WBI ENERGY TRANSMISSION, INC. — Notice of Probable Violation

case documentOfficial PDF520131015_NOPV PCO_12122013.pdf#

case documentOfficial PDF520131015_NOPV PCO_12122013_text.pdf#

party submissionOfficial PDF520131015_Operator_Response_to_Notice_02142014.pdf#

520131015_Final Order_06022014_text.pdf, page 1Official PDFJUNE 2, 2014 Mr. Steven L. Bietz Chief Executive Officer and President WBI Energy Transmission, Inc. 1250 W. Century Avenue Bismark, ND 58503 Re: CPF No. 5-2013-1015 Dear Mr. Bietz: Enclosed please find the Final Order issued in the above-referenced case. It makes a finding of violation and specifies actions that need to be taken by WBI Energy Transmission, Inc. to comply with the pipeline safety regulations. When the terms of the compliance order have been completed, as determined by the Director, Western Region, this enforcement action will be closed. Service of the Final Order by certified mail is deemed effective upon the date of mailing, or as otherwise provided under 49 C.F.R. § 190.5. Thank you for your cooperation in this matter. Sincerely, Jeffrey D. Wiese Associate Administrator for Pipeline Safety Enclosure cc: Mr. Chris Hoidal, Director, Western Region, OPS Mr. Scott Fradenburgh, Vice President of Operations, WBI Energy Transmission, Inc. CERTIFIED MAIL - RETURN RECEIPT REQUESTED#

520131015_Final Order_06022014_text.pdf, page 2U.S. DEPARTMENT OF TRANSPORTATION PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION OFFICE OF PIPELINE SAFETY WASHINGTON, D.C. 20590 ____________________________________ ) In the Matter of ) ) WBI Energy Transmission, Inc., ) CPF No. 5-2013-1015 ) Respondent. ) ____________________________________) FINAL ORDER On May 21-25 and June 25-29, 2012, pursuant to 49 U.S.C. § 60117, representatives of the Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), conducted an on-site pipeline safety inspection of the operating and maintenance procedures and records of WBI Energy Transmission, Inc. (WBI or Respondent) in Glendive, Montana. WBI, a subsidiary of MDU Resources Group, Inc., operates approximately 1,800 miles of natural gas pipelines in Montana, Wyoming, and the Dakotas.1 As a result of the inspection, the Director, Western Region, OPS (Director), issued to Respondent, by letter dated December 12, 2013, a Notice of Probable Violation and Proposed Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed finding that WBI had violated 49 C.F.R. § 192.935(a) and proposed ordering Respondent to take certain measures to correct the alleged violation. After requesting and receiving an extension of time, WBI responded to the Notice by letter dated February 14, 2014 (Response). The company did not contest the allegation of violation and expressed its intent to complete the actions set forth in the proposed compliance order. Respondent did not request a hearing and therefore has waived its right to one. FINDING OF VIOLATION In its Response, WBI did not contest the allegation in the Notice that it violated 49 C.F.R. Part 192, as follows: 1 See Pipeline Safety Violation Report (Violation Report), (September 17, 2013) (on file with PHMSA), at 1.#

520131015_Final Order_06022014_text.pdf, page 32 Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.935(a), which states: § 192.935 What additional preventive and mitigative measures must an operator take? (a) General requirements. An operator must take additional measures beyond those already required by Part 192 to prevent a pipeline failure and to mitigate the consequences of a pipeline failure in a high consequence area. An operator must base the additional measures on the threats the operator has identified to each pipeline segment. (See §192.917) An operator must conduct, in accordance with one of the risk assessment approaches in ASME/ANSI B31.8S (incorporated by reference, see §192.7), section 5, a risk analysis of its pipeline to identify additional measures to protect the high consequence area and enhance public safety. Such additional measures include, but are not limited to, installing Automatic Shut-off Valves or Remote Control Valves, installing computerized monitoring and leak detection systems, replacing pipe segments with pipe of heavier wall thickness, providing additional training to personnel on response procedures, conducting drills with local emergency responders and implementing additional inspection and maintenance programs. The Notice alleged that Respondent violated 49 C.F.R. § 192.935(a) by failing to fully analyze risks on its pipelines that traverse high consequence areas (HCAs) and identify additional preventative and mitigative measures to enhance safety. Specifically, the Notice alleged that WBI’s risk analysis relating to the need for automatic or remote control valves was based on a report that did not consider factors beyond immediate injury such as prolonged flame exposure to emergency responders, danger to people in hard to evacuate areas, impacts on key transportation corridors, and the risk of wildfires. Respondent did not contest this allegation of violation. Accordingly, based upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 192.935(a) by failing to fully analyze risks on its pipelines that traverse HCAs and identify additional preventative and mitigative measures to enhance safety. This finding of violation will be considered a prior offense in any subsequent enforcement action taken against Respondent. COMPLIANCE ORDER The Notice proposed a compliance order with respect to Item 1 in the Notice for Respondent’s violation of 49 C.F.R. § 192.935(a). Under 49 U.S.C. § 60118(a), each person who engages in the transportation of gas or who owns or operates a pipeline facility is required to comply with the applicable safety standards established under chapter 601. Pursuant to the authority of 49 U.S.C. § 60118(b) and 49 C.F.R. § 190.217, Respondent is ordered to take the following#

520131015_Final Order_06022014_text.pdf, page 43 actions to ensure compliance with the pipeline safety regulations applicable to its operations: 1. With respect to the violation of § 192.935(a) (Item 1), Respondent must conduct a risk analysis and evaluation of its HCA pipelines to determine if automatic shut-off valves or remote control valves would be an efficient means of adding protection to a HCA in the event of a rupture or other failure and minimizing the consequences of a gas release. 2. Respondent must complete the actions in Item 1 above within 180 calendar days of receipt of this Order. 3. It is requested (not mandated) that WBI maintain documentation of the safety improvement costs associated with fulfilling this compliance order and submit the total to the Director. It is requested that these costs be reported in two categories: (1) total cost associated with preparation or revision of plans, procedures, studies, and analyses; and (2) total cost associated with repairs, replacements, additions, and other changes to physical pipeline facilities. The Director may grant an extension of time to comply with any of the required items upon a written request timely submitted by the Respondent and demonstrating good cause for an extension. Failure to comply with this Order may result in administrative assessment of civil penalties not to exceed $200,000 for each violation for each day the violation continues or in referral to the Attorney General for appropriate relief in a district court of the United States. The terms and conditions of this Final Order are effective upon service in accordance with 49 C.F.R. § 190.5. ___________________________________ __________________________ Jeffrey D. Wiese Date Issued Associate Administrator for Pipeline Safety#

520131015_closure letter_02112015_text.pdf, page 1Official PDFCERTIFIED MAIL - RETURN RECEIPT REQUESTED February 11, 2015 Mr. Scott Fradenburgh Vice President of Operations WBI Energy Transmission, Inc. 1250 W. Century Avenue Bismarck, North Dakota 58503 Re: CPF 5-2013-1015 Closure Letter Dear Mr. Fradenburgh: On June 2, 2014, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued to WBI Energy Transmission a Final Order in the above-referenced case. This Order included a Compliance Order. Based on our review of the documentation you provided, it has been determined that you have complied with the terms of this Order. Accordingly, this case is now closed and no further action is contemplated with respect to the matters involved in this case. Thank you for your cooperation in this matter. Sincerely, Chris Hoidal Director, Western Region Pipeline and Hazardous Materials Safety Administration cc: PHP-60 Compliance Registry PHP-500 R. Reineke (#137567)#