{"operation":"document","citation":"CPF 320125024W","title":"DAKOTA GASIFICATION COMPANY — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2012-11-27","effective_on":null,"summary":"CLOSED warning letter citing 195.452(d)(3)(i), 195.452(f)(7).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320125024w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320125024w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320125024w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320125024W","body":"Warning Letter involving DAKOTA GASIFICATION COMPANY. PHMSA's enforcement data identifies the cited regulations as 195.452(d)(3)(i),  195.452(f)(7). The case was opened on 2012-11-27 and is reported as closed as of 2012-11-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320125024W_Operator_Response_to_Notice_and_Request_for_Time_Extension_12052012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320125024W/320125024W_Operator_Response_to_Notice_and_Request_for_Time_Extension_12052012.pdf\n\n320125024W_Warning Letter_11272012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320125024W/320125024W_Warning%20Letter_11272012.pdf\n\n320125024W_Warning Letter_11272012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320125024W/320125024W_Warning%20Letter_11272012_text.pdf\n\n320125024W_Warning Letter_11272012_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL – RETURN RECEIPT REQUESTED\nNovember 27, 2012\nMr. Gary Loop\nVP & Chief Operating Officer\nDakota Gasification Company\n1600 East Interstate Avenue\nBismarck, ND 58503\nCPF #3-2012-5024W\nDear Mr. Loop:\nOn October 31 through November 3, 2011, representatives of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code,\ninspected Dakota Gasification Company’s (DGC) procedures and supporting implementation\nrecords for their Integrity Management Program (IMP) in Beulah, North Dakota.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the\nprobable violations are:\n§195.452 Pipeline integrity management in high consequence areas.\nd) When must operators complete baseline assessments? Operators must complete\nbaseline assessments as follows:\n(3) Newly-identified areas.\n(i) When information is available from the information analysis (see paragraph (g) of this\nsection), or from Census Bureau maps, that the population density around a pipeline\n\n\n\nsegment has changed so as to fall within the definition in §195.450 of a high population area\nor other populated area, the operator must incorporate the area into its baseline\nassessment plan as a high consequence area within one year from the date the area is\nidentified. An operator must complete the baseline assessment of any line pipe that could\naffect the newly-identified high consequence area within five years from the date the area is\nidentified.\nAt the time of the inspection, DGC could not demonstrate that it had adequately reviewed the\npipeline right-of-way for newly identified areas as required.\n§195.452 Pipeline integrity management in high consequence areas.\n(f) What are the elements of an integrity management program? An integrity management\npro5gram begins with the initial framework. An operator must continually change the\nprogram to reflect operating experience, conclusions drawn from results of the integrity\nassessments, and other maintenance and surveillance data, and evaluation of consequences\nof a failure on the high consequence area. An operator must include, at minimum, each of\nthe following elements in its written integrity management program:\n(7) Methods to measure the program's effectiveness (see paragraph (k) of this section);\nAt the time of inspection, DGC was unable to demonstrate that periodic evaluations of\nperformance measures had been conducted to enhance DGC’s understand of the performance\nmeasures and the impact on the specific integrity threats for segments.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed $200,000\nper violation per day the violation persists up to a maximum of $2,000,000 for a related series of\nviolations. For violations occurring prior to January 4, 2012, the maximum penalty may not\nexceed $100,000 per violation per day, with a maximum penalty not to exceed $1,000,000 for a\nrelated series of violations. We have reviewed the circumstances and supporting documents\ninvolved in this case, and have decided not to conduct additional enforcement action or penalty\nassessment proceedings at this time. We advise you to correct the item(s) identified in this letter.\nFailure to do so will result in Dakota Gasification Company being subject to additional\nenforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2012-5024W. 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\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\n\n\n\nSincerely,\nDavid Barrett\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration","truncated":false,"body_characters":5121}