# NORTH SLOPE BOROUGH ENERGY MANAGEMENT — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 520200010
- **title:** NORTH SLOPE BOROUGH ENERGY MANAGEMENT — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2020-11-18
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 192.203(b)(9), 192.465(d), 192.467(a), 192.467(d), 192.479(a), 192.481(a), 192.481(b), 192.614(c)(1), 192.616(c), 192.616(d)(3), 192.707(c), 192.739(a), 192.743(a), 192.807(b).
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- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-520200010.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-520200010
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/520200010
**body:**

Notice of Probable Violation involving NORTH SLOPE BOROUGH ENERGY MANAGEMENT. PHMSA's enforcement data identifies the cited regulations as 192.203(b)(9),  192.465(d),  192.467(a),  192.467(d),  192.479(a),  192.481(a),  192.481(b),  192.614(c)(1),  192.616(c),  192.616(d)(3),  192.707(c),  192.739(a),  192.743(a),  192.807(b). The case was opened on 2020-11-18 and is reported as closed as of 2023-11-16. Proposed civil penalty: $151,900. Assessed civil penalty: $151,900. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

520200010_Closure Letter_11162023_(19-166675S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_Closure%20Letter_11162023_(19-166675S).pdf

520200010_Closure Letter_11162023_(19-166675S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_Closure%20Letter_11162023_(19-166675S)_text.pdf

520200010_Final Order_06152021_(19-166675S).pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_Final%20Order_06152021_(19-166675S).pdf

520200010_Final Order_06152021_(19-166675S)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_Final%20Order_06152021_(19-166675S)_text.pdf

520200010_NOPV PCP PCO_11182020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_NOPV%20PCP%20PCO_11182020.pdf

520200010_NOPV PCP PCO_11182020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_NOPV%20PCP%20PCO_11182020_text.pdf

520200010_Operator Response to Notice_12022020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520200010/520200010_Operator%20Response%20to%20Notice_12022020.pdf

520200010_Closure Letter_11162023_(19-166675S)_text.pdf

VIA ELECTRONIC MAIL TO: Josiah.Patkotak@north-slope.org
November 16, 2023
The Honorable Josiah Patkotak
Mayor of the North Slope Borough
North Slope Borough Energy Management
P.O. Box 69
Utqiagvik, Alaska 99723
CPF 5-2020-0010
Closure Letter
Dear Mayor Patkotak:
On June 15, 2021, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued
to the North Slope Borough a Final Order in the above-referenced case. This Order included
Compliance Order and Civil Penalty assessment. Based on our review of the documentation you
provided and confirmation of payment of the civil penalty, 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 Order
PHP-500 J. Gano (#19-166675S)
Scott Danner, Director of NSB Department of Public Works (via email),
Scott.Danner@north-slope.org

520200010_NOPV PCP PCO_11182020_text.pdf

NOTICE OF PROBABLE VIOLATION
PROPOSED CIVIL PENALTY
and
PROPOSED COMPLIANCE ORDER
VIA E-MAIL TO THE HONORABLE HARRY K. BROWER, JR.
November 18, 2020
The Honorable Harry K. Brower, Jr., Mayor
Mayor of the North Slope Borough
North Slope Borough Energy Management
P.O. Box 69
Utqiagvik, Alaska 99723
CPF 5-2020-0010
Dear Mayor Brower:
From December 9 through 13, 2019, and on March 10, 2020, representatives of the Pipeline and
Hazardous Materials Safety Administration (PHMSA), Office of Pipeline Safety (OPS), pursuant
to Chapter 601 of 49 United States Code (U.S.C.), inspected your Barrow natural gas pipeline
located in Utqiagvik and Nuiqsut natural gas pipeline in the North Slope Borough, Alaska.
As a result of the inspection, it is alleged that you have committed probable violations of the
Pipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The items inspected
and the probable violations are:



1. § 192.203 Instrument, control, and sampling pipe and components.
(a) .…
(b) Materials and design. All materials employed for pipe and components must be
designed to meet the particular conditions of service and the following:
(1) ….
(9) Each control line must be protected from anticipated causes of damage and
must be designed and installed to prevent damage to any one control line from
making both the regulator and the over-pressure protective device inoperative.
On the Barrow natural gas pipeline, the control line between the Primary Gas Handling Facility
and Pipeline Valve Station 1 is not protected from anticipated causes of damage as required by §
192.203(b)(9).
Four pressure control valves (PCV214A, PCV214B, PCV237A, and PCV237B) at the Primary
Gas Handling Facility (PGHF) reduce the pressure from the upstream gathering system
(approximately 900 psig) to the pipeline's normal operating pressure (approximately 290
psig). These pressure control valves share a common stainless steel sensing/control line, which
is located on a pipe rack between the PGHF and Pipeline Valve Station 1. The sensing/control
line is located outside and shares pipe supports with nearby piping. The sensing line may be
damaged by sloughing snow or ice from the adjacent pipes, particularly mid-point of the span
between pipe supports. Failure of this sensing line would cause the four pressure control valves
to all simultaneously open which could potentially overpressure the pipeline.
2. § 192.465 External corrosion control: Monitoring.
(a) .…
(d) Each operator shall take prompt remedial action to correct any deficiencies
indicated by the monitoring.
North Slope Borough Energy Management (NSBEM) failed to take prompt remedial action to
correct deficiencies found during their 2017, 2018, and 2019 cathodic protection (CP)
monitoring of the Nuiqsut natural gas pipeline. CP inspections completed in 2017, 2018, and
2019 found locations along the buried portion of the Nuiqsut natural gas pipeline that did not
meet one or more applicable criteria contained in appendix D of part 192.
In 2017, NSBEM conducted a survey of the CP levels at each test station. Test Stations 2, 4, and
7 did not meet CP criteria. NSBEM was cited by PHMSA in a 2013 Warning Letter (5-2013-
0008W) for failing to maintain the required level of cathodic protection on the Nuiqsut natural
gas pipeline. That letter states that NSBEM had reports showing, as far back as 2011, that CP
potentials at Test Stations 2, 4, and 7 were inadequate.
In both 2018 and 2019, NSBEM conducted close-interval surveys and test station point surveys
of the Nuiqsut natural gas pipeline. The close interval surveys demonstrated that the majority of
the pipeline did not meet applicable CP criteria in 2018, and approximately 23 percent of the
pipeline did not meet applicable CP criteria in 2019. Portions of the pipeline between Test
2



Stations 1 and 2, between Test Stations 2 and 3, and between Test Stations 3 and 4, failed to
meet CP criteria in both the 2018 and 2019 close-interval surveys.
Despite records showing inadequate CP potentials were found during monitoring, including
locations that had inadequate CP potentials for multiple consecutive years, NSBEM has not
taken any remedial measures to ensure the pipeline meets the CP criteria specified in appendix D
of part 192.
3. § 192.467 External corrosion control: Electrical isolation.
(a) Each buried or submerged pipeline must be electrically isolated from other
underground metallic structures, unless the pipeline and the other structures are
electrically interconnected and cathodically protected as a single unit.
The buried segment of the Nuiqsut natural gas pipeline was not electrically isolated from other
underground metallic structures and was not electrically interconnected with those structures and
cathodically protected as a single unit. Cathodic protection inspection reports completed in 2017,
2018, and 2019 noted that a bare copper wire was bonded to the Nuiqsut transmission pipeline,
which bypassed the di-electric isolation flange kit at the pressure reducing valve (PRV) at the
downstream end of the pipeline, shorting the pipeline to the PRV's grounding system. The PRV
skid and the pipeline are not electrically interconnected and cathodically protected as a single
unit. The operator removed the grounding wire during the March 10, 2020 site inspection, but
could not verify that the pipeline was isolated from PRV facility piping.
4. § 192.467 External corrosion control: Electrical isolation.
(a) .…
adequate.
(d) Inspection and electrical tests must be made to assure that electrical isolation is
NSBEM failed to make inspections and electrical tests to assure that electrical isolation is
adequate at the upstream end of the buried segment of the Nuiqsut natural gas pipeline. During
the March 10, 2020 inspection, PHMSA observed potential lack of isolation between the pipeline
and the buried, bare steel vertical support members (VSMs) which support the above ground
pipeline. The VSMs were not intended to be electrically interconnected with the pipeline and
protected as a single unit. Specifically, PHMSA observed that the pipeline is not equipped with
an insulating device (for example a dielectric insulating flange) to electrically isolate the buried
segment from the above-ground segment. The above-ground segment was braced to bare steel
horizontal support members (HSMs) and VSMs using steel U-bolts. In addition, the Nuiqsut
pipeline was supported between the HSMs by steel brackets that were connected via U-bolts to
the pipeline and three other neighboring pipelines that did not appear to be isolated from the
VSMs. This above-ground segment has historically had coating failures and may be electrically
continuous with the bare steel vertical support members.
3



