{"operation":"document","citation":"CPF 320205024","title":"SPIRE MISSOURI INC. EAST — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-11-30","effective_on":null,"summary":"CLOSED notice of probable violation citing 195.402(a), 195.436, 195.440(c), 195.446(c)(3), 195.452(b)(5), 195.452(h)(1)(ii), 195.452(l)(1)(ii), 195.505(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205024.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205024.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320205024","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320205024","body":"Notice of Probable Violation involving SPIRE MISSOURI INC. EAST. PHMSA's enforcement data identifies the cited regulations as 195.402(a),  195.436,  195.440(c),  195.446(c)(3),  195.452(b)(5),  195.452(h)(1)(ii),  195.452(l)(1)(ii),  195.505(b). The case was opened on 2020-11-30 and is reported as closed as of 2021-10-13. Proposed civil penalty: $139,800. Assessed civil penalty: $62,600. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320205024_Closure Letter_10132021_(19-167980S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Closure%20Letter_10132021_(19-167980S).pdf\n\n320205024_Closure Letter_10132021_(19-167980S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Closure%20Letter_10132021_(19-167980S)_text.pdf\n\n320205024_Consent Agreement and Order_04092021_(19-167980S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Consent%20Agreement%20and%20Order_04092021_(19-167980S).pdf\n\n320205024_Consent Agreement and Order_04092021_(19-167980S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Consent%20Agreement%20and%20Order_04092021_(19-167980S)_text.pdf\n\n320205024_NOPV PCP PCO_11302020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_NOPV%20PCP%20PCO_11302020.pdf\n\n320205024_NOPV PCP PCO_11302020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_NOPV%20PCP%20PCO_11302020_text.pdf\n\n320205024_Operator Response to Notice and Request for Hearing and Request Preliminary Statement of Issues_02012021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_Operator%20Response%20to%20Notice%20and%20Request%20for%20Hearing%20and%20Request%20Preliminary%20Statement%20of%20Issues_02012021.pdf\n\n320205024_PHC Hearing Scheduled_02182021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_PHC%20Hearing%20Scheduled_02182021.pdf\n\n320205024_PHC Hearing Scheduled_02182021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320205024/320205024_PHC%20Hearing%20Scheduled_02182021_text.pdf\n\n320205024_Closure Letter_10132021_(19-167980S)_text.pdf\n\nVIA ELECTRONIC MAIL TO: craig.hoeferlin@spireenergy.com and\nBob.Gardner@spireenergy.com\nOctober 13, 2021\nMr. Craig Hoeferlin\nVice President, Operations Services and SMS\nSpire Missouri Inc. East\n700 Market Street\nSt. Louis, Missouri 63101\nRe: CPF 3-2020-5024\nDear Mr. Hoeferlin:\nOn April 9, 2021, the Pipeline and Hazardous Materials Administration (PHMSA) issued to\nSpire Missouri Inc. East, a Consent Order incorporating the terms of the Consent Agreement\nbetween PHMSA and Spire Missouri Inc. East, which was executed on April 7, 2021 in the\nabove referenced case. Based on our review of the documentation provided and confirmation of\npayment of the civil penalty and schedule provided with respect to Item 5,6, 8 and 9 of the above\nreferenced case, it has been determined that you have complied with the terms of the Order.\nThis letter is to inform you no further action is necessary and this case is now closed. PHMSA\nwill conduct a specialized inspection in 2022 to review the above referenced items that have\nbeen scheduled to be completed by Spire Missouri Inc. East for Items 5, 6, 8 and 9 by September\n30, 2021.\nThank you for 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\n320205024_PHC Hearing Scheduled_02182021_text.pdf\n\nFebruary 18, 2021\nVIA ELECTRONIC MAIL TO: bsk@vnf.com and gregory.ochs@dot.gov\nMs. Bryn Karaus, Esq.\nCounsel for Spire Missouri Inc.\nVan Ness Feldman\n1050 Thomas Jefferson Street, NW\nSeventh Floor\nWashington, DC 20007\nMr. Gregory Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\n901 Locust Street, Suite 480\nKansas City, MO 64106-2641\nRe: Notice of Hearing, Spire Missouri Inc.\nCPF No. 3-2020-5024\nDear Ms. Karaus and Mr. Ochs:\nIn accordance with 49 C.F.R. § 190.211, an informal hearing will be held regarding the Notice of\nProbable Violation, Proposed Civil Penalty, and Proposed Compliance Order issued by the Pipeline\nand Hazardous Materials Safety Administration in the above-referenced case. The hearing will take\nplace on April 28, 2021, beginning at 8:30 a.m. Central Time.