{"operation":"document","citation":"CPF 320211002","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":"2021-03-02","effective_on":null,"summary":"CLOSED notice of probable violation citing 192.605(a), 192.631(c)(3), 192.631(j)(1), 192.713(a)(2).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-320211002.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-320211002.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-320211002","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/320211002","body":"Notice of Probable Violation involving NORTHERN NATURAL GAS CO. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.631(c)(3),  192.631(j)(1),  192.713(a)(2). The case was opened on 2021-03-02 and is reported as closed as of 2021-09-15. Proposed civil penalty: $35,100. Assessed civil penalty: $19,300. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n320211002_Closure Letter_09152021_(18-163923S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_Closure%20Letter_09152021_(18-163923S).pdf\n\n320211002_Closure Letter_09152021_(18-163923S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_Closure%20Letter_09152021_(18-163923S)_text.pdf\n\n320211002_Final Order_08232021_(18-163923S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_Final%20Order_08232021_(18-163923S).pdf\n\n320211002_Final Order_08232021_(18-163923S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_Final%20Order_08232021_(18-163923S)_text.pdf\n\n320211002_NOPV PCP PCO_03022021.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_NOPV%20PCP%20PCO_03022021.pdf\n\n320211002_NOPV PCP PCO_03022021_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_NOPV%20PCP%20PCO_03022021_text.pdf\n\n320211002_Operator Response to Notice (Updated)_04022021_(18-163923S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_Operator%20Response%20to%20Notice%20(Updated)_04022021_(18-163923S).pdf\n\n320211002_Operator Response to Notice_03302021_(18-163923S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/320211002/320211002_Operator%20Response%20to%20Notice_03302021_(18-163923S).pdf\n\n320211002_NOPV PCP PCO_03022021_text.pdf\n\nNOTICE OF PROBABLE VIOLATION\nPROPOSED CIVIL PENALTY\nand\nPROPOSED COMPLIANCE ORDER\nVIA ELECTRONIC MAIL TO: mark.hewett@nngco.com and royce.ramsay@nngco.com\nMarch 2, 2021\nMr. Mark Hewett\nPresident & CEO\nNorthern Natural Gas Company\n1111 South 103rd Street\nOmaha, NE 68124\nCPF 3-2021-1002\nDear Mr. Hewett:\nDuring a period between May 13 and August 22, 2019 a representative of the Pipeline and\nHazardous Materials Safety Administration (PHMSA) and state agents from Michigan, Iowa and\nMinnesota pursuant to Chapter 601 of 49 United States Code inspected Northern Natural Gas\nCompany (Northern Natural) procedures for Operations, Maintenance, Control Room, Integrity\nManagement, and Public Awareness in Omaha, Nebraska, as well as its gas pipeline system\nfacilities located in Iowa, Minnesota, Wisconsin and Michigan.\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. § 192.605 Procedural manual for operations, maintenance, and emergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a manual of\nwritten procedures for conducting operations and maintenance activities and for\nemergency response. For transmission lines, the manual must also include\nprocedures for handling abnormal operations. This manual must be reviewed and\nupdated by the operator at intervals not exceeding 15 months, but at least once each\ncalendar year. This manual must be prepared before operations of a pipeline\nsystem commence. Appropriate parts of the manual must be kept at locations\nwhere operations and maintenance activities are conducted.\nNorthern Natural failed to follow a written procedure for conducting operations and maintenance\nactivities and for emergency response. Specifically, Northern Natural failed to follow its\nprocedure, Engineering Standard 7570 “Joining of Pipe & Piping Components Other Than by\nWelding” (Revision 11 8/20/2019). Sections 5.6.1.1 and 5.6.1.2 of the procedure contains the\nrequirements for bolt and nut engagement for various flange connections at the company’s\npipeline facilities.\nDuring the PHMSA inspection, the inspector identified several flanges within facilities where the\nbolts were too short to be completely engaged per the definition provided in Northern’s\nEngineering Standard 7570. The procedure requires, “[f]or existing facilities, completely\nengaged means that the bolt shall be extend through the nut and the end of the bolt shall be at\nleast flush with the top of the nut for bolts with nuts in the horizontal or vertical down position.