NSBEM was unable to demonstrate that an inspection and electrical test had occurred at this
location and that the electrical isolation was adequate. The NSBEM conducts isolation
inspecting and testing annually at other locations on this pipeline, the results of which are
presented in the cathodic protection monitoring reports. The reports do not include testing at the
upstream end of the buried segment. The reports do show that test stations near this end of the
pipeline have not consistently met cathodic protection criteria, indicating isolation may be
necessary to facilitate the application of corrosion control.
5. § 192.479 Atmospheric corrosion control: General.
(a) Each operator must clean and coat each pipeline or portion of pipeline that is
exposed to the atmosphere, except pipelines under paragraph (c) of this section.
The operator did not clean and coat each portion of the Nuiqsut natural gas pipeline that was
exposed to the atmosphere as required by § 192.479(a), nor did they meet the exceptions to the
requirement to do so under paragraph § 192.479(c). Between 2010 and 2018, the Nuiqsut natural
gas pipeline operated without adequate atmospheric corrosion control coating and with corrosion
present that was beyond that of a light surface oxide. In addition, the operator failed to
demonstrate that the corrosion would not affect the safe operation of the pipeline before the next
scheduled inspection per § 192.479(c)(2).
In 2013, PHMSA cited the operator for failing to protect the Nuiqsut gas pipeline from
atmospheric corrosion per § 192.479. PHMSA stated in a May 23, 2013 Warning Letter (CPF 5-
2013-0008W) to the operator that PHMSA observed that the pipeline was exposed to the
atmosphere at numerous locations where the coating was damaged; that water was present
beneath the damaged coating; and that pitting and corrosion beyond a light surface oxide were
present at these locations. The warning letter indicated that the operator had coating inspection
records dating back to 2010 that showed damage to the coating and corrosion that was beyond a
light surface oxide.
Atmospheric corrosion inspection records for the Nuiqsut natural gas pipeline completed in April
2014 and April 2017 show that the damaged coating had not been repaired. In February and
March 2018, NSBEM repaired the damaged coating on the pipeline. During the repairs, the
operator noted pitting with a depth of 20 mils (0.020 inches) or deeper at 43 locations, with the
deepest pit depth of 47 mils (0.047 inches, or approximately 23 percent wall loss).
NSBEM failed to demonstrate that corrosion pitting on the Nuiqsut natural gas pipeline would
not affect the safe operation of the pipeline before the next scheduled inspection. For example,
the report for the April 2017 atmospheric corrosion inspection does not show that pitting was
observed in the 234 inspection sites covered by that report; however, in 2018, the NSBEM
repaired 3,543 damaged coating sites and found pitting at 43 locations. This suggests the 2017
atmospheric corrosion inspection failed to identify the pitting and therefore cannot demonstrate it
would not affect the safe operation of the pipeline before the next scheduled inspection.
4



