{"operation":"document","citation":"CPF 320205011M","title":"SPIRE MISSOURI INC. EAST — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-07-28","effective_on":null,"summary":"CLOSED notice of amendment citing 195.402(a), 195.402(c)(2), 195.402(c)(3), 195.402(f), 195.452(b)(2), 195.505(a), 195.55, 195.591.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205011m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205011m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205011m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205011M","body":"Notice of Amendment involving SPIRE MISSOURI INC. EAST. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.402(c)(2),  195.402(c)(3),  195.402(f),  195.452(b)(2),  195.505(a),  195.55,  195.591. The case was opened on 2020-07-28 and is reported as closed as of 2020-11-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205011M_Closure Letter_11122020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205011M/320205011M_Closure%20Letter_11122020.pdf\n\n320205011M_Closure Letter_11122020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205011M/320205011M_Closure%20Letter_11122020_text.pdf\n\n320205011M_Notice of Amendment_07282020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205011M/320205011M_Notice%20of%20Amendment_07282020.pdf\n\n320205011M_Notice of Amendment_07282020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205011M/320205011M_Notice%20of%20Amendment_07282020_text.pdf\n\n320205011M_Operator Response to Notice_08272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205011M/320205011M_Operator%20Response%20to%20Notice_08272020.pdf\n\n320205011M_Closure Letter_11122020_text.pdf\n\nVIA ELECTRONIC MAIL TO: Suzanne.Sitherwood@spireenergy.com and\nCraig.Hoeferlin@spireenergy.com\nNovember 12, 2020\nMs. Suzanne Sitherwood\nPresident and Chief Executive Officer\nSpire Energy\n700 Market St.\nSt. Louis, MO 63101\nRe: CPF 3-2020-5011M\nDear Ms. Sitherwood:\nFrom January 10, 2019 to June 21, 2019, representatives from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of Spire Energy’s (Spire), procedures in St.\nLouis, MO. As a result of the inspection, Spire was issued a Notice of Amendment on July 28,\n2020, which proposed amendment of your procedures.\nSpire submitted its amended procedures on September 10 and November 10 of 2020. My staff\nreviewed the amended procedures, and it appears that the inadequacies outlined in this Notice of\nAmendment have been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: Bob Gardner, Director, Compliance & Pipeline Integrity, Bob.Gardner@spireenergy.com\n\n320205011M_Notice of Amendment_07282020_text.pdf\n\nNOTICE OF AMENDMENT\nVIA ELECTRONIC MAIL TO: Suzanne.Sitherwood@spirenergy.com and\nCraig.Hoeferlin@spireenergy.com\nJuly 28, 2020\nMs. Suzanne Sitherwood\nPresident and Chief Executive Officer\nSpire Energy\n700 Market St.\nSt. Louis, MO 63101\nCPF 3-2020-5011M\nDear Ms. Sitherwood:\nFrom January 10, 2019 to June 21, 2019, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code\ninspected Spire Energy’s (Spire) procedures for operation and maintenance (O&M), control\nroom management (CRM), integrity management (IMP), and operator qualification (OQ)\nprocedures for the HVL system in St. Louis, MO.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nSpire’s plans or procedures, as described below:\n\n\n\n1. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline system a manual\nof written procedures for conducting normal operations and maintenance activities and\nhandling abnormal operations and emergencies. This manual shall be reviewed at\nintervals not exceeding 15 months, but at least once each calendar year, and appropriate\nchanges made as necessary to insure that the manual is effective. This manual shall be\nprepared before initial operations of a pipeline system commence, and appropriate parts\nshall be kept at locations where operations and maintenance activities are conducted.\nSpire’s O&M was inadequate because its procedures for operating and maintaining the pipeline\nsystem did not sufficiently address the requirements of subparts F and H. Specifically, Spire’s\nO&M procedure, titled Pressure Testing of Highly Volatile Liquid (HVL) Mains NGL-14501M,\ndated December 31, 2018, was inadequate because it did not clearly identify what was applicable\nto an HVL pipeline versus a natural gas pipeline. Additionally, class locations were\ninappropriately referenced, maximum allowable operating pressure (MAOP) was used as\nopposed to maximum operating pressure (MOP), and there was an incorrect reference to low\nstress pressure testing that would not be allowed for an HVL pipeline. Furthermore, the\nprocedure did not clearly identify what is required of a successful pressure test for an HVL\npipeline under the Part 195 regulations. The procedure must be modified to delineate what is\napplicable in the O&M to HVLs; to remove reference to class locations; to appropriately\nreference MOP instead of MAOP; to remove the incorrect reference to a low stress pressure test\non a HVL pipeline; and to identify what is required for a successful pressure test for a HVL\npipeline.