\nExisting bolts with nuts in the vertical up position shall have at least 1 ½ threads exposed beyond\nthe nut to prevent accumulation and retention of water.” The following 26 locations were\nidentified as having flanges that did not meet Engineering Standard 7570 because the bolt did not\nextend beyond the nut, but rather ended within the nut:\nRidgeway TBS ,Calmar TBS, West Union #1 TBS, Parkersburg #1 TBS, New Hartford #1 TBS,\nCedar Falls #1 TBS, Marshalltown #1 TBS, Garner TBS, Britt TBS, Algona TBS, Klemme #1\nTBS, Goodell TBS, Belmond TBS, Clarion TBS, Woodward #1 TBS, Madrid TBS, Colo\nTBS, Newton #1A TBS, Newton #1 TBS , Monroe TBS, Prairie City TBS, Mitchellville TBS,\nAnkeny #1 TBS, Des Moines #1 TBS, Des Moines #1A & 1C TBS, Minburn TBS\n2. § 192.631 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) . . . .\n2\n\n\n\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;\nNorthern Natural failed to test and verify their internal communication plan to provide adequate\nmeans for manual operation of the pipeline safely, at least once each calendar year, but at\nintervals not to exceed 15 months, in 2017.\nA review of Northern Natural’s Control Room records show that the operator exceeded the\nannual test of its Internal Communication Plan requirement by 47 days. Northern Natural\ncompleted and documented tests of its internal communication plan on June 29, 2016. On\nNovember 15, 2017, Northern Natural participated in a joint emergency exercise with North\nAmerican Electric Reliability (NERC). Norther Natural counted this joint mock exercise as the\ntest of its 2017 internal communication plan. The 2017 test should have been completed by\nSeptember 29, 2017.\n3. § 192.631 Control room management.\n(a) . . . .\ninspection:\n(1) (j) Compliance and deviations. An operator must maintain for review during\nRecords that demonstrate compliance with the requirements of this section;\nNorthern Natural failed to have records that demonstrated compliance to monitor the content and\nvolume of general activity being directed to and required of each controller at least once each\ncalendar year, but at intervals not to exceed 15 months, that will assure controllers have\nsufficient time to analyze and react to incoming alarms for the years 2016 and 2018 as required\nby § 192.631(e)(5).\nAt the time of inspection, Northern Natural was not able to provide records showing that review\nof the content and volume of general activity directed to and required of each controller was\nperformed. Despite several PHMSA attempts to obtain these records, including a September 21,\n2019, Request for Specific Information letter, Northern Natural did not produce the records.\n4. § 192.713 Transmission lines: Permanent field repair of imperfections and damages.\n(a) Each imperfection or damage that impairs the serviceability of pipe in a steel\ntransmission line operating at or above 40 percent of SMYS must be—\n(1) . . . .\n(2) Repaired by a method that reliable engineering tests and analyses show can\npermanently restore the serviceability of the pipe.\n3\n\n\n\nNorthern Natural failed to repair pipe anomalies by a method that reliable engineering tests and\nanalyses show can permanently restore the serviceability of the pipe for anomalies identified on\nthe New Lisbon Branch Line WIB14601, specifically Dent 30.\nThe ClockSpring Installation Manual and ASME B31-4 edition 2006 Table 451.6.2(b)-2 provide\nguidance for repairing dent and gouge anomalies using ClockSpring. These sources are the\nreference for methods to make repairs based on reliable engineering tests and analyses that, when\nfollowed, provide a process to permanently restore the serviceability of the pipe. An additional\ntechnical resource is Northern Natural Procedure 80.201 “Repair of In-Service Pipelines.”\nAn in-line inspection (ILI) run was completed on the Line WIB14601 segment on July 11, 2018\nto assess for metal-loss and dent features. Analysis of the data identified a dent-gouge and gouge\non the pipeline segment. After evaluation, the anomalies were repaired with a ClockSpring. At\nthe time of inspection, the anomaly repair records were reviewed and it did not appear from the\nrecords that the gouges were abraded until smooth before installing the ClockSpring as required\nby ClockSpring Installation Manual, section 3.1.4. ASME B 31-4 edition 2006 Table 451.6.2(b)-\n2 and Northern Natural Procedure 80.201 “Repair of In-Service Pipelines”.