# LAKES GAS COMPANY — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 32025004NOPV
- **title:** LAKES GAS COMPANY — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2025-05-05
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.625(f), 192.723(b), 192.805(a).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-32025004nopv.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-32025004nopv.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-32025004nopv
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/32025004NOPV
**body:**

Notice of Probable Violation involving LAKES GAS COMPANY. PHMSA's enforcement data identifies the cited regulations as 192.625(f),  192.723(b),  192.805(a). The case was opened on 2025-05-05 and is reported as closed as of 2025-11-04. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

32025004NOPV_Closure Letter_11042025_(23-264480).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025004NOPV/32025004NOPV_Closure%20Letter_11042025_(23-264480).pdf

32025004NOPV_Closure Letter_11042025_(23-264480)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025004NOPV/32025004NOPV_Closure%20Letter_11042025_(23-264480)_text.pdf

32025004NOPV_Final Order_08072025_(23-264480).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025004NOPV/32025004NOPV_Final%20Order_08072025_(23-264480).pdf

32025004NOPV_Final Order_08072025_(23-264480)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025004NOPV/32025004NOPV_Final%20Order_08072025_(23-264480)_text.pdf

32025004NOPV_PCO_05052025_(23-264480).pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025004NOPV/32025004NOPV_PCO_05052025_(23-264480).pdf

32025004NOPV_PCO_05052025_(23-264480)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/32025004NOPV/32025004NOPV_PCO_05052025_(23-264480)_text.pdf

32025004NOPV_Final Order_08072025_(23-264480)_text.pdf

August 7, 2025
VIA ELECTRONIC MAIL TO: thampton@lakesgasco.com
Mr. Trent Hampton
Chief Executive Officer
Lakes Gas Company
26777 Fallbrook Ave,
Wyoming, Minnesota 55092
Re: CPF No. 3-2025-004-NOPV
Dear Mr. Hampton:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken to comply with the pipeline safety
regulations. When the terms of the compliance order are completed, as determined by the Acting
Director, Central Region, this enforcement action will be closed. Service of the Final Order by
e-mail is effective upon the date of transmission and acknowledgement of receipt as provided
under 49 CFR § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Linda Daugherty
Acting Associate Administrator
for Pipeline Safety
Enclosures (Final Order and NOPV)
cc: David Barrett, Acting Director, Central Region, Office of Pipeline Safety
Jason Hellendrung Manager of Physical Operations / Fleet Manager / Pipeline Manager,
jhellendrung@lakesgas.com



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
Lakes Gas Company, ) CPF No. 3-2025-004-NOPV
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
On May 5, 2025, pursuant to 49 CFR § 190.207, the Director, Central Region, Office of Pipeline
Safety (OPS), issued a Notice of Probable Violation (Notice) to Lakes Gas Company
(Respondent). The Notice proposed finding that Respondent had violated the pipeline safety
regulations in 49 CFR Part 192. The Notice also proposed certain measures to correct the
violations. Respondent did not contest the allegations of violation or corrective measures.
Based upon a review of all the evidence, pursuant to § 190.213, I find Respondent violated the
pipeline safety regulations listed below, as more fully described in the enclosed Notice, which is
incorporated by reference:
49 CFR § 192.625(f) (Item 1) ─ Respondent failed to assure the proper
concentration of odorant by failing to conduct periodic samplings of combustible
gases using instruments capable of determining the percentage of gas in the air at
which the odor becomes readily detectible.
49 CFR § 192.723(b) (Item 2) ─ Respondent failed to have a leakage control
program that takes into account the nature of the pipeline operations and local
conditions.
49 CFR § 192.805(a) (Item 3) ─ Respondent failed to follow its written
qualification program to identify covered tasks.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
Compliance Actions
Pursuant to 49 U.S.C. § 60118(b) and 49 CFR § 190.217, Respondent is ordered to take the



actions proposed in the enclosed Notice to correct the violations. The Acting Director may grant
an extension of time to comply with any of the required items upon a written request timely
submitted by the Respondent and demonstrating good cause for an extension. Upon completion
of the ordered actions, Respondent may request that the Acting Director close the case.
Respondent previously submitted evidence to show appropriate actions have been taken to
correct the violations. This evidence is currently under review by the Acting Director. Failure to
comply with this Order may result in the assessment of civil penalties under 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 order are effective upon service in accordance with 49 CFR
§ 190.5.
___________________________________ _________________________
Linda Daugherty Date Issued
Acting Associate Administrator
for Pipeline Safety



