# INTERIOR GAS UTILITY — Notice of Amendment

- **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:** Not available
- **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.

Official case documents:

52022010NOA_Closure Letter_09222023_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Closure%20Letter_09222023_(20-191036).pdf

52022010NOA_Closure Letter_09222023_(20-191036)_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Closure%20Letter_09222023_(20-191036)_text.pdf

52022010NOA_Notice of Amendment_07182022_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Notice%20of%20Amendment_07182022_(20-191036).pdf

52022010NOA_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

52022010NOA_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

52022010NOA_Order Directing Amendment_08022023_(20-191036).pdf: https://primis.phmsa.dot.gov/enforcement-documents/52022010NOA/52022010NOA_Order%20Directing%20Amendment_08022023_(20-191036).pdf

52022010NOA_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

52022010NOA_Order Directing Amendment_08022023_(20-191036)_text.pdf

August 2, 2023
VIA ELECTRONIC MAIL TO: mrockwell@interiorgas.com
Mr. Mark Rockwell
Director of Operations
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, Alaska 99709
Re: CPF No. 5-2022-010-NOA
Dear Mr. Rockwell:
Enclosed please find the Order Directing Amendment issued in the above-referenced case to
Interior Gas Utility (IGU). It makes findings of inadequate procedures, finds that certain
amended procedures are adequate, and requires IGU to amend certain portions of its procedures.
When the amendment of procedures has been completed, as determined by the Director, Western
Region, this enforcement action will be closed. Service of the Order Directing Amendment 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
cc: Mr. 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. 5-2022-010-NOA
d/b/a Interior Gas Utility, )
)
)
)
Respondent. )
____________________________________)
ORDER DIRECTING AMENDMENT
On January 12, 2021, a representative from the Pipeline and Hazardous Materials Safety
Administration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.) inspected
Interior Gas Utility’s (IGU or Respondent) procedures for welding and cooldown/start-up in
North Pole, Alaska.
As a result of the inspection, the Director, Western Region, OPS (Director), issued to
Respondent, by letter dated July 18, 2022, a Notice of Amendment (Notice). In accordance with
49 CFR § 190.206, the Notice proposed finding that certain of IGU’s procedures were
inadequate to assure safe operation and proposed that Respondent amend its procedures.
IGU responded to the Notice by letter dated August 16, 2022 (Response). In its Response, IGU
submitted additional documentation and contested the allegations in the Notice. Personnel from
IGU and PHMSA met online on December 13, 2022, to discuss the issues addressed in the
notice1. Respondent did not request a hearing and therefore waived its right to one.
FINDING OF INADQUATE PROCEDURES
Item 1: The Notice alleged that Respondent’s procedures were inadequate in regard to 49 CFR §
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.
1 Region Recommendation, at 1.



The Notice alleged IGU’s welding procedures were inadequate to assure safe operation of a
pipeline facility. Specifically, the Notice alleged IGU’s procedures failed to implement the
requirements of NFPA 59A 6.3.4.1, as required per § 193.2301.2 NFPA 59A 6.3.4.1 states,
“Qualification and performance of welders shall be in accordance with Section 328.2 of ASME
B 31.3, Process Piping, and 6.3.4.2 of this standard.” The Notice alleged that at the time of the
inspection, IGU’s procedures were inadequate because they failed to clearly state which welding
specifications were to be utilized to complete construction welds.
3
In its Response, IGU stated that NFPA 59A 10.114 is the standard that applied to its facility.
5
IGU argued that its procedures were adequate because it relies on contractors and subcontractors,
each of which have their own procedures, for construction and welding projects.6 Respondent
averred that because the contractors and subcontractors have their own specific requirements for
welders, IGU’s procedures cannot specify what procedures a particular company must require as
they use different contractors for different projects.7 Respondent further argued at the time of
the inspection, the subcontractor used for the construction projects reviewed by the inspector
utilized welders trained on approved welding procedure specifications (WPS) for that company,
and that the welders performing the work utilized the company’s WPS most appropriate to meet
the piping specifications for the project.8
Section 193.2301 requires each operator of an LNG facility to comply with requirements of Part
193 and NFPA-59A-2001. Regarding welding, section 6.3.4.1 of NFPA 59A states that the
qualification and performance of welders shall be in accordance with Section 328.2 of ASME B
31.3, in addition to other requirements. As it relates to IGU’s response, ASME B 31.3, Section
328.1 states “Each employer is responsible for the welding done by the personnel of his
organization and, except as provided in paras. 328.2.2 and 328.3, shall conduct the tests required
to qualify welding procedures, and to qualify and as necessary requalify welders and welding
operators.” Additionally, ASME B 31.3, paragraph 328.2.2 states, in part, that,
Each employer is responsible for qualifying any welding procedure that personnel of the
organization will use. Subject to the specific approval of the Inspector, welding procedures
qualified by others may be used, provided that the following conditions are met.
(a) The Inspector shall be satisfied that:
(1) the proposed welding procedure specification (WPS) has been prepared, qualified and
2 Notice, at 2.
3 Id.
4 NFPA 59A 10.11.1 states, “All piping that is part of an LNG container and the facility associated with the
container for handling cryogenic liquid or flammable fluid shall be in accordance with ASME B 31.3, Process
Piping.”
5 Response, at 1.
6 Response, at 1.
7 Id.
8 Id.



