{"operation":"document","citation":"CPF 520183003M","title":"FAIRBANKS NATURAL GAS — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2018-12-27","effective_on":null,"summary":"CLOSED notice of amendment citing 193.2509(b)(4), 193.2513(b)(5), 193.2513(c)(3)(i), 193.2603(a), 193.2603(b), 193.2617, 193.2619(c)(2), 193.2631, 193.2713(b), 193.2801, 193.2911.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520183003m.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520183003m.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520183003m","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520183003M","body":"Notice of Amendment involving FAIRBANKS NATURAL GAS. PHMSA's enforcement data identifies the cited regulations as 193.2509(b)(4),  193.2513(b)(5),  193.2513(c)(3)(i),  193.2603(a),  193.2603(b),  193.2617,  193.2619(c)(2),  193.2631,  193.2713(b),  193.2801,  193.2911. The case was opened on 2018-12-27 and is reported as closed as of 2019-04-09. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520183003M_Closure Letter_04092019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520183003M/520183003M_Closure%20Letter_04092019.pdf\n\n520183003M_Closure Letter_04092019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520183003M/520183003M_Closure%20Letter_04092019_text.pdf\n\n520183003M_Notice of Amendment_12272018.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520183003M/520183003M_Notice%20of%20Amendment_12272018.pdf\n\n520183003M_Notice of Amendment_12272018_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520183003M/520183003M_Notice%20of%20Amendment_12272018_text.pdf\n\n520183003M_Operator Response to Notice_01252019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520183003M/520183003M_Operator%20Response%20to%20Notice_01252019.pdf\n\n520183003M_Closure Letter_04092019_text.pdf\n\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nApril 9, 2019\nMr. Daniel W. Britton\nPresident/CEO\nFairbanks Natural Gas, LLC\n3408 International Way\nFairbanks, Alaska 99701\nCPF 5-2018-3003M\nCase Closure\nDear Mr. Britton:\nOn August 7 through 11, 2017 and September 18 through 22, 2017, a representative of the Pipeline\nand Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601 of 49 United\nStates Code, inspected Fairbanks Natural Gas’s procedures for your Liquefied Natural Gas facilities in\nFairbanks, Alaska. Based on that inspection, Fairbanks Natural Gas, LLC (FNG) was issued a Notice\nof Amendment (Notice) on December 27, 2018 which proposed amendment of your procedures.\nFNG submitted its amended procedures on January 25, 2019. My staff reviewed the amended\nprocedures and it appears that the inadequacies outlined in this Notice of Amendment have been\ncorrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for\nyour cooperation.\nSincerely,\nChris Hoidal\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 J. Owens (# 155562)\n\n520183003M_Notice of Amendment_12272018_text.pdf\n\nNOTICE OF AMENDMENT\nCERTIFIED MAIL - RETURN RECEIPT REQUESTED\nDecember 27, 2018\nMr. Daniel W. Britton\nPresident/CEO\nFairbanks Natural Gas, LLC\n3408 International Way\nFairbanks, Alaska 99701\nCPF 5-2018-3003M\nDear Mr. Britton:\nOn August 7 through 11, 2017 and September 18 through 22, 2017, a representative of the\nPipeline and Hazardous Materials Safety Administration (PHMSA), pursuant to Chapter 601\nof 49 United States Code, inspected Fairbanks Natural Gas’s procedures for your Liquified\nNatural Gas facilities in Fairbanks, Alaska.\nOn the basis of the inspection, PHMSA has identified the apparent inadequacies found within\nFairbanks Natural Gas’s plans or procedures, as described below:\n1. § 193.2509 Emergency procedures.\n(a)….\n(b) To adequately handle each type of emergency identified under paragraph (a)\nof this section and each fire emergency, each operator must follow one or more\nmanuals of written procedures. The procedures must provide for the following:\n(1)….\n(4) Cooperating with appropriate local officials in evacuations and emergencies\nrequiring mutual assistance and keeping these officials advised of:\n(i) The LNG plant fire control equipment, its location, and quantity of units\n1\n\n\n\nlocated throughout the plant;\n(ii) Potential hazards at the plant, including fires;\n(iii) Communication and emergency control capabilities at the LNG plant; and\n(iv) The status of each emergency.\nThe Operator’s procedure SOP 1110, “Emergency Operating Plan,” is inadequate to ensure\ncooperation with appropriate local officials in evacuations and emergencies requiring mutual\nassistance. Specifically, SOP 1110 does not contain information on the location of fire\ncontrol equipment located throughout the plant, fails to provide information as to how local\nofficials are to be advised of potential hazards (not just fire), and fails to provide information\nas to how local officials are to be apprised of the status of each emergency.