# AMERIGAS PROPANE LP — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 520190016
- **title:** AMERIGAS PROPANE LP — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2019-05-16
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.357(a), 192.455(a)(2), 192.481(c), 192.605(a), 192.707(a), 192.723(b)(1), 192.747(a).
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- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520190016
**body:**

Notice of Probable Violation involving AMERIGAS PROPANE LP. PHMSA's enforcement data identifies the cited regulations as 192.357(a),  192.455(a)(2),  192.481(c),  192.605(a),  192.707(a),  192.723(b)(1),  192.747(a). The case was opened on 2019-05-16 and is reported as closed as of 2020-01-27. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520190016_Closure Letter_01272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Closure%20Letter_01272020.pdf

520190016_Closure Letter_01272020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Closure%20Letter_01272020_text.pdf

520190016_Final Order_11142019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Final%20Order_11142019.pdf

520190016_Final Order_11142019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Final%20Order_11142019_text.pdf

520190016_NOPV PCO_05162019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_NOPV%20PCO_05162019.pdf

520190016_NOPV PCO_05162019_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_NOPV%20PCO_05162019_text.pdf

520190016_Operator Response to Notice_11022019.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520190016/520190016_Operator%20Response%20to%20Notice_11022019.pdf

520190016_Closure Letter_01272020_text.pdf

CERTIFIED MAIL - RETURN RECEIPT REQUESTED
January 27, 2020
Mr. Hugh Gallagher
President and Chief Executive Officer
AmeriGas Propane, Inc.
460 North Gulph Road
King of Prussia, Pennsylvania 19406
CPF 5-2019-0016
Closure Letter
Dear Mr. Gallagher:
On November 14, 2019, the Pipeline and Hazardous Materials Safety Administration
(PHMSA) issued to AmeriGas Propane, LP 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,
Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 M. Garcia (#163602)
Mr. David Hedrick, Pipeline Safety & Compliance Manager, AmeriGas Propane, LP

520190016_Final Order_11142019_text.pdf

November 14, 2019
Mr. Hugh Gallagher
President and Chief Executive Officer
AmeriGas Propane, Inc.
460 North Gulph Road
King of Prussia, Pennsylvania 19406
Re: CPF No. 5-2019-0016
Dear Mr. Gallagher:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation and specifies actions that need to be taken by your subsidiary, AmeriGas Propane, LP,
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 effective upon the date of mailing, as
provided under 49 C.F.R. § 190.5.
Thank you for your cooperation in this matter.
Sincerely,
Alan K. Mayberry
Associate Administrator
for Pipeline Safety
Enclosure
cc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. David Hedrick, Pipeline Safety & Compliance Manager, AmeriGas Propane, LP
CERTIFIED MAIL - RETURN RECEIPT REQUESTED



U.S. DEPARTMENT OF TRANSPORTATION
PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
OFFICE OF PIPELINE SAFETY
WASHINGTON, D.C. 20590
____________________________________
In the Matter of )
AmeriGas Propane, LP, ) CPF No. 5-2019-0016
a subsidiary of AmeriGas Partners, LP, )
)
)
)
Respondent. )
____________________________________)
FINAL ORDER
From November 5 to November 16, 2018, pursuant to 49 U.S.C. § 60117, a representative of the
Pipeline and Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety
(OPS), conducted an on-site pipeline safety inspection of the facilities and records of AmeriGas
Propane, LP (AmeriGas or Respondent), in Maui, Kona, and Oahu, Hawaii. AmeriGas is a
wholly-owned subsidiary of AmeriGas Partners, LP, with AmeriGas Propane, Inc., acting as the
general partner and conducting operations management.1 AmeriGas operates a propane
distribution network in all states, and uses a number of interstate gas pipelines to transport
propane.2
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated May 16, 2019, a Notice of Probable Violation and Proposed
Compliance Order (Notice), which also included a warning pursuant to 49 C.F.R. § 190.205. In
accordance with 49 C.F.R. § 190.207, the Notice proposed finding that AmeriGas had committed
six violations of 49 C.F.R. Part 192 and proposed ordering Respondent to take certain measures
to correct the alleged violations. The warning item required no further action, but warned the
operator to correct the probable violation or face possible future enforcement action.
AmeriGas responded to the Notice by email dated July 2, 2019 (Response). The company did
not contest the allegations of violation and agreed to complete the proposed compliance actions.
Respondent did not request a hearing and therefore has waived its right to one.
1 AmeriGas Propane, Inc., website, available at
https://s22.q4cdn.com/746525948/files/doc financials/annuals/2018/FINAL-PDF-of-AmeriGas-Annual-Report-on-
Form-10-K.pdf (last accessed October 16, 2019).
2 Id.



