# LAKES GAS COMPANY — Notice of Amendment

- **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:** Not available
- **summary:** CLOSED notice of amendment citing 192.605(b)(1), 192.619(a)(1), 192.805(a).
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- **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.

Official case documents:

320190007M_Closure Letter_06012020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Closure%20Letter_06012020.pdf

320190007M_Closure Letter_06012020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Closure%20Letter_06012020_text.pdf

320190007M_Notice of Amendment_11252019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Notice%20of%20Amendment_11252019.pdf

320190007M_Notice of Amendment_11252019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Notice%20of%20Amendment_11252019_text.pdf

320190007M_Operator Response to Notice_03272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320190007M/320190007M_Operator%20Response%20to%20Notice_03272020.pdf

320190007M_Closure Letter_06012020_text.pdf

VIA ELECTRONIC MAIL TO: ssargeant@lakesgasco.com and danderson@lakesgasco.com
June 1, 2020
Steve Sargeant
President and Senior Executive
Lakes Gas Company
655 South Lake Street
Forest Lake, MN 55025
CPF 3-2019-0007M
Dear Mr. Sargeant:
On September 4-6, 2018, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Lakes
Gas Company’s (Lakes) operation and maintenance (O&M) and operator qualification (OQ)
procedures in Sturgeon Bay, Wisconsin. As a result of the inspection Lakes was issued a Notice
of Amendment on November 25, 2019.
Lakes submitted its amended procedures on March 27, 2020. My staff reviewed the amended
procedures, and it appears that the inadequacies outlined in this Notice of Amendment have been
corrected.
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
Copy: David Anderson, District Manager, danderson@lakesgasco.com, 26777 Fallbrook Ave.,
Wyoming, MN 55092

320190007M_Notice of Amendment_11252019_text.pdf

NOTICE OF AMENDMENT
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
November 25, 2019
Steve Sargeant
President and Senior Executive
Lakes Gas Company
655 South Lake Street
Forest Lake, MN 55025
CPF 3-2019-0007M
Dear Mr. Sargeant:
On September 4-6, 2018, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected Lakes
Gas Company’s (Lakes) operation and maintenance (O&M) and operator qualification (OQ)
procedures in Sturgeon Bay, Wisconsin.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
Lake’s plans or procedures, as described below:
1. §192.605 Procedural manual for operations and maintenance, and emergencies
(a) . . .
(b) Maintenance and normal operations. The manual required by paragraph (a)
of this section must include procedures for the following, if applicable, to provide
safety during maintenance and operations.



(1) Operating, maintaining, and repairing the pipeline in accordance with each of
the requirements of this subpart and subpart M of this part.
§192.619 Maximum allowable operating pressure: Steel or plastic pipelines
(a) No person may operate a segment of steel or plastic pipeline at a pressure that
exceeds a maximum allowable operating pressure determined under paragraph
(c) or (d) of this section, or the lowest of the following:
(1) The design pressure of the weakest element in the segment, determined in
accordance with subparts C and D of this part. However, for steel pipe in
pipelines being converted under §192.14 or uprated under subpart K of this part,
if any variable necessary to determine the design pressure under the design
formula (§192.105) is unknown, one of the following pressures is to be used as
design pressure:
Lakes O&M procedures did not specify “the design pressure of the weakest element in the
segment”1 as being a requirement for determining the maximum allowable operating pressure
of its gas systems. Lakes must amend its procedures to include this requirement.
2. §192.805 Qualification program.
Each operator shall have and follow a written qualification program. The
program shall include provisions to:
(a) Identify covered tasks; . . .
Lakes OQ plan did not identify two covered tasks.2 The covered tasks of valve inspection and
pipe fitting were not listed in Lakes’ identified covered task list. Therefore, Lakes must
amend it covered task list and its qualification material to include these tasks.
1 Pursuant to §192.619(a)(1), “no person may operate a segment of steel or plastic pipeline at a pressure that
exceeds a maximum allowable operating pressure determined under paragraph (c) or (d) of this section, or the
lowest of the following:
(1) The design pressure of the weakest element in the segment, determined in accordance with subparts
C and D of this part. . . .”
2 Section 192.801(b) states that “a covered task is an activity, identified by the operator, that:
(1) Is performed on a pipeline facility;
(2) Is an operations or maintenance task;
(3) Is performed as a requirement of this part; and
(4) Affects the operation or integrity of the pipeline.”
2



Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. 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 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).
Following the receipt of this Notice, you have 30 days to submit written comments, revised
procedures, or a request for a hearing under §190.211. 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 an Order Directing Amendment. If
your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to
amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are
not contesting this Notice, we propose that you submit your amended procedures to my office
within 30 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.
It is requested (not mandated) that Lakes Gas Company maintain documentation of the safety
improvement costs associated with fulfilling this Notice of Amendment (preparation/revision
of plans, procedures) and submit the total to Allan C. Beshore, Director, Central Region, OPS,
Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this
matter, please refer to CPF 3-2019-0007M and, for each document you submit, please
provide a copy in electronic format whenever possible.
Sincerely,
Allan C. Beshore
Director, Central Region, OPS
Pipeline and Hazardous Materials Safety Administration
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings
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