{"operation":"document","citation":"CPF 12025019WL","title":"ANR PIPELINE CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2025-05-29","effective_on":null,"summary":"CLOSED warning letter citing 192.12(b)(2), 192.12(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025019wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025019wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-12025019wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/12025019WL","body":"Warning Letter involving ANR PIPELINE CO. PHMSA's enforcement data identifies the cited regulations as 192.12(b)(2),  192.12(c). The case was opened on 2025-05-29 and is reported as closed as of 2025-05-29. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n12025019WL_Warning Letter_05292025_(24-296372).pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025019WL/12025019WL_Warning%20Letter_05292025_(24-296372).pdf\n\n12025019WL_Warning Letter_05292025_(24-296372)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/12025019WL/12025019WL_Warning%20Letter_05292025_(24-296372)_text.pdf\n\n12025019WL_Warning Letter_05292025_(24-296372)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: david brast@tcenergy.com\nMay 29, 2025\nMr. David Brast\nPresident and Chief Executive Officer\nANR Pipeline Co\n700 Louisiana Street\nHouston, Texas 77002\nCPF 1-2025-019-WL\nDear Mr. Brast:\nFrom September 9, 2024 through December 10, 2024, a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States\nCode (U.S.C.) inspected ANR Pipeline Co’s (ANR) Loreed underground natural gas storage\nfacility (UNGSF) in Osceola, Michigan.\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(1) …\n(b) Depleted hydrocarbon and aquifer reservoir UNGSFs.\n\n\n\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.\nANR failed to meet the provisions of American Petroleum Institute’s Recommended Practice 1171\n(API RP 1171), section 8 in accordance with § 192.12(b)(2). Specifically, ANR failed to properly\nevaluate the potential threats impacting the reservoir in accordance with section 8.4.2 in API RP\n1171.\nSection 8.4.2 states in part that “[t]he operator shall evaluate the potential threats and hazards\nimpacting storage wells and reservoirs.”\nDuring the inspection, PHMSA’s review of ANR’s Reservoir Risk Assessment tool indicated that\nit considered less than 10 third-party wells as potential threats and hazards. However, PHMSA\nreviewed records indicating that there are 93 third-party wells that are potential threats and hazards\nthat must be considered in the risk assessment.\nTherefore, ANR failed to meet the provisions of API RP 1171, section 8 in accordance with\n§ 192.12(b)(2).\n2. § 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.\nANR failed to meet the provisions of API RP 1171, section 9 in accordance with § 192.12(b)(2).\nSpecifically, ANR failed to request well integrity evaluation data from all third-party\nowner/operators in accordance with section 9.3.1 in API RP 1171.\nSection 9.3.1 states in part that “[t]he operator shall request well integrity evaluation data from\nthird-party well owner/operators following the frequency established using conclusions from the\nrisk assessment.”\nDuring the inspection, PHMSA identified a discrepancy between the number of third-party wells\nat the storage field and the number of letters sent by ANR to request third-party well integrity\nevaluation data. ANR failed to send well integrity evaluation data requests to all third-party well\n\n\n\nowner/operators in 2023 due to a software issue. ANR stated that they will correct the software\nissue.\nTherefore, ANR failed to meet the provisions of API RP 1171, section 9 in accordance with\n§ 192.12(b)(2).\n3. § 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.\nANR failed to meet the provisions of API RP 1171, section 9 in accordance with § 192.12(b)(2).\nSpecifically, ANR failed to monitor for the presence of annular gas by measuring annular pressure\nor annular gas flow in accordance with section 9.3.2 in API RP 1171.\nSection 9.3.2 states in part that “[t]he operator shall monitor for presence of annular gas by\nmeasuring and recording annular pressure and/or annular gas flow.”\nDuring the inspection, PHMSA reviewed ANR’s records for annular gas monitoring via the well’s\nprimary annulus. For wells 8739, 9687, and 9439 the storage gas from pipeline was being\nintroduced into the primary annulus for well operation purposes. Gas pressure monitored within\nthe primary annulus of the three wells was thereby pipeline storage gas. The primary annulus of\nthese three wells were not being used to monitor for the presence of annular gas.\nTherefore, ANR failed to meet the provisions of API RP 1171, section 9 in accordance with\n§ 192.12(b)(2).\n4. § 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\nANR failed to follow its manual of written procedures for conducting operations, maintenance,\nand emergency preparedness and response activities in accordance with § 192.12(c). Specifically,\nANR failed to monitor the wellhead pressure on a monthly basis for four plugged wells at its\nLoreed UNGSF between 2020 and 2024 as required by its procedure, Gauging Storage well\nPressure and Flow, section 4 Frequency (Dec. 1, 2023) (Monitoring Procedure).\nANR’s Monitoring Procedure has required monthly wellhead pressure monitoring since at least\n2020. ANR’s procedure, Storage Integrity Records Management, section 3.2 “Storage Well\nRecords” (Rev 2, Feb. 1, 2023) stated that well integrity monitoring records must be retained for\nthe life of facility.\nDuring the inspection, PHMSA reviewed wellhead pressure records of four plugged wells within\nthe Loreed UNGSF. ANR failed to provide wellhead pressure records for wells 9151, 8733, and\n8934 for most months between 2020 to 2024, and for several months in 2024 for well 8865. During\nthe field inspection, PHMSA noted pressure at the wellhead of these wells, which indicates a\npossible failure of the plugs.\nTherefore, ANR failed to follow its manual of written procedures for conducting operations,\nmaintenance, and emergency preparedness and response activities in accordance with § 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$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a related\nseries of violations. For violation occurring on or after December 28, 2023 and before December\n30, 2024, the maximum penalty may not exceed $266,015 per violation per day the violation\npersists, up to a maximum of $2,660,135 for a related series of violations. For violation occurring\non or after January 6, 2023 and before December 28, 2023, the maximum penalty may not exceed\n$257,664 per violation per day the violation persists, up to a maximum of $2,576,627 for a related\nseries of violations. For violation occurring on or after March 21, 2022 and before January 6,\n2023, the maximum penalty may not exceed $239,142 per violation per day the violation persists,\nup to a maximum of $2,391,142 for a related series of violations. For violation occurring on or\nafter May 3, 2021 and before March 21, 2022, the maximum penalty may not exceed $225,134\nper violation per day the violation persists, up to a maximum of $2,251,334 for a related series of\nviolations. For violation occurring on or after January 11, 2021 and before May 3, 2021, the\nmaximum penalty may not exceed $222,504 per violation per day the violation persists, up to a\nmaximum of $2,225,034 for a related series of violations. For violation occurring on or after July\n31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per\nviolation per day the violation persists, up to a maximum of $2,186,465 for a related series of\nviolations.\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 may result in\nANR Pipeline 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 1-2025-019-WL. Be advised that all material you submit in response to this enforcement\n\n\n\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":10752}