\nThe New Lisbon Branch dent gouge was repaired with two ClockSprings. The defect was a dent\n23.1” long and made a repair with 24” of ClockSpring (2-12” ClockSpring). ClockSpring\nrecommended installation practice states, “The ClockSpring should extend 2-inches (51 mm)\nbeyond each side of the defect (i.e. three ClockSpring Should have been used). In this repair, the\nClockSprings were fit very close just to cover the anomalies. ASME B31-4 edition 2006 Table\n451.6.2(b)-2 indicates that ClockSpring can be used to repair a dent/gouge if the gouge is\nsmoothed prior to installation.\nOn November 21, 2019, Northern Natural confirmed in their Response to Request for Special\nItems, the gouges were not abraded until smooth prior to the application of the original\nClockSprings. Northern Natural further confirmed that a replacement ClockSpring repair was\nperformed on the dent-gouge on October 22, 2019, pursuant to the ClockSpring recommended\npractices.\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$222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for a\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.\n4\n\n\n\nWe have reviewed the circumstances and supporting documentation involved for the above\nprobable violation(s) and recommend that you be preliminarily assessed a civil penalty of\n$35,100 as follows:\nItem number PENALTY\n2 $19,300\n3 $15,800\nWarning Items\nWith respect to Item 4 we have reviewed the circumstances and supporting documents involved\nin this case and have decided not to conduct additional enforcement action or penalty assessment\nproceedings at this time. We advise you to promptly correct this item. Failure to do so may\nresult in additional enforcement action.\nProposed Compliance Order\nWith respect to item 1 pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials\nSafety Administration proposes to issue a Compliance Order to Northern Natural Gas. Please\nrefer to the Proposed Compliance Order, which is enclosed and 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. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you\nmust provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted information\nqualifies for confidential treatment under 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, 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\n5\n\n\n\nyou submit your correspondence to my office within 30 days from receipt of this Notice. This\nperiod may be extended by written request for good cause.\nIn your correspondence on this matter, please refer to CPF 3-2021-1002 and, for each document\nyou submit, please provide a copy in electronic format whenever possible.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\nEnclosures: Proposed Compliance Order\nResponse Options for Pipeline Operators in Enforcement Proceedings\ncc: Royce Ramsay, VP Operations, royce.ramsay@nngco.com\n6\n\n\n\nPROPOSED COMPLIANCE ORDER\nPursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous Materials Safety Administration\n(PHMSA) proposes to issue to Northern Natural Gas Company a Compliance Order\nincorporating the following remedial requirements to ensure the compliance of Northern Natural\nGas Transmission with the pipeline safety regulations:\n1. In regards to Item Number 1 of the Notice pertaining to Northern Natural failed to\nfollow procedures related to flange bolt engagement for various flanges at 26\nfacilities.\nNorthern Natural needs to correct this condition by installing the proper bolts to\nmeet the Engineering Standard 7570 definition of complete engagement as found\nin Engineering Standard 7570 “Joining of Pipe & Piping Components Other Than\nBy Welding” (Revision 11 8/20/2019) 5.6.1.1 and 5.6.1.2. This should be\ncompleted within 120 days of the receipt of this letter.\n2. It is requested (not mandated) that Northern Natural Gas Transmission maintain\ndocumentation of the safety improvement costs associated with fulfilling this\nCompliance Order and submit the total to Allan Beshore, Director, Central\nRegion, Pipeline and Hazardous Materials Safety Administration. It is requested\nthat these costs be reported in two categories: 1) total cost associated with\npreparation/revision of plans, procedures, studies and analyses, and 2) total cost\nassociated with replacements, additions and other changes to pipeline\ninfrastructure.