NORTHERN NATURAL GAS CO — Notice of Probable Violation

party submissionOfficial PDF320211002_Operator Response to Notice (Updated)_04022021_(18-163923S).pdf#

party submissionOfficial PDF320211002_Operator Response to Notice_03302021_(18-163923S).pdf#

320211002_NOPV PCP PCO_03022021_text.pdf, page 1Official PDFNOTICE OF PROBABLE VIOLATION PROPOSED CIVIL PENALTY and PROPOSED COMPLIANCE ORDER VIA ELECTRONIC MAIL TO: mark.hewett@nngco.com and royce.ramsay@nngco.com March 2, 2021 Mr. Mark Hewett President & CEO Northern Natural Gas Company 1111 South 103rd Street Omaha, NE 68124 CPF 3-2021-1002 Dear Mr. Hewett: During a period between May 13 and August 22, 2019 a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) and state agents from Michigan, Iowa and Minnesota pursuant to Chapter 601 of 49 United States Code inspected Northern Natural Gas Company (Northern Natural) procedures for Operations, Maintenance, Control Room, Integrity Management, and Public Awareness in Omaha, Nebraska, as well as its gas pipeline system facilities located in Iowa, Minnesota, Wisconsin and Michigan. As a result of the inspection, it is alleged that you have committed probable violations of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected and the probable violations are:#

320211002_NOPV PCP PCO_03022021_text.pdf, page 21. § 192.605 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted. Northern Natural failed to follow a written procedure for conducting operations and maintenance activities and for emergency response. Specifically, Northern Natural failed to follow its procedure, Engineering Standard 7570 “Joining of Pipe & Piping Components Other Than by Welding” (Revision 11 8/20/2019). Sections 5.6.1.1 and 5.6.1.2 of the procedure contains the requirements for bolt and nut engagement for various flange connections at the company’s pipeline facilities. During the PHMSA inspection, the inspector identified several flanges within facilities where the bolts were too short to be completely engaged per the definition provided in Northern’s Engineering Standard 7570. The procedure requires, “[f]or existing facilities, completely engaged means that the bolt shall be extend through the nut and the end of the bolt shall be at least flush with the top of the nut for bolts with nuts in the horizontal or vertical down position. Existing bolts with nuts in the vertical up position shall have at least 1 ½ threads exposed beyond the nut to prevent accumulation and retention of water.” The following 26 locations were identified as having flanges that did not meet Engineering Standard 7570 because the bolt did not extend beyond the nut, but rather ended within the nut: Ridgeway TBS ,Calmar TBS, West Union #1 TBS, Parkersburg #1 TBS, New Hartford #1 TBS, Cedar Falls #1 TBS, Marshalltown #1 TBS, Garner TBS, Britt TBS, Algona TBS, Klemme #1 TBS, Goodell TBS, Belmond TBS, Clarion TBS, Woodward #1 TBS, Madrid TBS, Colo TBS, Newton #1A TBS, Newton #1 TBS , Monroe TBS, Prairie City TBS, Mitchellville TBS, Ankeny #1 TBS, Des Moines #1 TBS, Des Moines #1A & 1C TBS, Minburn TBS 2. § 192.631 Control room management. (a) . . . . (c) Provide adequate information. Each operator must provide its controllers with the information, tools, processes and procedures necessary for the controllers to carry out the roles and responsibilities the operator has defined by performing each of the following: (1) . . . . 2#

320211002_NOPV PCP PCO_03022021_text.pdf, page 3(3) Test and verify an internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months; Northern Natural failed to test and verify their internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months, in 2017. A review of Northern Natural’s Control Room records show that the operator exceeded the annual test of its Internal Communication Plan requirement by 47 days. Northern Natural completed and documented tests of its internal communication plan on June 29, 2016. On November 15, 2017, Northern Natural participated in a joint emergency exercise with North American Electric Reliability (NERC). Norther Natural counted this joint mock exercise as the test of its 2017 internal communication plan. The 2017 test should have been completed by September 29, 2017. 3. § 192.631 Control room management. (a) . . . . inspection: (1) (j) Compliance and deviations. An operator must maintain for review during Records that demonstrate compliance with the requirements of this section; Northern Natural failed to have records that demonstrated compliance to monitor the content and volume of general activity being directed to and required of each controller at least once each calendar year, but at intervals not to exceed 15 months, that will assure controllers have sufficient time to analyze and react to incoming alarms for the years 2016 and 2018 as required by § 192.631(e)(5). At the time of inspection, Northern Natural was not able to provide records showing that review of the content and volume of general activity directed to and required of each controller was performed. Despite several PHMSA attempts to obtain these records, including a September 21, 2019, Request for Specific Information letter, Northern Natural did not produce the records. 4. § 192.713 Transmission lines: Permanent field repair of imperfections and damages. (a) Each imperfection or damage that impairs the serviceability of pipe in a steel transmission line operating at or above 40 percent of SMYS must be— (1) . . . . (2) Repaired by a method that reliable engineering tests and analyses show can permanently restore the serviceability of the pipe. 3#