\n2. § 193.2513 Transfer procedures.\n(a) Each transfer of LNG or other hazardous fluid must be conducted in\naccordance with one or more manuals of written procedures to provide for safe\ntransfers.\n(b) The transfer procedures must include provisions for personnel to\n(1)....\n(5) Verify that the transfer operations are proceeding within design conditions\nand that overpressure or overfilling does not occur by monitoring applicable flow\nrates, liquid levels, and vapor returns.\nThe Operator’s Standard Operating Procedures 6243 and 6243(b) do not contain the\nrequirements in § 193.2513(b)(5) regarding verification that the transfer operations are\nproceeding within design conditions and that overpressure or overfilling does not occur by\nmonitoring applicable flow rates, liquid levels, and vapor returns. The operator appears to be\ndoing this monitoring during transfers, however, the requirement is not included in the\noperator’s procedures.\n3. § 193.2513 Transfer procedures.\n(a)….\n(c) In addition to the requirements of paragraph (b) of this section, the\nprocedures for cargo transfer must be located at the transfer area and include\nprovisions for personnel to:\n(1)….\n(3) Before transfer, verify that:\n(i) Each tank car or tank truck complies with applicable regulations governing its\nuse;\nThe Operator’s Standard Operating Procedure 6240 “Transfer Procedures” does not contain\nany information regarding verification that the trailers comply with all regulations governing\ntheir use as required by § 193.2513(c)(3)(i).\n4. § 193.2603 General.\n(a) Each component in service, including its support system, must be maintained\nin a condition that is compatible with its operational or safety purpose by repair,\n2\n\n\n\nreplacement, or other means.\n(b) An operator may not place, return, or continue in service any component\nwhich is not maintained in accordance with this subpart.\nThe Operator’s Standard Operating Procedure 7001 “Maintenance Activities,” which is\nrequired by § 193.2605 is inadequate to ensure compliance with § 193.2603(a) and (b) is\nsilent regarding conditions of components in service and (b) regarding component\nmaintenance.\n5. § 193.2617 Repairs.\n(a) Repair work on components must be performed and tested in a manner\nwhich:\n(1) As far as practicable, complies with the applicable requirements of Subpart D\nof this part; and\n(2) Assures the integrity and operational safety of the component being repaired.\n(b) For repairs made while a component is operating, each operator shall include\nin the maintenance procedures under §193.2605 appropriate precautions to\nmaintain the safety of personnel and property during repair activities.\nThe Operator provided no procedures related to repair as required by § 193.2605. As a result,\nthe Operator’s procedures are inadequate to ensure compliance with § 193.2617.\n6. § 193.2619 Control systems.\n(a)....\n(c) Control systems in service, but not normally in operation, such as relief valves\nand automatic shutdown devices, and control systems for internal shutoff valves\nfor bottom penetration tanks must be inspected and tested once each calendar\nyear, not exceeding 15 months, with the following exceptions:\n(1)....\n(2) Control systems that are intended for fire protection must be inspected and\ntested at regular intervals not to exceed 6 months.\nThe Operator’s Standard Operating Procedure 7150 “Fire and Gas Detection Equipment\nMaintenance,” required by § 193.2605 lists both annual and 6-month frequency for inspection\nand testing of fire eyes and methane detectors. Fire eyes and methane detectors are “control\nsystems” as defined by § 193.2007. The procedures are ambiguous and inconsistent with\nrespect to testing frequency, and are therefore inadequate to ensure compliance with\n§193.2619(c)(2).\n3\n\n\n\n7. § 193.2631 Internal corrosion control.\nEach component that is subject to internal corrosive attack must be protected\nfrom internal corrosion by?\n(a) Material that has been designed and selected to resist the corrosive fluid\ninvolved; or\n(b) Suitable coating, inhibitor, or other means.\nThe Operator’s Standard Operating Procedure 7205 “Corrosion Control,” required by\n§ 193.2605, in the 4th paragraph claims to “address external, internal, and atmospheric\ncorrosion.” No further mention of internal corrosion is found in the Operator's procedures.\nThe Operator’s procedures are therefore inadequate to ensure compliance with § 193.2631.