\n7\n\n320211002_Closure Letter_09152021_(18-163923S)_text.pdf\n\nVIA ELECTRONIC MAIL TO: mark.hewett@nngco.com and royce.ramsay@nngco.com\nSeptember 15, 2021\nMr. Mark Hewett\nPresident & CEO\nNorthern Natural Gas Company\n1111 South 103rd Street\nOmaha, NE 68124\nRe: CPF 3-2021-1002\nDear Mr. Hewitt,\nOn August 23, 2021, The Pipeline and Hazardous Materials Administration (PHMSA) issued to\nNorthern Natural Gas Company a Final Order in the above referenced case. This Order included\na Notice of Probably Violation and Civil Penalty and a Compliance Order. Based on our review\nof documentation provided and confirmation of payment of the civil penalty, it has been\ndetermined that you have complied with the terms of the Order.\nThis letter is to inform you that no further action is necessary, and this case is now closed. Thank\nyou for your cooperation.\nSincerely,\nGregory A. Ochs\nDirector, Central Region, OPS\nPipeline and Hazardous Materials Safety Administration\ncc: Thomas Correll, Vice President Safety and Risk Thomas.correll@nngco.com\n\n320211002_Final Order_08232021_(18-163923S)_text.pdf\n\nAugust 23, 2021\nVIA ELECTRONIC MAIL: mark.hewett@nngco.com\nMr. Mark Hewett\nPresident and Chief Executive Officer\nNorthern Natural Gas Company\n1111 South 103rd Street\nOmaha, NE 68124\nRe: CPF No. 3-2021-1002\nDear Mr. Hewett:\nEnclosed please find the Final Order issued in the above-referenced case. It withdraws one of\nthe allegations of violation, makes a finding of violation, assesses a civil penalty of $19,300, and\nfinds that Northern Natural Gas Company has completed the actions specified in the Notice to\ncomply with the pipeline safety regulations. The penalty payment terms are set forth in the Final\nOrder. When the civil penalty has been paid, this enforcement action will be closed. Service of\nthe Final Order by electronic mail is effective upon the date of transmission as provided under 49\nC.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Gregory Ochs, Director, Central Region, Office of Pipeline Safety, PHMSA\nMr. Tom Correll, Vice President, Pipeline Safety and Risk, Northern Natural Gas\nCompany, thomas.correll@nngco.com\nMr. Royce Ramsay, Vice President, Operations, Northern Natural Gas Company,\nroyce.ramsay@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____________________________________\n)\nIn the Matter of )\n)\nNorthern Natural Gas Company, ) CPF No. 3-2021-1002\n)\nRespondent. )\n____________________________________)\nFINAL ORDER\nFrom May 13, 2019 through August 22, 2019, pursuant to 49 U.S.C. § 60117, a representative of\nthe Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety\n(OPS), and state agents from Michigan, Iowa, and Minnesota conducted an on-site pipeline\nsafety inspection of the facilities and records of Northern Natural Gas Company (Northern\nNatural or Respondent) in Nebraska, Iowa, Minnesota, Wisconsin, and Michigan. Northern\nNatural is a subsidiary of Berkshire Hathaway Energy Company, a subsidiary of Berkshire\nHathaway, Inc.1 Northern Natural operates approximately 7,000 miles of pipe in Iowa,\nMichigan, Minnesota, and Wisconsin.2\nAs a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,\nby letter dated March 2, 2021, a Notice of Probable Violation, Proposed Civil Penalty, and\nProposed Compliance Order (Notice), which also included a warning pursuant to 49 C.F.R.\n§ 190.205. In accordance with 49 C.F.R. § 190.207, the Notice proposed finding Northern\nNatural had committed three violations of 49 C.F.R. part 192 and proposed assessing a civil\npenalty of $35,100 for the alleged violations. The Notice also proposed ordering Respondent to\ntake certain measures to correct the alleged violations. The warning item required no further\naction, but warned the operator to correct the probable violation or face possible future\nenforcement action.\nNorthern Natural responded to the Notice by letter dated March 30, 2021, and updated on April\n2, 2021 (Response). Northern Natural did not contest the allegations, but offered additional\ninformation in response to the Notice and requested that the Notice be withdrawn and civil\npenalties rescinded. Respondent did not request a hearing and therefore has waived its right to\none.\n1 Northern Natural Gas, About Us/Overview, available at\nhttps://www northernnaturalgas.com/aboutus/Pages/Overview.aspx (last accessed August 11, 2021).\n2 Pipeline Safety Violation Report (Violation Report), (June 21, 2019), at 1 (on file with PHMSA).\n\n\n\nCPF No. 3-2021-1002\nPage 2\nFINDINGS OF VIOLATION\nThe Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:\nItem 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states:\n§ 192.605 Procedural manual for operations, maintenance, and\nemergencies.