{"operation":"document","citation":"CPF 520130008W","title":"NORTH SLOPE BOROUGH ENERGY MANAGEMENT — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2013-05-23","effective_on":null,"summary":"CLOSED warning letter citing 192.463(a), 192.479.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520130008w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520130008w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520130008w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520130008W","body":"Warning Letter involving NORTH SLOPE BOROUGH ENERGY MANAGEMENT. PHMSA's enforcement data identifies the cited regulations as 192.463(a),  192.479. The case was opened on 2013-05-23 and is reported as closed as of 2013-05-23. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520130008W_warning letter_05232013.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520130008W/520130008W_warning%20letter_05232013.pdf\n\n520130008W_warning letter_05232013_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520130008W/520130008W_warning%20letter_05232013_text.pdf\n\n520130008W_warning letter_05232013_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMay 23, 2013\nMr. Charles Sakeagak\nDirector\nNorth Slope Borough Public Works\nP.O. Box 350\nBarrow, AK 99723\nCPF 5-2013-0008W\nDear Mr. Sakeagak:\nOn April 23-25, 2013, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected your\nprocedures and records for the Nuiqsut natural gas transmission pipeline in Nuiqsut, AK.\nField inspection of the gas pipeline was also conducted.\nAs a result of the inspection, it appears that you have committed probable violations of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations. The items inspected and\nthe probable violations are:\n1. §192.463 External corrosion control: Cathodic protection.\n(a) Each cathodic protection system required by this subpart must provide a\nlevel of cathodic protection that complies with one or more of the applicable\ncriteria contained in Appendix D of this part. If none of these criteria is\napplicable, the cathodic protection system must provide a level of cathodic\nprotection at least equal to that provided by compliance with one or more of\nthese criteria.\nThe North Slope Borough (NSB) failed to provide adequate cathodic protection for the\nNuiqsut natural gas transmission pipeline (NNGP) as required by §192.463 for the years\n2011 and 2012. Cathodic protection levels at Test Stations 2, 4, and 7 on the NNGP did not\nmeet the cathodic protection criteria that are required by Part 192, Appendix D (I (1), I (3),\nII, III). The annual cathodic protection reports prepared by your consultant, Taku\nEngineering, for the years 2011 and 2012 confirm that Test Stations 2, 4, and 7 did not meet\n\n\n\nthe -850 mV instant-off potential, nor the 100 mV depolarization, as required by Appendix\nD. Therefore, the NSB failed to meet the requirements of §192.463.\n2. §192.479 Atmospheric corrosion control; General.\n(a) Each operator must clean and coat each pipeline or portion of pipeline that\nis exposed to the atmosphere, except pipelines under paragraph (c) of this\nsection.\n(b) Coating material must be suitable for the prevention of atmospheric\ncorrosion.\n(c) Except portions of pipelines in offshore splash zones or soil-to-air\ninterfaces, the operator need not protect from atmospheric corrosion any\npipeline for which the operator demonstrates by test, investigation, or experience\nappropriate to the environment of the pipeline that corrosion will-\n(1) Only be a light surface oxide; or\n(2) Not affect the safe operation of the pipeline before the next scheduled\ninspection.\nThe NSB failed to protect sections of the NNGP pipeline from atmospheric corrosion as\nrequired by §192.479 (b). The coating on the NNGP pipeline is damaged, specifically at U-\nbolt and stress point locations, to the extent that moisture has penetrated beneath the coating\nand has corroded the pipeline beyond a light surface oxide. In some sections, the steel surface\nhas corroded away and in some sections deep pitting could be observed.\nIn 2010, the NSB performed a coating damage assessment on the NNGP pipeline. The\nassessment was performed by QA Services, Inc. The data from this report showed\napproximately 150 locations where coating damage had occurred on the NNGP pipeline.\nFurther, moisture had entered these locations and had caused atmospheric corrosion. Many\npipeline locations sustained damage, specifically at U-bolt locations, due to movement of the\npipeline, which was caused by wind vibration and expansion and contraction of the pipeline.\nSince these locations exhibited atmospheric corrosion beyond a light surface oxide, the NSB\nfailed to meet the requirements of §192.479 (b).\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$200,000 per violation per day the violation persists up to a maximum of $2,000,000 for a\nrelated series of violations. For violations occurring prior to January 4, 2012, the maximum\npenalty may not exceed $100,000 per violation per day, with a maximum penalty not to\nexceed $1,000,000 for a related series of violations. We have reviewed the circumstances\nand supporting documents involved in this case, and have decided not to conduct additional\nenforcement action or penalty assessment proceedings at this time. We advise you to correct\nthe item(s) identified in this letter. Failure to do so will result in the North Slope Borough\nbeing subject to additional enforcement action.\n2\n\n\n\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2013-0008W and send all documents to our office at 188 W. Northern Lights\nBlvd., Suite 520, Anchorage, AK 99503. Be advised that all material you submit in response\nto this enforcement action is subject to being made publicly available. If you believe that any\nportion of your responsive material qualifies for confidential treatment under 5 U.S.C.\n552(b), along with the complete original document you must provide a second copy of the\ndocument with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b).\nSincerely,\nDennis Hinnah\nDeputy Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 Jon Strawn (#143384)\n3","truncated":false,"body_characters":6086}