{"operation":"document","citation":"CPF 12025010NOA","title":"NGO TRANSMISSION, INC. — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-09","effective_on":null,"summary":"CLOSED notice of amendment citing 192.12(c), 192.12(d)(1)(i), 192.12(d)(2), 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025010noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025010noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025010noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12025010NOA","body":"Notice of Amendment involving NGO TRANSMISSION, INC.. PHMSA's enforcement data identifies the cited regulations as 192.12(c),  192.12(d)(1)(i),  192.12(d)(2),  192.12(d)(4). The case was opened on 2025-05-09 and is reported as closed as of 2025-07-11. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12025010NOA_Closure Letter_07112025_(24-295906).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025010NOA/12025010NOA_Closure%20Letter_07112025_(24-295906).pdf\n\n12025010NOA_Closure Letter_07112025_(24-295906)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025010NOA/12025010NOA_Closure%20Letter_07112025_(24-295906)_text.pdf\n\n12025010NOA_Notice of Amendment_05092025_(24-295906).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025010NOA/12025010NOA_Notice%20of%20Amendment_05092025_(24-295906).pdf\n\n12025010NOA_Notice of Amendment_05092025_(24-295906)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025010NOA/12025010NOA_Notice%20of%20Amendment_05092025_(24-295906)_text.pdf\n\n12025010NOA_Operator Response to Notice_06062025_(24-295906).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025010NOA/12025010NOA_Operator%20Response%20to%20Notice_06062025_(24-295906).pdf\n\n12025010NOA_Closure Letter_07112025_(24-295906)_text.pdf\n\nVIA ELECTRONIC MAIL TO: dan mcvey@theenergycoop.com\nJuly 11, 2025\nMr. Dan McVey\nVice President and Chief Operating Officer\nNGO Transmission, Inc.\n1500 Grandville Road\nNewark, Ohio 43058\nCPF 1-2025-010-NOA\nDear Mr. McVey:\nFrom June 24 through June 27, 2024, a representative from the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code (U.S.C.),\ninspected NGO Transmission, Inc.’s (NGO) underground natural gas storage (UNGS) procedures\nfor the Perry, Muskie, and Zane storage fields in Perry County and Muskingum County, Ohio. As\na result of the inspection, NGO was issued a Notice of Amendment on May 9, 2025, requiring NGO\nto amend certain aspects of its procedures.\nOn June 6, 2025, NGO submitted its amended procedures. My staff reviewed the amended procedures,\nand it appears that the inadequacies outlined in this Notice of Amendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for\nyour cooperation.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n\n12025010NOA_Notice of Amendment_05092025_(24-295906)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: dan Mcvey@theenergycoop.com\nMay 9, 2025\nMr. Dan McVey\nVice President and Chief Operating Officer\nNGO Transmission, Inc.\n1500 Grandville Road\nNewark, Ohio 43058\nCPF 1-2025-010-NOA\nDear Mr. McVey:\nFrom June 24 through June 27, 2024, representatives of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.),\ninspected NGO Transmission, Inc.’s (NGO) underground natural gas storage (UNGS) records and\nprocedures for the Perry, Muskie, and Zane storage fields in Perry County and Muskingum County,\nOhio.\nAs a result of the inspection, PHMSA has identified the apparent inadequacies found within\nNGO’s plans or procedures. The items inspected and the inadequacies are described below:\n1. § 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.\n\n\n\nNGO’s written procedures for conducting operations and maintenance activities were inadequate\nto provide for safe operation of a pipeline facility in accordance with § 192.12(c). Specifically,\nNGO’s Emergency Procedure Manual (EPM) failed to include a process for addressing accidental\nreleases, equipment failure, natural disasters, and third-party emergencies as required in API RP\n1171, Section 10.6.1.\nDuring the inspection, PHMSA reviewed the EPM. The EPM failed to include a process\naddressing accidental releases, equipment failure, natural disasters, and third-party emergencies.\nTherefore, NGO’s written procedures for conducting operations and maintenance activities were\ninadequate to provide for safe operation of a pipeline facility in accordance with § 192.12(c). NGO\nmust revise its written procedures to address the deficiencies outlined above.\n2. