# GAS RECOVERY SYSTEMS, LLC — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 320111015
- **title:** GAS RECOVERY SYSTEMS, LLC — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2011-10-20
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.616.
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/320111015
**body:**

Notice of Probable Violation involving GAS RECOVERY SYSTEMS, LLC. PHMSA's enforcement data identifies the cited regulation as 192.616. The case was opened on 2011-10-20 and is reported as closed as of 2014-12-10. Proposed civil penalty: $27,800. Assessed civil penalty: $27,800. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

320111015_Closure_12102014.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_Closure_12102014.pdf

320111015_Closure_12102014_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_Closure_12102014_text.pdf

320111015_Final Order_10182012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_Final%20Order_10182012.pdf

320111015_Final Order_10182012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_Final%20Order_10182012_text.pdf

320111015_NOPV PCP PCO_10202011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_NOPV%20PCP%20PCO_10202011.pdf

320111015_NOPV PCP PCO_10202011_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_NOPV%20PCP%20PCO_10202011_text.pdf

320111015_Operator Response to Notice_11172011.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320111015/320111015_Operator%20Response%20to%20Notice_11172011.pdf

320111015_NOPV PCP PCO_10202011_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
October 20, 2011
Mr. Anthony J. Falbo
Vice President / General Manager
Fortistar Company / Gas Recovery Systems, LLC
5087 Junction Road
Lockport, New York 14094
CPF 3-2011-1015
Dear Mr. Falbo:
On June 7-8, 2011, a representative of the Ohio Public Utilities Commission (OH-PUC) acting
as an inter-state agent for the Pipeline and Hazardous Materials Safety Administration
(PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your records and
facilities for Gas Recovery Systems, LLC in Toledo, OH.
As a result of the inspection, it appears that you have committed a probable violation of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The item inspected and
the probable violation is:



1. §192.616 Public Awareness
(a) Except for an operator of a master meter or petroleum gas system covered
under paragraph (j) of this section, each pipeline operator must develop and
implement a written continuing public education program that follows the
guidance provided in the American Petroleum Institute's (API) Recommended
Practice (RP) 1162 (incorporated by reference, see § 192.7).
(b) The operator's program must follow the general program recommendations of
API RP 1162 and assess the unique attributes and characteristics of the operator's
pipeline and facilities.
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why compliance
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
(d) The operator's program must specifically include provisions to educate the
public, appropriate government organizations, and persons engaged in excavation
related activities on:
(1) Use of a one-call notification system prior to excavation and other damage
prevention activities;
(2) Possible hazards associated with unintended releases from a gas pipeline
facility;
(3) Physical indications that such a release may have occurred;
(4) Steps that should be taken for public safety in the event of a gas pipeline
release; and
(5) Procedures for reporting such an event.
(e) The program must include activities to advise affected municipalities, school
districts, businesses, and residents of pipeline facility locations.
(f) The program and the media used must be as comprehensive as necessary to
reach all areas in which the operator transports gas.
(g) The program must be conducted in English and in other languages commonly
understood by a significant number and concentration of the non-English speaking
population in the operator's area.
2



(h) Operators in existence on June 20, 2005, must have completed their written
programs no later than June 20, 2006. The operator of a master meter or
petroleum gas system covered under paragraph (j) of this section must complete
development of its written procedure by June 13, 2008. Upon request, operators
must submit their completed programs to PHMSA or, in the case of an intrastate
pipeline facility operator, the appropriate State agency.
(i) The operator's program documentation and evaluation results must be
available for periodic review by appropriate regulatory agencies.
Gas Recovery Systems LLC (GRS) did not develop and implement a written continuing
public education program as required by §192.616 that followed the guidance provided
in the American Petroleum Institute's (API) Recommended Practice (RP) 1162.
GRS was required to have a public awareness plan by June 20, 2006. As of the standard
inspection in June 2011, there was no plan and no records showing the identification of
stakeholders, the implementation of required baseline measures, the annual
implementation review and the four year effectiveness evaluation of the plan. GRS did
not provide the required notifications to the four stakeholder audiences within the
pipeline facilities to inform them of the characteristics and hazards of landfill gas.
Additionally, there was no notification and education of the public and appropriate
government organizations on how to recognize and react to possible pipeline incidents.
Proposed Civil Penalty
Under 49 United States Code, § 60122, you are subject to a civil penalty not to exceed
$100,000 for each violation for each day the violation persists up to a maximum of $1,000,000
for any related series of violations. The Compliance Officer has reviewed the circumstances
and supporting documentation involved in the above probable violation and has recommended
that you be preliminarily assessed a civil penalty of $27,800.
Proposed Compliance Order
With respect to item one pursuant to 49 United States Code § 60118, the Pipeline and
Hazardous Materials Safety Administration proposes to issue a Compliance Order to Gas
Recovery Systems, LLC. Please refer to the Proposed Compliance Order, which is enclosed
and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for 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
3