6. § 192.481 Atmospheric corrosion control: Monitoring.
(a) Each operator must inspect each pipeline or portion of pipeline that is exposed
to the atmosphere for evidence of atmospheric corrosion, as follows:
If the pipeline is
located:
Then the frequency of inspection is:
Onshore Offshore At least once every 3 calendar years, but with intervals not
exceeding 39 months
At least once each calendar year, but with intervals not
exceeding 15 months
Consecutive atmospheric corrosion inspections of aboveground portions of the Barrow natural
gas pipeline occurred in July 2014 and then in September 2018, which exceeded the maximum
39-month inspection interval for pipelines located onshore.
7. § 192.481 Atmospheric corrosion control: Monitoring.
(a) Each operator must inspect each pipeline or portion of pipeline that is exposed
to the atmosphere for evidence of atmospheric corrosion, as follows:
If the pipeline is
located:
Then the frequency of inspection is:
Onshore Offshore At least once every 3 calendar years, but with intervals not
exceeding 39 months
At least once each calendar year, but with intervals not
exceeding 15 months
During their September 2018 atmospheric corrosion inspection, NSBEM failed to inspect every
portion of the Barrow natural gas pipeline that was exposed to the atmosphere for evidence of
atmospheric corrosion. Specifically, the NSBEM failed to inspect the “S-Curve” separator at
Valve Station 2 and its associated aboveground piping and valves as part of the September 2018
atmospheric corrosion inspection. The report for the September 2018 atmospheric corrosion
inspection shows the boundaries of the areas of the pipeline that NSBEM inspected (piping
circuit diagrams and tabulated inspection data). This report shows that NSBEM omitted the “S-
Curve” and its associated aboveground piping from that inspection. During the December 10,
2019 inspection, PHMSA observed wide-spread coating failures and atmospheric corrosion at
this location.
8. § 192.481 Atmospheric corrosion control: Monitoring.
(a) ….
(b) During inspections the operator must give particular attention to pipe at soil-to-
air interfaces, under thermal insulation, under disbonded coatings, at pipe supports,
in splash zones, at deck penetrations, and in spans over water.
5



NSBEM failed to inspect the Nuiqsut natural gas pipeline at soil-to-air interfaces and under
thermal insulation. The Nuiqsut pipeline has thermal insulation at the soil-to-air interfaces,
but atmospheric corrosion records for inspection reports 2014 and 2017 showed that NSBEM
inspected the pipeline but did not inspect soil-to-air interfaces and areas under thermal insulation,
as required by § 192.481(b).
9. § 192.614 Damage prevention program.
(a) .…
(c) The damage prevention program required by paragraph (a) of this section must,
at a minimum:
(1) Include the identity, on a current basis, of persons who normally engage in
excavation activities in the area in which the pipeline is located.
NSBEM’s damage prevention program failed to include the identity, on a current basis, of
persons who normally engage in excavation activities in the area in which the pipeline is located.
During the inspection, NSBEM personnel stated that they did not maintain a list of any such
excavators.
10. § 192.616 Public awareness.
(a) .…
(c) The operator must follow the general program recommendations, including
baseline and supplemental requirements of API RP 1162, unless the operator
provides justification in its program or procedural manual as to why compliance
with all or certain provisions of the recommended practice is not practicable and
not necessary for safety.
NSBEM failed to follow the general recommendations of API RP 1162. Specifically, NSBEM
did not annually complete an audit or review of the Public Awareness Program's implementation,
as required in Section 8.3 of API RP 1162. During the inspection, NSBEM provided to PHMSA
personnel a completed internal self-assessment worksheet for 2018; however, NSBEM personnel
stated that an audit or review for the years prior to 2018 was never completed. NSBEM did not
provide justification as to why compliance with that provision was not practicable or necessary
for safety.
In addition, as of January 7, 2020, the operator had not evaluated the effectiveness of their public
awareness program, which is required by § 192.616(c), Section 8.4 of API 1162, and their own
procedures. Their written Public Awareness Plan (Rev. 6, January 2019) stated:
"The deadline for the first Effectiveness Evaluation will be based on the
creation and implementation date of the original written plan, December
2015. With this in mind, the four-year deadline for this evaluation is
calculated at July 2019 in order to keep in compliance with the federally
established deadline as described in RP 1162."
6