320211002_NOPV PCP PCO_03022021_text.pdf, page 4Northern Natural failed to repair pipe anomalies by a method that reliable engineering tests and analyses show can permanently restore the serviceability of the pipe for anomalies identified on the New Lisbon Branch Line WIB14601, specifically Dent 30. The ClockSpring Installation Manual and ASME B31-4 edition 2006 Table 451.6.2(b)-2 provide guidance for repairing dent and gouge anomalies using ClockSpring. These sources are the reference for methods to make repairs based on reliable engineering tests and analyses that, when followed, provide a process to permanently restore the serviceability of the pipe. An additional technical resource is Northern Natural Procedure 80.201 “Repair of In-Service Pipelines.” An in-line inspection (ILI) run was completed on the Line WIB14601 segment on July 11, 2018 to assess for metal-loss and dent features. Analysis of the data identified a dent-gouge and gouge on the pipeline segment. After evaluation, the anomalies were repaired with a ClockSpring. At the time of inspection, the anomaly repair records were reviewed and it did not appear from the records that the gouges were abraded until smooth before installing the ClockSpring as required by ClockSpring Installation Manual, section 3.1.4. ASME B 31-4 edition 2006 Table 451.6.2(b)- 2 and Northern Natural Procedure 80.201 “Repair of In-Service Pipelines”. The New Lisbon Branch dent gouge was repaired with two ClockSprings. The defect was a dent 23.1” long and made a repair with 24” of ClockSpring (2-12” ClockSpring). ClockSpring recommended installation practice states, “The ClockSpring should extend 2-inches (51 mm) beyond each side of the defect (i.e. three ClockSpring Should have been used). In this repair, the ClockSprings were fit very close just to cover the anomalies. ASME B31-4 edition 2006 Table 451.6.2(b)-2 indicates that ClockSpring can be used to repair a dent/gouge if the gouge is smoothed prior to installation. On November 21, 2019, Northern Natural confirmed in their Response to Request for Special Items, the gouges were not abraded until smooth prior to the application of the original ClockSprings. Northern Natural further confirmed that a replacement ClockSpring repair was performed on the dent-gouge on October 22, 2019, pursuant to the ClockSpring recommended practices. Proposed Civil Penalty Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a related series of violations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the maximum penalty may not exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related series of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not to exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum penalty not to exceed $2,090,022. 4#

320211002_NOPV PCP PCO_03022021_text.pdf, page 5We have reviewed the circumstances and supporting documentation involved for the above probable violation(s) and recommend that you be preliminarily assessed a civil penalty of $35,100 as follows: Item number PENALTY 2 $19,300 3 $15,800 Warning Items With respect to Item 4 we have reviewed the circumstances and supporting documents involved in this case and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to promptly correct this item. Failure to do so may result in additional enforcement action. Proposed Compliance Order With respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order to Northern Natural Gas. Please refer to the Proposed Compliance Order, which is enclosed and made a part of this Notice. Response to this Notice Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Enforcement 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, or request a hearing under 49 CFR § 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 a Final Order. If you are responding to this Notice, we propose that 5#

320211002_NOPV PCP PCO_03022021_text.pdf, page 6you submit your correspondence to my office within 30 days from receipt of this Notice. This period may be extended by written request for good cause. In your correspondence on this matter, please refer to CPF 3-2021-1002 and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Gregory A. Ochs Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration Enclosures: Proposed Compliance Order Response Options for Pipeline Operators in Enforcement Proceedings cc: Royce Ramsay, VP Operations, royce.ramsay@nngco.com 6#

