{"operation":"document","citation":"CPF 52022010NOA","title":"INTERIOR GAS UTILITY — Notice of Amendment","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2022-07-18","effective_on":null,"summary":"CLOSED notice of amendment citing 193.2301, 193.2503(b).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022010noa.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022010noa.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-52022010noa","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/52022010NOA","body":"Notice of Amendment involving INTERIOR GAS UTILITY. PHMSA's enforcement data identifies the cited regulations as 193.2301,  193.2503(b). The case was opened on 2022-07-18 and is reported as closed as of 2023-09-22. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n52022010NOA_Closure Letter_09222023_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Closure%20Letter_09222023_(20-191036).pdf\n\n52022010NOA_Closure Letter_09222023_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Closure%20Letter_09222023_(20-191036)_text.pdf\n\n52022010NOA_Notice of Amendment_07182022_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Notice%20of%20Amendment_07182022_(20-191036).pdf\n\n52022010NOA_Notice of Amendment_07182022_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Notice%20of%20Amendment_07182022_(20-191036)_text.pdf\n\n52022010NOA_Operator Response to Notice_08162022_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Operator%20Response%20to%20Notice_08162022_(20-191036).pdf\n\n52022010NOA_Order Directing Amendment_08022023_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Order%20Directing%20Amendment_08022023_(20-191036).pdf\n\n52022010NOA_Order Directing Amendment_08022023_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Order%20Directing%20Amendment_08022023_(20-191036)_text.pdf\n\n52022010NOA_Order Directing Amendment_08022023_(20-191036)_text.pdf\n\nAugust 2, 2023\nVIA ELECTRONIC MAIL TO: mrockwell@interiorgas.com\nMr. Mark Rockwell\nDirector of Operations\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, Alaska 99709\nRe: CPF No. 5-2022-010-NOA\nDear Mr. Rockwell:\nEnclosed please find the Order Directing Amendment issued in the above-referenced case to\nInterior Gas Utility (IGU). It makes findings of inadequate procedures, finds that certain\namended procedures are adequate, and requires IGU to amend certain portions of its procedures.\nWhen the amendment of procedures has been completed, as determined by the Director, Western\nRegion, this enforcement action will be closed. Service of the Order Directing Amendment by e-\nmail is effective upon the date of transmission and acknowledgement of receipt as provided\nunder 49 C.F.R. § 190.5.\nThank you for your cooperation in this matter.\nSincerely,\nAlan K. Mayberry\nAssociate Administrator\nfor Pipeline Safety\nEnclosure\ncc: Mr. Dustin Hubbard, Director, Western Region, Office of Pipeline Safety, PHMSA\nMr. Daniel Britton, General Manager, Interior Gas Utility, dwbritton@interiorgas.com\nMr. Brendan Kern, Engineer, Interior Gas Utility, bkern@interiorgas.com\nCONFIRMATION OF RECEIPT REQUESTED\n\n\n\nU.S. DEPARTMENT OF TRANSPORTATION\nPIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION\nOFFICE OF PIPELINE SAFETY\nWASHINGTON, D.C. 20590\n____________________________________\nIn the Matter of )\nInterior Alaska Natural Gas Utility, ) CPF No. 5-2022-010-NOA\nd/b/a Interior Gas Utility, )\n)\n)\n)\nRespondent. )\n____________________________________)\nORDER DIRECTING AMENDMENT\nOn January 12, 2021, a representative from the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected\nInterior Gas Utility’s (IGU or Respondent) procedures for welding and cooldown/start-up in\nNorth Pole, Alaska.\nAs a result of the inspection, the Director, Western Region, OPS (Director), issued to\nRespondent, by letter dated July 18, 2022, a Notice of Amendment (Notice). In accordance with\n49 CFR § 190.206, the Notice proposed finding that certain of IGU’s procedures were\ninadequate to assure safe operation and proposed that Respondent amend its procedures.\nIGU responded to the Notice by letter dated August 16, 2022 (Response). In its Response, IGU\nsubmitted additional documentation and contested the allegations in the Notice. Personnel from\nIGU and PHMSA met online on December 13, 2022, to discuss the issues addressed in the\nnotice1. Respondent did not request a hearing and therefore waived its right to one.\nFINDING OF INADQUATE PROCEDURES\nItem 1: The Notice alleged that Respondent’s procedures were inadequate in regard to 49 CFR §\n193.2301, which states:\n§ 193.2301 Scope.\nEach LNG facility constructed after March 31, 2000 must comply with\nrequirements of this part and of NFPA-59A-2001 (incorporated by\nreference see § 193.2013). In the event of a conflict between this part and\nNFPA 59A, this part prevails.\n1 Region Recommendation, at 1.