# ISLAND ENERGY — Warning Letter

- **operation:** document
- **citation:** CPF 520120021W
- **title:** ISLAND ENERGY — Warning Letter
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2012-09-28
- **effective on:** Not available
- **summary:** CLOSED warning letter citing 192.616(b), 192.616(c), 192.616(h).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-520120021w.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520120021w.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520120021w
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520120021W
**body:**

Warning Letter involving ISLAND ENERGY. PHMSA's enforcement data identifies the cited regulations as 192.616(b),  192.616(c),  192.616(h). The case was opened on 2012-09-28 and is reported as closed as of 2012-09-28. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520120021W_Warning Letter_ 09282012_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520120021W/520120021W_Warning%20Letter_%2009282012_text.pdf

520120021W_Warning Letter_09282012.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520120021W/520120021W_Warning%20Letter_09282012.pdf

520120021W_Warning Letter_09282012.pdf

U.S. Department
of Transportation
Pipeline and Hazardous Materials
Safety Administration
12300 W. Dakota Ave., Suite 110
Lakewood, CO 80228
WARNING LETTER
CERTIFIED MAIL- RETURN RECEIPT REQUESTED
September 28,2012
Mr. Peter Guadagni
General Manager
Island Energy
440 Walnut Avenue
Mare Island, CA 94592-0001
CPF 5-2012-0021 W
Dear Mr. Guadagni:
On March 7, 2012, representatives ofthe Pipeline and Hazardous Materials Safety Administration
(PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Public Awareness Program
in Mare Island, California.
As a result of the inspection, it appears that you have committed probable violations of the Pipeline
Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable
violations are:
1. §192.616 Public Awareness
(h) Operators in existence on June 20, 2005, must have completed their written programs
no later than June 20, 2006.
Island Energy did not develop a written public awareness plan until October 2011. During our
inspection, Island Energy could not produce any documentation that a written public awareness plan
existed before October 2011.



2. §192.616 Public Awareness
(b) The operator's program must follow the general program recommendations of API RP
1162 and assess the unique attributes and characteristics of the operator's pipeline and
facilities.
Island Energy did not clearly describe the 1 0" diameter pipeline that supplies the natural gas to the Island
Energy distribution system. The pipeline was not clearly defined as a specific asset covered in the Public
Awareness program, nor were the unique attributes of that pipeline assessed.
3. §192.616 Public Awareness
(c) The operator must follow the general program recommendations, including baseline and
supplemental requirements of API RP 1162, unless the operator provides justification in
its program or procedural manual as to why compliance with all or certain provisions of
the recommended practice is not practicable and not necessary for safety.
The Island Energy Public Awareness Plan does not include a written evaluation process that specifies
how Island Energy will periodically evaluate program implementation and effectiveness. Furthermore,
Island Energy could not produce any documentation showing a written evaluation had been conducted.
Under 49 United States Code,§ 60122, you are subject 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. We have reviewed the circumstances and supporting 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 items identified in this letter. Failure to do so will result in Island
Energy 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-
2012-0021 W. 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).
Sincere~~ "
~t?'dJ
a
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 R. Reineke (#137906)
2

520120021W_Warning Letter_ 09282012_text.pdf

WARNING LETTER
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
September 28, 2012
Mr. Peter Guadagni
General Manager
Island Energy
440 Walnut Avenue
Mare Island, CA 94592-0001
CPF 5-2012-0021W
Dear Mr. Guadagni:
On March 7, 2012, representatives of the Pipeline and Hazardous Materials Safety Administration
(PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your Public Awareness Program
in Mare Island, California.
As a result of the inspection, it appears that you have committed probable violations of the Pipeline
Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and the probable
violations are:
1. §192.616 Public Awareness
(h) Operators in existence on June 20, 2005, must have completed their written programs
no later than June 20, 2006.
Island Energy did not develop a written public awareness plan until October 2011. During our
inspection, Island Energy could not produce any documentation that a written public awareness plan
existed before October 2011.



2. §192.616 Public Awareness
(b) The operator’s program must follow the general program recommendations of API RP
1162 and assess the unique attributes and characteristics of the operator’s pipeline and
facilities.
Island Energy did not clearly describe the 10” diameter pipeline that supplies the natural gas to the Island
Energy distribution system. The pipeline was not clearly defined as a specific asset covered in the Public
Awareness program, nor was the unique attributes of that pipeline assessed.
3. §192.616 Public Awareness
(c) The operator must follow the general program recommendations, including baseline and
supplemental requirements of API RP 1162, unless the operator provides justification in
its program or procedural manual as to why compliance with all or certain provisions of
the recommended practice is not practicable and not necessary for safety.
The Island Energy Public Awareness Plan does not include a written evaluation process that specifies
how Island Energy will periodically evaluate program implementation and effectiveness. Furthermore,
Island Energy could not produce any documentation showing a written evaluation had been conducted.
Under 49 United States Code, § 60122, you are subject 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. We have reviewed the circumstances and supporting 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 items identified in this letter. Failure to do so will result in Island
Energy 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-
2012-0021W. 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
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 R. Reineke (#137906)
2
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