\nThe hearing will be held via videoconference. I will provide the videoconference information prior\nto the hearing. At least 10 calendar days prior to the hearing (or by April 19, 2021), both parties\nmust submit and exchange any additional written materials they intend to present at the hearing and\nthe name and email address of each attendee. This information should be provided electronically.\nMaterials not submitted by this date may be excluded.\nIf you have any questions, please do not hesitate to contact me.\nSincerely,\nLarry White\nPresiding Official\ncc: Mr. Scott Carter, President, Spire Missouri Inc., scott.carter@spireenergy.com\nMr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety,\njoseph.hainline@dot.gov\n\n320205024_NOPV PCP PCO_11302020_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: Suzanne.Sitherwood@spireenergy.com and\nBob.Gardner@spireenergy.com\nNovember 30, 2020\nMs. Suzanne Sitherwood\nPresident and Chief Executive Officer\nSpire Inc.\nSpire Missouri Inc. East\n700 Market Street\nSt. Louis, MO 63101\nSuzanne.Sitherwood@spireenergy.com\nCPF 3-2020-5024\nDear Ms. Sitherwood:\nFrom February 5, 2019 to June 21, 2019, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to\nChapter 601 of 49 United States Code (U.S.C.) inspected the Spire Inc. (Spire) Highly Volatile\nLiquid (HVL) pipeline system which contains propane and butane and is located in the St. Louis\narea (Missouri and Illinois).\nAs a result of the inspection, it is alleged that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\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\nmanual of written procedures for conducting normal operations and maintenance\nactivities and handling abnormal operations and emergencies. This manual shall be\nreviewed at intervals not exceeding 15 months, but at least once each calendar year,\nand appropriate changes made as necessary to insure that the manual is effective.\nThis manual shall be prepared before initial operations of a pipeline system\ncommence, and appropriate parts shall be kept at locations where operations and\nmaintenance activities are conducted.\nSpire failed to follow its own manual of written procedures for conducting normal\noperations and maintenance activities as required by §195.402(a). Specifically, Spire\nfailed to follow its operations and maintenance (O&M) NGL 2050 Procedure dated\nDecember 2017. The Procedure defines the valve inspection intervals as occurring in\nMay and November. However, records reviewed by PHMSA during the inspection show\nthat Spire conducted valve inspections outside of the defined intervals of May and\nNovember over multiple years. Below are the number of valve inspections that occurred\noutside of intervals defined in Spire’s O&M NGL 2050 Procedure.\nYear # of valves outside of May and November\n2015 63\n2016 16\n2017 30\n2018 20\nAccordingly, Spire failed to follow its O&M manual as required by §195.402(a).\n2. §195.436 Security of facilities.\nEach operator shall provide protection for each pumping station and breakout tank\narea and other exposed facility (such as scraper traps) from vandalism and\nunauthorized entry.\nSpire failed to provide protection for each pumping station and breakout tank area and\nother exposed facility from vandalism and unauthorized entry in accordance with\n§195.436. Specifically, Spire failed to provide protection for the Catalan Station located\nin St. Louis, Missouri from vandalism and unauthorized entry. This location has a scraper\ntrap (launcher) and other exposed facilities, measurement and vaporization. During the\ninspection, the PHMSA inspectors observed that the Catalan Station was fenced on three\nsides but the southeast side did not have a fence. During the inspection, PHMSA was\ninformed by the operator, that fencing on the southeast side was taken out when a\nwarehouse facility was built approximately 3 years ago. At the time of the inspection,\n2\n\n\n\nSpire had not replaced the fencing. Therefore, Spire failed to provide adequate protection\nfor the Catalan Station from vandalism and unauthorized entry.\n3. §195.440 Public awareness.\n(a) . . .\n(c) The operator must follow the general program recommendations, including\nbaseline and supplemental requirements of API RP 1162, unless the operator\nprovides justification in its program or procedural manual as to why compliance\nwith all or certain provisions of the recommended practice is not practicable and\nnot necessary for safety.