CPF No. 5-2019-0016
Page 2
FINDINGS OF VIOLATION
In its Response, AmeriGas did not contest the allegations in the Notice that it violated 49 C.F.R.
Part 192, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 292.357(a), which states:
§ 192.357 Customer meters and regulators: Installation.
(a) Each meter and each regulator must be installed so as to minimize
anticipated stresses upon the connecting piping and the meter.
The Notice alleged that Respondent violated 49 C.F.R. § 192.357(a) by failing to install
customer meters so as to minimize anticipated stresses upon the connecting pipe and the meter.
Specifically, the Notice alleged that AmeriGas had installed several customer meters that did not
have proper supports, with several wall-mounted meters installed with no mounting brackets, as
required by § 192.357(a) and AmeriGas’ Operating and Maintenance (O&M) Manual.
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. § 192.357(a) by failing to install
customer meters so as to minimize anticipated stresses upon the connecting pipe and the meter.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 192.455(a)(2), which states:
§ 192.455 External corrosion control: Buried or submerged pipelines
installed after July 31, 1971.
(a) Except as provided in paragraphs (b), (c), (f), and (g) of this section, each
buried or submerged pipeline installed after July 31, 1971, must be protected
against external corrosion, including the following:
(1) . . . .
(2) It must have a cathodic protection system designed to protect the pipeline
in accordance with this subpart, installed and placed in operation within 1 year after
completion of construction.
The Notice alleged that Respondent violated 49 C.F.R. § 192.455(a)(2) by failing to protect its
buried pipeline with a cathodic protection (CP) system. Specifically, the Notice alleged that
AmeriGas did not have records demonstrating that its propane distribution pipeline at Maui
District, which was constructed after July 31, 1971, was protected with a CP system. AmeriGas
did not install a CP system until 2018, and thus had no adequate CP system for the years 2016
and 2017.
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. § 192.455(a)(2) by failing to protect
its buried pipeline with a CP system.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 192.481(c), which states:



CPF No. 5-2019-0016
Page 3
§ 192.481 Atmospheric corrosion control: Monitoring.
(a) . . .
(c) If atmospheric corrosion is found during an inspection, the operator
must provide protection against the corrosion as required by §192.479.
The Notice alleged that Respondent violated 49 C.F.R. § 192.481(c) by failing to protect against
atmospheric corrosion found during an inspection. Specifically, the Notice alleged that
AmeriGas discovered active atmospheric corrosion on its Maui Coast Hotel system during an
investigation conducted on January 8, 2018. Despite AmeriGas’ discovery of the corrosion, at
the time of the PHMSA inspection several above-ground pipelines and other pipeline
components still showed severe atmospheric corrosion.
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. § 192.481(c) by failing to protect
against atmospheric corrosion found during an inspection.
Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a), which states:
§ 192.605 Procedural manual for operations, maintenance, and
emergencies.
(a) General. Each operator shall prepare and follow for each pipeline, a
manual of written procedures for conducting operations and maintenance
activities and for emergency response. For transmission lines, the manual
must also include procedures for handling abnormal operations. This
manual must be reviewed and updated by the operator at intervals not
exceeding 15 months, but at least once each calendar year. This manual
must be prepared before operations of a pipeline system commence.
Appropriate parts of the manual must be kept at locations where operations
and maintenance activities are conducted.
The Notice alleged that Respondent violated 49 C.F.R. § 192.605(a) by failing to follow its
written procedures for conducting operations and maintenance activities and for emergency
response. Specifically, the Notice alleged that AmeriGas failed to comply with four sections of
its O&M Manual.
First, the section of AmeriGas’ O&M Manual titled “Emergency Plan” required the company to
“participate in emergency response drills and deployment exercises with local emergency
responders,” among other requirements. Respondent stated that, instead of participating in drills,
the company only conducted liaison meetings with local emergency responders and showed the
responders AmeriGas’ system.
Second, the section of AmeriGas’ O&M Manual titled “Odorization of Gas” required the
company to use one of three methods to ensure that a proper amount of odorant had been added.
AmeriGas’ Monthly Odorant Verification Tracking forms did not indicate whether one of the
methods was used to verify a proper amount of odorant.



