FAIRBANKS NATURAL GAS — Warning Letter

520070009w_warning letter_03192007_text.pdf, page 1Official PDFU. S. De partment of Transportation Pipeline and Hazardous Materials Safety Administration t 2300 W Dakota Ave, Suite 110 Lakewood, CO 80228 WARNING LETTER CERTIFIED MAIL - RETURN RECEIPT RE UESTED March 19, 2007 Mr. Dan Britton, President Fairbanks Natural Gas 3408 International Way Fairbanks, AK 99701 CPF S-2007-0009& Dear Mr. Britton: On November 14-19, 2006, a representative of the Pipeline and Hazardous Materials Safety Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code inspected your Fairbanks LNG Tanks and Vaporizer in Fairbanks, Alaska. As a result of the inspection, it appears that you have committed a probable violation of the Pipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable violation{s) are: $193. 2719 Training, records. a) Each operator shall maintain a system of records which- (2) Provide evidence that personnel have undergone and satisfactorily completed the required training programs. $193. 2717 Training, fire protection. (b) A written plan of continuing instruction, including plant fire drills, must be conducted at intervals of not more than 2 years to keep personnel current on the knowledge and skills they gained in the instruction under paragraph {a) of this section.#

520070009w_warning letter_03192007_text.pdf, page 2At the time of the inspection, the last fire protection training for the employees at the Fairbanks LNG Tanks and Vaporizer was recorded on May 24, 2003. No training records or evidence of training within the last two years could be provided. Under 49 United States Code, ) 60122, you are sub]ect to a civil penalty not to exceed $100, 000 for each violation for each day the violation persists up to a maximum of $1, 000, 000 for any related series of violations. Also, for LNG facilities, an additional penalty of not more than $50, 000 for each violation may be imposed. We have reviewed the circumstances and supportmg documents involved in this case, and have decided not to conduct additional enforcement action or penalty assessment proceedings at this time. We advise you to correct the item(s) identified in this letter. Failure to do so will result in [Company name] being subject to additional enforcement action. No reply to this letter is required. If you choose to reply, in your correspondence please refer to CPF 5-2007-0009W. Be advised that all material you submit in response to this enforcement action is subject to being 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). Sincerely, Chris Hoidal Oirector, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 B. Brown (¹116692)#