\nSpire failed to follow the general program recommendations of API RP 1162 in\ndeveloping and implementing a written continuing public awareness program, and failing\nto provide justification in its program or procedural manual as to why compliance with\ncertain provisions of the recommended practice was not practicable and not necessary for\nsafety in accordance with §195.440(c). Specifically, Spire did not perform an\neffectiveness review inclusive of the HVL system as recommended by Section 8.4,\n“Measuring Program Effectiveness,” and Section 8.5, “Summary of Baseline Evaluation\nProgram,” of API RP 1162. During the inspection, Spire was unable to provide any\ndocumentation demonstrating that it performed an effectiveness review for its HVL\nsystem or justification why an effectiveness review was not practicable and not necessary\nfor safety.\n4. §195.446 Control room management.\n(a) . . .\n(c) Provide adequate information. Each operator must provide its controllers with\nthe information, tools, processes and procedures necessary for the controllers to\ncarry out the roles and responsibilities the operator has defined by performing each\nof the following:\n(1) . . .\n(3) Test and verify an internal communication plan to provide adequate means for\nmanual operation of the pipeline safely, at least once each calendar year, but at\nintervals not to exceed 15 months;\nSpire failed to test and verify its internal communication plan to provide adequate means\nfor manual operation of the pipeline safely, at least once each calendar year, but at\nintervals not to exceed 15 months as required by §195.446(c)(3). During the inspection,\nPHMSA reviewed the testing records of the internal communication plan. Spire\nproduced testing records from 2015, 2017 and 2018; however, were unable to produce\nany testing record from 2016. The 2015 test record indicated a test was conducted on\n11/13/2015 and the next available test record indicated a test was conducted on\n3\n\n\n\n5. 6. 5/10/2017, yet there was no test record for 2016. As such, Spire failed to test and verify\nits internal communication plan in calendar year 2016.\n§195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(b) What program and practices must\noperators use to manage pipeline integrity?\nEach operator of a pipeline covered by this section must:\n(1)…\n(5) Implement and follow the program.\nSpire failed to follow and implement its own IMP Plan. Specifically, Spire failed to\nmeasure the IMP’s effectiveness as required by §195.452(f)(7) and Section 11.3 of the\nIMP Plan. Spire was unable to produce records demonstrating that it measured the\neffectiveness of its IMP Plan. Therefore, Spire violated §195.452(b)(5) by failing to\nfollow and implement Section 11 (including specifics found in subsection 11.3) of its\nIMP Plan.\n§195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(f) What are the elements of an integrity management program? An integrity\nmanagement program begins with the initial framework. An operator must\ncontinually change the program to reflect operating experience, conclusions drawn\nfrom results of the integrity assessments, and other maintenance and surveillance\ndata, and evaluation of consequences of a failure on the high consequence area. An\noperator must include, at minimum, each of the following elements in its written\nintegrity management program:\n(1) . . .\n(3) An analysis that integrates all available information about the integrity of the\nentire pipeline and the consequences of a failure (see paragraph (g) of this section);\nSpire failed to integrate all available information concerning the integrity of the entire\npipeline and the consequences of failure. As the time of the inspection, Spire was not\nintegrating all available information as required by §195.452(f)(3) and Section 5.1 of\nSpire’s Integrity Management Program (IMP) Plan, dated December 16, 2018.\nA review of the current model in Spire’s IMP Plan showed that the operator did not\naddress or integrate all available information about known areas of alternating current\ninterference. The operator also failed to address all required risk factions identified in\n195.452(e) such as manufacturing information, seam type, local environmental factors\nthat could affect the pipeline (e.g., corrosivity of soil, subsidence, climatic) and geo-\ntechnical hazards. In addition, Spire could neither confirm verbally nor produce records\n4\n\n\n\n8. 7. at the time of the inspection to demonstrate whether or not low-frequency electric\nresistance weld pipe exists within the system. Therefore, Spire violated §195.452(f)(3)\nby failing to integrate all available information about the integrity of the entire pipeline\nand the consequences of failure.\n§195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\n(h) What actions must an operator take to address integrity issues?