{"operation":"document","citation":"CPF 12024017NOA","title":"BLUEWATER GAS STORAGE, LLC — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-03-19","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(c), 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024017noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024017noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024017noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024017NOA","body":"Notice of Amendment involving BLUEWATER GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(4). The case was opened on 2024-03-19 and is reported as closed as of 2024-05-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024017NOA_Closure Letter_05012024_(23-263994).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024017NOA/12024017NOA_Closure%20Letter_05012024_(23-263994).pdf\n\n12024017NOA_Closure Letter_05012024_(23-263994)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024017NOA/12024017NOA_Closure%20Letter_05012024_(23-263994)_text.pdf\n\n12024017NOA_Notice of Amendment_03192024_(23-263994).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024017NOA/12024017NOA_Notice%20of%20Amendment_03192024_(23-263994).pdf\n\n12024017NOA_Notice of Amendment_03192024_(23-263994)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024017NOA/12024017NOA_Notice%20of%20Amendment_03192024_(23-263994)_text.pdf\n\n12024017NOA_Operator Response to Notice_04162024_(23-263994).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024017NOA/12024017NOA_Operator%20Response%20to%20Notice_04162024_(23-263994).pdf\n\n12024017NOA_Closure Letter_05012024_(23-263994)_text.pdf\n\nCPF 1-2024-017-NOA\nDear Mr. Hesselbach:\nOn July 11, 2023 through July 13, 2023, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of Bluewater Gas Storage, LLC's (Bluewater Gas\nStorage) procedures in St. Clair Co., Michigan. As a result of the inspection, Bluewater Gas\nStorage was issued a Notice of Amendment on March 19, 2024, which proposed amendment of\nyour procedures.\nBluewater Gas Storage submitted its amended procedures on April 16, 2024. My staff reviewed\nthe amended 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: andrew.hesselbach@wecenergygroup.com\nMay 1, 2024\nMr. Andy Hesselbach\nPresident and Chief Executive Officer\nBluewater Gas Storage, LLC\n231 W. Michigan Street, P468\nMilwaukee, Wisconsin 53203\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nCc: Jeff Westrick jeffrey.westrick@wecenergygroup.com\n\n12024017NOA_Notice of Amendment_03192024_(23-263994)_text.pdf\n\nNOTICE OF AMENDMENT\nOVERNIGHT EXPRESS DELIVERY\nMarch 19, 2024\nMr. Dan Krueger\nPresident and Chief Executive Officer\nBluewater Gas Storage, LLC\n231 W. Michigan Street, P468\nMilwaukee, Wisconsin 53203\nCPF 1-2024-017-NOA\nDear Mr. Krueger:\nFrom July 11, 2023 through July 13, 2023 of the on-site inspection, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United\nStates Code (U.S.C.) inspected Bluewater Gas Storage, LLC’s (Bluewater Gas Storage)\nprocedures for the Columbus 3 and Kimball 27 Underground Natural Gas Storage (UNGS)\nfacilities in St. Clair County, Michigan.\nAs a result of the inspection, PHMSA has identified the apparent inadequacies found within\nBluewater Gas Storage’s plans or procedures. The items inspected and the inadequacies are\ndescribed below:\n1. 49 CFR § 192.12 Underground natural gas storage facilities.\n(a) ….\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\n\n\n\nmust have written procedures in place before commencing\noperations or beginning an activity not yet implemented.\nBluewater Gas Storage’s written procedures for conducting operations and maintenance activities\nwere inadequate to ensure safe operation of a pipeline facility. Specifically, Bluewater Gas\nStorage’s OM608 Valves Manual did not include procedures outlining the replacement process for\nvalves pursuant to API 1171, Section 9.3.2.\nAPI 1171, Section 9.3.2 requires that “[t]he valves shall be maintained, repaired, or replaced in\naccordance with the operator’s valve maintenance program for isolation valves.”\nDuring the inspection, Bluewater Gas Storage’s OM608 Valves Manual was reviewed and\ndetermined to not address the method in which valves shall be replaced within their valve\nmaintenance program, such as a procedure specifying how valve replacements, or incidental\nrepairs to valves, are to be performed and recorded.\nTherefore, Bluewater Gas Storage’s OM608 Valves Manual was inadequate. Bluewater Gas\nStorage must revise its written procedures to address valve replacement within its valve\nmaintenance program.\n2. 49 CFR § 192.12 Underground natural gas storage facilities.\n(a) ….\n(c) Procedural manuals. Each operator of a UNGSF must prepare\nand follow for each facility one or more manuals of written procedures\nfor conducting operations, maintenance, and emergency preparedness\nand response activities under paragraphs (a) and (b) of this section.\nEach operator must keep records necessary to administer such\nprocedures and review and update these manuals at intervals not\nexceeding 15 months, but at least once each calendar year. Each\noperator must keep the appropriate parts of these manuals accessible\nat locations where UNGSF work is being performed. Each operator\nmust have written procedures in place before commencing operations\nor beginning an activity not yet implemented.