\n8. § 193.2713 Training: operations and maintenance.\n(a)....\n(b) A written plan of continuing instruction must be conducted at intervals of not\nmore than two years to keep all personnel current on the knowledge and skills\nthey gained in the program of initial instruction.\nThe Operator’s Standard Operating Procedure 6001 “Plan of Initial and Continuing\nInstruction for Storage and Vaporization Operations” says: “Operators will be evaluated: ….\nEvery (2) years or as defined by the designated task per the SOP” which is not the same as\n“not more than two years” as required by § 193.2713(b).\n9. §193.2801 Fire protection.\nEach operator must provide and maintain fire protection at LNG plants\naccording to sections 9.1 through 9.7 and section 9.9 of NFPA-59A-2001\n(incorporated by reference, see §193.2013).\nNFPA-59A-2001 section 9.9.1 states that “[m]anual emergency depressurizing means shall be\nprovided where necessary for safety. Portions of the plant that can be isolated from storage\ntanks or other sources of supply can be depressurized by venting to the atmosphere. The\ndischarge shall be directed so as to minimize exposure to personnel or equipment.”\nThe Operator’s Standard Operating Procedure 6101 does not contain provisions incorporating\nthe requirements in NFPA 59A 9.9.1 regarding depressurizing to the environment and safety,\nand is therefore inadequate to ensure compliance with § 193.2801.\n4\n\n\n\n10. §193.2801 Fire protection.\nEach operator must provide and maintain fire protection at LNG plants\naccording to sections 9.1 through 9.7 and section 9.9 of NFPA-59A-2001\n(incorporated by reference, see §193.2013).\nNFPA-59A-2001 section 9.9.2 states that “[t]aking an LNG container out of service shall not\nbe regarded as a normal operation and shall not be attempted on any routine basis. All such\nactivities shall require the preparation of detailed procedures.”\nCautionary provisions like those mandated in NFPA 9.9.2 do not appear in Operator's\nStandard Operating Procedure 6201 “General Purging Procedures,” Standard Operating\nProcedure 6202 “LNG Storage Tank Purging and Cooldown Procedures,” Storage Site #1, or\nStandard Operating Procedure 6203 “LNG Storage Tank Purging and Cooldown Procedures,\nStorage Site #2.”\n11. § 193.2911 Security lighting.\nWhere security warning systems are not provided for security monitoring under\n§ 193.2913, the area around the facilities listed under § 193.2905(a) and each\nprotective enclosure must be illuminated with a minimum in service lighting\nintensity of not less than 2.2 lux (0.2 ftc) between sunset and sunrise.\nSecurity warning systems are not provided at the Operator’s Site #1 and Site #2 under §\n193.2913. The Operator is therefore required to follow the security lighting provisions under\n§ 193.2911. Under § 193.2903, the operator’s procedures must be in compliance with §\n193.2911. The Operator’s procedure SOP 1220 “Security Procedures” at the LNG Storage\nSite do not detail the lighting intensity of the security lighting as required in §193.2911.\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. 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).\n5\n\n\n\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days\nof receipt of this Notice, this constitutes a waiver of your right to contest the allegations in\nthis Notice and authorizes the Associate Administrator for Pipeline Safety to find facts as\nalleged in this Notice without further notice to you and to issue an Order Directing\nAmendment. If your plans or procedures are found inadequate as alleged in this Notice, you\nmay be ordered to amend your plans or procedures to correct the inadequacies (49 C.F.R. §\n190.206). If you are not contesting this Notice, we propose that you submit your amended\nprocedures to my office within [number of days] days of receipt of this Notice. This period\nmay be extended by written request for good cause. Once the inadequacies identified herein\nhave been addressed in your amended procedures, this enforcement action will be closed.\nIt is requested (not mandated) that Fairbanks Natural Gas maintain documentation of the\nsafety improvement costs associated with fulfilling this Notice of Amendment\n(preparation/revision of plans, procedures) and submit the total to Chris Hoidal, Acting\nDirector, Western Region, Pipeline and Hazardous Materials Safety Administration. In\ncorrespondence concerning this matter, please refer to CPF 5-2018-3003M and, for each\ndocument you submit, please provide a copy in electronic format whenever possible.\nSincerely,\nChris Hoidal\nActing Director, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 J. Owens (# 155562)\n6","truncated":false,"body_characters":14477}