\n(1) General requirements. An operator must take prompt action to address all\nanomalous conditions the operator discovers through the integrity assessment or\ninformation analysis. In addressing all conditions, an operator must evaluate all\nanomalous conditions and remediate those that could reduce a pipeline's integrity.\nAn operator must be able to demonstrate that the remediation of the condition will\nensure the condition is unlikely to pose a threat to the long-term integrity of the\npipeline. An operator must comply with §195.422 when making a repair.\n(i) . . .\n(ii) Long-term pressure reduction. When a pressure reduction exceeds 365 days, the\noperator must notify PHMSA in accordance with paragraph (m) of this section and\nexplain the reasons for the delay. An operator must also take further remedial\naction to ensure the safety of the pipeline.\nSpire failed to submit a notification to PHMSA as required by §195.452(h)(1)(ii) when a\npressure reduction exceeded 365 days. A records review indicated a long-term pressure\nreduction as the result of an ILI investigation dig. Upon excavation of the line, a bolted\nrepair clamp was discovered and the pressure was reduced in October 2017. The operator\nreduced the maximum operating pressure (MOP) of the line to 519 psig; prior to\ndiscovery of the anomaly, the MOP was 533 psig. The anomaly was evaluated, but at the\ntime of PHMSA’s inspection, Spire had not yet remediated the bolted repair clamp due to\nthe location, which was more than 365 days after Spire had taken a pressure reduction.\nWhen the pressure reduction exceeded 365 days, Spire failed to notify PHMSA and\nexplain the reasons for the delay. Therefore, Spire violated §195.452(h)(1)(ii).\n§195.452 Pipeline integrity management in high consequence areas.\n(a) . . .\nintegrity?\n(1) . . .\n(j) What is a continual process of evaluation and assessment to maintain a pipeline's\n5\n\n\n\n(3) Assessment intervals. An operator must establish five-year intervals, not to\nexceed 68 months, for continually assessing the line pipe's integrity. An operator\nmust base the assessment intervals on the risk the line pipe poses to the high\nconsequence area to determine the priority for assessing the pipeline segments. An\noperator must establish the assessment intervals based on the factors specified in\nparagraph (e) of this section, the analysis of the results from the last integrity\nassessment, and the information analysis required by paragraph (g) of this section.\nSpire failed to establish the assessment schedule based on all risk factors that reflect the\nconditions on the pipeline segment. Spire currently considers the entire system to be a\nhigh consequence area (HCA) and has established a five-year interval for assessment.\nHowever, at the time of the inspection, records indicated that there is no integration of\ndata into the risk model to determine the assessment interval. Furthermore, Spire did not\nfollow the IMP per Section 8 Procedure for Continual Evaluation and Assessment of\nPipeline Integrity. Specifically, this section stated “These reassessment intervals for\nevaluation will not normally exceed 5 years and will be based upon the associated risk to\neach pipeline segment.” The risk model was initially run in 2004 and again in 2007 but\nrecords did not show that the risk model had been run since 2007. This was also\nconfirmed verbally by the operator during the inspection. Therefore, Spire violated\n§195.452(j)(3) by failing to base its assessment intervals on the risks that the pipeline\nsegment poses to an HCA.\n9. §195.505 Qualification program.\nEach operator shall have and follow a written qualification program. The program\nshall include provisions to:\n(a) . . .\n(b) Ensure through evaluation that individuals performing covered tasks are\nqualified;\nSpire failed to ensure through evaluation that qualified individuals were performing\ncovered tasks for the HVL system. At the time of the inspection, the supervisor for\nSpire’s HVL system commented that the Spire MOE Operator Qualification (OQ)\nProgram (incorporated into Spire’s O&M manual) was not being utilized to qualify\nindividuals performing covered tasks for the HVL system. Upon review of the Spire\nMOE OQ Program, PHMSA discovered that the following tasks were not identified in\nthe OQ Program, but have been documented to have been completed on the HVL system\nin a review of Spire’s records:\n Non-destructive testing (NDT)\n Hydrostatic Pressure testing\n Underwater leak survey\n Launching and Receiving in-line inspection (ILI) Tools\n Sonar\n6\n\n\n\nSpire also confirmed at the time of the inspection that individuals who performed the\nhydrotesting on the Catalan line segment as an integrity assessment method were not\nqualified for the covered task on July 13, 2015.