# FERRELLGAS — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 32024049NOPV
- **title:** FERRELLGAS — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** current
- **official:** true
- **published on:** 2024-07-02
- **effective on:** Not available
- **summary:** OPEN notice of probable violation citing 192.1007(f), 192.11(b), 192.723(b), 192.807(b).
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- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-32024049nopv
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/32024049NOPV
**body:**

Notice of Probable Violation involving FERRELLGAS. PHMSA's enforcement data identifies the cited regulations as 192.1007(f),  192.11(b),  192.723(b),  192.807(b). The case was opened on 2024-07-02 and is reported as open. Proposed civil penalty: $26,000. Assessed civil penalty: $7,400. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

32024049NOPV_Consent Agreement and Order_06182025 (23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_Consent%20Agreement%20and%20Order_06182025%20(23-264476).pdf

32024049NOPV_Consent Agreement and Order_06182025_(23-264476)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_Consent%20Agreement%20and%20Order_06182025_(23-264476)_text.pdf

32024049NOPV_Operator Response to Notice and Informal Settlement Discussion (SUPPLEMENTAL)_11112024_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_Operator%20Response%20to%20Notice%20and%20Informal%20Settlement%20Discussion%20(SUPPLEMENTAL)_11112024_(23-264476).pdf

32024049NOPV_Operator Response to Notice and Request Time Extension Request Hearing Request Case File Informal Settlement Conference_07312024_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_Operator%20Response%20to%20Notice%20and%20Request%20Time%20Extension%20Request%20Hearing%20Request%20Case%20File%20Informal%20Settlement%20Conference_07312024_(23-264476).pdf

32024049NOPV_Operator Withdrawal of Hearing Request_06232025_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_Operator%20Withdrawal%20of%20Hearing%20Request_06232025_(23-264476).pdf

32024049NOPV_PCP PCO_07022024_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PCP%20PCO_07022024_(23-264476).pdf

32024049NOPV_PCP PCO_07022024_(23-264476)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PCP%20PCO_07022024_(23-264476)_text.pdf

32024049NOPV_PHC Hearing Rescheduled_03172025_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PHC%20Hearing%20Rescheduled_03172025_(23-264476).pdf

32024049NOPV_PHC Hearing Rescheduled_03172025_(23-264476)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PHC%20Hearing%20Rescheduled_03172025_(23-264476)_text.pdf

32024049NOPV_PHC Hearing Rescheduled_12162024_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PHC%20Hearing%20Rescheduled_12162024_(23-264476).pdf

32024049NOPV_PHC Hearing Rescheduled_12162024_(23-264476)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PHC%20Hearing%20Rescheduled_12162024_(23-264476)_text.pdf

32024049NOPV_PHC Hearing Scheduled_08232024_(23-264476).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PHC%20Hearing%20Scheduled_08232024_(23-264476).pdf

32024049NOPV_PHC Hearing Scheduled_08232024_(23-264476)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024049NOPV/32024049NOPV_PHC%20Hearing%20Scheduled_08232024_(23-264476)_text.pdf

32024049NOPV_Consent Agreement and Order_06182025_(23-264476)_text.pdf

June 18, 2025
VIA MAIL TO: jamesferrell@ferrellgas.com; johnfegett@ferrellgas.com;
davepeters@ferrellgascom
Mr. James E. Ferrell
Executive Chairman/President
Ferrellgas, L.P.
One Liberty Plaza
Liberty, Missouri 64068
CPF No. 3-2024-049-NOPV
Dear Mr. Ferrell:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Ferrellgas, L.P., which
was executed on June 16, 2025. Service of the Consent Order and Consent Agreement by
electronic mail is deemed effective upon the date of transmission and acknowledgement of receipt,
or as otherwise provided under 49 CFR § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Timothy Gaither
Acting Associate Administrator
for Pipeline Safety
Enclosure: Consent Order and Consent Agreement
cc: Dave Berrett, Acting Regional Director, PHMSA, Office of Pipeline Safety
Jordan Burns, Vice President – Legal, Ferrellgas, L.P.
John Fegett, DOT Compliance Asst., Ferrellgas, L.P.



