{"operation":"document","citation":"CPF 320190007M","title":"LAKES GAS COMPANY — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2019-11-25","effective_on":null,"summary":"CLOSED notice of amendment citing 192.605(b)(1), 192.619(a)(1), 192.805(a).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320190007m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320190007m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320190007m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320190007M","body":"Notice of Amendment involving LAKES GAS COMPANY. PHMSA's enforcement data identifies the cited regulations as 192.605(b)(1),  192.619(a)(1),  192.805(a). The case was opened on 2019-11-25 and is reported as closed as of 2020-06-01. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320190007M_Closure Letter_06012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Closure%20Letter_06012020.pdf\n\n320190007M_Closure Letter_06012020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Closure%20Letter_06012020_text.pdf\n\n320190007M_Notice of Amendment_11252019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Notice%20of%20Amendment_11252019.pdf\n\n320190007M_Notice of Amendment_11252019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Notice%20of%20Amendment_11252019_text.pdf\n\n320190007M_Operator Response to Notice_03272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Operator%20Response%20to%20Notice_03272020.pdf\n\n320190007M_Closure Letter_06012020_text.pdf\n\nVIA ELECTRONIC MAIL TO: ssargeant@lakesgasco.com and danderson@lakesgasco.com\nJune 1, 2020\nSteve Sargeant\nPresident and Senior Executive\nLakes Gas Company\n655 South Lake Street\nForest Lake, MN 55025\nCPF 3-2019-0007M\nDear Mr. Sargeant:\nOn September 4-6, 2018, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Lakes\nGas Company’s (Lakes) operation and maintenance (O&M) and operator qualification (OQ)\nprocedures in Sturgeon Bay, Wisconsin. As a result of the inspection Lakes was issued a Notice\nof Amendment on November 25, 2019.\nLakes submitted its amended procedures on March 27, 2020. My staff reviewed the amended\nprocedures, and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nCopy: David Anderson, District Manager, danderson@lakesgasco.com, 26777 Fallbrook Ave.,\nWyoming, MN 55092\n\n320190007M_Notice of Amendment_11252019_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nNovember 25, 2019\nSteve Sargeant\nPresident and Senior Executive\nLakes Gas Company\n655 South Lake Street\nForest Lake, MN 55025\nCPF 3-2019-0007M\nDear Mr. Sargeant:\nOn September 4-6, 2018, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Lakes\nGas Company’s (Lakes) operation and maintenance (O&M) and operator qualification (OQ)\nprocedures in Sturgeon Bay, Wisconsin.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nLake’s plans or procedures, as described below:\n1. §192.605 Procedural manual for operations and maintenance, and emergencies\n(a) . . .\n(b) Maintenance and normal operations. The manual required by paragraph (a)\nof this section must include procedures for the following, if applicable, to provide\nsafety during maintenance and operations.\n\n\n\n(1) Operating, maintaining, and repairing the pipeline in accordance with each of\nthe requirements of this subpart and subpart M of this part.\n§192.619 Maximum allowable operating pressure: Steel or plastic pipelines\n(a) No person may operate a segment of steel or plastic pipeline at a pressure that\nexceeds a maximum allowable operating pressure determined under paragraph\n(c) or (d) of this section, or the lowest of the following:\n(1) The design pressure of the weakest element in the segment, determined in\naccordance with subparts C and D of this part. However, for steel pipe in\npipelines being converted under §192.14 or uprated under subpart K of this part,\nif any variable necessary to determine the design pressure under the design\nformula (§192.105) is unknown, one of the following pressures is to be used as\ndesign pressure:\nLakes O&M procedures did not specify “the design pressure of the weakest element in the\nsegment”1 as being a requirement for determining the maximum allowable operating pressure\nof its gas systems. Lakes must amend its procedures to include this requirement.\n2. §192.805 Qualification program.\nEach operator shall have and follow a written qualification program. The\nprogram shall include provisions to:\n(a) Identify covered tasks; . . .\nLakes OQ plan did not identify two covered tasks.2 The covered tasks of valve inspection and\npipe fitting were not listed in Lakes’ identified covered task list. Therefore, Lakes must\namend it covered task list and its qualification material to include these tasks.\n1 Pursuant to §192.619(a)(1), “no person may operate a segment of steel or plastic pipeline at a pressure that\nexceeds a maximum allowable operating pressure determined under paragraph (c) or (d) of this section, or the\nlowest of the following:\n(1) The design pressure of the weakest element in the segment, determined in accordance with subparts\nC and D of this part. . . .”\n2 Section 192.801(b) states that “a covered task is an activity, identified by the operator, that:\n(1) Is performed on a pipeline facility;\n(2) Is an operations or maintenance task;\n(3) Is performed as a requirement of this part; and\n(4) Affects the operation or integrity of the pipeline.”\n2\n\n\n\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged\nin this Notice without further notice to you and to issue an Order Directing Amendment. If\nyour plans or procedures are found inadequate as alleged in this Notice, you may be ordered to\namend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are\nnot contesting this Notice, we propose that you submit your amended procedures to my office\nwithin 30 days of receipt of this Notice. This period may be extended by written request for\ngood cause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested (not mandated) that Lakes Gas Company maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision\nof plans, procedures) and submit the total to Allan C. Beshore, Director, Central Region, OPS,\nPipeline and Hazardous Materials Safety Administration. In correspondence concerning this\nmatter, please refer to CPF 3-2019-0007M and, for each document you submit, please\nprovide a copy in electronic format whenever possible.\nSincerely,\nAllan C. Beshore\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n3","truncated":false,"body_characters":7949}