{"operation":"document","citation":"CPF 520170005W","title":"HAWAII GAS — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2017-03-27","effective_on":null,"summary":"CLOSED warning letter citing 191.23(a)(1), 191.23(a)(4), 192.805(h), 192.919(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520170005w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520170005w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520170005w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520170005W","body":"Warning Letter involving HAWAII GAS. PHMSA's enforcement data identifies the cited regulations as 191.23(a)(1),  191.23(a)(4),  192.805(h),  192.919(b). The case was opened on 2017-03-27 and is reported as closed as of 2017-03-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520170005W_Warning Letter_03272017.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520170005W/520170005W_Warning%20Letter_03272017.pdf\n\n520170005W_Warning Letter_03272017_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520170005W/520170005W_Warning%20Letter_03272017_text.pdf\n\n520170005W_Warning Letter_03272017_text.pdf\n\nWARNING LETTER\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nMarch 27, 2017\nMs. Alicia Moy\nPresident & CEO\nHawaii Gas\n745 Fort Street, Suite 1800\nHonolulu, Hawaii 96813\nCPF 5-2017-0005W\nDear Ms. Moy:\nOn November 28 - December 2, 2016, a representative of the Pipeline and Hazardous\nMaterials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United States\nCode, inspected your synthetic natural gas (SNG) transmission pipeline system in the greater\nHonolulu area on the island of Oahu, Hawaii.\nAs a result of the inspection, it is alleged 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:\n\n\n\n1. §192.919 An operator must include each of the following elements in its written\nbaseline assessment plan:\n...\n(b) The methods selected to assess the integrity of the line pipe, including an\nexplanation of why the assessment method was selected to address the identified\nthreats to each covered segment. The integrity assessment method an operator\nuses must be based on the threats identified to the covered segment. (See\n§192.917.) More than one method may be required to address all the threats to\nthe covered pipeline segment;\nHawaii Gas did not follow its own written baseline assessment plan when it used pressure\ntesting as an assessment method instead of guided wave, which was determined by Hawaii\nGas’ baseline assessment plan to be the integrity assessment method based on the threats\nidentified to the covered segment at issue. Records provided by Hawaii Gas demonstrated that\nguided wave was the assessment method resulting from the baseline assessment completed on\nMarch 18, 2005 for the pipeline segment labeled 6-in Pier 38. However, Hawaii Gas\nconfirmed that pressure tests were used as the actual assessment method for the pipeline\nsegment labeled 6-in Pier 38 without the operator performing a baseline assessment resulting\nin pressure test as the assessment method.\nHawaii Gas provided no subsequent baseline assessment record for the pipeline segment\nlabeled 6-in Pier 38 that resulted in a pressure test as the chosen assessment method. Hawaii\nGas must either follow the conclusions of its baseline assessment plan under §192.919(b) or\nre-establish a new baseline assessment plan in accordance with §192.919. Hawaii Gas must\nmeet the requirements of §192.921(a)(4) “Other technology” before using guided wave as a\nbaseline assessment method.\n2. §192.805 Qualification program.\nEach operator shall have and follow a written qualification program. The\nprogram shall include provisions to:\n....\n(h) After December 16, 2004, provide training, as appropriate, to ensure that\nindividuals performing covered tasks have the necessary knowledge and skills to\nperform the tasks in a manner that ensures the safe operation of pipeline\nfacilities; and\nHawaii Gas did not provide records to demonstrate that they complied with its own operator\nqualification program in ensuring that individuals performing covered tasks were trained to\nhave the necessary knowledge and skills to perform the tasks in a manner that ensures the safe\noperation of pipeline facilities. Hawaii Gas provided qualification records on an armored\nsleeve repair. Mr. Jerry Giardano, a contractor for Hawaii Gas, performed a covered task on\nthe repair. Hawaii Gas provided operator qualification records which indicated covered task\nqualification for Mr. Giardano by contractors IMC and Latigo, but no records were provided\nby Hawaii Gas for Abnormal Operating Conditions training for Mr. Giardano.\n\n\n\nDuring the inspection, Hawaii Gas stated that contractors are generally not trained on\nAbnormal Operating Conditions in addition to covered tasks. This practice is inconsistent\nwith the definition of “qualified” in Hawaii Gas’ Operator Qualification Program procedure\nD-291 and in violation of PHMSA’s regulations. Hawaii Gas must follow its own procedures\nin accordance with §192.805(h), and train all workers performing covered tasks on Abnormal\nOperating Conditions.\n3. §191.23 Reporting safety-related conditions.\n(a) Except as provided in paragraph (b) of this section, each operator shall report\nin accordance with §191.25 the existence of any of the following safety-related\nconditions involving facilities in service:\n(1) In the case of a pipeline (other than an LNG facility) that operates at a hoop\nstress of 20 percent or more of its specified minimum yield strength, general\ncorrosion that has reduced the wall thickness to less than that required for the\nmaximum allowable operating pressure, and localized corrosion pitting to a\ndegree where leakage might result.\n...\n(4) Any material defect or physical damage that impairs the serviceability of a\npipeline that operates at a hoop stress of 20 percent or more of its specified\nminimum yield strength...\nHawaii Gas did not report a safety-related condition according to §191.23. After following up\non an ILI run with an anomaly dig on June 2, 2014, Hawaii Gas discovered a piece of\nprotruding rebar denting the pipeline in an area already afflicted by preexisting corrosion.\nThe operator recorded this damage as an immediate repair condition (dent with metal loss)\nand repaired the damage with a full encirclement Type B sleeve on June 27, 2016. Upon later\nreflection and after the deadline had passed to report the condition to PHMSA, Hawaii Gas\nrecognized that this incident should have been reported as a safety-related condition, but it\nstill was not reported. However, Hawaii Gas did go through the exercise of filling out\nPHMSA form D-220-1 after the deadline. Hawaii Gas has successfully reported safety related\nconditions since this incident. Hawaii Gas must report safety-related conditions in accordance\nwith §191.23.\nUnder 49 United States Code, § 60122, you are subject to a civil penalty not to exceed\n$205,638 per violation per day the violation persists up to a maximum of $2,056,380 for a\nrelated series of violations. For violation occurring between January 4, 2012 to August 1,\n2016, the maximum penalty may not exceed $200,000 per violation per day, with a maximum\npenalty not to exceed $2,000,000 for a related series of violations. For violations occurring\nprior to January 4, 2012, the maximum penalty may not exceed $100,000 per violation per\nday, with a maximum penalty not to exceed $1,000,000 for a related series of violations. We\nhave reviewed the circumstances and supporting documents involved in this case, and have\ndecided not to conduct additional enforcement action or penalty assessment proceedings at\n\n\n\nthis time. We advise you to correct the items identified in this letter. Failure to do so will\nresult in Hawaii Gas being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer\nto CPF 5-2017-0005W. Be advised that all material you submit in response to this\nenforcement 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. 552(b),\nalong with the complete original document you must provide a second copy of the document\nwith the portions you believe qualify for confidential treatment redacted and an explanation of\nwhy you believe the redacted information qualifies for confidential treatment under 5 U.S.C.\n552(b).\nSincerely,\nChris Hoidal\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Owens (#154496, #154497)","truncated":false,"body_characters":8276}