{"operation":"document","citation":"CPF 12024024WL","title":"PUBLIC SERVICE CO OF COLORADO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-04-04","effective_on":null,"summary":"CLOSED warning letter citing 191.22(c)(1)(iv), 192.12(b)(2), 192.12(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024024wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024024wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024024wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024024WL","body":"Warning Letter involving PUBLIC SERVICE CO OF COLORADO. PHMSA's enforcement data identifies the cited regulations as 191.22(c)(1)(iv),  192.12(b)(2),  192.12(c). The case was opened on 2024-04-04 and is reported as closed as of 2024-04-04. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024024WL_Operator Response to Notice_05022024_(23-264011).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024024WL/12024024WL_Operator%20Response%20to%20Notice_05022024_(23-264011).pdf\n\n12024024WL_Warning Letter_04042024_(23-264011).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024024WL/12024024WL_Warning%20Letter_04042024_(23-264011).pdf\n\n12024024WL_Warning Letter_04042024_(23-264011)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024024WL/12024024WL_Warning%20Letter_04042024_(23-264011)_text.pdf\n\n12024024WL_Warning Letter_04042024_(23-264011)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nApril 4, 2024\nMs. Lauren Gilliland\nVice President Gas\nPublic Service Co of Colorado\n1123 W. 3rd Avenue\nDenver, Colorado 80223\nCPF 1-2024-024-WL\nDear Ms. Gilliland:\nFrom August 22, 2023 to August 24, 2023 a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.)\ninspected Public Service Co of Colorado’s (PSCC) Asbury Creek Storage and Fruita Storage\nFacilities in Mesa County, Colorado.\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. §191.22 - National Registry of Pipeline and LNG operators.\n(a) …\n(c) Changes. Each operator of a gas pipeline, gas pipeline facility,\nUNGSF, LNG plant, or LNG facility must notify PHMSA electronically\nthrough the National Registry of Operators at\nhttps://portal.phmsa.dot.gov of certain events.\n(1) An operator must notify PHMSA of any of the following events\nnot later than 60 days before the event occurs:\n(i) …\n(iv) Maintenance of a UNGSF that involves the plugging or\nabandonment of a well, or that requires a workover rig and costs\n$200,000 or more for an individual well, including its wellhead. If 60-\ndays’ notice is not feasible due to an emergency, an operator must\n\n\n\npromptly respond to the emergency and notify PHMSA as soon as\npracticable;\nPSCC failed to submit notifications for the plugging and abandonment of Asbury 4 and Asbury 5\nin 2020 in accordance with § 191.22(c)(1)(iv).\nDuring the inspection, PHMSA reviewed notifications submitted by PSCC and found that\nnotifications for the plugging and abandonment of Asbury 4 and Asbury 5 were not submitted to\nPHMSA. Asbury 4 was plugged and abandoned on July 2, 2020 and Asbury 5 was plugged and\nabandoned on July 8, 2020.\nTherefore, PSCC failed to meet the requirements of § 191.22(c)(1)(iv).\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\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.\nPSCC failed to meet the provisions of API RP 1171, Section 9. Specifically, PSCC did not have\ninventory assessment reports available for its Asbury and Fruita fields nor did it have any\nassessment information for its Fruita field in accordance with API RP 1171, Section 9.8.2 (Section\n9.8.2).\nSection 9.8.2 states in part, “The operator shall maintain records of storage inventory assessments\nfor the life of the facility.”\nDuring the inspection, PHMSA requested to review the data gathered from PSCC’s bi-annual shut-\nin tests for bottom hole pressures and the resulting plots to determine possible migration issues,\nbut PSCC did not have an assessment report available for its Asbury and Fruita fields. Also, PSCC\ndid not have any assessment information for its Fruita field, which has not been utilized since\n2020.\n3. Therefore, PSCC failed to meet the provisions of Section 9.8.2 as required by § 192.12(b)(2).\n§ 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\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\n\n\n\nparagraph (c) of this section, by January 18, 2018, and must meet all\nprovisions of paragraph (d) of this section by March 13, 2021.\nPSCC failed to meet the provisions of API RP 1171, Section 9. Specifically, PSCC failed to test\nthe operation of the master valves and wellhead isolation valves at least annually for proper\nfunction and ability to isolate the well in accordance with API RP 1171, Section 9.3.2 (Section\n9.3.2).\nSection 9.3.2 states in part “The operator shall test the operation of the master valve and wellhead\npipeline isolation valve at least annually for proper function and ability to isolate the well.”\nDuring the inspection, PSCC did not have records available of the testing of the operation of the\nmaster valves and wellhead pipeline isolation valves at least annually for proper function and\nability to isolate the well.\nTherefore, PSCC failed to meet the provisions of Section 9.3.2 as required by § 192.12(b)(2).\n4. § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\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.\nPSCC failed to meet the provisions of API RP 1171, Section 8. Specifically, PSCC had not\nincluded interactive threats into its risk model in accordance with API RP 1171, Section 8.3.2\n(Section 8.3.2).\nSection 8.3.2 states in part:\nThe operator shall use available information such as performance data collected\nthrough the field history, operations and maintenance (O&M) activities,\ngeotechnical data such as well logs, engineering data, and completion reports to\ndetermine susceptibility to threat and hazard-related events and to assess threat and\nhazard interaction.\nDuring the inspection, PHMSA reviewed PSCC’s risk model and found that interactive threats had\nnot been incorporated into the model and assessed.\nTherefore, PSCC failed to meet the provisions of Section 8.3.2 as required by § 192.12(b)(2).\n5. § 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\n\n\n\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.\nPSCC failed to review and update its O&M manuals at intervals not to exceed 15 months, but at\nleast once each calendar year in accordance with § 192.12(c).\nDuring the inspection, PHMSA requested records demonstrating PSCC had reviewed and updated\nits O&M manuals during calendar years 2021 to 2023. PSCC did not have records available of\nreviews of its O&M manuals other than the General Work Plan and the Kill and Plug plan that\nwere included in the annual Storage Integrity Management Plan (SIMP) review done on December\n14, 2022.\nTherefore, PSCC failed to meet the requirements of § 192.12(c) regarding reviewing and updating\nits manuals of procedures.\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\nPublic Service Co of Colorado being subject to additional enforcement action.\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 1-2024-024-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":11203}