{"operation":"document","citation":"CPF 12024048WL","title":"SPIRE MISSOURI INC. EAST — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-06-14","effective_on":null,"summary":"CLOSED warning letter citing 191.25(a), 192.12(b)(1), 192.12(b)(2), 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024048wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024048wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12024048wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12024048WL","body":"Warning Letter involving SPIRE MISSOURI INC. EAST. PHMSA's enforcement data identifies the cited regulations as 191.25(a),  192.12(b)(1),  192.12(b)(2),  192.12(d)(4). The case was opened on 2024-06-14 and is reported as closed as of 2024-06-14. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12024048WL_Warning Letter_06142024_(23-264005).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024048WL/12024048WL_Warning%20Letter_06142024_(23-264005).pdf\n\n12024048WL_Warning Letter_06142024_(23-264005)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12024048WL/12024048WL_Warning%20Letter_06142024_(23-264005)_text.pdf\n\n12024048WL_Warning Letter_06142024_(23-264005)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: scott.carter@spireenergy.com\nJune 14, 2024\nMr. Scott Carter\nPresident and Chief Executive Officer\nSpire Missouri Inc. East\n700 Market Street\nSaint Louis, Missouri 63101\nCPF 1-2024-048-WL\nDear Mr. Carter:\nFrom June 26 to 30, 2023 of the onsite inspection, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\n(U.S.C.) inspected Spire Missouri Inc. East’s (Spire) Florissant Dome Underground Natural Gas\nStorage Facility in the County of Saint Louis, Missouri.\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. § 191.25 Filing safety-related condition reports.\n(a) Each report of a safety-related condition under§ 191.23(a)(l)\nthrough (9) must be filed (received by the Associate Administrator) in\nwriting within 5 working days (not including Saturday, Sunday, or\nFederal holidays) after the day a representative of an operator first\ndetermines that the condition exists, but not later than 10 working days\nafter the day a representative of an operator discovers the condition.\nSeparate conditions may be described in a single report if they are\nclosely related. Reporting methods and report requirements are\ndescribed in paragraph (c) of this section.\nSpire failed to file a safety related condition (SRC) report within the reporting timeframe\nrequirements of § 191.25(a). Specifically, Spire failed to file a report within 5 working days after\n\n\n\nthe day a representative first determined that the conditions existed, but not later than 10 working\ndays after the day a representative of Spire discovered the condition.\nDuring the inspection, PHMSA reviewed records for downhole casing inspection logs. Based on\nintegrity assessment data provided by Baker Hughes for Siemsen #1 well, Spire discovered a\ncondition on December 8, 2020 in which the magnetic flux leakage casing inspection log indicated\nwall loss exceeding 80% in the top joint of the casing, which resulted in reduction of the maximum\nallowable operating pressure (MAOP) to 0 psig. This meets the safety related condition\nrequirement of § 191.23(a)(2). A bridge plug isolating the defect from casing perforation was\ninstalled on July 21, 2023, over 2 years later. Spire filed the Safety Related Condition Report on\nJuly 24, 2023. Spire did not isolate the well, nor did it report the safety related condition within 10\nworking days of discovery.\nTherefore, Spire failed to report a safety related condition in accordance with the reporting\nrequirements of § 191.25(a).\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n(1) Each UNGSF that uses a depleted hydrocarbon reservoir or an\naquifer reservoir for natural gas storage and was constructed after July\n18, 2017, must meet all provisions of API RP 1171 (incorporated by\nreference, see § 192.7), and paragraphs (c) and (d) of this section, prior\nto commencing operations.\nSpire failed to meet the provisions of API RP 1171, Section 6. Specifically, Spire failed to\nmaintain records of its actions during plugging and abandonment of wells pursuant to API RP\n1171 Sections 6.7.1, 6.7.2, and 6.8.1, as required by API RP 1171 Sections 6.11.1 and 6.11.2.\nDuring the inspection, PHMSA reviewed records of Spire’s plugging and abandonment of wells.\nAlthough Spire had procedures requiring the isolation of ground water and other zones pursuant\nto API RP 1171 Sections 6.7.1 and 6.7.2 requirements, Spire could not provide any records\nshowing that this was achieved during the well workover.\nIn addition, PHMSA requested records showing that Spire conducted safety review meetings at all\ntheir well work activities pursuant to its procedures developed for compliance with API RP 1171,\nSection 6.8.1. Spire could not provide any records demonstrating that safety reviews were\nconducted at all well work operations.\nTherefore, Spire failed to meet the provisions of API RP 1171, Section 6 by failing to maintain\nrecords of its actions for isolating groundwater and other zones during well plugging operations\nand conducting safety reviews pursuant to API RP 1171 Sections 6.7.1, 6.7.2, and 6.8.1, as\nrequired by API RP 1171, Sections 6.11.1 and 6.11.2.\n3. § 192.12 Underground natural gas storage facilities.\n(a) …\n\n\n\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.\nSpire failed to meet the provisions of API RP 1171, Section 8. Specifically, Spire failed to use\navailable information to assess threat and hazard interaction in accordance with API RP 1171,\nSection 8.3.2 (Section 8.3.2).\nSection 8.3.2 states:\nThe operator shall use available information such as performance data collected through the\nfield history, operations and maintenance (O&M) activities, geotechnical data such as well\nlogs, engineering data, and completion reports to determine susceptibility to threat and hazard-\nrelated events and to assess threat and hazard interaction.\nDuring the inspection, PHMSA reviewed Spire’s risk assessment and found that Spire did not\ninclude threat and hazard interaction in their risk model.\nTherefore, Spire failed to assess threat and hazards interaction in accordance with the requirements\nof Section 8.3.2.\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.\nSpire failed to meet the provisions of API RP 1171, Section 8. Specifically, Spire failed to include\n29 wells from the Trenton Formation in their risk model and failed to evaluate their plugged and\nabandoned wells in its risk model, pursuant to API RP 1171, Section 8.4.2 (Section 8.4.2).\nSection 8.4.2 requires operators to evaluate the potential threats and hazards impacting its storage\nwells and reservoirs.\nDuring the inspection, PHMSA reviewed records of Spire’s risk assessment and determined that\n29 wells in the Trenton Formation and an unknown number of plugged and abandoned wells that\npenetrate the storage horizons were not included in their risk model. The Trenton Formation is a\nproducing horizon above the storage formation, containing storage gas.\n\n\n\nTherefore, Spire failed to evaluate the potential threats and hazards impacting all of its storage\nwells and reservoirs in accordance with the requirements of Section 8.4.2.\n5. § 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.\nSpire failed to maintain records demonstrating compliance with § 192.12(d) as required by\n§ 192.12(d)(4). Specifically, Spire failed to maintain records of its risk assessment review\nmeetings in 2021 and 2022 that are required pursuant to API RP 1171, Section 8.5.2 (Section\n8.5.2).\nSection 8.5.2 states in part that “[t]he operator shall review the results of the risk assessment to\ndetermine whether the risk assessment, resulting prioritization, or ranking represents its facilities\nand characterizes the risks. Review may be performed by personnel familiar with storage\noperations, risk management, and methods of analyzing risk and results.”\nDuring the inspection, PHMSA requested the records tracking the risk assessment reviews\nconducted pursuant to Section 8.5.2. Spire stated they conducted these reviews annually but failed\nto produce records for the 2021 and 2022 risk assessment review meetings.\nTherefore, Spire failed to maintain records demonstrating compliance with § 192.12(d) as required\nby § 192.12(d)(4).\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\n\n\n\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\nSpire Missouri Inc. East 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 1-2024-048-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":12586}