{"operation":"document","citation":"CPF 32024046WL","title":"BLUEWATER GAS STORAGE, LLC — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-04-19","effective_on":null,"summary":"CLOSED warning letter citing 192.465(d), 192.947(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024046wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024046wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024046wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32024046WL","body":"Warning Letter involving BLUEWATER GAS STORAGE, LLC. PHMSA's enforcement data identifies the cited regulations as 192.465(d),  192.947(d). The case was opened on 2024-04-19 and is reported as closed as of 2024-04-19. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32024046WL_Warning Letter_04192024_(23-265892).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024046WL/32024046WL_Warning%20Letter_04192024_(23-265892).pdf\n\n32024046WL_Warning Letter_04192024_(23-265892)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024046WL/32024046WL_Warning%20Letter_04192024_(23-265892)_text.pdf\n\n32024046WL_Warning Letter_04192024_(23-265892)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: andy.hesselbach@wecenergygroup.com,\njeffrey.westrick@wecenergygroup.com, rita.reed@wecenergygroup.com\nApril 19, 2024\nMr. Andy Hesselbach\nPresident & Chief Executive Officer\nBluewater Gas Storage, LLC\n231 W. Michigan St., PSB-P240\nMilwaukee, WI 53203\nCPF 3-2024-046-WL\nDear Mr. Hesselbach:\nOn March 24, August 14 through August 18, and October 10 through 12, 2023, representatives\nof the Michigan Public Service Commission (MIPSC), acting as an Interstate Agent for the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of\n49 United States Code (U.S.C.), inspected Bluewater Gas Storage, LLC’s (BGS) records and\nfacilities in St. Clair and Macomb counties, Michigan.\nAs a result of the inspection, it is alleged that BGS has committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 192.465 External corrosion control: Monitoring and remediation.\n(a) ….\n(d) Each operator shall take prompt remedial action to correct any deficiencies\nindicated by the monitoring.1\n1 The readings taken and the PHMSA inspection were done before the new RIN 2 regulation came into effect.\nOriginally, the effective date was May 24, 2023, but was subsequently delayed until February 24, 2024.See Notice\nof Limited Enforcement Discretion for New and Replaced Onshore Gas Transmission Pipelines, April 17, 2023,\navailable at https://www.phmsa.dot.gov/news/notice-limited-enforcement-discretion-new-and-replaced-onshore-\ngas-transmission-pipelines. The original regulation cited above was in effect at the time of the records review of the\ncathodic protection.\n\n\n\nBGS did not take prompt remedial action to correct deficiencies from the annual cathodic\nprotection monitoring on the Kimball pipeline assets, per the requirements of §\n192.465(d). PHMSA reviewed BGS’s cathodic protection readings from 2021 to 2022\nand found that multiple locations had readings that were below -0.85v for consecutive\nyears. -0.85v is the threshold criteria BGS used to demonstrate compliance.\nAt the time of MIPSC’s inspection, BGS indicated it had initiated a program prior to the\ninspection to remove or replace all of the old piping to and from the compressor station\nwhich it diagnosed as the source of the deficient readings. The new piping was to be\ndesigned and installed to have minimal cathodic protection isolation points to reduce the\npotential of shorts, and was intended to address the low cathodic protection levels at these\nfacilities.\n2. § 192.947 What records must an operator keep?\nAn operator must maintain, for the useful life of the pipeline, records that\ndemonstrate compliance with the requirements of this subpart. At minimum, an\noperator must maintain the following records for review during an inspection.\n(a) ….\n(d) Documents to support any decision, analysis and process developed and used to\nimplement and evaluate each element of the baseline assessment plan and integrity\nmanagement program. Documents include those developed and used in support of\nany identification, calculation, amendment, modification, justification, deviation\nand determination made, and any action taken to implement and evaluate any of the\nprogram elements;\nBGS did not document decisions and/or any analyses used to implement and evaluate\neach element of the baseline assessment plan and integrity management program, per the\nrequirements of § 192.947(d). Specifically, for its baseline assessments and the continual\nevaluations and assessments, BGS offered phone and email conversations that alluded to\nthe validation of their inline inspection tool runs, but BGS was unable to provide records\nof the decisions made (such as the decision to accept the tool run results). Documentation\nof these decisions is a requirement of § 192.947(d) and must be maintained to\ndemonstrate compliance to the regulation.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$266,015 per violation per day the violation persists, up to a maximum of $2,660,135 for a\nrelated series of violations. For violation occurring on or after January 6, 2023 and before\nDecember 28, 2023, the maximum penalty may not exceed $257,664 per violation per day the\nviolation persists, up to a maximum of $2,576,627 for a related series of violations. For violation\noccurring on or after March 21, 2022 and before January 6, 2023, the maximum penalty may not\nexceed $239,142 per violation per day the violation persists, up to a maximum of $2,391,142 for\na related series of violations. For violation occurring on or after May 3, 2021 and before March\n\n\n\n21, 2022, the maximum penalty may not exceed $225,134 per violation per day the violation\npersists, up to a maximum of $2,251,334 for a related series of violations. For violation\noccurring on or after January 11, 2021 and before May 3, 2021, the maximum penalty may not\nexceed $222,504 per violation per day the violation persists, up to a maximum of $2,225,034 for\na related 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.\nWe have reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at this\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nBGS being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 3-2024-046-WL. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. § 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nGregory A. Ochs\nDirector, Central Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Jeffrey Westrick, Asset Manager Bluewater Facilities, Bluewater Gas Storage, LLC,\njeffrey.westrick@wecenergygroup.com\nRita Reed, Engineering Specialist, Bluewater Gas Storage, LLC,\nrita.reed@wecenergygroup.com","truncated":false,"body_characters":7616}