{"operation":"document","citation":"CPF 520160010M","title":"HAWAII GAS — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2016-07-28","effective_on":null,"summary":"CLOSED notice of amendment citing 192.1007(b), 192.1007(d), 192.1007(e)(1).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160010m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160010m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520160010m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520160010M","body":"Notice of Amendment involving HAWAII GAS. PHMSA's enforcement data identifies the cited regulations as 192.1007(b),  192.1007(d),  192.1007(e)(1). The case was opened on 2016-07-28 and is reported as closed as of 2016-09-16. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520160010M_Closure Letter_09162016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160010M/520160010M_Closure%20Letter_09162016.pdf\n\n520160010M_Closure Letter_09162016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160010M/520160010M_Closure%20Letter_09162016_text.pdf\n\n520160010M_Notice of Amendment_07282016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160010M/520160010M_Notice%20of%20Amendment_07282016.pdf\n\n520160010M_Notice of Amendment_07282016_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160010M/520160010M_Notice%20of%20Amendment_07282016_text.pdf\n\n520160010M_Operator Response to Notice_08262016.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520160010M/520160010M_Operator%20Response%20to%20Notice_08262016.pdf\n\n520160010M_Notice of Amendment_07282016_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nJuly 28, 2016\nMs. Alicia Moy\nPresident & CEO\nHawaii Gas\n745 Fort Street Mall, Ste. 1800\nHonolulu, Hawaii 96813\nCPF 5-2016-0010M\nDear Ms. Moy:\nOn October 20-24 and October 27-30, 2014, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States\nCode, inspected Hawaii Gas’ procedures and records for their Distribution Integrity\nManagement Program (DIMP) in Honolulu, Hawaii.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nHawaii Gas’ plans or procedures, as described below:\n1. §192.1007 What are the required elements of an integrity management plan?\nA written integrity management plan must contain procedures for developing and\nimplementing the following elements:\n… (e) Measure performance, monitor results, and evaluate effectiveness.\n(1) Develop and monitor performance measures from an established baseline to\nevaluate the effectiveness of its IM program. An operator must consider the results\nof its performance monitoring in periodically re-evaluating the threats and risks.\nThese performance measures must include the following:\n(i) Number of hazardous leaks either eliminated or repaired as required by §\n192.703(c) of this subchapter (or total number of leaks if all leaks are repaired when\nfound), categorized by cause;\n(ii) Number of excavation damages;\n(iii) Number of excavation tickets (receipt of information by the underground\n\n\n\n2. facility operator from the notification center);\n(iv) Total number of leaks either eliminated or repaired, categorized by cause;\n(v) Number of hazardous leaks either eliminated or repaired as required by §\n192.703(c) (or total number of leaks if all leaks are repaired when found),\ncategorized by material; and\n(vi) Any additional measures the operator determines are needed to evaluate the\neffectiveness of the operator's IM program in controlling each identified threat.\nHawaii Gas’ written Distribution Integrity Management Plan (DIMP) did not contain\nprocedures to properly measure performance, monitor results, and evaluate the\neffectiveness of its integrity management program from an established baseline. DIMP\nprocedures must consider the results of an operator’s performance monitoring in\nperiodically re-evaluating the threats and risks.\nHawaii Gas’ written DIMP Section 6.1 stated, “After the conclusion of each calendar\nyear, the IMP [integrity management program] Engineer will collect the necessary data to\nevaluate the performance of all system-wide and threat specific performance measures\nagainst performance measure goals.” However, the procedures lacked sufficient detail on\nhow the IMP Engineer was to collect the data. For example, the procedures did not\ninclude a list of data sources or other program documentation to be used in the data\ncollection process.\nAdditionally, Hawaii Gas’ written DIMP procedures did not provide for the collection of\ndata for each of the required performance measures. Section 6.1 also stated, “During the\nfirst quarter of each year the IMP Engineer will review current performance measures to\ndetermine if they are providing objective evidence (e.g., performance trends) for\nevaluating the Oahu Program’s effectiveness and each DIMP element’s effectiveness. The\nIMP Engineer tracks the selected system-wide and threat specific performance measures\nfrom an established baseline shown in Figure 6.1 - Oahu DIMP Performance Measures.”\nHowever, the procedures lacked sufficient detail on how the IMP Engineer was to\nmeasure the effectiveness. For example, the procedures did not include steps on how data\ncould be counted, graphed, and validated.\n§192.1007 What are the required elements of an integrity management plan?\nA written integrity management plan must contain procedures for developing and\nimplementing the following elements:\n… (d) Identify and implement measures to address risks. Determine and implement\nmeasures designed to reduce the risks from failure of its gas distribution pipeline.\nThese measures must include an effective leak management program (unless all\nleaks are repaired when found).