{"operation":"document","citation":"CPF 32021027NOPV","title":"NORTHERN NATURAL GAS CO — Notice of Probable Violation","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2021-04-28","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.465(b), 192.481(a), 192.605(a), 192.907(a), 192.935(c), 192.947(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021027nopv.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021027nopv.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32021027nopv","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32021027NOPV","body":"Notice of Probable Violation involving NORTHERN NATURAL GAS CO. PHMSA's enforcement data identifies the cited regulations as 192.465(b),  192.481(a),  192.605(a),  192.907(a),  192.935(c),  192.947(d). The case was opened on 2021-04-28 and is reported as closed as of 2022-02-15. Proposed civil penalty: $56,900. Assessed civil penalty: $46,700. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32021027NOPV_Closure Letter_02152022_(20-172215).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_Closure%20Letter_02152022_(20-172215).pdf\n\n32021027NOPV_Closure Letter_02152022_(20-172215)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_Closure%20Letter_02152022_(20-172215)_text.pdf\n\n32021027NOPV_Consent Agreement and Order_09102021_(20-172215).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_Consent%20Agreement%20and%20Order_09102021_(20-172215).pdf\n\n32021027NOPV_Consent Agreement and Order_09102021_(20-172215)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_Consent%20Agreement%20and%20Order_09102021_(20-172215)_text.pdf\n\n32021027NOPV_Op Rsp to Not Req Informal Conf Req Hrng Req Viol Rpt CP Wksht_05282021_(20-172215).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_Op%20Rsp%20to%20Not%20Req%20Informal%20Conf%20Req%20Hrng%20Req%20Viol%20Rpt%20CP%20Wksht_05282021_(20-172215).pdf\n\n32021027NOPV_PCP PCO_04282021_(20-172215).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_PCP%20PCO_04282021_(20-172215).pdf\n\n32021027NOPV_PCP PCO_04282021_(20-172215)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_PCP%20PCO_04282021_(20-172215)_text.pdf\n\n32021027NOPV_PHC Hearing Canceled_06022022_(20-172215).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_PHC%20Hearing%20Canceled_06022022_(20-172215).pdf\n\n32021027NOPV_PHC Hearing Canceled_06022022_(20-172215)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_PHC%20Hearing%20Canceled_06022022_(20-172215)_text.pdf\n\n32021027NOPV_PHC Hearing Scheduled_06152021_(20-172215).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_PHC%20Hearing%20Scheduled_06152021_(20-172215).pdf\n\n32021027NOPV_PHC Hearing Scheduled_06152021_(20-172215)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32021027NOPV/32021027NOPV_PHC%20Hearing%20Scheduled_06152021_(20-172215)_text.pdf\n\n32021027NOPV_PHC Hearing Canceled_06022022_(20-172215)_text.pdf\n\nDate: June 2, 2022\nFrom: Ryan McClure\nTo: File\nRe: Withdrawal of Hearing Request, Northern Natural Gas Co.\n3-2021-027-NOPV\nOn September 1, 2021, Northern Natural Gas Co., by email, withdrew its request for a hearing\nfor 3-2021-027-NOPV, which it submitted on May 28, 2021. The hearing, scheduled for\nSeptember 8, 2021, has been cancelled.\n\n32021027NOPV_Closure Letter_02152022_(20-172215)_text.pdf\n\nVIA ELECTRONIC MAIL TO: mark.hewett@nngco.com and thomas.correll@nngco.com\nFebruary 15, 2022\nMark Hewett\nPresident and CEO\nNorthern Natural Gas Company\n1111 S. 103rd Street\nOmaha, NE 68124\nRe: CPF 3-2021-027-NOPV\nDear Mr. Hewett:\nOn September 10, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA)\nissued to Northern Natural Gas Company a Consent Order in the above-referenced case. This\nOrder included a Consent Agreement. Based on our review of the documentation you provided\nand confirmation of payment of the civil penalty, it has been determined that you have complied\nwith the terms of this Order.\nAccordingly, this case is now closed and no further action is contemplated with respect to the\nmatters involved in this case. Thank you for your cooperation in this matter.