# INTERIOR GAS UTILITY — Notice of Probable Violation

- **operation:** document
- **citation:** CPF 52022008NOPV
- **title:** INTERIOR GAS UTILITY — Notice of Probable Violation
- **source type:** enforcement
- **agency:** Pipeline and Hazardous Materials Safety Administration
- **status:** historical
- **official:** true
- **published on:** 2022-07-18
- **effective on:** Not available
- **summary:** CLOSED notice of probable violation citing 193.2301, 193.2603(a), 193.2913.
- **machine formats:** - **json:** https://regulus.evalyn.ai/document/phmsa-enforcement-52022008nopv.json
- **markdown:** https://regulus.evalyn.ai/document/phmsa-enforcement-52022008nopv.md
- **app url:** https://regulus.evalyn.ai/document/phmsa-enforcement-52022008nopv
- **source url:** https://primis.phmsa.dot.gov/enforcement-data/case/52022008NOPV
**body:**

Notice of Probable Violation involving INTERIOR GAS UTILITY. PHMSA's enforcement data identifies the cited regulations as 193.2301,  193.2603(a),  193.2913. The case was opened on 2022-07-18 and is reported as closed as of 2024-01-29. Open the official case record for notices, responses, orders, and the latest status.

Official case documents:

52022008NOPV_Closure Letter_01292024_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_Closure%20Letter_01292024_(20-191036).pdf

52022008NOPV_Closure Letter_01292024_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_Closure%20Letter_01292024_(20-191036)_text.pdf

52022008NOPV_Final Order_06062023_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_Final%20Order_06062023_(20-191036).pdf

52022008NOPV_Final Order_06062023_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_Final%20Order_06062023_(20-191036)_text.pdf

52022008NOPV_Operator Response to Notice_08162022_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_Operator%20Response%20to%20Notice_08162022_(20-191036).pdf

52022008NOPV_PCO_07182022_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_PCO_07182022_(20-191036).pdf

52022008NOPV_PCO_07182022_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022008NOPV/52022008NOPV_PCO_07182022_(20-191036)_text.pdf

52022008NOPV_Final Order_06062023_(20-191036)_text.pdf

June 6, 2023
VIA ELECTRONIC MAIL TO: mrockwell@interiorgas.com
Mark Rockwell
Director of Operations
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, Alaska 99709
Re: CPF No. 5-2022-008-NOPV
Dear Mr. Rockwell:
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 Interior Gas Utility 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 e-mail is effective upon the date of transmission and acknowledgement of
receipt 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 (Final Order)
cc: Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA
Mr. Daniel Britton, General Manager, Interior Gas Utility, dwbritton@interiorgas.com
Mr. Brendan Kern, Engineer, Interior Gas Utility, bkern@interiorgas.com
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 )
)
Interior Alaska Natural Gas Utility, ) CPF No. 5-2022-008-NOPV
d/b/a Interior Gas Utility, )
)
Respondent. )
____________________________________)
FINAL ORDER
From September 28 through 30, November 17 through 19, 2020, and on January 12, 14 and 15,
2021, 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 Interior Gas Utility or (IGU or Respondent) in
Fairbanks and North Pole, Alaska. IGU operates a liquefied natural gas (LNG) facility that
includes one production site and three LNG storage sites. IGU’s LNG facility is connected to
215 miles of gas distribution lines.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated July 18, 2022, a Notice of Probable Violation and Proposed
Compliance Order (Notice). In accordance with 49 C.F.R. § 190.207, the Notice proposed
finding that IGU had committed five violations of 49 C.F.R. Part 193 and proposed ordering
Respondent to take certain measures to correct the alleged violations. The Notice also included
an additional two warning items pursuant to 49 C.F.R. § 190.205, which warned the operator to
correct the probable violations or face possible future enforcement action
IGU responded to the Notice by letter dated August 16, 2022 (Response). IGU contested two of
the allegations and offered additional information in response to the Notice. Respondent did not
request a hearing and therefore has waived its right to one.
FINDINGS OF VIOLATION
Item 1: The Notice alleged that Respondent violated 49 C.F.R. § 193.2301, which states:
§ 193.2301 Scope.
Each LNG facility constructed after March 31, 2000, must comply with
requirements of this part and of NFPA-59A-2001 (incorporated by