\n(a) General. Each operator shall prepare and follow for each pipeline, a\nmanual of written procedures for conducting operations and maintenance\nactivities and for emergency response. For transmission lines, the manual must\nalso include procedures for handling abnormal operations. This manual must\nbe reviewed and updated by the operator at intervals not exceeding 15 months,\nbut at least once each calendar year. This manual must be prepared before\noperations of a pipeline system commence. Appropriate parts of the manual\nmust be kept at locations where operations and maintenance activities are\nconducted.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its\nmanual of written procedures for conducting operations and maintenance activities. Specifically,\nthe Notice alleged that Northern Natural failed to follow Sections 5.6.1.1 and 5.6.1.2 of its\nprocedures, Engineering Standard 7570 “Joining of Pipe & Piping Components Other Than by\nWelding” (Revision 11 8/20/2019) because 26 locations within pipeline facilities contained flanges\nwith bolts that did not extend beyond the nut, but rather ended within the nut, and were therefore not\ncompletely engaged.\nRespondent did not contest this allegation of violation and provided information concerning\ncorrective action it has taken. Accordingly, based upon a review of all of the evidence, I find\nthat Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its written procedures for\nconducting operations and maintenance activities.\nItem 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.631(c)(3), which states:\n§ 192.631 Control room management.\n(a) . . . .\n(c) Provide adequate information. Each operator must provide its\ncontrollers with the information, tools, processes and procedures necessary\nfor the controllers to carry out the roles and responsibilities the operator has\ndefined by performing each of the following:\n(1) . . . .\n(3) Test and verify an internal communication plan to provide adequate\nmeans for manual operation of the pipeline safely, at least once each\ncalendar year, but at intervals not to exceed 15 months.\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.631(c)(3) by failing to test and\nverify its internal communication plan to provide adequate means for manual operation of the\npipeline safely, at least once each calendar year, but at intervals not to exceed 15 months.\n\n\n\nCPF No. 3-2021-1002\nPage 3\nSpecifically, the Notice alleged that Northern Natural’s Control Room records show that it\nexceeded the annual test of its Internal Communication Plan by 47 days when it tested its internal\ncommunication plan on June 29, 2016, and did not conduct another test until November 15,\n2017.\nIn its Response, Northern Natural did not contest that the violation had occurred as alleged and\nprovided additional information concerning corrective action it has taken, including amendment\nof its procedures and training of personnel. Northern Natural argued, however, that this item\nshould be withdrawn because it was “previously addressed in a Warning Letter (CP 3-2021-\n1001W) dated February 11, 2021.”\nAfter considering all of the evidence and additional information provided by Respondent, I\ndisagree. Although the Director issued a warning letter to Respondent on February 11, 2021,\nItem 2 of the letter warned Respondent about a probable violation of § 192.631(c)(4). The\nviolation alleged in this Item, § 192.631(c)(3), is distinct from that referenced in the warning\nletter and is a separate regulatory requirement. The warning letter stated that Northern Natural’s\nfailure was to “properly test any backup SCADA system… Specifically, the company only tested\nthe SCADA server performance and did not test the full SCADA system…” The Notice Item\nalleged Respondent exceeded the annual test of its Internal Communication Plan by 47 days.\nThese are two distinct allegations.\nAccordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.\n§ 192.631(c)(3) failing to test and verify its internal communication plan to provide adequate\nmeans for manual operation of the pipeline safely, at least once each calendar year, but at\nintervals not to exceed 15 months, when it exceeded the annual test of its Internal\nCommunication Plan by 47 days in 2017.\nItem 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.631(j)(1), which states:\n§ 192.631 Control room management.\n(a) . . . .