CPF No. 5-2019-0016
Page 4
Third, the section of AmeriGas’ O&M Manual titled “Abandonment of Facilities” required the
company to follow specific steps to abandon existing service lines. During the PHMSA
inspection, several existing service lines were discovered that had not been properly abandoned
in accordance with AmeriGas’ procedures.
Fourth, the section of AmeriGas’ O&M Manual titled “Damage Prevention Program” required
the company to take several actions during excavation of a pipeline, including to “exercise care
and take all reasonable steps to avoid damage . . . to any buried lines or cables,” and to prevent
excavation damage by making a call to the State One Call center. During the PHMSA
inspection, AmeriGas personnel observed a missing CP anode on a pipeline and immediately
excavated the pipeline to install the missing component without following the procedures in the
O&M Manual.
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. § 192.605(a) by failing to follow its
written procedures for conducting operations and maintenance activities and for emergency
response.
Item 5: The Notice alleged that Respondent violated 49 C.F.R. § 192.707(a), which states:
§ 192.707 Line markers for mains and transmission lines.
(a) Buried pipelines. Except as provided in paragraph (b) of this section,
a line marker must be placed and maintained as close as practical over each
buried main and transmission line:
(1) At each crossing of a public road and railroad; and
(2) Wherever necessary to identify the location of the transmission line
or main to reduce the possibility of damage or interference.
The Notice alleged that Respondent violated 49 C.F.R. § 192.707(a) by failing to place a line
marker at each crossing of a public road and at several other locations necessary to reduce the
possibility of damage to the pipeline. Specifically, the Notice alleged that AmeriGas failed to
place a line marker at each crossing of a public road. Additionally, AmeriGas failed to place a
line marker along each side of its above-ground pipelines in areas accessible to the public, as
required by the company’s O&M Manual.3
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. § 192.707(a) by failing to place a line
marker at each crossing of a public road and at several other locations necessary to reduce the
possibility of damage to the pipeline.
Item 6: The Notice alleged that Respondent violated 49 C.F.R. § 192.723(b)(1), which states:
§ 192.723 Distribution systems: Leakage surveys.
(a) . . . .
3 Pipeline Safety Violation Report (on file with PHMSA), Exhibits Q and R.



CPF No. 5-2019-0016
Page 5
(b) The type and scope of the leakage control program must be
determined by the nature of the operations and the local conditions, but it
must meet the following minimum requirements:
(1) A leakage survey with leak detector equipment must be conducted
in business districts, including tests of the atmosphere in gas, electric,
telephone, sewer, and water system manholes, at cracks in pavement and
sidewalks, and at other locations providing an opportunity for finding gas
leaks, at intervals not exceeding 15 months, but at least once each calendar
year.
The Notice alleged that Respondent violated 49 C.F.R. § 192.723(b)(1) by failing to conduct
leakage surveys with leak detector equipment in business districts, including tests of the
atmosphere in gas, electric, telephone, sewer, and water system manholes, at cracks in pavement
and sidewalks, and at other locations providing an opportunity for finding gas leaks, at intervals
not exceeding 15 months, but at least once each calendar year. Specifically, the Notice alleged
that AmeriGas did not use combustible gas indicator equipment in the Maui District, a business
district. The company only surveyed its above-ground gas pipeline components in the business
district using a leak detector solution.
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. § 192.723(b)(1) by failing to conduct
leakage surveys with leak detector equipment in business districts, including tests of the
atmosphere in gas, electric, telephone, sewer, and water system manholes, at cracks in pavement
and sidewalks, and at other locations providing an opportunity for finding gas leaks, at intervals
not exceeding 15 months, but at least once each calendar year.
These findings of violation will be considered prior offenses in any subsequent enforcement
action taken against Respondent.
COMPLIANCE ORDER
The Notice proposed a compliance order with respect to Items 1, 2, 3, 4, 5, and 6 in the Notice
for violations of 49 C.F.R. Part 192. 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 actions
to ensure compliance with the pipeline safety regulations applicable to its operations:
1. With respect to the violation of § 192.357(a) (Item 1), Respondent must:
a) Follow AmeriGas' O&M Manual - Meters, Service Regulators and Lines.
b) Inspect all gas meters located in Maui, Kona, and Oahu, Hawaii Districts for
proper supports.
c) All gas meters that do not have proper support must be corrected and must have
the proper mounting brackets or pipe supports. Mounting bracket that will be
installed must not have a metal-to-metal contact with the gas meters.