The operator did not complete the 4-Year Effectiveness Evaluation in 2019. The operator did
not provide justification as to why compliance with that provision was not practicable or
necessary for safety.
11. § 192.616 Public awareness.
(a) .…
(d) The operator's program must specifically include provisions to educate the
public, appropriate government organizations, and persons engaged in excavation
related activities on:
(3) Physical indications that such a release may have occurred;
NSBEM’s 2019 Public Awareness flyer, which was used to educate the public in Nuiqsut on the
physical indications of a possible release, stated that "Natural gas smells like rotten
eggs." NSBEM’s Nuiqsut natural gas pipeline is un-odorized, thus the information provided to
the public in the flyer failed to educate the public as required by the regulation.
12. § 192.707 Line markers for mains and transmission lines.
(a) .…
(c) Pipelines aboveground. Line markers must be placed and maintained along each
section of a main and transmission line that is located aboveground in an area
accessible to the public.
On the Barrow natural gas pipeline, NSBEM failed to place and maintain line markers along
each section of its transmission line that is located aboveground in an area accessible to the
public. There is an above-ground portion of the Barrow pipeline located on a causeway that is
accessible to the public that did not have pipeline markers on either side.
13. § 192.739 Pressure limiting and regulating stations: Inspection and testing.
(a) Each pressure limiting station, relief device (except rupture discs), and pressure
regulating station and its equipment must be subjected at intervals not exceeding 15
months, but at least once each calendar year, to inspections and tests to determine
that it is—
NSBEM failed to inspect each pressure regulating station at least once each calendar year at
intervals not to exceed 15 months. The Barrow natural gas pipeline’s pressure is regulated by six
pressure control valves (PCVs) at two facilities (specifically, PCV214A, PCV214B, PCV237A,
and PCV237B at the Primary Gas Handling Facilities and PCV001 and PCV002 at the South
Gas Handling Facility). These PCVs are the primary pressure control on the pipeline; they
reduce the pressure from the upstream gathering system (maximum 900 psig) to the Barrow
natural gas pipeline’s normal operating pressure (approximately 290 psig). NSBEM provided
records showing that the pressure regulating stations on the Barrow natural gas pipeline were
inspected on June 11, 2016 and December 7, 2017, which exceeded the maximum 15-month
interval.
7



14. § 192.739 Pressure limiting and regulating stations: Inspection and testing.
(a) Each pressure limiting station, relief device (except rupture discs), and pressure
regulating station and its equipment must be subjected at intervals not exceeding 15
months, but at least once each calendar year, to inspections and tests to determine
that it is—
(1) In good mechanical condition;
(2) Adequate from the standpoint of capacity and reliability of operation for the
service in which it is employed;
(3) Except as provided in paragraph (b) of this section, set to control or relieve at
the correct pressure consistent with the pressure limits of §192.201(a); and
(4) Properly installed and protected from dirt, liquids, or other conditions that
might prevent proper operation.
NSBEM failed to ensure that a pressure control valve, PCV-214A, was "in good mechanical
condition" during its June 2016 inspection. PCV-214A is a Pressure Control Valve at the PGHF,
which is a pressure regulating facility for the Barrow natural gas pipeline. The worksheet for the
June 2016 inspection indicated that there was audible leak-by at PCV-214A and that the valve
needed to be re-built, but the operator had not repaired the valve by the December 2017
inspection (the leak-by was still present and noted on the December 2017 inspection
worksheet). During PHMSA's 2019/2020 inspection the operator stated that the leak-by had still
not been repaired.
15. § 192.743 Pressure limiting and regulating stations: Capacity of relief devices.
(a) Pressure relief devices at pressure limiting stations and pressure regulating
stations must have sufficient capacity to protect the facilities to which they are
connected. Except as provided in §192.739(b), the capacity must be consistent with
the pressure limits of § 192.201(a). This capacity must be determined at intervals
not exceeding 15 months, but at least once each calendar year, by testing the devices
in place or by review and calculations.
NSBEM failed to test in place or review the capacity of the relief devices at the pressure
regulating stations in the Primary Gas Handling Facility (PGHF) and South Gas
Handling Facilities (SGHF). The PGHF and SGHF both have pressure regulating stations that
reduce the pressure from the gathering system (maximum approximately 900 psi) to the Barrow
transmission pipeline's operating pressure (typically 290 psi). PSV 360 and RV005 are the relief
valves in the PGHF and SGHF, respectively. NSBEM stated during the inspection that they had
never tested the devices in place nor reviewed the capacity calculations.
16. § 192.807 Recordkeeping.
(a) .…
(b) Records supporting an individual's current qualification shall be maintained
while the individual is performing the covered task. Records of prior qualification
8