\n\n\n\nThe Notice alleged IGU’s welding procedures were inadequate to assure safe operation of a\npipeline facility. Specifically, the Notice alleged IGU’s procedures failed to implement the\nrequirements of NFPA 59A 6.3.4.1, as required per § 193.2301.2 NFPA 59A 6.3.4.1 states,\n“Qualification and performance of welders shall be in accordance with Section 328.2 of ASME\nB 31.3, Process Piping, and 6.3.4.2 of this standard.” The Notice alleged that at the time of the\ninspection, IGU’s procedures were inadequate because they failed to clearly state which welding\nspecifications were to be utilized to complete construction welds.\n3\nIn its Response, IGU stated that NFPA 59A 10.114 is the standard that applied to its facility.\n5\nIGU argued that its procedures were adequate because it relies on contractors and subcontractors,\neach of which have their own procedures, for construction and welding projects.6 Respondent\naverred that because the contractors and subcontractors have their own specific requirements for\nwelders, IGU’s procedures cannot specify what procedures a particular company must require as\nthey use different contractors for different projects.7 Respondent further argued at the time of\nthe inspection, the subcontractor used for the construction projects reviewed by the inspector\nutilized welders trained on approved welding procedure specifications (WPS) for that company,\nand that the welders performing the work utilized the company’s WPS most appropriate to meet\nthe piping specifications for the project.8\nSection 193.2301 requires each operator of an LNG facility to comply with requirements of Part\n193 and NFPA-59A-2001. Regarding welding, section 6.3.4.1 of NFPA 59A states that the\nqualification and performance of welders shall be in accordance with Section 328.2 of ASME B\n31.3, in addition to other requirements. As it relates to IGU’s response, ASME B 31.3, Section\n328.1 states “Each employer is responsible for the welding done by the personnel of his\norganization and, except as provided in paras. 328.2.2 and 328.3, shall conduct the tests required\nto qualify welding procedures, and to qualify and as necessary requalify welders and welding\noperators.” Additionally, ASME B 31.3, paragraph 328.2.2 states, in part, that,\nEach employer is responsible for qualifying any welding procedure that personnel of the\norganization will use. Subject to the specific approval of the Inspector, welding procedures\nqualified by others may be used, provided that the following conditions are met.\n(a) The Inspector shall be satisfied that:\n(1) the proposed welding procedure specification (WPS) has been prepared, qualified and\n2 Notice, at 2.\n3 Id.\n4 NFPA 59A 10.11.1 states, “All piping that is part of an LNG container and the facility associated with the\ncontainer for handling cryogenic liquid or flammable fluid shall be in accordance with ASME B 31.3, Process\nPiping.”\n5 Response, at 1.\n6 Response, at 1.\n7 Id.\n8 Id.\n\n\n\nexecuted by a responsible, recognized organization with expertise in the field of welding; and\n(2) the employer has not made any change the welding procedure.\nIn this case, IGU stated that they use contractors and subcontractors who have their own WPS\nfor welding projects.\n9 Respondent further contended in its Response that, a “welder is required\nto use an approved WPS prepared by their company and with their company letterhead on it.”10\nIGU was allowed to utilize another organization’s procedure so long as the conditions stated in\nASME B 31.3, paragraph 328.2.2 were met. However, IGU has not established that its current\nprocedures align with ASME B 31.3 as required by NFPA 59A, paras. 6.3.1.4 and 10.11,\npursuant to § 193.2301. While in its Response, IGU described the methods its subcontractors\nutilized to select the WPS used for the construction work referenced in the Notice11, IGU has not\ndemonstrated through its Response that it has procedures in place to document and review a\ncontractor and subcontractor’s procedures to verify that those procedures have been prepared,\nqualified, and executed by a responsible, recognized organization with expertise in the field of\nwelding, as is required by ASME B 31.3, paragraph 328.2.2.\nAccordingly, based upon a review of all the evidence, I find Respondent’s procedures were\ninadequate to assure safe operation of the pipeline facility.\nPursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206, Respondent must amend its\nprocedures, as necessary, to include a method to review and document contractor and\nsubcontractor welding procedures. Respondent must submit the applicable procedures to the\nDirector, Western Region, OPS within 30 days following receipt of this Order.\nThe Regional Director may extend the period for compliance with this Order upon a written\nrequest timely submitted by the Respondent and demonstrating good cause for an extension.\nFailure to comply with this Order may result in administrative assessment of civil penalties not\nto exceed $200,000, as adjusted for inflation (49 C.F.R. § 190.223), for each violation for each\nday the violation continues or in referral to the Attorney General for appropriate relief in a\ndistrict court of the United States.\nItem 2: The Notice alleged that Respondent’s procedures were inadequate in regard to 49 CFR §\n193.2503, which states:\n§ 193.2503 Operating procedures.