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nCc: Thomas Correll, Director Pipeline Safety, Northern Natural Gas, thomas.correll@nngco.com\n\n32021027NOPV_Consent Agreement and Order_09102021_(20-172215)_text.pdf\n\nSeptember 10, 2021\nVIA ELECTRONIC MAIL TO: royce.ramsay@nngco.com\nRoyce Ramsay\nVice President, Operations\nNorthern Natural Gas Company\n1111 South 103rd Street\nOmaha, Nebraska 68124\nCPF No. 3-2021-027-NOPV\nDear Mr. Ramsay:\nEnclosed please find a Consent Order incorporating the terms of the fully executed Consent\nAgreement between the Pipeline and Hazardous Materials Safety Administration (PHMSA) and\nNorthern Natural Gas Company, which was executed on September 7, 2021. Service of the\nConsent Order and Consent Agreement by electronic mail is deemed effective upon the date of\ntransmission, or as otherwise provided under 49 C.F.R. § 190.5.\nSincerely,\nAlan K Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosures: Consent Agreement and Consent Order\nCc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Tom Correll, Vice President, Pipeline Safety and Risk, Northern Natural Gas Co.,\nthomas.correll@nngco.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 )\nNorthern Natural Gas Company, ) CPF No. 3-2021-027-NOPV\n)\n)\n)\nRespondent. )\n________________________________________)\nCONSENT ORDER\nBy letter dated April 28, 2021, the Pipeline and Hazardous Materials Safety Administration, Office of\nPipeline Safety (PHMSA), issued a Notice of Probable Violation, Proposed Civil Penalty and Proposed\nCompliance Order (Notice) to Norther Natural Gas Company (NNG or Respondent).\nIn response to the Notice, NNG contested certain allegations in the Notice and requested a hearing.\nSubsequently, PHMSA and NNG (collectively referred to as the Parties) agreed that the issues in the\nNotice may be resolved through informal discussions. On July 23, 2021, the Parties engaged in good-\nfaith settlement discussions that have resulted in the Consent Agreement attached to this Order that settles\nall of the issues in the Notice.\nAccordingly, the Consent Agreement is hereby approved and incorporated by reference into this\nOrder. NNG 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.\nSeptember 10, 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 )\nNorthern Natural Gas Company, ) CPF No. 3-2021-027 NOPV\n)\n)\n)\nRespondent. )\n____________________________________)\nCONSENT AGREEMENT\nFrom February 10, 2020 through May 22, 2020, 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 procedures, records and natural gas facilities\nof Northern Natural Gas Company (NNG or Respondent) in Omaha, Nebraska.\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated April 28, 2021, 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 NNG had violated eight provisions of 49 C.F.R. Part 192, and proposed\nordering Respondent to take certain measures to correct the alleged violations, and to pay a civil\npenalty in the amount of $56,900. Four of the alleged violations were brought as warning items.\nOn May 28, 2021, NNG responded to the Notice and requested a hearing on Items 1, 3, and 7 of\nthe Notice (Response). In its Response, NNG also requested an informal meeting to discuss the\nchallenged Items of the Notice in advance of a hearing. On July 23, 2021, NNG and PHMSA\n(collectively the Parties) met telephonically to discuss a possible resolution of the case in lieu of\nproceeding to a hearing. During the meeting, the Parties offered additional information\nregarding the allegations, and an agreement was reached that resolves all of the issues in the\nNotice.\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 NNG and\nPHMSA, the Parties hereby agree as follows:\n\n\n\nI. General Provisions\n1. Respondent acknowledges that as the operator of the as the operator of the\npipeline facilities subject to the Notice, Respondent and its referenced natural gas pipeline\nfacilities are subject to the jurisdiction of the Federal pipeline safety laws, 49 U.S.C. § 60101, et\nseq., and the regulations and administrative orders issued thereunder. For purposes of this\nAgreement, Respondent acknowledges that it received proper notice of PHMSA's action in this\nproceeding and that the Notice states claims upon which relief may be granted pursuant to 49\nU.S.C. 60101, et seq., and the regulations and orders issued thereunder.