\nSpire’s O&M was also inadequate because Section 424 Pipeline Movement did not address how\nto prevent the movement of pipelines that carry HVLs where materials in the line section\ninvolved are joined by welding as required by § 195.424(c). Spire must amend its procedure to\naddress how to prevent pipe movement in accordance with § 195.424(c).\nFurthermore, Spire failed to have a procedure for inspection of pipelines when the pipeline could\nhave been damaged by excavation activities. Spire’s O&M Section 442 Damage Prevention\nrefers to Appendix H to be used when pipe is damaged. However, the procedures in Appendix H\nare for mains, services, and appliances. Therefore, Spire must amend its procedure to include\ninspections when damage could have occurred due to excavation on HVL pipelines.\nFinally, Spire’s O&M procedure NGL-12000M Section 5.4.1 of the corrosion control standard is\ninadequate because it includes references to § 192.469 but does not include references to §\n195.567. Spire must amend its procedure to reference § 195.567 for its HVL pipelines.\n2\n\n\n\n2. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(2) Gathering of data needed for reporting accidents under Subpart B of this part in a\ntimely and effective manner.\nSpire’s O&M manual is inadequate because it contained a previous version of the PHMSA\naccident report. An older version of the accident report had been embedded in the O&M\nAppendix C. This procedure has since been updated by the operator to link to the current\nPHMSA accident report information. The operator updated this during the inspection therefore\nno further action is needed.\n3. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(c) Maintenance and normal operations. The manual required by paragraph (a) of this\nsection must include procedures for the following to provide safety during maintenance\nand normal operations:\n(3) Operating, maintaining, and repairing the pipeline system in accordance with each of\nthe requirements of this subpart and subpart H of this part.\nSpire’s Corrosion Control Standard in the O&M is inadequate because Sections 6.2, 6.3, 8.1 and\nProcedure NGL 2055 are inconsistent in regards inspection frequencies.\nSpire’s procedure NGL-12000M of the Corrosion Control Standard Section 5.3.3 of the O&M is\ninadequate because it does not provide clear steps when excess AC voltage is determined. It\nstates that readings in excess of 10 volts AC shall be referred to the Compliance Engineer for\nfurther review and remediation as appropriate. However, it is unclear from the procedures how\nthe corrosion department and the compliance department will interface to remediate this\ncondition should it be identified. During the field visit, a voltage reading was taken at Post 386\nthat was in excess of 10 volts AC. In discussion with the operator, it was unclear as to what steps\nthat it would take pursuant to its O&M procedure. Therefore, Spire must amend its Corrosion\nControl Standard procedure to adequately address how the corrosion department and compliance\ndepartment will interact to ensure that any reading in excess of 10 volts will be remediated.\n3\n\n\n\n4. §195.402 Procedural manual for operations, maintenance, and emergencies.\n(f) Safety-related condition reports. The manual required by paragraph (a) of this\nsection must include instructions enabling personnel who perform operation and\nmaintenance activities to recognize conditions that potentially may be safety-related\nconditions that are subject to the reporting requirements of §195.55.\n§195.55 Reporting safety-related conditions.\n(a) Except as provided in paragraph (b) of this section, each operator shall report in\naccordance with § 195.56 the existence of any of the following safety-related conditions\ninvolving pipelines in service: . . .