Rufus Youngblood, Director Safety, Ferrellgas, L.P., rufusyoungblood@ferrellgas.com
Megan Haines, Counsel, Reed Smith, LLP, mhaines@reedsmith.com
Mary Balaster, Counsel, Reed Smith, LLP, mbalaster@reedsmith.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Ferrellgas, L.P., ) CPF No. 3-2024-049-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT ORDER
By letter dated July 2, 2024, pursuant to 49 CFR § 190.207, the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of
Probable Violation, Proposed Civil Penalty, and Proposed Compliance (Notice) to [Ferrellgas,
L.P. (Ferrellgas or Respondent).
In response to the Notice, Respondent contested several of the alleged violations, the proposed
civil penalty, and the proposed compliance order, and requested a hearing (Response). Ferrellgas
also requested to meet informally with PHMSA to discuss the matters raised in its Response.
Respondent and PHMSA (the Parties) subsequently met on September 12, 2024. As a result of
those discussions, the Parties have agreed to a Consent Agreement by which PHMSA makes
findings of violations for Notice Items 3 and 4, Respondent will pay a reduced civil penalty in
the amount of $7,400, and Respondent will carry out certain additional actions for Item 2. Item 1
of the Notice was brought as a warning item and does not constitute a finding of violation.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order issued pursuant to § 190.219. Ferrellgas is hereby ordered to comply with the
terms of the Consent Agreement pursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq.,
failure to comply with this Consent Order may result in the assessment of civil penalties as set
forth in 49 U.S.C. § 60122 and 49 CFR § 190.223, or in referral to the Attorney General for
appropriate relief in a district court of the United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 CFR § 190.5.
______________________ ______________________
Timothy Gaither Date Issued
Acting Associate Administrator
for Pipeline Safety



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Ferrellgas, L.P. ) CPF No. 3-2024-049-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From May 15 through May 19, 2023, a representative of the Pipeline and Hazardous Materials
Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of
Title 49, United States Code (U.S.C.), inspected Ferrellgas, L.P.’s (Ferrellgas or Respondent)
petroleum gas system in Green Bay, Wisconsin.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated July 2, 2024, a Notice of Probable Violation, Proposed Civil Penalty, and
Proposed Compliance Order (Notice), which also included a warning pursuant to 49 CFR §
190.205. In accordance with 49 CFR § 190.207, the Notice proposed finding that Ferrellgas
committed three violations of 49 CFR Part 192 (Items 2 – 4), proposed ordering Respondent to
take certain measures to correct the alleged violations and proposed a civil penalty of $26,000.
One probable violation (Item 1) was brought as a warning, advising the operator to correct the
probable violation or face potential future enforcement action.
Ferrellgas responded to the Notice by letter dated July 31, 2024 (Response). Respondent
contested several of the alleged violations, the proposed civil penalty, and the proposed
compliance order, and requested a hearing. Ferrellgas also requested to meet informally with
PHMSA to discuss the matters raised in its Response. Respondent submitted an additional
response on November 11, 2024.
PHMSA and Respondent (the Parties) met to discuss the issues raised in the Response. The
Parties have agreed to a Consent Agreement by which PHMSA makes findings of violations for
Items 3 and 4 as alleged in the Notice, PHMSA reconsiders certain other items, Respondent will
pay a reduced civil penalty in the amount of $7,400, and Respondent will complete certain
compliance actions.



