# VECTREN ENERGY DELIVERY OF OHIO — Notice of Amendment

- **operation:** document
- **citation:** CPF 320075017M
- **title:** VECTREN ENERGY DELIVERY OF OHIO — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2007-05-21
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 195.226, 195.302, 195.310(b)(10), 195.402, 195.402(c), 195.402(e)(2), 195.402(e)(7), 195.442(c), 195.505, 195.567(c), 195.571, 195.573, 195.573(a)(2), 195.575(a), 195.583(c).
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Notice of Amendment involving VECTREN ENERGY DELIVERY OF OHIO. PHMSA's enforcement data identifies the cited regulations as 195.226,  195.302,  195.310(b)(10),  195.402,  195.402(c),  195.402(e)(2),  195.402(e)(7),  195.442(c),  195.505,  195.567(c),  195.571,  195.573,  195.573(a)(2),  195.575(a),  195.583(c). The case was opened on 2007-05-21 and is reported as closed as of 2007-06-29. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320075017M_Notice of Amendment_05212007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075017M/320075017M_Notice%20of%20Amendment_05212007.pdf

320075017M_Operator Response to notice letter_06152007.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320075017M/320075017M_Operator%20Response%20to%20notice%20letter_06152007.pdf

320075017M_Notice of Amendment_05212007.pdf

p
U.S. Deportrnent
of Tronsportofion
Pipelin€ ond
Hozoldous llqteriols Sofety
Adminislrqtlon
901 Locusl Street, Suite 462
Kansas City, MO 64106-2641
NOTICE OF AMENDMENT
qERTIFIED MAIL. RETURN RECEIPT REOUESTED
N.Ity21,2007
Mr. Rick Schach
Vice President
Vectren Energy Delivery
2l I NW Riv'erside Drive
Evansville, IN 47711
cPF 3-2007-5017M
Dear Mr. Schach:
On January 29 through February 2,20OT,representatives of the Pipeline and Hazardous
Materials Safety Administration (PHMSA) Central Region and the Public Utilities
Commission of Ohio pursuant to Chapter 601 of 49 United States Code inspected the
procedures for ernergency response, operation and maintenance, and operator qualification in
Dayton, OH.
On the basis of the inspection, PHMSA has identified apparent inadequacies found within
Vectren's plans or procedures, as described below:
1. $f 95.402 Procedural manual for operations, mrintenance, and emergencies.
$f 95.402(a) requires that each operator shall prepare and follow for each pipeline
system a manual of written procedures for conducting normal operations and
maintenance activities and handling abnormal operations and emergencies.
$f95.402(c) indicates that the manual required by paragraph (a) of this section must
include procedures for the following to provide safety during maintenance and
normal operations:



(3) Operating maintaining and repairing the pipetine system in aecordance with
each of the requirements of this subpart and subpart H of this part.
Review of the Operation and Maintenance (O&M) procedures found that the following
requirernenh were not adequately covered in the procedures or needed to be expanded to
provide additional guidance to your personnel:
a) $195.402(e)(2) - Procedural manual for operations, maintenance, and
emergencies.
Vectren's Emergency Response Plan does not adequately define a propane
emergency.
b) S195.402 (eX?) - Procedural manual for operationso maintenance, and
emergencies.
Vectren's Propane Facilities Standards Manual Section 3.03 Page 9 indicates that
Vectren will coordinate with fire, police, and other appropriate public officials
preplanned responses to emergencies but does not indicate how often these contacts
will be made.
c)
$195.403(c) - Emergency Response Training.
Vectren's Propane Facilities Standards Manual does not state how Vectren will verify
supervisor knowledge of Emergency Procedures.
d)
$195.aa2(c)(ii) - Damage Prevention Program
Vectren's Propane Facilities Standards Manual does not indicate a leak survey will be
conducted after blasting.
e)
gf95.567(c) - Which pipelines must have test leads and what must I do to install
and maintain the leads?
Vectren's Procedures do not state defective cathodic protection test leads will be
repaired by at least the next inspection cycle.
$195.571 Whrt criteria must I use to determine the adequacy of cathodic
protection?
Vectren's Propane Facilities Standards Manual Section 3.03 Page 4 references NACE
RPOl69 but does not specifically state that -0.850 v IR considered or 100 mv decay
criteria will be used to determine the adequacy of cathodic protection.