and records of individuals no longer performing covered tasks shall be retained for
a period of five years.
NSBEM failed to retain Operator Qualification (OQ) records prior to 2016. Personnel operating
pipelines for the North Slope Borough work under contract; the operator stated that, in 2016, the
prior contract company, operating on behalf of the North Slope Borough, destroyed the OQ
records.
Proposed Civil Penalty
Under 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed
$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a
related series of violations. For violations occurring on or after November 27, 2018 and before
July 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a
maximum penalty not to exceed $2,132,679. For violations occurring on or after November 2,
2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per
violation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring
prior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per
day, with a maximum penalty not to exceed $2,000,000 for a related series of violations. We
have reviewed the circumstances and supporting documentation involved for the above probable
violations and recommend that you be preliminarily assessed a civil penalty of $151,900 as
follows:
Item number
PENALTY
6
13
14
$38,000
$55,200
$58,700
Warning Items
With respect to items 10, 11, and 16, we have reviewed the circumstances and supporting
documents involved in this case and have decided not to conduct additional enforcement action
or penalty assessment proceedings at this time. We advise you to promptly correct these items.
Failure to do so may result in additional enforcement action.
Proposed Compliance Order
With respect to items 1, 2, 3, 4, 5, 7, 8, 9, 12, 14, and 15, pursuant to 49 U.S.C. § 60118, the
Pipeline and Hazardous Materials Safety Administration proposes to issue a Compliance Order
to North Slope Borough Energy Management. Please refer to the Proposed Compliance Order,
which is enclosed and made a part of this Notice.
Response to this Notice
Enclosed as part of this Notice is a document entitled Response Options for Pipeline Operators
in Enforcement Proceedings. Please refer to this document and note the response options. All
material you submit in response to this enforcement action may be made publicly available. If
9



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).
Following the receipt of this Notice, you have 30 days to submit written comments, or request a
hearing under 49 CFR § 190.211. 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 you are responding to this Notice, we propose that
you submit your correspondence to my office within 30 days from receipt of this Notice. This
period may be extended by written request for good cause.
In your correspondence on this matter, please refer to CPF 5-2020-0010 and, for each document
you submit, please provide a copy in electronic format whenever possible.
Sincerely,
Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
Enclosures: Proposed Compliance Order
Response Options for Pipeline Operators in Enforcement Proceedings
cc: PHP-60 Compliance Registry
PHP-500 Jake Gano (#166675, #166676, #166677)
10



PROPOSED COMPLIANCE ORDER
Pursuant to 49 United States Code § 60118, the Pipeline and Hazardous Materials Safety
Administration (PHMSA) proposes to issue to North Slope Borough Energy Management a
Compliance Order incorporating the following remedial requirements to ensure the compliance
of North Slope Borough Energy Management with the pipeline safety regulations:
A. B. C. In regard to Item 1 of the Notice pertaining to the control line for the pressure
control valves on the Barrow natural gas pipeline, North Slope Borough Energy
Management must:
A.1 Within 90 days of receipt of the Final Order, provide to the Director of the
Western Region a written work plan to secure the stainless-steel sensing line. The
work plan must include design drawings showing a configuration that ensures that
the sensing line is protected from damage, and that the pipeline’s MAOP cannot
be exceeded as a result of the failure of the sensing line.
A.2 Upon receiving a notice of non-objection from the Director of the Western
Region, North Slope Borough Energy Management must implement that work
plan within 90 days.
A.3 Within 30 days of completing the activities described in A.2, provide to the
Director of the Western Region as-built drawings and photographs demonstrating
that activities were completed consistent with the work plan.
In regard to Item 2 of the Notice pertaining to inadequate levels of cathodic
protection on the Nuiqsut natural gas pipeline, North Slope Borough Energy
Management must:
B.1 Within 180 days of receipt of the Final Order, provide to the Director of the
Western Region a written assessment of the viability of meeting cathodic
protection criteria on the pipeline. The assessment must show the horizontal and
vertical alignment of the pipeline; locations of current and historic inadequate
cathodic protection levels along the alignment; and the horizontal and vertical
locations of known permafrost (for example from boreholes, thermistor data,
original construction data) and relevant surface features (for example ponding,
thaw bulbs, river channels).
B.2 If the assessment described in B.1 shows areas of inadequate cathodic
protection levels where the pipeline is buried coinciding with locations that
cannot be demonstrated to be permafrost, the assessment in B.1 must also include
a written work plan to address the areas of inadequate cathodic protection and/or
the data gaps.
B.3 Upon receiving a notice of non-objection from the Director of the Western
Region, North Slope Borough Energy Management must implement the work
plan described in B.2 within 180 days, and must provide to the Director of the
Western Region the records associated with that work within 90 days of
completion.
In regard to Items 3 and 4 of the Notice pertaining to inadequate electrical
isolation on the Nuiqsut natural gas pipeline, North Slope Borough Energy
11