Having agreed that settlement of this proceeding will avoid further administrative proceedings or
litigation and will serve the public interest by promoting safety and protection of the
environment, pursuant to 49 U.S.C. § 60101, et seq. and 49 CFR Part 190, and upon consent and
agreement, the Parties hereby agree as follows:
I. General Provisions
1. Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the
Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent
acknowledges that it received proper notice of PHMSA’s action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,
and the regulations and orders issued thereunder.
2. After Respondent returns this signed Agreement to PHMSA, the Agency’s
representative will present it to the Associate Administrator for Pipeline Safety, recommending
that the Associate Administrator adopt the terms of this Agreement by issuing an administrative
order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.
3. Upon the Effective Date of this Agreement, Respondent consents to the issuance
of the Consent Order and waives any further procedural requirements with respect to its
issuance. Upon the Effective Date of this Agreement, Respondent agrees to waive all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except for the Dispute Resolution
provisions set forth herein. Upon the Effective Date of this Agreement, Respondent agrees to
withdraw its request for an administrative hearing regarding the Notice.
4. This Agreement shall apply to and be binding upon PHMSA and Respondent, its
officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Respondent’s officers, employees, and agents
whose duties might reasonably include compliance with this Agreement.
5. This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement.
The Parties acknowledge that there are no representations, agreements or understandings relating
to settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.
6. Except as set forth herein, nothing in this Agreement affects or relieves
Respondent of its responsibility to comply with all applicable requirements of the Federal
pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued
thereunder. Nothing in this Agreement alters PHMSA's right of access, entry, inspection, and



information gathering or PHMSA's authority to bring enforcement actions against Respondent
pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any
other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Respondent’s pipeline
system referenced herein, Respondent will provide a copy of this Agreement to the prospective
transferee at least 30 days prior to such transfer. Respondent will provide written notice of the
transfer to the Director no later than 60 days after the transfer occurs.
8. This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent’s pipeline systems. This Agreement is not a
permit, or a modification of any permit, under any Federal, State, or local laws or regulations.
Respondent remains responsible for achieving and maintaining compliance with all applicable
Federal, State, and local laws, regulations and permits.
9. This Agreement does not create rights in, or grant any cause of action to, any third
party not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. The U. S.
Department of Transportation, its officers, employees, agents, and representatives shall not be
liable for any cause of action arising from any acts or omissions of Respondent or its contractors
in carrying out any work required by this Agreement.
10. This Agreement does not constitute a finding of violation of any other federal law
or regulation and may not be used in any civil proceeding of any kind as evidence or proof of
any fact, fault or liability, or as evidence of a violation of any law, rule, regulation, or
requirement, except in a proceeding to enforce the provisions of this Agreement or for the
purpose of calculating civil penalties for future violations that may occur within five years of the
Effective Date.
11. Respondent does not admit or deny any of the allegations in the Notice but agrees,
for purposes of this Agreement, to complete the actions specified in Sections IV, V, and VI of
this Agreement and to abide by the terms of this Agreement. The agreements, statements,
stipulations, findings and actions described herein are made for the purpose of settling this matter
and they shall not be used for any purpose or be pursued by any person, other than any future
enforcement proceeding brought by PHMSA related to this Agreement or for the purpose of
calculating civil penalties for future violations that may occur within five years of the Effective
Date.
II. Findings of Violation:
12. Item 3 - 49 CFR § 192.807(b): The Notice alleged Ferrellgas failed to retain an
individual’s plastic joining qualification record for the required five-year period. PHMSA finds
a violation of 49 CFR § 192.807(b).
13. Item 4 - 49 CFR § 192.1007(f): The Notice alleged Ferrellgas failed to determine
an appropriate time-period for conducting a periodic evaluation of its integrity management plan