executed by a responsible, recognized organization with expertise in the field of welding; and
(2) the employer has not made any change the welding procedure.
In this case, IGU stated that they use contractors and subcontractors who have their own WPS
for welding projects.
9 Respondent further contended in its Response that, a “welder is required
to use an approved WPS prepared by their company and with their company letterhead on it.”10
IGU was allowed to utilize another organization’s procedure so long as the conditions stated in
ASME B 31.3, paragraph 328.2.2 were met. However, IGU has not established that its current
procedures align with ASME B 31.3 as required by NFPA 59A, paras. 6.3.1.4 and 10.11,
pursuant to § 193.2301. While in its Response, IGU described the methods its subcontractors
utilized to select the WPS used for the construction work referenced in the Notice11, IGU has not
demonstrated through its Response that it has procedures in place to document and review a
contractor and subcontractor’s procedures to verify that those procedures have been prepared,
qualified, and executed by a responsible, recognized organization with expertise in the field of
welding, as is required by ASME B 31.3, paragraph 328.2.2.
Accordingly, based upon a review of all the evidence, I find Respondent’s procedures were
inadequate to assure safe operation of the pipeline facility.
Pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206, Respondent must amend its
procedures, as necessary, to include a method to review and document contractor and
subcontractor welding procedures. Respondent must submit the applicable procedures to the
Director, Western Region, OPS within 30 days following receipt of this Order.
The Regional Director may extend the period for compliance with this Order upon a written
request timely submitted by the Respondent and demonstrating good cause for an extension.
Failure to comply with this Order may result in 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.
Item 2: The Notice alleged that Respondent’s procedures were inadequate in regard to 49 CFR §
193.2503, which states:
§ 193.2503 Operating procedures.
Each operator shall follow one or more manuals of written procedures
to provide safety in normal operation and in responding to an abnormal
operation that would affect safety. The procedures must include provisions
for:
(a) …
(b) Startup and shutdown, including for initial startup, performance
9 Id.
10 Id.
11 Id.



testing to demonstrate that components will operate satisfactory in service.
The Notice alleged that IGU’s cooldown and start-up procedures were inadequate to assure safe
operation of a pipeline facility by failing to implement the requirements of § 193.2503(b). IGU
opposed the allegation in the Notice and the parties met virtually on December 13, 2022.12 Per a
letter dated February 3, 2023 (Letter), the Director acknowledged receipt of North Pole
Gasification Plan, on August 16, 2022, and LNG Storage Tank Purging and Cooldown
Procedure Manual, SOP S4-6202, on January 17, 2023.13 Upon review of the received
procedures, the Director determined in the Letter that inadequacies previously found in IGU’s
cooldown and start-up procedures had been corrected.14
Accordingly, based upon a review of all evidence, I find Respondent’s procedures were
inadequate, as alleged in the Notice, but have subsequently been adequately amended.
Therefore, no further action is necessary regarding this Item.
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 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 Order are effective upon service in accordance with 49 C.F.R.
§ 190.5.
August 2, 2023
___________________________________ ______________________
Alan K. Mayberry Date Issued
Associate Administrator
for Pipeline Safety
12 Region Recommendation, at 1.
13 See Letter.
14 Id.

52022010NOA_Closure Letter_09222023_(20-191036)_text.pdf

VIA ELECTRONIC MAIL TO: MR. DANIEL BRITTON - dwbritton@interiorgas.com
September 22, 2023
Mr. Daniel Britton
IGU General Manager
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, AK 99709
CPF 5-2022-010-NOA
Closure Letter
Dear Mr. Britton:
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 Interior Gas Utility’s (IGU) procedures for Welding & Cooldown/Start-up in North Pole,
Alaska. As a result of the inspection, IGU was issued a Notice of Amendment on July 18, 2022, which
proposed amendments of its procedures.
IGU submitted a response to PHMSA, contesting Item 1 and Item 2 of the NOA on August 16, 2022.
Upon discussion with IGU and review of documentation provided to PHMSA, Item 2 of the NOA was
considered adequate and accepted via region recommendation on February 3, 2023. An Order Directing
Amendment was issued on August 2, 2023 directing IGU to amend its procedures with respect to Item 1
of the NOA.
IGU submitted its amended procedures, for Item 1 of the NOA, on August 25, 2023. My staff reviewed
the amended procedures, and it appears that the inadequacies outlined in this Notice of Amendment have
been corrected.
This letter is to inform you no further action is necessary and this case is now closed. Thank you for your
cooperation.
Sincerely,
Dustin Hubbard
Director, Western Region
Pipeline and Hazardous Materials Safety Administration
cc: PHP-60 Compliance Registry
PHP-500 M. Yeager (#20-191036)
Elena Sudduth, Interior Gas Utility (esudduth@interiorgas.com)
Brendan Kern, Engineer, Interior Gas Utility (bkern@fngas.com)