\n(j) Compliance and deviations. An operator must maintain for review\nduring inspection:\n(1) Records that demonstrate compliance with the requirements of this\nsection;\nThe Notice alleged that Respondent violated 49 C.F.R. § 192.631(j)(1) by failing to have records\nthat demonstrated compliance with the requirements of § 192.631(e)(5), which requires Respondent\nto monitor the content and volume of general activity being directed to and required of each\ncontroller at least once each calendar year, but at intervals not to exceed 15 months, to assure\ncontrollers have sufficient time to analyze and react to incoming alarms. Specifically, the Notice\nalleged that Northern Natural was not able to provide records in response to a September 21,\n2019 Request for Specific Information, showing that review of the content and volume of general\nactivity directed to and required of each controller was performed for the years 2016 and 2018.\nIn its Response, Northern Natural did not contest that the violation had occurred as alleged and\n\n\n\nCPF No. 3-2021-1002\nPage 4\nprovided additional information concerning corrective action it has taken, including amendment\nof its procedures and training of personnel. Northern Natural argued, however, that this item\nshould be withdrawn because it was “previously addressed in a Warning Letter (CPF 3-2021-\n1001W) dated February 11, 2021.”\nHaving reviewed the record, I find that prior to issuance of the Notice in this case, the Director\nissued Warning Letter CPF 3-2021-1001W. Item 3 of the letter alleged that “Northern Natural\nNorthern Natural failed to maintain records to demonstrate compliance with the requirements of\n§ 192.631[(j)(1)].” It referred to the same set of facts, Northern Natural’s inability to “produce\nrecords for the inspection years 2016, 2017 and 2018,” as those in Item 3 of the Notice. In other\nwords, there appears to be duplicative cases brought for the same probable violation. There is no\nrecord of the Director having ever withdrawn the Warning Letter or otherwise intending to\nreplace the warning with the violation alleged in the Notice. In the Director’s written evaluation\nof response material and recommendation for final action for this case, submitted pursuant to\n§ 190.209(b)(7), the Director recommended this item be withdrawn. Accordingly, I hereby order\nthat Item 3 be withdrawn.\nThese findings of violation will be considered prior offenses in any subsequent enforcement\naction taken against Respondent.\nASSESSMENT OF PENALTY\nUnder 49 U.S.C. § 60122, Respondent is subject to an administrative civil penalty not to exceed\n$200,000 per violation for each day of the violation, up to a maximum of $2,000,000 for any\nrelated series of violations.3\nIn determining the amount of a civil penalty under 49 U.S.C. § 60122 and 49 C.F.R. § 190.225, I\nmust consider the following criteria: the nature, circumstances, and gravity of the violation,\nincluding adverse impact on the environment; the degree of Respondent’s culpability; the history\nof Respondent’s prior offenses; any effect that the penalty may have on its ability to continue\ndoing business; the good faith of Respondent in attempting to comply with the pipeline safety\nregulations; and self-disclosure or actions to correct a violation prior to discovery by PHMSA.\nIn addition, I may consider the economic benefit gained from the violation without any reduction\nbecause of subsequent damages, and such other matters as justice may require. The Notice\nproposed a total civil penalty of $35,100 for the violations cited above.\nItem 2: The Notice proposed a civil penalty of $19,300 for Respondent’s violation of 49 C.F.R.\n§ 192.631(c)(3), for failing to failing to test and verify its internal communication plan to provide\nadequate means for manual operation of the pipeline safely, at least once each calendar year, but\nat intervals not to exceed 15 months. Respondent argued this item and proposed penalty should\nbe withdrawn because it was previously addressed in a Warning Letter. I have already rejected\nthis argument. Respondent did not otherwise present any evidence or arguments justifying\nelimination of the proposed penalty.\n3 These amounts are adjusted annually for inflation. See 49 C.F.R. § 190.223.\n\n\n\nCPF No. 3-2021-1002\nPage 5\nRegarding the nature, circumstances, and gravity of the violation, PHMSA noted in the Violation\nReport that the alleged violation was discovered by PHMSA and minimally affected safety.