MIDWAY SUNSET COGENERATION CO — Notice of Amendment

party submissionOfficial PDF520121001M_Operator Response_03162012.pdf#

520121001M_closure letter_03302012_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED March 30, 2012 Mr. Greg Jans Plant Manager Midway Sunset Cogeneration Company 3466 Crocker Springs Road Fellows, CA 93224-0457 CPF 5-2012-1001M Dear Mr. Jans: On Nov 7-10, 2011, a representative from the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an on- site pipeline safety inspection of Midway Sunset Cogeneration Company’s (MSCC) procedures in Fellows, California. As a result of the inspection, MSCC was issued a Notice of Amendment on February 21, 2012, which proposed amendment of your procedures. MSCC submitted its amended procedures on March 16, 2012. My staff reviewed the amended procedures, and it appears that the inadequacies outlined in this Notice of Amendment have been corrected. This letter is to inform you no further action is necessary and this case is now closed. Thank you for your cooperation. Sincerely, Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 D. Hubbard (#132998)#

520121001M_notice of amendment_02212012_text.pdf, page 1Official PDFNOTICE OF AMENDMENT CERTIFIED MAIL - RETURN RECEIPT REQUESTED February 21, 2012 Mr. Greg Jans Plant Manager Midway Sunset Cogeneration Company 3466 Crocker Springs Road Fellows, CA 93224-0457 CPF 5-2012-1001M Dear Mr. Jans: On Nov 7-10, 2011, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Midway Sunset Cogeneration Company’s (MSCC) procedures for operations, maintenance and emergency response in Fellows, California. On the basis of the inspection, PHMSA has identified the apparent inadequacies found within MSCC’s plans or procedures, as described below: 1. §192.605 Procedural manual for operations, maintenance, and emergencies. (a) General. Each operator shall prepare and follow for each pipeline, a manual of written procedures for conducting operations and maintenance activities and for emergency response. For transmission lines, the manual must also include procedures for handling abnormal operations. This manual must be reviewed and updated by the operator at intervals not exceeding 15 months, but at least once each calendar year. This manual must be prepared before operations of a pipeline system commence. Appropriate parts of the manual must be kept at locations where operations and maintenance activities are conducted…. (c) Abnormal operation. For transmission lines, the manual required by paragraph (a) of this section must include procedures for the following to provide safety when operating design limits have been exceeded. The Midway Sunset Cogeneration Company O&M manual did not contain procedures for dealing with Abnormal Operating Conditions. Currently, MSCC treats Abnormal Operating Conditions as an Emergency Condition. The MSCC O&M manual did not include specific procedures on how Abnormal Operating Conditions should be handled, as required by § 192.605(c).#

520121001M_notice of amendment_02212012_text.pdf, page 22. §192.613 Continuing surveillance. (a) Each operator shall have a procedure for continuing surveillance of its facilities to determine and take appropriate action concerning changes in class location, failures, leakage history, corrosion, substantial changes in cathodic protection requirements, and other unusual operating and maintenance conditions. Pursuant to § 192.613(a), MSCC is required to have procedures to determine and take appropriate action in regards to changes in corrosion conditions. However, the MSCC continuing surveillance program did not include a procedure that covered the actions to be taken if active corrosion is discovered. Response to this Notice This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators in Compliance Proceedings. Please refer to this document and note the response options. 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). 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, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that you submit your amended procedures to my office within thirty days of receipt of this Notice. This period may be extended by written request for good cause. Once the inadequacies identified herein have been addressed in your amended procedures, this enforcement action will be closed. It is requested (not mandated) that MSCC maintain documentation of the safety improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of plans, procedures) and submit the total to Chris Hoidal, Director, Western Region, Pipeline and Hazardous Materials Safety Administration. In correspondence concerning this matter, please refer to CPF 5-2012-1001M and, for each document you submit, please provide a copy in electronic format whenever possible. Sincerely, Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration Enclosure: Response Options for Pipeline Operators in Compliance Proceedings cc: PHP-60 Compliance Registry PHP-500 D. Hubbard (#132998)#