{"operation":"document","citation":"CPF 220123003","title":"CHATTANOOGA GAS CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-10-23","effective_on":null,"summary":"CLOSED notice of probable violation citing 193.2625(a), 193.2625(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-220123003.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-220123003.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-220123003","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/220123003","body":"Notice of Probable Violation involving CHATTANOOGA GAS CO. PHMSA's enforcement data identifies the cited regulations as 193.2625(a),  193.2625(b). The case was opened on 2012-10-23 and is reported as closed as of 2013-08-28. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n220123003_closure letter_08282013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_closure%20letter_08282013.pdf\n\n220123003_closure letter_08282013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_closure%20letter_08282013_text.pdf\n\n220123003_Final Order_04222013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_Final%20Order_04222013.pdf\n\n220123003_FinalOrder_04222013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_FinalOrder_04222013_text.pdf\n\n220123003_NOPV_PCO_10232012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_NOPV_PCO_10232012.pdf\n\n220123003_NOPV_PCO_10232012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_NOPV_PCO_10232012_text.pdf\n\n220123003_Operator_response_11212012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/220123003/220123003_Operator_response_11212012.pdf\n\n220123003_FinalOrder_04222013_text.pdf\n\nAPRIL 22, 2013\nMr. Bryan Batson\nPresident\nChattanooga Gas Company\n10 Peachtree Place, NE\nAtlanta, GA 30309\nMr. James Pitts\nVice President, Storage and Peaking Operations\nAGL Resources, Inc.\n1200 Smith Street, Suite 900\nHouston, TX 77002\nRe: CPF No. 2-2012-3003\nDear Mr. Batson and Mr. Pitts:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Chattanooga Gas Company to comply\nwith the pipeline safety regulations. When the terms of the Compliance Order have been\ncompleted, as determined by the Director, Southern Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Wayne T. Lemoi, Director, Southern Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nMr. Richard R. Lonn, Director, Compliance Assurance, Chattanooga Gas Company\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\n)\nIn the Matter of )\n)\nChattanooga Gas Company, ) CPF No. 2-2012-3003\na subsidiary of AGL Resources, Inc. )\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom July 30 to August 1, 2012, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Chattanooga Gas\nCompany’s (CGC or Respondent) liquefied natural gas (LNG) facility in Chattanooga,\nTennessee.\n1 The Chattanooga LNG facility holds the equivalent of 1.2 billion cubic feet (Bcf) of\nnatural gas, is supplied by two pipelines, and delivers up to approximately 62,000 million cubic\nfeet (Mcf) per day to the Chattanooga Gas market.2\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated October 23, 2012, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that CGC had violated 49 C.F.R. §§ 193.2625(a) and 193.2625(b) and proposed ordering\nRespondent to take certain measures to correct the alleged violations.\nCGC responded to the Notice by letter dated November 21, 2012 (Response). The company did\nnot contest the allegations of violation, but provided information concerning the corrective\nactions it had initiated. Respondent did not request a hearing and therefore has waived its right\nto one.\n1 CGC is a subsidiary of Atlanta based AGL Resources, Inc.\nhttp://www.chattanoogagas.com/Universal/AboutUs.aspx (last visited April 4, 2013).\n2 http://www.aglresources.com/about/LNG.aspx (last visited April 4, 2013).\n\n\n\n2\nFINDINGS OF VIOLATION\nIn its Response, CGC did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n193, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 193.2625(a), which states:\n§ 193.2625 Corrosion protection.\n(a) Each operator shall determine which metallic components could,\nunless corrosion is controlled, have their integrity or reliability adversely\naffected by external, internal, or atmospheric corrosion during their\nintended service life.\nThe Notice alleged that Respondent violated 49 C.F.R. § 193.2625(a) by failing to determine\nwhich metallic components could, unless corrosion is controlled, have their integrity or\nreliability adversely affected by external, internal, or atmospheric corrosion during their intended\nservice life. Specifically, the Notice alleged that CGC did not determine that a 1.5-inch diameter\ngalvanized foam line designed to retard vaporization of spilled LNG in the event of a leak in the\nLNG pump area could have its integrity or reliability adversely affected by corrosion prior to a\ncorrosion leak at the pipe-to-soil interface which occurred on August 23, 2010.