\nProposed Civil Penalty\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a\nrelated series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per\nday, with a maximum penalty not to exceed $2,000,000 for a related series of violations. We\nhave reviewed the circumstances and supporting documentation involved for the above probable\nviolations and have recommended that you be preliminarily assessed a civil penalty of $139,800\nas follows:\nItem number\nPENALTY\nItem number 6\nItem number 7\nItem number 9\n$46,600\n$46,600\n$46,600\nWarning Items\nWith respect to items 1, 3, and 4, 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 promptly correct these items. Failure to\ndo so may result in additional enforcement action.\nProposed Compliance Order\nWith respect to items 2, 5, 6, 8, 9 pursuant to 49 U.S.C. § 60118, PHMSA proposes to issue a\nCompliance Order to Spire. Please refer to the Proposed Compliance Order, which is enclosed\nand made a part of this Notice.\nResponse to this Notice\nEnclosed as part of this Notice is a document entitled Response Options for Pipeline Operators\nin Enforcement Proceedings. Please refer to this document and note the response options. All\nmaterial submit in response to this enforcement action may be made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\n7\n\n\n\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, or request a\nhearing under 49 CFR § 190.211. If you do not respond within 30 days of receipt of this Notice,\nthis constitutes a waiver of your right to contest the allegations in this Notice and authorizes the\nAssociate Administrator for Pipeline Safety to find facts as alleged in this Notice without further\nnotice to you and to issue a Final Order. If you are responding to this Notice, we propose that\nyou submit your correspondence to my office within 30 days from the receipt of this Notice.\nThis period may be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 3-2020-5024 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Enforcement Proceedings\ncc: Mr. Bob Gardner, Director, Compliance & Pipeline Integrity, Spire Inc.,\nBob.Gardner@spireenergy.com\n8\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) proposes to issue to Spire Energy (Spire) a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of Spire with the\npipeline safety regulations:\n1. 2. 3. 4. 5. In regard to Item Number 2 of the Notice pertaining to the Catalan station, Spire\nmust fully secure the site to provide protection from vandalism and unauthorized\nentry. A schedule for completion of securing the station must be submitted to the\nDirector, Central Region within 30 days of the final order. Completion of this\nstation security shall not exceed 6 months from the issuance of the final order.\nIn regard to Item Number 5 of the Notice pertaining to Spire’s failure to perform\nan effectiveness review of the IMP program, Spire must measure the program’s\neffectiveness. A schedule for effectiveness review of the IMP program is to be\nsubmitted to the Director, Central Region within 30 days of the final order.\nCompletion of this review shall not exceed 6 months from the issuance of the\nfinal order.\nIn regard to Item Number 6 of the Notice pertaining to Spire’s failure to integrate\nall identified threats into the risk model, Spire must integrate all available\ninformation about the integrity of the entire pipeline and the consequences of a\nfailure. A schedule for completion of data integration into the risk model is to be\nsubmitted to the Director, Central Region within 30 days of the final order.\nCompletion of this integration shall not exceed 6 months from the issuance of the\nfinal order.\nIn regard to Item Number 8 of the Notice pertaining to establishment of the\nassessment schedule, Spire must establish the assessment schedule based on all\nrisk factors that reflect the conditions on the pipeline segment. A schedule for the\nassessment based on all risk factors that reflect the conditions on the pipeline\nsegment(s) is to be submitted to the Director, Central Region within 30 days of\nthe final order. Completion of the assessment schedule based on all risk factors\nshall not exceed 6 months from the issuance of the final order.\nIn regard to Item Number 9 of the Notice pertaining to identification of covered\ntasks, Spire shall revise the OQ program to address the HVL pipeline and\nassociated covered tasks. Spire will follow and ensure through evaluation that\nindividuals performing covered tasks are qualified per the revised OQ plan that\naddresses HVL pipelines. This revised OQ plan will be sent to the Director,\nCentral Region. Completion of this reviwed OQ plan shall not exceed 6 months\nfrom the issuance of the final order.