NOTICE OF PROBABLE VIOLATION
and
PROPOSED COMPLIANCE ORDER
VIA ELECTRONIC MAIL TO: thampton@lakesgasco.com; jhellendrung@lakesgas.com
May 5, 2025
Mr. Trent Hampton
Chief Executive Officer
Lakes Gas Company
26777 Fallbrook Ave,
Wyoming, Minnesota 55092
CPF 3-2025-004-NOPV
Dear Mr. Hampton:
From September 11 to September 15, 2023, a representative of the Pipeline and Hazardous
Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant to Chapter
601 of 49 United States Code (U.S.C.), inspected Lakes Gas Company’s (Lakes) petroleum gas
system in Sturgeon Bay, Wisconsin.
As a result of the inspection, it is alleged that Lakes has committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:
1. § 192.625 Odorization of gas.
(a) . . . .
(f) To assure the proper concentration of odorant in accordance with this section,
each operator must conduct periodic sampling of combustible gases using an
instrument capable of determining the percentage of gas in air at which the odor
becomes readily detectable. Operators of master meter systems may comply with
this requirement by-
(1) Receiving written verification from their gas source that the gas has the proper
concentration of odorant; and
(2) Conducting periodic "sniff" tests at the extremities of the system to confirm that
the gas contains odorant.



Lakes failed to assure the proper concentration of odorant in accordance with § 192.625(f).
Specifically, Lakes failed to conduct periodic sampling of combustible gases using an instrument
capable of determining the percentage of gas in air at which the odor becomes readily
detectable.1 Lakes’ “Operation and Maintenance Procedure” (O&M Procedure), section
192.625, “Odorization of Gas,” stated, “Odorators are available to determine that the level of
stench is detectable at a minimum of 1/5 the lower explosion level (LEL). This method of
odorant detection needs to be performed quarterly and recorded.” However, based on PHMSA’s
review of Lakes’ records, odorator reading detection levels were never performed or recorded on
the Propane Odorization Form, which Lakes used to record this information. Furthermore,
Lakes, during the inspection, stated it did not have an odorator to determine the percentage of gas
in the air at which the odor would become readily detectable. Therefore, Lakes failed to conduct
periodic sampling of combustible gases using an instrument capable of determining the
percentage of gas in air at which the odor becomes readily detectable, per the requirements of §
192.625(f).
2. § 192.723 Distribution systems: Leakage surveys.
(a) . . . .
(b) The type and scope of the leakage control program must be determined by the
nature of the operations and the local conditions, but it must meet the following
minimum requirements:
Lakes failed to have a leakage control program determined by the nature of the operations and
the local conditions, per the requirements of § 192.723(b). Specifically, Lakes’ leakage control
program did not utilize survey methods determined by the nature of operating subsurface
petroleum gas pipelines.
From a review of Lakes’ records, PHMSA determined that leak surveys conducted on July 15,
16, and 17, 2020, were only performed above the ground surface, despite Lakes’ petroleum gas
system being subsurface. Petroleum gas vapor’s gravity range is 1.6 to 2.0 times heavier than
air.
2 Consequently, when petroleum gas vapor escapes it has a tendency to settle in low places,
and to move along the bottom of ditch lines and substructures unless substantial air movement
dissipates it.3 Under normal conditions, it does not vent to the surface.4 Additionally, under
certain conditions (e.g., during conditions where topsoil is extremely wet or freezes) the gas may
be trapped underground, unable to be detected by surface leak detection methods.5 The Lakes’
Training Exercise 708 Leak Surveys only instructed employees how to conduct surface gas
detection surveys. Lakes’ procedures did not require any subsurface leak surveys, despite Lakes’
system having subsurface petroleum gas pipelines.
1 Since Lakes was not operating a master meter system, the only acceptable method of complying was to use an
instrument capable of determining the percentage of gas in air at which the odor becomes readily detectable.
2 See The Guide for Gas Transmission, Distribution, and Gathering Piping Systems, American Gas Association, Gas
Piping Technology Committee Z380 (2022) (hereinafter “GPTC Guide”), at 922.
3 Id.
4 Id.
5 See PHMSA Advisory Bulletin, ADB-02-05, 67 Fed. Reg, 57,484, 57,485 (Sept. 10, 2022),
https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2020-06/02-22952.pdf (hereinafter “Advisory Bulletin”).