g)
h)
j)
$195.5?3(a)(2) - What must I do to monitor external corrosion control?
Vectren's Propane Pipeline Procedures do not identiff the circumstances in which a
close-interval survey or comparable technology is practicable and necessary to
accomplish the objectives of paragraph 10.1.1.3 of NACE Standard RP0l69.
$195.573 What must I do to monitor external corrosion control?
Vectren's procedures do not indicate that cathodic protection deficiencies will be
repaired by at least the next inspection cycle.
$195.575(a) - Which facilities must I electrically isolate and what inspections'
tests, and safeguards are required?
Vectren's Operation and Maintenance Manual do not detail the casing cathodic
protection examination and mitigation program.
S195.583(c) - What must I do to monitor atmospheric corrosion control?
Vectren's procedures do not indicate that atmospheric corrosion deficiencies will be
repaired by at least the next inspection cycle.
2. $195.402(c) - Maintenance and normal operations - The manual required by
paragraph (a) of this section must include procedures for operating maintaining,
and repairing the pipeline system in accordance rvith each of the requirements of
this subpart and subpart H of this part.
Additionalty, $f95.422(b) requires that no operator may use any pipe, valve, or
fitting for replacement in repairing pipeline facilitieso unless it is designed and
constructed as required by this part
Review of your O&M procedures found that the following procedures need to be added
to the O&M manual to address repairs to your pipeline facilities.
a) Sf 95.226 Welding: Arc burns.
Vectren's Welding Procedure Manual does not indicate that all arc burns are
unacceptable on propane piping and must be repaired or removed.
b) S195.302 General requiremenh.
Vectren's Propane Facilities Standards Manual Section 3.02 should be expanded to
include the statement "tested without leakage".



c) $r95.310(b)(10) Records.
Vectren's Propane Facilities Standards Manual did not specify how and where
temperah.ue measurements are recorded during a hydro-test.
3. $f95.505 Qualification program.
Each operator shall have and follow a written qualification program. The program
shall include provisions to:
(a) Identify covered tasks;
(b) Ensure through evaluation that individuals performing covered tasks are
qualified;
Vectren's Operator Qualification Program did not ensure that personnel performing
covered tasks on the propane pipeline are qualified.
Vectren's program requires amendment to ensure that all covered tasks associated with
the operation of a propane pipeline are included. Since Vectren is both a natural gas
supplier and a propane pipeline operator, Vecffen has natural gas facilities and natural
gas customers in the vicinity of the propane pipeline. As a result of responding to a
public hydrocarbon odor complaint, Vectren may inadvertently utilize natural gas
pipeline employees for leak response and investigations on the propane pipeline. The
natural gas leak response employees are not operator qualified to recognize and respond
to a propane emergency. Vectren has determined that all areas of the propane pipeline
require an immediate response. Therefore, under Vecffen's present systern, Vectren
could send an unqualified employee to a propane pipeline emergency'
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. $ 60108(a) and49 C.F.R. $ 190.237. Enclosed
as part of this Notice is a document entitled Resporne Optionsfor Pipeline Operators in
Compliance Proceedings. Please refer to this document and note the response options. Be
advised that all material you submit in response to this enforcement action is subject to being
made publicly available. If you believe that any portion of your responsive material qualifies
for confidential treatment under 5 U.S.C. 552(b), along with the complete original document
you must provide a second copy of the document with the portions you believe qualify for
confidential treatment redacted and an explanation of why you believe the redacted
information qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond
within 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the
allegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to
find facts as alleged in this Notice without further notice to you and to issue a Final Order.
4



If, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in
this Noticg you may be ordered to amend your plans or procedures to correct the
inadequaciei (+g C.F.n. g 190.237). If you are not contesting this Notice, we propose that
yor.r rub-it your amended procedures to my office within 90 days of receipt of this Notice'
This period may be extended by written request for good cause. Once the inadequacies
identified herein have been addressed in your amended procedures, this enforcement action
will be closed.
In correspondence concerning this matter, please refer to CPF 3-2007-501?M and, for each
document you submit, please provide a copy in elecffonic format whenevsr possible-
Sincerely,
\'J,"*-'
Ivan A. Huntoon
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings



Response Options for Pipetine Operators in Compliance Proceedings
The requirements of 49 C.F.R. Part 190, Subpart B ($$ 190.201-190.237) govern response to
Notices issued by a Regional Director, Pipeline andHaratdous Materials Safefy Administration
GHMSA).
Be advised that all material submitted by a respondent in response to an enforcement action is
subject to being made publicly available. If you believe that any portion of your responsive
maierial qgalifies for confidential treatment under 5 U.S.C. 552(b), along with the complete
original document you must provide a second copy of the document with the portions you
believe quatifi for confidential treatment redacted and an explanation of why you believe the
redacted information quatifies for confidential teatrnent under 5 U'S.C. 552(b)'
L
Within 30 days of receipt of a Notice of Probable Violation, the respondent shall respond
to the Regional Director who issued the Notice in the following way:
\1h@ the Notice contains a proposed CIVIL PENALTY* -
t. Pay the proposed civil penalty and advise the Regional Director of the
puyt]l"ol This authorizes PHMSA to make findings and to close the case
with prejudice to the respondent. Payment terms are outlined below;
2.
Submit written explanations, information, or other materials in response to
the allegations antof seek elimination or mitigation of the proposed civil
penalty- Refer to 49 c.F.R. $ 190.225 for assessment considerations,
which include the respondent's ability to pay and the effect on the
respondent's abil.ity to stay in business, uPotr which civil penalties are
based; or
3.
Request a hearing as described below to contest the allegations and/or
proposed assessment of a civil penalty.
WhentheNotice contains q.p{.oposqd COMTLIANCE ORDER* -
1. Notiry the Regional Director that you intend to take the steps in the
proposed compliance order;
Z. Submit written explanations, information, or other materials in answer to
the allegations in the Notice and object to or seek clarification of the
proposed compliance order items in whole or in part; or
3. Request a hearing as described below to contest the allegations and/or
proposed compliance order items;
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c.
No written response is required. The respondent is warned that if it does not
take appropriate action to correct these items, enforcement action will be
taken if a subsequent inspection reveals a violation'
* Failure of the respondent to respond to the Notice within 30 days of receipt
constitutes a waiver of the right to contest the allegations in the Notice and authorizes
the Associate Administrator for Pipeline Safety to find facts as alleged in the Notice
without further notice to the respondent and to issue a Final Order.
il.
m. Within 30 days of receipt of a Notice of Amendment, the respondent shall respond to the
Regional Director who issued the Notice in the following way:
a. Notiff the Regional Director of yourplans to address the inadequacies
identified in the Notice;
b. Submit written explanations, information, or other materials in answer to the
allegations in the Notice and/or object to or seek clarification of the proposed
amendment items in whole or in part; or
c. Request a hearing as described betow to contest the allegations in the Notice.
* Failure of the respondent to respond to the Notice within 30 days of reoeipt
constitutes a waivei of the right to contest the allegations in the Notice and authorizes
the Associate Administrator for Pipeline Safety to find facts as alleged in the Notice
without further notice to the respondent and to issue a Final Order'
Procedure for Requesting a Heflfins
A request for a hearing must be in writing and accompanied by a statement of the issues
that the respondent intends to raise at the hearing. The issues may relate to the
allegations, new information, or to the proposed compliance order or proposed civil
penalty amount. Refer to 49 C.F.R. $ f 90.225 for assessment considerations upon which
"i"it pl"aties are based. A respondent's failure to speciff an issue may result in waiver
of the rigbt to raise that issue af the hearing. The respondent's request must also indicate
whether or not respondent will be represented by counsel at the hearing. Failure to
request a hearing in writing within 30 days of receipt of a Notice waives the right to a
hearing. In additioru if the anount of the proposed civil penalty or the proposed
co.rectire action is less than $10,000, the hearing will be held by telephone, unless the
respondent submits a unitten request for an in-person hearing. Complete hearing
procedures can be found at 49 C-F.R- $ 190-211-
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ru.
ErtensioB,s of Time
ffi to prepare an appropriate response to a Notice may be granted, at
the agency's discretion, following submittal of a written request to the R'egional Director.
The requist must indicate the amount of time needed and the reasons for the extension.
The request must be submitted within 30 days of receipt of the Notice.'
V.
VI.
Freedom.pf Infonnation Act
SA, including the violation report, the Notice, and any