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.
In your correspondence on this matter, please refer to CPF 3-2011-1015 and for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
David Barrett
Director, Central Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Compliance Proceedings
4



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Gas Recovery Systems, LLC a Compliance
Order incorporating the following remedial requirements to ensure the compliance of Gas
Recovery Systems, LLC with the pipeline safety regulations:
1. In regard to Item Number One of the Notice pertaining to the Public Awareness
Plan, Gas Recovery Systems, LLC must develop and implement a Public
Awareness Plan in accordance to §192.616.
2. The Public Awareness Plan must be completed and submitted to the Central
Region Director and the Pipeline Safety Program Manager of the Ohio Public
Utilities Commission within 30 days of the receipt of the Final Order.
Additionally, the Plan must be implemented immediately upon completion.
Gas Recovery Systems, LLC will submit quarterly reports to the Central
Region Director and the Pipeline Safety Program Manager of the Ohio Public
Utilities Commission detailing the progress of the implementation for a period
of 365 days after the implementation of the program.
3. It is requested (not mandated) that Gas Recovery Systems, LLC maintain
documentation of the safety improvement costs associated with fulfilling this
Compliance Order and submit the total to David Barrett, Director, Central
Region, Pipeline and Hazardous Materials Safety Administration. It is
requested that these costs be reported in two categories: 1) total cost associated
with preparation/revision of plans, procedures, studies and analyses, and 2)
total cost associated with replacements, additions and other changes to pipeline
infrastructure.
5

320111015_Closure_12102014_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
December 10, 2014
Mr. Mark Comora
President
Gas Recovery Systems, LLC
One North Lexington Avenue
White Plains, New York 10601
CPF 3-2011-1015
Dear: Mr. Comora
On October 18, 2012, the Pipeline and Hazardous Materials Safety Administration
(PHMSA) issued to Gas Recovery Systems, LLC a Final Order in the above-referenced
case. This Order included a Compliance Order and Civil Penalty assessment. Based on our
review of the documentation you provided and confirmation of payment of the civil
penalty, it has been determined that you have complied with the terms of this Order.
Accordingly, this case is now closed and no further action is contemplated with respect to
the matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
Allan C. Beshore
Director, Central Region
Pipeline and Hazardous Materials Safety Administration

320111015_Final Order_10182012_text.pdf

OCTOBER 18, 2012
Mr. Mark Comora
President
Gas Recovery Systems, LLC
One North Lexington Avenue
White Plains, New York 10601
Re: CPF No. 3-2011-1015
Dear Mr. Comora:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a civil penalty of $27,800, and specifies actions that need to be taken by Gas
Recovery Systems, LLC, to comply with the pipeline safety regulations. The penalty payment
terms are set forth in the Final Order. When the civil penalty has been paid and the terms of the
compliance order completed, as determined by the Director, Central Region, this enforcement
action will be closed. Service of the Final Order by certified mail is deemed effective upon the
date of mailing, or as otherwise provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Jeffrey D. Wiese
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. David Barrett, Central Region Director, OPS
Mr. Alan Mayberry, Deputy Associate Administrator for Field Operations, OPS
Mr. Anthony J. Falbo, Senior Vice President – Operations, Gas Recovery
Systems, LLC, 5087 Junction Road, Lockport, New York 14094
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
)
In the Matter of )
)
Gas Recovery Systems, LLC, ) CPF No. 3-2011-1015
)
)
Respondent. )
____________________________________)
FINAL ORDER
On June 7-8, 2011, pursuant to 49 U.S.C. § 60117, a representative of the Ohio Public Utilities
Commission (OH-PUC), acting as interstate agent for the Pipeline and Hazardous Materials
Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline
safety inspection of the facilities and records of Gas Recovery Systems, LLC (GRS), in Toledo,
Ohio. GRS, a subsidiary of Fortistar, LLC, operates a group of renewable energy gas projects,
including a 3.2-mile pipeline that transports methane from a landfill in Ohio to a General Motors
facility.1
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated October 20, 2011, a Notice of Probable Violation, Proposed Civil Penalty, and
Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice
proposed finding that GRS had violated 49 C.F.R. § 192.616, and proposed assessing a civil
penalty of $27,800 for the alleged violation. The Notice also proposed ordering Respondent to
take certain measures to correct the alleged violation.
FINDING OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.616, which states, in
relevant part:
§ 192.616 Public awareness.
(a) Except for an operator of a master meter or petroleum gas system
covered under paragraph (j) of this section, each pipeline operator must
1 Fortistar, LLC home page, http://www.fortistar.com/default.aspx (last visited Sept. 20, 2012).