\n9\n\n\n\n6. It is requested (not mandated) that Spire Inc. maintain documentation of the safety\nimprovement costs associated with fulfilling this Compliance Order and submit\nthe total to Greggory A. Ochs, Director, Central Region, Pipeline and Hazardous\nMaterials Safety Administration. It is requested that these costs be reported in\ntwo categories: 1) total cost associated with preparation/revision of plans,\nprocedures, studies and analyses, and 2) total cost associated with replacements,\nadditions and other changes to pipeline infrastructure.\n10\n\n320205024_Consent Agreement and Order_04092021_(19-167980S)_text.pdf\n\nApril 9, 2021\nVIA ELECTRONIC MAIL TO: craig.hoeferlin@spireenergy.com\nMr. Craig Hoeferlin\nVice President, Operations Services and SMS\nSpire Missouri Inc. East\n700 Market Street\nSt. Louis, Missouri 63101\nCPF No. 3-2020-5024\nDear Mr. Hoeferlin:\nEnclosed please find a Consent Order incorporating the terms of the Consent Agreement between\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA) and Spire Missouri Inc.\nEast, which was executed on April 7, 2021. Service of the Consent Order and Consent Agreement\nby electronic mail is deemed effective upon the date of transmission, or as otherwise provided\nunder 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure: Order and Consent Agreement\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMs. Bryn Karaus, Esq., Van Ness Feldman, Counsel for Spire Missouri Inc. East\nbsk@vnf.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nSpire Missouri Inc. East, ) CPF No. 3-2020-5024\na subsidiary of Spire, Inc. )\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT ORDER\nBy letter dated November 30, 2020, the Pipeline and Hazardous Materials Safety Administration,\nOffice of Pipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil\nPenalty and Proposed Compliance Order (Notice) to Spire Missouri Inc. East (Spire).\nIn response to the Notice, Spire contested the allegations and requested a hearing. Subsequently,\nPHMSA and Spire (collectively referred to as the Parties) agreed that the issues in the Notice\nmay be resolved through informal discussions. On March 17, 19, and 24, 2021, the Parties\nengaged in good-faith settlement discussions that have resulted in the Consent Agreement\nattached to this Order that settles all of the issues in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nOrder. Spire is hereby ordered to comply with the terms of the Consent Agreement, effective\nimmediately.\nPursuant to 49 U.S.C. 60101, et seq., failure to comply with this Consent Order may result in the\nassessment of civil penalties as set forth in 49 C.F.R. § 190.223.\nThe terms and conditions of this Consent Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nApril 9, 2021\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nSpire Missouri Inc. East, ) CPF No. 3-2020-5024\na subsidiary of Spire Inc. )\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom February 5, 2019 to June 21, 2019, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter\n601 of 49 United States Code (U.S.C.) inspected the Spire Missouri Inc. East’s (Spire or\nRespondent) Highly Volatile Liquid (HVL) pipeline system which contains propane and butane\nand is located in the St. Louis area (Missouri and Illinois).\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated November 30, 2020, a Notice of Probable Violation, Proposed Civil Penalty and\nProposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice\nproposed finding that Spire had violated nine provisions of 49 C.F.R. Part 195, and proposed\nordering Respondent to take certain measures to correct the alleged violations, and to pay a civil\npenalty in the amount of $139,800. Three of the alleged violations were brought as warning\nitems.\nAfter requesting and receiving an extension of time to respond to the Notice, Spire responded to\nthe Notice by letter dated February 1, 2021 (Response). Spire contested five of the allegations\nand requested a hearing. On March 17, 19, and 24, 2021, Spire and PHMSA (collectively the\nParties) met to discuss a possible resolution of the case in lieu of proceeding to a hearing.\nDuring each meeting, the Parties offered additional information regarding the allegations, and an\nagreement was reached that resolves all of the issues in the Notice.