CPF No. 5-2019-0016
Page 6
d) Create a list of the number of meters per customer in all Districts.
e) Revise inspection form(s) to indicate or to include a checkbox to show that meters
have been inspected for proper support.
f) Remove the foreign corrugated plastic water line on top of the aboveground gas
service pipe at the Imuha Mamalahoa Center or reroute the gas service pipe.
2. With respect to the violation of § 192.455(a)(2) (Item 2), Respondent must:
a) Follow AmeriGas' O&M Manual - Corrosion Control.
b) Inspect the pipeline system in all Districts to create a list of each pipeline system
to show if the system has steel risers, anode-less risers, underground polyethylene
pipe or underground steel pipe.
c) Install cathodic protection systems on all underground steel pipe and steel risers.
d) Re-train and re-qualify all personnel or contractors who will be installing and
testing cathodic protection systems.
3. With respect to the violation of § 192.481(c) (Item 3), Respondent must:
a) Follow AmeriGas' O&M Manual - Corrosion Control.
b) Re-evaluate and inspect the pipeline system in all Districts for atmospheric
corrosion.
c) Correct or apply protection to all pipeline systems and containers that have
atmospheric corrosion.
d) Inspect all gas meters in all Districts that are in contact with the ground and
correct any deficiencies. Gas meters must not contact the ground to ensure proper
inspection of the bottom surface of the meters for atmospheric corrosion.
e) Replace all severely-corroded aboveground pipe and components at Maui Coast
Hotel system and any other pipeline systems in the Districts that need
replacement.
f) Re-train and re-qualify all personnel or contractors who will be inspecting,
installing new pipe, applying new coats, and any other covered tasks for the
corrective actions.
4. With respect to the violation of § 192.605(a) (Item 4), Respondent must:
a) Follow AmeriGas' O&M Manual - Emergency Plan.
b) For all Districts, schedule and participate in emergency response drills and
deployment exercises with the local emergency responders to establish unified
incident command roles, operating procedures and preparedness for various
emergency scenarios where appropriate.
c) Revise your Emergency Plan to include how often AmeriGas will participate or
conduct actual emergency response drills and deployment exercises.
d) Follow AmeriGas' O&M Manual - Odorization of Gas, for testing of odorant level
by using the testing methods and equipment described in Step 5 of the procedure.
e) Train and qualify all personnel on the use of the gas odorization testing methods
set forth in AmeriGas' O&M Manual.
f) Revise the odor test inspection form to indicate the odor test method and
equipment used, date of calibration, amount of odorant detected, etc.
g) Inspect the pipeline system in all Districts and document all inactive pipeline



CPF No. 5-2019-0016
Page 7
service and follow AmeriGas' O&M Manual - Abandonment of Facilities.
h) Re-train and requalify all personnel that will be inspecting and abandoning
inactive pipelines regarding AmeriGas' Abandonment of Facilities procedure.
i) Re-train and re-qualify all personnel regarding AmeriGas' Damage Prevention
Program and procedures.
5. With respect to the violation of § 192.707(a) (Item 5), Respondent must:
a) Follow AmeriGas' O&M Manual - Damage Prevention Program.
b) Inspect the pipeline system in all Districts and install pipeline markers where
needed.
6. With respect to the violation of § 192.723(b)(1) (Item 6), Respondent must:
a) Follow AmeriGas' O&M Manual - Leak Surveys.
b) Conduct leak surveys of all pipeline systems in the Maui district either by pressure
test or by using leak survey instruments.
c) Train and qualify all personnel that will be conducting the leak survey using an
instrument.
AmeriGas must complete the remediation work required by sections 1 through 6, above, within
180 days of the date of this Order and must submit records, updated forms, photographs, and any
other documentation necessary to demonstrate compliance with the Order to the Director.
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.
It is requested (not mandated) that Respondent 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/revision of plans, procedures, studies and analyses; and (2) total cost associated
with replacements, additions and other changes to pipeline infrastructure.
Failure to comply with this Order may result in the administrative assessment of civil penalties
not to exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), 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.
WARNING ITEM
With respect to Item 7, the Notice alleged a probable violation of Part 192 but did not propose a
civil penalty or compliance order for this item. Therefore, this is considered to be a warning
item. The warning was for:



CPF No. 5-2019-0016
Page 8
49 C.F.R. § 192.747(a) (Item 7) ─ Respondent’s alleged failure to check and
service its valves on the Maui District pipeline system at intervals not exceeding
15 months, but at least once per calendar year.
If OPS finds a violation of this provision in a subsequent inspection, Respondent may be subject
to future enforcement action.
Under 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final
Order to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey
Avenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of
Chief Counsel, PHMSA, at the same address, no later than 20 days after receipt of service of this
Final Order by Respondent. Any petition submitted must contain a statement of the issue(s) and
meet all other requirements of 49 C.F.R. § 190.243. The terms of the order, including corrective
action, remain in effect unless the Associate Administrator, upon request, grants a stay.
The terms and conditions of this Final Order are effective upon service in accordance with 49
C.F.R. § 190.5.
November 14, 2019
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
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