The American Gas Association has developed industry guidance on leakage survey methods
which may be employed by operators of subsurface petroleum gas systems that take into account
the nature of transporting petroleum gas subsurface.6 PHMSA has advised owners and operators
of liquified petroleum gas distribution systems to ensure that their procedures emphasize
measurement of gas below the surface of the soil or pavement and are adequate to detect leaks of
heavier-than-air gas.7
Lakes’ leak survey program—which only consisted of surface gas detection surveys to detect
petroleum gas leaks on subsurface pipeline facilities—did not reflect Lakes’ subsurface system
and failed to take into account the nature of operating subsurface petroleum gas pipelines and the
local conditions of the system, per the requirements of § 192.723(b).
3. § 192.805 Qualification program.
Each operator shall have and follow a written qualification program. The program
shall include provisions to:
(a) Identify covered tasks;
Lakes failed to follow its written qualification program to identify covered tasks, per the
requirements of § 192.805(a). On November 25, 2019, PHMSA issued to Lakes a Notice of
Amendment, CPF No. 3-2019-0007M-NOA, which required Lakes’ qualification program to be
modified to include the tasks of “valve inspection” and “pipe fitting” as part of the covered task
list. On March 27, 2020, Lakes sent a response to PHMSA stating the modifications to the
qualification program had been made to include those required tasks. However, from a review of
Lakes’ operator qualification training records, PHMSA found that Lakes never implemented
"Training Exercise NO. 717 Jurisdictional Pipeline: Pipe Fitting Inspection" or "Training
Exercise NO. 718 Jurisdictional Pipeline: Valve Inspection" as outlined in its March 27, 2020
response to CPF 3-2019-0007M. Furthermore, Lakes also failed to update its OQ task list to
include either task as required. Therefore, Lakes failed to follow its written qualification
program to identify covered tasks, as required by § 192.805(a).
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$272,926 per violation per day the violation persists, up to a maximum of $2,729,245 for a
related series of violations. For violation occurring on or after December 28, 2023 and before
December 30, 2024 the maximum penalty may not exceed $266,015 per violation per day the
violation persists, up to a maximum of $2,660,135 for a related series of violations. For violation
occurring on or after January 6, 2023 and before December 28, 2023 the maximum penalty may
not exceed $257,664 per violation per day the violation persists, up to a maximum of $2,576,627
for a related series of violations. For violation occurring on or after March 21, 2022 and before
6 See GPTC Guide at 922.
7 See Advisory Bulletin (explaining that usually “bar holing” and examination of below ground areas, such as
manholes, storm drains, and basements is used as a leakage survey method).



January 6, 2023 the maximum penalty may not exceed $239,142 per violation per day the
violation persists, up to a maximum of $2,391,412 for a related series of violations. For violation
occurring on or after May 3, 2021 and before March 21, 2022 the maximum penalty may not
exceed $225,134 per violation per day the violation persists, up to a maximum of $2,251,334 for
a related series of violations. For violation occurring on or after January 11, 2021 and before
May 3, 2021 the maximum penalty may not exceed $222,504 per violation per day the violation
persists, up to a maximum of $2,225,034 for a related series of violations. For violation
occurring on or after July 31, 2019, and before January 11, 2021 the maximum penalty may not
exceed $218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for
a related series of violations.
We have reviewed the circumstances and supporting documents involved in this case and have
decided not to propose a civil penalty assessment at this time.
Proposed Compliance Order
With respect to Items 1, 2, and 3, pursuant to 49 U.S.C. § 60118, the Pipeline and Hazardous
Materials Safety Administration proposes to issue a Compliance Order to Lakes. Please refer to
the Proposed Compliance Order, which is enclosed and made a part of this Notice.
Response to this Notice
This Notice is issued in accordance with 49 CFR § 190.207(c). Any response you may have
submitted to the original Notice is no longer applicable. You must respond as set forth below.
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Enforcement Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be made publicly available. If
you believe that any portion of your responsive material qualifies for confidential treatment
under 5 U.S.C. § 552(b), along with the complete original document you must provide a second
copy of the document with the portions you believe qualify for confidential treatment redacted
and an explanation of why you believe the redacted information qualifies for confidential
treatment under 5 U.S.C. § 552(b).
Following your receipt of this Notice, you have 30 days to respond as described in the enclosed
Response Options. If you do not respond within 30 days of receipt of this Notice, this constitutes
a waiver of your right to contest the allegations in this Notice and authorizes the Associate
Administrator for Pipeline Safety to find facts as alleged in this Notice without further notice to
you and to issue a Final Order. If you are responding to this Notice, we propose that you submit
your correspondence to my office within 30 days from receipt of this Notice. The Region
Director may extend the period for responding upon a written request timely submitted
demonstrating good cause for an extension.