D. E. F. Management must, within 180 days of receipt of the Final Order, install electrical
insulating device(s) at the upstream end of the buried segment; conduct testing at
both the upstream and downstream end of the buried segment to show that the
pipeline is electrically isolated from other buried structures that are not intended
to be cathodically protected as a single unit (including, at a minimum, the PRV
station at the downstream end of the buried segment and the nearest vertical
support member at the upstream end of the buried segment); and, within 30 days
of completing these activities, provide records demonstrating the electrical
isolation of the pipeline to the Director of the Western Region.
In regard to Item 5 of the Notice pertaining to coating of the Nuiqsut Natural gas
pipeline, North Slope Borough Energy Management must:
D.1 Within 90 days of receiving the Final Order, submit to the Director of the
Western Region a written assessment and maintenance plan for maintaining the
atmospheric corrosion control coatings on its pipelines in accordance with the
regulations. The plan must be incorporated into North Slope Borough Energy
Management’s written corrosion control procedures. The plan must include, at a
minimum, how NSBEM will determine and document whether a corroded
segment meets the criteria for exemption from atmospheric corrosion control per
§ 192.479(c), and the plan must include specific time frames for repairing any
coating damage not meeting the criteria for exemption.
D.2 NSBEM must provide to the Director of the Western Region a listing of all
locations on the pipelines that are uncoated or the coating is damaged, the results
of any corrosion assessment performed at those locations, and a written repair
plan for those locations. NSBEM must submit the plan within 90 days of
receiving the final order, and must implement the repair plan as required by the
regulations.
In regard to Item 7 of the Notice pertaining to atmospheric corrosion inspections
at Valve Station 2 of the Barrow Natural gas pipeline, North Slope Borough
Energy Management must:
E.1 Within 90 days of receipt of the Final Order, complete an atmospheric
corrosion inspection of Valve Station 2, which must include all valves, the “S
Curve” separator, the associated drain lines, and any other components through
which natural gas may flow.
E.2 Within 90 days of completing the inspection described in E.1, protect areas
where atmospheric corrosion is found as required by § 192.481(c).
E.3 Within 30 days of completing the activities described in E.1 and E.2, provide
records of the inspection and coating repairs or replacement to the Director of the
Western Region.
In regard to Item 8 of the Notice pertaining to the insulated soil-to-air interface on
the Nuiqsut natural gas pipeline, North Slope Borough Energy Management must
assess the condition of the insulation and outer coating within 180 days of receipt
of the Final Order. If damage to the outer coating is found during the assessment,
North Slope Borough Energy Management must, as soon as practicable but no
later than 30 days following the assessment, assess the condition of the inner pipe
and inner pipe’s coating; assess the presence or extent of wet insulation; and
12