\n(b) A report is not required for any safety-related condition that -\n(1) Exists on a pipeline that is more than 220 yards (200 meters) from any building\nintended for human occupancy or outdoor place of assembly, except that reports are\nrequired for conditions within the right-of-way of an active railroad, paved road, street,\nor highway, or that occur offshore or at onshore locations where a loss of hazardous\nliquid could reasonably be expected to pollute any stream, river, lake, reservoir, or other\nbody of water;\n(2) Is an accident that is required to be reported under § 195.50 or results in such an\naccident before the deadline for filing the safety-related condition report; or\n(3) Is corrected by repair or replacement in accordance with applicable safety standards\nbefore the deadline for filing the safety-related condition report, except that reports are\nrequired for all conditions under paragraph (a)(1) of this section other than localized\ncorrosion pitting on an effectively coated and cathodically protected pipeline.\nSpire’s O&M Manual, Section 55 Reporting Safety-Related Conditions, is inadequate because it\ndoes not appropriately address the requirements of §195.55(b)(3). Spire’s procedure does not\nadequately include the following exception of §195.55(b)(3), which is that a safety related\ncondition report is not required when the condition \"is corrected by repair or replacement in\naccordance with the applicable safety standards before the deadline for filing the safety-related\ncondition report\". Additionally, §§ 195.55(b)(2) and (b)(3) were combined incorrectly in the\nprocedure. Therefore, Spire must amend its O&M procedure to adequately address all\nrequirements under 195.55 and separately reference the exceptions of §§ 195.55(b)(2) and (b)(3).\n4\n\n\n\n5. §195.452 Pipeline integrity management in high consequence areas.\n(b) What program and practices must operators use to manage pipeline integrity? Each\noperator of a pipeline covered by this section must:\n(2) Include in the program an identification of each pipeline or pipeline segment in the\nfirst column of the following table not later than the date in the second column:\nPipeline Date\nCategory 1 December 31, 2001.\nCategory 2 November 18, 2002.\nCategory 3 Date the pipeline begins operation.\nSpire’s IMP did not include a process for the identification of Category 3 pipelines per\n§195.452(b)(2). While this HVL pipeline is not a Category 3 pipeline, Spire must amend its IMP\nto include the requirement for Category 3 pipeline segment identification.\n6. §195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program shall\ninclude provisions to:\n(a) Identify covered tasks;\nSpire’s written OQ program did not adequately identify covered tasks for the HVL pipeline\nsystem. While OQ task numbers and descriptions of tasks do exist, the program is written\nexplicitly for natural gas pipeline qualifications. The OQ plan and the covered tasks associated\nhave not been sufficiently developed for the HVL pipeline. Therefore, Spire must amend its\nwritten OQ program to adequately identify covered tasks for its HVL pipeline.\n7. §195.591 In-Line inspection of pipelines.\nWhen conducting in-line inspection of pipelines required by this part, each operator\nmust comply with the requirements and recommendations of API Std 1163, Inline\nInspection Systems Qualification Standard; ANSI/ASNT ILI-PQ, Inline Inspection\nPersonnel Qualification and Certification; and NACE SP0102-2010, Inline Inspection of\nPipelines (incorporated by reference, see §195.3). An in-line inspection may also be\nconducted using tethered or remote control tools provided they generally comply with\nthose sections of NACE SP0102-2010 that are applicable.\nSpire’s IMP did not reference nor incorporated API Std 1163 as required by §195.591. During\nthe inspection, PHMSA discussed ILI vendor contract requirements with the operator and the\noperator confirmed that API 1163 is not currently listed as a vendor contract requirement.\nTherefore, Spire must amend its IMP to reference the edition of API Std 1163 that is\nincorporated by reference in §195.591 regarding ILI inspection of pipelines.\n5\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 as\npart 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 for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust 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 information\nqualifies 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 of\nreceipt 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 in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n45 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested (not mandated) that Spire Energy maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Allan C. Beshore, Director, Central, Pipeline and\nHazardous Materials Safety Administration. In correspondence concerning this matter, please\nrefer to CPF 3-2020-5011M and, for each document you submit, please provide a copy in\nelectronic format whenever possible.\nSincerely,\nAllan C. Beshore\nDirector, Central\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\n6","truncated":false,"body_characters":15896}