In your correspondence on this matter, please refer to 3-2025-004-NOPV and, for each
document you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Gregory A. Ochs
Director, Central Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Jason Hellendrung Manager of Physical Operations / Fleet Manager / Pipeline Manager,
jhellendrung@lakesgas.com
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Enforcement Proceedings



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to Lakes a Compliance Order incorporating the
following remedial requirements to ensure the compliance of Lakes with the pipeline safety
regulations:
A. B. C. D. In regard to Item 1 of the Notice, pertaining to Lakes’ failure to assure the proper
concentration of odorant in accordance with § 192.625(f), Lakes must (1) conduct sampling
of combustible gases using an instrument capable of determining the percentage of gas in
air at which the odor becomes readily detectable on the jurisdictional systems within 60
days of receipt of the Final Order, and (2) provide the Central Region Director with records
of the instrumented sampling that include odorator reading detection levels within 90 days
of receipt of the Final Order.
In regard to Item 2 of the Notice, pertaining to Lakes’ failure to have a leakage control
program determined by the nature of the operations, per the requirements of § 192.723(b),
Lakes must develop site-specific procedures for a leakage control program determined by
operating subsurface petroleum gas pipelines and provide the amended procedures to the
Central Region Director for review and approval within 60 days of receipt of the Final
Order. Lakes may turn to PHMSA’s Advisory Bulletin to Owners and Operators of
Liquified Petroleum Gas Distribution Systems8 and the GPTC Guide for Gas Transmission,
Distribution, and Gathering Piping Systems 9 for further information on developing
adequate leak survey programs for subsurface petroleum gas pipelines. Furthermore, Lakes
must conduct leak surveys with the newly amended procedures on the jurisdictional
systems and provide the Central Region Director with the leak survey records for review
and approval within 180 days of receipt of the Final Order.
In regard to Item 3 of the Notice, pertaining to Lakes’ failure to follow their written
qualification program to identify covered tasks, Lakes must implement its procedures,
Training Exercise NO. 717 Jurisdictional Pipeline Pipe Fitting Inspection and Training
Exercise NO. 718 Jurisdictional Pipeline Valve Inspection, within 90 days of receipt of the
Final Order. Furthermore, Lakes must provide the training records and the amended
procedures to the Central Region Director within 90 days of receipt of the Final Order for
the Directors review and approval.
It is requested (not mandated) that Lakes maintain documentation of the safety
improvement costs associated with fulfilling this Compliance Order and submit the total to
Gregory A. Ochs, Director, Central Region, Pipeline and Hazardous Materials Safety
Administration. It is requested that these costs be reported in two categories: (1) total cost
associated with preparation/revision of plans, procedures, studies and analyses, and (2)
total cost associated with replacements, additions and other changes to pipeline
infrastructure.
8 PHMSA Advisory Bulletin, ADB-02-05, 67 Fed. Reg, 57,484, 57,485 (Sept. 10, 2022),
https://www.phmsa.dot.gov/sites/phmsa.dot.gov/files/2020-06/02-22952.pdf
9 The Guide for Gas Transmission, Distribution, and Gathering Piping Systems, American Gas Association, Gas
Piping Technology Committee Z380 (2022).

32025004NOPV_Closure Letter_11042025_(23-264480)_text.pdf

VIA ELECTRONIC MAIL TO: thampton@lakesgasco.com; jhellendrung@lakesgas.com
November 4, 2025
Mr. Trent Hampton
Chief Executive Officer
Lakes Gas Company
26777 Fallbrook Ave,
Wyoming, Minnesota 55092
RE: CPF 3-2025-004-NOPV
Dear Mr. Hampton:
On August 7, 2025, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to Lakes Gas Company a Final Order, pursuant to 49 CFR § 190.213. This Order included a
Compliance Order. Based on our review of the documentation provided, it has been determined
that Lakes Gas Company has complied with the terms of the Order.
Accordingly, this case is now closed, and no further action is contemplated with respect to the
matters involved in this case. Thank you for your cooperation in this matter.
Sincerely,
David Barrett
Acting Director, Central Region, Office of Pipeline Safety
Pipeline and Hazardous Materials Safety Administration
cc: Jason Hellendrung Manager of Physical Operations / Fleet Manager / Pipeline Manager,
jhellendrung@lakesgas.com
- **truncated:** false
- **body characters:** 20930