reference, see § 193.2013). In the event of a conflict between this part and
NFPA 59A, this part prevails.
The Notice alleged that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of section 4.4.2 of NFPA-59A-2001, which requires that “[s]torage containers shall
have all penetrations marked with the function of the penetration. Markings shall be visible if
frosting occurs.” Specifically, the Notice alleged that IGU did not have the requisite markings
on any storage tank penetrations at Storage Site #1.
Respondent did not contest this allegation of violation. IGU provided additional information
relevant to the proposed compliance terms and to clarify that, due to the capacity of the storage
tanks at Storage Site #1, section 10.3.9 of NFPA-59A-2001 is the applicable section. However,
IGU stated that section 10.3.9 contains a similar requirement to section 4.4.2. Chapter 10 of
NFPA-59A-2001 applies to Storage Site #1 because it has an aggregate storage capacity of
90,000 gallons.1 Accordingly, based upon a review of all of the evidence, I find that Respondent
violated 49 C.F.R. § 193.2301 by failing to comply with section 10.3.9 of NFPA-59A-2001.
Item 2: The Notice alleged that Respondent violated 49 C.F.R. § 193.2301, which states:
§ 193.2301 Scope.
Each LNG facility constructed after March 31, 2000, must comply with
requirements of this part and of NFPA-59A-2001 (incorporated by
reference, see § 193.2013). In the event of a conflict between this part and
NFPA 59A, this part prevails.
The Notice alleged that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of sections 6.1.1, 6.3.4, and 6.6.3 of NFPA-59A-2001. Specifically, the Notice
alleged that IGU failed to comply with several sections of ASME B31.3, which is incorporated
by reference into section 6.1.1 of NFPA-59A-2001. These sections include requirements related
to weld markings, welding examinations, and welding process specifications.
Respondent did not contest this allegation of violation. IGU provided additional information
relevant to the proposed compliance terms and to clarify that, due to the capacity of the storage
tanks at Storage Site #4, section 10.11 of NFPA-59A-2001 is the applicable section. However,
IGU stated that section 10.11 contains similar requirements to the sections cited in the Notice.
Chapter 10 of NFPA-59A-2001 applies to Storage Site #4 because it has two storage tanks with
an aggregate storage capacity of 151,200 gallons. Accordingly, based upon a review of all of the
evidence, I find that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of section 10.11 of NFPA-59A-2001.
Item 3: The Notice alleged that Respondent violated 49 C.F.R. § 193.2301, which states:
§ 193.2301 Scope.
Each LNG facility constructed after March 31, 2000, must comply with
1 Chapter 10 of NFPA-59A-2001 applies to the site if each LNG storage tank has a capacity of 100,000 gallons or
less and the aggregate capacity is less than 280,000 gallons.