and failed to conduct a complete program re-evaluation within the required five-year period.
PHMSA finds a violation of 49 CFR § 192.1007(f).
14. Item 3 and 4 will be considered by PHMSA as prior offenses in any future
PHMSA enforcement action taken against Respondent for the purposes of calculating civil
penalties for future violations that may occur within five years of the Effective Date.
III. Warning Item:
15. Item 1 - 49 CFR § 192.11(b): The Notice alleged that Ferrellgas failed to ensure
that two container nameplates at the Heritage Lake System comported with NFPA-58
(incorporated by reference, see § 192.7), specifically NFPA 58 § 5.2.8.32(B). This Item was
brought as a warning Item and does not constitute a finding of violation.
IV. Notice of Amendment:
16. Item 2 - 49 CFR § 192.723(b): The Notice alleged that Ferrellgas failed to have a
leakage control program of a type and scope that was determined by the nature of operations,
specifically operating subsurface petroleum gas pipelines. Following discussion, the Parties
agree that this Item should be a Notice of Amendment item, which will not constitute a finding
of violation for any purpose.
17. With respect to this Item, Respondent agrees to amend its procedures to carry out
a dual track leakage survey testing program on all six of its jurisdictional systems. Ferrellgas
shall carry out the dual track testing program by performing its leakage surveys first using (a) a
hydrogen flame ionization (“FI”) gas detector, coupled with pinpointing and grading with a
Combustible Gas Indicator (“CGI”) (“Current Methodology”) and then (b) CGI with barholes at
intervals of 20 feet or less across the system (“CGI Barhole Methodology”). The CGI Barhole
Methodology shall be performed following, as applicable to Ferrellgas’ systems, the
methodology described in ANSI GPTC 2380.1 2022, The Guide for Gas Transmission,
Distribution, and Gathering Pipeline Systems, Guide material Appendix G 192 11A, section
4.4(a). Respondent shall continue this dual track testing program until two underground leaks
are detected by the CGI Barhole Methodology. Both methods must follow Ferrellgas
procedures, be conducted by qualified individuals, and use calibrated and tested detection
instruments.
18. Within 90 days of detecting the second underground leak, Ferrellgas shall
compare the methods and resulting data from the dual track testing program. If the Current
Methodology had the same results as the CGI Barhole Methodology, demonstrating that both
methods are equally capable of detecting leaks, Ferrellgas may stop the dual track testing
program and revert to using the Current Methodology. If the data shows that the CGI Barhole
Methodology identified leaks that were undetected by the Current Methodology, Ferrellgas shall
amend its operating procedures, within 90 days of the data comparison, to use the CGI Barhole
Methodology for its leakage surveys. Alternatively, at any time Ferrellgas may voluntarily elect
to cease the dual track testing program and only perform the CGI Barhole Methodology and will
notify PHMSA of its decision to do so within 90 days of the decision.



19. Until the completion of the process described in paragraphs 17 and 18 above,
Respondent must provide bi-annual updates, every six months from the Effective Date of this
Agreement, of its progress to the Director, PHMSA Central Region, Office of Pipeline Safety.
Within 90 days of the completion of the process described in paragraphs 17 and 18 above,
Ferrellgas must notify the Director of the results, and provide a copy of the data comparison
described in paragraph 17 above and a copy of any amended procedures for review.
V. Civil Penalty:
20. Item 3: The Notice proposed assessing a civil penalty in the amount of $26,000
for Item 3. Respondent requested a reduction of the proposed civil penalty. PHMSA agrees that
a reduction to the proposed civil penalty is appropriate based on reconsideration of the “Good
Faith” criteria. Based on additional information received from Respondent during informal
discussion, Ferrellgas had a reasonable justification for its non-compliance. Respondent agrees
to pay a reduced civil penalty in the amount of $7,400 for the violation in Item 3.
21. Respondent will pay a total reduced civil penalty in the amount of $7,400,
pursuant to the payment instructions at 49 CFR § 190.227(a), to be paid in full no later than 20
days from the Effective Date of this Agreement.
VI. Compliance Order:
22. Item 3: The Notice did not propose a compliance order to address the non-
compliance alleged in Item 3. However, as a product of the informal consultations, the Parties
agree that Ferrellgas will amend its operating procedures to require an annual audit of its
Operator Qualification (OQ) records to ensure they are retained pursuant to the requirements of §
192.807(b). As such, Respondent agrees to undertake the following corrective measure:
Ferrellgas must amend its operating procedures to require an annual audit of its OQ
records to ensure they are retained pursuant to the requirements of § 192.807(b), and
provide documentation of the amendment to the Director, PHMSA Central Region, Office
of Pipeline Safety, within 60 days of receipt of the Effective Date of this Agreement.
23. Item 4: The Notice proposed certain compliance order actions to address the non-
compliance alleged in Item 4. Respondent did not contest the Proposed Compliance Order but
requested additional time to carry out the proposed actions. The Parties agree that the request is
reasonable and appropriate. As such, Respondent agrees to perform the following corrective
measures:
Ferrellgas must re-evaluate its distribution integrity management program (DIMP) as
required by § 192.1007(f) and provide the documentation to the Director, PHMSA Central
Region, Office of Pipeline Safety, within 90 days of receipt of the Effective Date of this
Agreement.