320211002_NOPV PCP PCO_03022021_text.pdf, page 7PROPOSED COMPLIANCE ORDER Pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposes to issue to Northern Natural Gas Company a Compliance Order incorporating the following remedial requirements to ensure the compliance of Northern Natural Gas Transmission with the pipeline safety regulations: 1. In regards to Item Number 1 of the Notice pertaining to Northern Natural failed to follow procedures related to flange bolt engagement for various flanges at 26 facilities. Northern Natural needs to correct this condition by installing the proper bolts to meet the Engineering Standard 7570 definition of complete engagement as found in Engineering Standard 7570 “Joining of Pipe & Piping Components Other Than By Welding” (Revision 11 8/20/2019) 5.6.1.1 and 5.6.1.2. This should be completed within 120 days of the receipt of this letter. 2. It is requested (not mandated) that Northern Natural Gas Transmission maintain documentation of the safety improvement costs associated with fulfilling this Compliance Order and submit the total to Allan Beshore, Director, Central Region, Pipeline and Hazardous Materials Safety Administration. It is requested that these costs be reported in two categories: 1) total cost associated with preparation/revision of plans, procedures, studies and analyses, and 2) total cost associated with replacements, additions and other changes to pipeline infrastructure. 7#

320211002_Closure Letter_09152021_(18-163923S)_text.pdf, page 1Official PDFVIA ELECTRONIC MAIL TO: mark.hewett@nngco.com and royce.ramsay@nngco.com September 15, 2021 Mr. Mark Hewett President & CEO Northern Natural Gas Company 1111 South 103rd Street Omaha, NE 68124 Re: CPF 3-2021-1002 Dear Mr. Hewitt, On August 23, 2021, The Pipeline and Hazardous Materials Administration (PHMSA) issued to Northern Natural Gas Company a Final Order in the above referenced case. This Order included a Notice of Probably Violation and Civil Penalty and a Compliance Order. Based on our review of documentation provided and confirmation of payment of the civil penalty, it has been determined that you have complied with the terms of the Order. This letter is to inform you that no further action is necessary, and this case is now closed. Thank you for your cooperation. Sincerely, Gregory A. Ochs Director, Central Region, OPS Pipeline and Hazardous Materials Safety Administration cc: Thomas Correll, Vice President Safety and Risk Thomas.correll@nngco.com#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 1Official PDFAugust 23, 2021 VIA ELECTRONIC MAIL: mark.hewett@nngco.com Mr. Mark Hewett President and Chief Executive Officer Northern Natural Gas Company 1111 South 103rd Street Omaha, NE 68124 Re: CPF No. 3-2021-1002 Dear Mr. Hewett: Enclosed please find the Final Order issued in the above-referenced case. It withdraws one of the allegations of violation, makes a finding of violation, assesses a civil penalty of $19,300, and finds that Northern Natural Gas Company has completed the actions specified in the Notice to comply with the pipeline safety regulations. The penalty payment terms are set forth in the Final Order. When the civil penalty has been paid, this enforcement action will be closed. Service of the Final Order by electronic mail is effective upon the date of transmission as provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Alan K. Mayberry Associate Administrator for Pipeline Safety Enclosure cc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA Mr. Tom Correll, Vice President, Pipeline Safety and Risk, Northern Natural Gas Company, thomas.correll@nngco.com Mr. Royce Ramsay, Vice President, Operations, Northern Natural Gas Company, royce.ramsay@nngco.com CONFIRMATION OF RECEIPT REQUESTED#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) Northern Natural Gas Company, ) CPF No. 3-2021-1002 ) Respondent. ) ____________________________________) FINAL ORDER From May 13, 2019 through August 22, 2019, pursuant to 49 U.S.C. § 60117, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), and state agents from Michigan, Iowa, and Minnesota conducted an on-site pipeline safety inspection of the facilities and records of Northern Natural Gas Company (Northern Natural or Respondent) in Nebraska, Iowa, Minnesota, Wisconsin, and Michigan. Northern Natural is a subsidiary of Berkshire Hathaway Energy Company, a subsidiary of Berkshire Hathaway, Inc.1 Northern Natural operates approximately 7,000 miles of pipe in Iowa, Michigan, Minnesota, and Wisconsin.2 As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent, by letter dated March 2, 2021, a Notice of Probable Violation, Proposed Civil Penalty, and Proposed Compliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding Northern Natural had committed three violations of 49 C.F.R. part 192 and proposed assessing a civil penalty of $35,100 for the alleged violations. The Notice also proposed ordering Respondent to take certain measures to correct the alleged violations. The warning item required no further action, but warned the operator to correct the probable violation or face possible future enforcement action. Northern Natural responded to the Notice by letter dated March 30, 2021, and updated on April 2, 2021 (Response). Northern Natural did not contest the allegations, but offered additional information in response to the Notice and requested that the Notice be withdrawn and civil penalties rescinded. Respondent did not request a hearing and therefore has waived its right to one. 1 Northern Natural Gas, About Us/Overview, available at https://www northernnaturalgas.com/aboutus/Pages/Overview.aspx (last accessed August 11, 2021). 2 Pipeline Safety Violation Report (Violation Report), (June 21, 2019), at 1 (on file with PHMSA).#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 3CPF No. 3-2021-1002 Page 2 FINDINGS OF VIOLATION The Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows: Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states: § 192.605 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted. The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its manual of written procedures for conducting operations and maintenance activities. Specifically, the Notice alleged that Northern Natural failed to follow Sections 5.6.1.1 and 5.6.1.2 of its procedures, Engineering Standard 7570 “Joining of Pipe & Piping Components Other Than by Welding” (Revision 11 8/20/2019) because 26 locations within pipeline facilities contained flanges with bolts that did not extend beyond the nut, but rather ended within the nut, and were therefore not completely engaged. Respondent did not contest this allegation of violation and provided information concerning corrective action it has taken. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its written procedures for conducting operations and maintenance activities. Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.631(c)(3), which states: § 192.631 Control room management. (a) . . . . (c) Provide adequate information. Each operator must provide its controllers with the information, tools, processes and procedures necessary for the controllers to carry out the roles and responsibilities the operator has defined by performing each of the following: (1) . . . . (3) Test and verify an internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months. The Notice alleged that Respondent violated 49 C.F.R. § 192.631(c)(3) by failing to test and verify its internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months.