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 193.2625(a) by failing to determine\nthat a metallic component could, unless corrosion is controlled, have its integrity or reliability\nadversely affected by external, internal, or atmospheric corrosion during its intended service life.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 193.2625(b), which states:\n§ 193.2625 Corrosion protection.\n(a)…\n(b) Components whose integrity or reliability could be adversely\naffected by corrosion must be either—\n(1) Protected from corrosion in accordance with §§ 193.2627 through\n193.2635, as applicable; or\n(2) Inspected and replaced under a program of scheduled maintenance\nin accordance with procedures established under § 193.2605.\nThe Notice alleged that Respondent violated 49 C.F.R. § 193.2625(b) by failing to protect a\ncomponent whose integrity or reliability could be adversely affected by corrosion from corrosion\nin accordance with §§ 193.2627 through 193.2635, or inspect and replace the component under a\nprogram of scheduled maintenance in accordance with procedures established under § 193.2605.\nSpecifically, the Notice alleged that CGC failed to protect the 1.5-inch diameter galvanized foam\nline from corrosion or inspect and replace the component under a program of scheduled\nmaintenance and failed to inspect, protect from corrosion, and replace as necessary other areas of\nthe line and similar pipe-to-soil interfaces.\n\n\n\n3\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 193.2625(b) by failing to protect the\n1.5-inch galvanized foam line whose integrity or reliability could be adversely affected by\ncorrosion from corrosion in accordance with §§ 193.2627 through 193.2635, or inspect and\nreplace the component under a program of scheduled maintenance in accordance with procedures\nestablished under § 193.2605.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a Compliance Order with respect to Items 1 and 2 in the Notice for\nviolations of 49 C.F.R. §§ 193.2625(a) and 193.2625(b), respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of LNG or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601.\nIn its Response, CGC provided information concerning the corrective actions it has taken to\naddress the cited violations including replacing the below ground portion of the 1.5-inch\ngalvanized foam line and improved monitoring of metallic components. Having reviewed this\ninformation, the Director has indicated that, among other things, Respondent has not submitted\nthe required analyses or copies of the amended procedures and therefore has not fully satisfied\nthe compliance terms.\nAs for the remaining compliance terms, pursuant to the authority of 49 U.S.C. § 60118(b) and\n49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance\nwith the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 193.2625(a) (Item 1), Respondent must conduct\nan analysis of all metallic components within the LNG Plant and identify which\nmetallic components could, unless corrosion is controlled, have their integrity or\nreliability adversely affected by external, internal, or atmospheric corrosion during\ntheir intended service life. The analysis must include consideration of potential\ninternal or atmospheric corrosion threats for components that are not normally in\nservice, such as the 1.5-inch galvanized foam line referred to in Item 1 of the Notice.\n2. With respect to the violation of § 193.2625(b) (Item 2), Respondent must:\nA. Inspect and, if required, replace the components identified as a result of the\nanalysis required by Item 1 above; and\nB. Include in CGC’s manual(s) of written procedures measures it will take to\nprotect the components from corrosion in accordance with §§ 193.2627 through\n193.2635, as applicable.\n\n\n\n4\n3. Complete Items 1 and 2 above within 60 days of receipt of this Order.\n4. Provide written documentation to the Director demonstrating that Items 1 and 2\nhave been completed within 75 days of receipt of this Order.\n5. It is requested (not mandated) that CGC maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to the Director. It is requested that these costs be reported in two categories: (1)\ntotal cost associated with preparation or revision of plans, procedures, studies, and\nanalyses; and (2) total cost associated with repairs, replacements, additions, and other\nchanges to physical pipeline facilities.\nThe Director may grant an extension of time to comply with any of the required items upon a\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nextension.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\n___________________________________ __________________________\nJeffrey D. Wiese Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n220123003_closure letter_08282013_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nAugust 28, 2013\nMr. James Pitts\nVice President, Storage and Peaking Operations\nAGL Resources\n1200 Smith Street, Suite 900\nHouston, TX 77002\nCPF 2-2012-3003\nDear Mr. Pitts:\nOn April 22, 2013, the Pipeline and Hazardous Materials Safety Administration (PHMSA),\nOffice of Pipeline Safety (OPS) issued to Chattanooga Gas Company (CGC) a Final Order in\nthe above-referenced case. The Final Order included an attached Compliance Order requiring\nCGC to undertake certain actions to ensure compliance with the federal pipeline safety\nregulations.