VII. Enforcement:
24. This Agreement is subject to all enforcement authorities available to PHMSA
under 49 U.S.C. § 60101, et seq., and 49 CFR Part 190, including administrative civil penalties
under 49 U.S.C. § 60122, of up to $272,926 per violation for each day the violation continues and
referral of the case to the Attorney General for judicial enforcement, if PHMSA determines that
Respondent is not complying with the terms of this Agreement in accordance with the
determinations made by the Director, or in accordance with decisions of the Associate
Administrator if resolved pursuant to the Dispute Resolution process herein. The maximum civil
penalty amounts are adjusted annually for inflation. See 49 CFR § 190.223. All work plans and
associated schedules set forth or referenced in Section VI (Compliance Order) are automatically
incorporated into this Agreement and are enforceable in the same manner.
VIII. Dispute Resolution:
25. The Director and Respondent will informally attempt to resolve any disputes
arising under this Agreement, including, but not limited to, any decision of the Director under the
terms of Sections VI (Compliance Order). If Respondent and the Director are unable to
informally resolve the dispute within 15 calendar days after the dispute is first raised, in writing,
to the Director, Respondent may submit a written request for a determination resolving the
dispute from the Associate Administrator. Such request must be made in writing and provided to
the Director, counsel for the Central Region, and to the Associate Administrator, no later than 10
calendar days from the 15-day deadline for informal resolution referenced in this paragraph.
Along with its request, Respondent must provide the Associate Administrator with all
information Respondent believes is relevant to the dispute. Decisions of the Associate
Administrator under this paragraph will constitute final agency action subject to judicial review
pursuant to 49 U.S.C. § 60119. The existence of a dispute and PHMSA’s consideration of
matters placed in dispute will not excuse, toll, or suspend any term or timeframe for completion
of any work to be performed under this Agreement during the pendency of the dispute resolution
process. However, PHMSA will grant reasonable extensions upon written request by
Respondent.
IX. Effective Date:
26. The term “Effective Date,” as used herein, is the date on which the Consent Order
is issued by the Associate Administrator incorporating the terms of this Agreement.
X. Recordkeeping and Information Disclosure:
27. Unless otherwise required in this Agreement, Respondent agrees to maintain
records demonstrating compliance with all requirements of this Agreement for a period of at
least five (5) years following completion of all work to be performed, unless a longer period of
time is required pursuant to 49 CFR parts 190-199. For any reports, plans, or other deliverables
required to be submitted to PHMSA pursuant to this Agreement, Respondent may assert a claim
of business confidentiality or other protections applicable to the release of information by
PHMSA, covering part or all of the information required to be submitted to PHMSA pursuant to
this Agreement in accordance with 49 CFR Part 7. Respondent must mark the claim of



confidentiality in writing on each page, and include a statement specifying the grounds for each
claim of confidentially. PHMSA determines release of any information submitted pursuant to
this Agreement in accordance with 49 CFR Part 7, the Freedom of Information Act, 5 U.S.C. §
552, DOT and PHMSA policies, and other applicable regulations and Executive Orders.
XI. Modification:
28. The terms of this Agreement may be modified by mutual agreement of the Parties.
Such modifications must be in writing and signed by both parties.
XII. Termination:
29. This Agreement will remain in effect until the Civil Penalty in Section V is paid
in full, and the Compliance Order in Section VI and the actions specified in Section IV are
satisfied, as determined by the Director, PHMSA Central Region, Office of Pipeline Safety, and
confirmed in writing. Nothing in this Agreement prevents Respondent from completing any of
the obligations earlier than the deadlines provided for in this Agreement.
XIII. Ratification:
30. The Parties’ undersigned representatives certify that they are fully authorized to
enter into the terms and conditions of this Agreement and to execute and legally bind such party
to this document.
31. The Parties hereby agree to all findings, conditions, and terms of this Agreement.
[Signature Lines on Following Page]



For Ferrellgas, L.P.:
___________________________________
________________________
Date
For PHMSA:
________________________________________
Director, PHMSA Central Region, Office of Pipeline Safety

