{"operation":"document","citation":"CPF 12024021WL","title":"NORTHERN NATURAL GAS CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-03-26","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2), 192.12(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024021wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024021wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024021wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024021WL","body":"Warning Letter involving NORTHERN NATURAL GAS CO. PHMSA's enforcement data identifies the cited regulations as 192.12(b)(2),  192.12(c). The case was opened on 2024-03-26 and is reported as closed as of 2024-03-26. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024021WL_Operator Response to Notice_04262024_(23-263986).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024021WL/12024021WL_Operator%20Response%20to%20Notice_04262024_(23-263986).pdf\n\n12024021WL_Warning Letter_03262024_(23-263986).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024021WL/12024021WL_Warning%20Letter_03262024_(23-263986).pdf\n\n12024021WL_Warning Letter_03262024_(23-263986)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024021WL/12024021WL_Warning%20Letter_03262024_(23-263986)_text.pdf\n\n12024021WL_Warning Letter_03262024_(23-263986)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nMarch 26, 2024\nMr. Mark Hewitt\nPresident and Chief Executive Officer\nNorthern Natural Gas Co\n1111 South 103rd Street\nOmaha, Nebraska 68124\nCPF 1-2024-021-WL\nDear Mr. Hewitt:\nFrom August 29 to August 31, and September 19 to September 21, 2023 of the on-site inspection,\nrepresentatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant\nto Chapter 601 of 49 United States Code (U.S.C.) inspected Northern Natural Gas Co’s (NNG)\nRedfield Underground Natural Gas Storage Facility in Dallas county, Iowa.\nAs a result of the inspection, it is alleged that you have committed probable violation 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\nNNG failed to meet the provisions of API RP 1171, Section 9. Specifically, NNG failed to monitor\nfor the presence of annular gas by measuring the annular pressure or annular gas flow, in\naccordance with API RP 1171, Section 9.3.2 (Section 9.3.2).\nSection 9.3.2 states in part that “The operator shall monitor for presence of annular gas by\nmeasuring and recording annular pressure and/or annular gas flow.”\nDuring the inspection, NNG reported that there are 36 wells not being monitored for the presence\nof annular gas by measuring and recording pressure and/or gas flow within the annulus. These\nwells do not have annulus monitoring ports on the wellhead assembly thereby making the annulus\ninaccessible. NNG stated construction work on the wellhead assemblies would be started in\ncalendar year 2024 to have annulus monitoring ports installed in all 36 wells within the next 3\nyears.\nTherefore, NNG failed to meet the provisions of Section 9.3.2.\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.\nNNG failed to meet the provisions of API RP1171, Section 11. Specifically, NNG failed to\nincorporate site security safeguards pursuant to API RP 1171, Section 11.9.1 into its operations by\nfailing to record site security status of well sites.\nSection 11.9.1 states in part “[t]he operator shall develop programs incorporating safeguards to the\nenvironment, site security, and safety and health into storage design, construction, and operations.”\nDuring the inspection, PHMSA requested records of documentation that the site security was\nevaluated for each of the well sites. NNG was not able to provide records pertaining to this and\ndid not have a requirement in its procedure for doing so. This requirement was added to NNG’s\nprocedures after the inspection on 12/13/2023, within its Underground Storage Annulus Pressure\nMonitoring Rev 3 (190.325), section 5.4. Documentation of site security inspection at the wellhead\nsite was added to Monthly Annulus Pressures – Monthly Leak Surveys form as of October 2023.\nRecords prior to October 2023 do not have site security evaluation for each of the well sites.\nTherefore, NNG failed to meet the provisions of Section 11.9.1.\n3. § 192.12 Underground natural gas storage facilities.\n(a) . . .\n\n\n\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.\nNNG failed to meet the provisions of API RP1171, Section 8. Specifically, NNG failed to include\ncertain potential threats and hazards impacting the four reservoirs in its risk management model in\naccordance with the API RP 1171, Section 8.4.2 (Section 8.4.2).\nSection 8.4.2 states in part:\nThe operator shall evaluate the potential threats and hazards impacting storage wells and\nreservoirs.\nDuring the inspection, it was noted that records did not demonstrate potential threats and hazards\nimpacting the four reservoirs were adequately evaluated. Specifically, no risk assessments were\ndone of the reservoirs with any considerations from API RP 1171 Table 1 (Potential Threats and\nConsequences) such as geologic uncertainty, reservoir fluid compatibility issues, and inventory\nanalysis. These was no reservoir threats and hazards considerations incorporated into the risk\nmanagement model.\nTherefore, NNG failed to meet the provisions of Section 8.4.2.\n4. § 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.\nNNG failed to follow its manual of written procedures for conducting activities under §\n192.12(b)(2). Specifically, NNG failed to follow its Manual of Emergency Operations (10.105)\nregarding performing annual training activities for its storage personnel pursuant to API RP 1171,\nSection 10.6.2.\n\n\n\nAPI RP 1171, Section 10.6.2 states in part that “Storage operations and applicable staff shall\nreceive training in the use of the emergency preparedness/response plan.”\nNNG’s Procedure, Manual for Emergency Operations (10.105), section 6.3 stated:\nIn conjunction with the annual training, employees will review and confirm the\nemergency response booklet contents, maintained in hardcopy form in their\nemergency manuals, are current with the “guide material” documentation and forms\nfor operating procedure 10.102, Emergencies.\nNNG’s Procedure, Manual for Emergency Operations (10.105), section 8.5 required NNG to\nmaintain its training records for three years.\nDuring the inspection, PHMSA reviewed NNG’s training attendance records from Emergency\nManual Reviews. For training conducted on March 4, 2021, the record indicates that 6 employees\nmissed the training and do not appear to have attended a makeup session. For training conducted\non March 18, 2022, the record indicates that 10 employees missed the training and do not appear\nto have attended a makeup session.\nTherefore, NNG failed to follow its manual of written procedures as required by § 192.12(c).\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a related\nseries of violations. For violation occurring on or after January 6, 2023 and before December 28,\n2023, the maximum penalty may not exceed $257,664 per violation per day the violation persists,\nup to a maximum of $2,576,627 for a related series of violations. For violation occurring on or\nafter March 21, 2022 and before January 6, 2023, the maximum penalty may not exceed $239,142\nper violation per day the violation persists, up to a maximum of $2,391,142 for a related series of\nviolations. For violation occurring on or after May 3, 2021 and before March 21, 2022, the\nmaximum penalty may not exceed $225,134 per violation per day the violation persists, up to a\nmaximum of $2,251,334 for a related series of violations. For violation occurring on or after\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679.\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\nNorthern Natural Gas Co 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 1-2024-021-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\n\n\n\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":11357}