\nThe OPS Southern Region has received and reviewed three written responses to the\nCompliance Order from CGC including your last response dated August 23, 2013. Based on\nour reviews of these responses we have determined that CGC has complied with the terms of\nthe Final Order. This case is now closed and no further action is necessary with respect to the\nmatters involved in this case.\nPlease be advised that this letter refers only to the above referenced order (CPF 2-2012-3003)\nand not to any other OPS cases, if any.\nThank you for your cooperation in this matter.\nSincerely,\nWayne T. Lemoi\nDirector, Office of Pipeline Safety\nPHMSA Southern Region\n\n220123003_Final Order_04222013.pdf\n\nof Transportation\nU.S. Department\n1200 New Jersey Avenue, SE\nWashington, D.C. 20590\nMaterials Safety\nPipeline and Hazardous\nAdministration\nAPR 22 2013\nMr. Bryan Batson\nPresident\nChattanooga Gas Company\n10 Peachtree Place, NE\nAtlanta, GA 30309\nMr. James Pitts\nVice President, Storage and Peaking Operations\nAGL Resources, Inc\n1200 Smith Street, Suite 900\nHouston, TX 77002\nRe: CPF No. 2-2012-3003\nDear Mr. Batson and Mr. Pitts:\nEnclosed please find the Final Order issued in the above-referenced case. It makes findings of\nviolation and specifies actions that need to be taken by Chattanooga Gas Company to comply\nwith the pipeline safety regulations. When the terms of the Compliance Order have been\ncompleted, as determined by the Director, Southern Region, this enforcement action will be\nclosed. Service of the Final Order by certified mail is deemed effective upon the date of mailing,\nor as otherwise provided under 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nJeffrey D. Wiese\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\nMr. Wayne T. Lemoi, Director, Southern Region, OPS\nMr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS\nMr. Richard R. Lonn, Director, Compliance Assurance, Chattanooga Gas Company\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\nIn the Matter of\nChattanooga Gas Company,\na subsidiary of AGL Resources, Inc.\nCPF No. 2-2012-3003\nRespondent.\nFINAL ORDER\nFrom July 30 to August 1, 2012, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS),\nconducted an on-site pipeline safety inspection of the facilities and records of Chattanooga Gas\nCompany's (CGC or Respondent) liquefied natural gas (LNG) facility in Chattanooga,\nTennessee.' The Chattanooga LNG facility holds the equivalent of 1.2 billion cubic feet (Bcf) of\nnatural gas, is supplied by two pipelines, and delivers up to approximately 62,000 million cubic\nfeet (Mct) per day to the Chattanooga Gas market.?\nAs a result of the inspection, the Director, Southern Region, OPS (Director), issued to\nRespondent, by letter dated October 23, 2012, a Notice of Probable Violation and Proposed\nCompliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed\nfinding that had violated 49C... 1932625(a) and 193.2625(b) and proposed ordering\nRespondent to take certain measures to correct the alleged violations.\nCGC responded to the Notice by letter dated November 21, 2012 (Response). The company did\nnot contest the allegations of violation, but provided information concerning the corrective\nactions it had initiated. Respondent did not request a hearing and therefore has waived its right\nto one.\n' CGC is a subsidiary of Atlanta based AGL Resources, Inc.\nhttp://www.chattanoogagas.com/Universal/AboutUs.aspx (last visited April 4, 2013).\nhttp://www.ag|resources.com/about/LNG.aspx (last visited April 4, 2013).\n\n\n\n2\nFINDINGS OF VIOLATION\nIn its Response, CGC did not contest the allegations in the Notice that it violated 49 C.F.R. Part\n193, as follows:\nItem I: The Notice alleged that Respondent violated 49 C.F.R. § 193.2625(a), which states:\n§ 193.2625\nCorrosion protection.\n(a) Each operator shall determine which metallic components could,\nunless corrosion is controlled, have their integrity or reliability adversely\nintended service life.\naffected by external, internal, or atmospheric corrosion during their\nThe Notice alleged that Respondent violated 49 C.F.R. § 193.2625(a) by failing to determine\nwhich metallic components could, unless corrosion is controlled, have their integrity or\nreliability adversely affected by external, internal, or atmospheric corrosion during their intended\nservice life. Specifically, the Notice alleged that CGC did not determine that a 1.5-inch diameter\ngalvanized foam line designed to retard vaporization of spilled LNG in the event of a leak in the\nLNG pump area could have its integrity or reliability adversely affected by corrosion prior to a\ncorrosion leak at the pipe-to-soil interface which occurred on August 23, 2010.\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 193.2625(a) by failing to determine\nthat a metallic component could, unless corrosion is controlled, have its integrity or reliability\nadversely affected by external, internal, or atmospheric corrosion during its intended service life.