2
develop and implement a written continuing public education program that
follows the guidance provided in the American Petroleum Institute's (API)
Recommended Practice (RP) 1162 (incorporated by reference, see
§ 192.7).
(b) The operator's program must follow the general program
recommendations of API RP 1162 and assess the unique attributes and
characteristics of the operator's pipeline and facilities.
(c) The operator must follow the general program recommendations,
including baseline and supplemental requirements of API RP 1162, unless
the operator provides justification in its program or procedural manual as
to why compliance with all or certain provisions of the recommended
practice is not practicable and not necessary for safety.
(d) The operator's program must specifically include provisions to
educate the public, appropriate government organizations, and persons
engaged in excavation related activities on:
(1) Use of a one-call notification system prior to excavation and other
damage prevention activities;
(2) Possible hazards associated with unintended releases from a gas
pipeline facility;
(3) Physical indications that such a release may have occurred;
(4) Steps that should be taken for public safety in the event of a gas
pipeline release; and
(5) Procedures for reporting such an event.
(e) The program must include activities to advise affected
municipalities, school districts, businesses, and residents of pipeline
facility locations.
(f) The program and the media used must be as comprehensive as
necessary to reach all areas in which the operator transports gas.
(g) The program must be conducted in English and in other languages
commonly understood by a significant number and concentration of the
non-English speaking population in the operator's area.
(h) Operators in existence on June 20, 2005, must have completed
their written programs no later than June 20, 2006. . . .
The Notice alleged that Respondent violated 49 C.F.R. § 192.616 by failing to develop and
implement a written continuing public education program that followed the guidance provided in
API RP 1162. GRS was required to have completed its written program by June 20, 2006.
Respondent did not contest this allegation of violation. Accordingly, based upon a review of all
of the evidence, I find that Respondent violated 49 C.F.R. § 192.616 by failing to develop and
implement a written continuing public education program that followed the guidance provided in
API RP 1162.
This finding of violation will be considered a prior offense in any subsequent enforcement action
taken against Respondent.



3
Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed
$100,000 per violation for each day of the violation, up to a maximum of $1,000,000 for any
related series of violations. In determining the amount of a civil penalty under
49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature,
circumstances, and gravity of the violation, including adverse impact on the environment; the
degree of Respondent’s culpability; the history of Respondent’s prior offenses; the Respondent’s
ability to pay the penalty and any effect that the penalty may have on its ability to continue doing
business; and the good faith of Respondent in attempting to comply with the pipeline safety
regulations. In addition, I may consider the economic benefit gained from the violation without
any reduction because of subsequent damages, and such other matters as justice may require.
The Notice proposed a total civil penalty of $27,800 for the violation cited above.
Item 1: The Notice proposed a civil penalty of $27,800 for Respondent’s violation of
49 C.F.R. § 192.616, for failing to develop and implement a written continuing public education
program that followed the guidance provided in API RP 1162. GRS neither contested the
allegation nor presented any evidence or argument justifying a reduction in the proposed penalty.
The record shows that the Respondent did not create any kind of a public awareness plan for its
facilities. A public awareness plan is a critical component in protecting the public and an
operator’s own facilities in the event of a failure. The transmission line runs almost entirely in a
populated area that includes a school and several residential subdivisions. PHMSA considers
this area to be a High Consequence Area, as defined in § 192.903. Due to the high population
density, public awareness is necessary to educate the public about the location of the pipeline,
the identification of potential leaks and the actions needed in response to a potential failure.
GRS requested that PHMSA waive the civil penalty on the ground of financial hardship, due to
the fact that the facility in question was a poor financial performer. In its Response, GRS
explained that the line lost $102,000 over the past three years and asked that PHMSA “waive the
civil penalty and allow us to spend available financial resources for safety and environmental
programs…”2 Fortistar, however, is a large corporation with roughly 58 different energy
projects in the U.S. and Canada.3 Given the responsibility of all pipeline operators to carry out
effective public awareness programs, I see no reason to reduce or eliminate the proposed penalty
in this case. Accordingly, having reviewed the record and considered the assessment criteria, I
assess Respondent a civil penalty of $27,800 for violation of 49 C.F.R. § 192.616.
In summary, having reviewed the record and considered the assessment criteria for the Item cited
above, I assess Respondent a total civil penalty of $27,800.
Payment of the civil penalty must be made within 20 days of service. Federal regulations
(49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal
Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed
ASSESSMENT OF PENALTY
2 Response at 2.
3 Fortistar website, supra.