32024049NOPV_PHC Hearing Rescheduled_12162024_(23-264476)_text.pdf

Date: December 16, 2024
From: Joseph St. Peter
To: File
Re: Continuance of Informal Hearing in CPF No. 3-2024-049-NOPV (Ferrellgas, LP)
By electronic mail dated December 10, 2024, Megan Haines, Counsel for Ferrellgas, LP,
submitted a request for a continuance of the informal hearing in this case previously scheduled to
be held on January 14, 2025. Ferrellgas specified dates in March 2025 on which they and
PHMSA’s Central Region were available to conduct the hearing. Central Region has indicated it
does not oppose Ferrellgas’ request for a continuance. I grant the request for a continuance of
the hearing. The informal hearing in this case will be held via videoconference on March 27,
2025, at 8:30 a.m. Central time. Pre-hearing submissions under 49 CFR § 190.211(d) are due no
later than March 17, 2025.

32024049NOPV_Consent Agreement and Order_06182025 (23-264476).pdf

U.S. Department
of Transportation
Washington, DC 20590
1200 New Jersey Avenue, SE
Materials Safety
Pipeline and Hazardous
Administration
June 18, 2025
VIA MAIL TO: jamesferrell@ferrellgas.com; johnfegett@ferrellgas.com;
davepeters@ferrellgascom
Mr. James E. Ferrell
Executive Chairman/President
Ferrellgas, L.P.
One Liberty Plaza
Liberty, Missouri 64068
CPF No. 3-2024-049-NOPV
Dear Mr. Ferrell:
Enclosed please find a Consent Order incorporating the terms of the Consent Agreement between
the Pipeline and Hazardous Materials Safety Administration (PHMSA) and Ferrellgas, L.P., which
was executed on June 16, 2025. Service of the Consent Order and Consent Agreement by
electronic mail is deemed effective upon the date of transmission and acknowledgement of receipt,
or as otherwise provided under 49 CFR § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
TIMOTHY MICHAEL MICHAEL GAITHER
Digitally signed by TIMOTHY
GAITHER
-04'00'
Date: 2025.06.18 15:16:30
Timothy Gaither
Acting Associate Administrator
for Pipeline Safety
Enclosure: Consent Order and Consent Agreement
CC:
Dave Berrett, Acting Regional Director, PHMSA, Office of Pipeline Safety
Jordan Burns, Vice President - Legal, Ferrellgas, L.P.
John Fegett, DOT Compliance Asst., Ferrellgas, L.P.



Rufus Youngblood, Director Safety, Ferrellgas, L.P., rufusyoungblood@ferrellgas.com
Megan Haines, Counsel, Reed Smith, LLP, mhaines@reedsmith.com
Mary Balaster, Counsel, Reed Smith, LLP, mbalaster@reedsmith.com
CONFIRMATION OF RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
)
In the Matter of
Ferrellgas, L.P.,
CPF No. 3-2024-049-NOPV
Respondent.
CONSENT ORDER
By letter dated July 2, 2024, pursuant to 49 CFR § 190.207, the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), issued a Notice of
Probable Violation, Proposed Civil Penalty, and Proposed Compliance (Notice) to Ferrellgas,
L.P. (Ferrellgas or Respondent).
In response to the Notice, Respondent contested several of the alleged violations, the proposed
civil penalty, and the proposed compliance order, and requested a hearing (Response). Ferrellgas
also requested to meet informally with PHMSA to discuss the matters raised in its Response.
Respondent and PHMSA (the Parties) subsequently met on September 12, 2024. As a result of
those discussions, the Parties have agreed to a Consent Agreement by which PHMSA makes
findings of violations for Notice Items 3 and 4, Respondent will pay a reduced civil penalty in
the amount of $7,400, and Respondent will carry out certain additional actions for Item 2. Item 1
of the Notice was brought as a warning item and does not constitute a finding of violation.
Accordingly, the Consent Agreement is hereby approved and incorporated by reference into this
Consent Order issued pursuant to § 190.219. Ferrellgas is hereby ordered to comply with the
terms of the Consent Agreement pursuant to its terms. Pursuant to 49 U.S.C. § 60101, et seq.,
failure to comply with this Consent Order may result in the assessment of civil penalties as set
forth in 49 U.S.C. § 60122 and 49 CFR § 190.223, or in referral to the Attorney General for
appropriate relief in a district court of the United States.
The terms and conditions of this Consent Order are effective upon service in accordance with
49 CFR § 190.5.
TIMOTHY MICHAEL MICHAEL GAITHER
Digitally signed by TIMOTHY
GAITHER
Date: 2025.06.18 15:16:08
-04'00'
6/18/2025
Timothy Gaither
Date Issued
Acting Associate Administrator
for Pipeline Safety