order issued in ttris case, and any material provided to PHMSA by the respondent, may
be considered public information and subject to disclosure under the Freedom of
Information A;t (FOIA). If the infomration you provide is security sensitive, privileged,
confidential or may carlse your company competitive disadvantages, please clearly
identiff the material and provide jrxtification why the documents, or portions of a
document, should not be released under FOIA. If we receive a request for your material,
we will notis you if PHMSA, after reviewing the matedals and your provided
justification, determines that withholding the materials does not meet any exemption
irovided under the FOIA. You may appeal the agency's decision to release material
under the FOIA at that time. Your appeal will stay the release of those materials until a
final decision is made.
Smrll Business Regulatory Enforcement FairnessJlct l+formaf io+
I Regulatory Enforcement Ombudsman and 10
Regional Fairness Boards were established to receive comments from small businesses
about federal agency enforcement actions. The Ombudsman will annually evaluate the
enforcernent urtiuiti*r and rate each agency's responsiveness to small business. If you
wishto comment on the enforcernent actions of the Pipetine and Hazardous Materials
Safety Administration, call I-888-REG-FAIR (1-888-734-3247) or go to
http :1/www. sba. gov/ombudsman/dsp-faq.html -
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VII. PAYMENT INSTRUCTIONS
Civil Penatly Paymene of Less Than $10,000
Payment of a civil penalty of less than $10,000 proposed or assessed, under Subpart B of Part
190 of the Pipeline Safety Regulations can be made by certified check, money order or wire
transfer. Payment by certified check or money order (containing the CPF Number for this case)
should be made payable to the "Department of Transportation" and should be sent to:
F ederal Aviation Administration
Mike Monroney Aeronautical Center
Financial Operations Division (AMZ-300) P.O' Box 25082
Oklahoma City, OK 73125-4915
Wire transfer payments of less than $10,000 may be made through the Federal Reserve
Communications System (Fedwire) to the account of the U.S. Treasury. Detailed instructions are
provided below. Questions conceming wire transfer should be directed to the Financial
Operations Division at (405) 954-8893, or at the above address.
Civil Penalty Payments of $10,000 ot mrne
Payment of a civil penalty of $10,000 or more proposed or assessed under Subpart B of Part 190
ofihe Pipeline Safity Regulations (nust be made wire transfer (49 C.F.R. $ 89.21(bX3)),
through tlre nederal Reserve Communications System (Fedwire) to the account of the U.S.
Treasury. Detailed instructions are provided below. Questions conceming wire transfers should
be directed to the Financial Operations Division at (405) 954-8893, or at the above address'
INSTRUCTIONS FOR ELECTRONIC FUND TRANSFERS
(r) REQEI_VER ABA NO.
021030004
(2) TYPE/SUB-TYPE
(Provided by sending bank)
(3) SENpING BANK ABANO.
@rovided by sending bank) (4) SENDING BANK REF NQ.,
(Provided by sending bank)
(s) AMOT.JNT (6) SENDING BANK NAME
(Provided by sending bank)
(7) RECETVER NAME
TREAS NYC
(8) PRO_pUCT CODE
(Normally CTR, or as provided by sending
bank)
(9) BENEFICIAL GliF) = AGENCY
LOCATION CODE
BNF: /ALC-69-14-0001
(10) REASONS I'pR PAYMENT
Example: PHMSA - CPF # / Ticket
Number/Pipeline Assessment nurnber
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INSTRUCTIONS: You, as sender of the wire transfer, must provide the sending bank with the
information for blocks (l), (5), (7), (9), and (10). The information provided in Blocks (1), (7)'
and (9) are constant and remain th" same for all wire transfers to the Pipeline and Hazardous
Materials Safety Administration, Department of Transportation.
Block #l - RECETVER ABA NO. - "021030004". Ensure the sending bank enters this 9-digit
identification number; it represents the routing symbol for the U.S. Treasury at the Federal
Reserve Bank in New York.
Block #5 - AMOTJNT - You as the sender provide the amount of the transfer. Please be sure the
t*ttf* r-ount is punctuated with commas and a decimal point. EXAMPLE: $10.000.00
Block #7 - RECEIVERNAME - "TREAS NYC". Ensure the sending bank enters this
ibbreviation. It must be used for all wire ffansfers to the Treasury Department.
BlopF#9 - BENEFICIA.L - AGENCY LOCATION CODE - "BNF=/ALC-69-14-0001". Ensure
frffi-dtg bank enters this information. This is the Agency Location Code forthe Pipeline and
HazardouJMaterials Safety Administration, Department of Transportation.
Block t!.0_- REASON FOR PAYMENT - *AC-payment for PHMSA Case # / To ensure your
wire transf* is credited properly, enter the case numberhicket number or Pipeline Assessment number,
and counfry."
NOTE: A wire transfer must comply with the format and instructions or the Deparbnent cannot
ilep-mr wire transfer. you as thi sender can assist this process by notiffing the Financial
Opeiations Division (405) 954-3893 at the time you send the wire bansfer.
February 2007
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