\nEach operator shall follow one or more manuals of written procedures\nto provide safety in normal operation and in responding to an abnormal\noperation that would affect safety. The procedures must include provisions\nfor:\n(a) …\n(b) Startup and shutdown, including for initial startup, performance\n9 Id.\n10 Id.\n11 Id.\n\n\n\ntesting to demonstrate that components will operate satisfactory in service.\nThe Notice alleged that IGU’s cooldown and start-up procedures were inadequate to assure safe\noperation of a pipeline facility by failing to implement the requirements of § 193.2503(b). IGU\nopposed the allegation in the Notice and the parties met virtually on December 13, 2022.12 Per a\nletter dated February 3, 2023 (Letter), the Director acknowledged receipt of North Pole\nGasification Plan, on August 16, 2022, and LNG Storage Tank Purging and Cooldown\nProcedure Manual, SOP S4-6202, on January 17, 2023.13 Upon review of the received\nprocedures, the Director determined in the Letter that inadequacies previously found in IGU’s\ncooldown and start-up procedures had been corrected.14\nAccordingly, based upon a review of all evidence, I find Respondent’s procedures were\ninadequate, as alleged in the Notice, but have subsequently been adequately amended.\nTherefore, no further action is necessary regarding this Item.\nUnder 49 C.F.R. § 190.243, Respondent may submit a Petition for Reconsideration of this Final\nOrder to the Associate Administrator, Office of Pipeline Safety, PHMSA, 1200 New Jersey\nAvenue, SE, East Building, 2nd Floor, Washington, DC 20590, with a copy sent to the Office of\nChief Counsel, PHMSA, at the same address. The written petition must be received no later than\n20 days after receipt of the Order by Respondent. Any petition submitted must contain a\nstatement of the issue(s) and meet all other requirements of 49 C.F.R. § 190.243. The terms of\nthe order, including corrective action, remain in effect unless the Associate Administrator, upon\nrequest, grants a stay.\nThe terms and conditions of this Order are effective upon service in accordance with 49 C.F.R.\n§ 190.5.\nAugust 2, 2023\n___________________________________ ______________________\nAlan K. Mayberry Date Issued\nAssociate Administrator\nfor Pipeline Safety\n12 Region Recommendation, at 1.\n13 See Letter.\n14 Id.\n\n52022010NOA_Closure Letter_09222023_(20-191036)_text.pdf\n\nVIA ELECTRONIC MAIL TO: MR. DANIEL BRITTON - dwbritton@interiorgas.com\nSeptember 22, 2023\nMr. Daniel Britton\nIGU General Manager\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, AK 99709\nCPF 5-2022-010-NOA\nClosure Letter\nDear Mr. Britton:\nOn January 12, 2021, a representative from the Pipeline and Hazardous Materials Safety Administration\n(PHMSA), pursuant to chapter 601 of 49 United States Code, conducted an on-site pipeline safety\ninspection of Interior Gas Utility’s (IGU) procedures for Welding & Cooldown/Start-up in North Pole,\nAlaska. As a result of the inspection, IGU was issued a Notice of Amendment on July 18, 2022, which\nproposed amendments of its procedures.\nIGU submitted a response to PHMSA, contesting Item 1 and Item 2 of the NOA on August 16, 2022.\nUpon discussion with IGU and review of documentation provided to PHMSA, Item 2 of the NOA was\nconsidered adequate and accepted via region recommendation on February 3, 2023. An Order Directing\nAmendment was issued on August 2, 2023 directing IGU to amend its procedures with respect to Item 1\nof the NOA.\nIGU submitted its amended procedures, for Item 1 of the NOA, on August 25, 2023. My staff reviewed\nthe amended procedures, and it appears that the inadequacies outlined in this Notice of Amendment have\nbeen corrected.\nThis letter is to inform you no further action is necessary and this case is now closed. Thank you for your\ncooperation.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\ncc: PHP-60 Compliance Registry\nPHP-500 M. Yeager (#20-191036)\nElena Sudduth, Interior Gas Utility (esudduth@interiorgas.com)\nBrendan Kern, Engineer, Interior Gas Utility (bkern@fngas.com)\n\n52022010NOA_Notice of Amendment_07182022_(20-191036)_text.pdf\n\nNOTICE OF AMENDMENT\nVIA E-MAIL TO MR. DANIEL BRITTON\nJuly 18, 2022\nMr. Daniel Britton\nIGU General Manager\nInterior Gas Utility\n2525 Phillips Field Road\nFairbanks, AK 99709\nCPF 5-2022-010-NOA\nDear Mr. Britton:\nOn January 12, 2021, a representative of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Interior\nGas Utility’s (IGU) procedures for Welding & Cooldown/Start-up in North Pole, Alaska.\nAs a result of the inspection, it appears that IGU’s written procedures are inadequate to assure\nsafe operation of the pipeline as follows:\n1. § 193.2301 Scope.\nEach LNG facility constructed after March 31, 2000 must comply with\nrequirements of this part and of NFPA-59A-2001 (incorporated by\nreference see §193.2013). In the event of a conflict between this part and\nNFPA 59A, this part prevails.\nNFPA 59A 6.3.4 Welding\n6.3.4.1 Qualification and performance of welders shall be in accordance with\nSection 328.2 of ASME B 31.3, Process Piping, and 6.3.4.2 of this standard.