#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 4CPF No. 3-2021-1002 Page 3 Specifically, the Notice alleged that Northern Natural’s Control Room records show that it exceeded the annual test of its Internal Communication Plan by 47 days when it tested its internal communication plan on June 29, 2016, and did not conduct another test until November 15, 2017. In its Response, Northern Natural did not contest that the violation had occurred as alleged and provided additional information concerning corrective action it has taken, including amendment of its procedures and training of personnel. Northern Natural argued, however, that this item should be withdrawn because it was “previously addressed in a Warning Letter (CP 3-2021- 1001W) dated February 11, 2021.” After considering all of the evidence and additional information provided by Respondent, I disagree. Although the Director issued a warning letter to Respondent on February 11, 2021, Item 2 of the letter warned Respondent about a probable violation of § 192.631(c)(4). The violation alleged in this Item, § 192.631(c)(3), is distinct from that referenced in the warning letter and is a separate regulatory requirement. The warning letter stated that Northern Natural’s failure was to “properly test any backup SCADA system… Specifically, the company only tested the SCADA server performance and did not test the full SCADA system…” The Notice Item alleged Respondent exceeded the annual test of its Internal Communication Plan by 47 days. These are two distinct allegations. Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R. § 192.631(c)(3) failing to test and verify its internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months, when it exceeded the annual test of its Internal Communication Plan by 47 days in 2017. Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.631(j)(1), which states: § 192.631 Control room management. (a) . . . . (j) Compliance and deviations. An operator must maintain for review during inspection: (1) Records that demonstrate compliance with the requirements of this section; The Notice alleged that Respondent violated 49 C.F.R. § 192.631(j)(1) by failing to have records that demonstrated compliance with the requirements of § 192.631(e)(5), which requires Respondent to monitor the content and volume of general activity being directed to and required of each controller at least once each calendar year, but at intervals not to exceed 15 months, to assure controllers have sufficient time to analyze and react to incoming alarms. Specifically, the Notice alleged that Northern Natural was not able to provide records in response to a September 21, 2019 Request for Specific Information, showing that review of the content and volume of general activity directed to and required of each controller was performed for the years 2016 and 2018. In its Response, Northern Natural did not contest that the violation had occurred as alleged and#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 5CPF No. 3-2021-1002 Page 4 provided additional information concerning corrective action it has taken, including amendment of its procedures and training of personnel. Northern Natural argued, however, that this item should be withdrawn because it was “previously addressed in a Warning Letter (CPF 3-2021- 1001W) dated February 11, 2021.” Having reviewed the record, I find that prior to issuance of the Notice in this case, the Director issued Warning Letter CPF 3-2021-1001W. Item 3 of the letter alleged that “Northern Natural Northern Natural failed to maintain records to demonstrate compliance with the requirements of § 192.631[(j)(1)].” It referred to the same set of facts, Northern Natural’s inability to “produce records for the inspection years 2016, 2017 and 2018,” as those in Item 3 of the Notice. In other words, there appears to be duplicative cases brought for the same probable violation. There is no record of the Director having ever withdrawn the Warning Letter or otherwise intending to replace the warning with the violation alleged in the Notice. In the Director’s written evaluation of response material and recommendation for final action for this case, submitted pursuant to § 190.209(b)(7), the Director recommended this item be withdrawn. Accordingly, I hereby order that Item 3 be withdrawn. These findings of violation will be considered prior offenses in any subsequent enforcement action taken against Respondent. ASSESSMENT OF PENALTY Under 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed $200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any related series of violations.3 In determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I must consider the following criteria: the nature, circumstances, and gravity of the violation, including adverse impact on the environment; the degree of Respondent’s culpability; the history of Respondent’s prior offenses; any effect that the penalty may have on its ability to continue doing business; the good faith of Respondent in attempting to comply with the pipeline safety regulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA. In addition, I may consider the economic benefit gained from the violation without any reduction because of subsequent damages, and such other matters as justice may require. The Notice proposed a total civil penalty of $35,100 for the violations cited above. Item 2: The Notice proposed a civil penalty of $19,300 for Respondent’s violation of 49 C.F.R. § 192.631(c)(3), for failing to failing to test and verify its internal communication plan to provide adequate means for manual operation of the pipeline safely, at least once each calendar year, but at intervals not to exceed 15 months. Respondent argued this item and proposed penalty should be withdrawn because it was previously addressed in a Warning Letter. I have already rejected this argument. Respondent did not otherwise present any evidence or arguments justifying elimination of the proposed penalty. 3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 6CPF No. 3-2021-1002 Page 5 Regarding the nature, circumstances, and gravity of the violation, PHMSA noted in the Violation Report that the alleged violation was discovered by PHMSA and minimally affected safety. Regarding culpability and good faith, PHMSA noted in the violation report that Respondent failed to comply with an applicable requirement and did not have a reasonable justification for its non- compliance. Accordingly, having reviewed the record and considered the assessment criteria, I assess Respondent a civil penalty of $19,300 for violation of 49 C.F.R. § 192.631(c)(3). Item 3: The Notice proposed a civil penalty of $15,800 for Respondent’s alleged violation of 49 C.F.R. § 192.631(j)(1). Since this alleged violation has been withdrawn, the proposed penalty is not assessed. In summary, having reviewed the record and considered the assessment criteria for each of the Items cited above, I assess Respondent a total civil penalty of $19,300. Payment of the civil penalty must be made within 20 days of service. Federal regulations (49 C.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal Reserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed instructions are contained in the enclosure. Questions concerning wire transfers should be directed to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike Monroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169. The Financial Operations Division telephone number is (405) 954-8845. Failure to pay the $19,300 civil penalty will result in accrual of interest at the current annual rate in accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to those same authorities, a late penalty charge of six percent (6%) per annum will be charged if payment is not made within 110 days of service. Furthermore, failure to pay the civil penalty may result in referral of the matter to the Attorney General for appropriate action in a district court of the United States. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49 C.F.R. § 192.605(a). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. The Director indicates that Respondent has taken the following actions specified in the proposed compliance order: 1. With respect to the violation of § 192.605(a) (Item 1), Respondent has completed all actions as required in the Proposed Compliance Order for his Item. Specifically, Respondent has replaced or readjusted all flange bolts in the locations specified in the NOPV to bring them into compliance with Engineering Standard 7570. Accordingly, I find that compliance has been achieved with respect to this violation. Therefore, the compliance terms proposed in the Notice are not included in this Order.#

