{"operation":"document","citation":"CPF 520203001W","title":"FAIRBANKS NATURAL GAS — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-05-12","effective_on":null,"summary":"CLOSED warning letter citing 193.2503(b), 193.2711.","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-520203001w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-520203001w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-520203001w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/520203001W","body":"Warning Letter involving FAIRBANKS NATURAL GAS. PHMSA's enforcement data identifies the cited regulations as 193.2503(b),  193.2711. The case was opened on 2020-05-12 and is reported as closed as of 2020-05-12. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n520203001W_Warning Letter_05122020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520203001W/520203001W_Warning%20Letter_05122020.pdf\n\n520203001W_Warning Letter_05122020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/520203001W/520203001W_Warning%20Letter_05122020_text.pdf\n\n520203001W_Warning Letter_05122020_text.pdf\n\nWARNING LETTER\nVIA E-MAIL TO MR. DANIEL W. BRITTON\nMay 12, 2020\nMr. Daniel W. Britton\nPresident/CEO\nFairbanks Natural Gas, LLC\n3408 International Way\nFairbanks, Alaska 99701\nCPF 5-2020-3001W\nDear Mr. Britton:\nOn July 15 through 16, 2019, August 22 through 23, 2019, and October 24, 2019, a\nrepresentative of the Pipeline and Hazardous Materials Safety Administration (PHMSA),\npursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected your Fairbanks Natural\nGas, LNG storage and vaporization facilities at Donald Avenue and Tria Road in Fairbanks,\nAlaska.\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 (CFR). The items inspected\nand the probable violations are:\n\n\n\n1. § 193.2503 Operating procedures.\nEach operator shall follow one or more manuals of written procedures to provide\nsafety in normal operation and in responding to an abnormal operation that would\naffect safety. The procedures must include provisions for:\n…\n(b) Startup and shutdown, including for initial startup, performance testing to\ndemonstrate that components will operate satisfactory in service.\nRecords for warm-up of LNG storage tank #3 located at Site #1 (Donald Avenue), beginning on\nJune 17, 2019 did not have the detail called for in SOPs 6202, 6230, and the Tank Warm Up\nprocedure dated August 2018 (Warm-up procedure). Step 2 in the sequence of events for the\nWarm-up procedure state that the operator must “Document all steps and findings on the\nOperators Log located on the PC at each site.” SOP 6230 calls for a detailed written warming\nprocedure before a tank is taken out of service. The written warm-up procedure dated August\n2018, explicitly requires documentation of all steps and findings taken to safely warm the tank to\nambient temperatures.\nThe Warm-up procedure provides a sequence of events involving eight discrete tasks. Step five\nof the Warm-up procedure required documenting the monitoring of the LNG level within the\ntarget tank. Records for warm-up of LNG storage tank #3 located at Site #1 (Donald Avenue),\nbeginning on June 17, 2019 lacked the initial tank level, how fast the tank was being drawn\ndown, and the date tank was determined to be empty.\nStep seven of Warm-up procedure requires the operator to monitor the tank pressure and\nmanually vent the tank until the pressures subside. The final note in the record on July 22, 2019\nindicated that pressure continued to build within the tank which in turn required manual venting.\nThere was no record of when the tank finally stopped building pressure and was deemed safe for\nmaintenance activities.\n2. § 193.2711 Personnel health.\nEach operator shall follow a written plan to verify that personnel assigned\noperating, maintenance, security, or fire protection duties at the LNG plant do not\nhave any physical condition that would impair performance of their assigned duties.\nThe plan must be designed to detect both readily observable disorders, such as\nphysical handicaps or injury, and conditions requiring professional examination for\ndiscovery.\nRecords are inconsistent with the requirements of FNG SOP 1160 which states that FNG will\nobtain and keep records regarding the physical examination and other illness and injuries with\nemployee records for the length of employment. The Operations Supervisor’s most recent\nfitness for duty certificate, completed by a medical examiner was September 12, 2018; however,\nthere was no record of fitness for duty certificates prior to September 2018.\n\n\n\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a\nrelated series of violations. For violation occurring on or after November 27, 2018 and before\nJuly 31, 2019, the maximum penalty may not exceed $213,268 per violation per day, with a\nmaximum penalty not to exceed $2,132,679. For violation occurring on or after November 2,\n2015 and before November 27, 2018, the maximum penalty may not exceed $209,002 per\nviolation per day, with a maximum penalty not to exceed $2,090,022. For violations occurring\nprior to November 2, 2015, the maximum penalty may not exceed $200,000 per violation per\nday, with a maximum penalty not to exceed $2,000,000 for a related series of violations. Also,\nfor each violation involving LNG facilities, and additional penalty of not more than $79,875\noccurring on or after July 31, 2019 may be imposed. For each violation involving LNG\nfacilities, an additional penalty of not more than $77,910 occurring on or after November 27,\n2018 and before July 31,2019 may be imposed. For each violation involving LNG facilities\noccurring on or after November 2, 2018 and before November 27, 2018, an additional penalty of\nnot more than $76,352 may be imposed. For each violation involving LNG facilities occurring\nprior to November 2, 2015, an additional penalty of not more than $75,000 may be imposed. 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 this\ntime. We advise you to correct the items identified in this letter. Failure to do so will result in\nFairbanks Natural Gas, being subject to additional enforcement action.\nNo reply to this letter is required. If you choose to reply, in your correspondence please refer to\nCPF 5-2020-3001W. Be advised that all material you submit in response to this enforcement\naction is subject to being made publicly available. If you believe that any portion of your\nresponsive material qualifies for confidential treatment under 5 U.S.C. 552(b), along with the\ncomplete original document you must provide a second copy of the document with the portions\nyou believe qualify for confidential treatment redacted and an explanation of why you believe\nthe redacted information qualifies for confidential treatment under 5 U.S.C. 552(b).\nSincerely,\nDustin B. Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Chard (#162684)","truncated":false,"body_characters":6875}