\n\n\n\nASME B 31.1, paragraph 328.1\nWelding and Brazing Qualification. Welding and brazing procedure\nspecifications (WPSs and BPSs) to be followed in production welding shall be\nprepared and qualified…\nIGU’s procedures were inadequate to assure safe operation of a pipeline facility. Specifically,\nIGU’s written procedures failed to implement the requirements of NFPA 59A 6.3.4.1, which\nstates that “[q]ualification and performance of welders shall be in accordance with Section 328.2\nof ASME B 31.3, Process Piping, and 6.3.4.2 of this standard.” Paragraph 328.1 of ASME B\n31.3 requires that, “[w]elding and brazing procedure specifications (WPSs and BPSs) to be\nfollowed in production welding shall be prepared and qualified …”\nIGU did not prepare welding procedure specifications to be followed in production welding.\nIGU’s drawings & welding procedures did not reference which welding specifications were\nutilized. As a result, it was impossible to determine whether correct welding specification\nprocesses were followed to complete construction welds. IGU must revise its procedures to\nclearly state which welding specifications must be utilized to complete construction welds.\n2. § 193.2503 Operating procedures.\nEach operator shall follow one or more manuals of written procedures to\nprovide safety in normal operation and in responding to an abnormal\noperation that would affect safety. The procedures must include provisions\nfor:\n(a) . . . .\n(b) Startup and shutdown, including for initial startup, performance testing to\ndemonstrate that components will operate satisfactory in service.\nIGU’s procedures were inadequate to assure safe operation of a pipeline facility. Specifically,\nIGU’s written procedures failed to implement the requirements of § 193.2503 (b), which states\nthat procedures must include provisions for startup, including for initial startup and performance\ntesting to demonstrate that components will operate satisfactory in service.\nIGU’s Cooldown & Start-up Procedure allowed for natural gas to be introduced into the\ndistribution system to customers at unsafe concentrations for transportation/usage. Moreover, the\nprocedure document had illegible sections with missing verbiage and data. IGU must revise its\nprocedures to require that gas be introduced into the distribution system to customers at\nconcentrations that are safe for transportation/usage and prevent the formation of a hazardous\nmixture of gas and air in accordance with § 192.629(a).\nResponse to this Notice\nThis Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as\npart of this Notice is a document entitled Response Options for Pipeline Operators in\nCompliance Proceedings.\n\n\n\nPlease refer to this document and note the response options. Be advised that all material you\nsubmit in response to this enforcement action is subject to being made publicly available. If you\nbelieve that any portion of your responsive material qualifies for confidential treatment under 5\nU.S.C. 552(b), along with the complete original document you must provide a second copy of\nthe document with the portions you believe qualify for confidential treatment redacted and an\nexplanation of why you believe the redacted information qualifies for confidential treatment\nunder 5 U.S.C. 552(b).\nFollowing the receipt of this Notice, you have 30 days to submit written comments, revised\nprocedures, or a request for a hearing under §190.211. If you do not respond within 30 days of\nreceipt of this Notice, this constitutes a waiver of your right to contest the allegations in this\nNotice and authorizes the Associate Administrator for Pipeline Safety to find facts as alleged in\nthis Notice without further notice to you and to issue an Order Directing Amendment. If your\nplans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend\nyour plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not\ncontesting this Notice, we propose that you submit your amended procedures to my office within\n30 days of receipt of this Notice. This period may be extended by written request for good\ncause. Once the inadequacies identified herein have been addressed in your amended\nprocedures, this enforcement action will be closed.\nIt is requested (not mandated) that Interior Gas Utility maintain documentation of the safety\nimprovement costs associated with fulfilling this Notice of Amendment (preparation/revision of\nplans, procedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline\nand Hazardous Materials Safety Administration. In correspondence concerning this matter,\nplease refer to CPF 5-2022-010-NOA and, for each document you submit, please provide a copy\nin electronic format whenever possible.\nSincerely,\nDustin Hubbard\nDirector, Western Region\nPipeline and Hazardous Materials Safety Administration\nEnclosure: Response Options for Pipeline Operators in Compliance Proceedings\ncc: PHP-60 Compliance Registry\nPHP-500 M. Yeager (#20-191036)\nMark Rockwell, Interior Gas Utility (via email)\nBrendan Kern, Engineer, Interior Gas Utility (via email)","truncated":false,"body_characters":20402}