{"operation":"document","citation":"CPF 32024068WL","title":"NORTHERN NATURAL GAS CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-11-06","effective_on":null,"summary":"CLOSED warning letter citing 192.605(a), 192.709(c), 192.745(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024068wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024068wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-32024068wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/32024068WL","body":"Warning Letter involving NORTHERN NATURAL GAS CO. PHMSA's enforcement data identifies the cited regulations as 192.605(a),  192.709(c),  192.745(b). The case was opened on 2024-11-06 and is reported as closed as of 2024-11-06. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n32024068WL_Operator Response to Notice_12062024_(23-264601).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024068WL/32024068WL_Operator%20Response%20to%20Notice_12062024_(23-264601).pdf\n\n32024068WL_Warning Letter_11062024_(23-264601).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024068WL/32024068WL_Warning%20Letter_11062024_(23-264601).pdf\n\n32024068WL_Warning Letter_11062024_(23-264601)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32024068WL/32024068WL_Warning%20Letter_11062024_(23-264601)_text.pdf\n\n32024068WL_Warning Letter_11062024_(23-264601)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: mark.hewett@nngco.com; thomas.correll@nngco.com;\nkeith.good@nngco.com; john.gormley@nngco.com\nNovember 6, 2024\nMr. Mark Hewett\nPresident & CEO\nNorthern Natural Gas Company\n1111 S. 103rd Street\nOmaha, NE 68124\nCPF 3-2024-068-WL\nDear Mr. Hewett:\nFrom March 28 to October 2, 2023, a representative of the Pipeline and Hazardous Materials\nSafety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter 601 of 49\nUnited States Code (U.S.C.), inspected Northern Natural Gas Company’s (NNG) natural gas\npipeline system in Kansas and Nebraska.\nAs a result of the inspection, it is alleged that NNG have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected\nand the probable violations are:\n1. § 192.605 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 system\ncommence. Appropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\n\n\n\nNNG failed to follow its written procedures for conducting operations and maintenance\nactivities, per the requirements of § 192.605(a). Specifically, NNG failed to follow its Operations\nand Maintenance (O&M) Procedure 040.203, entitled “Impressed Current Source Inspection”\n(O&M 040.203), for inspection of cathodic protection rectifiers. O&M 040.203, section 5.2.4\nmandated comparing bi-monthly remote monitoring unit (RMU) readings of voltage and\namperage with manual multi-meter readings on an annual basis, to ensure RMU accuracy.\nDuring the PHMSA field inspection, PHMSA discussed the documented annual readings with\nNNG and NNG’s personnel confirmed that they were not recording the comparison of the\nmanual reading to the RMU reading, contrary to its O&M Procedure 40.203 and the\nrequirements of § 192.605(a).\n2. § 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 system\ncommence. Appropriate parts of the manual must be kept at locations where\noperations and maintenance activities are conducted.\nNNG failed to follow for each pipeline its manual of written procedures for conducting\noperations and maintenance activities, per the requirements of § 192.605(a). Specifically, NNG\nfailed to follow its O&M 160.101, entitled \"Valve Maintenance,\" section 5, which required\ntesting of each valve and documentation of the valve open/close as-found and as-left settings.\nPHMSA reviewed the valve maintenance records for 2020 through 2023 calendar years and\nfound that NNG failed to document the mode for which each valve was tested (e.g., manual or\nmotor operated) and the as-found and as-left settings were frequently not documented. This was\nfor all locations across NNG’s system.\n3. § 192.709 Transmission lines: Record Keeping.\n(a) . . . .\n(c) A record of each patrol, survey, inspection, and test required by subparts L and\nM of this part must be retained for at least 5 years or until the next patrol, survey,\ninspection, or test is completed, whichever is longer.\nNNG failed to retain records indicating the leakage survey methods used to survey Class 3\nlocations, per § 192.709(c). As required by § 192.706(a) of Subpart M, each operator should\nconduct leakage surveys in Class 3 locations using leak detector equipment. NNG did conduct\nthe leakage surveys; however NNG’s records did not indicate the type or model of leak detection\n\n\n\nequipment used during the leakage surveys at its Beatrice, Palmyra, and South Omaha pipeline\nsegments for calendar years 2020, 2021, 2022, and 2023.1\nWhile NNG did not record the type of equipment used in its leakage survey records, PHMSA\nobserved the leak detector equipment being used in the field and determined that NNG was\nutilizing the appropriate equipment.\n4. § 192.745 Valve maintenance: Transmission lines.\n(a) . . . .\n(b) Each operator must take prompt remedial action to correct any valve found\ninoperable, unless the operator designates an alternative valve.\nNNG failed to take prompt remedial action to correct a valve found inoperable, per the\nrequirements of § 192.745(b). Specifically, PHMSA reviewed NNG’s valve inspection records.\nFrom this review, PHMSA found that NNG determined the 6” Schuyler Branchline Block Valve\nAYA08 at milepost 33.52 in the Beatrice Unit to be inoperable after multiple attempts in March\n2022. NNG also failed to designate an alternative valve. NNG’s tracking system (EATS) showed\nthat project number 94181 was created to address repair of the valve, however, NNG did not\nperform the repair and no alternate valve was identified. NNG only visually inspected the valve\nin May 2022 and May 2023.\nPHMSA notified NNG during the inspection of the failure to designate an alternate valve. Upon\nbeing notified, NNG designated alternate valves on December 14, 2023, and updated the\ncomments on its EATS 94181.\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\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\n1 See Operations & Maintenance Enforcement Guidance, Part 192 Subparts L and M, PHMSA, at 100,\nhttps://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/docs/regulatory-compliance/pipeline/enforcement/5776/o-m-\nenforcement-guidance-part-192-7-21-2017.pdf (stating that records should indicate the type/model of any leak\ndetection equipment used).\n\n\n\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\nNNG 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 3-2024-068-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: Thomas Correll, Director, Pipeline Safety, Northern Natural Gas,\nthomas.correll@nngco.com\nJohn Gormley, Sr. Corrosion Specialist, Northern Natural Gas,\njohn.gormley@nngco.com\nKeith Good, Pipeline Safety Specialist, Northern Natural Gas,\nkeith.good@nngco.com","truncated":false,"body_characters":10054}