{"operation":"document","citation":"CPF 12024031WL","title":"PACIFIC GAS & ELECTRIC CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-04-09","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024031wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024031wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024031wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024031WL","body":"Warning Letter involving PACIFIC GAS & ELECTRIC CO. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2024-04-09 and is reported as closed as of 2024-04-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024031WL_Warning Letter_04092024_(23-265082).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024031WL/12024031WL_Warning%20Letter_04092024_(23-265082).pdf\n\n12024031WL_Warning Letter_04092024_(23-265082)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024031WL/12024031WL_Warning%20Letter_04092024_(23-265082)_text.pdf\n\n12024031WL_Warning Letter_04092024_(23-265082)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nApril 9, 2024\nMs. Patti Poppe\nPresident and Chief Executive Officer\nPacific Gas & Electric Co\n300 Lakeside Drive, 5th Floor\nOakland, California 94612\nCPF 1-2024-031-WL\nDear Ms. Poppe:\nFrom June 5, 2023 to June 9, 2023, an inspector from the California Geologic Energy Management\nDivision (CalGEM), acting as an agent for the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nPacific Gas & Electric Co’s (PGE) procedures and records for Los Medanos, McDonald Island\nand Pleasant Creek Underground Natural Gas Storage Facilities (UNGSF) in Contra Costa, San\nJoaquin and Yolo counties, California, respectively.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. § 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.\nPG&E failed to follow its manual of written procedures for conducting activities under\n\n\n\n§ 192.12(b)(2). Specifically, PG&E failed to follow its Gas Operations Management of Change\n(MOC), Section 4.1 (Section 4.1) regarding revising its procedures before a change was\nimplemented and implementing a change after revising its procedure.\nSection 4 stated in part:\nAn MOC system consists of the following steps, as applicable (see Figure A-1 in Appendix A):\n1. Recognition of a need for change.\n2. Evaluation of the hazards and risks associated with the change.\n3. Review and approval that allows the change to be made.\n4. Communication plan to explain the change to all affected stakeholders.\n5. Update of records, including procedures, maps, drawings, guidance documents, and\nwork permits.\n6. Plan to train and qualify affected users, as necessary, before implementing the change.\n7. Operational readiness check before startup or implementation, including time\nlimitations.\n8. Formal implementation of the change in the system.\n9. Effectiveness review of the change.\n10. Creation of a record of all MOC documentation (as-builts, training records,\ncompleted\nDuring the inspection, PHMSA reviewed PG&E’s MOC documents TC-07N IFC Program Rev 1\n-RDMO 20230503, TC-07N_RDMO MOC Form_20230503, lM-07C Type 1 IFC Program Rev\n1_08222022, lM-7C Fishing Operations MOC Form_05262023, 04-013-20130-00_Rework\nHistory lM-7C_11-08-2022, and Steps 22-24_lM-7C Type 1 IFC Program Rev 1 2022-08-22. The\nrecords demonstrated that MOC form lM-7C Fishing Operations MOC Form_05262023 was\ninitiated on August 22, 2022, while Steps 22-24_lM-7C Type 1 IFC Program Rev 1 2022-08-22\ndemonstrate that the fishing operation began on August 21, 2022. Thus, PG&E failed to initiate its\nMOC process pursuant to Section 4 prior to implementing a change.\nIn addition, PG&E’s procedure TC-07N IFC Program Rev 1 -RDMO 20230503 did not reflect the\nchanges detailed on MOC form TC-07N_RDMO MOC Form_20230503 MOC. Thus, PG&E\nfailed to formally implement a change to its procedures pursuant to step 8 of Section 4.\nTherefore, PG&E 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\n\n\n\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\nPacific Gas & Electric 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 1-2024-031-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":7093}