).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024009WL/12024009WL_Warning%20Letter_02152024_(23-264074).pdf

12024009WL_Warning Letter_02152024_(23-264074)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024009WL/12024009WL_Warning%20Letter_02152024_(23-264074)_text.pdf

12024009WL_Warning Letter_02152024_(23-264074)_text.pdf

WARNING LETTER
OVERNIGHT EXPRESS DELIVERY
February 15, 2024
Ms. Cynthia Hansen
President and Chief Executive Officer
Saltville Gas Storage, LLC
915 North Eldridge Parkway
Houston, Texas 77079
CPF 1-2024-009-WL
Dear Ms. Hansen:
On August 1, 2023, and August 3, 2023, representatives of the Pipeline and Hazardous Materials
Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)
inspected Saltville Gas Storage, LLC’s (Saltville) Early Grove Underground Natural Gas Storage
Facility in Washington County, Virginia.
As a result of the inspection, it is alleged that you have committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and
the probable violation is:
1. § 192.12 Underground natural gas storage facilities.
(a) …
(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.
(1) Each UNGSF that uses a depleted hydrocarbon reservoir or an
aquifer reservoir for natural gas storage and was constructed after July
18, 2017, must meet all provisions of API RP 1171 (incorporated by
reference, see § 192.7), and paragraphs (c) and (d) of this section, prior
to commencing operations.
Saltville failed to meet the provisions of API RP 1171, Section 6. Specifically, Saltville did not
maintain records indicating that surface casing was stored, transported, lifted and installed as
specified by the manufacturer and in accordance with API 5C1 and API RP 1171, Section 6.3.6
(Section 6.3.6) and as required to be maintained by API RP 1171, Section 6.11.1 (Section 6.11.1).



API RP 1171, Section 6.3.6 states in part that “Casing shall be stored, transported, lifted and
installed as specified by the manufacturer and in accordance with API 5Cl.” Additionally, Section
6.11.1 states in part:
Records of well completion (as-built), well construction and well work activities
shall be
maintained for the life of the facility. These records shall include, as applicable and
available, the items listed below as referenced in each subsection.
…
6.3 Well Casing
…
- Design evaluations.
During the inspection, Saltville was not able to provide records to verify that surface casing was
stored, transported, lifted and installed as specified by the manufacturer and in accordance with
API 5C1 for casings used in wells EG-1 and EG-2 that were drilled in 2018.
Therefore, Saltville failed to meet the provisions of API RP 1171, Section 6.11.1.
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 item identified in this letter. Failure to do so will result in
Saltville Gas Storage, LLC 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 1-2024-009-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:** 5865