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 193.2625(b), which states:\n§ 193.2625\nCorrosion protection.\n(a)...\n(b) Components whose integrity or reliability could be adversely\naffected by corrosion must be either—\n(1) Protected from corrosion in accordance with §§ 193.2627 through\n193.2635, as applicable; or\n(2) Inspected and replaced under a program of scheduled maintenance\nin accordance with procedures established under § 193.2605.\nThe Notice alleged that Respondent violated 49 C.F.R. § 193.2625(b) by failing to protect a\ncomponent whose integrity or reliability could be adversely affected by corrosion from corrosion\nin accordance with §§ 193.2627 through 193.2635, or inspect and replace the component under a\nprogram of scheduled maintenance in accordance with procedures established under § 193.2605.\nSpecifically, the Notice alleged that CC failed to protect the 1.5-inch diameter galvanized foam\nline from corrosion or inspect and replace the component under a program of scheduled\nmaintenance and failed to inspect, protect from corrosion, and replace as necessary other areas of\nthe line and similar pipe-to-soil interfaces.\n\n\n\n3\nRespondent did not contest this allegation of violation. Accordingly, based upon a review of all\nof the evidence, I find that Respondent violated 49 C.F.R. § 193.2625(b) by failing to protect the\n1.5-inch galvanized foam line whose integrity or reliability could be adversely affected by\ncorrosion from corrosion in accordance with §$ 193.2627 through 193.2635, or inspect and\nreplace the component under a program of scheduled maintenance in accordance with procedures\nestablished under § 193.2605.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nCOMPLIANCE ORDER\nThe Notice proposed a Compliance Order with respect to Items 1 and 2 in the Notice for\nviolations of 49 C.F.R. §§ 193.2625(a) and 193.2625(b), respectively. Under 49 U.S.C.\n§ 60118(a), each person who engages in the transportation of LNG or who owns or operates a\npipeline facility is required to comply with the applicable safety standards established under\nchapter 601.\nIn its Response, CGC provided information concerning the corrective actions it has taken to\naddress the cited violations including replacing the below ground portion of the 1.5-inch\ngalvanized foam line and improved monitoring of metallic components. Having reviewed this\ninformation, the Director has indicated that, among other things, Respondent has not submitted\nthe required analyses or copies of the amended procedures and therefore has not fully satisfied\nthe compliance terms.\nAs for the remaining compliance terms, pursuant to the authority of 49 U.S.C. § 60118(b) and\n49 C.F.R. § 190.217, Respondent is ordered to take the following actions to ensure compliance\nwith the pipeline safety regulations applicable to its operations:\n1. With respect to the violation of § 193.2625(a) (Item 1), Respondent must conduct\nan analysis of all metallic components within the LNG Plant and identify which\nmetallic components could, unless corrosion is controlled, have their integrity or\nreliability adversely affected by external, internal, or atmospheric corrosion during\ntheir intended service life. The analysis must include consideration of potential\ninternal or atmospheric corrosion threats for components that are not normally in\nservice, such as the 1.5-inch galvanized foam line referred to in Item 1 of the Notice.\n2. With respect to the violation of § 193.2625(b) (Item 2), Respondent must:\nA. Inspect and, if required, replace the components identified as a result of the\nanalysis required by Item 1 above; and\nB. Include in CG's manual(s) of written procedures measures it will take to\nprotect the components from corrosion in accordance with §§ 193.2627 through\n193.2635, as applicable.\n\n\n\n4\n3. Complete Items 1 and 2 above within 60 days of receipt of this Order.\n4. Provide written documentation to the Director demonstrating that Items 1 and 2\nhave been completed within 75 days of receipt of this Order.\n5. It is requested (not mandated) that CC maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit the\ntotal to the Director. It is requested that these costs be reported in two categories: (1)\ntotal cost associated with preparation or revision of plans, procedures, studies, and\nanalyses; and (2) total cost associated with repairs, replacements, additions, and other\nchanges to physical pipeline facilities.\nThe Director may grant an extension of time to comply with any of the required items upon a\nextension.\nwritten request timely submitted by the Respondent and demonstrating good cause for an\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $100,000 for each violation for each day the violation continues or in referral to the\nAttorney General for appropriate relief in a district court of the United States.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nSacre\nAPR 22 2013\nJeffrey D. Wiese\nDate Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":22485}