\nHaving agreed that settlement of this proceeding will avoid further administrative proceedings or\nlitigation and will serve the public interest by promoting safety and protection of the\nenvironment, pursuant to 49 C.F.R. Part 190, and upon consent and agreement of Spire and\nPHMSA, the Parties hereby agree as follows:\n\n\n\nI. General Provisions\n1. Respondent acknowledges that as the operator of the Highly Volatile Liquid\n(HVL) pipeline system located in the St. Louis area (Missouri and Illinois), Respondent and its\nreferenced HVL pipeline system are subject to the jurisdiction of the Federal pipeline safety\nlaws, 49 U.S.C. § 60101, et seq., and the regulations and administrative orders issued thereunder.\nFor purposes of this Agreement, Respondent acknowledges that it received proper notice of\nPHMSA's action in this proceeding and that the Notice states claims upon which relief may be\ngranted pursuant to 49 U.S.C. 60101, et seq., and the regulations and orders issued thereunder.\n2. After Spire returns this signed Agreement to PHMSA, the Agency’s representative\nwill present it to the Associate Administrator for Pipeline Safety, recommending that the\nAssociate Administrator adopt the terms of this Agreement by issuing an administrative order\n(Consent Order) incorporating the terms of this Agreement. The terms of this Agreement\nconstitute an offer of settlement until accepted by the Associate Administrator. Once accepted,\nthe Associate Administrator will issue a Consent Order incorporating the terms of this Agreement\n3. Respondent consents to the issuance of the Consent Order, and hereby waives any\nfurther procedural requirements with respect to its issuance. Respondent waives all rights to\ncontest the adequacy of notice, or the validity of the Consent Order or this Agreement, including\nall rights to administrative or judicial hearings or appeals, except as set forth herein.\n4. This Agreement shall apply to and be binding upon PHMSA and Spire, its officers,\ndirectors, and employees, and its successors, assigns, or other entities or persons otherwise bound\nby law. Respondent agrees to provide a copy of this Agreement and any incorporated work plans\nand schedules to all of Spire’s officers, employees, and agents whose duties might reasonably\ninclude compliance with this Agreement.\n5. This Agreement constitutes the final, complete and exclusive agreement and\nunderstanding between the Parties with respect to the settlement embodied in this Agreement.\nThe Parties acknowledge that there are no representations, agreements or understandings relating\nto settlement other than those expressly contained in this Agreement, except that the terms of this\nAgreement may be construed by reference to the Notice.\n6. Nothing in this Agreement affects or relieves Respondent of its responsibility to\ncomply with all applicable requirements of the Federal pipeline safety laws, 49 U.S.C. § 60101, et\nseq., and the regulations and orders issued thereunder. Nothing in this Agreement alters\nPHMSA's right of access, entry, inspection, and information gathering or PHMSA's authority to\nbring enforcement actions against Spire pursuant to the Federal pipeline safety laws, the\nregulations and orders issued thereunder, or any other provision of Federal or State law.\n7. For all transfers of ownership or operating responsibility of Spire’s HVL pipeline\nsystem referenced herein, Spire will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. Spire will provide written notice of the transfer\nto the PHMSA Central Regional Director no later than 60 days after the transfer occurs.\n8. This Agreement does not waive or modify any Federal, State, or local laws or\nregulations that are applicable to Respondent’s pipeline systems. This Agreement is not a permit,\n\n\n\nor a modification of any permit, under any Federal, State, or local laws or regulations. Spire\nremains responsible for achieving and maintaining compliance with all applicable Federal, State,\nand local laws, regulations and permits.\n9. This Agreement does not create rights in, or grant any cause of action to, any third\nparty not party to this Agreement. The U.S. Department of Transportation is not liable for any\ninjuries or damages to persons or property arising from acts or omissions of Respondent or its\nofficers, employees, or agents carrying out the work required by this Agreement. Spire agrees to\nhold harmless the U.S. Department of Transportation, its officers, employees, agents, and\nrepresentatives from any and all causes of action arising from any acts or omissions of\nRespondent or its contractors in carrying out any work required by this Agreement.\n10. Upon issuance of the Consent Order, the Parties agree to the following terms.\nII. Items 1, 3, and 4 of the Notice (Warning Items):\n12. Allegations of Violation – §§ 195.402(a) (Item 1); 195.440(c) (Item 3); and\n195.446(c)(3) (Item 4): With respect to Items 1, 3, and 4 of the Notice, these Items were issued\nas warning items in the Notice, requiring no further action by Spire. Spire did not contest these\nItems. As such, these Items remain as warning items as written in the Notice.