requirements of this part and of NFPA-59A-2001 (incorporated by
reference, see § 193.2013). In the event of a conflict between this part and
NFPA 59A, this part prevails.
The Notice alleged that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of sections 6.6.1 and 6.6.2 of NFPA-59A-2001 and section 345.2.7 of ASME
B31.3. Specifically, the Notice alleged that IGU failed to include one or more of the required
parameters for numerous pressure test records.
Respondent did not contest this allegation of violation. IGU provided additional information
relevant to the proposed compliance terms and compliance deadline, and to clarify that, due to
the capacity of the storage tanks at Storage Site #4, section 10.11 of NFPA-59A-2001 is the
applicable section. However, IGU stated that section 10.11 contains similar requirements to the
sections cited in the Notice. Chapter 10 of NFPA-59A-2001 applies to Storage Site #4 because it
has two storage tanks with an aggregate storage capacity of 151,200 gallons. Accordingly, based
upon a review of all of the evidence, I find that Respondent violated 49 C.F.R. § 193.2301 by
failing to comply with the requirements of section 10.11 of NFPA-59A-2001 and section 345.2.7
of ASME B31.3.
Item 4: The Notice alleged that Respondent violated 49 C.F.R. § 193.2301, which states:
§ 193.2301 Scope.
Each LNG facility constructed after March 31, 2000, must comply with
requirements of this part and of NFPA-59A-2001 (incorporated by
reference, see § 193.2013). In the event of a conflict between this part and
NFPA 59A, this part prevails.
The Notice alleged that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of section 7.1.1.1 of NFPA-59A-2001 which requires that “LNG containers be
equipped with two independent liquid level gauging devices.” Specifically, the Notice alleged
that, for the Storage Site #1 tank piping, the two liquid level measuring devices were not
independent because they were connected to the same sensing line penetration.
In its Response, IGU asserted its two liquid level gauges complied with section 10.12.2 of
NFPA-59A-2001.2 Specifically, IGU asserted its liquid level gauges are independent because 1)
they are two independent devices (one is digital, and one is analog); 2) either device can be
isolated for service while the other remains in service; 3) both can be serviced without taking the
tank out of service; and 4) there is a 100 percent full trycock valve available for calibration if
necessary. IGU also argued that NFPA-59A-2001 requires independent liquid level gauges, but
not independent sensing lines.
Section 10.12.2 of NFPA-59A-2001 requires independent liquid level devices to provide
redundancy if one of the devices or sensing lines malfunctions or fails. With respect to IGU’s
2 IGU provided additional information to clarify that, due to the size of the storage tanks at Storage Site #1, section
10.12.2 of NFPA-59A-2001 is the applicable section. However, IGU stated that section 10.12.2 contains similar
requirements to section 7.1.1.1, as cited in the Notice. Chapter 10 of NFPA-59A-2001 applies to Storage Site #1
because it has an aggregate storage capacity of 90,000 gallons.



configuration, both devices are dependent on the same sensing line. If the sensing line fails, both
devices would also fail. In other words, because IGU’s two devices are subject to a single point
of failure (the same sensing line), they are not independent and do not provide the required
redundancy. The device and sensing line must be independent to comply with section 10.12.2 of
NFPA-59A-2001. While section 10.12.2 of NFPA-59A-2001 does not explicitly require
independent sensing lines, liquid level devices can only be independent if they are not dependent
on the same sensing lines (i.e., the entire instrumentation well must be independent) because they
would be subject to a single point of failure.
Accordingly, after considering all of the evidence, I find that Respondent violated 49 C.F.R.
§ 193.2301 by failing to comply with the requirements of section 10.12.2 of NFPA-59A-2001.
Item 5: The Notice alleged that Respondent violated 49 C.F.R. § 193.2301, which states:
§ 193.2301 Scope.
Each LNG facility constructed after March 31, 2000, must comply with
requirements of this part and of NFPA-59A-2001 (incorporated by
reference, see § 193.2013). In the event of a conflict between this part and
NFPA 59A, this part prevails.
The Notice alleged that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of section 10.12.4.3 of NFPA-59A-2001. Specifically, the Notice alleged that
Tanks #2 and #3 at Storage Site #1 did not have locking devices installed on the stop valves,
contrary to section 10.12.4.3 of NFPA-59A-2001.
Respondent did not contest this allegation of violation. IGU provided additional information
relevant to the proposed compliance terms. Accordingly, based upon a review of all of the
evidence, I find that Respondent violated 49 C.F.R. § 193.2301 by failing to comply with the
requirements of section 10.12.4.3 of NFPA-59A-2001.
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, and 5 in the Notice for
violations of 49 C.F.R. § 193.2301. Under 49 U.S.C. § 60118(a), each person who engages in
the transportation of liquefied natural gas or who owns or operates a pipeline facility is required
to comply with the applicable safety standards established under chapter 601.
With regard to the violation of § 193.2301 (Item 3), Respondent requested an extension of time
to complete this corrective measure if a system retest is required. Since IGU has not determined
whether a system retest would be necessary, I find that extending the compliance deadline at this
time is not warranted. If a system retest becomes necessary, IGU may submit a timely written
request to the Director demonstrating good cause for an extension.