52022010NOA_Notice of Amendment_07182022_(20-191036)_text.pdf

NOTICE OF AMENDMENT
VIA E-MAIL TO MR. DANIEL BRITTON
July 18, 2022
Mr. Daniel Britton
IGU General Manager
Interior Gas Utility
2525 Phillips Field Road
Fairbanks, AK 99709
CPF 5-2022-010-NOA
Dear Mr. Britton:
On January 12, 2021, a representative of the Pipeline and Hazardous Materials Safety
Administration (PHMSA), pursuant to Chapter 601 of 49 United States Code, inspected Interior
Gas Utility’s (IGU) procedures for Welding & Cooldown/Start-up in North Pole, Alaska.
As a result of the inspection, it appears that IGU’s written procedures are inadequate to assure
safe operation of the pipeline as follows:
1. § 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.
NFPA 59A 6.3.4 Welding
6.3.4.1 Qualification and performance of welders shall be in accordance with
Section 328.2 of ASME B 31.3, Process Piping, and 6.3.4.2 of this standard.



ASME B 31.1, paragraph 328.1
Welding and Brazing Qualification. Welding and brazing procedure
specifications (WPSs and BPSs) to be followed in production welding shall be
prepared and qualified…
IGU’s procedures were inadequate to assure safe operation of a pipeline facility. Specifically,
IGU’s written procedures failed to implement the requirements of NFPA 59A 6.3.4.1, which
states that “[q]ualification and performance of welders shall be in accordance with Section 328.2
of ASME B 31.3, Process Piping, and 6.3.4.2 of this standard.” Paragraph 328.1 of ASME B
31.3 requires that, “[w]elding and brazing procedure specifications (WPSs and BPSs) to be
followed in production welding shall be prepared and qualified …”
IGU did not prepare welding procedure specifications to be followed in production welding.
IGU’s drawings & welding procedures did not reference which welding specifications were
utilized. As a result, it was impossible to determine whether correct welding specification
processes were followed to complete construction welds. IGU must revise its procedures to
clearly state which welding specifications must be utilized to complete construction welds.
2. § 193.2503 Operating procedures.
Each operator shall follow one or more manuals of written procedures to
provide safety in normal operation and in responding to an abnormal
operation that would affect safety. The procedures must include provisions
for:
(a) . . . .
(b) Startup and shutdown, including for initial startup, performance testing to
demonstrate that components will operate satisfactory in service.
IGU’s procedures were inadequate to assure safe operation of a pipeline facility. Specifically,
IGU’s written procedures failed to implement the requirements of § 193.2503 (b), which states
that procedures must include provisions for startup, including for initial startup and performance
testing to demonstrate that components will operate satisfactory in service.
IGU’s Cooldown & Start-up Procedure allowed for natural gas to be introduced into the
distribution system to customers at unsafe concentrations for transportation/usage. Moreover, the
procedure document had illegible sections with missing verbiage and data. IGU must revise its
procedures to require that gas be introduced into the distribution system to customers at
concentrations that are safe for transportation/usage and prevent the formation of a hazardous
mixture of gas and air in accordance with § 192.629(a).
Response to this Notice
This Notice is provided pursuant to 49 U.S.C. § 60108(a) and 49 C.F.R. § 190.206. Enclosed as
part of this Notice is a document entitled Response Options for Pipeline Operators in
Compliance Proceedings.



Please refer to this document and note the response options. Be advised that all material you
submit in response to this enforcement action is subject to being made publicly available. If 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, revised
procedures, or a request for a hearing under §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 an Order Directing Amendment. If your
plans or procedures are found inadequate as alleged in this Notice, you may be ordered to amend
your plans or procedures to correct the inadequacies (49 C.F.R. § 190.206). If you are not
contesting this Notice, we propose that you submit your amended procedures to my office within
30 days of receipt of this Notice. This period may be extended by written request for good
cause. Once the inadequacies identified herein have been addressed in your amended
procedures, this enforcement action will be closed.
It is requested (not mandated) that Interior Gas Utility maintain documentation of the safety
improvement costs associated with fulfilling this Notice of Amendment (preparation/revision of
plans, procedures) and submit the total to Dustin Hubbard, Director, Western Region, Pipeline
and Hazardous Materials Safety Administration. In correspondence concerning this matter,
please refer to CPF 5-2022-010-NOA 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
Enclosure: Response Options for Pipeline Operators in Compliance Proceedings
cc: PHP-60 Compliance Registry
PHP-500 M. Yeager (#20-191036)
Mark Rockwell, Interior Gas Utility (via email)
Brendan Kern, Engineer, Interior Gas Utility (via email)
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