\nHawaii Gas’ written DIMP did not include procedures to properly identify and implement\nmeasures designed to reduce the risks from failure of its gas distribution pipeline, which\nmust include an effective leak management program (unless all leaks are repaired when\nfound).\nWhile Hawaii Gas re-evaluated leaks on its distribution system on an on-going basis to\nassess the priority of leak repairs, this practice was not found in its written DIMP. Hawaii\nGas must self-assess to determine if additional actions are necessary to keep people and\n2\n\n\n\n3. property safe and must amend its procedures to include the self-assess element of an\neffective leak management program.\n§192.1007 What are the required elements of an integrity management plan?\nA written integrity management plan must contain procedures for developing and\nimplementing the following elements:\n… (b) Identify threats. The operator must consider the following categories of threats\nto each gas distribution pipeline: corrosion, natural forces, excavation damage, other\noutside force damage, material or welds, equipment failure, incorrect operations,\nand other concerns that could threaten the integrity of its pipeline. An operator must\nconsider reasonably available information to identify existing and potential threats.\nSources of data may include, but are not limited to, incident and leak history,\ncorrosion control records, continuing surveillance records, patrolling records,\nmaintenance history, and excavation damage experience.\nHawaii Gas’ written DIMP did not include all of the required threat categories and it did\nnot consider reasonably available information to identify existing and potential threats.\nHawaii Gas’ written DIMP Section 3.3.8 “Other Threat” stated, “There are no other\nunique threat types present on all of the Oahu SNG and LPG distribution systems, so the\nOther Threat category is not used in PFIM risk model.” This statement was not consistent\nwith Hawaii Gas’ historical leak records or with its Pipeline and Facilities Integrity\nManager (PFIM) risk model.\nDuring a review of Hawaii Gas’ 2013 Annual Report for its gas distribution system, the\nPHMSA inspector noted numerous leaks reported under the “other” category. Moreover,\nthe PHMSA inspector found that Hawaii Gas was involved with, or considered data from,\norganizations such as the Western Energy Institute (WEI), National Association of\nCorrosion Engineers (NACE), and City and County of Honolulu, among others; yet, the\nwritten DIMP did not include the consideration of external sources or specify each source\nthat may be consulted within the plan.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.237. Enclosed\nas part of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings. Please refer to this document and note the response options. Be\nadvised that all material you submit in response to this enforcement action is subject to being\nmade publicly available. If you believe that any portion of your responsive material qualifies\nfor confidential treatment under 5 U.S.C. 552(b), along with the complete original document\nyou must provide a second copy of the document with the portions you believe qualify for\nconfidential treatment redacted and an explanation of why you believe the redacted\ninformation qualifies for confidential treatment under 5 U.S.C. 552(b). If you do not respond\nwithin 30 days of receipt of this Notice, this constitutes a waiver of your right to contest the\nallegations in this Notice and authorizes the Associate Administrator for Pipeline Safety to\nfind facts as alleged in this Notice without further notice to you and to issue a Final Order.\n3\n\n\n\nIf, after opportunity for a hearing, your plans or procedures are found inadequate as alleged in\nthis Notice, you may be ordered to amend your plans or procedures to correct the\ninadequacies (49 C.F.R. § 190.237). If you are not contesting this Notice, we propose that\nyou submit your amended procedures to my office within [number of days] days of receipt of\nthis Notice. This period may be extended by written request for good cause. Once the\ninadequacies identified herein have been addressed in your amended procedures, this\nenforcement action will be closed.\nIt is requested (not mandated) that Hawaii Gas maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision\nof plans, procedures) and submit the total to Chris Hoidal, Director, Western Region, Pipeline\nand Hazardous Materials Safety Administration. In correspondence concerning this matter,\nplease refer to CPF 5-2016-0010M and, for each document you submit, please provide a copy\nin electronic format whenever possible.\nSincerely,\nChris Hoidal,\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 C. Ishikawa (#147744)\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\n4\n\n520160010M_Closure Letter_09162016_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nSeptember 16, 2016\nMs. Alicia Moy\nPresident & CEO\nHawaii Gas\n745 Fort Street Mall, Ste. 1800\nHonolulu, Hawaii 96813\nCPF 5-2016-0010M\nClosure Letter\nDear Ms. Moy:\nOn October 20-24 and October 27-30, 2014, a representative from the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to chapter 601 of 49 United States Code,\nconducted an on-site pipeline safety inspection of Hawaii Gas’ Distribution Integrity Management\nProgram (DIMP) procedures in Honolulu, Hawaii. As a result of the inspection, Hawaii Gas was\nissued a Notice of Amendment on July 28, 2016, which proposed amendment of your procedures.\nHawaii Gas submitted its amended procedures on August 26, 2016. My staff reviewed the\namended procedures, and it appears that the inadequacies outlined in this Notice of Amendment\nhave been corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you\nfor your cooperation.\nSincerely,\nChris Hoidal,\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 C. Ishikawa (#147744)","truncated":false,"body_characters":11611}