{"operation":"document","citation":"CPF 42024050WL","title":"FLORIDA CITY GAS — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2024-10-22","effective_on":null,"summary":"CLOSED warning letter citing 193.2441(b), 193.2441(c).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-42024050wl.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-42024050wl.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-42024050wl","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/42024050WL","body":"Warning Letter involving FLORIDA CITY GAS. PHMSA's enforcement data identifies the cited regulations as 193.2441(b),  193.2441(c). The case was opened on 2024-10-22 and is reported as closed as of 2024-10-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n42024050WL_Warning Letter_10222024_(22-240264).pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024050WL/42024050WL_Warning%20Letter_10222024_(22-240264).pdf\n\n42024050WL_Warning Letter_10222024_(22-240264)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/42024050WL/42024050WL_Warning%20Letter_10222024_(22-240264)_text.pdf\n\n42024050WL_Warning Letter_10222024_(22-240264)_text.pdf\n\nWARNING LETTER\nVIA ELECTRONIC MAIL TO: jssylvester@chpk.com\nOctober 22, 2024\nJeff Sylvester\nChief Operating Officer\nChesapeake Utilities Corp.\n500 Energy Ln\nDover, DE 19901\nCPF 4-2024-050-WL\nDear Mr. Sylvester:\nFrom August 22, 2022, through November 8, 2023, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code\n(U.S.C.), conducted a design review and on-site inspection of Florida City Gas’s (FCG) Miami\nDade liquefied natural gas (LNG) facility in Homestead, Florida.\nAs a result of the inspection, it is alleged that you have committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. § 193.2441 Control center.\nEach LNG plant must have a control center from which operations\nand warning devices are monitored as required by this part. A control\ncenter must have the following capabilities and characteristics:\n(a) . . . .\n(b) Each remotely actuated control system and each automatic\nshutdown control system required by this part must be operable from\nthe control center.\n(c) Each control center must have personnel in continuous\nattendance while any of the components under its control are in\noperation, unless the control is being performed from another control\ncenter which has personnel in continuous attendance.\nFCG failed to have personnel in continuous attendance in its control center or secondary control\ncenter while components under its control were in operation, in accordance with § 193.2441(c).\nSpecifically, FCG failed to maintain continuous attendance in its Miami Dade LNG control center\n\n\n\nbetween the first introduction of LNG into the facility on January 18, 2023, and the full integration\nof the LNG facility into the continuously attended control center located in Dover, Delaware,\nwhich occurred in summer 2024.\nPrior to the full integration of the LNG facility with the Dover control center, FCG did not maintain\ncontinuous attendance in the local control center and relied on the continuous attendance of a\ncontrol center in Houston which had monitoring and automatic shutdown capability. However,\n§ 193.2441(b) requires that a control center must be able to operate \"[e]ach remotely actuated\ncontrol system[.J\" The Houston control center did not have this capability, meaning that FCG did\nnot maintain continuous attendance at a secondary control center with the necessary capabilities.\nTherefore, FCG failed to have personnel in continuous attendance in its control center or secondary\ncontrol center while components under its control were in operation, in accordance with §\n193.2441(c).\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 related\nseries of violations. For violation occurring on or after January 6, 2023 and before December 28,\n2023, the maximum penalty may not exceed $257,664 per violation per day the violation persists,\nup to a maximum of $2,576,627 for a related series of violations. For violation occurring on or\nafter March 21, 2022 and before January 6, 2023, the maximum penalty may not exceed $239,142\nper violation per day the violation persists, up to a maximum of $2,391,142 for a related series of\nviolations. For violation occurring on or after May 3, 2021 and before March 21, 2022, the\nmaximum penalty may not exceed $225,134 per violation per day the violation persists, up to a\nmaximum of $2,251,334 for a related series of violations. For violation occurring on or after\nJanuary 11, 2021 and before May 3, 2021, the maximum penalty may not exceed $222,504 per\nviolation per day the violation persists, up to a maximum of $2,225,034 for a related series of\nviolations. For violation occurring on or after July 31, 2019 and before January 11, 2021, the\nmaximum penalty may not exceed $218,647 per violation per day the violation persists, up to a\nmaximum of $2,186,465 for a related series of violations. For violation occurring on or after\nNovember 27, 2018 and before July 31, 2019, the maximum penalty may not exceed $213,268 per\nviolation per day, with a maximum penalty not to exceed $2,132,679.\nAlso, for each violation involving LNG facilities, an additional penalty of not more than $97,179\noccurring on or after December 28, 2023, may be imposed. For each violation involving LNG\nfacilities, an additional penalty of not more than $94,128 occurring on or after January 6, 2023,\nand before December 28, 2023, may be imposed. For each violation involving LNG facilities, an\nadditional penalty of not more than $87,362 occurring on or after March 21, 2022, and before\nJanuary 6, 2023, may be imposed. For each violation involving LNG facilities, an additional\npenalty of not more than $82,245 occurring on or after May 3, 2021, and before March 21, 2022\nmay be imposed. For each violation involving LNG facilities, an additional penalty of not more\nthan $81,284 occurring on or after January 11, 2021, and before May 3, 2021, may be imposed.\nFor each violation involving LNG facilities, an additional penalty of not more than $79,875\noccurring on or after July 31, 2019, and before January 11, 2021 may be imposed. For each\n\n\n\nviolation involving LNG facilities, an additional penalty of not more than $77,910 occurring on or\nafter November 27, 2018, and before July 31,2019, may be imposed.\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 item identified in this letter. Failure to do so may result in\nFlorida City Gas 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 4-2024-050-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 the\nredacted information qualifies for confidential treatment under 5 U.S.C. § 552(b).\nSincerely,\nBryan Lethcoe\nDirector, Southwest Region, Office of Pipeline Safety\nPipeline and Hazardous Materials Safety Administration\ncc: Jim Kendall, Regional Manager, jkendall@chpk.com","truncated":false,"body_characters":7402}