CPF No. 3-2024-049-NOPV
Page 1
U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Ferrellgas, L.P. ) CPF No. 3-2024-049-NOPV
)
)
)
Respondent. )
____________________________________)
CONSENT AGREEMENT
From May 15 through May 19, 2023, a representative of the Pipeline and Hazardous Materials
Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of
Title 49, United States Code (U.S.C.), inspected Ferrellgas, L.P.’s (Ferrellgas or Respondent)
petroleum gas system in Green Bay, Wisconsin.
As a result of the inspection, the Director, Central Region, OPS (Director), issued to Respondent,
by letter dated July 2, 2024, a Notice of Probable Violation, Proposed Civil Penalty, and
Proposed Compliance Order (Notice), which also included a warning pursuant to 49 CFR §
190.205. In accordance with 49 CFR § 190.207, the Notice proposed finding that Ferrellgas
committed three violations of 49 CFR Part 192 (Items 2 – 4), proposed ordering Respondent to
take certain measures to correct the alleged violations and proposed a civil penalty of $26,000.
One probable violation (Item 1) was brought as a warning, advising the operator to correct the
probable violation or face potential future enforcement action.
Ferrellgas responded to the Notice by letter dated July 31, 2024 (Response). Respondent
contested several of the alleged violations, the proposed civil penalty, and the proposed
compliance order, and requested a hearing. Ferrellgas also requested to meet informally with
PHMSA to discuss the matters raised in its Response. Respondent submitted an additional
response on November 11, 2024.
PHMSA and Respondent (the Parties) met to discuss the issues raised in the Response. The
Parties have agreed to a Consent Agreement by which PHMSA makes findings of violations for
Items 3 and 4 as alleged in the Notice, PHMSA reconsiders certain other items, Respondent will
pay a reduced civil penalty in the amount of $7,400, and Respondent will complete certain
compliance actions.



Having agreed that settlement of this proceeding will avoid further administrative proceedings
or litigation and will serve the public interest by promoting safety and protection of the
environment, pursuant to 49 U.S.C. § 60101, et seq. and 49 CFR Part 190, and upon consent and
agreement, the Parties hereby agree as follows:
I. General Provisions
1.
Respondent acknowledges that as the operator of the pipeline facilities subject to
the Notice, Respondent and its referenced pipeline facilities are subject to the jurisdiction of the
Federal pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and administrative
orders issued thereunder. For purposes of this Consent Agreement (Agreement), Respondent
acknowledges that it received proper notice of PHMSA's action in this proceeding and that the
Notice states claims upon which relief may be granted pursuant to 49 U.S.C. § 60101, et seq.,
and the regulations and orders issued thereunder.
2.
After Respondent retuns this signed Agreement to PHMSA, the Agency's
representative will present it to the Associate Administrator for Pipeline Safety, recommending
that the Associate Administrator adopt the terms of this Agreement by issuing an administrative
order (Consent Order) incorporating the terms of this Agreement. The terms of this Agreement
constitute an offer of settlement until accepted by the Associate Administrator. Once accepted,
the Associate Administrator will issue a Consent Order incorporating the terms of this Agreement.
3.
Upon the Effective Date of this Agreement, Respondent consents to the issuance
of the Consent Order and waives any further procedural requirements with respect to its
issuance. Upon the Effective Date of this Agreement, Respondent agrees to waive all rights to
contest the adequacy of notice, or the validity of the Consent Order or this Agreement, including
all rights to administrative or judicial hearings or appeals, except for the Dispute Resolution
provisions set forth herein. Upon the Effective Date of this Agreement, Respondent agrees to
withdraw its request for an administrative hearing regarding the Notice.
This Agreement shall apply to and be binding upon PHMSA and Respondent, its
officers, directors, and employees, and its successors, assigns, or other entities or persons
otherwise bound by law. Respondent agrees to provide a copy of this Agreement and any
incorporated work plans and schedules to all of Respondent's officers, employees, and agents
whose duties might reasonably include compliance with this Agreement.
5.
This Agreement constitutes the final, complete and exclusive agreement and
understanding between the Parties with respect to the settlement embodied in this Agreement.
The Parties acknowledge that there are no representations, agreements or understandings relating
to settlement other than those expressly contained in this Agreement, except that the terms of this
Agreement may be construed by reference to the Notice.
6.
Except as set forth herein, nothing in this Agreement affects or relieves
Respondent of its responsibility to comply with all applicable requirements of the Federal
pipeline safety laws, 49 U.S.C. § 60101, et seq., and the regulations and orders issued
thereunder. Nothing in this Agreement alters PHMSA's right of access, entry, inspection, and