\n2. After NNG 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 NNG, its\nofficers, directors, and employees, and its successors, assigns, or other entities or persons\notherwise bound by law. Respondent agrees to provide a copy of this Agreement and any\nincorporated work plans and schedules to all of NNG’s officers, employees, and agents whose\nduties might reasonably include 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 NNG 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 NNG’s pipeline\nsystem referenced herein, NNG will provide a copy of this Agreement to the prospective\ntransferee at least 30 days prior to such transfer. NNG will provide written notice of the transfer\nto the PHMSA Central Regional Director no later than 60 days after the transfer occurs.\n\n\n\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,\nor a modification of any permit, under any Federal, State, or local laws or regulations. NNG\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. NG 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 4, 5, 6, and 8 of the Notice (Warning Items):\n12. Allegations of Violation – §§ 192.605(a) (Items 4 and 5); 192.907(a) (Item 6);\nand 192.947(d) (Item 8): With respect to Items 4, 5, 6, and 8 of the Notice, these Items were\nissued as warning items in the Notice, requiring no further action by NNG. NNG did not contest\nthese Items. As such, these Items remain as warning items as written in the Notice.\nIII. Item 2 of the Notice:\n13. Allegation of Violation - § 192.481(a): With respect to Item 2 of the Notice, the\nParties agree that NNG violated § 192.481(a), as alleged in the Notice. This violation shall be\nconsidered by PHMSA as a prior offense in any future PHMSA enforcement action taken against\nNNG.\n14. Compliance Order for Item 2: With respect to Item 2 of the Notice, the Parties\nagree that NNG shall take the following actions, to be completed within 180 days from the\nEffective Date of this Agreement:\nThe Notice proposed to require NNG to perform an adequate visual inspection of all 38\nsites identified in the Notice by paying special attention to pipe hidden under the floors of each\nfacility, removing the floor or obstruction if necessary, and provide evidence of the completed\ninspections to the Director, PHMSA Central Region. Based on the findings of the visual\ninspections, schedule necessary remediation or repair to all pipe and facilities and provide the\nschedule and description of proposed repairs to the Director, PHMSA Central Region.\nIV. Contested Items 1, 3, and 7 of the Notice:\n15. Contested Item 1 - Allegation of Violation - § 192.465(b): With respect to Item 1\nof the Notice, the Parties agree that NNG violated § 192.465(b), as alleged in the Notice subject\nto the revisions below. This violation shall be considered by PHMSA as a prior offense in any\nfuture PHMSA enforcement action taken against NNG.\n\n\n\n16. Civil Penalty for Item 1: The notice alleged nine instances of violation for this\nItem. During the informal meeting between the Parties, NNG provided additional documentation\nfor PHMSA review showing that the instances of violation should be reduced from nine to four.\nPHMSA’s review of NNG documentation confirmed that the instances of violation for this Item\nshould be reduced to four.\nThe civil penalty for this Item shall be reduced from the proposed amount in the Notice\nof $25,200 to $15,000 for Item 1.\n17. Contested Item 3 – Allegation of Violation - § 192.605(a): With respect to Item\n3 of the Notice, NNG initially contested this Item in its Response, however, after the Parties met\ninformally, NNG agreed to drop its objection to this allegation of violation. As such, the Parties\nagree that NNG violated § 192.605(a), as alleged in the Notice. This violation shall be\nconsidered by PHMSA as a prior offense in any future PHMSA enforcement action taken against\nNNG.\n18. for this violation.\nCivil Penalty for Item 3: NNG shall pay a civil penalty in the amount of $31,700\n19. Contested Item 7 - Allegation of Violation - § 192.935(c): With respect to Item 7\nof the Notice, NNG did not contest the underlying allegation of violation, but objected to the\nscope of the Proposed Compliance Order. Specifically, NNG objected to the Proposed\nCompliance Order on the grounds that the actions proposed are already required to be performed\nby NNG under a separate PHMSA Final Order in CPF No. 4-2020-1008. After consultation\nbetween the Parties, it was clarified and agreed that the scope of the Proposed Compliance Order\nis limited to facilities located in or around Omaha and Lincoln, Nebraska.\nAs such, the Parties agree that NNG violated § 192.935(c), as alleged in the Notice. This\nviolation shall be considered by PHMSA as a prior offense in any future PHMSA enforcement\naction taken against NNG.