\nIII. Item 2 of the Notice:\n13. Allegation of Violation - § 195.436: With respect to Item 2 of the Notice, the\nParties agree that Spire violated § 195.436, as alleged in the Notice, and shall be considered by\nPHMSA as a prior offense in any future PHMSA enforcement action taken against Spire.\n14. Compliance Order: With respect to Item 2 of the Notice, the Parties agree that\nSpire shall take the following actions:\nThe Notice proposed to require Spire to fully secure the site to provide protection from\nvandalism and unauthorized entry, and to complete this project within 6 months from issuance of\na final order. Spire has provided information to the Director that this work was completed in\nAugust 2020. Spire must provide documentation of the completion of this project to the Director\nwithin 30 days from issuance of the consent order.\nIV. Item 5 of the Notice:\n15. Allegation of Violation - § 195.452(b)(5): With respect to Item 5 of the Notice,\nthe Parties agree that Spire violated § 195.452(b)(5), as alleged in the Notice, and shall be\nconsidered by PHMSA as a prior offense in any future PHMSA enforcement action taken against\nSpire.\n16. Compliance Order: With respect to Item 5 of the Notice, the Parties agree that\nSpire shall take the following actions:\n\n\n\nSpire must measure the integrity management program’s effectiveness. A schedule for\neffectiveness review of the Integrity Management Program is to be submitted to the Director,\nCentral Region, within 30 days of issuance of the consent order. Completion of this review shall\nnot exceed 6 months from the issuance of the consent order.\nV. Items 6 and 8 of the Notice:\n17. Allegations of Violation - §§ 195.452(f)(3) (Item 6); and 195.452(j)(3) (Item 8):\nWith respect to Items 6 and 8 of the Notice, the Director, Central Region, has reviewed\nadditional information provided by Spire, considered clarifications of its operations that were\ndiscussed during the informal meetings, and determined that these Items should be amended and\ncombined into a single violation of § 195.452(l)(1)(ii). Spire agrees that it violated §\n195.452(l)(1)(ii) for its failure to maintain all documentation necessary to support decisions and\nanalyses, including any modifications, justifications, deviations and determinations made,\nvariances, and actions taken, to implement and evaluate each element of the integrity\nmanagement program, specifically its risk model. Spire further agrees that this violation shall be\nconsidered by PHMSA as a prior offense in any future PHMSA enforcement action taken against\nSpire.\n18. Civil Penalty: With respect to Spire’s violation of § 195.452(l)(1)(ii), as set forth\nabove in paragraph 17, the Parties agree that Spire shall pay a penalty in the amount of $16,000\nfor the violation. Spire must pay the civil penalty no later than 30 days from the Effective Date\nof this Agreement.\n19. Compliance Order: With respect to Spire’s violation of § 195.452(l)(1)(ii), as set\nforth above in paragraph 17, the Parties agree that Spire shall take the following actions:\nSpire must integrate all available information about the integrity of the entire pipeline and\nthe consequences of a failure into its integrity management program risk model. A schedule for\ncompletion of data integration into the risk model is to be submitted to the Director, Central\nRegion within 30 days of the final order. Completion of this integration shall not exceed 6\nmonths from the issuance of the consent order.\nSpire must also establish an assessment schedule based on all risk factors that reflect the\nconditions on the applicable pipeline segment(s). A schedule for establishing the assessment\nschedule based on all risk factors that reflect the conditions on the pipeline segment(s) is to be\nsubmitted to the Director, Central Region within 30 days of the final order. Completion of the\nassessment schedule based on all risk factors shall not exceed 6 months from the issuance of the\nconsent order.\nVI. Item 7 of the Notice:\n20. Allegation of Violation - § 195.452(h)(1)(ii): With respect to Item 7 of the\nNotice, the Director, Central Region, has reviewed additional information provided by Spire and\ndetermined that this Item should be withdrawn in its entirety. Spire provided PHMSA with\nadditional information that a pressure reduction exceeding 365 days did not occur, as alleged in\n\n\n\nthe Notice. As such, the allegation of violation for Item 7 and the related proposed civil penalty\nassociated with t","truncated":true,"body_characters":44091}