G. H. I. J. K. repair or replace any wet insulation and damaged inner or outer coating.
In regard to Item 9 of the Notice pertaining to identifying excavators for the
purpose of damage prevention notifications, North Slope Borough Energy
Management must, within 90 days of receipt of the Final Order, amend its mailing
list for damage prevention notifications to include excavators who normally
engage in excavation activities in the area in which the Barrow and Nuiqsut
natural gas pipelines are located. North Slope Borough Energy Management must
consider, at a minimum, excavators who frequently use the one-call system but
are not located in Barrow or Nuiqsut and therefore are not currently part of their
mailing list.
In regard to Item 12 of the Notice pertaining to line markers on the Barrow
natural gas pipeline, North Slope Borough Energy Management must install line
markers on the Barrow natural gas pipeline at all areas where the pipeline is
above-ground and accessible to the public (including, at a minimum, the above-
ground pipeline segment at the causeway crossing) within 180 days of receipt of
the Final Order. The North Slope Borough must provide notice to the Director of
the Western Region with 30 days of completing the installation.
In regard to Item 14 of the Notice pertaining to the audible leak on Pressure
Control Valve PVC214A at the Primary Gas Handling Facility on the Barrow
natural gas pipeline, North Slope Borough Energy Management must repair or
replace PCV-214A within 180 days of receipt of the Final Order. The North Slope
Borough must provide notice to the Director of the Western Region within 30
days of completing the repair or replacement.
In regard to Item 15 of the Notice pertaining to review of capacity calculations
for pressure relief valves protecting the Barrow natural gas pipeline, North Slope
Borough Energy Management must:
J.1 Within 90 days of receipt of the Final Order, provide to the Director of the
Western Region calculations of the required capacity for each relief device
consistent with § 192.201 and calculations of the relief capacities for each device
under conditions which it operates consistent with § 192.743(b).
J.2 If the activities described in J.1 demonstrate that any relief valves lack
adequate capacity, the operator must provide, along with the calculations, a
written work plan to address any deficiencies.
J.3 Upon receiving a notice of non-objection from the Director of the Western
Region, implement that work plan within 90 days.
J.4 Within 30 days of completing the activities described in J.3, provide to the
Director of the Western Region as-built drawings and photographs demonstrating
that activities were completed consistent with the work plan.
It is requested (not mandated) that North Slope Borough Energy Management
maintain documentation of the safety improvement costs associated with fulfilling
this Compliance Order and submit the total to Dustin Hubbard, Director, Western
Region, Pipeline and Hazardous Materials Safety Administration. 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.
13

520200010_Final Order_06152021_(19-166675S)_text.pdf

June 15, 2021
VIA ELECTRONIC MAIL TO: harry.brower@north-slope.org
The Honorable Harry K. Brower, Jr., Mayor
Mayor of the North Slope Borough
North Slope Borough Energy Management
P.O. Box 69
Barrow, Alaska 99723
Re: CPF No. 5-2020-0010
Dear Mayor Brower:
Enclosed please find the Final Order issued in the above-referenced case. It makes findings of
violation, assesses a civil penalty of $151,900, and specifies actions that need to be taken by
North Slope Borough Energy Management to comply with the pipeline safety regulations. The
penalty payment terms are set forth in the Final Order. When the civil penalty has been paid and
the terms of the compliance order completed, as determined by the Director, Western Region,
this enforcement action will be closed. Service of the Final Order by electronic mail is effective
upon the date of transmission 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. Scott K. Danner, Director, Department of Public Works, North Slope Borough,
scott.danner@north-slope.org
CONFIRMATION OF 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 )
North Slope Borough Energy Management, ) CPF No. 5-2020-0010
)
)
)
Respondent. )
__________________________________________)
FINAL ORDER
On December 9-13, 2019, and March 10, 2020, pursuant to 49 U.S.C. § 60117, representatives 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 North
Slope Borough Energy Management (NSB) in Utqiagvik and North Slope Borough, Alaska.
NSB operates the Barrow and Nuiqsut natural gas pipelines with over 160 miles of plastic pipe.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated November 18, 2020, a Notice of Probable Violation, Proposed Civil
Penalty, 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
NSB had committed thirteen (13) violations of 49 C.F.R. Part 192 and proposed assessing a civil
penalty of $151,900 for the alleged violations. The Notice also proposed ordering Respondent to
take certain measures to correct the alleged violations. The warning items required no further
action, but warned the operator to correct the probable violations or face possible future
enforcement action.
NSB responded to the Notice by letter dated December 2, 2020 (Response). The company
contested two of the allegations, offered additional information in response to the Notice,
requested that the proposed civil penalty be reduced, and requested that the proposed compliance
order be modified.
FINDINGS OF VIOLATION
The Notice alleged that Respondent violated 49 C.F.R. Part 192, as follows:
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 192.203(b)(9), which states in
relevant part:
§ 192.203 Instr
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