{"operation":"document","citation":"CPF 12025011WL","title":"NGO TRANSMISSION, INC. — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-20","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d)(4).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025011wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025011wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025011wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12025011WL","body":"Warning Letter involving NGO TRANSMISSION, INC.. PHMSA's enforcement data identifies the cited regulation as 192.12(d)(4). The case was opened on 2025-05-20 and is reported as closed as of 2025-05-20. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12025011WL_Warning Letter_05202025_(24-295906).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025011WL/12025011WL_Warning%20Letter_05202025_(24-295906).pdf\n\n12025011WL_Warning Letter_05202025_(24-295906)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025011WL/12025011WL_Warning%20Letter_05202025_(24-295906)_text.pdf\n\n12025011WL_Warning Letter_05202025_(24-295906)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: dan Mcvey@theenergycoop.com\nMay 20, 2025\nMr. Dan McVey\nVice President and Chief Operating Officer\nNGO Transmission, Incorporated\n1500 Grandville Road\nNewark, Ohio 43058\nCPF 1-2025-011-WL\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. (NGO)’s underground natural gas storage records and\nprocedures for the Perry, Muskie, and Zane storage fields in Perry County and Muskingum County,\nOhio.\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. § 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).\n\n\n\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 failed to maintain, for the useful life of the UNGSF, records that demonstrate compliance\nwith the requirements of § 192.12(d). Specifically, NGO failed to maintain records of its risk\nmanagement effectiveness reviews required under American Petroleum Institute Recommended\nPractice 1171 (API RP 1171), Section 8.7.1 (Section 8.7.1).\nSection 8.7.1 states in part that “[t]he operator shall assess the effectiveness of risk monitoring and\nrisk management programs and maintain a continual review and improvement cycle in risk\nmanagement activities to provide functional integrity of the storage operation. The interval of\nreview and reassessment should be short enough to identify operational and monitoring trends and\nmeasure the effectiveness of P&M measures, but long enough that the data and information that\ncan be brought into the analysis are meaningful.”\nDuring the inspection, PHMSA requested records of the Risk Management effectiveness reviews\nconducted pursuant to Section 8.7.1. NGO stated that the reviews were not documented.\nTherefore, NGO failed to maintain records demonstrating compliance with § 192.12(d) as required\nby § 192.12(d)(4).\n2. § 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 failed to maintain, for the useful life of the UNGSF, records that demonstrate compliance\nwith the requirements of § 192.12(d). Specifically, NGO failed to maintain records of its risk\nassessment records and reviews for 2021 and 2022 that are required pursuant to API RP 1171,\nSection 8.5.2 (Section 8.5.2).\n\n\n\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 assessments and reviews\nconducted pursuant to Section 8.5.2. NGO stated that the Risk Assessment files for 2021 and 2022\ndid not save in their database system.\nTherefore, NGO 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\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\nper violation 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\nNGO Transmission, Inc. 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 1-2025-011-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).\n\n\n\nSincerely,\nRobert Burrough\nDirector, Eastern Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":8084}