\nBluewater Gas Storage’s written procedures for conducting operations and maintenance activities\nwere inadequate to ensure safe operation of a pipeline facility. Specifically, Bluewater Gas\nStorage’s procedure, Standard 222 - Well Integrity Inspection, failed to include sufficient detail\non the options for type and timing of the next mechanical integrity tests based on the results of\ninitial and prior mechanical integrity testing.\nAPI 1171, Section 9.3.1 requires that “[a]ctive well mechanical integrity evaluations shall include\ninitial and subsequent evaluations as determined using the risk assessment and the information\nderived from the initial evaluation.”\nDuring the inspection, Bluewater Gas Storage’s Standard 222 - Well Integrity Inspection was\nreviewed and found to lack adequate specificity and established criteria addressing the process for\n\n\n\ndetermining the frequency and the methods of subsequent mechanical integrity tests, which are to\nbe determined after review of initial and prior mechanical integrity testing.\nTherefore, Bluewater Gas Storage’s Standard 222 - Well Integrity Inspection was inadequate.\nBluewater Gas Storage must revise its Well Integrity Inspection to specify process for the next\nmechanical integrity test.\n3. 49 CFR § 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\nidentification, calculation, amendment, modification, justification,\ndeviation, and determination made, and any action taken to implement\nand evaluate any integrity management program element.\nBluewater Gas Storage’s written procedures for carrying out its integrity management program\nwere inadequate to ensure safe operation of a pipeline facility. Specifically, Bluewater Gas\nStorage’s written integrity management procedures failed to include a requirement or process for\nthe baseline risk assessments for all reservoirs and wells for each UNGSF to be completed in\naccordance with the timeframes and prioritization required by § 192.12(d)(2).\nSection 192.12(d)(2) requires that “[n]o later than March 13, 2024, each UNGSF operator must\ncomplete the baseline risk assessments of all reservoirs and caverns, and at least 40% of the\nbaseline risk assessments for each of its UNGSF wells (including wellhead assemblies), beginning\nwith the highest-risk wells, as identified by the risk analysis process. No later than March 13, 2027,\nan operator must complete baseline risk assessments on all its wells (including wellhead\nassemblies).” Section 192.12(d)(4) specifies, in part, that each UNGSF operator must establish\nand follow written procedures to carry out its integrity management program under this paragraph\n(d), to include the requirements addressing the relevant risk assessment deadlines and thresholds\ncited above.\nDuring the inspection, Bluewater Gas Storage’s Standard 222 - Well Integrity Inspection Standard\nwas reviewed and determined to not address the requirement that the baseline assessment for all\nreservoirs and 40% of the wells shall be completed by March 13, 2024 and 100% of the wells by\nMarch 13, 2027.\nTherefore, Bluewater Gas Storage’s Standard 222 - Well Integrity Inspection Standard was\ninadequate. Bluewater Gas Storage must revise its Well Integrity Inspection Standard to address\n\n\n\nrequiring baseline risk assessments for all reservoirs and wells by the dates specified above.\n4. 49 CFR § 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\nidentification, calculation, amendment, modification, justification,\ndeviation, and determination made, and any action taken to implement\nand evaluate any integrity management program element.\nBluewater Gas Storage’s written procedures for carrying out its integrity management program\nwere inadequate to ensure safe operation of a pipeline facility. Specifically, Bluewater Gas\nStorage’s procedure Standard 217 - Storage Risk Management Plan failed to require that the\ninterval for risk assessments for each reservoir, cavern, and well be determined using the results\nfrom earlier assessments and updated risk analyses pursuant to § 192.12(d)(3).\nSection 192.12(d)(3) requires that “[t]he operator must determine the appropriate interval for risk\nassessments under API RP 1171 (incorporated by reference, see § 192.7), subsection 8.7.1, and\nthis paragraph (d) for each reservoir, cavern, and well, using the results from earlier assessments\nand updated risk analyses. The re-assessment interval for each reservoir, cavern, and well must not\nexceed seven years from the date of the baseline assessment for each reservoir, cavern, and well.”\nDuring the inspection, Bluewater Gas Storage’s Standard 217 - Storage Risk Management Plan\nwas reviewed and found to require in Section 217.7.2 that a review and update to the risk\nassessment will take place at least every three years. Bluewater Gas Storage’s Standard 217 -\nStorage Risk Management Plan did not require that the appropriate interval for risk assessments\nbe defined using the results from earlier assessments and updated risk analyses, as is specified in\n§ 192.12(d)(3).\nTherefore, Bluewater Gas Storage’s Standard 217 - Storage Risk Management Plan was\ninadequate. Bluewater Gas Storage must revise its Storage Risk Management Plan to address the\ninadequacy 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 Enforcement\nProceedings.\n\n\n\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\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 Bluewater Gas Storage maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Robert Burrough, Director, Eastern Region, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please refer\nto CPF 1-2024-017-NOA and, for each document you submit, please provide a copy in electronic\nformat whenever 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":14866}