information gathering or PHMSA's authority to bring enforcement actions against Respondent
pursuant to the Federal pipeline safety laws, the regulations and orders issued thereunder, or any
other provision of Federal or State law.
7. For all transfers of ownership or operating responsibility of Respondent's pipeline
system referenced herein, Respondent will provide a copy of this Agreement to the prospective
transferee at least 30 days prior to such transfer. Respondent will provide written notice of the
transfer to the Director no later than 60 days after the transfer occurs.
This Agreement does not waive or modify any Federal, State, or local laws or
regulations that are applicable to Respondent's pipeline systems. This Agreement is not a permit,
or a modification of any permit, under any Federal, State, or local laws or regulations.
Respondent remains responsible for achieving and maintaining compliance with all applicable
Federal, State, and local laws, regulations and permits.
9.
This Agreement does not create rights in, or grant any cause of action to, any third
party not party to this Agreement. The U.S. Department of Transportation is not liable for any
injuries or damages to persons or property arising from acts or omissions of Respondent or its
officers, employees, or agents carrying out the work required by this Agreement. The U. S.
Department of Transportation, its officers, employees, agents, and representatives shall not be
liable for any cause of action arising from any acts or omissions of Respondent or its contractors
in carrying out any work required by this Agreement.
10. This Agreement does not constitute a finding of violation of any other federal law
or regulation and may not be used in any civil proceeding of any kind as evidence or proof of any
fact, fault or liability, or as evidence of a violation of any law, rule, regulation, or requirement,
except in a proceeding to enforce the provisions of this Agreement or for the purpose of
calculating civil penalties for future violations that may occur within five years of the Effective
Date.
11. Respondent does not admit or deny any of the allegations in the Notice but agrees,
for purposes of this Agreement, to complete the actions specified in Sections IV, V, and VI of
this Agreement and to abide by the terms of this Agreement. The agreements, statements,
stipulations, findings and actions described herein are made for the purpose of settling this matter
and they shall not be used for any purpose or be pursued by any person, other than any future
enforcement proceeding brought by PHMSA related to this Agreement or for the purpose of
calculating civil penalties for future violations that may occur within five years of the Effective
Date.
II. Findings of Violation:
12. Item 3 - 49 CFR § 192.807(b): The Notice alleged Ferrellgas failed to retain an
individual's plastic joining qualification record for the required five-year period. PHMSA finds
a violation of 49 CFR § 192.807(b).
13. Item 4 - 49 CFR § 192.1007(f): The Notice alleged Ferrellgas failed to determine
an appropriate time-period for conducting a periodic evaluation of its integrity management plan



and failed to conduct a complete program re-evaluation within the required five-year period.
PHMSA finds a violation of 49 CFR § 192.1007(f).
14. Item 3 and 4 will be considered by PHMSA as prior offenses in any future
PHMSA enforcement action taken against Respondent for the purposes of calculating civil
penalties for future violations that may occur within five years of the Effective Date.
III. Warning Item:
15. Item 1 - 49 CFR § 192.11(b): The Notice alleged that Ferrellgas failed to ensure
that two container nameplates at the Heritage Lake Syste
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