# FAIRBANKS NATURAL GAS — Notice of Amendment

- **operation:** document
- **citation:** CPF 520153001M
- **title:** FAIRBANKS NATURAL GAS — Notice of Amendment
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2015-12-23
- **effective on:** Not available
- **summary:** CLOSED notice of amendment citing 191.3(1)(iii), 193.2605(c).
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-520153001m.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520153001m.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520153001m
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520153001M
**body:**

Notice of Amendment involving FAIRBANKS NATURAL GAS. PHMSA's enforcement data identifies the cited regulations as 191.3(1)(iii),  193.2605(c). The case was opened on 2015-12-23 and is reported as closed as of 2016-02-10. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520153001M_Closure Letter_02102016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520153001M/520153001M_Closure%20Letter_02102016.pdf

520153001M_Closure Letter_02102016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520153001M/520153001M_Closure%20Letter_02102016_text.pdf

520153001M_Notice of Amendment_12232015.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520153001M/520153001M_Notice%20of%20Amendment_12232015.pdf

520153001M_Notice of Amendment_12232015_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520153001M/520153001M_Notice%20of%20Amendment_12232015_text.pdf

520153001M_Operator Response to Notice_01252016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520153001M/520153001M_Operator%20Response%20to%20Notice_01252016.pdf

520153001M_Closure Letter_02102016_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
February 10, 2016
Mr. Dan Britton
President and CEO
Fairbanks Natural Gas
3408 International Way
Fairbanks, Alaska 99701
CPF 5-2015-3001M
Dear Mr. Britton:
Between June 8, 2015 and September 11, 2015, 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 Fairbanks Natural Gas
procedures in Fairbanks, Alaska. As a result of the inspection, Fairbanks Natural Gas was
issued a Notice of Amendment on December 23, 2015, which proposed amendment of your
procedures.
Fairbanks Natural Gas submitted its amended procedures by letter dated January 25, 2016.
PHMSA 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.
Sincerely,
For Chris Hoidal
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 D. Hassell (#151249)

520153001M_Notice of Amendment_12232015_text.pdf

NOTICE OF AMENDMENT
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
December 23, 2015
Mr. Dan Britton
President and CEO
Fairbanks Natural Gas
3408 International Way
Fairbanks, Alaska 99701
CPF 5-2015-3001M
Dear Mr. Britton:
Between June 8, 2015 and September 11, 2015, a representative of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United
States Code, inspected Fairbanks Natural Gas procedures for Operations and Maintenance
(O&M), Reporting, and Security in Fairbanks, Alaska.
On the basis of the inspection, PHMSA has identified the apparent inadequacies found within
Fairbanks Natural Gas’s plans or procedures, as described below:
1. §191.3 Definitions.
Incident means any of the following events: (1) An event that involves a release of
gas from a pipeline, or of liquefied natural gas, liquefied petroleum gas,
refrigerant gas, or gas from an LNG facility, and that results in one or more of
the following consequences: (iii) Unintentional estimated gas loss of three million
cubic feet or more.
Fairbanks Natural Gas (FNG) did not establish adequate written procedures for defining an
“incident” as required by §191.3. At the time of the inspection, FNG’s procedure for defining
an “incident” did not include the requirement for reporting the gas loss of 3 million cubic feet
or more as an incident. Meanwhile, §193.2011 requires an Operator to report an incident in



accordance with the requirements of Part 191. FNG’s procedure was inadequate because its
Reporting criteria for an “incident” did not clearly describe unintentional estimated gas loss of
three million feet or more as required by §191.3(1)(iii).
2. §193.2605 Maintenance procedures.
(c) Each operator shall include in the manual required by paragraph (b) of this
section instructions enabling personnel who perform operation and maintenance
activities to recognize conditions that potentially may be safety-related conditions
that are subject to the reporting requirements of § 191.23 of this subchapter.
FNG did not establish adequate written procedures for recognizing the safety-related
conditions as required by §193.2605(c). At the time of the inspection, FNG’s procedures were
inadequate because FNG did not have instructions on how to recognize the safety-related
conditions that are subject to the reporting requirements of §191.23.
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 30 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 Fairbanks Natural Gas 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 5-2015-3001M and, for each document you
submit, please provide a copy in electronic format to PHP-WRADMIN@dot.gov whenever
possible.
Sincerely,
For 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. Hassell (#151249)
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