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Integrity management program —\n(1) Integrity management program elements. The integrity\nmanagement program for each UNGSF under this paragraph (d) must\nconsist, at a minimum, of a framework developed under API RP 1171\n(incorporated by reference, see § 192.7), section 8 (“Risk Management\nfor Gas Storage Operations”), and that also describes how relevant\ndecisions will be made and by whom. An operator must make continual\nimprovements to the program and its execution. The integrity\nmanagement program must include the following elements:\n(i) A plan for developing and implementing each program element\nto meet the requirements of this section;\n(ii) …\n(iii) …\n(iv) …\n(v) …\n(vi) …\n(2) Integrity management baseline risk-assessment intervals. No later\nthan March 13, 2024, each UNGSF operator must complete the baseline\nrisk assessments of all reservoirs and caverns, and at least 40% of the\nbaseline risk assessments for each of its UNGSF wells (including\nwellhead assemblies), beginning with the highest-risk wells, as\nidentified by the risk analysis process. No later than March 13, 2027,\nan operator must complete baseline risk assessments on all its wells\n(including wellhead assemblies). Operators may use prior risk\nassessments for a well as a baseline (or part of the baseline) risk\nassessment in implementing its initial integrity management program,\nso long as the prior assessments meet the requirements of API RP 1171\n(incorporated by reference, see § 192.7), section 8, and continue to be\nrelevant and valid for the current operating and environmental\nconditions. When evaluating prior risk-assessment results, operators\nmust account for the growth and effects of indicated defects since the\n\n\n\ntime the assessment was performed.\nNGO’s written integrity management program failed to include a plan for developing and\nimplementing each program element to meet the requirements of § 192.12(d)(1)(i). Specifically,\nNGO’s Storage Integrity Management Plan, Standard 3.18 (Apr. 5, 2021) (SIMP) failed to include\na plan for completing the baseline risk assessments in accordance with § 192.12(d)(2).\nDuring the inspection, PHMSA reviewed NGO’s SIMP and found that it failed to include a process\noutlining the methodology and deadlines for completing baseline risk assessments for its UNGS\nfacilities pursuant to § 192.12(d)(2).\nTherefore, NGO’s written integrity management program failed to include a plan for developing\nand implementing each program element to meet the requirements of § 192.12(d)(1)(i). NGO must\nrevise its written procedures to address the deficiency outlined above.\n3. § 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.\nNGO’s written procedures for carrying out its integrity management program were inadequate to\nprovide for safe operation of a pipeline facility in accordance with § 192.12(d)(4). Specifically,\nNGO’s Storage Integrity Management Plan, Standard 3.18 (Apr. 5, 2021) (SIMP) failed to have\na written process to assess threat and hazard interaction in accordance with API RP 1171, Section\n8.3.2 – Data Sources.\nSection 8.3.2 states in part that “[t]he Operators shall use available information such as\nperformance data collected through the field history, operations, and maintenance (O&M)\nactivities, geotechnical data such as well logs, engineering data, and completion reports to\ndetermine susceptibility to threat and hazard-related events and to assess threat and hazard\ninteraction.”\nDuring the inspection, PHMSA reviewed the SIMP and determined that it failed to identify threat\nand hazard interactions for their underground storage facilities and failed to outline how the\ninteractions impact risk assessment scores/ranking. as required by Section 8.3.2.\n\n\n\nTherefore, NGO’s written procedures for carrying out its integrity management program were\ninadequate to provide for safe operation of a pipeline facility in accordance with § 192.12(d)(4).\nNGO must revise its procedures to include the identification and assessment of threat and hazard\ninteractions in accordance with Section 8.3.2.\nResponse to this Notice\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. § 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment under\n5 U.S.C. § 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under § 190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this Notice\nand authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in this Notice\nwithout further notice to you and to issue an Order Directing Amendment. If your plans or\nprocedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans\nor procedures to correct the inadequacies (49 CFR § 190.206). If you are not contesting this\nNotice, we propose that you submit your amended procedures to my office within 30 days of\nreceipt of this Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this enforcement\naction will be closed.\nIt is requested (not mandated) that NGO Gas Transmission, Inc. maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Robert Burrough, Director,\nEastern Region, Pipeline and Hazardous Materials Safety Administration. In correspondence\nconcerning this matter, please refer to CPF 1-2025-010-NOA and, for each document you submit,\nplease provide a copy in electronic format whenever possible.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings","truncated":false,"body_characters":12151}