320211002_Final Order_08232021_(18-163923S)_text.pdf, page 7CPF No. 3-2021-1002 Page 6 WARNING ITEM With respect to Item 4, the Notice alleged probable violation of Part 192, but identified it as a warning item pursuant to § 190.205. The warning was for: 49 C.F.R. § 192.713(a)(2) (Item 4) ─ Respondent’s alleged failure to repair pipe anomalies by a method that reliable engineering tests and analyses show can permanently restore the serviceability of the pipe for anomalies. Specifically, the Notice alleged that on the New Lisbon Branch Line WIB14601, specifically Dent 30, Northern Natural did not abrade the gouges until smooth prior to the application of a ClockSpring as required by ClockSpring Installation Manual, section 3.1.4. ASME B 31-4 edition 2006 Table 451.6.2(b)-2 and Northern Natural Procedure 80.201 “Repair of In-Service Pipelines.” The Notice also stated that Northern Natural has already replaced the repair. Northern Natural presented information in its Response showing that it had taken certain actions to address the cited items. If OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject to future enforcement action. Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays the payment of any civil penalty assessed. The other terms of the order, including corrective action, remain in effect unless the Associate Administrator, upon request, grants a stay. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. August 23, 2021 ___________________________________ __________________________ Alan K. Mayberry Date Issued Associate Administrator for Pipeline Safety#