\n20. Compliance Order for Item 7: In regard to Item number 7 of the Notice\npertaining to performing a risk analysis to determine the effectiveness of ASVs and RCVs, NNG\nmust perform a thorough analysis for the population HCA areas in SE Nebraska near Omaha and\nLincoln based on a consideration of, at a minimum, the criteria set forth in § 192.935(c). NNG\nmust complete the analysis and provide evidence of its determinations to the Director, PHMSA\nCentral Region, within 180 days of Effective Date of this Agreement.\nV. Enforcement\n21. This Agreement is subject to all enforcement authorities available to PHMSA\nunder 49 U.S.C. § 60101, et seq., and 49 C.F.R. Part 190, including administrative civil penalties\nunder 49 U.S.C. § 60122, of up to $222,504 per violation for each day the violation continues and\nreferral of the case to the Attorney General for judicial enforcement, if PHMSA determines that\nRespondent is not complying with the terms of this Agreement in accordance with determinations\n\n\n\nmade by the Director, or if appealed, in accordance with decisions of the Associate Administrator.\nThe maximum civil penalty amounts are adjusted annually for inflation. See, e.g., Pipeline\nSafety: Inflation Adjustment of Maximum Civil Penalties, 82 Fed. Reg. 19325 (April 27, 2017).\nVI. Dispute Resolution\n22. The Director and NNG will informally attempt to resolve any disputes arising\nunder this Agreement, including but not limited to any decision of the Director. If NNG and the\nDirector are unable to informally resolve the dispute within 15 calendar days after the dispute is\nfirst raised, in writing, to the Director, NNG may submit a written request for a determination\nresolving the dispute from the Associate Administrator for Pipeline Safety, PHMSA. Such\nrequest must be made in writing and provided to the Director, counsel for the Central Region, and\nto the Associate Administrator for Pipeline Safety, no later than 10 calendar days from the 15 day\ndeadline for informal resolution referenced in this paragraph. Along with its request, NNG must\nprovide the Associate Administrator with all information NNG believes is relevant to the dispute.\nDecisions of the Associate Administrator under this paragraph will constitute final agency action.\nThe existence of a dispute and PHMSA’s consideration of matters placed in dispute will not\nexcuse, toll, or suspend any term or timeframe for completion of any work to be performed under\nthis Agreement during the pendency of the dispute resolution process, except as agreed by the\nDirector or the Associate Administrator in writing, or ordered by a court of competent\njurisdiction.\nVII. Effective Date\n23. The term “Effective Date,” as used herein, is the date on which the Consent Order\nis issued by the Associate Administrator, PHMSA, incorporating the terms of this Agreement.\nVIII. Modification\n24. The terms of this Agreement may be modified by mutual agreement of the Parties.\nSuch modifications must be in writing and signed by both parties.\nIX. Ratification\n25. The Parties’ undersigned representatives certify that they are fully authorized to\nenter into the terms and conditions of this Agreement and to execute and legally bind such party\nto this document.\n26. The Parties hereby agree to all conditions and terms of this Agreement.\n[Signature Lines on Following Page]\n\n\n\nFor Northern Natural Gas Company:\n___________________________________\n___________________________________\nDate\nFor PHMSA:\n___________________________________\nGregory Ochs, Director, Central Region\n___________________________________\nDate\n\n32021027NOPV_PHC Hearing Scheduled_06152021_(20-172215)_text.pdf\n\nJune 15, 2021\nVIA ELECTRONIC MAIL TO: thomas.correll@nngco.com and gregory.ochs@dot.gov\nMr. Thomas Correll\nVice President, Pipeline Safety and Risk\nNorthern Natural Gas Company\n1111 South 103rd Street\nOmaha, NE 68116\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, Northern Natural Gas Company\nCPF No. 3-2021-027-NOPV\nDear Mr. Correll 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 September 8, 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 August 29, 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,\nKristin Baldwin\nPresiding Official\ncc: Mr. Joseph Hainline, Counsel, Central Region, Office of Pipeline Safety, PHMSA,\njoseph.hainline@dot.gov","truncated":false,"body_characters":22307}