4
instructions are contained in the enclosure. Questions concerning wire transfers should be
directed to: Financial Operations Division (AMZ-341), Federal Aviation Administration, Mike
Monroney Aeronautical Center, P.O. Box 269039, Oklahoma City, Oklahoma 73125. The
Financial Operations Division telephone number is (405) 954-8893.
Failure to pay the $27,800 civil penalty will result in accrual of interest at the current annual rate
in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to
those same authorities, a late penalty charge of six percent (6%) per annum will be charged if
payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty
may result in referral of the matter to the Attorney General for appropriate action in a district
court of the United States.
COMPLIANCE ORDER
The Notice proposed a compliance order in the Notice for violation of 49 C.F.R. § 192.616.
Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns
or operates a pipeline facility is required to comply with the applicable safety standards
established under chapter 601.
Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is
ordered to take the following actions to ensure compliance with the pipeline safety regulations
applicable to its operations:
1. With respect to the violation of § 192.616 (Item 1), Respondent must take the following
action:
a. 2. GRS must develop and implement a Public Awareness Plan in accordance with
§ 192.616.
b. The Public Awareness Plan must be completed and submitted to the Central
Region Director and the Pipeline Safety Program manager of the Ohio Public
Utilities Commission within 30 days of the receipt of this Order. Additionally,
the Plan must be implemented immediately upon completion. GRS will submit
quarterly reports to the Central Region Director and the Pipeline Safety Program
Manager of the OH-PUC detailing its progress for a period of 365 days after
beginning implementation of the program.
With respect to the violation of § 192.616 (Item 1), Respondent is requested to maintain
documentation of the safety improvement costs associated with fulfilling this Compliance
Order and submit the total to David Barrett, Director, Central Region, Pipeline and
Hazardous Materials Safety Administration. It is requested that these costs be reported in
two categories: 1) total cost associated with preparation/revisions of plans, procedures,
studies and analyses; and 2) total cost associated with replacements, additions and other
changes to pipeline infrastructure.



5
The Director may grant an extension of time to comply with any of the required items upon a
written request timely submitted by the Respondent and demonstrating good cause for an
extension.
Failure to comply with this Order may result in administrative assessment of civil penalties not
to exceed $100,000 for each violation for each day the violation continues or in referral to the
Attorney General for appropriate relief in a district court of the United States.
Under 49 C.F.R. § 190.215, Respondent has a right to submit a Petition for Reconsideration of
this Final Order. The petition must be sent to: Associate Administrator, Office of Pipeline
Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC
20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address. PHMSA
will accept petitions received no later than 20 days after receipt of service of this Final Order by
the Respondent, provided they contain a brief statement of the issue(s) and meet all other
requirements of 49 C.F.R. § 190.215. The filing of a petition automatically stays the payment of
any civil penalty assessed. Unless the Associate Administrator, upon request, grants a stay, all
other terms and conditions of this Final Order are effective upon service in accordance with
49 C.F.R. § 190.5.
___________________________________ __________________________
Jeffrey D. Wiese Date Issued
Associate Administrator
for Pipeline Safety
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