{"operation":"document","citation":"CPF 32021019WL","title":"BLUEWATER GAS STORAGE, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-03-05","effective_on":null,"summary":"CLOSED warning letter citing 192.227(a), 192.241(a)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021019wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021019wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021019wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021019WL","body":"Warning Letter involving BLUEWATER GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulations as 192.227(a),  192.241(a)(1). The case was opened on 2021-03-05 and is reported as closed as of 2021-03-05. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021019WL_Warning Letter_03052021_(21-203108).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021019WL/32021019WL_Warning%20Letter_03052021_(21-203108).pdf\n\n32021019WL_Warning Letter_03052021_(21-203108)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021019WL/32021019WL_Warning%20Letter_03052021_(21-203108)_text.pdf\n\n32021019WL_Warning Letter_03052021_(21-203108)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: Dan.Krueger@wecenergygroup.com and\nchislead@michigan.gov\nMarch 5, 2021\nMr. Dan Krueger\nPresident\nBluewater Gas Storage, LLC\n231 W. Michigan St\nP468\nMilwaukee, WI 53203\nCPF 3-2021-019-WL\nDear Mr. Krueger:\nOn March 3, 2021, a representative of the Michigan Public Service Commission (MIPSC) acting\nas an interstate agent for the Pipeline and Hazardous Materials Safety Administration (PHMSA),\npursuant to Chapter 601 of 49 United States Code, conducted a construction inspection of\nBluewater Gas Storage LLC's (BGS) in Highland Park, MI.\nAs a result of the inspection, it is alleged that you have committed probable violation(s) of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violation(s) are:\n1. § 192.227 - Qualification of welders and welding operators.\n(a) Except as provided in paragraph (b) of this section, each welder or welding operator\nmust be qualified in accordance with section 6, section 12, Appendix A or Appendix\nB of API Std 1104 (incorporated by reference, see § 192.7), or section IX of the\nASME Boiler and Pressure Vessel Code (ASME BPVC) (incorporated by reference,\nsee § 192.7). However, a welder or welding operator qualified under an earlier\nedition than the listed in § 192.7 of this part may weld but may not requalify under\nthat earlier edition.\n\n\n\nBGS did not qualify two welders in accordance to Section 6 of API Standard 1104.\nSpecifically, the welders did not satisfactorily complete the procedure qualification test.\nOn March 3, 2021, a MI PSC representative went to the John E Green’s facility in Highland\nPark MI to observe some welder qualifications for the upcoming construction work at the\nMacomb County compressor station. While observing the qualifications, it was noted that\none welder did not ensure that the maximum root opening of 3/32\" was not exceeded as\nrequired by procedure SMAW 60S-1. Upon checking the gap after the clamp was removed\nand the tacks were welded in, it was found that the gap was greater than 3/32\". However, the\nwelder was allowed to continue with the weld by the BGS Certified Welding Inspector\n(CWI). For the second welder, while observing the cap pass being put in, it was noted that\nthe welder was welding below the minimum amperage requirements for that pass and\nelectrode size. The welder was using a 5/32\" 7010 electrode for the cap and was consistently\nat 102 to 111 amps. The weld procedure SMAW 60S-1 requires the minimum amperage to\nbe 130 amps. Again, this welder was allowed to continue with the weld by the CWI.\n2. § 192.241 - Inspection and test of welds.\n(a) Visual inspection of welding must be conducted by an individual qualified by\nappropriate training and experience to ensure that:\n(1) The welding is performed in accordance with the welding procedure;\nBGS’s welding inspectors did not ensure that the welding was performed in accordance with\nthe welding procedure (SMAW 60S-1).\nDuring the welder qualification test, it was noted that for one welder, the root gap exceeded\nthe allowed maximum root opening of 3/32\". Although the CWI (Certified Weld Inspector)\ninitially indicated that the gap was correct, it was noted that the CWI’s measurement tool was\nbroken so he could not correctly verify that the root opening was correct. Subsequent checks\nby the MI PSC found that the root opening was exceeded. After an attempt to correct the\nroot opening which was unsuccessful, the welder was still allowed by the CWI to continue\nwith the weld.\nAdditionally, during the cap pass for the second welder, the CWI showed the MI-PSC the\namperage readings and noted that the readings were well below the minimum allowed on the\nprocedure. The readings were consistently 102-111 amps and the minimum allowed for that\n7010 electrode size (5/32\") was 130 amps. After discussion amongst the CWI inspectors, the\ndecision was made by the CWIs to allow the welder to complete the weld with no changes as\nthe CWIs did not feel the range specified in the procedure was adequate.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a\n2\n\n\n\nrelated series of violations. For violation occurring on or after July 31, 2019 and before January\n11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation\npersists, up to a maximum of $2,186,465 for a related series of violations. For violation\noccurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may\nnot exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679.\nFor violation occurring on or after November 2, 2015 and before November 27, 2018, the\nmaximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not\nto exceed $2,090,022.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the item(s) identified in this letter. Failure to do so will result in\nBluewater Gas Storage, LLC being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2021-019-WL. 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).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\nCC: David Chislea, Program Manager, Michigan Public Service Commission\n3","truncated":false,"body_characters":6858}