For the above reasons, the Compliance Order is not modified as set forth below.
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 § 193.2301 (Item 1), Respondent must mark all
LNG storage container penetrations with the function of the penetration within 90
days of receipt of the Final Order. Markings shall be visible if frosting occurs.
Provide the Director revised operating procedures and photographic evidence of
marking all LNG storage container penetrations within 120 days of receipt of the
Final Order.
2. With respect to the violation of § 193.2301 (Item 2), Respondent must perform a
100 percent review of all welding documentation and associated nondestructive
testing (NDT) to determine, with a high degree of accuracy, that all welder IDs are
consistent with construction documentation and associated NDT. Provide the
Director with a report of items reviewed and corrections made within 120 days of
receipt of the Final Order.
3. With respect to the violation of § 193.2301 (Item 3), Respondent must either
correct the aforementioned records or retest the systems under question. Provide the
Director corrected testing records or completed retest records within 120 days of
receipt of the Final Order.
4. With respect to the violation of § 193.2301 (Item 4), Respondent must ensure all
tanks have independent liquid level gauging installed per NFPA-59A-2001 within
180 days of receipt of the Final Order. Provide the Director revised operating
procedures and updated piping and instrument drawings (P&IDs) as well as
photographic evidence within 270 days of receipt of the Final Order.
5. With respect to the violation of § 193.2301 (Item 5), Respondent must lock or seal
secure all stop valves present prior to relief valves within 30 days of receipt of the
Final Order. Provide the Director revised operating procedures and photographic
evidence of locked/secured valves within 90 days of receipt of the Final Order.
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.
PHMSA requests 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 (see 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 ITEMS
With respect to Items 6 and 7, the Notice alleged probable violations of Part 193, but identified
them as warning items pursuant to § 190.205. The warnings were for:
49 C.F.R. § 193.2603(a) (Item 6) ─ Respondent’s alleged failure to maintain each
component in service in a condition that is compatible with its operational or
safety purpose by repair, replacement, or other means; and
49 C.F.R. § 193.2913 (Item 7) ─ Respondent’s alleged failure to provide
procedures for security monitoring by visual observation and records or schedules
of security checks for Storage Site #1 and Storage Site #3.
IGU requested withdrawal of Item 7 because it had procedures in place at the time of inspection
and provided those records with its Response. Under § 190.205, PHMSA does not adjudicate
warning items to determine whether a probable violation occurred. 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. The written petition must be received no later than
20 days after receipt of the 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.
June 6, 2023
___________________________________ __________________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety

52022008NOPV_Closure Letter_01292024_(20-191036)_text.pdf

VIA ELECTRONIC MAIL TO: esudduth@interiorgas.com
January 29, 2024
Ms. Elena Sudduth
General Manager
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, AK 99709
CPF 5-2022-008-NOPV
Closure Letter
Dear Ms. Sudduth:
On January 12, 2021, a representative from the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an on-
site pipeline safety inspection of the facilities and records of Interior Gas Utility’s (IGU)
liquified natural gas (LNG) facilities that included three LNG storage sites. As a result of the
inspection, IGU was issued the referenced Notice of Probable Violation (NOPV) and Proposed
Compliance Order (PCO) on July 18, 2022. PHMSA issued a Final Order on June 6, 2023
upholding the findings of the NOPV and issuing the Compliance Order (CO) as proposed. IGU
provided letters to PHMSA in response to the NOPV on August 16, 2022 regarding NOPV
warning Items 6 and 7, August 25, 2023 regarding NOPV Item 5, September 25, 2023 regarding
NOPV Items 1, 2, and 3, and December 1, 2023 regarding NOPV Item 4 (Responses).
We have reviewed the documentation IGU provided in its Responses, and have determined that
IGU has complied with the terms of the CO. 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. Yeager (#20-191036)
Jim Rasmussen, IGU Operations Engineer (jrasmussen@interiorgas.com)
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