{"operation":"document","citation":"CPF 12024043WL","title":"GRAMA RIDGE STORAGE AND TRANSPORTATION, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-04-23","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024043wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024043wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024043wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024043WL","body":"Warning Letter involving GRAMA RIDGE STORAGE AND TRANSPORTATION, LLC. PHMSA's enforcement data identifies the cited regulation as 192.12(b)(2). The case was opened on 2024-04-23 and is reported as closed as of 2024-04-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024043WL_Warning Letter_04232024_(23-264002).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024043WL/12024043WL_Warning%20Letter_04232024_(23-264002).pdf\n\n12024043WL_Warning Letter_04232024_(23-264002)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024043WL/12024043WL_Warning%20Letter_04232024_(23-264002)_text.pdf\n\n12024043WL_Warning Letter_04232024_(23-264002)_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nApril 23, 2024\nMr. Paul Bieniawski\nChief Executive Officer\nGrama Ridge Storage and Transportation LLC\n10375 Richmond Avenue Suite 1900\nHouston, TX, 77042\nCPF 1-2024-043-WL\nDear Mr. Bieniawski:\nFrom December, 4th, 2023 to December 7th, 2023, and on February 20th, 2024 a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601\nof 49 United States Code (U.S.C.) inspected Grama Ridge Storage & Transportation, LLC’s\n(Grama Ridge) Grama Ridge Storage Facility in Eunice, New Mexico.\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(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\nGrama Ridge failed to meet the provisions of API RP 1171, Section 8. Specifically, Grama Ridge\nfailed to use all available information to determine its facilities susceptibility to threat and hazard-\nrelated events pursuant to API RP 1171, Section 8.3.2.\nSection 8.3.2 states in part that “The operator shall use available information such as performance\ndata collected through the field history, operations and maintenance (O&M) activities,\ngeotechnical data such as well logs, engineering data, and completion reports to determine\nsusceptibility to threat and hazard-related events and to assess threat and hazard interaction.”\nDuring the inspection, PHMSA reviewed Gramma Ridge’s risk matrix and found that there were\nvariables that were marked as unknown, such as master valve age and previous logs such as CBL’s.\nUpon reviewing records, it was found that the unknown data entries in the risk matrix were\navailable in paper records, but the data had not been reviewed and entered into the risk matrix.\nThe risk matrix with incomplete data assumed the worst-case scenario scoring for that specific\ndata entry. As all the wells had unknown variables at the time of review, this led to the same score\nbeing applied to all the wells. Thus, the risk matrix may be giving false risk scores due to the\nincomplete data review and incorporation.\nTherefore, Grama Ridge failed to meet the provisions of API RP 1171, Section 8.3.2.\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 item identified in this letter. Failure to do so will result in\nGrama Ridge Storage & Transportation, LLC 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 1-2024-043-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\n\n\n\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":6240}