\nRegarding culpability and good faith, PHMSA noted in the violation report that Respondent failed\nto comply with an applicable requirement and did not have a reasonable justification for its non-\ncompliance. Accordingly, having reviewed the record and considered the assessment criteria, I\nassess Respondent a civil penalty of $19,300 for violation of 49 C.F.R. § 192.631(c)(3).\nItem 3: The Notice proposed a civil penalty of $15,800 for Respondent’s alleged violation of 49\nC.F.R. § 192.631(j)(1). Since this alleged violation has been withdrawn, the proposed penalty is\nnot assessed.\nIn summary, having reviewed the record and considered the assessment criteria for each of the\nItems cited above, I assess Respondent a total civil penalty of $19,300.\nPayment of the civil penalty must be made within 20 days of service. Federal regulations (49\nC.F.R. § 89.21(b)(3)) require such payment to be made by wire transfer through the Federal\nReserve Communications System (Fedwire), to the account of the U.S. Treasury. Detailed\ninstructions are contained in the enclosure. Questions concerning wire transfers should be\ndirected to: Financial Operations Division (AMK-325), Federal Aviation Administration, Mike\nMonroney Aeronautical Center, 6500 S MacArthur Blvd, Oklahoma City, Oklahoma 79169.\nThe Financial Operations Division telephone number is (405) 954-8845.\nFailure to pay the $19,300 civil penalty will result in accrual of interest at the current annual rate\nin accordance with 31 U.S.C. § 3717, 31 C.F.R. § 901.9 and 49 C.F.R. § 89.23. Pursuant to\nthose same authorities, a late penalty charge of six percent (6%) per annum will be charged if\npayment is not made within 110 days of service. Furthermore, failure to pay the civil penalty\nmay result in referral of the matter to the Attorney General for appropriate action in a district\ncourt of the United States.\nCOMPLIANCE ORDER\nThe Notice proposed a compliance order with respect to Item 1 in the Notice for violation of 49\nC.F.R. § 192.605(a). Under 49 U.S.C. § 60118(a), each person who engages in the\ntransportation of gas or who owns or operates a pipeline facility is required to comply with the\napplicable safety standards established under chapter 601. The Director indicates that\nRespondent has taken the following actions specified in the proposed compliance order:\n1. With respect to the violation of § 192.605(a) (Item 1), Respondent has completed\nall actions as required in the Proposed Compliance Order for his Item. Specifically,\nRespondent has replaced or readjusted all flange bolts in the locations specified in the\nNOPV to bring them into compliance with Engineering Standard 7570.\nAccordingly, I find that compliance has been achieved with respect to this violation. Therefore,\nthe compliance terms proposed in the Notice are not included in this Order.\n\n\n\nCPF No. 3-2021-1002\nPage 6\nWARNING ITEM\nWith respect to Item 4, the Notice alleged probable violation of Part 192, but identified it as a\nwarning item pursuant to § 190.205. The warning was for:\n49 C.F.R. § 192.713(a)(2) (Item 4) ─ Respondent’s alleged failure to repair pipe\nanomalies by a method that reliable engineering tests and analyses show can\npermanently restore the serviceability of the pipe for anomalies. Specifically, the\nNotice alleged that on the New Lisbon Branch Line WIB14601, specifically Dent\n30, Northern Natural did not abrade the gouges until smooth prior to the\napplication of a ClockSpring as required by ClockSpring Installation Manual,\nsection 3.1.4. ASME B 31-4 edition 2006 Table 451.6.2(b)-2 and Northern\nNatural Procedure 80.201 “Repair of In-Service Pipelines.” The Notice also\nstated that Northern Natural has already replaced the repair.\nNorthern Natural presented information in its Response showing that it had taken certain actions\nto address the cited items. If OPS finds a violation of this provision in a subsequent inspection,\nRespondent may be subject to future enforcement action.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this\nFinal Order by Respondent. Any petition submitted must contain a statement of the issue(s) and\nmeet all other requirements of 49 C.F.R. § 190.243. The filing of a petition automatically stays\nthe payment of any civil penalty assessed. The other terms of the order, including corrective\naction, remain in effect unless the Associate Administrator, upon request, grants a stay.\nThe terms and conditions of this Final Order are effective upon service in accordance with 49\nC.F.R. § 190.5.\nAugust 23, 2021\n___________________________________ __________________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety","truncated":false,"body_characters":34252}